Another sad day for logic… Another real estate broker turned down for a home loan

By
Real Estate Agent with Keller Williams Realty

By Todd Clark (Broker/Sales Coach) 503-524-9494

I'm left scratching my headI was talking to a friend of mine who was trying to buy a home, but he said despite making five times what his wife does per year, he was turned down for a loan while his wife was granted a home loan with no problem. This is what has left me scratching my head and let me explain why.

Why was he turned down, despite having a 35% down payment and 742 credit score? According to the underwriter it is because he is commission based and there is no way to guarantee he would have a check every month.

So, what was my friend’s mortgage broker’s solution? Let’s try to get the loan in your wife’s name only. Well, the loan went right through and the underwriter issued the loan in the wife’s name for the full amount without question. All she wanted was her pay stubs from the past year and a copy of her taxes. (You know the ones that the husband is also on, since they file jointly?)

So, the house closes and I wasn’t going to question a thing if the underwriter wasn’t. So, why do I think this is such a sad day for logic on this loan? They wouldn’t give the husband the loan because he didn’t have a steady paycheck, he was commissioned based real estate broker. But, his wife got a regular check… FROM HIM! Yep, he is the one that wrote her the check, she was an employee of his. So, who cares if he couldn’t pay for the home, because clearly she would still be getting a check every month if he was bankrupt.

Do you understand the logic on this one? If so, please explain it to me?



Todd Clark - Broker / Sales Coach
All Brokers Real Estate
Phone: (503)524-9494
Fax: (503)622-8739

Contact MeSubscribeSearch the MLSMy website www.IFoundYourNewHome.com

Newest Post Last post I did prior to this one

Get a list of local short sales delivered right to your inbox daily

Twitter Bird by Janko.


Tigard Oregon Homes for Sale, Tigard OR homes for sale, homes for sale in zip code, 97223,97224, Tigard Oregon Realtor, Tigard OR Realtor, Tigard Oregon MLS Search, Tigard OR MLS Search, 1st time home buying expert, short sale expert, avoiding foreclosure in Tigard, helping families home, LivingBeaverton, Townhomes for sale, home for sale, house for sale, Bull Mountain North, Bull Mountain South, King City, Mountainview, Greenburg, Summer Lake Neighborhood, Summerfield neighborhood, Tigard neighborhood, Walnut Grove Neighborhood. Tigard Oregon Real Estate, Tigard OR real estate, Todd Clark, (503)524-9494, WWW.LivingTigard.com, www.IFoundYourNewHome.com, www.SavingyouFromForeclosure.com

©2010 Todd Clark - Originally posted at Another sad day for logic… Another real estate broker turned down for a home loan

Posted by


Todd Clark (broker w/ Ken's Home Team)
Keller Williams Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)746-9573

 

 

 

 Follow Todd Clark on FacebookVisit my websiteFollow me on Twitter



 I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.

 

What if there was a way you could search the  MLS for FREE just like Realtors

Now you can access the MLS using similar tools as Realtors. You are in control of what you want to search for, and you can search the MLS at your leisure. The information you submit in the form below can also be used to put you on an automated system where you'll be emailed all homes that meet your search criteria. You'll get internet access to a website that includes pictures, prices, and addresses to real estate that's listed in the MLS!

5 Star Professional 2011  5 Star Professional 2012

MyFreeCopyright.com Registered & Protected

close

Re-Bloggged 1 time:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the umbrella to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
Lending / Financial
Groups:
Almost Anything Goes
Club Chaos
Dedicated Bloggers
Diary of a Realtor
REALTOR LIFE
Tags:
home loans
underwriters
commission
real estate agents
logic

Comments 84 New Comment

Rainmaker
214,152
Troy Erickson
Your Chandler, Ahwatukee, and East Valley Realtor
Terra Solis Realty, LLC www.ChandlerRealEstate.weebly.com

Todd - Now that's a funny story, and what makes it even funnier is that it is a true story.  It just goes to show you that there is not a lot of logic in how loans get approved by lenders and underwriters.  The system was flawed before, and obviously still is.

April 07, 2010 06:00 PM
Ambassador
2,030,419
Todd Clark
Broker - Beaverton, Oregon Real Estate Expert - (503) 524-9494
Keller Williams Realty

Thanks everyone for stopping by, I see some of you want more information, but I just don't have it. I was the listing agent on this one and I have to go with what I was told. But, to me this is just another reason that owner financing is such a good option for so many people, including the banks if they would start to allow it again.

April 07, 2010 07:02 PM
Rainmaker
168,948
Heather Fitzgerald
REALTOR Greenwood Indiana Real Estate
REALTY WORLD-Harbert Company, Inc.

Todd, that is absolutely ridiculous.  Not surprising, but ridiculous.  If it wasn't so sad, you could almost laugh at the ignorance in this logic.

April 07, 2010 08:23 PM
Rainer
113,917
Dinah Stallworth
NATCHITOCHES, LA HOMES FOR SALE
Priority Real Estate LLC - 800.978.4847

Todd,

This doesn't surprise me, it has happened to me.  It is harder to get a loan when you are self employed.  Our  income they feel is not steady, like people working full time jobs getting a pay check.  I think  more laws need to be changed to help the self- employed obtain loans.  I'm glad this story had a happy ending. 

April 08, 2010 08:33 AM
Anonymous #86
Anonymous
Anonymous

It doesn't seem there was any logic involved here, but no surprise, due to the mortgage housing crisis our country has experienced these last couple of years.  Todd, I'm glad the end result worked out for you on your loan, although not the way it should have.

April 08, 2010 10:44 AM
Ambassador
2,030,419

Todd Clark

Broker - Beaverton, Oregon Real Estate Expert - (503) 524-9494
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the world to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

Helping Families Home is a blog set up to help families find that perfect home for them. I have a family and I understand how hard it can be to find a home that everyone is happy with. Let me help you find that home and help your family home.


Find out why I'm a happy grasshopper