The Mortgage Industry Is Not So Tough

Over the last several days, I have heard at least ten people tell me that it is impossible to get a loan in this economy. People are telling me horror stories about how they have huge incomes, pristine credit, and they are having to wait four, five, and six months in order to get a loan. Interestingly enough, I happen to work in an office that originates several loans, which are then approved, with little to no hassle, quite frequently. I understand that a lot of people are trying to circumvent the use of real estate agents and loan officers and originators in this economy, but there are two things that you should keep in mind when looking to obtain a loan.

First of all, each different lender has a different set of rules and regulations regarding their lending practices. While a loan professional stays up to date on this information frequently, the typical person does not look at, or even have access to, the rate sheet for a lender. When you hear people telling you that there is no way to get a loan in this economy, or that the process takes an inordinate amount of time, that is probably due to a lack of understanding of specific lender regulations. This leads me to my next point.

The reason why loans take such a long time to go through the loan process for those whom decided to go around the loan originator is because of the clerical issues. If you have never seen a loan application, then you are lucky. This application can become huge, and requires a lot of information from the borrower. Again, a loan originator has the knowledge of what is needed, and can lay out a clear plan as to what is needed from you. People who try to do the whole process on their own often get the application rejected or kicked back, because they do not know exactly what they are doing. The more times a loan application gets rejected, the more your credit gets hurt, further delaying the loan process.

So, for those of you that are being swayed by those stories that imply horror in the mortgage business, just remember that it is actually a smooth process, but with a lot of different regulations and guidelines that differ from lender to lender. If you plan on going around a loan originator, then be prepared for a lot of work, and a few mistakes along the way, as you learn exactly what is required by the lender you have chosen to work with.


Anthony Flores is a real estate agent and investment specialist located in Riverside Ca.  For more articles and info regarding the houses for sale in Riverside Ca and the houses for sale in Norco Ca, please check out his site Southern California Home Source.