Been Turned Down For A VA Loans? Need A VA Lender Who Cares?
This BLOG On Need A VA Lender Who Cares Has Been Written By Joe DeMarco, Branch Manager Of CrossCountry Mortgage
Turned down for a mortgage and you’re a Veteran of the United States Armed Forces? It’s probably not YOU. My name is Joe DeMarco, I am the branch manager of The Joe DeMarco Team at CrossCountry Mortgage and a veteran of the U.S. Military myself, a former E3of The United States Marine Corps. I have been helping Veterans and other families since 1997 purchase their homes, and many of them have been declined for a mortgage by other lenders. Borrowers get declined for many different factors.
Reasons Why Veterans Get Turned Down For VA Loans
Here are 5 reasons why this typically happens:
- Your Mortgage Loan Originator (MLO) doesn’t have the experience and knowledge on how to properly present your VA loan application for an underwriter’s approval.
- The Lender you have chosen has put additional guideline overlays on their underwriting process because they have decided that the actual VA guidelines for home loans is too “Risky” for their institution. Most lenders do have overlays on VA Loans.
- The veteran borrower has not properly educated him/her self on what is available to them for being a Veteran of the Armed Forces.
- The Mortgage Loan Originator or Lender is not interested in building a long-term relationship with you, and are simply trying to make a quick commission.
- You need a little guidance on how to position yourself today to be in a position to buy a home in the next 3 – 6 months, and your current lender doesn’t know how to help.
My team, at The Joe DeMarco Team at CrossCountry Mortgage is built on a code: “We put our customer’s needs and interests before ours, and our relationships with our borrowers is built on trust and a commitment to the long term.” Unfortunately, the statements above are true. The challenge is for the borrower to find a Mortgage Loan Originator and a Lender that will provide you with the proper information, guide you through the lending process, and continue to follow up after you have bought your home to offer you options in the future as your life changes. The VA is continuously creating and changing programs for Veterans when it comes to home lending, and many of these changes may benefit you in the future. Now, let’s discuss these reasons that may have caused you to be denied a mortgage.
Benefits Of VA Loans
VA loans do not have the same restrictions as conventional loan products, and were created as a benefit to those who have served our country. Just because you are working with a Mortgage Loan Originator, doesn’t mean that they are experienced in VA lending. Again, with a VA loan being much more flexible than other loan products, you might find yourself working with an MLO that does not understand that many of the guidelines that are typical in home lending do not apply to a VA loan.
VA Loans Versus Other Loan Programs
Loan products are very different from each other, and having extensive experience in each one takes years to master. You wouldn’t go to a plastic surgeon to have your appendix removed. Lending is complex, and how your loan is presented to underwriting in many instances is the difference between an approval or a decline. An experienced MLO presents you to an underwriter in a way that clearly addresses all components of your current and past situation where the underwriter has no question about your ability to re-pay the loan. If there is any confusion in the way a loan application has been presented, it typically leads to additional questions and concerns about lending you money for a home. It’s a business run by humans, and you need a professional that can navigate all that this entails.
Not All VA Lenders Are Created Equally
Not all lenders are the same. Big Box Banks do not offer more solutions to their borrowers than privately owned mortgage bankers. It is incredibly difficult to understand all the differences in lending institutions, and they all have different philosophies when it comes to lending. The VA issues lending guidelines of what they consider an acceptable borrower, and the lender can decide if they are going to follow those guidelines, or add guidelines that they feel would provide a “safer” loan than what the VA has outlined. This is called an “overlay.” When speaking with your MLO, ask them if their lending institution imposes “overlays” on their VA guidelines. This is an easy way for you to quickly figure out if you’re with the right group. Many times, when a Veteran is turned down for a loan by a lender with overlays, they believe it’s them who does not qualify for the loan. What that lending institution is not telling you is that you can in fact get a loan, just not with their company.
VA Lender Overlays: The Joe DeMarco Team At CrossCountry Versus Other Lenders
What’s worse is when a Big Box Bank with a name tells a Veteran that they do not qualify, that really makes the borrower believe that they can’t get a loan. Most Big Banks have significant overlays, as they feel that many loans that are sanctioned by the VA are too “risky” for their company. Don’t believe everything you are told. Did you know that I can get a Veteran a loan with a 580 score, no money down, and closing costs can be covered in a couple of different ways? My group at The Joe DeMarco Team at CrossCountry Mortgage are required to be experts in VA lending, as we will help all Veteran’s that want to buy a home. Information is power, and I want you to be a powerful borrower.
With much of what we have discussed, I think you can begin to understand that educating yourself before you apply for a mortgage is extremely important. You must know what lending options are available to you, find an experienced MLO that knows the product, and realize that lending institutions are going to have different opinions on lending. If you take the time to research and find a team that will inform you rather than sell you, the chance of owning a home goes up.
Need A VA Lender Who Cares? We Are Available 7 Days A Week
The Joe DeMarco Team At CrossCountry Mortgage knows that the mortgage process can be stressful when it does not need to be. Joe DeMarco and partner John LaGrassa are extremely selective in hiring our loan officers. We respect our borrowers and there is no other compliment than having a borrower trust The Joe DeMarco Team at CrossCountry Mortgage in giving us the faith and confidence in relying on us to close their home loan. The Joe DeMarco Team at CrossCountry Mortgage take the trust our borrowers give us with honor and that is why we are available 7 days a week, evenings, weekends, and holidays. Most lending companies are only concerned with commissions and the bottom line. We call these groups “hit and run” companies. They are built to close as many loans as possible in a given month, and your financial future has no significance in how you are being directed. A quick commission, and their off to the next victim. If you begin to ask questions, or speak with other lenders to verify that they are offering you a good deal, they typically become uninterested in helping you further. Or you might be in a situation where you’re not ready to buy today, and the communication seems to come to an abrupt end. You need to work with a group that is interested in a long-term relationship that provides you with information and patience. Kicking tiers and taking your time in buying a home is the best way to approach this process, and you need a lender that’s going to be with you every step of the way.
Need A VA Lender Who Cares? Read On
If you present this thought process to a “hit and run” lender, they will quickly turn you away as they “don’t want to waste their time.”
- Not everyone is ready to buy a home today.
- You might need time to get your employment situation settled.
- You might need some guidance on your current credit challenges, and how to improve you scores.
- You might need time to save a little money.
- The best thing you can do is find an MLO and Lender that will help guide you in getting ready to buy a home.
- Just because you might not qualify today for a loan, doesn’t mean that my team can’t help you be ready in 3 -6 months.
- How can you put yourself in a position to buy a home, when you’re not properly informed on what is required to get approved?
- That’s where a team like mine can be very beneficial to a borrower that needs information and a road map on what you need to do in preparation for applying for a mortgage.
- Many MLO’s and Lenders will simply decline your loan application with no recommendations on what to do next.
- They are not trained in helping borrowers, or just are not interested in building a relationship.
- These situations happen to thousands of borrowers every month, and many of them give up on the idea of buying a new home.
- Get informed, find an MLO and a Lender that will provide you with proper support, and own the home that you deserve.
- Let me and my team of experts assist you in your quest to buy a home, and make sure that you have continued support in all your future needs.
About The Author Of Need A VA Lender Who Cares? Joseph DeMarco
Like to thank Joseph DeMarco of The Joe DeMarco Team at CrossCountry Mortgage for writing this BLOG on Need A VA Lender Who Cares? Joe DeMarco is a one of a kind manager who runs a tight ship and expects perfection by both his licensed and support branch personnel. Here are Joseph DeMarco’s principles and how he runs his growing top producing branch of CrossCountry Mortgage:
- Borrower is always right. There are no two sides of the story.
- Loan officers are professionals who have more responsibilities than any other professionals. Our borrowers rely on us to not just to get their home loan closed but closed on time.
- Not just the borrowers who depend and count on The Joe DeMarco Team at CrossCountry. It is the home sellers, realtors, attorneys, and families of both the buyers and sellers.
- 70% of our borrowers are borrowers who have either gotten a last minute loan denial or are going through major stress during the loan process. There is only one reason and one reason only for a borrower to get a last minute mortgage loan denial or stress during the loan process: IT IS BECAUSE THE LOAN OFFICER DID NOT PROPERLY QUALIFY THE BORROWER.
- There is no reason why a pre-approved borrower should not close their loan. Not just to close their loan, but close their loan on time.
If you have any questions on any loan scenario or are going through a stressful loan process, please do not hesitate to contact The Joe DeMarco Team at CrossCountry Mortgage at 1-800-900-8569 or email us at firstname.lastname@example.org. The Joe DeMarco Team at CrossCountry Mortgage is here to serve our Veterans and other borrowers 7 days a week, evenings, weekends, and holidays like our Veterans served our country. For faster response, you can text Gustan Cho on his cell at 1-262-716-8151.