Depending on the loan type and the borrower's circumstances, I have the ability to close loans as either a Lender or a Broker. Having this option gives me access to several lending outlets including those that handle lower credit scores, higher debt ratios and more relaxed guidelines overall.
This is important to know because most Banks have credit overlays in place. What this means is even though VA, FHA and Fannie Mae will approve the loan, your client could possibly be declined for financing simply because they don't meet the Bank's credit overlays. Getting stuck in this 'banker's box' is the main reason clients often have trouble obtaining financing.
By having several lending outlets both Lender and Broker, I am able to shop around for your client to find them the loan program that fits with their individual needs. Upon meeting your client, I can immediately tell you whether I can finance a home for them. I will base my initial pre-qualification on verbal information, then follow up with documented income & asset information to assure all the numbers are in line.
During my 30+ year mortgage career, I've worked at several big banks and mortgage companies. This includes the entire duration leading up to and including the infamous "mortgage meltdown". During this time frame I saw mortgage lending go from one extreme to the other.
We began with the ultra-conservative lending programs. For those of you who are somewhat tenured in the real estate & lending industry, you may recall the "28/36" rule. If your clients' debt ratios were any higher than that, the loan was declined.
Then things changed to the 'fog the mirror' mentality. Stated income loans, No Documentation loans and Negative Amortization loans were all very popular and widely sold. This effectively had us in a lending environment where if you had blood coursing through the hand you signed with, you could buy your dream home. Crazy right?!
Fortunately the lending world is now running like a well-oiled machine. Guidelines are not too strict and are not too lenient. Guidelines now make sense and programs are available to meet the individual needs of all types of clients.
Approximately 90% of the loans turned down by Banks are loans that I have a lending outlet for. Your clients do not have to be excluded from the real estate market; contact me today so together we can help realize your client's homeownership dreams!
As always, feel free to contact us at any time for personalized loan scenarios for you and your clients! Please Call (321) 757-5009.