Your Loan Officer Is Kind Of A Dick - But, Then Again, So Are You!

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Nuvolari
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Your Loan Officer Is Kind Of A Dick - But, Then Again, So Are You!

Post by Nuvolari » January 26th 2022, 9:45pm

Long-term interest rates have jumped about 1% since the beginning of the year….

Some of the more marginally-qualified buyers are finding it difficult to close on the homes that have been built for them.

One particular jumbo buyer ($1.23MM loan) is angry that the two 30 day ‘late’ payments in October and December of 2021 have impacted his credit score rather substantially … and, therefore, as a significant risk parameter in how his loan is priced, has resulted in a much higher interest rate than where he started in late September. You know, back when rates were low and his credit score was high.

Look, I know you don’t ‘like’ the rate - but nobody cares about that. I report the rates, man, I don’t make them.

Yes, yes, I did it, I’m the devil. But, in the meantime, you better talk to some banks who are cool about your recently shitty payment history - ‘cause that’s gonna be a ‘no’ from me, dawg.

It’s way more fun to be the Candy Man {“Great news, docs were sent to title and, after you sign, you close on the 12th!”} than it is to be the Hostile Econ Professor which is how the bulk of my conversation now tend to go:

“…Yes, yes, but the inflationary pressures are no longer believed to be ‘transitory’, so the Federal Reserve is finally speaking out loud about tightening monetary policy - it’s happening, Sanjeev! Rates are simply not going lower in the near term. I’ll tell you what, I’m going to lock your rate - but if it IS better tomorrow, I’ll have you float down to the lower rate - and I’ll pay for your appraisal. How does that sound?”

Uh… can I think about it and get back to you tomorrow?

“Sure, sure - that’s just what I’m going to do, but think about it all you want.

“My role here is to ensure you are able to perform when you have to close in 3 weeks.

“If rates go ANY higher, you will need to make a larger down payment because you will no longer QUALIFY for the loan which has been approved - which means we will have to document and verify the source of the additional funds.

“Noooo, I’m locking: this is the rate. However, if you really, honestly, genuinely (seriously!!?) believe rates are going to move lower in a meaningful way in the near or medium term…. understand we have no prepayment penalty so you would be free to pursue a refinance whenever you believe it may be appropriate.

“And then timing won’t matter - because you’ll have closed on the home they have built for you.”

The guy at my bank said he thought they could ‘probably’ close on time…

“Maybe. However, if you don’t close your purchase on time as stipulated by the purchase agreement, the Builder may very well cancel the purchase contract, retain your large deposits, and re-sell the property for at the higher current market price.

“The only upside would be that, without a subject property to pledge as collateral for your loan, higher interest rates will no longer directly impact you.”

Oh no, we really want this house. Please go ahead and send me a lock confirmation right away. But if there is anything you can do to give me a better deal - like a discount? That would be great…

“I’ll get an update Loan Estimate sent to you before the end of business tomorrow.

Thank you - and congratulations on your new home!”
”Russian Warship - Go Fuck Yourself!”
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