INTERNET LENDERS . . .
PROVIDE LITTLE ASSISTANCE TO BORROWERS!
Borrowers are constantly being urged to apply for their home mortgages via
the internet. More and more, borrowers have been disappointed with this method of
acquiring a home loan. Too often, borrowers are surprised toward the end of the
transaction to discover that their loan documents are significantly different
than they thought they had been "promised" over the phone.
It is well known that the internet lenders are seeking the "best"
quality borrowers . . . those with high credit scores, low qualifying ratios
and plenty of "reserves" (money left after Close of Escrow). They
have had little patience for the more marginal buyer.
Internet lenders, for a long time, complained that they were impeded by a
prohibition against revealing credit scores to their borrowers. That has been
changed and internet lenders may now share borrower's scores and what their
"rating" means. In other words, the internet lenders are trying to
"catch up" with what local lenders have been doing for their
borrowers for several years.
Humboldt Home Loans has long been a leader in making sure borrowers
understood the importance of credit scores. The change in the rules allowing us
to provide the borrower a copy of their credit report has made the task
easier. We make sure a borrower
knows their individual credit scores as well as how the score was derived and
what it means to their ability to acquire particular financing. Via this sort
of frank discussion of credit issues, we are able to advise borrowers on steps
to take to improve their credit scores. In many cases, we uncover erroneous
information contained in a credit report and assist the borrower in correcting
the data, thereby improving credit scores.
These are all efforts that internet lenders chose not to do and insisted
that prohibitions from the credit organizations required them to deal with only
the most qualified borrowers. While making a "big issue" of the fact
that they will now reveal the credit scores to their loan customers, there has
been no mention of any assistance program for those borrowers that they will
have to decline because of lower scores.
It is unlikely that internet lenders will be able to counsel individual
borrowers like local lenders routinely do. We review every line of the credit
report, make necessary calls to creditors, write appropriate explanations,
draft letters to the various credit repositories regarding misinformation, etc.
Internet lenders have neither the inclination or the
methods in place to perform this important function for their borrowers. Only
local lenders can provide this "service" on an everyday basis.
There is no denying the anonymity and the ease of applying afforded by
internet lending sources. But, one can't beat the service and personal
attention acquired via a local lender.
Webpage/internet loans