(Originally published October 10, 2009.)
Scenario: First Time Buyer purchasing a condo. Good Income. Good Credit. All around strong borrower. But he needs a $570,000 mortgage and 85% financing.
PROBLEM: He spoke to one bank and was told, “No Problem!”…then was denied. He spoke to another bank. “Piece of cake!” they said…then was denied. Over and over, he was told, “You can’t get PMI.”
A close friend, with similarly strong qualifications, was forced to put 20% down because his bank could not get PMI.
Diagnosis: This current lending environment requires the knowledge, skills, creativity, and tenacity, of seasoned, mortgage professionals with proven track records. Ordinary loan officers can’t cut the mustard. The “name brand” lenders are spinning their wheels. Their multi-million dollar ad campaigns sound great, but they can’t deliver.
Solution: Performed a complete financial analysis and underwriting to confirm borrower’s qualifications, before he spent money on an appraisal. Scoured our stable of lenders and PMI companies to find a match. Confirmed loan met latest lender and PMI guidelines. Submitted loan. Made sure that bank and PMI underwriters understood their own guidelines, as they pertained to my borrower. And kept the realtors and attorneys informed throughout the process.
Result: Mortgage Approved. PMI Approved. Loan Closed. And a loyal client for life.
BOTTOM LINE: The banks are screwing up left and right, as your realtor and real estate attorney will attest. The days of “mortgage salesmen” are over. Only entrust your time, money, and mortgage to a seasoned, mortgage professional with a proven track record.
Since 1992, Warren Goldberg has helped thousands of clients own their homes, refinance their mortgages, restructure their debts, and invest in real estate. Warren is known for his wide knowledge of mortgage products and wealth-creation strategies.