Haven’t you heard? It’s still a grueling process for borrowers to obtain a mortgage. And the mortgage industry is buried in regulation and compliance requirements that make the process a logistical and paperwork nightmare.
So when it comes to obtaining your mortgage, should you work with a recognized professional and industry leader who can navigate this treacherous industry?
Or are you still thinking of speaking to the salesman at “Your Bank” that your bank teller points to?
Here’s yet another story of someone who chose wrong:
“Ben” owns a home in an exclusive suburb and wanted to refinance into a lower rate. He had excellent credit. He had money in the bank. He had a prestigious position and was earning a salary well into the six figures. And after 11 years with this employer, he decided to take a new position where his income trajectory promised to skyrocket into the seven figures.
“I’ll soon be earning more in a year than the entire amount of my mortgage!” he must have thought to himself. “I’m an excellent credit risk. I can get a mortgage anywhere! But my bank knows me. They’ll give me a good deal.”
Unfortunately, Ben’s mortgage was denied. Perhaps this isn’t shocking to mortgage industry insiders who understand how hyper-conservative mortgage underwriting has become. But to the average American, you may be shocked when you learn that our friend Ben is none other than Ben Bernanke, the former Chairman of the Federal Reserve.
Last month at a conference in Chicago, Mr. Bernanke used his own difficulties refinancing to make a point that mortgage credit may still be tighter than it should be. Bernanke said the housing market “is one area where regulation has not yet got it right.” He continued, saying “it was entirely possible” that lenders and regulators “may have gone too far on mortgage credit conditions.”
Lenders across the country must abide by the strict underwriting standards imposed by Fannie Mae and Freddie Mac, the two government-owned agencies that dominate the mortgage market. Additionally, lenders are under intense pressure from regulators not to take major risks when lending.
Incredibly, even the New York Times is coming around, stating in a recent article, “The old school model of what it means to apply for a mortgage – go down to your local bank and have a loan officer meet with you and try to judge whether you are likely to repay your mortgage – is very much a thing of the past.”
Still think it’s a good idea to speak to that salesperson at “Your Bank?”
In this crazy lending environment, it’s critical that you work with the right people who know what they’re doing and can get the job done. At Mortgage Wealth Advisors, you’ll receive accurate information, valuable advice, and a concierge experience. We’ll ensure your mortgage matches your needs, complements your financial plans, and helps you attain your financial goals.
And guess what? The rates and fees you’ll receive from a competent and qualified mortgage professional are probably about the same as if you went to “Your Bank.”
The big difference? Your loan will actually CLOSE.
 New York Times, October 2, 2014, “Why Ben Bernanke Can’t Refinance His Mortgage,” by Neil Irwin
Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.