That would be stupid –

Today I heard a beautiful phrase come out of an underwriter’s mouth… “that would be stupid”.

In putting together a particularly difficult deal this month, one of the requirements of the loan was that my client had to have 30% equity on one of the properties he owned.

After doing an on-line property valuation, the figure came back at 27% equity.  My mind began to race.  Would this cause the loan to be declined?  Would we have to order a full-blown appraisal and delay escrow by a week?  Would my client have to bring in $15,000 to pay down his existing mortgage.

All of these scenarios seemed ridiculous considering my client’s strong income, assets, and 800+ credit score; however, I was prepared for the worst and was dreading a call from the underwriting desk.

An hour after submitting the the paperwork that outlined the 27% equity issue, I got a call from underwriting and they said – “we signed off on the condition, ordering a full appraisal or delaying the deal, that would be stupid”.

Hearing that an underwriter was willing to waive a condition based on commonsense made me smile all day.

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