Admin

Big Banks - One Bite at the Apple..

By
Mortgage and Lending with NMLS197757 197757

Mortgage rates feel like they've reached a bottom. The economy continues to show signs of improvement and rates will likely increase as deflationary pressures wain. Don't forget, FHA rates were at 6.5% just 8 months ago... that's 1.5% higher than todays range. They go down slow but they sure come up quickly.

Are you working with a bank or are you working with a mortgage broker. I've worked in both entities. Banks offer very little recourse if a file encounters 'trouble'. With a bank you get a single bite at the underwriting apple. One bank's underwriting overlays may not be the next bank's overlays. By working with a skilled mortgage broker you increase oportunities and options for borrowers. What about fees? A skilled mortgage broker shouldn't be any more expensive than a bank. After reviewing a few bank good faith estimates this week, I can safely say a broker can easily be less expensive.

 

Good News From Gil...

Consumer confidence is up and house price declines have started to subside.
 
A very large lender in the area has been turning away otherwise approvable borrowers, simply because the lender does not offer FHA. Other lenders will decline borrowers because they are undewriting FHA with conventional overlays. Listing agents experiencing deal fallout should ask which bank has pre-approved the buyer/borrower.
Posted by

Gil Kerbashian

(847) 873-7295

Mortgage Banker and Broker to insure the best rates and highest likelyhood of approval

NMLS 1997757

Inland Bank - 50 State Lending

Comments(0)