We recently assisted a client who had just gone through a divorce. The file was a little more complicated then normal due to the divorce, multiple properties, low credit score, recently opened business etc… We prefer to be involved before the divorce is finalized. This allows us to make suggestions to allow for the optimal outcome for housing needs.
Initially we were trying to just do a cash out refinance on the primary residence as this was the most cost-effective option. Once we received the documentation, we discovered that the income was lower than originally thought. The rental income was also lower, so we had to look at other options. The debt-to-income ratio was over the limit for FHA, so we explored options on the rental property. We decided a DSCR loan would be a good option because we could use just the rental income to negate the mortgage payment. Our only issue is that the credit score was under 660. We proceeded to run credit simulators to see what the most affordable option would be to get the middle credit score over 660. We found that 2 credit cards could be paid down (costing around $2,500) and this would get us over 660. Our client was on a timeline crunch to get the refinance completed because a marital debt needed to be paid. Due to the urgency of the matter, we did what is called a rapid rescore. This allows our credit company to reach out directly to the creditor and the credit bureaus, to update the scores in 3-5 business days instead of 30.
Now that we restructured the deal and had the credit updated, we were off to the races. We were able rush everything and complete the refinance before the deadline. Our client has since been able to pay down the other credit cards and her score is now in the 700’s. Every client and situation is unique and we enjoy the challenge of assisting people in difficult situations. For us, this was one of the most memorable transactions of the year. I think that’s because we could immediately tell how much relief she felt after getting this all behind her. If you know of anyone in a similar situation, please have them reach out to us for help!
From: D Ba<gmail.com>
Subject: A Lender to Consider
Date: November 15, 2018 at 10:58:10 AM EST
Cc: Rob Bennett
I wanted to take a minute to introduce you to Rob Bennett. (You met him briefly a few weeks back when he had stopped by the xxket office for an informal meeting with me.)
Rob will be at the office tomorrow, as we are closing the deal he saved at 11:00 in the conference room. If you are available for a few minutes around 10:00 or 10:30, I'd love for you to meet him.
Just to fill you in a little bit, my sweet clients had decided to move forward with an online lender (against my warnings!). When the online lender began to waver in their commitment, my clients reached out to a local lender here in Athens. Although my clients were a great credit risk, it didn't look like anything was going to work, and we were coming up on our finance contingency deadline, and too close for comfort from the closing date per the contract. Enter Rob Bennett and xxxxxxxxxxx.
Rob and his team pulled off the seemingly impossible - and we are going to close tomorrow, at just over two weeks from them receiving the file! He has worked diligently to make this happen for them, and I just wanted to take a minute to introduce the two of you. Rob is looking to expand into the Athens market, and I thought it might be a great opportunity for the two of you to "talk turkey"! (See what I did there?) Anyway, if you're available, Scott, it would be an honor to formally introduce the two of you tomorrow.