I closed a loan this week that made me love my job as a loan officer even more and I thought I should write a blog post about it.
For the past year the Jones family (names changed for obvious reasons) didn't think they could get a mortgage to consolidate some medical bills that they had because they had heard about how hard it was to obtain financing (Thank you media...not!) with their credit score which was below 700.
The Jones were living paycheck to paycheck and dipping into their savings each month because of these other debts. Mr. Jones was stressed and Mrs. Jones was working more hours at work to make ends meat. These added stressed were making life much more difficult. They would have loved to do something but they were so convinced that they couldn't obtain financing that they didn't even try to talk to a loan officer.
About a month ago, a good friend of the Jones family convinced them to give me a call to see if there was anything that I could do. When I first met with them the way that the Jones were talking about their credit and their debts and situation, at first I didn't think there was anyway that I could help them. But after completing the loan application and pulling their credit, it turned out that I could get them qualified for an FHA loan.
The Jones were accurate in thinking that they could not get conventional financing but they didn't consider an FHA loan. An FHA loan is a government backed program that has more lenient guidelines and still allows people to get financing with great interest rates.
To keep a long story shorter, after about 25 days from our initial meeting, the Jones were able to pay off their old mortgage, a high-interest second mortgage, 2 credit card bills, some medical bills, and lower their monthly payments by over $600 with a single FHA mortgage at 5%.
The Jones were so happy and Mr. Jones told me that he felt like a huge weight had been lifted off of his shoulders. Because of the refinance, they were going to be able to start adding to their savings account again.
I love helping people like the Jones family. I think that mortgage brokers and loan officers have taken a beating in the media as of late but they don't often report about these kind of stories. When I can help someone like the Jones family, it makes me proud to be a loan officer.
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