Seeing the Unforeseeable – Not Possible; No Crystal Ball
We often pre-approve very strong borrowers only to see their transactions come to a halt after they get into escrow b/c of unforeseen circumstances.
Invariably, we get terse emails from either the borrowers or the Realtors telling us that we should have foreseen the issue(s).
The issues that blow up transactions, however, are almost always unforeseeable, and include:
1. Appraisal issues (high “CU” scores in particular).
2. Homeowners Association/HOA issues that Realtors are unaware of (insufficient reserves, litigation, insurance, one entity owning more than 10%, etc.).
3. Credit issues (significant score drops are the most common).
4. Employment issues (job changes, fewer hours, information on VOE changes).
5. Unexplained deposits on updated bank statements (large deposits from overseas are a particular problem).
6. Insufficient funds to close (borrowers spent funds that were slated for the transaction).
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646