TV Mini-Series: “The Borrowers” (Episode 1)

FADE IN:

Ring Ring.

OMC: “Hello, this is Mike from Ocean Mortgage Capital – How can I help?”

CLIENT: “Hi – My Friend would like to take $50,000 of equity out of her home to buy a business. Can you tell us what her home is worth?”

OMC: “Well, we can help to arrange a cash-out refinance of her home, but she should really speak with a realtor or appraiser about valuing her house. Her realtor should have access to some sales comparables, and she could also check Trulia.com or Zillow.com to get a preliminary indication of value.”

CLIENT: “Thank you – I’ll tell her.”

OMC: “Okay – and if she concludes that the value would support her loan request, then I would be happy to pre-qualify her. I would need to ask her about her income to confirm she is comfortably able to make the required mortgage payments.”

CLIENT: “So then I should tell you that her husband lost his job recently, but he had been working with a good company for at least 15 years.”

OMC: “Well, her husband’s prior employment experience should help him with his interviews and support his job search. Hopefully he will land something soon. Is your friend presently employed to help support their mortgage request?”

CLIENT: “No”.

OMC: “Not only does your friend and/or her husband need to show they presently have ‘the ability to repay’ from their earnings, but they will also need to show that their income is likely to continue for the next three years.”

Here’s the Point: Instead of setting yourself up to default on a mortgage, make sure your income comfortably supports your ability to make your monthly loan payments and other obligations.
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