Consumer complaint received 2015-07-08
Product: Mortgage — Conventional fixed mortgage
Issue: Application, originator, mortgage broker — 
Company: JPMORGAN CHASE & CO. (GA)

We experienced extreme difficulty in buying a home. Over the course of 2 years we talked to XXXX different lenders who gave us XXXX different answers and variations on those answers. Real estate agents were no help at all other than than pushing us to get preapproved without explaining the process or why. Some agents refuse to show property unless you are preapproved. XXXX lenders asked for application fees even when we did not have a specific property in mind. No one wants to explain why and how it is so difficult and even after digging around on the Internet there were always more and specific questions. I hope you know the new rules will make it even harder during the buying process. Closing might be easier, but getting there will be daunting. Once lenders are not allowed to ask for documentation until a property has been identified and therefore an application submitted, how will you get to find a property when agents wo n't show unless they are sure you can buy? If they do they are constantly warning you to get preapproved. Preapproval now means the lender has seen your documentation. Once again it is a catch XXXX situation and the buyer consumer is caught in the middle. Agents know lenders will say you qualify with the usual disclaimers in fine print. Meanwhile the buyer believes them and runs around looking and when they come back to the lender it will be a different story. Agents no longer do any sort of initial workup for buyers and often buyers do not know what all goes into calculating what they can afford. There are many calculators on the Internet, but they can vary widely. So meanwhile the lender has pulled your credit, tells you that you can buy so you hurry and pressure the agent to show that house you have been wanting to see and then when you go back to the lender you may be in for a rude awakening. Then you learn a little more about front and back end ratios and the real impact of pmi, taxes, insurance, homeowners and even HOA fees that are calculated. So now the buyer is angry that the lender did n't tell them all this upfront and move onto another who assures them they can buy after another credit pull and there you go again. The lender knows if they enlighten you as to how hard the process really is, you may just scrap the idea of buying altogether which is why the first thing they do is pull credit and get you committed. We knew with outstanding credit we would get a good rate, so the time shopping around with lenders while the house you want may sell seems a waste of time. 
Lenders need to do a better job with their initial analysis of a consumer 's ability to buy and a few pointed questions about income-especially secondary income would make all the difference in the world. Gross income is not what they really need and they should inform buyers of what all will go into their DTI. Agents should also know this and if they are so XXXX on not wasting their time then they could potentially improve their odds by helping their client understand what is needed. Maybe even pointing them to a few good websites might help. They act like they know nothing about the lending side, but after attending pre license classes I can now calculate DTI, LTV, transfer tax and all manner of costs by hand including my favorite-amortization! With tools and software available today there is no excuse for it. 
I understand the reasoning behind changing some of these rules, but if you really want to protect the consumer, take a look at what goes on between the lender and agent while the consumer is stuck in the middle.