It is important to shop for the truth, not for the answer that you want!
Today is the buyer’s commitment date, but the lender has not issued a commitment, in fact they are declining the loan!
That’s because the buyer does not qualify for the purchase, (which is what we told him when he came to us for the loan). He is self-employed and we suggested that he come back once his most recent year of tax returns was completed because his income would be higher.
The buyer decided that he didn’t like that news and went to another lender where he was given a pre-approval letter. He then made an offer to buy a property, spent money on the inspection and the appraisal, and guess what? The buyer does not qualify and he will not be approved.
How does a consumer differentiate between information provided by two presumably professional lenders? How does a buyer determine who is telling the truth?
You may recall Reggie Lewis, star basketball player and the 1987 number one draft pick for the Celtics. He had a heart condition and one team of doctors told him that he should never play basketball again. He sought a second opinion because he did not like that first answer. He dropped dead from a heart attack during practice.
Just because you do not like the answer does not mean that the answer is wrong.
Have the lender walk you through exactly how they arrived at your numbers.
Ask for detailsget the why.
Use the information gained with the first lender when interviewing the second. Ask, “Why can you do this when the other lender said that it could not be done?” Then carefully consider the answer.
You can take that answer back to the first lender if you think that will help you gain clarity.
In light of differing opinions, get a third.
Regulators are trying to create a mortgage system where the
Consumers have to be smart, educated, and shop responsibly; not just for the lowest rate or the answer that they want to hear but for competency and knowledge of the marketplace.
