What I learned from my most recent loan

I just got docs out on one of the most complicated loans I have ever worked on.

At the end of the day, it was no ones “fault” that this was such a difficult deal… there was just a unique set of circumstances surrounding the sale of the property and the uniqueness of my borrower.  Personally, I feel 100% confident that this client will have a perfect loan repayment history and I’m very comfortable with the loan package we put together.

After sorting out a non-traditional income situation, side-stepping a few land-mines, rushing through the deal to meet a short-sale deadline, and putting the client through the ringer… we finally got final loan approval and moved to docs.

But a troublesome thing happen on the way to loan docs.  The borrower’s employer refused to sign a Verification of Employment (VOE).  A VOE is a document all lenders have completed by the employer of their borrower within 72 hours of closing a loan.  This document helps ensure that the borrower is still employed and that their job is likely to continue.

Unfortunately, the small HR department at my borrower’s employer was hesitant to sign and return this document.  Without it, the deal would have died a horrible death at the 11th hour.

Luckily we got it resolved and the client is signing loan docs as I type.  However, this potential deal-killing loan condition has made me reevaluate what I tell my clients regarding their loan approval.  From now on I will ensure my client has a cooperative HR department prior to having them remove their loan contingency.

As always, if you have questions, please contact me at TrustYourLender@gmail.com