I had a recent loan that nearly fell apart at the 11th hour. The ratios were tight due to income and debt and I had made sure to overestimate the PITI to ensure I would have enough room in the event rates went against me.
We locked the rate and the taxes actually came in low. I had guess $120 for homeowners insurance, which based on the house was high by $50...or so I thought.
I told my borrower to go to their agent and get an insurance binder. They called and told me they need at day to shop around. I said okay, did you get a quote?
Yes, we thought it was a little high.
What was it?
$3957 for the year.
WHAT?!?!?!?!? My ratios were in flames....
Yeak we thought so too.
Did they give a reason why?
Well, I got a 1,000,000 umbrella, I have a couple of furs and some expensive jewelry.
That shouldn't make it go that high?
Oh, they said something about my two Rottweilers.
I nearly fainted. They then went and got two additional quotes that were lower and combined with buying doiwn the rate with a 1/2 point we squeezed it in.
Did you ever think that you could lose a deal to the dogs?????
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