This week I read an article on Bloomberg that hits the nail on the head with the state of our housing market.
The article is called “How a Millennial Fought Her Way to a Post-Recession Home Loan.” It tells the story of a young woman named Ruth Paloma Rivera who worked tirelessly to buy her first home — and ultimately did.
I encourage everyone to read the article because it explains so clearly:
- Why many young people want to buy homes but struggle because of credit scores and student debt
- The efforts some young people (like Ruth) go through to make homebuying a reality
- Why banks today are “scared” and “triple check” everything as it relates to the mortgage process
The article also mentions the importance of answering questions properly on a loan application, specifically section eight about declarations (see below).
If the client answers “yes” to any of the questions, it won’t necessarily doom their chances at a loan. But a “yes” may require a simple explanation or extra documentation.
If borrowers have questions, they need to feel comfortable talking to their loan officer. It’s ALWAYS better to address an issue up front.
Photo courtesy of Mark Moz (Flickr)