We discussed borrowers who own over 25% of their company being effectively “self-employed” on Monday.
Why Realtors Need Mortgage Knowledge
This issue came to light with one of our borrowers recently because the borrower let his Realtors (a team) know about his ownership interest; because the Realtors know lending guidelines, they had the borrower immediately contact us. This literally saved the transaction because it allowed us to dance around the ownership issue and ensure there would be no problems in underwriting.
The borrower thought there was no issue because he went from one W2 job to another. It was only because the Realtors were savvy enough to spot the issue that a larger blow-up was averted.
Our broader point is that it is important for Realtors to understand basic mortgage-lending guidelines. Doing so prevents issues from surfacing because borrowers often reveal info to Realtors that they hide from lenders. It also prevents Realtors from wasting time on borrowers who will never be eligible for financing.
JVM’s Mortgage Basics Training for Realtors
JVM offers a short “mortgage basics” training class for Realtors. Please let us know if you or anyone you know would like to attend.
