“Even though the retail is the majority, it’s the minority, because they’re so broken and compartmentalized,” Sloan told Mortgage Professional America. “It’s just different, little hidden areas. They just don’t even know what we know as brokers. We’re with 120 plus lenders, and all of them have their unique guidelines, and they all have a special product that we can leverage to help somebody who was told no by a lot of people.”
Sloan gave an example of a recent client who a big bank told that they would have to pay off a sizeable debt before closing, and would be limited to a smaller VA loan.
“There was this person that I just helped close on a home, who was told by a big bank that they would have to pay off $25,000 in debt, and that their max purchase price would be $350,000,” Sloan said. “And they would have to bring closing costs, which would be like $20,000. They ended up closing on a $575,000 home, with total cash to close of $10,000.
“But the loan officer at the bank told her things like, ‘The VA is very strict with credit. You have to have a 620 credit score minimum.’ Because that’s what the bank had as their overlay.”
Concerned that so many are misinformed
Sloan wondered how many other borrowers may be misinformed about their options and either end up with a worse loan or no loan at all.
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