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Finet Pulls Another Loan Out of The Fire

Why are independent mortgage brokers like Finet so valuable? Because we work for our clients, not the bank. Through old-fashioned detective work and elbow grease, we can often solve problems the big banks can’t.

Here’s a case in point: We recently secured a loan for a couple that had been refused a refinance by three major banks. They had good credit and good income, and plenty of savings. But the banks didn’t like their home. Why?

1.     It was on a private road in an area where there were almost no other private roads. Why is that a problem? Because the banks asked the appraiser to show them three nearby similar homes ON PRIVATE ROADS that had sold in the last three months. There weren’t any!

2.     It was a modest older home in a neighborhood where new luxury homes had been built over the past 20 years. To a lender, that means that it was “under-improved” for the neighborhood. The traditional thinking is that such a home would be hard to sell. That may be true in Peoria, but in the Bay Area, people pay top dollar for older homes in wealthy neighborhoods for their upgrade potential.

They had converted their garage to living space without a permit.

It’s likely that 90% of lenders would have rejected their application, and this couple didn’t have the time or energy to go searching for the few banks that would.

But we know how to find the niche lenders that will look at things differently. We identified the lender, sent the application, and received an approval in a few days (and at an excellent rate). Then it was just a matter of getting the lender to accept the property.

But we were not going into it blindly, as many banks do. We discussed the property issues at length with the lenders’ underwriting manager, and got positive feedback before wasting everyone’s time with a dead-end application.

If you know of anyone who has been turned down by a big bank, why not tell them about Finet? We can’t help everybody, but we promise we’ll always give straight answers and experienced advice.

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