In 2007 the US economy began to enter what has become to be known as “The Mortgage Crisis.” This crisis infected the financial system both in the United States and globally. A gluttony of low rates, ever increasing home values and “easy to obtain” mortgage loans finally punctured a hole in the market and the financial bubble burst. For several years, housing took the main stage among news headlines as lenders closed their doors and homeowners lost equity and went into foreclosure.
In an effort to stabilize the lending environment, an avalanche of laws hit the streets defining everything from who could obtain a mortgage, to the types of mortgage loan offered and how the process of obtaining a loan would unfold. “Qualifying for a mortgage today is much different than it was just a few short years ago,” said Eddie Cooke, The Mortgage Chef and a licensed loan officer. “Today the consumer must be able to fully document all of the information listed on their loan application to the satisfaction of their lender.”
Mortgage loans are bought and sold on the secondary market. For example, when a lender issues a conventional mortgage loan, they generally sell that mortgage to Fannie Mae or Freddie Mac. If the buyer of the mortgage discovers any deficiencies in documentation, they can ask the lender to re-purchase the loan back. Because lenders generally borrow money to lend to consumers, most can not afford to re-purchase large amounts of loans and keep them in house.
“What the consumer often feels is an endless barrage of questions and request from their lender for documentation during the loan process,” said Cooke. “What I decided to do is be pro-active and start at the time of application with a checklist of items the lender will require. In other words, I make sure I get all of the required information up front, so the consumer can be more confident of the process.”
Cooke defines this model as “The Perfect Loan Recipe.” “Because every situation is different, I want to make sure clients fully understand the process and options available to them at the start,” Cooke stated. As legislation continues to pour out, re-defining the mortgage process, clients looking to obtain a mortgage can find themselves buried in a sea of the unknown.
He went on to say that, “On average, a person may only go through the mortgage process 3-5 times in their lifetime. I want that experience to be great and so I stay studied up on regulations, lending guidelines and mortgage products so my clients can have confidence in the process.” To learn more about The Mortgage Chef’s Perfect Recipe for Lending, you can contact Eddie Cooke at (615) 300-6262 or visit: http://www.TheMortgageChef.com.
Eddie Cooke is a licensed mortgage professional, NMLS #195000.