Just because FHA, or Fannie Mae allows for something in their guidelines doesn’t mean your current mortgage company will allow it. Many mortgage companies have their own overlay guidelines. These overlay guidelines go on top of the basic loan guidelines.
Overlay guidelines are restrictive, more conservative, and can prevent you from being approved for a mortgage.
If your loan officer runs up against a road block on your loan – whether it’s re-strictive guidelines, or an underwriter that doesn’t like your file, your loan officer had better have another option.
If they just work for a small local bank, or work for one of the big banks (like Wells, or Bank of America) they likely won’t have another option.
If your loan doesn’t fit into their box then you are just out of luck.
Make sure you use a mortgage company that has more than one underwriting option. I know with Berkshire we are both a bank and a broker. If our own bank can’t do the loan we have multiple other options on where to best place your loan to get an approval! …and, that’s what you want.
That’s it for today!
Thanks for reading!