A doctor, yes an MD, who works for the County of LA as a surgeon, wanted to buy the condo he was living in. His rent was $2800, and he decided before rates go up, he should move. So in May he made an offer and deposited his $40,000 as earnest money. His offer of $800,000 with 10% down had been approved.

He applied to Bank of America, with whom he does banking, and they would not lend on the condominium building. After 3 weeks, they said “like you, not the building” He was out time and appraisal fee.

So then our MD applied to Wells Fargo, and 6 weeks later, and appraisal and credit fees out of pocket, he was told he needed 12 months of the mortgage payment in reserves, which was basically another 10% down. His co-worker, a client of mine and a single mom, had applied for and funded a refinance in 4 weeks and didn’t understand how he a doctor was having so much trouble getting a loan.

She had referred him a couple of times and finally now, in late October he calls me. I reviewed his finances and came up with a solution for him to get the condo by the beach that he wants with 10% down. Remember that banks make up stricter rules than Fannie Mae and Freddie Mac require. For THEIR protection not yours. Jumbo loan (loans over $625,500) are tough to get, and the banks are even pickier (12 months PITI in the bank after down payment and closing costs – sometimes 24 months) is typical. Just because you have a checking and savings account and credit card with a bank does not mean that they will automatically use that great and long banking history to get your mortgage through.

The Dr. admitted that he thought he could do this himself, but is now happy he took his co-worker’s (a birthing coach) advice.

We are both a direct lender and a broker, it’s my job to know all the rules and see where you fit best to get the best terms on your purchase or refi.