Due to increasingly difficult mortgage loan qualification requirements, America is in a financial climate in which down payment percentages and dollar amounts are up. For example, when comparing down payments for a conventional 30-year fixed-rate mortgage from Q1 2014 to Q2 2014, down payment percentages increased by 1.5%, reaching $37,576. That said, borrowers need to be more comfortable than ever with investing their hard-earned cash in a home. And therein lays the problem…
The process of gaining approval for a loan and securing enough assets for the down payment is no easy feat, especially in markets characterized by tight funding. Consumers who do have a high enough FICO score to make it through lender guidelines and credit overlays want to be assured that their investment is sound. Unfortunately, however, our data shows that at times their investment may not be as accurately priced as they are lead to believe. For example, valuation error accounts for 58.77% of all loan manufacturing defects today.
via Borrowers Lose Out On Down Payments Amidst Valuation Errors – Digital Risk.
