Updated: May 15, 2018
Some Online Lenders and Call Center Mortgage Companies Are Once Again Back to Lazy Practices Causing Damage to even Veteran Borrowers.
We've all seen and heard about the checklist when applying for a home loan or refinance loan such as gathering your last 2 years of tax returns and most recent paycheck stubs etc. There is plenty of information out there to help you understand what to gather, where to get it, and why its needed.
Today we are sharing with you the 2 most common mistakes we see when borrowers are applying for refinance loans. We believe avoiding these mistakes can make a big difference for anyone looking to refinance. Over the course of the last year we have encountered many borrowers, including veterans, that were under the impression they didn't qualify for a loan based on previous conversations with an Online Lender or Call Center Mortgage Company. We discovered there was two specific parts of their loan application that was not carefully reviewed causing the application to be denied. Taking a closer look it was clear these borrowers did qualify! We are going to focus on those two most common mistakes and hope this will allow more homeowners to qualify even if its with another lender. Its just part of who we are and what we stand for.
COMMON MISTAKE #1-A LENDER LOW BALLING YOUR APPRAISED VALUE.
Many borrowers calling into Online Lenders or Call Center Mortgage Companies were under the impression that because the company appeared to be large or reputable that mistakes like this were impossible. We found just the opposite. Many Online lenders and Call Center Mortgage Companies are robotically taking applications, much like during the subprime days. In speaking with borrowers we found that during the application process, nothing more than a Zillow search was done to determine their home value. In many cases they were not even asked what their estimated value was but instead the online lenders and Call Center Mortgage Companies would just "fill in the box" with this Zillow value. Zillow themselves states these online value searches known as "Zestimates" should never be relied upon. These Online Lenders or Call Center Mortgage Companies never probed or asked the appropriate series of questions to help determine the most critical detail of your application, your homes appraised value. Relying on Zillow alone, we found that many borrowers were being turned away because of the perception they didn't have enough equity to qualify. This lazy practice has hurt homeowners giving them the impression they cannot use their equity to pay off debt or handle a life emergency. We are grateful for these homeowners that didn't give up and gave us a chance to help them Zillow isn’t trying to hide the imperfections of its "Zestimates" from consumers, and you can’t expect perfectly accurate estimates from competing sites either. Prices from Zillow should only serve as a broad guideline. Its important to contrast these figures against other sources. A comparable market analysis from a local real estate agent considering even pending sales, surveying the borrower for their own observations of sales, past appraisals and a professional appraisal of the home is the best ways to learn its likely value.
If you have been told "you don't qualify" because of your equity give us a call at Ladera Ranch Home Loans and you will see our process to determine your home value is far more sophisticated and will allow you to maximize your homes equity and value for any reason. 1-877-353-952
COMMON MISTAKE #2-A LENDER NOT REVIEWING YOUR LIABILITIES TO SEE IF THEY ARE REALLY YOURS.
The second mistake we witnessed is Online Lenders or Call Center Mortgage Companies telling a borrower their "Debt to Income Ratio" doesn't qualify without even reviewing the liabilities and in some cases not even running their credit. Guessing at a borrowers ability to qualify should never be OK. The pressure of Online Lenders and Call Center Mortgage Companies to do more loans and even faster has caused this distasteful pattern we have seen emerge recently. The reason it is critical to have your liabilities reviewed is because many times they are either not yours, duplicates or co-signed accounts that can be omitted from your debt to income ratio allowing you to qualify. Is it a little more work for the lender, sure, but this is their job description. Don't allow an Online Lender or Call Center Mortgage Company to deny your loan for "Debt to Income Ratio" without insisting they review your liabilities in detail. You wont believe how many credit reports we see daily that have erroneous information that if addressed properly will make the difference of a borrower qualifying or not. If you are ready to speak with a mortgage company that believes in treating all borrowers fairly and assisting them all achieve their dreams without cutting them short, call Ladera Ranch Home Loans 1-877-353-9527.
If you have been turned down by another lender for any reason, just want to share your story with us,or want to see if you DO qualify, call us today.