Financing First!

Last Wednesday a friend referred to me a co-worker who had just mentioned to him that he was under contract to buy one a lovely new construction here in Cape Coral, but was having problems getting the mortgage financing.

He was putting money down, but had less than perfect credit, was going stated, and already owned a house.

 I met with this man, he gave me all of his info, and told me he needed a commitment letter to the builder by Saturday.    I called the builder once I had found a lender for the buyer, they requested the buyer deposit his down payment with a title company who would handle the closing.  

I got back in touch with the buyer and told him that while I'd continue to work on finding a better deal, the one we had now would allow us to include a sellers concession for the closing costs, and his loan would be xyz, making his payments x dollars a month, also that he had the option of putting less money down and keeping some of his cash in the bank, which I strongly implored him to do.    He said good and to send the builder the letter.   I told him to think about the down payment amount and tell me tomorrow.

 The next day, he asked me if I could get him a lower rate on an adjustable mortgage, or if we included a prepayment penalty.    I advised him that ARMs are what are leading the foreclosures and aren't priced much better.    I was giving him a par rate and charging the points in the front, we could buy the rate down if he wanted to do that.   I told him I'd looking putting a prepay on it and to think about the down-payment money, which he would have to give to the title company tomorrow if he wanted the builder to let the deal proceed with out trying to keep his deposit.   Also he'd need to have decided on the down payment and the prepay, as we needed to get the paperwork rolling.

 He asked me for the title company address and phone number and told me he'd have to talk to his wife, and would call me by 10am the next day.

When noon hit, and I called him, I already knew what he was going to tell me and sure enough he did!

He told me his wife wasn't going to let him do it, that their interest rate, while .75 of a point lower than the deal they were quoted by the last person to try to get them a loan, was still to high and they really wanted it a .5 a point lower.    I asked if he wanted to pay a buy down point and while trying to explain that to him he hits me with...."I'm going to tell you something but you're not going to believe me....my wife said she met some one who is getting us a loan for 6.5"

 Of course he couldn't tell me if the loan officer knew he had a 600 FICO, and was going stated, or how many point's he have to charge to get that rate, but he's going to call me back when he gets the papers. 

 This is the exact same thing that happened with the last two people this person referred me to.    The last time, while I was of course in the middle, I told the customer to demand a rate lock form showing his application number and name and rate etc etc....of course the other LO told him they were going to try to get him an EVEN BETTER DEAL between now and closing....when he got to the closing, the rate on the loan was 2 points higher than what he was told over the phone.

 As frustrating as it can be to lose business to liars....it's worse to get the looks you sometimes do when you tell people "I do mortgages" when the general public gets lied to and beat by them constantly, same stigma as like "used car salesman"... I know a few of those who are good guys too :)

Pardon the long blog, just make sure if you're buying a house that you're properly pre-qualified and understand your mortgage options well, and what your payments will be BEFORE you sign a contract and give the good faith deposit!   If you're not familiar with all the variables, having a good communication with your mortgage professional will make all the difference!

Again I invite anyone who's got a situation I could help with to call me!  And email me if you want on the HOTSHEETS property distribution list of new foreclosure and negotiated pre foreclosure properties in SW FL!

-Mike Urbinato

mikeurbinato@gmail.com

866-909-9449 Toll Free Direct

239-200-5742 Cell