We see it all the time… that certain look in a borrower’s eyes when they’ve been turned down for a mortgage loan in the past. It’s a lack of confidence. An “I’ll give it one more shot” kind of look.
We love meeting these types of folks. Folks that never give up.
Folks like a recent borrower of ours who came to us for that “last shot”. They were trying to buy their first home but had been turned down 3 times in the last few months. Someone told him he might still be able to get a loan from us even though he’d been turned down elsewhere.
The prior lenders were hiding behind guidelines. The last one cited “internal overlays” as the reason, meaning that if you didn’t hit a certain credit score, you were automatically turned down.
Hitting a certain credit score was, in fact, a problem for this particular borrower.
You see, it wasn’t that he had bad credit. He actually had no credit at all showing up on his credit report.
Our borrowers had a lot of things going for them. He had a stable job as a production manager at a local factory. His significant other and co-borrower had a stable job as well as a tutor teaching grade school kids.
They had been renting from a landlord for 5 years and had even saved up some money for a down payment.
The Netflix Solution
When we run into situations like this, our team knows how to help borrowers build alternative credit. This can take the form of verifying any type of bill that you pay on a regular basis.
For this particular borrower, we verified his rent as well as a few of his personal accounts including his Netflix account.
The combination was enough to get him approved for a mortgage loan!
The best part?
As soon as they got their home, they also got engaged to be married!
His significant other had been waiting for them to get a more permanent living situation before wanting to get married. And the new home sealed the deal!
Just more proof that mortgages are not just about transactions, they’re about putting families in homes.