Often we hear clients call our office telling us what they want.... we often explain to them that in-order to get what they want they NEED to take some actions that will allow us to get them what they want... the problem is many are not listening to what we've just shared with them which ultimately will cost them in the long run!
Gone are the days when mortgage brokers and originators across the country would have access to mortgage lending products that would allow anyone to get a mortgage. Many of these renters have had friends and relatives get mortgages in the past which were in the same financial position as they might be in now and many can't understand why they can't get approved for a mortgage now.... Even when you explain the reasons... they are not listening....
We live in a society that we order from a window and 30 seconds later get what we want or ordered... those days with regard to lending are over... the sooner and quicker our potential clients can understand that they must begin to take actions and be responsible regarding getting ready for owning their home the more time, energy they will save... having a plan is the key.
We work with many first time home-buyers and the key thing we look at is are they willing to do what is necessary. Most will say yes, but we follow it up with another question, NO MATTER HOW LONG IT TAKES?
If they can't answer yes to the later part of the questions they are not ready to own. Many of these borrowers don't realize that the federal government rates each and every mortgage broker and lender regarding delinquencies with federal mortgages. If any new home-owner is late for up to 24 months after which the broker/lender supports them into getting their first home loan they become late (for any reason), then that broker/lender will be affected by a formula used by the federal government called (Compare ratio) and the higher the number of delinquencies the more negative impact it has on the broker/lender... This has caused many brokers/lenders to be very cautious when working with potential home-buyers, especially the ones who are not listening.... the lenders and brokers don't get paid until the loan closes and if they are willing to spend in some cases 4-6 months helping renters get ready.. making sure they listen is key!
Ron Giannamore is a Senior Loan Specialist with Mortgage Services, Inc. for the past 23 years!