Ann’s story - Part 2 - Why did I say the loan was easy?
To go back to part one click here. Ann was in a bit of a panic as she was sure she didn’t qualify. I noted this urgency placed her in a position to be overcharged when in fact her loan was easier to do than a standard conventional loan.
Here is why: Ann had 3 major strengths in her financial picture: a credit score of over 700, equity of over 33%, and more than 6 months cash reserve in the bank. Her new commission job left her with having to attain her loan in a program that doesn’t ask for any income information. The rate was about 1% higher than a fully documented loan.
So, in fact this loan was approved and closed with ease, with no verification of employment, proof of income amounts, no tax returns, no pay stubs, no w-2’s to submit.
Some loan officers feel that if they know a nitche program the borrower doesn’t, as in Ann’s story, it is an opportunity to make a fat fee. I call these “fat fee lenders.” Fat fee lenders won’t like this forum. How I want to undress fat fee lenders. Help me out here, world.
Larry Cragun
