This Is A Killer Of Many Loan Approvals…

Good Morning!

I want to talk to you about one of the biggest reasons behind the denial of many mortgage loans.

…The reason is: OVERLAY GUIDELINES.

The mortgage world mostly runs off of automated approvals these days. This is true for conventional loans, FHA loans, VA loans, even USDA loans.

This means we take your loan application and run it through an automated underwriting engine. It will either approve it or it won’t.

However, just because the automated system approved your loan – it doesn’t mean your loan is approved.

…because, once the underwriter gets it he/she likely has a set of “overlay guidelines” that they use to further evaluate your loan. This often results in an overturning of the automated approval. …a denial.

This is particularly true of the big banks because they only have their own guidelines to use. If your loan doesn’t fit in their “box of guidelines” then they don’t have an alternative underwriting office they can send your file to.

Your solution: Use a mortgage company multiple underwriting options.

…and, most important: make sure the mortgage company has at least one or two underwriting options that don’t put “overlay guidelines” on top of the automated findings. This is huge. …and, guess what – I’m your guy on this one.

So, if you’ve had trouble getting approved with Bank of America, Wells Fargo, Chase, etc. …Let me have a look at it. I just might have some good news for you.

Have a good day… And, thanks for reading!

Brett