The Beautiful Thing about FHA loans
FHA loans are truly unique because every Loan is different There are guidelines that we follow in submitting the loans but the bottom line is that every loan submitted gets a chance to be looked at by the overall big picture.
The Big Picture
Myths are out there that the Underwriters are out to find ways in turning down every loan out there thats not picture perfect. This is far from the truth, the underwriters are just trying to grasp the big picture on every loan and determines the customer ability to repay the loan.
For the loans that are difficult or have a lot of "Headache" issues like previous collections, financial hardship, inaccurate credit discrepancies, there are certain KEY elements that underwriters will need to help approve the loan.
- Credit Explanation Letters: - These letters help paint the big picture for the underwriters to determine the overall credit picture. These letters range from explaining the past 90 day inquiries to collection accounts.
My Story
After reviewing and probing a client about her past collection accounts, I ran her application through my automated approval decision.
The loan came back approved but with the following stipulation, A credit letter explanation regarding the past collection accounts.
When I told my client about writing one up, she replied back "Why? I couldn't pay off those medical bills at that time so it went into collection, its simple" "...besides I already explained this to you, why do you need it in writing?"
As you can tell I was completely shocked at this point......
Help Me Help You
Just like in the movie "Jerry Maguire" Jerry the sports agent calls out for help from his client Rod Tidwell to help Jerry be successful in turn making Rod Successful.
Like Rod though, often our clients have high expectations and are particularly pertinacious.
As an expert in the business, we are your passport in getting your loan approved to the Underwriters. We are your voice, support and ammunition.
How can we help you if you don't help us?
Help Me Help you by....
- Address any financial hardship - We are not here to offend you by bringing up past credit mistakes. Help Me by providing as much information regarding these past events and this will Help You by showing the Underwriters that you were accountable for the mistake but have learned from it and correct it as of now.
- Displaying a proven track record - If you don't have any current trade lines that you can show as part of your repayment ability track record, then Help Me by gathering data to be used for Non-Traditional Credit trade lines like your phone bill or cable bill. This will Help You show the underwriters that have a proven ability to repay loans.
- Providing as much as you can - There is an old saying in underwriting the more proof and documents you can deliver the better. If we are trying to overcome a debt to income ratio borderline by showing that your auto loan is being paid from another party, Help ME by gathering as much documentation to show proof of this, this will Help You speed up the loan process quicker and not delay it further.
If you ask me "Show me the Money" I will show it to you after you "Help Me Help You" :)
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As always thanks for checking out my blog, feel free to leave a comment and have a great day!
Just-In-Time's Loans
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