The mortgage industry is a complex business. We play the role of financial advisor, CPA, credit specialist, mortgage professional, and even a lawyer (in a limited legal capacity of course).
Serving the real estate community in Plattsburgh, NY has been a true privilege and solving the most complex financial issues has become a source of pride. In so many cases, a Plattsburgh homebuyer would apply with another mortgage professional only to be turned down or learn that an unrealistic down payment is required. After speaking with the client and doing analysis of the credit, income, and assets, it becomes clear that with proper financial guidance and diligence, homeownership is not so unrealistic.
A recent example occurred when a retired Veteran came into the office unannounced. Although my schedule was full I felt compelled to meet the man after overhearing him speak to a coworker.
This gentlemen who served our country for over 15 years was rejected because of a high debt to income ratio (a ratio used to determine how much debt someone can afford)…. At 3 banks!! He seemed financially competent and I found it hard to believe that this man would make a choice to take on more debt than he could afford. So…. I went with my gut, shuffled the schedule, and started the consultation.
He had outstanding credit, had great income (as our Veterans deserve), and had $72,000 in his savings account. The issue, he said, was that he already owned a home in Florida and supporting a second mortgage in Plattsburgh would increase the debt ratio higher than approvable limits. He also told me he wanted to put $35,000 down on his home.
The wheels began to turn. The solution was so clear it amazed me that the mathematical insight wasn’t present with some of the younger lenders. His mortgage balance on his home in Florida was $26,000. If he paid off the mortgage (a VA loan), he would eliminate the mortgage payment and reduce the debt ratio. In addition, now that the first VA mortgage was paid in full, the client would qualify for a new VA loan with no Mortgage insurance, no down payment, and an extremely low interest rate. In some cases a second VA loan is approved but this was not the case for this client.
When I laid out the financial roadmap to purchasing his new home I could see a weight lifted. He would not only purchase the home he was denied for at three financial institutions but he would receive a lower interest rate, reduce his monthly obligations by $1345 a month, and keep $9,000 extra dollars in his bank account.
This is the moment a mortgage professional lives for. Helping someone by finding a financial solution unique to a clients needs. Not every transaction is “easy money”. Not every transaction is quick. A mortgage is one of the most complex financial tools in the modern world and real estate is typically the largest asset you will ever obtain.
Work with a professional that provides sound financial advice, not a “no hassle closing”. Sometimes it takes work to serve a client the right way. The same way this gentleman served our Country. Thank you $;(:&$;) for your service and congratulations on the new home.
Anonymous Mortgage Professional
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