I took a phone call from a customer. He was in a hurry (aren't they always) and just wanted the short answers to everything. He "doesn't do computers" so that makes everything more difficult, according to him. While we were talking, it filtered into my brain that I had had a very similar conversation with this customer some time ago. Looking back through some old paperwork, I see that it was actually last October.
SC: What would it take for me to build up my credit? Take out a loan?
Me: One of the ways is to take out a small loan and pay it back on time.
SC: So if I borrowed $1000, walked out of the bank, then turned around and paid it back right away, that would give me a credit score so I could take out a home loan?
Me: Well, it would be better to pay it back according to the schedule, to show good payment history.
SC: So there's no way you could give me a home loan today?
Me: Maybe if you could get a cosigner.
SC: My wife is divorcing me, and I need to pay her so I can keep the house.
Me: If you’re still married, your spouse would have to sign the mortgage. (Minnesota is a community property state.)
SC: She’s divorcing me. She’s not going to sign anything. (This is about where it clicked that I’d talked to this guy before about his wife divorcing him. Apparently it’s been a very long process.)
Me: That does make it complicated. If you have the completed divorce paperwork that shows you get the house, then she won't need to sign.
SC: I won't have that until I pay her off for the house.
Me: Usually these things happen at the same time. You can tell whoever's preparing the divorce papers that you're working with us to get a loan.
SC: Ok. But I don't have a credit score.
Me: If you don't have any credit at all...
SC: I don't.
Me: Then you'll probably need a cosigner - a family member or friend - it doesn't have to be your spouse - who's willing to sign off on the loan documents.
SC: Do we have to come in at the same time?
Me: Not necessarily. In fact, for the application, since you don't do computers, you could pick one up here at the bank and then you can each fill out your portion of the application and return it. Then we'll pull credit for both of you and look at your income and debts together.
SC: I want to know what rates are like.
Me: <goes over rates and terms>
SC: Can you tell me what's in my accounts? Savings and checking?
Me: Sure. Your balance in savings is $xx,xxx.xx and checking is $x,xxx.xx.
SC: That's less in savings that I had last I checked. Did my wife make a withdrawal?
Me: <pulls up image of withdrawal> Yes, she withdrew $xx,xxx.xx (about half of what was in the account) and got a money order.
SC: <makes upset words>
Me: If you don't want her to be able to withdraw from either of these accounts, you'll have to open new accounts in just your name and close these accounts.
SC: <makes noncommittal sounds>
We wrapped up after that. I remember from our last conversation that he wanted to prevent his wife from taking money out of his checking and savings. Looking back through paperwork, I see that I actually typed up new documents for new checking and savings accounts for him, but he never signed them. So they never got on the system.
It's a tough situation, but he has options. He just needs to follow through. And actually take the time needed to complete them, rather than rushing me through incomplete explanations.
We'll see how long it takes him to follow through on any of this.
SC: What would it take for me to build up my credit? Take out a loan?
Me: One of the ways is to take out a small loan and pay it back on time.
SC: So if I borrowed $1000, walked out of the bank, then turned around and paid it back right away, that would give me a credit score so I could take out a home loan?
Me: Well, it would be better to pay it back according to the schedule, to show good payment history.
SC: So there's no way you could give me a home loan today?
Me: Maybe if you could get a cosigner.
SC: My wife is divorcing me, and I need to pay her so I can keep the house.
Me: If you’re still married, your spouse would have to sign the mortgage. (Minnesota is a community property state.)
SC: She’s divorcing me. She’s not going to sign anything. (This is about where it clicked that I’d talked to this guy before about his wife divorcing him. Apparently it’s been a very long process.)
Me: That does make it complicated. If you have the completed divorce paperwork that shows you get the house, then she won't need to sign.
SC: I won't have that until I pay her off for the house.
Me: Usually these things happen at the same time. You can tell whoever's preparing the divorce papers that you're working with us to get a loan.
SC: Ok. But I don't have a credit score.
Me: If you don't have any credit at all...
SC: I don't.
Me: Then you'll probably need a cosigner - a family member or friend - it doesn't have to be your spouse - who's willing to sign off on the loan documents.
SC: Do we have to come in at the same time?
Me: Not necessarily. In fact, for the application, since you don't do computers, you could pick one up here at the bank and then you can each fill out your portion of the application and return it. Then we'll pull credit for both of you and look at your income and debts together.
SC: I want to know what rates are like.
Me: <goes over rates and terms>
SC: Can you tell me what's in my accounts? Savings and checking?
Me: Sure. Your balance in savings is $xx,xxx.xx and checking is $x,xxx.xx.
SC: That's less in savings that I had last I checked. Did my wife make a withdrawal?
Me: <pulls up image of withdrawal> Yes, she withdrew $xx,xxx.xx (about half of what was in the account) and got a money order.
SC: <makes upset words>
Me: If you don't want her to be able to withdraw from either of these accounts, you'll have to open new accounts in just your name and close these accounts.
SC: <makes noncommittal sounds>
We wrapped up after that. I remember from our last conversation that he wanted to prevent his wife from taking money out of his checking and savings. Looking back through paperwork, I see that I actually typed up new documents for new checking and savings accounts for him, but he never signed them. So they never got on the system.
It's a tough situation, but he has options. He just needs to follow through. And actually take the time needed to complete them, rather than rushing me through incomplete explanations.
We'll see how long it takes him to follow through on any of this.
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