Discouraged from Applying for a Loan?

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 Have you been told you could not qualify?

We sometimes have customers who’ve been told they could not afford to buy the home they wanted.  In one case, the person wanted to buy a home with 20% down and other lenders told them they “could not qualify”.  We restructured the transaction using some of the down payment money to pay off consumer debt.  With the consumer debt gone, and a larger mortgage, their total payments were lower.  They were able to buy the home they wanted with the resources they had.

house key

Help us learn about your unique situation

One of our clients wanted to purchase a home from a relative of his.  We were able to take advantage of some unique rules and structure the loan so that there was no earnest money required, no cash to close, and home ownership became a reality for him because it was a related party transaction.

Overcoming previous credit difficulties

We had a client with some significant health problems that affected his ability to work.  It had a negative impact on his finances.  He had a bankruptcy and multiple foreclosures on his credit record and he was unable to attain a loan.  FHA rules require three years must pass before applying for a new home loan after a foreclosure.  We were able to sit down together and put a financial plan in place so he was able to purchase a home after that three year time period.

Please contact me at 303-469-1254 so we can work through overcoming any obstacles that may be standing in your way to home ownership.

Cosigning on Loans

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Cosigning on a loan can have a negative impact on your credit

Sometimes lenders suggest that a cosigner would be helpful for a borrower to get a loan.  We generally do not recommend cosigning the loan because what cosigning the loan really means is that the cosigner is agreeing to make all the payments on the loan should the primary borrower default.  We have seen multiple cases of cosigners having their credit damaged when the primary borrower fails to pay on time , or at all, and the cosigner receives no notice of the payments due.  The cosigner often learns of the late payments when they go to apply for a loan themselves.  The primary borrower defaulting or making late payments can greatly raise the cost of a mortgage that the cosigner may want to obtain.

mom and student

Cosigning can raise the cost of your next loan

In one case, the late payments on a $1,971 student loan cosigned by a father raised the cost of the mortgage loan by $7,668.  In another case, the non-payment on student loans by a daughter raised the cost of a loan her mother wanted.  The cost of the credit damage to the cosigner is often greater than the amount borrowed on the student loan.

It wasn’t a cosign situation, but one father bought a house and rented it to his son.  When the son didn’t make the rent payments, the father found himself in foreclosure on the home he bought to help his son.

A better option

If it’s possible, it would be better to loan or gift enough money to your loved one so they don’t need a cosigner.  All in all, it would be better not to enter a contract that requires a cosigner because the lender knows the probability of default is high.  If the probability of default was not high, the lender would not be requesting a cosigner.

I would still very much like to learn of your unique financial situation and assist you with setting up a plan to achieve your goal of a home purchase, refinance or obtaining a reverse mortgage.  Please feel free to contact me at 303-469-1254 so we can discuss your options.