Scenario: Self-Employed Borrower owns a wholesale food distribution business. He wants to purchase a new home, and then afterwards, sell his current residence. He has good credit, and a large down payment.
PROBLEM: He spoke to ‘His Bank’ for a mortgage. After all, he’s a good customer and shows millions of dollars per year flowing through his accounts. His bank told him, “No Problem!” ‘His Bank’ asked for paperwork…and weeks later asked for more paperwork…and weeks later asked for MORE paperwork…then was denied. He lost the house. The borrower was aggravated, frustrated, and was no longer a fan of ‘His Bank.’ It was inconceivable to him that he could be denied!
Diagnosis: This current lending environment requires the knowledge, skills, and tenacity, of a seasoned, mortgage professional with a proven track record. Ordinary loan officers can’t cut it as they don’t understand the intricacies of the underwriting guidelines. The “name brand” lenders may sound wonderful with their multi-million dollar ad campaigns; but they don’t deliver.
Solution: Performed a complete financial analysis and underwriting to confirm the qualifications of the borrower. Discovered, like many people in his industry, he received significant cash income. His bank statements were littered with large deposits, many which he could not document. Explained federal banking laws and why each of those deposits was a red flag. Showed him how to position his assets for a simple and smooth transaction.
Borrower soon found another house. He applied for the mortgage. We processed and submitted loan. We coordinated with the underwriter. And we kept the realtors and attorneys informed throughout the process.
Result: Mortgage Approved. A Smooth and Seamless Closing. And a loyal client for life.
BOTTOM LINE: The “Big Box Banks” are screwing up left and right, as realtors and attorneys will attest. The days of “mortgage salesmen” are over. BEFORE starting your search for that new house, consult with a seasoned, professional, and Certified Mortgage Planning Specialist® with a proven track record. Only then can we uncover and address those molehills that become mountains, and position you for a smooth and stress-free transaction.
Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, The Daily News, Anton Press, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.