New lending regulations can play havoc with obtaining a mortgage, particularly with outstanding student loans. Recently I had a client obtain a pre-approval from a reputable lender. ( Actually two-one the largest in the country). He found a home and we wrote a contract. It was only when the mortgage application hit underwriting that we discovered a serious problem. His student loan appeared as $0 payment on his credit report, but represented a serious liability to the underwriter. Based on the formula, the debt to income ratio exceed guidelines- loan denied.
I contacted one of our lender’s, a local bank, and described our dilemma. Turns out they have funds set aside for this very situation. As a pillar of the community, they have a strong local presence and an excellent working relationship with the local hospitals. Within 24 hours my lender met with my client and put together an attractive mortgage program customized to the buyer’s needs. Transaction back on track and headed to a successful close.
Moral to the story- with lenders, one size does not fit all. All of my lenders have common core values-professional, knowledgeable, and responsive to our clients needs. Each has their own unique offering-that extra special skill or resource that makes them invaluable to out team. Matching the right lender and client is a key to a stress free transaction.