Most of the year 2010, up to this point, has been easy sailing for most of the approved VA lenders at Low VA Rates. The mortgage industry had purged out most of the bad apples (Lenders who were doing bad loans) and left standing are generally the strong and stable banks and mortgage companies.
Last year in a press release dated 1-28-09 (Mortgage Industry Faces Huge Bottleneck), Low VA Rates tried to educate and explain to all military and veteran homeowners and buyers that the amount of time needed to process, underwrite and approve VA loans would be substantially longer than It had normally been in the past.
Due to the recent drops in VA mortgage rates we have seen hit historically low levels, the mortgage industry is now facing similar issues to those we saw in early 2009. One of the approved VA lenders, us, Low VA Rates, has said the following recently, “In the last 2 weeks we have seen our big lenders like Wells Fargo, Freedom Mortgage and Met Life all drastically slow down in the amount of time it is taking them to get our VA loans approved.” It is tough because the homeowner normally does not like to or want to hear excuses and just wants the loan to get done quickly!” “In all honesty our hands feel like they are tied,” said Nate Burt, Loan Officer.
All Veterans and military homeowners should look to understand that patience, although difficult at this time, is needed at times like this. As we took a good long look into the published VA underwriting turn times from some lenders many of them we see have almost tripled from where they were just a month ago. It is important that loan officers work hard to educate and communicate with their clients so as to make sure everyone’s expectations and set correctly and no misunderstandings arise.
This is not the first time that we have heard this, but we all know it to be true: “Patience pays off the most when it seems to be the hardest.” I promise that you will not regret it!