This client has applied for a new home loan and is planning on living in Toledo Ohio. They are currently living in an apartment, having been transferred into the area after having sold their home in another city. They have $120,000 as a down payment which is a hefty amount for a down payment and places then in an excellent position from a new home loan application perspective.
We noticed that when he filled in the questionnaire , they indicated that they needed a $150,000 mortgage, however when they did the calculations at the bottom of the page, they indicated they needed financing for $250,000. Either way ,this client has the income level to support the monthly payments at the higher mortgage level, however he will need to resubmit the application so that all parties are clear about the amount of the new home loan that is actually required. It is probably a simple mistake, however for legal purposes they will need this clarified.
The home they are considering is vacant and move in ready, so they are looking for a fast approval. Unfortunately they are also looking for competitive rates and terms and do not want to pay for the appraisal. There is usually some room to negotiate, however negotiations can take time, especially if proposals go back and forth several times. There may be a conflict with their desire to move in quickly vs. the time it takes to negotiate acceptable terms and interest rates. This is a choice they will have to make. The bank would also obviously want them as a customer, however they also need to cover their costs.
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Saturday, October 1, 2011
This applicant has a poor credit rating and he is looking for a mortgage refinancing solution to his credit card problems. He lives in Cincinnati Ohio and works as a real estate agent. He is recently divorced and is trying to recover financially from his recent divorce and the credit rating brought on or triggered by a marriage gone bad. He certainly has enough income to support the mortgage he is looking for and he seems to have the knowledge he needs to manage his finances and get out of the situation that he finds himself in.
We are inclined to think that the bank will probably approve his mortgage subject to further examination of any other debts that he may be responsible for due to the separation with his wife. He did not mention a car loan, however he must have a car to run his business and meet clients, so he should be prepared to provide more information about any financing that he might have related to his vehicle.
The home was recently appraised for the purposes of the divorce, however due to the volatility of the real estate industry these days the bank will likely want to have a new appraisal completed to satisfy themselves that the home is really worth the indicated value. He should also be prepared to provide the latest copies of the credit card statements and also his latest bank statements. The bank will want to verify the balances and also the transactions that have been processed to satisfy themselves that there are no other loan payments being deducted. (Continued)
Saturday, September 17, 2011
This client has a bad credit rating and would like to obtain a loan to purchase a motorcycle. He lives and works 
in Cleveland, Ohio. He is employed as a motorcycle mechanic and obviously knows something about motorcycles. Unfortunately he has bad credit and this is the single biggest factor in whether lenders will consider loaning him the funds to purchase the bike he is considering. Since he is a motorcycle mechanic and he has his motorcycle drivers license, he will no doubt be a better driver than most drivers.
Although he has repaid all of his previous debt, he has yet to demonstrate that he will meet all of his commitments and as a result his credit rating has not improved. He is hoping to demonstrate through payment of this loan that he can be trusted to repay his debts. He also wants to borrow the full amount of the cost of this motorcycle, which indicates that he either has no savings or he does not want to use his savings as a down payment.
Motorcycle riders are notoriously accident prone and therefore insurance is expensive. Most lenders will want to have their clients invest some of their own money into their purchase of their motorcycle rather than borrow the full amount. In addition they must also provide evidence of adequate insurance to show that if an accident does occur, the lender will get their money back.
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Saturday, September 3, 2011
This client is hoping to find a lender that will lend a him a loan of $400,000 on an interim basis to cover 
financing for a new building that he wants to move into. This is typically called a hard money mortgage because loans of this type are usually placed privately. Unfortunately many banks are not willing to touch this type of mortgage due to the perceived risk associated with this type of loan. The clients business is located in Lorain Ohio and apparently business is booming in the appliance repair business due to the recession. Many people are finding it is less expensive to repair than it is to replace their failing appliance.
We are concerned that this business owner may be premature about his ideas for expansion. With the economy picking up, many people are apparently more confident now and willing to begin replacing some of the appliances that he has been repairing. We are wondering if his business will decline slightly over the next few quarters making the expansion he has planned un-necessary.
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Saturday, August 20, 2011
This applicant would like to be approved for a 30 Year Mortgage on a home in Youngstown Ohio. Both he and 
his wife are fully employed at stable companies and make sufficient income to support the mortgage they are requesting. We fully expect that this couple will be approved for the mortgage they are requesting.
They are not sure of the final amount that they will need, however this can be finalized once they make a decision and firm up the offer on the house they are considering. The bank needs to know the full amount that they need 15 days prior to the deal closing. The bank should have no problem meeting their deadline of seven days and they understand the need to finalize the deal as soon as possible to avoid losing their dream home.
There credit rating is excellent since they have no loans other than their current mortgage. They have managed their finances very well, avoiding debt and paying credit card bills immediately. They appear to have excellent financial management skills.
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This applicant is looking for a private mortgage loan and lives in Canton Ohio. The applicant did not indicate 
why he was looking for a private mortgage in his application and there are no banks that we are aware of that provide private financing of any kind. We treated this application for a mortgage loan as if he were applying to the bank for a regular mortgage and not a private mortgage loan. There may be other reasons that he did not mention on his application as to why he appears to desire a private loan.
He appears to be in an excellent position to be approved for this mortgage. His credit rating is great shape and he has no debts that were included in the application. He is a private contractor in the eyes of the bank, since he runs his own business as a long haul trucker with his own rig and normally represents a higher risk, however given that his truck is fully paid for and he has no other debts we believe he should be approved for a mortgage.
He stated that he has not yet made an offer on a home and is planning to begin looking in the next few weeks. His purpose in applying now is to understand how large a mortgage he would be approved for and what the cost would be on a monthly basis for this mortgage. Depending on further assessment he may be approved for mortgages at various rates, however since the amount that he will need is not clear, we decided to do a number of calculations for him at various mortgage principal levels and keep the interest rate and amortization the same in each case.
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This applicant is looking for an adjustable rate mortgage and lives in Parma Ohio. He should be an excellent 
candidate for this adjustable rate mortgage to be approved since he has a stable job , shows great responsibility in terms of paying his debts and knows what he needs in terms of financing. In addition, the amount he is looking for relative to his homes value and the fact that he will be repaying a large portion of this mortgage makes him a very good candidate.
An adjustable rate mortgage line of credit would be the right mortgage vehicle for him since he wants a low interest rate and will be able to repay large chunks of the mortgage in the the near future. Lines of credit are excellent tools for many people who have the ability to manage their money responsibly and who have varying levels of income or cash availability. This seems to fit this applicants need very well. His monthly payments assuming he borrows the full amount would only be 13% of his income which is quite low and manageable for him and his wife.
One concern that he should be aware of is that the interest rate on adjustable rate mortgages move up and down with the published value of the federal bank rate. This is a potential danger area for all clients, since an increase in rates will push the monthly payments up and make it tougher to meet the monthly payments. If he is approved for a line of credit he will have the option of paying only the interest each month which provides some leeway, however it also means that his principle will not decrease with this approach.
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This applicant is looking for a Home Equity Loan Refinancing and lives in Dayton Ohio. He has an existing 
mortgage of $160,000, credit card debt of $20,000 and a car loan of an undisclosed amount. He plans to refinance his existing mortgage, consolidate his credit card debt and use the remaining funds to update and remodel his home. We believe this applicant is a good candidate for this type of mortgage and have calculated his monthly payments based on a 30 year amortization at prevailing interest rates. His monthly principle and interest at the higher rate will consume 24.2% of his gross income not including property taxes, so he just fits within most guidelines. He did not mention whether he was married or whether his wife worked. This may be further support for his mortgage application that can be taken into account.
There is another alternative that this client might consider. Instead of a traditional home equity mortgage, he might consider a home equity line of credit mortgage. With this type of mortgage he can draw on the line of credit as needed to repay credit card debt and to complete his remodeling plans. Assuming a standard mortgage payment plan, his monthly payments would be quite a bit less and only take 18% of his salary due to the lower interest rate. This may be a plan that both he and the bank might be able to consider. He appears to have a relatively stable job and with his overtime, may be able to contribute to his mortgage even more so than the regular monthly payments.
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This client has applied for a new home loan and is planning on living in Toledo Ohio. They are currently living in an apartment, having been transferred into the area after having sold their home in another city. They have $120,000 as a down payment which is a hefty amount for a down payment and places then in an excellent position from a new home loan application perspective.
