Should You Apply With a Bank or a Broker For Your Next Mortgage? Part 2
Imagine you are buying your next home and you have a 30 day closing period written into your contract. All is going well and you’re glad you applied through the bank you have your checking and savings accounts with. You remove the loan contingency when the bank (conditionally) approves your loan and all is going well.
And then it happens: your banker informs you they can’t go forward. There’s a million reasons why this could (and frequently does) happen, but now you are scrambling. You have ten days to close the loan and you have to go from bank to bank explaining the issue that came up. None of them will give you a definitive answer as to whether the deal will fly with them. All they say is: “I suggest you apply but ultimately it is up to the underwriter”. And you can’t just give them copies of your last application. You need to sign all 20 or so disclosures with each bank. What a nightmare!
If you’d gone through a broker for your CA home mortgage then life would have been much easier. They can use the same application and disclosure for any lender and they will understand the issues and how to explain them to another lender much more clearly than you can. There may be some scrambling involved but not nearly as much and when your loan does close you will love that loan officer forever!
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Questions about California home mortgages? Want an interest rate quote? Call me on 925.951.8896. I’m here to help you.