Ever have one of those frantic calls from a Realtor because, after four weeks of processing with a big banking firm, their buyer was being turned down for their FL mortgage approval?  This happens sometimes, but in this specific case the loan officer should have given the bad news on day one.  Does it pay to speak with an experienced FL mortgage professional?  Check this out.

After only a five minute conversation with the buyer, and having just a pen and paper, I immediately confirmed that the qualifying debt ratio was over 70%!  This is obviously too high for the conventional, Fannie Mae or Freddie Mac loan requested. In fact, too high for any residential loan request in today’s mortgage market.  The buyer had two large student loans that pushed the debt ratio too high to qualify.  Perhaps the loan officer wasn’t experienced enough to know that student loans, even in deferment, must be included in qualifying debt ratios with respect to conventional Fannie Mae or Freddie Mac mortgage loans.  That loan officer and buyer learned the bad news on how to correctly calculate debt ratios, four weeks too late.  And since this was a 2nd home or vacation home purchase, the buyer didn’t have the opportunity to change their FL mortgage approach to an FHA loan.

Unfortunately, this FL home buyer had already spent weeks and spent money on inspections and the appraisal – what a waste of time, money and a disappointment for everyone involved.  To make sure you are speaking with an experienced FL Mortgage Professional; ask questions.  How long have they been in the business?  Are there any red or orange flags they see as a professional with respect to this mortgage request, that may be an issue? What are other options available, if any, that should be considered? Does the loan officer ask enough questions?  Were they referred? Why use them?  Just ask.

It shouldn’t take four weeks to determine of the qualifying debt ratios meet qualifications for a FL mortgage.  If you or someone you know need help with pre-qualifying for your next FL mortgage; call, text (407.733.6425) or email me anytime.  Stephen Thaggard

Stephen Thaggard, NMLS 356309,  Sr Loan Officer, licensed in Florida,

Embrace Home Loans, NMLS 2184,  485 N Keller Road, Suite 550, Maitland, FL 32751