When lenders get together, we love to trade stories.
So today, I wanted to share some home buying scenarios that I have gone through with clients and that my friend, Gregory Peters from Fifth Third Bank, has also gone through - so you can be prepared before you start your mortgage journey.
Rebecca: Have you ever had a client that quit or changed their job right before closing?
Greg: This actually happened to me this month. Last year, I had a buyer go through the entire construction perm process, underwrite, and close the file. He was a prominent CEO that was planning their retirement for the year prior, but he never mentioned it. He had a great pension that was going to be guaranteed for 3 years and I was confident that it would work out. The next day, he messaged me to thank me for the hard work and that he had decided to go ahead and pay in cash.
Rebecca: That’s why it’s so important for us to have all of the information ahead of time. Sometimes job changes aren’t a big deal. We can keep rolling with it and update the documentation. Other times, the entire income structure can change so as lenders, we always recommend not changing your job during this process.
Greg: And if you do change your job, please let us know as early as possible.
Greg: Along the same lines, what is the craziest job change you’ve experienced with a client, Rebecca?
Rebecca: So I had a client that was salary-based, meaning W-2, that then got promoted to a more commission and bonus-based structure. It was great because his earning potential was 2x what he was making before. However, now he didn’t have the history of earning that type of income and it killed the deal.
Rebecca: What’s the craziest purchase you’ve seen a client make during the process that threw a wrench in everything? I’ve had a client buy a car during the process but he was able to pay off another debt and be fine.
Greg: There was one instance where we were a week before closing and we were taking care of the final closing conditions -
Rebecca: Which includes credit-monitoring up until the day of close - an important point to remember.
Greg: Absolutely. There was something new that popped up on the client’s credit and it was rather large. It was over $100,000. I told the client that it would have been helpful to know he was financing a lamborghini during the home buying process and he said “how did you know it was a lamborghini?”
Rebecca: Because we know everything. So that’s why lenders also say not to finance anything because we have to monitor throughout and ensure that at the time of closing, we’ve got a full financial picture. And if that picture changes, it can change your approval.
Greg: So Rebecca, give me an example where you received a document at the last minute.
Rebecca: So, as good as we are, we still need time to make sure the process works out. Recently, I had a situation where the client forgot to tell the lender that they were under contract. I received that contract about 2 weeks into our 30 day contract and we had to ask for extensions, etc. So please be responsive if we ask for documentation. When you’re responsible, we have time to do what we need to do to get you closed on time.
Rebecca: I would say that to avoid being an example, listen to your lender. We are working for you and want you to have a great experience. But we need to be an active part of your process in order to deliver what you’re looking for.
Ready to start talking about your home buying journey? You can contact me by emailing (firstname.lastname@example.org) or finding me on Instagram (@the.mortgage.mentor).