The Mortgage Applications process is one that may have an adverse affect on many homeowners. This is because of the large number of different kinds of lenders. For those who do not know much about mortgages, it is in general a document that relates to the loan of a property. This document explains all of the specifics of the mortgage and how it can be used. These documents are typically created by the Lender and submitted to the Mortgage Company for approval. Do you want to learn more? Visit see here
It is interesting to note that Mortgage Applications have now risen to the highest level in over two years. While there is no one sure explanation for this, many experts have blamed it on Mortgage Applications in particular rising prices, increasing unemployment (especially in the US) and also, in some cases, including rising inflation. In fact, it is in this last week’s newsletter that we find out that Mortgage Applications have actually overtook Wholesale inventories for the first time ever! While this may sound like good news to many consumers, it is probably not so good news for the Lenders as well.
In short, while Mortgage Applications appear to be helping the real estate industry, they could actually be hurting it more than help. This is because of the high number of diverse lenders that now offer Home Loans and Mortgages. Many of these new Mortgage Companies simply submit Mortgage Applications for approval without fully understanding the appraisal standards that must be met in order for a homebuyer to receive financing. In some cases, the Mortgage Applications may only include a request for appraisals from a handful of different appraisals and grading companies in order to qualify for a Mortgage. These companies are then permitted to in some cases, lower their own appraisals to ensure that the borrower will be approved for the Mortgage. While some of these companies will re-evaluate the appraisals on their own, other Mortgage Lenders will require the borrower to complete a “peer review” with the company to ensure that their appraisal is based on fair market values.