A real estate transaction and mortgage is personal. The right mortgage, for example, should reflect your goals – both long and short term. A mortgage is certainly not 15 minutes on the web with a completed application and a rate ready to lock. Especially for the self-employed borrower.
In the past weeks, I’ve had multiple questions from Realtors and borrowers asking me about the “quick and easy on-line loan application”. On the face of it, the filling out of the application is relatively quick and it seems to be pretty easy.
The problem is this process can actually be more expensive – and, most importantly, almost never reflects the goals of the borrower.
Source: The Mortgage Reports
Which brings me to the article linked above. Give it a read – it’s a good one. Towards the end of the article, the author discusses the differences in loan underwriting systems. It’s a little bit of “inside baseball”, but one of the key differences between these systems is the need for tax returns. In many cases, one will yield an eligible finding with only one year of tax returns – while the other requires two. The subtle difference in two underwriting programs can be the difference between credit approval and denial.
The point is this, you must have a relationship with a loan officer who knows the subtle details. The subtle details of borrower qualification relative to the borrower’s circumstances can be the difference between getting the loan approved or being denied.
I spend a lot of time working with real estate agents. I want to build profitable relationships with the agents to help them grow their business. Key to these relationships is my ability to know a borrower and find a way to secure funding within the limits of regulation and law. This requires both product knowledge and understanding of borrower needs.