Why is the mortgage business getting tougher? As I fight my way through another deal, I think back ten years to my first deal. Back before you could fog a mirror and get a loan. Back in the days where the joke was, "We will lend to you only if you don't really need it." Thing is, we are rapidly going back to those early days of my career.
My first client was a single man being transferred up to the McKinney, Texas area. Or so I was originally told. He was a credit manager for a company and they were sending him up here to clean up this office. Well, when we called to verify employment (Yes lenders do that) we learned he had given notice and would be leaving at the end of the month. So, back to the borrower I go. In his world of credit, time at residence and time on the job were two key components to making a loan. Well not so in the mortgage business. We are required to get a two-year history. The client should have that two-year history in the same industry and profession. They especially need the two-year history if, they are trying to include overtime or bonus money in their income. So the client then told me they had a job offer from the competitor and did not want to mess up the mortgage loan with a job change. I wrote a long explanation letter and got back up documentation (a letter from the new company) and took it to the underwriter. She must have been in a good mood that day and approved the loan.
The moral part of this story is that people get bad information by NOT listening to the professionals. Funny how their brother in law the auto mechanic will know more about Real Estate and Mortgages than their Realtor or Mortgage Banker. With the information overload of the Internet there again is a lot of bad information floating out there.
Just tell your client to be totally honest with me and I can usually work past problems.
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