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There’s a lot more to Mortgage Brokers than just Interest Rates

I often get calls that start out by asking the same question: “What are your interest rates?”

It reminds me of the time when a distant relative purchased a home.  I quoted him an interest rate and when I called to follow up to see if he wanted to set up a loan application appointment, he told me that he ended up going with a lender who had a lower rate.

Fast forward 6 weeks later.  The same relative called in a panic.  One week before the scheduled settlement date, you know what happened, right?  His loan had been denied by the other lender due to many existing debts.  The other lender told him there was nothing more he could do.  Case closed.

So, the file was transferred and yes, he had too much debt.  But, by paying off one of the credit cards (yes, he got a gift to help him out), he qualified and settled the loan.

Here’s what I have found when a file gets transferred to me from another broker or a lender:

  • Some brokers/lenders “lowball” the interest rate just to get a loan in the door.
  • Some brokers don’t obtain a credit report BEFORE quoting an interest rate.
  • Some brokers don’t review the file before it goes to an underwriter.
  • Some brokers just don’t know the credit policies of the lenders they write loans for.

I want you to know that at Sherlock “’we are more than just mortgage brokers who quotes interest rates!”