What is a Niche Mortgage How Can You Qualify?

A niche mortgage is a specialized loan provided for those who do not meet Fannie Mae/Freddie Mac 'A' paper conventional rules and guidelines. One of the main issues that will determine whether or not you fit into Niche Mortgage Products are credit scores.

Is your Credit Score Accurate?

Before we explore the credit score subject allow me to go off tract a little bit. Some customers contact us to receive a preliminary loan approval over the phone without filling out our Loan Application . It's impossible for us to give a loan approval over a phone call. We would be doing you a disservice as well as jeopardizing company integrity by quoting you a possible approval over the phone. There are just to many unforeseen variables that could affect interest rate, terms and loan product selection during the initial approval process. In order for our mortgage company to give you the service you deserve, a completed Loan Application is necessary.

Need A Good Mortgage Doctor?

As silly as it may sound, here's a good analogy to explain this: Let's pretend for a second you were *a little under the weather* and didn't know why, but you knew what your symptoms were. Would you call up your Doctor to tell him your diagnosis and ask him to prescribe you the medication you think you would need-over the phone? Firstly, the Doctor would direct you to come into the office for a COMPLETE EXAMINATION and secondly he would refuse to prescribe you anything over the phone. What if he misdiagnosed you and seriously harmed you? Not to mention the law suit (s) that would follow?

In comparison, mortgage evaluation is somewhat similar. Analyzing a credit report will allow us to view the COMPLETE picture of your situation. A Completed Loan Application will enable us to verify and EXAMINE pertinent information. Since we represent your best interests we need this information to strategize the best way to present your loan for approval. Now we are able to do an efficient job for you. Unlike some lending institution where the thought process is to examine your loan request for ways to deny you.

How Much Will This Cost Me?

Please realize that we receive a 'fee for service' ONLY if we secure a loan commitment for you. Which means our mortgage company could spend countless hours of initial processing and preparation before we submit your loan for possible approval, (Many attorneys for example, charge an upfront retainer fee for the initial preparation of a case with no guarantees that you will win!) We do not charge upfront processing fees and/or application fees. We have a initial credit report fee that is paid directly to credit reporting agency. We do not receive a penny from that fee.

If we cannot secure you a LOAN APPROVAL WE LOSE MONEY !

Another important note: If we cannot secure a loan commitment for you WE LOSE MONEY for all the initial work done FREE OF CHARGE on your behalf.. That is why it is imperative that you assist us throughout the loan process by supplying us documentation if requested. Once we receive all the information required, our mortgage company will know immediately what plan of action is necessary in order to secure a loan commitment for you.

Well back to credit scores.

All lenders will need to view your three credit scores, which are generated by TRW, CBI, TU. If your middle score is below 620, most likely you will not qualify for an 'A' paper mortgage. Now there are always exceptions to the rules and compensating factors that would qualify you for a 'A' paper loan. Mortgages with sensible compensating factors are approved on a case-by-case scenario and require a manual underwriter review.

Once we have determined your true middle credit score, we can start putting the pieces of the puzzle together? This can only be done if we request your credit reports from all three repositories. Many times clients give us their credit score (s) over the phone from other lenders. We cannot use those scores or even that credit report. For compliance reasons the credit report has to be in our companies name and we need all three scores to be current. Also, your credit report scores can change on a daily basis. We need to work with accurate current information. Sometimes a credit report will come back with various inaccuracies where the borrower had no idea they existed. In this type of situation we have to order what is called a 'Full Factual Credit Report.' Every creditor is manually contacted and all figures are verified. This is one of many little tricks we use to help increase your credit scores..

Believe it or not?

Believe it or not this is just the beginning of the loan process. We now have your Loan Application, credit scores and gathered the initial paperwork needed. Next we discover potential obstacles and try to solve them. This can be a complicated process since there are always many unforeseen obstacles. We analyze the borrower (s) and the property for potential obstacles. At this point if we feel we are 99.99% sure that we can secure a loan commitment and that our client is agreeable to the interest rate and terms, then and only then will we proceed to step 2.

Bookmark our site for Step 2 and many other valuable tips and mortgage strategies that we will offer in the future.

The purpose of this initial article is to give you a little more insight as to what really goes on behind the scenes and to help you understand the basic qualifications for Niche Mortgages.

This article is designed to provide topical information. It should be used as a supplement with other information researched by the viewer. This article has been given free of charge with the understanding that the author and publisher are not engaged in rendering legal, accounting, or other professional services to any person. Viewer will hold Rateseekers.com harmless from any and all conflicts that may arise from viewers use of this information. If legal advice and/or other expert assistance are required, the service of a competent professional should be sought.

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