Are All Mortgage Lenders The Same

Are All Mortgage Lenders The Same | Shopping For a Mortgage

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this article, we will be covering the topic on are all mortgage lenders the same. Choosing the right mortgage lender that is suitable to you is one of the most important decisions borrowers will make in the home buying process. Getting the right lender with the best terms and rates is very important for homebuyers on new a new home purchase, and homeowners for refinancing their current home loans. There are many mortgage lenders advertising on television, direct mailers, newspapers, social media, Google ads, and radio. The biggest advertiser of VA loans has the most lender overlays on VA loans. You should always shop for a mortgage when trying to get pre-approved for a mortgage. Not all mortgage lenders are the same on the same loan program. 

Should You Shop For a Mortgage Lender?

The question to the frequently asked question on are all mortgage lenders the same is definitely NO.  Whether you are a prime borrower or a borrower with bad credit, you should always shop for a mortgage lender. Questions frequently asked by our viewers and borrowers is are all mortgage lenders the same when it comes to government loans? Are all the mortgage lenders the same when it comes to mortgage rates for bad credit? Are all mortgage lenders the same when it comes to non-QM and alternative loan programs. Not all mortgage lenders have the same lending requirements on the same type of loan program. We will be answering the topic of are all mortgage lenders the same in this blog.

Is There a Big Difference Between Mortgage Lenders?

Mortgage lenders spend millions of dollars advertising why you should go with them and not other mortgage companies. The advertiser is correct. Not all mortgage companies are not the same. Are all mortgage lenders the same on rates, credit requirements, and the loan program they can offer? The answer is NO. The mortgage industry has strict rules and regulations when it comes to mortgage loan advertisement ads.

How To Shop For Mortgage Companies

Do your due diligence when shopping for a mortgage company. Be very careful on mortgage companies that advertise on television, cable, radio, Google Ads. Mortgage companies spend millions of dollars in advertising. Many lenders are deceptive and take their chances on getting caught. Customer review sites is a great reference source. Lenders who violate them can get in big trouble via fines, suspension. Sometimes their mortgage licenses can get suspended, and/or fined. However, mortgage companies can have higher rates than the competition. Not all mortgage lenders have the same mortgage loan programs. In the following paragraphs, we will cover and discuss the frequently asked question of are all mortgage lenders the same.

Mortgage Bait And Switch Tactics By Lenders

Most lenders advertise mortgage rates and how low their mortgage rates are. Have you ever viewed a mortgage ad stating that mortgage rates are “As Low As 2.99%” when par mortgage rates for prime borrowers are 4.0% on a fixed 30 year Fannie Mae Conventional Loan? . We will cover how consumers should watch out for mortgage lender ads and how many mortgage companies still mislead consumers. This holds true despite the tough and strict mortgage regulations when it comes to mortgage lender ads

Are Are All Mortgage Lenders The Same on Advertised Rates?

Most mortgage lender ads are advertisements that offer super-low mortgage rates. Consumers often see mortgage lender ads offering mortgage rates as low as 2.99%. How can lenders offer 2.99% on a home loan when par rates are at 4.0% for prime borrowers. A prime borrower is a loan applicant with the following:

  • credit scores of 740 FICO or higher
  • has a debt to income ratios of not greater than 40%
  • has 20% down payment to put down on a conventional loan

Do Different Lenders Offer Different Mortgage Rates?

The way these mortgage lender ads work is lenders can advertise low mortgage rates. But need to also disclose the Annual Percentage Rate and state a mortgage disclaimer. Most television ads have the disclaimer that is several hundred words. Very difficult to read and almost impossible to read in the time frame the ad is being aired. But the mortgage disclaimer will state that a 2.99% mortgage rate is available for an Adjustable Rate Mortgage Loan or a 15 year fixed rate conventional mortgage with 20% down payment with a 740 Credit Scores. 

How To Avoid Bait And Switch Tactics By Mortgage Lenders

The purpose for these mortgage lender ads is for consumers to contact the advertiser. There are still many mortgage companies that do a bait and switch. Loan officers tell them that they can offer them the 2.99% mortgage rate if they have a 740 Credit Score and have 20% down payment to put down. They also tell consumers this is only available if they choose the 15-year fixed rate conventional loan program. Adjustable Rate Mortgage loans and 15 year fixed rate conventional loans with 20% down payment with 740 FICO have much lower rates than 30 year fixed mortgage rates.

CLICK TO GET PRE-APPROVED

Are Advertised Mortgage Rates Real?

This is very misleading to consumers. Unfortunately, most mortgage lender ads’ mission and goal is for loan applicants call in. Once consumers call in, they can do the bait and switch.  It is the same with mortgage advertisement mailers. Mortgage companies spend a lot of money sending out mailers with ridiculously impossible low mortgage rates in anticipation for consumers to call them. Once they call in, loan officers do the bait and switch.

No Closing Costs Mortgage Lender Ads

Consumers should be very careful and aware of no closing costs mortgage lender ads. Everyone should know that there is no such thing as FREE. Especially in the real estate and mortgage lending business. Someone has to pay for it. If a mortgage lender is offering No Closing Costs for a limited time through one of their ads, you are still paying closing costs. Maybe not on the front end. But you will be paying closing costs with higher interest rates. Lenders are allowed to give a lender credit to consumers but that lender credit is not FREE.

Cons With Lender Credit In Lieu Of Lender Covering Closing Costs

In lieu of a lender credit, lenders can give borrowers a higher mortgage rate. For example, if borrower get quoted mortgage rate of 4.0% with no lender credit on a $200,000 home loan, the lender can offer a $5,000 lender credit in lieu of raising the mortgage rate to 4.5% ( Note: These mortgage rates and lender credit amount is by no means accurate and are used for illustration purposes only ). In a sense, the mortgage advertisement is correct where there are no closing costs. However, the truth of the matter is that the consumer does pay for the closing costs on the back end by getting a higher mortgage rate

Ask For Options On Covering Closing Costs 

Nothing is wrong with the borrower not paying the closing costs in lieu of higher mortgage rates. However, borrowers need to get offered the option of whether they want to come up with the upfront money to cover the closing costs or get a lender credit towards closing costs towards their home loan. Mortgage lender ads stating no closing costs and for lenders not offering free closing costs is misleading. Consumers need to be careful with lenders with aggressive advertisement campaigns.

Mortgage Broker Being Able to Do Loans Other Lenders Cannot Do

NEXA Mortgage, LLC dba Gustan Cho Associates has a reputation for being able to approve and close mortgage loans other lenders cannot do. Over 75% of our borrowers at Gustan Cho Associates are people who could not qualify at other lenders. Many homebuyers, realtors, real estate attorneys, and even loan officers cannot believe a mortgage lender/broker like Gustan Cho Associates ever exists. Due to popular demand, we decided we need to be licensed in all 50 states. Gustan Cho Associates has over 180 verified preferred wholesale lenders including specialty niche market wholesale investors. During today’s volatile housing markets where home prices are surging, where we can broker non-QM and alternative mortgage loan programs to specialty wholesale lenders. We have over a dozen lending partnerships with non-QM and alternative wholesale mortgage lenders. Over 75% of Our Borrowers Are Folks Denied at Other Lenders

Best Mortgage Lenders For Low Credit Scores

http://www.youtube.com/watch?v=bJ19uwPu3bA There are tens of thousands of mortgage companies in the United States. All mortgage companies are licensed and bonded. Why deal with Gustan Cho Associates when I can stop by and try to qualify at a local brick-and-mortar mortgage company. One of the main reasons why Gustan Cho Associates is different than other lenders is because we are able to do mortgages other lenders can’t. Over 75% of our clients are borrowers who could not qualify at other lenders due to a last-minute mortgage denial, stress during the mortgage process, or because they did not have the mortgage loan program the borrower needed. Any lender can handle an 800 FICO credit score borrower with a low debt-to-income ratio, and not a ding on their credit. However, that is not how the world works. People of all nationalities, gender, social class, professions, and wealth can go through periods of bad credit. The team at Gustan Cho Associates are experts in their fields. We are experts in being able to do loans other lenders cannot do. 

Expert Mortgage Brokers For Home Loans With 500 FICO Scores

The team at Gustan Cho Associates knows how to handle tough files. A large percentage of our clients are folks who have credit scores down to 500 FICO. Many are homebuyers we approved for FHA and VA loans during the Chapter 13 Bankruptcy repayment plan. We can do VA loans with over a 60% debt-to-income ratio. We can overlook outstanding collection and charged-off accounts and get borrowers approved. Over 75% of our borrowers are folks who either got denied for a mortgage or could not qualify at other mortgage companies due to their lender overlays.

Last Minute Mortgage Loan Denial By Lenders

At Gustan Cho Associates, there is no such thing as a last-minute loan denial or stress during the mortgage process at Gustan Cho Associates. All of our pre-approvals not just close, but close on time. The team at Gustan Cho Associates are specialists and experts in helping borrowers with bad credit. We can help borrowers with credit scores down to 500 FICO scores, late payments in the past 12 months, outstanding collections/charged-off accounts, high debt to income ratio, late payments after bankruptcy and/or foreclosure, and manual underwriting.

Shopping For Mortgage Rates With Bad Credit

You can shop for a mortgage with bad credit. Just because you have bad credit does not mean you cannot shop for mortgage rates. Most mortgage companies have lender overlays. Gustan Cho Associates is developing a national reputation for being a one-stop mortgage shop. The team at Gustan Cho Associates are not just experts on FHA, VA, USDA, and conventional loans, but we have alternative loan programs. Some of our popular alternative loan programs include non-QM loans, DSCR, bank statement loans, no-Doc mortgages, asset-depletion loans, and dozens of owner-occupant, second homes, investment property, and commercial loans.

APPLY FOR HOME LOAN WITH BAD CREDIT

Non-QM Loans With No-Income Documentation

Gustan Cho Associates offers specialty alternative mortgages with no income documentation required. Besides having zero lender overlays on FHA, VA, USDA, and conventional loans, we have dozens of non-QM wholesale lending relationships with non-QM and alternative mortgage lending partners. The team at Gustan Cho Associates is available 7 days a week, on evenings, weekends, and holidays. Our borrowers have access to their loan officers 7 days a week via cell phone, text, or email.

Best Lenders Able To Approve Mortgages Other Lenders Can’t

Over 75% of our borrowers at Gustan Cho Associates are folks who either have gotten a last-minute mortgage loan denial or are stressing over the mortgage process with their current lender and are about to get denied. The team at Gustan Cho Associates can help you in transferring your loan to us from a different lender.  Our support operations and licensed personnel will help you with continuing your mortgage process.  Gustan Cho Associates will close not just close your loan but will close it on time. Most loan officers, in general, do not know how to do tough loans that our loan officers at Gustan Cho Associates can do. If you get qualified and pre-approved by one of our loan officers, you can rest assured your loan will close.

Home Loans With Collection Accounts

A third of our borrowers are folks who have credit scores under 600 FICO and are manual underwriting. Over 75% of our clients are borrowers who could not qualify at other lenders due to stress during the mortgage process, last-minute mortgage loan denial, or because the lender did not offer the loan product the borrower needed. If there is a mortgage product in today’s market, you can bet on Gustan Cho Associates offering it.

One-Stop Mortgage Broker Shop For Non-Prime Loans

Due to our lending partnership with over 170 wholesale mortgage lending partners, Gustan Cho Associates has a national reputation of being a one-stop mortgage shop. We have every mortgage loan program in today’s market for owner-occupant homes, second homes, investment properties, and commercial loan programs. Due to the strong demand for our product and services, Gustan Cho Associates is licensed in 48 states including Puerto Rico and Washington DC (Not yet licensed in NY, MA). Gustan Cho Associates has a national reputation for being able to get loans approved on the loan that other lenders cannot do. Any mortgage loan program that is available in today’s marketplace, no need to look any further. If there is an alternative mortgage loan program in the marketplace, the chances are Gustan Cho Associates Mortgage will have it.

Why is Gustan Cho Associates Different Than Other Lenders? States, Products, Rates

In general, the overview of why is Gustan Cho Associates different than other lenders is because we have the states, the mortgage products, and the best rates. Very simple: Gustan Cho Associates empowered by NEXA Mortgage, LLC  is available 7 days a week. We are proud to have lending partnerships with over 160 wholesale lenders for owner-occupant homes, second homes, investment properties, and commercial loans. Besides the best of the best customer service you will experience, the following three factors along with AAA service should answer the question of why is Gustan Cho Associates different than other lenders.

  1. States ( Licensed in 48 States including Puerto Rico, NOT LICENSED IN NY, MA)
  2. Products ( Lending partnership with over 160 wholesale lenders )
  3. Rates ( We are based on a broker business platform – Broker rates )

Team Gustan Cho Associates Available 7 Days a Week

Another reason why Gustan Cho Associates is different than other lenders is because of our business model. It is the people that make the company. One rotten apple destroys an organization. Our vetting process is very intense. All our staff at Gustan Cho Associates have no bosses nor does anyone ever pull rank. We refer to each other as “Associates”.

Shopping With For Best Mortgage Rates?

Why Gustan Cho Associates is different than other lenders is because we not only get you approved with bad credit, but we strive to get you the best rates. Homebuyers with bad credit are not limited to just going along with the first offer they get. Borrowers with bad credit can shop for the best rates and terms. Lenders for bad credit have rates that are different from other lenders. The team at Gustan Cho Associates highly recommends homebuyers with bad credit shop for the best rates by shopping among different bad credit mortgage lenders.

Are All Mortgage Lenders The Same on Rates and Terms?

One of the reasons why Gustan Cho Associates is different than other lenders is because we try not to charge discount points for borrowers with low rates. The team at Gustan Cho Associates has a unanimous common belief and mission: Our borrower’s best interest is our top priority. From the borrower’s direct contact with the loan officer, loan officer assistant, processing assistants, processors, ops, support staff, and third-party professionals have the best interest of our borrowers. Our business model is our borrowers come first and the client is always right.

The team at Gustan Cho Associates strive to be the best of the best in service, having a wide variety of mortgage loan program, having the best product for the borrower, and rates. We make sure borrowers have access to our loan officers 7 days a week. This makes why Gustan Cho Associates is different than other lenders. This blog on Are All Mortgage Lenders The Same Was UPDATED On August 14th, 2022

NO STRESS MORTGAGE PROCESS