The fully automated mortgage?
Don't fall for the hype!
There are currently massive marketing campaigns by several mortgage providers in the country touting the quick and easy mortgage, but don’t believe everything you hear. While the mortgage process has become easier over the last few years due to technology, it’s still a tough process and no lender out there is immune to the difficulty a borrower has to endure when applying for a home loan.
The industry has had automated underwriting for years. Your mortgage originator puts a complete loan package together for you, uploads the electronic file to Fannie Mae and your approval is issued instantaneously. That’s nothing new since we’ve been doing that for many, many years. But Fannie Mae guidelines are very strict, so a human underwriter then needs to go over the entire file looking for anything that needs further explanation and this is when loan conditions start to be issued.
Some of which include:
- Verification(s) of employment
- Letter of explanation(s) (recent credit inquiries, past bankruptcy etc.)
- Source of recent deposits into a bank account
- Revisions to the appraisal
These are just a few examples of what can and will come up and must be addressed. Current mortgage ads are attempting to minimize all of this and claiming to have invented a “better mousetrap” for our industry, but it's doomed to failure. I suggest you Google a few Yelp reviews from consumers who have tried their services and get the real story. The only way to minimize the difficulty of the process is by hiring a qualified loan originator that knows the craft and knows how to anticipate everything that will be required up front. The main goal is do a proper submission in the first place so that the underwriter will ask for very little after submission. Simply completing one of these online gimmicks, hitting send and getting an instant approval is simply snake oil sales at its worst.
With that said, America’s Home Loans has been providing a streamlined mortgage process for years, complete with:
- Online application
- Electronic signatures so you don’t have to sign a stack of paperwork
- Automated underwriting—we can issue a pre-approval very quickly
- An app for your smartphone so you can track the progress of your loan
- Electronic document transfer for items like paystubs, W2s etc.
- But, above all, a competent human overseeing the process for you so that your mortgage transaction is handled quickly and efficiently. Oh, and always there to take your call when you need to speak to a live person
Again, don't fall for the hype. Do your research and review the lender or mortgage broker you are considering using. We believe in offering our customers our version of the automated process, or the old fashioned come on in and meet us face to face approach. With either style, you will never get an auto attendant on the phone when you have a need to speak to someone directly — that's just not our style.