Are Big Box Lenders are Failing Homebuyers?
Changing the Game?
Big box lenders are those companies that advertise on television and radio with claims about how quick and easy they are going to make the home loan approval process.
The phrases “instant approval” or “no need to talk to a salesperson” or “talk to 3 lenders – let them compete, you will win” are often thrown around as benefits of applying for a home loan with one of these companies.
These same big box lenders are sinking millions of dollars into advertisements trying to convince consumers that qualifying to borrow hundreds of thousands of dollars is as simple as completing a form and connecting your accounts.
These companies are trying to change the game, but are they are going in the complete opposite direction of what is in the best interest of consumers.
The only game that should be changed is the game of accountability. Not everyone qualifies for the narrow definition of an eligible loan, making it through the technology without human intervention. If you’re part of that 1%, congratulations.
If you’re like the 99% rest of us, your credit profile, or housing history, or income sources can be a bit tricky. In situations where a big box lender says “no”, there is an experienced home loan professional that can get you qualified for that home.
Where Have all the Experts Gone?
Let’s face it, nobody wants to talk to a sales person, period, end of story. However, most people do want to speak to an expert, get help answering questions, and get answers to questions they didn’t know they should be asking.
There is no place for “sales” when making informed decisions about your home financing options, but that’s exactly what big box lenders are doing.
Companies that spend millions of dollars on advertisements do not pay wages that will attract experienced home financing professionals. What we are left with is a low paying position that is incentivized by volume if they want to earn a living wage.
Because of this website, I find myself in the unique position of being asked questions from people all over the Country, usually after they have been misled, let down, turned down, or lied to by a loan officer that was not experienced enough to be discussing financing decisions with consumers.
More often than not, the most shocking examples of inexperience come from “customer service” people that are meant to replace experienced and knowledgable professionals that are experts in their field. The burden of the accuracy of the information lies completely on you, the consumer, to trust and verify that you’re being given good advice.
Experience, the Difference
Some of the strongest evidence that you are dealing with an inexperienced loan officer is if there is a “yes” for every question you ask. If it sounds too good to be true….well, you know the rest of the story.
This seems to be the standard operating procedure for most of these types of experiences. The advertisements say that you don’t need an experienced loan officer, and everything is going along well until you press the “submit” button.
Once you submit your loan inquiry, you now have to follow the exact same underwriting guidelines as every other lender. This is where the wizard is revealed to be a hoax.
These types of automation based, low wage customer service models are great, until there’s a challenge. In order to make sure there are fewer problems, these types of lenders specialize in only certain type of borrower. If you do not meet this lender’s definition of a “good loan”, don’t worry, there are plenty of professionals out there that can do your loan.
A loan denial from this type of lender should be immediately followed up by a second opinion from a more experienced home loan financing specialist. I am constantly surprised how many of these scenarios that can easily be an approval, but were denied by a lender that simply does not have an appetite for your loan.
An experienced loan officer that is an expert in their field will stand out from inexperienced lenders like day and night. The best loan officers are constantly looking up underwriting guidelines, and drawing from past experience to find a solution to your qualifying challenge.
Don’t Take “No” for an Answer
The errors that I see most often are simple, unnecessary mistakes or oversights that will completely change the disposition of your loan approval. I’ve seen just as many loan denials, that actually qualified, as I have loan approvals that did not qualify.
Don’t take “no” for an answer. If a lender tells you that you do not qualify, ask for a specific explanation, and a solution. An experienced loan officer will be able to tell you what the path to a loan approval looks like. Most “no” results, should be “not now” results, with a good explanation.
If you’ve found this article, chances are, you are currently in this situation, and you are looking online for answers, because something doesn’t quite feel right about your experience with the last lender.
Getting Your Questions Answered
All lenders are not created equal. Most of the readers that find this site because they’ve been researching solutions to challenges, and have been told 10 different things by 10 different loan officers.
We’ve created this resource to help you sift through the endless opinions and articles that may, or may not directly answer your question correctly.
There are several ways to ask questions, and get expert opinions on this website.
- Submit a Question: On the bottom of this page, you’ll see a prompt that allows you to ask questions. These questions come directly to me and are answered very quickly.
- Leave a Comment: Below every article is the option to leave a comment or question. We see these comments and questions in real-time and the always answered, usually pretty quickly.
In addition to researching your questions and providing you with expert advice, I can also introduce you to a lender friend that I know has experience with your specific situation and can help.