Is it the lender or me that is causing the issues? Well there are many different types of lenders, banks and mortgage brokerages. Each one has a different type of niche or type of borrower/ loan they prefer to work with and, yet some are just plan cookie cutter (generic). Probably it is a little of both!
What is hard for many people to understand is that its just as much about the lender as it is about the buyer. A buyer with an 800 plus credit score, who is a W2 employee and applying for a loan amount over $250,000 can pretty much pick who ever they would like to work with and really shop out the best rate.
A self-employed individual with two or more companies and multiple properties with a loan amount under $250,000 and a credit score in the 600’s is not likely going to have an easy time shopping rates and would rather spend more time searching for someone to get their loan done on time. This type of buyer is the more complex borrower to work with. This type of buyer tends to be more problematic and less cooperative throughout the process.
All lenders really enjoy the easy files. Files that are from the people with great credit scores, large down payments and a solid, consistent income. Starting with the loan originator, the assembling of the file is less complex and much easier to work with. These files always fly through underwriting and its very easy for us loan originators to promote how good we are with our loans.
There are very few of us Loan Originators who can take a tough file and get them closed. There are even fewer of us who take these tough files and get them closed in a short period of time.
Borrowers need to remember that its not just about your credit score, it is about your complete financial back ground. Thinking you’re good to go with a 725-credit score may catch you off-guard and you may find yourself in a frustrating process.
Reviewing your total financial picture before you start to look at homes could save everyone involved with your transaction a lot of time and money. The more parts to your file, the more conditions and problems you could be facing.
If you are asking yourself “Is it the lender or me?” then maybe you should talk to your Loan Originator.
Ask questions, disclose everything, saying you didn’t think we need to know or thinking its none of our business could have just cost you your earnest deposit money and other expenses.
Prepare ahead of time, put together all your financials like you would at tax time. Review them with your loan originator and we will see you at a happy closing table.