When one broker or banker turns you down, it does not automatically mean that they all will.
In today's market all lenders are skittish about being accused of not following stringent guidelines in making loans and then having the loan come back and have to be carried by the bank or broker who wrote it in the first place.
Similarly, appraisers are skittish to give too high a value to a property and be accused of doing something wrong. The big problems in California, Nevada and other places (not as big here in Texas) that stop sub-prime lending completely have also caused major changes in FHA rules, and lender rules. Sometimes these rules a couple of times a month. Your loan application can start looking good, and then after the rule change, look undo-able.
It's easy to blame every rejection on greedy people, but fear explains it more accurately. You were probably turned down because the program (loan requirements) no longer permit: your credit score, your debt-to-income ratio, your work history, your loan-to-value ratio, or some other factor unrelated to making money off of you. A broker doesn't make any money on a loan he turns down.
It is far better to make some money off a deal than no money at all. Any Realtor or loan officer will tell you that. And as thin as the market is, nobody is turning away business.
Also as mentioned in this post every lender is different. The key word is lender, you definitely want to work with a direct lender vs. a broker if you feel that you may have some challenges. In house underwriting helps a file out tremendously. At Iwayloan we have a proactive underwriter who looks for more reasons to approve a loan vs. decline. We are a true Mortgage Banker and underwrite FHA loans in house. Rates are definitely competitive.
If you would like more info you are more then welcome to call me direct at 877 886 5626 ex 138. http://www.iwayloan.com. I can qualify you instantly over the phone and will process your loan for approval with no charges upfront.
Texas Mortgage brokers, like me, simply have more options and in todayâ€™s timesâ€”borrowers need every option available. Also, retail banks have strict profit guidelines and if your loan isnâ€™t profitable enough for themâ€”theyâ€™ll turn you down. Banks have enormous overheads to carry and who do you think pays these costsâ€¦borrowers. This is really where the mortgage broker model came fromâ€¦mortgage brokers offer lower rates, lower closing costs as a general rule.
However, letâ€™s say you go to bank #1 and get approved on a 5% down, 95% loan. But bank #2 says â€œNO because you want an 80/15 to avoid PMI. Well, they are both 95% loans but the 80/15 is totally different than then single loan 95%. So this is one example where a, on the surface, a borrower gets approved for one loan but not for the other.
VERY IMPORTANT: If the bank approves you with unimproved taxesâ€”please walk away. Builderâ€™s mortgage companies will often â€œapproveâ€ you with unimproved (artificially low) taxes but this is a scam. Walk away if youâ€™re builderâ€™s mortgage company approves you using unimproved taxes.
Hope this helps, visit http://www.mylendingplace.com if you need me.
No , what occured is that you called OK Joe, the mortgage company that tell every one, that they can get a loan,
Then you go off, present a purchase agreement, then guess what, we got problems with your loan....
but we got this subprime package just for you!
Mortgage companies generally make the same thing on loans, some mortgage companies are more honest that others and will tell you that you cannot qualify
Some lenders will 'enhance' those guidelines.... which means that they tack on extra requirements.
Another reason could be that the lender who denied you may not even have access to FHA programs.
Good luck I know it can be frustrating just ask all of the questions you can to be sure you are approved before you start house hunting it will make you much happier in the long run. You can also ask your loan officer to submit the complete loan file to underwriting minus the appraisal and a contract and ask for full credit approval ...then you know you will be good for the next 90 days.
Let me know if I can help in anyway or if you have additional questions.
Sr Loan Officer/PrimeLending