Independent Contractor Reduces Debt by Refinancing

Small business owner Erick Baylor* knew he had to do something to address his financial situation. He was staring at an interest-only first mortgage that carried a rate of 6.875% as well as a secondary home equity loan (HELOC), which had an even higher current rate of about 8.2%. To make matters worse, Baylor had accumulated high-interest credit card debt the last two years as his residential remodeling business experienced some constriction.

“It’s been tough these last few years,” Baylor explained. “I knew my debt load was increasing while the business wasn’t generating the same level of income it was previously. I was slow to pay off my rising credit card debt due to lack of work, and I began to feel like a hamster in a spinning wheel! I reached the point I had to make some changes, but I wasn’t sure if there were any options available to me given the mortgage marketplace. Then, as luck would have it, someone referred me to Ed Winder at Reliance First Capital.”

Finding the Right Program

“During our first discussion, Ed took the time to understand my specific financial situation,” said Baylor. “He wanted to know about me as well as my finances. He carefully reviewed my credit report with me to make sure all the information was correct, and then he began to craft a mortgage plan which would address my immediate and future needs.”

During the discussion, Ed learned that Baylor had served in the Navy and thus would be eligible for a VA loan. In addition, Winder suggested a Cash-Out refinance, which would enable Baylor to pay off the high-interest credit card debt as well as the higher interest mortgages he was carrying.

Smoothing out the Process

As required for all VA loans, Baylor had to provide documents to prove his veteran status in order to qualify for the loan. “There were definitely a few more challenges with the VA loan versus a conventional mortgage, but Ed’s knowledge and professionalism helped make the entire process very smooth,” explained Baylor. “We even encountered a bit of a snafu as some of the documentation from my previous mortgages were not filed correctly. But, again, Ed’s ability to identify exactly what was needed helped us get over that hurdle. Ed went above and beyond what I think any other mortgage professional would have done to get the job completed.”

It’s All About Service

“Ed definitely made this one of the easiest [refinancings] I have ever experienced,” Baylor said. “Ed was constantly following up to make sure I knew the status of the application. He calmly and professionally led this transaction to a positive outcome. He provided great customer service, and now I’m in a much better financial position.”

*A pseudonym was used at the request of our customer.

[cta]Looking for a lender who will give your application the attention it needs? Contact your Reliance First Capital (NMLS ID #58775) mortgage analyst, Larry Karpen (NMLS ID #58775), at lkarpen@reliancefirstcapital.com or (516) 422-8816, ext. 1.[/cta]