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High Interest Home Loan - What Seems Crazy To You And Me Might Just Be Acceptable To Our Clients!

I had to stop myself from preaching to my client the other day. My client’s poor credit score resulted in his mortgage broker working hard just to find him a loan that would have you and me running for the exit!

I realized that he was well aware of his poor credit situation and he was comfortable with his decision to move forward on this particular purchase and high interest loan. So…I shut my mouth and did my job as his Realtor!

He’s facing a mandatory 20% down payment, a high interest rate, a prepayment penalty in the first year and a lesser prepayment penalty between years 1 and 3. Ugh! I just cringe and my teeth grind when I hear this!

My client is a grown man, with intelligence and he’s aware of his situation and his lack of options on the matter. He’s comfortable with his decision to move forward and buy a home we found for him that suits his family perfectly.

Clients show up in our lives with all types of unique situations and varying credit scores!

What might seem ludicrous to you and me could actually be a dream opportunity for a client to move forward with!

Posted by Kirk Westervelt - Greenville, SC Realtor on 04/12/2008 11:02 PM

Comments (5)

Post is included in group: Keller Williams 'Rainers

5 Comments on High Interest Home Loan - What Seems Crazy To You And Me Might Just Be Acceptable To Our Clients!

Kirk.....sounds as if he realizes the value of good credit and is willing to pay the piper for his past mistakes to get his family into a home.

04/12/2008 11:10 PM

by Pam Winterbauer ~ 2006 REALTOR® of the Year (Windermere Welcome Home)

I hope that your guy is able to find something that works for him. Too bad that he has to pay the price... and I hope that he is in a better situation in the next few years. We do have to learn to control our judgements sometimes.

04/12/2008 11:22 PM

by Lane Bailey - REALTOR & Car Guy (Diamond Dwellings Realty)

How bad could it be, Kirk? Certainly not the 20% loans of the 80's-90's right?

04/12/2008 11:22 PM

by Ron Tarvin's Katy Agent Team-- Katy Texas Real Estate Agent (Real Estate Agent in Katy Texas with RE/MAX Grand)

Sometimes it is hard, but we just have to smile and be happy for our clients. I see this more when they are purchasing in less-than-desirable neighborhoods, bur you are right we just have to do our job and help them facilitate their dreams and decisions.

04/12/2008 11:26 PM

by Ahwatukee Real Estate Expert, Dawn Workman, MBA (DPR Realty, LLC)

If the client fully understands what he is getting into and his happy with it, that is all you can ask for. Hopefully, if he makes his payments on time he can refinance in a few years.

04/14/2008 02:56 AM

by Tanya Venable, Anderson, SC/Spartanburg/ Greenville, SC/ Home Staging (Fresh Eye Designs, LLC)

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