MortgagesUndressed

First a related Tip: Be careful, Ann was an open invitation to get soaked in the amount of fees she would be charged. She may have not known she could have been charged over $12,000 in origination fees because she was in a vulnerable, needy situation. This mind you, was on a $300,000 loan. I make this as a point of why you choose loan officers carefully. It is one of the purposes of this forum.

In this 4 part series I expose special programs, expose bad practices, and tell you of a good lender. Ann (name and minor facts changed of course) called me a few months ago. She was in urgent need of a refinance to take someone off title on her home. She was going back into the work force after a long period of being a stay at home mom. She had been a well paid technologist but now wanted to try her hand at sales. She had just received her first commission.

Her question to me went something like: I have to refinance. How will I be able to do this? I am told I need a two year earnings history to qualify. I am told lenders average my last two years income after expenses. I just started, how can I qualify? I must qualify.

I asked Ann a few questions including: do you know what your FICO score is? Answer: Around 700 I think. How much equity is in your home? It turned out to be about 33%. Do you have enough cash reserves in the bank to cover 6 months of mortgage payments? Yes.

Ann’s’ loan closed a few weeks ago. I called a wholesale lender I trusted and reviewed the details. Knowing she could qualify for a special program, I then advised a local mortgage company I have had experience with, about the program Ann qualified for. They closed her loan at a great Wholesale Bank, Aurora Mortgage. http://www.auroramortgage.com/ Note, to get a loan with wholesale mortgage banks like Aurora Mortgage you apply with a bank or mortgage company that has a mortgage broker contract with them.

This actually turned out to be easier for the mortgage company I sent her to than a typical loan would have been. The standard, conventional, loans require documentation they were able to waive for Ann. Ann paid a little higher rate than conventional market rates, but not much higher.

Soon part 2: Why was the loan so easy? Part 3: How could she have been overcharged? Who else is typically vulnerable to being overcharged? Part 4: How do I find the right loan officer and lender?

PS: If you need help right now, email me at larry@MortgagesUndressed.com. Just as I did not charge Ann, I won’t charge you. And for sure, you won’t become a lead.

TO: Ann’s Story - Scene 2