Ingredients for SUCCESS -
A Puppy, Documentation, and a Mortgage
Mortgage financing is a "people business" ...
Because of that, human emotions, reactions, and life itself are on full and glorious display throughout the life of a mortgage transaction.
And surprises ... especially when young, first-time home buyers are involved ... sometimes occur.
An Originator's life is never dull ...
Experience has taught me: No matter how long I've been in the mortgage business (and I have 40 years under my belt), I can still encounter "firsts", "never befores" and outright surprises while assisting my clients and referral partners.
A transaction I had this last spring proved that point by containing ALL of the elements mentioned above ... plus a few more.
My eager client:
- Was a young home buyer
- A first-time home buyer
- Had credit deficiencies
- Had a limited down payment
- Possibly needed Gift Monies
- Faced a few other "challenges"
From our first conversation together, I'd fully understood: There were going to be some unique elements at play in this borrower's transaction. One by one we addressed the unique issues at hand.
We started with their credit deficiencies and then moved on to their down payment challenges. Upon conquering both, we tackled Pre-Approval, then actual Mortgage Application, after a Contract for purchase was obtained.
During the processing of the mortgage, we had to verify that the client's Earnest Money Check had cleared their bank checking account. To successfully accomplish that, I needed a print-out of their account statements.
Proof of the Earnest Money Check having cleared the account was verified in the statement I received. But that statement revealed something else too.
A deposit had recently been made to the account in the amount of $3,000. I knew that the size of that deposit was going to raise questions in Mortgage Underwriting so we'd have to explain and document it.
The client and I had discussed the possibility of their utilizing Gift Monies as a portion of their borrower's funds during earlier conversations. So I asked if the deposit in question represented a deposit of a Gift? The borrower answered ...
"Nope! It's from the sale of a puppy". I can only imagine the look on my face.
Now, as I learned, English Bulldog puppies are quite valuable (as are other purebreds). My borrower stated that he could produce a "Dog Bill of Sale" and documentation to prove that important fact.
That documentation would be in the form of a "Certified Pedigree Form", stating the puppies' parents' names and their sires and dames. The borrower would also provide 4 online "comparables" relating to sales of similar English Bulldog puppies via a legitimate breeding business.
Now as a Mortgage Originator that was also a real estate appraiser for many years, I've got to tell you, I appreciated and respected the offer of "comparables". Especially those with all sales having taken place within the prior 6 months and showing a price variance of less than 10% (up or down).
Pretty darn impressive!
All the info and supporting documentation proved crucial to my borrower. Because of it, they erased any need for Gift Monies to complete their transaction and financing.
The documentation they presented to Mortgage Underwriting was so complete and convincing that the Underwriter was fully-satisfied with the "DDD". (During the processing of this loan, the comparables became known in our office as the "DDD", the "Dog Deposit Documentation". An attempt at a little mortgage humor, I guess.)
But seriously, producing that documentation? It had a very positive effect on this borrower's transaction. A puppy + documentation + a mortgage truly can equal success! This borrower's mortgage received Approval and their transaction successfully Closed.
Remember my mentioning "surprises", "firsts", and "never befores" above? This borrower and transaction fulfilled them all.
Plus, I learned a whole lot about English Bulldogs ...
In New Lenox, the greater Chicagoland area, Illinois, or Wisconsin, contact me with your questions ...