Big Bank Denial Rates

Should I take the risk?

If you think getting a mortgage from the same bank who handles your checking account makes sense, think again. A trusted mortgage banker is the way to go. What’s the difference?

A mortgage bank (aka broker) only does mortgages. Their entire focus is only on mortgages. This means they have more experienced loan originators and processors.  They also have their own money to lend, just like the big banks.

Banks expand and contract staffing based on volume and budget needs.  This puts them in a cycle of continually hiring and training.  If your loan originator and processor don’t have the experience (in the industry or at that bank), it puts your dream home at risk.

Banks are not in the residential lending business – that is not where they make their money.  Banks are required to lend to serve the community.

Ever see lower rates at a bank?  That is because they run specials to get business and meet goals.  Know what that special will cost if they miss the closing date and you have to pay to extend the rate or lose the contracted home?  The frustration alone is intangible.  In the end, you get what you pay for.

Mortgage banks/brokers only do mortgages.  Everyone in the company is working at that one thing.  Plus you will get the best market product and rate, because they are able to shop dozens investors for you.  Many times a loan that is denied by a bank can be approved by a mortgage broker bank.

How does your bank measure up?

banks deny mortgage loansData source:  Federal Financial Institutions Examination Council, 2013