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May 25 2022

The Mortgage Broker Advantage

Banks have a very conservative approach to mortgage lending. They have Fannie Mae and Freddie Mac guidelines to meet and oftentimes they also have their own guidelines that they must meet in order to loan out money for a home purchase, build, or refinance. This conservative stance limits the type of borrower that may obtain funding from their institution. Keep in mind that a loan officer at a bank has his own paradigm to work within, so he or she most likely will not have a flexible mindset, which is ok so long as you remember that they have to work within their own parameters.

Mortgage Brokers

Mortgage Brokers, on the other hand, have much more flexibility when it comes to lending. Keep in mind, a mortgage broker has to follow the same Fannie and Freddie guidelines when processing a Conventional loan or government loan, however, other options exist. NON-QM loans (Non-Qualified Mortgages) usually have looser guidelines than the traditional conforming loan. For example, are you self-employed? Did you have a breakout year last year, but a rough year before that? Then a Bank Statement Loan could work great for you. Two years of tax returns may be required, but rather than use a two year average of income, a Bank Statement Loan only looks at the past 12 months of deposits in a bank account. This is a game changer for many individuals and  alleviates a huge burden for proving income and the ability to repay a loan.

This added flexibility usually leads to mortgage brokers going the extra mile to help their customers. So if you’re looking for someone to stand in your corner, definitely search for some mortgage brokers online and start asking them questions. Another rule to keep in mind is that no loan officer may accept any compensation for providing lending assistance until after the loan closes. Because of this, generally all mortgage brokers will be more than happy to speak with you and help answer any questions to get started, because sometimes it’s a long process, especially when purchasing a home in a sellers market.

Buying a Home in Colorado Springs

The housing market in Colorado Springs, Colorado is currently a big time sellers’ market. Historically, El Paso county has averaged about 4,000 homes available on the open market. Currently, the number of available homes has averaged around 300 (written May 2022). Purchasing a home with this limited supply of inventory means you’re facing 20 other buyers every time you place an offer on a home to purchase. Having a mortgage officer in your back pocket helps because they can tell you exactly what the maximum amount of money will fund at closing. Since having a mortgage broker help you with your max financing, all you need to decide on is the monthly mortgage payment.

Juicy Mortgage Solutions in Colorado

Many Juicy Solutions exist to help your specific situation. Laws exist to prevent anyone from taking advantage of the general consumer, which is a good thing, but in the end, you know your budget and ability to borrow money the best, so perhaps it’s time to speak with a mortgage broker with access to other lending options.

Mortgage Solutions: Guidelines

In the next episode, I am going to review guidelines for 3 different loan types. In the meantime, peak around the website and especially check out the download on Loan Program Basics. Remember to sign up for the blog posts as new content and uploads are released weekly that help give understanding buying, refinancing, and funding construction loans.


Funding Juicy Solutions LLC

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