My wife has worked in banking for over 30 years. The big banks should have been allowed to fail. They care nothing about you right now. They are just trying to turn as much profit as they can right now to repay tarp money. The problem is nobody wants to do regular size home loans anymore...I mean 80-150k. There is just not any money to be made. They want 250-350k because they can charge more fees and they get more for the loan in a brokerage deal with another lender. That is why most smaller home loans of this type are sold almost before the ink dries and they don't care if they do them or not. That along with the new regs banks are forced to comply with as of Jan1 made it very hard to get a loan. They also limited the hidden fees banks were used to charging at closing, so nobody wants to do smaller loans anymore. Banks were forced to tighten lending requirements and be more transparent to the customer. I suggest only doing business with the small home town banks or credit unions. The big banks make you wait so long because the decison and interest rate deal is made by someone in another state. They input the stuff in a computer and a week to three weeks later you get an answer. The decision is made by someone who doesn't know anything about you. Stay away from the big banks...They will do everything to screw you during the closing. Their fees are also the highest around because it is done at an operations center by an underwriter who they pay big bucks just to do about 1/2 hour worth of paper work. That is where the $1000-2000 worth of fees come from. They lawyer is only about $500 of it and he gets paid that just to read the stupid paperwork to you.
