Before I moved at Arizona in 2005, I had a Department Of Defense (DOD) pass on my Jeep which allowed me to have access to certain military installations on the east coast. I typically would visit the base at least one day each week. One day I received a call from the base asking for an appointment. This was not unusual. I was to speak to a married couple who wanted to purchase a home near the base.
These two individuals were both active duly U S Air Force enlisted personnel. He was going to TDY (temporary duty) in just a few days to go to school for a few weeks. She, however, was six months pregnant. They really wanted to buy a house for the new baby. They planned to stay in the area for a few years and did not want to live on base. They had managed to save up $5000 for furniture for the new house. They were going to be “proud” parents. The excitement just beamed as they smiled and spoke of the future.
As soon as I could get them pre-qualified they were out looking at houses. In just a week or two they found the perfect house. They called me and were both happy and sad at the same time. They were happy about the house. It seemed perfect, but they were sad as the Realtor informed them that this house was in high demand and the seller required an earnest money deposit of (you guessed it) $5,000. My reply was “Don’t worry. Give them the $5,000. You’ll get it back at closing.”
As a loan officer, I have been told many times that a borrower is not permitted to “get money and get keys” at the closing table. But I learned many years ago this rule, “You have an advantage within the rules; if you know all of the rules”. It is true that they were not permitted to receive borrowed or undisclosed money at the closing table; however, they were permitted to receive “excess earnest money”. These (soon to be) new parents were so happy when they received a check for over $4600 at the closing table so they could buy the new baby furniture.
We became friends after that time. They were really pleased a year later when I told them the interest rates were falling and they qualified for an IRRRL (Interest Rate Reduction Refinance Loan) with no appraisal and no money out of their pockets. This allowed them to go one month without having to make a payment and have lower monthly payments.
Our veterans deserve the best treatment possible. If you’re a veteran; Thank you for your service!
