There she was... across the room at the dance and ten to one odds she says yes. Regardless, I make my slow “It is so on” walk over as best an 8th grader in a gym lit by a spinning disco ball can do. “Hi, would you like to dance?” “No. My friends and I are just dancing together. Sorry.” OUCH!
Moral of the story, no one likes a turn down no matter how pretty it’s dressed up. Of course lending turn downs do not come with a spinning disco ball and have no less the emotion tied to them. This is your dream house. Your destiny! You have been waiting for this house to be on the market for months, maybe even years. Knowing this feeling, I think it was a motivator for me to pursue alternative lending products.
The rules of lending (everyone’s favorite discussion) and who gets a loan have greatly improved the percentage of people keeping their homes and only receiving homes they can afford. The bad thing about the current STRICT guidelines is that many more (maybe even you!) have been shut out of the buying process even though they have great jobs, great assets and a good credit score. A real life example is a client in November, Aaron. He has had a great state job for over 10 years and he never was late on anything until his marriage took a turn for the worst two years ago. He had to get rid of the house in a hurried foreclosure and figure out a new life. Renting for the last year was not something he was excited about so after getting his life back together he started looking into buying. One big bank door after another was slammed in his face. “Sorry sir. You look great on paper but guidelines say no due to foreclosure”.
So, let’s get this straight- He can show he has a job for 10 years for the state, plenty of assets if something happened and he needed cash, the house value would appraise no problem but because of a love life issue, he can’t make a mortgage payment?? This was hard for him to deal with and before finding the products I have available now, it was hard for me to explain to clients.
Although I failed to gain a dance partner in 8th grade I succeeded in finding alternative loan products. Because of these strict guidelines, there was a void in lending to service good borrowers who had unexpected life events. As with most voids, this one got filled. Through accounts with hedge funds (ie- entities with large amounts of capital to invest for the right return) we lend their money and are therefore able to offer it under different rules. One day out of foreclosure…no problem. Two years out of foreclosure…even better. Are you self-employed and not able to show much income but you have bank statements for two years showing great income? Let’s do it! Of course they have their own guidelines and they only lend through approved accounts (like mine) but the options are there. Just because one reputable banking institution or your favorite credit union says it can’t be done, it really is that it can’t be done with THEM. Aaron ended up getting his home with these programs. I have helped many others who got told “no” and we turned it into keys to their new home. If you find yourself in a situation requiring some guidance please know there are always open doors where another closes.