Teaching an old dog some new tricks. Okay, I am not willing to concede that I am an old dog, However, I am willing and motivated to explore new revelations in the lending process.
In a typical mortgage/real estate transaction the consumer meets with the mortgage professional, who in turn takes an application and runs an automated underwriting (DU or LP) of the file. The “approved” file is then sent to the processor...who will, in turn, do a “mini-underwrite” of the file and ask for more explanation or documentation. Only after the processor is satisfied will the file be forwarded to the REAL decision maker (underwriter) on the file.
The problem with the traditional mortgage process is two fold:
1). Simply put: Garbage in, garbage out! In other words, an approval on automated underwriting means nothing if the data entered does not conform and comply with lending guidelines. Much like a “pre-qual”, the AU (automated underwriting) is as good as the knowledge and education of the person rendering the decision.
2). TBD (to be determined) properties have absolutely no clout in the underwriting process. The vast majority of lenders have reeled in the underwriting process (in an effort to dave money and prevent risk) and, as a result, only thoroughly underwrite applications with a designated property and a executed contract.
THE SOLUTION: Provide complete underwriting of the credit package of every potential home buyer.
This is simply a “reverse” process (not to be confused with a reverse mortgage or HECM). I (or my team member) meets with the client to evaluate the goals and guideline restrictions; the file is input and submitted directly to the underwriter; the approval is issued subject to conditions and the file is then forwarded to a processor for “processing”.
In my 20 plus years of finance I have never seen a company implement a process that was more consumer and agent “centric”. As the saying goes: “My jaw dropped”!
Want to see the difference this process can make in your life? Give me a call or send me an email.
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Deborah "Dee Dee" Garvin
NMLS #279125
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I am continuing to build my team of mortgage professionals. Please contact me to discuss how New American Mortgage and I can help you thrive in the mortgage industry. NMLS license and/or the ability to obtain one is necessary.
If you are looking for answers and creativity to accomplish your home buying goals and financial stability, contact me for a thorough analysis of your current and future home buying and refinance opportunities. FHA, VA, renovation expert, HUD Certified First Time Homebuyer Certified Mortgage Banker.
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Good morning, Deborah, I thought TBD meant the home buyers were as good as gold.
Sounds like a plan. I know I am always leary of certain banks pre-qual letters. I have been screwed over more than once.
Pamela, Don't we wish???? LOL!
Gene: First time home buyers, more restrictive underwriting guides AND investor overlays are enough to give me the willy's. I want a full underwrite on my files (and I think I know a thing or two about lending...as an agent, you NEED a real preapproval).