This guide covers choosing a loan officer with no mortgage lender overlays. This guide will discuss watching out for these seven red flags when choosing a loan officer. Buying a home could be stressful if you choose an inexperienced loan officer.
There should not be stress during the mortgage process. Stress in the mortgage approval process can be minimized by your choosing an experienced mortgage loan professional.
While most mortgage loan officers are very busy people who have to juggle a myriad of things and at the same time keep their clients happy, there is a certain etiquette that all professionals should follow. If you happen to find yourself working with a person who does not make you feel comfortable, it is your right to fire them
Tips For Choosing a Loan Officer
Below are some of the behaviors that, when done regularly, can indicate if your loan officer is up to par. Condescension: You feel the mortgage loan officer thinks you’re an idiot. No return phone calls: You frequently wait more than 24 hours or longer for a return phone call, text, or email. Rushes you off the phone: You can barely get a word in, and when you do, you can barely finish your sentences. Is strictly business all the time: You don’t know anything about your mortgage loan officer besides his name and where he works. The loan officer doesn’t know anything about you outside of what is on your mortgage application.
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What Happens When Loan Officers Overpromises and Get Denied
Overpromises and delivers: When you notice a pattern of being promised certain outcomes during the transaction, just to hear regularly: “I’m sorry but….” Preoccupied when speaking to you. When you are speaking to your mortgage loan officer there are long pauses on the other end, and you can tell that he did not listen to anything you said. No explaining. If your mortgage loan officer hates questions and doesn’t like to explain when asked.
Not All Lenders Have the Same Mortgage Lending Requirements
Not all lenders have the same mortgage lending requirements. Just because one lender does not approve you does not mean a different lender will not. Over 80% of our borrowers at Gustan Cho Associates are borrowers who could not qualify at other mortgage companies. There are two types of mortgage guidelines: Agency Guidelines: All lenders need to meet the minimum agency guidelines set by FHA, VA, USDA, Fannie Mae, Freddie Mac.
What Are Lender Overlays
Lender overlays are mortgage lending guidelines that are above and beyond agency guidelines. For example, HUD, the parent of FHA, requires a 580 credit score to qualify for a 3.5% home purchase FHA home loan. Most banks require a 640 credit score, although FHA only requires a 580. Banks calls this higher credit score requirement a lender overlay on credit scores. Just because a borrower may not qualify with one lender they cannot qualify with a different lender with no overlays. Borrowers should make sure when choosing a loan officer that the loan officer represents a mortgage company that has little to no lender overlays.
About The Author
Gustan Cho Associates are licensed commercial an residential mortgage lenders license in 48 states including Washington, DC, Puerto Rico, and the U.S. Virgin Islands. The team at Gustan Cho Associates are the most rounded and experienced individuals in the nation.
Remember that finding the right loan officer is a personal decision, and it’s essential to choose someone who fits your specific needs and preferences.
Take your time, ask questions, and don’t hesitate to seek multiple opinions before making a decision. The loan officers at Gustan Cho Associates are the nations top mortgage loan originitators with extensive experience in commercial and residential mortgage lening. Over 80% of our borrowers at Gustan Cho Associates are folks who either got denied at other lenders or the lender did not have the loan program the borrower were looking for.