If you’re desiring to refinance your house or even buy a new one and you don’t have several hundred thousand dollars, you’re probably going to need a mortgage. One of the things you should carefully consider is the mortgage company that you’re choosing to apply with. Here are some things you might want to think about and consider if you’re not getting the type of experience that you want…
Not our mortgage companies are created equal. All mortgage companies get their money from the same place e.g. Fannie Mae and Freddie Mac however how they operate, the type of a borrower they support and what product mix they align themselves with may not necessarily be congruent with what you’re looking for.
Here’s what you must understand about the big online mortgage companies. They work on volume. In order to work on the volume, you must be able to support doing lots of loans and pushing as many loans through the system as possible. A mortgage loan containing an ultra-high credit score, big down payment, primary residence, low debt to income ratio is the cream of the crop file. As a consumer, if you’re working with a company whose model is geared towards that type of scenario described and you do not meet those financial finding you may have a less than stellar mortgage experience.
On the other hand, a direct lender that has perhaps an online presence and also a brick and mortar operation and has the ability to go sit with you face-to-face may be a better approach if your scenario is complex, technical or anything less than perfect. Here’s why -these companies don’t typically do as much volume as big online lenders’ do. That is ok because they cater to a different type of consumer. Just because the guy down the street refinanced with an online lender and they got an insanely good interest rate does not automatically mean you can too as every borrower, every loan and every family is uniquely different.
Make sure you tell your lender everything about your financial profile, which means the divorce from 10 years ago, the tax debt that’s only $50 a month not on your credit report, those types of things become critical because getting a mortgage is specifically about details. Mortgage companies operate like this trust but verify. This is in place with everything they do in the loan process.
The moral of the story go sit down with the lender face-to-face as inconvenient as it might be. A lender requesting a face to face meeting is a good indicator that you’re working with a quality lender who cares about their reputation. That is a sign of someone who is confident that they’ll be able to help you, probably is an expert and has the financial acumen to walk you through getting a mortgage if your scenario as anything less than perfect and yes the 3.5% down first-time homebuyer scenario considered not perfect.
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