Tough Love
This week I have had some thoughts and questions come to mind that I think every mortgage professional asks him or herself but refrains from asking their potential clients. Questions like:
If a person loses a home to foreclosure, what makes him or her think that he or she should purchase another home 3 months later?
If it wasn’t the customer's fault that they had several credit cards charge off with $2000 balances or higher, then whose fault was it?
Why does this customer feel that they qualify for 100% financing and can purchase a home with a credit score of 530?
Why does the customer think they deserve a lower interest rate when they had a bankruptcy discharge 2 weeks ago and they have no money down to buy a home?
To sum up these thoughts..... it is time that people take responsibility for their actions. I know this is blunt and may come off as brutal but it's true. I know that the advertisements on TV are appealing and the pressure to charge now and pay later is great but no one is holding a gun to to the buyer's head. Yes, I feel that there should be a class taught to High School students on the consequences and responsibilities of credit. The lack thereof does not excuse anyone from irresponsible financial dealings.
Don’t get me wrong, I have had hard times myself. I won’t go into detail but I can understand the situation some people may be in. Nearly everyone falls on hard times such as job loss, medical concerns, death, or other tragedies. The question I ask is this. Before the hard times, why do some people make those purchases on credit? Why do they think they need to purchase a home right now? How is buying a home right now going to solve their immediate problems? Why do they feel bitter because they were turned down due to their credit history?
It always amazes me when I meet with someone that is asking for me to put them into a position to fail. Folks, if a person has $25 in the bank and $2000 in past due bills, why does he or she feel that they need to buy a home? Sometimes it takes time to prepare for such a commitment. Most people take what they can get without knowing that they could wait 60-90 days to tweak their credit and receive MUCH better loan terms.
Oh and another thing.... it takes a lot of integrity to sit in front of another person and be honest about credit problems BUT if you are honest in the beginning, it makes things A LOT easier. I never pass judgement on anyone that initially has been dishonest with me about their credit. I know it's a difficult thing to face. I also know it is embarassing for them to find out that the credit report doesn't hide much from me and sooner or later I have to find out what happened.
I may lose business because of this post but I will make some other mortgage professional's job that much easier. Work together with your mortgage advisor towards a solution if there aren’t immediate options for your home loan. Excellent credit is a goal that takes a lot of effort to achieve and maintain. If you have credit concerns or questions, please contact me and I will do everything I can to help, guide, and educate you towards excellent credit ratings and a more secure future.
Posted by Jason Lash at 11:04 AM
0 Comments
Post a Comment
« Home