IN THE LOAN PROCESS
If I work with your client in the preapproval stage, the borrower’s specific circumstances may dictate what kinds of homes they should be looking for and in what price range. If we start working together early enough, we can determine what loan program will work best for your client. For example, if your client-borrower does not have a large down payment, I can offer them various loan programs that are designed for people in their situation; perhaps an FHA loan or VA loan. If they shop for a property in a USDA-designated rural area, I may be able to direct them to a USDA loan. They may be able to get a grant or some sort of down payment assistance. The point is, if I know the buyer’s circumstances early in the process, we (as in you, the agent, and I) can conduct a more targeted approach in selecting homes to show the client. This will likely increase the probability of the borrower obtaining a loan, and possibly shorten the amount of time the process takes. There are different techniques available to the savvy loan officer to get buyers approved for a loan, even if they don’t have a large down payment. It is a similar situation in the case with a borrower/home-buyer who has a low credit score. A diligent lender can work with a borrower who has a credit score all the way down to, in some cases, a 550 FICO score. The FHA program allows this. It is not easy to do and some borrowers will dissuade or turn such borrowers away. That’s because a buyer with a score that low is challenging. However, it can be done. I have even found loans for buyers who did not have any credit score — they were able to get approved for a loan based on solid documentation of long-tenured job history, solid rent and utilities payments over a number of years, and the fact
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