You are unique, why isn’t your mortgage?

Authored by: Jason Sharon

No one in America has your exact credit score, credit history, employment, income, and assets.  No one.  After I have closed thousands of loans over a decade, I can confidently say that no two loan applications are the same.  So why in the world do you get the same loan as your neighbor?  Seems silly doesn’t it?  Let’s explore this idea.

Sure, there are some small differences in standard loans, but did you know that you could get significantly different terms by just asking?  Now, I preface this with a caveat, not all loan officers are created equal nor are all lenders.  What do I mean by that?  Some loan officers are just looking for the path of least resistance to get paid.  Some loan officers are looking to get the largest paycheck possible.  Some loan officers are band new and have limited experience.  Some loan officers are just not smart.  Of course, the same things could be said for any occupation, especially in sales.  And just like in any particular occupation, there are the rock stars!  You know the ones.  The people that take the time to listen and care.  The ones that have put in the time over many years to educate themselves.  The professionals that have made mistakes and actually learned from those mistakes.  Those are the loan officers that you want helping you with the biggest investment you will ever make.

What about lenders and investors?  Not all lenders will have investors to buy all loan types or terms.  What does this mean to you?  You need to do one of two things.  Either call around to a dozen lenders, or connect with a rock start mortgage broker.  A mortgage broker is a licenced loan officer that works for you, not the lender.  They should have dozens of investors that they can broker a loan to.  Personally, I have 54 investors.  Some investors are great at VA loans and terrible at investment property loans.  Some investors will allow you to close in a trust, some will not.  Do you have the time to call 54 investors finding out what they do well and what their rates and fees are?  Of course not, that is why you use a mortgage broker.  Just because the loan officer is a broker, it does not mean they are rock stars.  You may have to sift through several brokers to find one that gets you and your unique scenario, and has the capacity and resources to serve you in the manner you deserve.  And for the question you are thinking about asking: yes, the rates and fees will most likely be significantly better from the broker vice a retail loan officer, with a few exceptions.

So back to the original point.  You can have a standard 30 year fixed rate mortgage at the average rate, paying average fees, and have an average loan.  That loan application is normally locked for 30 days or 45 days.  But did you know that a 17 day lock exists and is a lot cheaper than a 30 day lock?  Or you could have a 23 year mortgage, at a below average rate, with no loan fees.  Or what if you plan on only being in the home for five years?  Why not consider a seven year adjustable rate mortgage?  Why is this not talked about?  Because it is a lot more work for the loan officer and a lot less profit for the lender.  Additionally, very few lenders even allow these non-standard terms.  That is where a rock star comes in.

Next time you are shopping for a mortgage ask about off sheet rates, as about non-standard loan terms, ask about no lender fee options.  If that loan officer can not confidently answer those questions, call the next one.  Don’t let your unique financial situation settle for a standard average loan.

Author bio: Jason Sharon, NMLS 1281448, is the broker owner of Home Loans Inc NMLS 1728740.  An equal opportunity lender based in Charleston SC but licensed in multiple states.  Retired Naval Officer, follower, husband, father, and friend.