When I am speaking on the phone, clients always seem to assume that their situation is the “worst I have ever seen”. This is no doubt because they have no idea how crazy some of these deals can get (I am not called “Mortgage-Impossible” for nothing …). When you call, don’t worry … it is incredibly unlikely I am going to be
surprised by anything you say. It is even more unlikely that your situation is the “worst I have seen” – probably not even close.
Clients also always seem to think they have to provide some reason as to why they have run into financial trouble. So they will insist on telling me all kinds of details about their situation – sickness, job, divorce, some sudden unexpected calamity. In many cases, the story almost sounds scripted – like they took the time to write it down, so they could get the words just right when they called.
While I am flattered that clients would care what I think, you needn’t concern yourself with that. I am not in the business of judgement. It is not my job – nor my place – to give you a little sermon along with your loan. My job is to provide you with a service – as quickly, efficiently, and wisely as possible. That is it. I will leave all the morality to others holier than I – who have made fewer mistakes in their lives than I have made.
The only reason I will ever ask you a background question is if the lender asks me. And this is why I have written this post – to explain the difference between institutional and private lender requirements. I touched on this before, in an earlier post found here: http://talktogerry.com/credit-categories-good-bruised-horrific/
I try to find loans at the lowest possible cost – for the given situation. This is my paramount goal. And seeing as institutional lenders are sometimes cheaper than private lenders – if your situation is not too serious, an institutional deal should be considered before we use private money. The cost savings can be significant – in the range of 3%-4%!
But while they are cheaper, institutional lenders ask questions. The cheaper the money, the more questions they ask. The lenders I deal with are FAR more open-minded than a bank. So they will often do deals that a bank would never consider. But in order to satisfy themselves that you will likely repay the new loan – they will ask you for SOME details as to how they can expect to be repaid. If you don’t have an NOA – do you have SOME statement(s) that show you are making money somehow? If you do not have a paystub – do you have SOMETHING that shows you are gainfully employed? You haven’t paid your taxes – can you show you have at least FILED? This sort of thing.
It is amazing how we can work through many of these hurdles – once there is a co-operative lending institution that actually wants the business! (In other words, somebody other than a bank!)
If your situation will not allow for an institutional deal, we will have to use private money. And now, the questions about income, employment, etc – basically go out the window. While it is true that nearly all institutional lenders will want some kind of story as to how the client has ended up in the current situation – the private lender doesn’t care. Your income doesn’t show up – or you have no income at all? In the end, none of this is going to matter.
So to repeat what all my advertisements say – “Even if everyone else has turned you down, call me now to discuss your situation!” A deal isn’t always possible – but most times it is.
And don’t worry about my opinion as to your situation. I am not your Dad. I don’t have an opinion (at least not one that matters). After just a few questions – I will immediately get to work finding you a loan, at the cheapest rate possible.
And I will do so without judgement.