Apply, Pre-Approved, Offer, Accept, Wait, Apply Again, Sign, Wait, Inspect, Accept, Wait, Wait More.....

Thoughts Opinions

Truth be told, I don't know what happens after the "wait more" step. I am still in escrow. I was told the last step would take 5-7 days for underwriting to review. That 7th day was two days ago now. I am 12 days out from closing, should I be concerned? I have been frustrated with the entire lending process so far. It seems like such an archaic process riddled with red tape. This industry is in dire need of disruption by someone that knows nothing about the phrase "this is how it has always been done." Has there been any attempts by startups in "The Valley" I wonder? Below are a few humorous points on why I believe the real estate lending industry ripe for disruption!

un·der·write [verb] - sign and accept liability under (an insurance policy), thus guaranteeing payment in case loss or damage occurs.

  • They mail you a hard copy with more than 100 pages for physical signatures. It's 2014 right?

  • They ask for fax numbers for previous landlords to do a verification of rent.

  • They need to go through 3 different underwriting approvals which are extremely subjective.

  • Processors decide when and how things go down. Don't piss them off.

es·crow [law] - a bond, deed, or other document kept in the custody of a third party, taking effect only when a specified condition has been fulfilled.

  • When they say 5-7 days for review they really mean 10
  • When they say they will email it to you tomorrow they mean in a week
  • Processors won't touch your file no matter how diligent you are with supplying information until the appraisal is completed.

to be continued...