Shmuel Shayowitz (NMLS#19871) is President and Chief Lending Officer at Approved Funding, a privately held local mortgage banker and direct lender. Shmuel has over two decades of industry experience, including licenses and certifications as a certified mortgage underwriter, residential review appraiser, licensed real estate agent, and direct FHA specialized underwriter. Shmuel provides a uniquely holistic approach to comprehensive real estate and financial matters that goes well beyond any single transaction. Shmuel is an award-winning financier recognized for maximizing the short-term and long-term objectives of his client. As a contributing writer to many local and regional newspapers and publications, his insights have been featured in the media for many topics, including mortgages, personal finance, appraisals, and real estate trends.
A few months back I was invited to speak at a Real Estate brokerage, to present Approved Funding to all of their agents. I gave my “shpiel”, discussed a few examples of how my experience and expertise can be of assistance to their clients, and was ready to be on my way. As I was packing up, an agent in the back yelled out and said, “I bet he can’t do the Smith* mortgage”, – which was quickly followed by several whispers and comments that I wasn’t quite sure what to make of. (*name and exact circumstances have been changed to protect the identity)
After a few minutes of being briefed about “The Smith’s,” I quickly learnt that one of the agents in this office had been diligently working with them for almost a year, and finally found a home that they desperately wanted. Their initial offer was rejected, but after a little back and forth negotiations, the agent was finally able to get the seller to accept the terms. For some reason, no one bothered to make sure these potential home buyers were pre-qualified for a mortgage, and there was no pre-approval in the client file. Not to worry – The Smith’s had “a guy” they knew, who can “hook them up” with a quick pre-approval so that the contract could be submitted to the sellers. The sellers accepted the deal.
Less than a week after the offer was accepted, Mr. Smith called the real estate agent to let her know that their mortgage guy could not deliver as promised. Their income was simply not enough to qualify for the mortgage. Disappointed, but not deterred, the agent suggested that they speak to one of the brokers that others in her company have been using, who seems to be able to get “every deal closed”. Fast forward two weeks later – again Mr. Smith called to relay the news of not being able to get approved once again for their mortgage. The sellers were going to be livid. The real estate agent was depressed. The buyers were heartbroken. The owner of the real estate company now got involved as it was surprising to hear that their “superstar mortgage guy” couldn’t deliver. He found out that they tried many different strategies to get the loan approved, including using Mrs. Smith’s parents as co-signers for the transaction. All of their efforts for naught. The next day was my presentation. They told me not to even bother.
Armed with that background, I asked to speak with Mr. and Mrs. Smith and their parents as soon as possible. I asked them to send all their paperwork including the information presented to both mortgage companies. I quickly saw all of the different strategies and approaches that both mortgage companies tried pursuing to no avail. It was a valiant effort, and unfortunately I too didn’t see any additional options for them. The combined income was slightly too low, even after paying off disproportionate debts in order to qualify. I sent them on their way feeling a bit disappointed at not being able to help.
The next morning however I called Mr. Smith with an idea. I asked him to get me a copy of his father-in-law’s recent mortgage statement. I ran some numbers. I did the full analysis. My hunch proved to be right. Mr. Smith’s father-in-law could save significantly on his current mortgage by refinancing into a new 25 year mortgage. It would save him almost $400 a month in payment, and reduce his total payments and interest over the life of the loan. It was a no brainer. But more than benefiting the father-in-law, it now enabled him to be an effective co-signer for the mortgage, and actually qualify for the home purchase.
As of this writing, I am pleased to say the refinance loan has just taken place, and the home purchase is already approved with a commitment letter being emailed to the buyers attorney. I could have emailed the commitment letter to the real estate agent as well, but I didn’t. This approval I wanted to deliver in person. #AnotherApprovedLoan. Special shout out to “Mr. Smith” who believed in me from the start!
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