Home Lending and the
Paperwork Avalanche
T
By Jayson Stebbins
Mortgage Professional
Jayson Stebbins is a 23 year
veteran of the Mortgage
Banking industry and an
Accredited Mortgage
Professional through the
Mortgage Bankers Association.
He grew up in Morgan Hill
and currently lives in Gilroy. He
is the local Branch Manager
of Guild Mortgage, a 56 year
old Mortgage Banking firm.
His office is in Morgan Hill and
serves all of Santa Clara, San
Benito, and Monterey counties.
You can reach Jayson and his
Team at 408-782-8800 or at
jstebbins@guildmortgage.net
here is a some danger in this
column. Danger that I will
dissuade some from buying a
home. Danger that my commentary
goes against a massive, space-themed
advertising campaign by a national
mortgage lender. Bear with me,
dear reader.
Since the events of 2008, the
pendulum of lending swung from the
totally inappropriate back to the over-
kill of documentation. It is just now
beginning to show signs of easing up,
but the primary warning voice today
is that if you are buying a home or
refinancing: be prepared. Be prepared
to provide the documentation you are
requested, plus some more, and maybe
a little more. These requests are not, as
some may assume, designed to create a
maddening circumstance of annoyance.
They are driven by secondary market
rules, regulations, and requests. But there
is light at the end of the tunnel.
First to reference the “click here
for approval” advertising that is going
on out there. You should all know the
commercials for the space travel based
approval. Here is a big reveal for you: that
is an offering pretty much everywhere.
Any large mortgage banker has what the
interstellar program offers. Most just don’t
have the advertising budget. And what
is missing from the marketing pitch is
that is applicable only for W-2 workers,
over 2 years on the job, perfect credit,
with electronic verification provided by
their employer and so on, and so on. It
is a great offering, reducing the amount
of paperwork you have to provide... but
only if you fit in the tight credit box.
For the rest of those buying a home,
or refinancing, it can be more paper
intensive. If you are self-employed, earn
over 25% of your income in bonus or
overtime, have a 2nd job, own investment
properties, have corporations; any of these
will put you into a category of high levels
of documentation.
And if you are a “Jumbo” buyer - well
all I can say is strap in. The requirements
can get intrusive, and sometimes illogical.
Here is the good news: getting a loan
these days is like taking an airplane ride.
Your lender will get you from point A to
point B, probably on time and probably
with no catastrophe. However, the
turbulence... well it might be rough up
there. Some loans are a smooth flight on
a private jet with cocktail service and
private chef; while some are cattle car
comfort, bumps worthy of an airsick
bag, and maybe some peanuts. But you
will get there... and you will have your
home, or your lower rate, or that great
investment property.
I know there is danger in this article,
but here is the thing: it is all worth it.
It is worth it because chances are you
are buying a home and now have all the
inherent benefits that brings. Or you are
lowering your rate and saving money
you can use to pay down debt or create
a savings account. Or you are paying off
debt and feeling that liberation.
And it is all worth it because when the
pendulum was the other way, when we
were not held accountable to document
the truth of our income and our assets,
when we were not as an industry being
diligent, well...we know what happened.
We don’t want that again. So we buckle
in for the flight, we accept that for some
reason they need ALL the pages of the
bank statements (even the blank ones). We
accept that they need ANOTHER pay stub.
And we land safely with our new loan,
out of danger.
Jayson Stebbins is a licensed mortgage agent in CA for Guild Mortgage Company NMLS#38463; Licensed
by CA Disclosure:Licensed by the Department of Business Oversight under the California Residential Mortgage
Lending Act. NMLS Company Unique ID 3274; Branch Unique ID 38480. The postings on this editorial don’t
necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. This
information is not guaranteed to be accurate and shall not be construed as a guarantee of loan approval. All
loans are subject to underwriter approval, and are subject to change without notice. Equal Housing Lender.
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GILROY • MORGAN HILL • SAN MARTIN
JULY / AUGUST 2016
gmhtoday.com