We all want to be prepared and we all have plenty to prepare for these days. But, there is nothing worse than an unprepared borrower. You know the type...Those clients that just want to assume that thier credit is perfect and they just deserve to get the best deal. They have no financial, credit or income issues.
I have one word for those borrowers and those realtors that don't want to waste their time.. PROACTIVE...! Be proactive and get your borrowers in touch with a loan officer that understands the revised regulations, rules and challenges that face potential buyers today.
We believe that the PERFECT STORM for buyers of real estate in Arizona has arrived and will continue through until around the end of this summer. Rates are low, home prices have hit bottom or at least close enough to the hitting bottom. We're now finally seeing a consistant increase of POTENTIAL buyers getting excited about what they MAY be able to afford.
For example, I met with a very excited married coupleback in November 2010. We discussed purchasing a home as they have been living in a rental for years providing for thier growing family. They were very excited at the potential of purchasing a home. Now that home prices have come down to affordable levels. When I mean excited, I mean excited. Like a light bulb goes on in their head and they get all gitty like... There is no one that can tell them that they can't afford or buy a home NOW.. You know the type.. You also need the commission.
You know I wouldn't share a story about a buyer that I couldn't get qualified.. But, I will share with you the reality of how sometimes you need to slow things down a little. Sometimes you need to really dive into the details of the borrowers situation in order to uncover potential issues with the file.. Let's just consider a few of them...
Income verification: How long have they been working at their current job? In this case my borrower had multiple student loans, some deferred and some active. There is a big difference between the two and knowing how to qualifiy a borrower with both is important if you have a borrower with limited income. Our borrower was previously a student along with a veteran. He just started his employment three months prior to getting his contract approved.. Understanding all these scenerios is crucial for making this kind of loan work. Know how to list out all the details for underwriting and provide documentation to verify is priceless. I can't tell you how many real estate agents will send me deals that got turned down. Because the previous loan officer just didn't ask the right questions or understand how to Document, Direct and Deliver to the underwriter.
Credit Score: This one is HUGE.. Buyer Beware.... Most borrowers don't have any idea what their credit score is and don't have any idea how it's calculated. After taking a detailed loan application, pulling credit is the next step. Guidelines seem to be changing every month and so does the lenders tolerance level. You have to be an expert on credit reports in order to deliver as a Professional Mortgage Broker these days. You have to read and understand every line and know how to manipulate the score if you need to..
Back in November when I pulled my borrowers credit we had a 595 mid score. We do have lenders that can get this deal done. BUT, only with strong extinuating circumstances to say the least.. I delivered them a small list of TO DO's which they got done and WA LAAA DEEE DAAA....Their credit score less than two months later is 50 POINTS higher.. I can't share with you how important it is to be working with someone that understands credit reports and guidelines today.. Our client went under contract today.. Very excited for them...
Veterans deserve to get loans and we are happy to be working with those that served our country. We will dedicate ourselves to their success as they have done for our freedom..
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