Loan officer’s diligence helps first-time buyer

Mortgage advisor:

Dominique Stevens, Mayfair Mortgage Advisors.

Property type:

Single-family home in El Cerrito. $899,000. 3.5%. JUMBO purchase

Loan amount: Interest rate: Loan type:

mortgage

Backstory:

By the time our borrower reached out to us, she had been declined for a home loan from three different lenders.

Our borrower was referred to us by one of her friends who is a client of ours who raved about the excellent service she had received from our brokerage.

The borrower has excellent income, having worked for years at the same hospital in the health care profession. However, her mid-FICO was 658, which many lenders will not touch for this type of purchase.

Upon review of her credit report, I noticed she had three derogatory items on it. She had three medical bills for approximately $250 each which had been written off as bad debt by collectors. Often when one has an acute medical event, several bills come in at once, or in a stream, and some of these bills “fall through the cracks.” Borrowers don’t even know that these bills had gone into collections until a thorough inspection is done on credit history.

Our borrower was anxious to start making offers, so she immediately contacted the 3 collection services, paid the fees, and provided us with proof that they had been paid. We sent proof of payment to the credit reporting bureaus and had them expunged from her record. Within a week the project was completed, and her FICO scores increased sufficiently.

We were able to get her full loan approval for a JUMBO loan with only 10% down payment.

Once she received loan approval, our borrower was able to make offers and found the perfect property that we closed escrow on for her within 20 days.