We are happy to review the quotes of other lenders just to let you and your client know if they are getting the best possible financing. We are extremely strong with respect to FHA and Fannie Mae rates because of our many wholesale sources. But we know we cannot win them all. Here are several scenarios we recently reviewed.
I. We were up against HSBC’s “Premier Banking” division. The borrower was very strong with credit scores in the 800s and 20% down. He was looking for a $570,000 loan. The kicker was that he had substantial deposits held at HSBC and they were willing to do anything to keep him happy. We, nor could anybody else, touch the rate they offered, and we were the first to tell him as much.
II. A Realtor called b/c his investor-client could not get a final approval for the purchase of a small investment property. The issue was a slight lack of “seasoned reserves”. We reviewed the file and discovered that the other loan agent had done a masterful job of maximizing credits and manipulating pre-paid interest requirements in order to minimize the reserve requirements. All that needed to be done was to wait for the buyer’s next pay-check and the reserves requirement would be met. Even though our rate was slightly lower, we never would have taken that loan away from the other agent, when, in our opinion, she performed masterfully. There was no reason to start the whole process over.
III. A very strong borrower came to us on Friday with a 55% LTV, cash-out Refinance. Chase Bank was quoting him 5.25% for a “No Points” loan. Our rate for that low loan-to-value loan was 4.875% on Friday, a full 3/8 lower than Chase’s rate. The borrower opted to go with us, for good reason.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167