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Rates are flat today. Today’s rates with no lender fees are 3.375% APR on a 30 year, 2.75% APR on a 15 year and 2.75% APR on a 10 year. (click here for details)

Today’s topic is – The problem loan. I’m sure you are aware by now that even the cleanest loan out there can have its issues going through underwriting. But there are situations where it’s pretty easy to identify the fact a specific loan scenario will require extra work and a lot of extra documentation.
Check it out in today’s video:

So if your not feeling the love from your originator at the time of application you might just be in one of these categories.
1. Self employed borrowers – The simple truth is that some self employed borrowers don’t always tell the truth about their income and the tax returns can be very complex depending on the situation. This can cause some major issues in underwriting if everyone isn’t on the same page.
2. Lots of rental properties – This can cause an issue due to all the rental contracts, complex tax returns and the number of properties each investor will actually allow you to finance. It’s very important to have all your documentation in order if you have a bunch of rental properties.
3. High debt to income ratio loans. – The smallest change in your DTI can disqualify the loan.
4. Low loan amounts – A 50k loan has the same issue as the 300k loan. With every lender working at capacity right now your small loan amount may not get the attention it deserves.
Now these are just some examples of situations that could make your loan less than desirable to some loan originators. HOWEVER – This may be true for some but NOT all. There are many originators willing to take on these types of loans. Remember – Not all lenders are created equal. If your not getting the love you think you need, keep shopping for a new lender.
If you thought this was good information or worth discussing, help me bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter.
Let’s change the way people shop for a mortgage…forever!
– Mike
PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below.

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