Virginia Beach Home Loans: "Not your concern" Are you kidding me?!?!?

"Not your concern" Are you kidding me?!?!?

I am having a difficult time with a loan that I am working on. Original I just estimated off of the top of my head taxes, and PMI. The PMI coverage required was higher than I estimated and the taxes were higher than I estimated. I locked in a great rate and everything that I promised I have delivered on. Now everything is done on the deal and we are about to move forward with closing. Taxes on the property are $600.00 per month, PMI is $256.00, and insurance is $65.00. Those monthly housing expenses are completely out of my control. I spoke with her this morning, she tells me that she can only go as high as $2,475.00 per month for her payment, but that $2,500.00 is going to be too much. When I initially qualified her I had to estimate on the taxes because she had no idea where they were. When I attempted to get the tax information from her attorney, I was told that it is "not your concern" then he hung up on... but now its my responsibility that the payment including taxes, and PMI has gone up? The P&I payments that I quoted on the GFE have not changed and that is what I have control over. I have zero control over PMI and her scores combined with her high loan to value (higher than originally expected) require more coverage than I originally anticipated, but I told her about the increase in PMI immediately. Taxes I estimated at $500.00 per month which I believed was reasonable for the area. The taxes ended up being $100.00 more per month than my estimate. These circumstances are outside of my control. It is crazy to me how much we are responsible for explaining things that "are not your concern". Now the expenses that I have no control over come up to $922.00 per month.

Christopher Ohlsen

37 Boynton Ave

(845) 243-5293 (Office)

(518) 565-0799 (Cell)

www.plattsburghmortgage.net

chris.ohlsen@guaranteedrate.com

 

 

Comment balloon 6 commentsChristopher Ohlsen • September 21 2007 10:38AM

Comments

Here in Washington, we have access to the tax database so we don't have to go through attorneys, agents or owners to access the information. It's called Realist. I would imaging that you have access to something like this as well. It would probably help you with your tax calculations on future transactions.

Posted by David Edwards (Edwards Real Estate Group, Inc.) about 10 years ago
Christopher - Next time someone tells you it's not your concern, you'll certainly have a great story to tell them to illustrate exactly why it is your concern!  Good luck.
Posted by Marlene Bridges, Laguna Homes|Laguna Condos|Laguna Real Estate (Village Real Estate Services, Inc.) about 10 years ago
Chris, can you do a LPMI loan with your investors? Some banks allow for the originating lender to pay the one time policy, discounted up front by charging the buyer whatever cost is incurred for PMI by charging points. This amount is equal to the charge incurred by the LENDER for the PMI. Although it is disclosed that the buyer is paying points, it is offset by the PMI paid on a once in a lifetime scenario. RMIC does this for us. The coverage is determined by your AUS findings for coverage. If the buyer doesn't have the funds, get it from the seller as a concession to make it work. They will love you for this as the monthly PMI is totally eliminated.
Posted by Richard J. Cyngier (Union Home Mortgage Company) about 10 years ago

David - Thank you for the information, I will look into it.

Marlene - Absolutely, it is very important for Mortgage professionals to have all of the details in order to provide accurate quotes. Funny thing is I called the attorney back to try to explain to him why I needed this information. And again he blew me off by saying "don't worry about it the attorney's will handle it" and hung up again. The guy is just a ... Hmm not sure what I can and cannot say here.

Rick - that would be great! I will look into doing this. I already have 3% sellers concesions built in. I  ran it through DU and verified that this loan is eligible for MCM. If I flip it to mycommunity there is a rate adjustment, but not significant and that would allow me to get the %6 sellers concessions to build the PMI into closing costs.

 Thanks for the information everyone!

Posted by Christopher Ohlsen (Credit Werx, LLC.) about 10 years ago

Small update. I just re-ran it through the pricing desk. Rate goes up slightly with the LPMI and it brings the total overall monthly housing expense to $2,463.00. Less yield, slightly higher interest rate, no PMI payments to be made, and an overall lower monthly payment. I absolutely do not mind making a little less money on a deal when it means that my clients will be happy.

Thanks for the tip Rick1

Posted by Christopher Ohlsen (Credit Werx, LLC.) about 10 years ago
This loan closed and the buyers were very happy with the outcome. They knew that I was up against a mountain but that I got it done and my numbers matched up perfectly to the HUD. I am very happy for these people and I hope they love their new home!
Posted by Christopher Ohlsen (Credit Werx, LLC.) almost 10 years ago

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