Not all mortgage brokers are created equal.

Yesterday I got involved in a mortgage transaction gone bad. The client's original broker took the application and got a conditional approval back in early December. Since that time the client's employment changed slightly and she started working full time at her previously part time job, and part time at her previously full time job. The problem was that she gets paid cash at her now full time job. When she originally applied she did not really need her part time income to budget for the mortgage, so it didn't matter that she was getting paid cash. However, now that she gets paid cash for her Full Time job, the lender originally indicated that they could not do the mortgage without a traditional paystub. She hadn't worked at either job for more than 1 year, so she did not have any income tax documentation that she could use to verify her income.

This poor lady had just finalized her separation and then lost most of her posessions in the apartment fire in the apartment buildings on South Street in mid-January. She has been living in the Weight Room in a building her employer owns since then. And now her dream of home ownership was going down the drain and her broker wasn't helping her.

I put my thinking cap on and after a few conversations with the client, we got the last 6 months of her bank statements showing she deposited her income into her bank account along with updated employment letters from her employers. The lender recalled the employers to re-confirm her income. After numerous conversations and e-mails with the lender, a lot of begging, sweet talking, and some good luck, the lender accepted the new documentation. It also helped that 100% of our clients with that lender are excellent clients. The mortgage will be closing as originally scheduled on Monday.

I had a hard time sleeping last night worrying about this client, but I will be sleeping well tonight.