Response to “Good Credit, Good Luck”
After looking at the headline of the Sunday 8-26-07 edition of Charleston’s Post and Courier, I knew a response was necessary. The entire front page article propagates not news, but pure and unadulterated FUD (Fear, Uncertainty, and Doubt). Although I am not a real estate agent or in the finance world, my business, nay, all businesses, are tied to this issue. Rather than post the response myself, I asked Jason Watkins, a senior loan officer with Home Mortgage Choices to pen one for me. His response is as follows:
In response to the “Good Credit? Good Luck” article by Peter Hull in the 8-26-07 issue of The Post and Courier, there are still a number of reputable mortgage bankers that buyers can contact. I represent Guaranty Bank, (fsb- Milwaukee, WI) doing business locally in Mount Pleasant, SC as Home Mortgage Choices. We have been Prudential Carolina Real Estates lending partner for over 13 years.
This credit crunch that has resulted in cancelled closings, overnight bankruptcies and underwriting changes across the board has significantly increased our business for August. There are numerous mortgage products available, if you work with a knowledgeable loan officer with the stability of a bank behind them, you’ll be fine.
I personally saved 4 loans in August and closed each of them within 48 hours with funds. I maintain a 100% on-time, funded closure rate and have no intentions of blemishing that record now.
Yes, you have to be able to afford the property you are buying and don’t expect a bank to just take your word for it. And unless Susan Brooks (Good Credit? Good Luck, 08/25/07) has some serious outstanding credit issues, we can finance 20% down, fully documented, primary residence transactions all day long. Ms. Brooks, please call me at (843) 849-0095 – if you can be helped, I can help you.
Buyers! Don’t be frightened – as I tell my realtor partners, before someone goes out looking for a new home, bring them to me. Let’s have them fully approved, lock them into a product (to avoid it becoming unavailable later) and set realistic expectations up-front for everyone.
We continue to offer 100% financing, VA, FHA, state housing, jumbo (loan amounts greater than $417,000) and stated income loans, yes, stated income.
Granted, last years buyer with a 580 credit score, 1-day out of a bankruptcy, open collections and the inability to verify income is out of luck. This is not an exaggeration.
This month, I approved, closed and funded (on-time) a buyer with a 579 credit score, 2×30 day late payments in the last 12 months on a credit card, 10% down, fully documented with a Fannie Mae single lien loan with mortgage insurance. And don’t be afraid of mortgage insurance, for certain buyers, it is tax deductible.
Yes, closings will be cancelled, the mortgage brokers that have popped up in recent years will cease to exist, and some banks will halt wholesale and correspondent lending operations and may eventually leave the industry. But there are lenders that will survive. Guaranty Bank has an excellent management group, a smart, quick product development team and years of experience navigating through change. Our bank and others that manage cautiously in the coming months will remain competitive and all along the way closing and funding new loans.
Buyers, realtors – make sure your loan officer is a) local – do not go on-line and don’t use an out-of-state lender b) backed by a bank – banks maintain 100% control of your transaction – I suggest staying away from mortgage brokers in today’s market – each loan I saved this month was from a broker and c) make certain you use someone you trust.
If you don’t have someone you trust, call me – I’ll work hard to earn it.
The market is changing and no one can tell you with certainty what the outcome will be, but don’t let the negative media stop you. Talk to your loan officer and find out if buying a home is right for you. Guaranty bank (dba Home Mortgage Choices) has been operating since 1923 – I have zero concern with my job security.
The American dream of owning a home is not lost, only the fantasy of owning the one you can’t afford.
Jason M Watkins
Sr. Loan Officer
Home Mortgage Choices
A division of Guaranty Bank
(843) 849-0095
Jason.watkins@gbmail.com
www.jmwatkins.com
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