Good Wednesday Folks!
Hey it is hump day so it must be time to hump for some business. Now this post is for professionals and consumers alike.
Just a couple of years ago when the mortgage market was booming Indiana Mortgage Brokers like me had plenty of sources to place your mortgage. If you were turned down with one mortgage company, no problem. We would just find another. Then about a year and half ago some of these mortgage companies started to close down. Then more and more. In fact, 236 to date; to get a complete list just go to Mortgage Implode. Now that your back what did you think? Pretty scary site? Do yourself a favor, don't be so afraid.
While sad, the bulk of these mortgage companies did it to them self. Offering low credit score borrowers big loan amounts with adjustable rate mortgages just to default down the road. Not sure but it looks like these companies game plan was to foreclose on the mortgage, sell it and make even more money. While this is might have worked for a while it is not the case today.
So what am I posting about? Well, many of us are now conditioned that when we send a loan to a conforming lender or a Indiana consumer applies to the big tree, country, city, or bank (If you do not get all the references email me. I do not feel comfortable posting names) and get turned down. They then go to their local bank and the same thing happens so many feel that they have no where else to go.
The truth is some folks don't qualify but many homeowners and potential homeowners have options. You need to remember that the "big boys" and local banks have taken the biggest hits. So to recoup losses they have new lending guidelines that are very narrow. Now I can not find the number of active mortgage companies (if anyone has it, please comment) but in Indiana we have dozens of mortgage bankers that approve loans that others don't everyday. Now again, not all are approved but many are approved that have been tuned down elsewhere.
When apply for a mortgage the lender needs to review credit, equity, purpose, employment, assets, etc. This is done with the application, credit report, appraisal, and supporting documents. But what happens when not reviewed by a professional? Mistakes can and do happen. You are dealing with the most expensive purchase most will ever buy. Don't lose it just because your application was not completed right. When you deal with larger companies most times you are dealing with someone that handles up to 20 leads a day. Ask yourself, how much time can they commit to YOUR SITUATION?
Every week I am closing loans (along with other professional mortgage brokers) that have been turned down somewhere else. In fact, even after a great review of the mortgage, a pre-qual from the AE, and a good appraisal the mortgage may be turned down only to be approved by another one of our lending partners. This is not uncommon. Remember that when it goes into a underwriter it is a "human" decision vs. automatic underwriting.
While some mortgages are approved with automatic underwriting this accounts for only about 15% of approvals. Another 15% will not be able to get a mortgage right now due to a number of reasons. This leaves about 70% of consumers that want to purchase or refinance a home that will need the help of a professional mortgage broker.
So if your a real estate professional helping your clients to get approved you need to partner with a professional mortgage broker that can give you options. Consumers, if you have been turned down try the services of a professional mortgage broker. Folks, just like myself, will get you approved or give you a game plan to get you approved in the future. So:
DON'T TAKE NO FOR AN ANSWER!
If your in Indiana I would like the opportunity to apply to become your professional mortgage broker. I will work hard for you and I will get the job done!
Respectfully,
Tony Grego - Indiana Mortgage Company
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