"I Got Turned Down, What Can be Done?"

I was driving home, pretty upbeat as I just took a deposit on a home that we were flipping, when I took a call from someone who has just read one of my blogs.

She told me she was just notified she had been denied for her mortgage and is supposed to close next Friday. I listened to her story, asked a number of questions.

Her parents were giving her a good size down payment, but her debt ratio was the problem. I asked her if the parents would allow her to use some of the down payment to pay off her car loan and one other installment loan. She wanted to understand why that would make a difference. I explained to her, that if the money could be used to pay off nearly $500 of monthly obligations and she put less down on the home, her debt ratio won’t be an issue.

She called me back and asked me when I could take her applications, as her parents had no issue how the money was going to be used, as long as she could own her own home.

We set up a time for Monday to take her application as she is about 300 miles away. Fortunately this one is a simple solution, but a loan officer needs to see the entire situation, rather than just taking a mortgage application and not be solution driven.

All in a day’s work, life is good!

Image courtesy of Stuart Miles/freedigitalphotos.net