How do you like people to treat you? You search for a professional in any market. You know you find one because you did your research, yet you disagree with some of their answers during the process. You disagree because other people have told you differently. But wait, you trusted this person from the get-go, yet you are listening to others. Why is that? In my opinion, it's called human nature. Sometimes we are so desperate for help, that we will still believe what we read or hear, which can get us into trouble.
My concern is that it seems to be happening more than ever before. Some people are hurting for business so bad, that they will tell you anything. You need not only do your research effectively, but that you use your gut wisely. If most of the answers that you obtain are the same from different sources, then usually that is the truth. Let's look at this further.....
As a consumer or borrower, you would think that everyone would have integrity, be honest, and be that professional that you seek. It doesn't matter the title of the person, that doesn't give them integrity. After speaking to so many borrowers in my 16 year career, one thing that is said often is that this is one of the biggest transactions in ones lifetime, yet there seems to be more deception during the transaction than one would think or hope. Answer to this? Some just don't care or take the pride. Some can sleep at night no matter how they might destroy ones life.
Overall, this might be viewed as a negative rant. To me, it's reality and something that should be brought up often. Why? Because I speak to about 10 to 15 different loan officers across the country on a weekly basis and it is happening. So it's just not my thoughts and or opinions. Just that some wreck peoples lies based on false hope.
Here are a few great examples that just happened in this week alone.
-- I just picked up a purchase in Port Saint Lucie, Florida that the borrower chose his own loan officer because she claimed to have this borrowers back. Not only are they on their second extension, which the mortgage process was started over 1 1/2 months ago, but now they are denying this borrower because they can't verify his income. There is a simple solution, but I need an extra 2 weeks to close this deal. I have spoken to the borrower. his real estate agent that referred me, and even the sellers. Everyone is okay with proceeding. The initial problem? Just a very poor interview of the borrower by the loan officer. The ending result, a less than adequate lender that was able to think outside the box, even though they kept on making promises throughout the process.
-- Just yesterday, there was a loan officer that answered a question in a blog of mine about credit scores, under 550. This loan officer tells me 3 different companies that can do under 580. He goes on to tell me that they are closing these daily. I ask him to share some examples of what he has closed this year. He gives me 3 examples, but they were examples prior to July of 2008. What? I asked for examples for this year. His response? Well, I haven't closed anything with these 3 companies yet, but these were loans that I closed with under 580 scores. My problem with this? He didn't read my question correctly. This is why many deals fall apart at the end, because the loan officer doesn't pay attention to detail. This irks the hell out of me. Yes, we are humans and make mistakes, but this is not acceptable.
-- Lastly, I have been dealing with a self-employed borrower for 2 weeks now. The property is an illegal triplex and I brought this to his attention, after I asked the right questions. He also told me that his net income is about $40,000 a year. I asked him for 5 days to get me his tax returns. Finally I get them, but they show $27,500 a year. I told him that I would get back to him late Wednesday, but I failed to, because of the 1st example above, that needed my immediate attention. Well, I get a semi nasty e-mail the next morning telling me that I took my time and he wanted to put an offer on the property. He found another FHA specialist that pre-approved him in less than 2 hours, without verifying his income. He is being told that he needs to put 25% down and his rate is 5.25%. Anyone in the lending industry knows that no matter how much you put down, on stated loan programs, the rates are always higher. I could be wrong, but from my experience, there are red flags written all over this one. Just because this loan officer claims to be a specialist or expert of any kind, doesn't mean that this is true. Anyone can make that statement themselves. My fear? This borrower will spend an appraisal fee and possibly some other fees, but never get to closing. There is more to this deal. This gentleman has 750 credit scores, but only 1 tradeline on his credit report. These types of loan programs usually require 4 tradelines or more for more than 12 months.
Summary : We all want your business, but at what price. My price is fairly simple. If I tell you that I am able to do your loan, that I will do it with pride, knowledge, and integrity. It will close unless there are title or appraisal issues or if the borrower withheld information. There are many of us that believe this and just won't throw fluff up against the wall and tell you what you want to hear, just to get your deal.The main point, if you badger many loan officers in this business, telling them what others will do, yet that loan officer says no or that it can't be done because of FHA guidelines... then you are just begging the loan officer to lie to you, and some will go to that level.
For some of my pet peeves, please read this :
FHA Credit Scores & All about FHA loans & mortgages !!!!
- FHA Loans - USDA Loans - VA Loans -
- Energy Efficient Mortgages -
- Conventional Loans - 203 k loans -
- Mortgages -
Experience & Knowledge at its BEST !!!
_________________________________________________________________________________________
For more information on FHA loans, please go to this link. The FHA Expert
For more information about the 2008-2009 Tax Credit for First Time Homebuyers : 2008 Tax Credit
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!
Copyright © 2009 by Jeff Belonger
Comments (23)Subscribe to CommentsComment