Being in the mortgage industry for over 10 years now, I have narrowed down some of the basic problems that consumers often run into when applying for a mortgage. A mortgage application and process can be a very complex situation. Most loan officers are trained to take the application and submit the file and see what happens. Often, the loan application gets turned down or gets re-structured by the lender into a loan product that may be worse than the actual loan applied for.
Why does this happen?
90% of all loan officers do not have the knowledge and skill to pre-underwrite a loan application themselves. As a mortgage broker we have access to thousands of loan programs and we need to be on top of all the rules and guidelines pertaining to these products. Not only do the products vary greatly but they also can change week to week.
As a mortgage broker, we here at Artisan Mortgage Company have the skills necessary to take an application and actually quote you a loan that you will get approved for. Artisan Mortgage takes the extra steps to looker deeper into the loan application and make sure that many of the potential pitfalls have been addressed.
I hear story after story from clients who have been quoted loans they don’t qualify for, or even worse have been given loans where there were better loans available. If you talk to many people who have taken out a mortgage in the last 2 years, you will find this to be a common theme. Many times a simple detail is missed by the loan officer because he or she doesn’t have the knowledge or ability to pre-underwrite the deal, to look at ALL the aspects of a loan file, not just the credit score and equity position. The client who was expecting to get 6% is now being offered 7%, 3 days before closing is supposed to take place.
Even worse, I see clients who close at 7% and are told that was the best rate they could get. Sometimes it’s true but more often than not, there was a better loan available however the loan officer took the easy way out. Rather than spending hours of their time to research and find a better loan, they simply sell you the one that is easiest to get done. The loan is worse for the client but the commission is the same for the loan officer.
I suggest you talk to several mortgage people whenever looking into applying for a mortgage. Ask many questions and try to pick out the mortgage broker. A few minutes of shopping around can often save you thousands of dollars. Also, don’t be afraid to walk away from a mortgage that you deem to be unfair or too costly. The mortgage process can be very frustrating for consumers but if you find a true mortgage professional, he or she will make the process very smooth and calming. Just because a loan officer tells you are being offered the best loan available doesn’t make it true. You should be able to understand why you don’t qualify for the better loan and if you’re loan officer can’t explain it, they probably don’t understand it either.
I.E see if your local Home Depot clerk can tell you how to install new plumbing for your bathroom? And then call a 40 year Master Plumber!
Get the Idea.