The statement “knowledge is power” is really a true statement. Unfortunately, that power can also be a bad thing. Case in point is the borrower who called yesterday because they could not get the lender they were working with to give them any sort of straight answer regarding the purchase of a new house. Ends up the lender misused their “power” in that they powered them right out of a deal. Here is the problem…there was really never a deal there in the first place.
We preach this constantly that you must work with a lender who knows what they are doing. How do you know this? Work with somebody you were referred to because somebody you trust trusts the lender. Get references!! Then call the references (if you get them and do not call then it was worthless).
Real quick, what happened with this borrower is they were told they could buy this house. But the lender did not approve them appropriately. Once we got everything we told them immediately there was no way they could get approved at this time. The reasons for that were clear, simple and well established in guidelines. The only excuse for this other lender is they were clueless. To make matters worse they just were not calling the borrower back. They knew they were hosed and did not have the decency to let the borrowers know. That is wrong.
If you or anybody you know is thinking about, or currently in the process of, obtaining a mortgage then we would love to advise them as to their best options.