The time around a new child's arrival can be a pretty hectic one; and it kicks off the nesting instinct in humans just as it does in birds and animals. There are so many people out there who time the purchase of a new home to the period around a new baby's arrival. Mortgage loan lenders on the other hand, have the opposite of the nesting instinct - when you are expecting a baby in the family, they want to do everything in their power to make sure you don't get any help on a new home. Why is this? It's obvious of course - an expectant mother, or even a new mother is usually on maternity leave away from work. The family income has fallen now to half what it used to be, and the banks are completely sure that you won't be able to afford any payments - even if you plan to get back to work after the first month.
So this is how things have settled down after the careless years of easy credit we've had. A certain amount of tightening up does that make a lot of sense; there is no justifying the kind of unfeeling harshness that they exercise now though. If you don't have income in hand right now, they are not willing to believe in you anymore. This could take a little getting used to for prospective parents who are interested in getting a mortgage loan for a new family home. Not only do you have to answer more questions, produce more paperwork and jump through more hoops, you might also be interested in making sure that you don't accidentally volunteer any information about a pregnancy.
Does this mean there have been new rules put in place by the major mortgage companies Fannie Mae or Freddy Mac? Not exactly. The haven't changed anything; the lenders are just applying the rules they already have, a little more harshly. The rules for instance always required that your hdmc home loan maker called your employer as soon as you applied, to check if you actually had the job you claimed, and then also check again before actually closing the deal and releasing money. But they only used to do with once, if that. Sometimes, they would just ask you to give it to them in writing, and they wouldn't call your employer. What's changed now is that the loosey-goosey attitude is gone.
There are all kinds of complications that occur; for instance a new mother who receives disability insurance for three months while on maternity leave temporarily, will have her mortgage loan application rejected. They'll ask for her to apply for mortgage once she gets back to work. They count the disability payments as income, and since this source won't continue for the three years minimum they require, they consider you completely unemployed. One of the ways in which you want to conceal this fact is to turn off the automatic reply generator in your e-mail account when you are away. For so many expectant mothers, this is been what has tipped the mortgage loan makers off. Right before they sanction your mortgage loan, they send you an e-mail; as soon as that happens, they receive your automatically generated holiday reply, and then and then they wise up and tear it all up.
Does any of this make sense? Are there any actual rules that require this kind of behavior? There certainly aren't. These are undemocratic and unfair trade practices; but who is to pull them up?
