I cannot tell you how many times I have had a buyer sitting in my office telling me their story of why they went with another lender. They are upset because they got declined right before closing or can not get that lender to call them back. It always starts out as “they told me it would not be a problem”. My follow up question to that is. “Did they have your credit pulled, and did you provide them with your income and asset information prior to them telling you it would not be a problem”? Majority of the time, that answer is NO.
Anytime you are working with a lender and they keep telling you what you want to hear and it just seems way to easy. Think twice, especially if you have not provided any of the above info. Now granted there are times that perfect borrower comes in and has great credit, the income is solid along with their assets. Those are the slam dunk deals that are easy. However, when those same borrowers come in I always ask probing questions so that I can get a better understanding of their situation before I start promising anything. I want to know how long the funds have been in the account. If the funds have been there less then 60 days, where did they come from? I want to know exactly how they get paid, how often, is it salary or hourly. If hourly what is the base and do they get a guaranteed 40 hours a week. These are all very important questions as any of these that are not understood at application can change the outcome of a loan.
Example, a buyer has been working with their employer for about 1 year now. They get paid a salary and commission. When they told me their income up font they included the commission in their total income. Unfortunately, in order to use commission as qualifying income it needs to of been received for the past 2 years. Then the commission is averaged over the past two years in order to project what it may be for the next 3 years (there are exceptions to this rule but this is the general guideline).
These questions are the difference between a Mortgage Professional and just someone selling mortgage loans. Remember watch out for the Yes Man and welcome questions, as those questions let you know you are dealing with a seasoned mortgage lender.
Comments(2)