Know someone who recently has purchased or refinanced a home? The words “brutal” and “torture” where probably mentioned more than once in the conversation. Possibly some of the torture could have been mitigated. Unfortunately, most of the underwriting brutality is necessary. Brutality is in your best interest.
Is brutality in your best interest? Am I kidding you? Why is this underwriting brutality necessary and why is it in your best interest? More than likely you or someone you care about survived the purchase mortgage process and have moved in. This home went through a market analysis appraisal process – value of your new home was based on both your agreed purchase contract and on the comparable value of other recently purchased homes in the area. These comparable homes were purchased by buyers like you who had to qualify for their purchase mortgage. Yes, these homebuyers may have been mortgage process tortured. And, no, my point is not “misery loves company”. Your home was purchased by a qualified buyer (you) and the value of your home was based on the home values of other qualified buyers – establishing a real market.
We are disappointed that the mortgage process is brutal. However, knowing that the value of your home is based on the solid value of other “qualified borrower” homes is priceless.