You've been tethered to your local bank for what feels like an eternity – two decades of diligently stowing away your hard-earned funds and engaging in polite banter with the same familiar banker who even remembers the name of your loyal canine companion.
You might have assumed, "Well, they know me here. Surely, I'll receive the VIP treatment when I need a home loan." But wait, pump the brakes, because they might not be the ideal choice after all!
WHY BANKS MAY TURN DOWN YOUR LOAN WHILE A LOCAL MORTGAGE COMPANY MIGHT NOT
Your local bank might raise concerns about your credit scores, debt-to-income ratios, or the completeness of your documentation. Changes in your financial situation, such as switching jobs or engaging in unusual banking transactions, could also trigger hesitation and result in a loan denial.
Banks offer a buffet of financial services, with mortgage loans just a small side dish, subject to oversight by the Federal Deposit Insurance Corporation (FDIC). While this ensures compliance with federal regulations, it may also mean more stringent lending criteria that could put a damper on your plans.
On the flip side, local mortgage companies, governed by state regulations, often provide a more varied menu of loan options tailored to different borrower profiles. With access to a wider range of loan programs, they can accommodate individuals who don't fit the standard mold. Mortgage companies tend to be more forgiving when it comes to credit scores, income thresholds, and property specifications, making them a preferable option for those encountering obstacles with traditional banks.
Furthermore, mortgage specialists at these companies undergo rigorous training and must pass state and national exams, unlike their counterparts at banks.
Additionally, since mortgage companies focus exclusively on home loans, their operations are more streamlined, often resulting in quicker approvals.
It may be time to bid adieu to the traditional banking route and explore the offerings of a local mortgage company that truly understands your needs.
Need assistance navigating the loan landscape in the Des Moines Metro area? Fear not! I've compiled a list of local lenders who are as reliable as they come and eager to assist you on your journey.
Simply sign up here for a consultation – no strings attached, just good old-fashioned honest guidance – and together, we'll work towards securing your dream home.
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