Why does it appear that “qualified” buyers are being denied mortgage financing for proposed purchase transactions? Is there any underwriting flexibility left among lenders today? What can a determined real estate sales professional do to optimize a successful and timely loan closing on behalf of their clients?

The proliferation of creative mortgage finance, including zero down payment and stated income products has resulted in a sharp turnabout to common sense underwriting guidelines. In fact, the pendulum has now swung back one entire generation.

Traditionally, real estate agents have maintained their distance from the mechanics of the mortgage transaction. Today, the sales agent must serve as an active team member by understanding the new “tough love” underwriting criteria by which their buyers are judged, approved, and funded.