It is always amazing to me how many lenders in the business today still aren't asking the right questions. I guess that I should be thankful for that, but I am still somewhat confused. Simple questions that get overlooked are often times the key to a loan being approved, or denied.
Are you married? Have you acquired any new debt recently? are you planning a job change? Would be just a few basic questions to start with. But what really gets me going is how many deals get turned down because the borrower doesn't qualify due to debt ratios. The very first question I ask these clients when they call me looking for help is "who do you know that is willing to help you?" and almost everytime I get an immediate answer.
That answer includes everything from parents, to cousins, to grandparents, and most recently an Ex Husband!!! Often times these individuals are partially involved in the loan process anyway. Providing gift funds, etc.
The real key to doing these types of loans is making sure that everyone knows exactly what they are getting into and that the borrower really can afford to make the payments on their own. Often times a borrower isn't qualifying due to a spouse that can't be on the loan for various reasons, but has ample income to support the overall payment.
Asking the right questions..... what a concept!