Every day, we get referrals from banks, credit unions, mortgage bankers and other loan officers, sending us refinance business they can’t do. That isn’t going to change anytime soon.
Most institutions have a minimum credit score criteria that is different than what we can get done. I can also assure you these clients will not default on a mortgage, quicker than a higher credit score, as long as the loan is underwritten correctly.
Most institutions have a maximum debt ratio, that is different than what we can get done.
Steve was referred by a bank that refers business all the time. He was buying a new home for $705,000. He was putting $205,000 down, the problem was that he had a late payment on a truck 4 months earlier, which dropped his credit scores. The late payment was with the same bank and he was told they can’t do his loan.
This was an easy loan for us to do, we did a $417,000 1st mortgage and a $83,000 home equity line for him, as he was selling a large piece of equipment and wanted to pay down his mortgage even further.
There is always a way to accomplish the goal.
A Case for Optimism: Why the Origination Cliff May Be Avoided
By: Paul Muolo
