Closing Transactions in a Turbulent Mortgage Market

BOCA RATON, Fla.--(BUSINESS WIRE)-- Seasoned mortgage banker Matt Weaver with WCS Lending has been through the volatility of the mortgage industry over the past several years and has learned what it takes to thrive. Weaver has been in mortgage banking for 14 years and has experienced the highs and lows of the industry and is currently working through the present lending environment.

“The market as a whole has become more challenging; it is certainly not fluid which creates bumps throughout the process,” Weaver comments.

The mortgage industries guidelines started changing in 2006 which was the start of the housing debacle. New federal regulations have also been implemented, straining the appraisal process by layering a third party management company where appraisals must be ordered through. The tightening of guidelines and requests for more documentation has intensified the mortgage loan process and lengthened the amount of time transactions take to close. Mortgage borrowers are now feeling the ramifications of when lenders would make loans without income docs of any kind. The most qualified borrowers are getting frustrated through the “new” loan process, seeing first hand just how much documentation is needed to get a loan closed in today’s lending environment.

What is the most important piece of information that you would advise a first time or seasoned home buyer that is starting the process?

In order to be successful in today’s environment, you must create your team which consists of the right Mortgage Banker and Realtor. We are in a full documentation lending environment so the pre-approval process is the most essential piece to the equation. Regardless of how the client’s income is derived, a thorough tax return evaluation must take place to calculate the correct debt to income ratios. Additionally, two months most recent bank statements validating all deposits and cash to close, current pay stubs and a tri merge credit report is also needed to complete this process. Finding a full time experienced realtor who understands the current market and how to structure offers in order to stay one step ahead of competing buyers is crucial for any client.

What is one of the major pitfalls borrowers are seeing and what can they do to avoid these pitfalls?

Cash to close, in a perfect lending world, underwriting wants to see “seasoned funds”. In other words, if the client’s down payment is $20,000, underwriting just needs to see that in an account for 2 months. Home buyers should figure out where their down payment will come from and make sure it is in their account in advance. This is why I stress to my clients that by meeting me in advance and mapping out the process, we can be fully prepared.

What advice would you give home buyers about the process?

Be patient and understand that the lending pendulum has swung far to the other side. Mortgage lending now more than ever is really scrutinizing the “ability to repay”, therefore causing much needed documentation. The rewards to this are amazing, as we are borrowing at all time low interest rates and buying at low housing prices. Lets remember that when it was easy to borrow, real estate prices were heavily inflated.

What sets WCS Lending apart from other Mortgage Lenders? Why is working with WCS Lending especially important in these current times?

There are many advantages in dealing with WCS Lending that both clients and realtors will experience. Firstly, all services are performed in-house, such as processing, underwriting and funding. The wire is literally initiated from the building I'm sitting in. Also, WCS Lending is a “Multi Platform” lender which means we have the ability to underwrite and fund loans that are ultimately sold to every mortgage investor in the country. In simple terms, all of these investors have their own nuances and niches that they will allow or wont allow, i.e. Chase may allow a 50% debt to income ratio but Wells Fargo allows 45%; or US Bank allows a break in title in the last 90 days but Flagstar will not. We as Mortgage Bankers need this diversity in order to get the transactions closed, regardless of the type of borrower every transaction tends to have a little quirk or kink in it.

In closing, why do you feel you are the best option for home buyers or refinance clients?

I believe that I give my all in every transaction, I am very passionate about my work and I treat each transaction as if it were my own home purchase. The key to my business is recognizing what can be improved as the industry is a constant moving target. My goal is to surpass the needs for all parties involved in the transaction, making one of the more important days in my client's life a great experience.

To contact Matt Weaver, call 561-864-2458 or visit www.bocamortgagepro.com for more information.