Troubled Loan Warning Signs
Sometimes its just down right impossible to tell when things are going wrong until, like a hammer, it comes crashing down on our thumb. Ouch!
When buying a home it's no different. All we can do is gauge how things are going based upon our own intuition, what we hear in the voices of others and what we see going on around us. Given this, some good indications that things are not going according to plan are:
- That Loan Originator that was so excited to speak with you, has now pulled your credit and suddenly become MIA.
- That Same Loan Originator has now referred your file to "The Newest" member of the Loan Origination Team. Granted, you typically won't know they are "Brand New".
- You ask your "New" Loan Originator about the FHA program and they ask you what an FHA is.
- The Real Estate Agent that was so helpful before talking to your Loan Originator now seems to have no time to show you that home you liked.
- The Real Estate Agent tells you to "Go look at these homes and if you find one you like, send me an e-mail and I'll schedule a time to meet you so you can see the inside".
- The "New" Loan Originator goes from talking about a 5% interest rate to talking about 7.5% or "maybe a little more or less". Usually a good indication your rate is going to be 10% "more or less" when you're done.
- You've gone through all the original documentation your Loan originator has asked for and the only straight answer you can get comes from the dog when he "barks" to go outside.
- You start talking about down payment assistance programs and your "New" Loan Originator say, "Let me get back with you".
- You mention local grant assistance programs and your Loan Originator says "Grants are a myth created by Aztecs in the 12th century AD". Huh?
- You ask your Loan Originator to work with your Real Estate Agent and a specific 501c3 Charity organization and you have to refer them to this site so they can understand what one is.
- Your Real Estate Agent tells you a 501c3 Charity program is "A Scam and Fraud and I'm not going to have anything to do with it!"
- You've finally found that dream house and the Real Estate Agent needs a Pre-Approval letter as part of the contract offer. Amazingly enough, the Loan Originator is "Hesitant" to provide one due to "legal issues".
- Your contracted offer is accepted and when you tell your Loan Originator you want to lock your rate, you're advised about underwriting issues which still need to be addressed. When you ask for specifics, they start doing the "Dirty Dance Shuffle".
- You ask your Loan Originator for a Commitment to lend, they say sure, let me get one mailed out to you and two days later you get another "Pre-Approval Letter".
- You gan unexpected phone call from your "now interested" Real Estate Agent just calling to "make sure everything is OK".
- Just when you think nothing could go worse, your Loan Originator calls and asks if you have a credit card you can borrow $2K from to place in your savings account. Doh!!!!
- You again ask for that commitment to lend and you hear the dreaded "What is that?"
Yes, this is a lighter side look at some serious responses and things I have seen happen in real life. If any of these things happens to you, run, run quickly and find someone who will work hard for you regardless of your situation.
Home Buyer Education:
Building A Credit File
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