We are all used to the buyer/borrower who can't make up their mind about buying, or which lender to go with. They come with the territory. But what we are now seeing a lot of, is borrowers who were pre-qualified losing the program, or the ability to get financed because a program guideline changed over night. I'm not talking about marginal credit buyers, but good solid borrowers.
Over the last few weeks I've seen the following
A) A NOO rate increase by a whole point on a borrower with a 760 credit score and 20% down/equity who was looking at doing 2 loans. They decided to wait on one of them and now it will cost more should they even move forward.
B) An excellent borrower have to switch programs from a 95% CLTV to a 90% CLTV in order to keep a good rate.
C) A NOO lose the ability to pull cash out of a Triplex with No Doc, even though we were at 30% CLTV and an 800 credit score.
My suggestion? Get your borrowers/buyers credit approved with a reputable lender and lock the rate.
For details on a real pre-approval, see my post on Preapproval: Is the Borrower Bonafide.
Larry Morris is a loan Officer with Equipoint Financial Network in Newberg, Oregon. He specializes in relocations and Sherwood, Oregon neighborhoods and Yamhill COunty. He is a Board Member of the Sherwood Chamber of COmmerce.He can be reached at larry.morris@equipoint.com . His website is www.PDX-Mortgage.com . This material is copy protected 2007 by Larry Morris, Mortgage News that Matters. All Rights Reserved His opinions do not necessarily represent the views of Equipoint Financial Network.
Licensed in: OR, WA, AL, AK, AZ, CA, CO, CT, FL, GA, HI, ID, IL, IN, IA, MD, MA, MI, MS, MO, MT, NE, NV, NH, NM, OK, SC, SD, TN, TX, UT, VT, VA,
Larry Morris is a Certified Mortgage Planning Specialist with American Nationwide Mortgage Company in Newberg, Oregon. He specializes in USDA Guaranteed Rural Home Loans, FHA Purchase and Refinance, FHA 203k Rehab loans, Sect 184 Native American loans, Hobby Farm loans and conforming purchase and refinances in the states of Oregon and Washington.
He can be reached at 503-421-0096, or larry@PDX-Mortgage.com.
www.PDX-Mortgage.com
OR License ML-3259
WA License WA-510-LO-51175
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APR rates are subject to change based on lender's normal credit guidelines and market conditions.
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How true Larry. Sadly, I had a A+ buyer go to the internet for financing. The loan was suppose to close August 3. We went to the attorneys office at 930 Friday. It still is not funded.
Just kept telling the buyer........told you so!