Buying a home requires some pre-planning if your are trying to obtain financing. Lender’s overlays to already strict guidelines make absolutely no sense, and saying that borrowers are getting frustrated, is a major understatement.
We all know that lending had to change, greed took over and the rest is history. Making a loan to a buyer without the proper documentation to prove their willingness and ability to repay a loan was, and is wrong. But, making a borrower jump over hurdles that don’t equate to anything more than making a underwriter (lender) feel good is just as wrong.
Politicians have decided that this is a political free-for-all to gain votes, lenders keep adding more and more restrictions because they cannot sell the loan to the two major GSE’s. How ironic that the GSEs were created by congress and congress is the body that loosed the underwriting guidelines for the very loans that created the financial crises that our country endured.