Recently, a woman who was interested in purchasing Laurel, Md. real estate, gave me a call. She was in the market to do buy something immediatley. She said she was already approved to buy a home in the 250K range. She admitted she backed out of a deal previously because she did not like the terms her lender gave her on the purchase.
I began to ask her questions about exactly what she didn’t like about the lender’s terms. I discoverd the lender wanted my new buyer to pay $70,000 out of her bank account to qualify for the property and to get the interest rate she wanted. The buyer did not understand why she needed to pay so much money with the income she had. She was willing to make a down payment of $40,000, but not $70,000.
After listening to the buyer, I decided I needed to call the lender.
The lender explained that due to the buyers credit history and debt she needed to come up with $70,000 at the table to buy this house. The lender did give me some detail about the buyers’ financial make-up. Based on the information he gave me and my 14 years experience, I felt the buyer could get in the home for 40K not 70K.
I asked the buyer if she wanted to speak to another lender. She did want a second opinion. I put her in touch with a lender who had earned my trust. The new lender agreed, the buyer could get in the home for 40K. The buyer did not need 70K down payment to buy this home.
The buyer informed her old lender that she was going with a different lender. He immediately offered her the same terms the new lender had given her! Both the buyer and I were shocked. How was he suddenly able to do the same exact deal for 30K less? Needless to say, they buyer refused his offer and settled on her new home with the lender I recommended with no problems.
Oh, I forgot to mention, the first lender use to be a sub-prime lender.