Don’t be the “I don’t want to waste your time” consumer

People looking to buy or refinance a home may have been turned down by another mortgage company based on their financial situation. If you’ve been turned down before and you think all odds are against you don’t give up. The first step to failure is not to try. Simply put don’t be that customer that says, “I don’t want to apply because I don’t want to waste your time”. Here’s what you should consider.

 

Every mortgage company in America today has certain things they must do to be compliant. One compliance mortgage company must meet is a federal threshold called ATR which stands for ability to repay. That means the mortgage company must pull a copy of your credit report, they must see your supporting income documentation and evaluate your ability to repay that loan. A mortgage company cannot make a credit decision or give you a correct proposal in terms of rates and fees without fully seeing your documents. Your tax returns if you’re self-employed, a credit report, and whatever assets you have in the bank. If you’re of the mindset “well, I’m self-employed I don’t have my income taxes. I don’t want to waste your time”. Lose that thinking and here’s why; a quality mortgage lender can articulate where you are right now and what it’s going to take to help you be successful. Even if it means the process taking a little while longer.

If a mortgage company is not willing to do that, find another one. Same thing if you think you have poor credit. If you think you have poor credit, reality is you probably do. However, that doesn’t mean the mortgage company can’t help you be successful as it relates to purchasing or refinancing a home. That does mean letting them pull a copy of your credit report. If your credit score is bad and you think that getting a credit inquiry is going to hurt your score even more, it’s probably not going to hurt your score any more than what made it bad in the first place. In other words, surrender to the lender. Let them do what it is that they do well and when you’re interviewing the right company to work with pick one that has the forward-thinking approach in mind. Someone that is going to collaborate with you and that is willing to give you the time and the energy. Telling the lender, “I don’t want to waste your time because I don’t think I’m going to qualify” is a big waste of everyone’s time. Versus just supplying them the paperwork and letting them go through the process. You know you have a good lender when they’re more interested in the relationship with you as a consumer than they are about helping you immediately and putting you into something that you might not otherwise want. You want the forward-thinking approach lender that has the long-term approach in mind and that can collaborate with you over the course of time needed if there’s adversity in your financial picture.

 

If you’re thinking about getting qualified for a loan start today with a no-cost loan quote today!

RELATED MORTGAGE ADVICE FROM SCOTT SHELDON

When buying a home, it’s natural to want the lowest mortgage rate possible. But sometimes, chasing a slightly better rate from another lender—especially after your offer has already been accepted—can backfire in a big way. Let’s walk through a real-world scenario. You’ve got an offer accepted on a house. You’re working with a lender who has you approved, documents in underwriting, and a 21-day close of escrow in place. Everything is moving forward. Then you hear from another lender offering a rate that’s 0.25% lower, with slightly better closing costs. It’s tempting. But before you make a jump, here’s what you need to consider. Switching Lenders Comes with Time Costs When you pivot to a new lender mid-contract, they’ll need to: Re-underwrite your entire loan, Order a new appraisal, Disclose and sign new loan documents, Submit the file for final loan approval, Schedule and fund closing—all over again. This doesn’t happen overnight. Even in ideal circumstances, the new lender is likely going to need at least 25–30 days to close. If you’re in a fast-moving or competitive market, this is a real problem. Most sellers won’t grant a contract extension just because you’re switching lenders. So, what happens next? A Contract Extension Can Jeopardize Your Deal Asking for a contract extension means the seller must agree to delay closing. But that delay introduces risk—especially if the seller has backup offers or simply wants certainty. They may not grant the extension. Or worse, they could cancel the deal outright and take another buyer’s offer. Even if the seller agrees to extend, your earnest money and negotiation power could take a hit. And for what? A slightly lower rate that might save you $50 to $75 a month? Mortgage Rates Aren’t as Far Apart as You Think Here’s the truth: all mortgage lenders get their money from the same place—the bond market. The pricing differences between lenders usually range from 0.125% to 0.25% in rate on any given day. If one lender seems to be offering dramatically better pricing, the first thing you should ask is: How? Head over to FreddieMac.com and check the average 30-year fixed rate posted weekly. This is one of the most reliable benchmarks for where rates truly stand in the market. If a lender is quoting you a rate that’s well below that average, ask for the details: Are they charging extra points? Is this a teaser rate with a prepayment penalty? Is it based on a different loan product or risky structure? Often, what sounds “too good to be true”… is. Consider the Bigger Picture Think long-term. If you’re financing $600,000, a 0.25% lower rate may reduce your payment by roughly $75/month. But what if you lose the house and have to start over? That monthly savings doesn’t mean much if you’re outbid on your dream home or lose your deposit. Also, remember: you’re not going to keep this rate forever. Today’s homebuyers typically refinance when rates drop by about 0.75% or more. So if rates fall within the next year or two, you’ll likely be refinancing anyway. Instead of paying extra points now or risking the entire deal for a minor monthly savings, it may be better to accept a slightly higher rate—knowing you’ll refinance when the time is right. The Real Risk Isn’t the Rate—It’s the Delay When shopping for a home loan, don’t just ask, “What’s your rate?” Ask: Can you close on time? Is this rate sustainable or based on hidden costs? Will switching lenders delay or jeopardize my contract? A home purchase contract is a binding agreement between you and the seller to perform within a set timeframe. If you can’t meet those dates because you're chasing a slightly better rate elsewhere, you may want to reconsider if now is the right time to buy. Final Thoughts Yes, interest rates matter. But execution matters more. Before making a switch mid-transaction, talk to your lender. Have an honest conversation about pricing, timelines, and strategy. You might find that staying the course, securing the house, and planning to refinance later offers a better path to financial security. Want to Know Your Options? Let’s compare rates and strategies the smart way—without risking your dream home. 👉 Click here to get a custom rate quote today.

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