NJ First-Time Home Buyers


How to Be a LOSER When Buying a Home: Pick the Wrong People to Work With

Think You Can Pick ANY Lender or Agent to Work With?

Let me share with you a recent event that caused a home buyer to miss out on $10,000.

I talked to a buyer two days ago. His significant other was doing some research about a local grant programs and they found me. In this case he called about a program that allows first time buyers to receive $10,000 towards the purchase of a home.

Too little - Too lateThere are income limits to qualify for this program. Based off of his income alone, he made just a little too much money. However since his significant other would be living in the property, and is unemployed, this could change the qualifying factors, which also consider the number of people in the household and/or the number of people on the deed. So with two people in the home and on the deed, they now qualified for the $10,000 grant based off of their income.


So they qualify now, good news right?? Not exactly. It would have been better had they never found out. Their loan officer told them the whole time that the significant other could not be on the loan since she provided no income. 

BZZZZZ - - - NOPE - - - NADA - - - Wrongo

You can indeed have a co-borrower that has no income and have them on the loan. Just think of a housewife, a retired spouse, etc. But due to being misguided, this first time home buyer will miss out on $10,000. He was only a week away from settlement when we talked about this, and the program takes about 45 days to complete. The seller is not willing to delay.

Who's wrong here ... the lender, the loan officer, the Realtor?

So SorryRealtors should certainly know about these programs, but this is out of their scope. Is it the lender's fault? Not really. A lender can train a loan officer, but they can't make them know everything. IT IS THE LOAN OFFICER'S FAULT! I'm not about to out that loan officer, I don't work like that. But shall I ask the question again; Do you ...

Think You Can Pick ANY Lender or Agent to Work With?


Well of course you can!!



Steve Kappre is a mortgage loan officer in New Jersey. For more info or questions feel free to contact Steve.

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Comment balloon 16 commentsStephen Kappre • February 20 2010 07:58AM


I'm tellin' ya, Steve. There are all kinds of options if people will seek them out. And pros will take the time and make the effort to FIND OUT what is feasible instead of dismissing possibilities.

In this climate and point in our industry's evolution, we have to think and seek outside the box or miss out.

I drive my loan people crazy with redundant questions, because I'm not sure what I don't know . . . :)

Posted by Candice A. Donofrio, 928-201-4BHC (4242) call/text (Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker) almost 10 years ago

We have a program in Michigan called MSHDA. ( Mi Subsidized Housing Development Program)

I have found many lenders don't want to deal with them, so if a buyer client wants to go that way or says they know about the program we refer them to a lender who is willing to work the state program.


Posted by Missy Caulk, Savvy Realtor - Ann Arbor Real Estate (Missy Caulk TEAM) almost 10 years ago

Candice - Driving me crazy is always ok if your head is screwed on right otherwise ;)

Missy - Personally I'd give all my business to that lender ;) Good to hear you have a go to person. It makes a world of difference.

Posted by Stephen Kappre, Helping You Home (KW Hometown) almost 10 years ago

It amazes me how many people will just rely on ONE referral from a drunk cousin and will not speak to more professionals in that particular field. Someone left a message on my office line late on Tuesday night. I called by 9:30 am the following morning. The woman on the phone said..."thanks, I am all set". What does that mean? You decided to go with the first person who called you back regardless as to what the deal is? You don't even want to hear what I have to say? I COULD potentially be the person to save you thousands $$

Posted by Eric J, Dream Home Financing (Eric J - Dream Home Financing) almost 10 years ago

Ouch, $10 grand is an expensive lesson. I guess some people learn the hard way. I must admit I've had to learn the hard way many times, it has cost me dearly too. Live and learn, right?

Posted by Christopher Watters, Austin Realtor (512-829-8000) (Watters International Realty) almost 10 years ago

Eric - Agree 1000% - And people do miss out, ESPECIALLY when they use a relative. I've seen people get taken for points out the *** in such situations.

Christopher - I try to act like it never happen when things like that happen to me!

Posted by Stephen Kappre, Helping You Home (KW Hometown) almost 10 years ago

Everyone should do their homework on their own as well. I try to educated but when it comes to some things, I tell clients to consult with a professional and a few of them, not just one. Great post Steve!

Posted by Jackie Connelly-Fornuff, "Moving at The Speed of YOU!" (Douglas Elliman Real Estate in Babylon NY) almost 10 years ago

Its a real travesty when people present themselves as experts but in reality are not informed about the service/product they provide. It is unfortunate those people lost out on that program.

Posted by Walter Grewe III, Realtor, SFR, A-REO, Roanoke Homes and Real Estate (Long and Foster Realtors) almost 10 years ago

Steve - We have a lot of these types of programs here in Los Angeles and Ventura counties.  After working with so many clients like yours, its so sad that they didn't hook up with someone like you from the beginning. 

Like Missy points out, not a lot of lenders do not work these programs and that's ok.  Not every LO is cut out to work with these programs.  They typically take longer to close and they require more time, energy and attention when structuring, processing, underwriting (two different lenders) and closing.  So for those buyers who want these programs, it's absolutely vital that they work with a lender who actually has experience closing these kinds of loans.

I love Realtors like Candace.  I'm sorry Realtors reading this but I don't care how long you have been selling real estate, you don't know everything there is to know about mortgages.  I can't stand working with Realtors who think they know more than me about the loan process.  Good post Steve and thx for getting the word out about down payment assistance programs for the low-medium income buyer.

Posted by Donne Knudsen, CalState Realty Services (Los Angeles & Ventura Counties in CA) almost 10 years ago

Jackie - Thanks

Walter - Agree all around.

Donne - Great comments! Love the Realtor info ;) I'll keep you in mind for first time buyers in CA.

Posted by Stephen Kappre, Helping You Home (KW Hometown) almost 10 years ago

This is one reason why we should surround ourselves with other professionals who can answer our client's questions that are out of our knowledge.  Great post.

Posted by Irene Tron almost 10 years ago

Irene - Thanks

Posted by Stephen Kappre, Helping You Home (KW Hometown) almost 10 years ago

My answer is D, all those mentioned are at fault.  This down payment assistance program varies from county to county and any REALTOR not aware of the program is doing their clients a disservice.

Posted by Laura Giannotta, Your Realtor Down the Shore! (Keller Williams Realty - Atlantic Shore ) almost 10 years ago

Laura - Absolutely

Posted by Stephen Kappre, Helping You Home (KW Hometown) almost 10 years ago

Interesting. There are so many unknown programs out there that it may be hard to keep up. But given the buyer told the Loan Officer about it, I would think that the Loan Officer would investigate this further as to help potential clients in the future as well as these folks. Thanks for sharing.

Posted by Shannon Jungmann (Allen Realtors) almost 10 years ago

This post popped up on my Google alert!  You sure are getting some Google juice these days!

Posted by Bridget Cella, e-Pro, Realtor (Re/Max Connection) almost 10 years ago

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