@Anonymous wrote:
Thank you so much for your response! Can you recommend any lenders/banks that I should try? (Or direct me to a thread/post on this site.) I have accounts with Navy Federal and USAA, I was considering maybe one of the two. I have heard that Credit Unions are easier to work with and more lenient.
I love credit unions for auto loans, credit cards, bank accounts, but mortgages, not so much.
I pm'ed you a couple of excellent lenders.
What you want is someone that only originates, underwrites and funds mortgages. Big box banks are very, very conservative now and have changed their process since the mortgage meltdown to "loan officers" that are untrained in the mortgage field. Are all of the big box banks using untrained MLO's - no. But it is hit or miss with the LO that your LO is knowledgeable about mortgage lending and the programs. Why is this an issue? Because they will continue to tell you everything is okay right up until underwriting reviews it and sends out a denial. A knowledgeable LO knows what the criteria is for qualifying and can spot issues to shore up before underwriting.
Many credit unions use third parties to take the loan and provide the processing and underwriting. This is not what they do for auto loans and credit cards - only mortgages. Some are good and some don't even know where the file is (in the process) until the final decision. They move very slowly IME. This doesn't mean that you shouldn't use them, just allow extra time for processing and closing.
I prefer lenders that only do mortgages and not other banking functions especially if they fund their own loans. This way you have someone that processes mortgages day in and day out. Having a LO that knows his/her field is critical to getting the right program for you IMO. A MLO that knows the lender guidelines is such an asset when you are going for a mortgage. IME, these are the lenders that are the most forgiving rather than CU's for mortgages.
