Tell it like it is.
Borrowers, there is no benefit in telling part truths or leaving out information. This is important when you are trying to figure out what you qualify for or what interest you can get.
A situation came to my attention last night that illustrates this. I don’t know how many times I have seen such a case.
The borrower wanted a pre-qualification letter to buy a home. He is on commission, has been for several years. He said he had good credit. He was seeking to purchase a home 0 down. Based on the above plus an approximate $90,000 annual income he qualified and got his pre-qual letter.
It was a waste of everyones time. The facts came through with tax returns and a credit report. His middle FICO score was 659 with a very recent 30 day late on his mortgage. Loans can be done with a 659, but not likely at the rate he first was quoted. Not 0 down.
Another problem was his income was $70,000 last year and only $29,000 the previous year. He now didn’t qualify based on income. The loan officer found a stated income program for him, but at a higher rate. This disturbed him.
All in all, everyone wasted their time.
Be forthcoming with all facts that might be pertinent. Don’t stretch the facts. They all come out.
