Did you know there are over 400,000 individuals employed in the mortgage banking and brokerage industries? Considering how difficult it is to pass the Nationwide Multistate Licensing System mortgage loans originator exam, that’s a lot of people! Mortgage consultants face many daily challenges in their quest to help people fulfill their dreams of owning real estate. But what are their biggest challenges, and how do they overcome them?

Here’s a summary of some of the main challenges a licensed mortgage lender faces and how they deal with them.

Refusing Applicants

One of the biggest challenges a mortgage lender faces is turning away an applicant who doesn’t meet the requirements for a home loan. While there are several types of home loans for people from all walks of life, most of them are subject to one or more of the following requirements:

• Credit report showing a minimum credit score above the score required for the loan
• Contact details (including social security details)
• Income statements and/or pay stubs
• Bank statements
• Tax return documents

Refusing an applicant who’s desperate to buy a home but fails to produce the above-mentioned documents can be extremely tough for mortgage consultants. Just imagine denying a single parent or freelancer with student debt the chance to own a home. It’d be a horrible experience!

How Does a Mortgage Broker Overcome This Challenge?

If an applicant has applied for a home loan they’re ineligible for, mortgage brokers tend to notify them as calmly as possible. They also provide recommendations for alternative mortgages the applicant is eligible for.

For instance, freelance photographers who can’t produce W2 forms aren’t likely to land conventional mortgage loans. However, a good mortgage broker will immediately recommend no W2 loans (should their company offer this facility).

Processing Refinance Applications When the National Interest Rate Drops

One of the main reasons why homeowners seek refinancing services is to lower the interest rate on their loans. For instance, if you’re paying 7% APR on your current mortgage and the national interest falls to 6%, you have the right to lower your APR via rate-and-term refinancing.

Unfortunately, a drop in the national interest rate tends to prompt numerous homeowners to seek help from mortgage refinancing services simultaneously. This results in a spike in mortgage brokers’ workloads as they must process countless refinancing applications at once!

How Does a Mortgage Broker Overcome This Challenge?

One of the best ways to overcome this challenge is through teamwork. The best mortgage consultants communicate effectively and cover each other’s weaknesses if they’re ever bogged down with refinancing applications following a cut in the national interest rate.

Another way mortgage brokers overcome this challenge is by monitoring the national economy. The government tends to lower the interest rate to spur economic growth. Therefore, keeping an eye on economic indicators like GNP per capita, GDP per capita, and/or median household disposable income can help mortgage brokers predict interest rate drops and manage their workload.

Safely Storing & Retrieving Client Documents

If you think it’s common for mortgage companies to store physical copies of every bit of paperwork for every client, think again! The advent of technology like cloud-based storage has prompted many mortgage brokers to store their clients’ information online. However, this leaves mortgage lenders susceptible to cybercrimes like fraud and hacking.

Most mortgage loans require applicants to submit documents containing sensitive information such as their contact details, bank transactions, and income. If this falls into the wrong hands, clients can be robbed, blackmailed,and/or have their identities stolen.

How Does a Mortgage Broker Overcome This Challenge?

One way mortgage consultants protect client data is by encrypting it. This method doesn’t stop hackers from trying to obtain sensitive client data, but it does ensure the information can’t be read by criminals.

In addition, mortgage lenders only keep client information with their permission and don’t hold it for longer than they need to. For instance, if you’re a member of the armed forces who has just applied for a VA loan, your personal information is only required to launch the application. Once the application has been processed, the mortgage broker will only keep your information on their servers with your permission.

Therefore, if you’re thinking of taking out mortgage loans and want to protect your data, it’s worth asking the mortgage broker how they’ll handle your information after the application is processed.

Atlantic Home Capital’s Team Has the Qualifications and Experience to Overcome Key Challenges Faced by Mortgage Consultants

Struggling to find a team of talented mortgage consultants with several decades of experience between them? If so, it’s time to reach out to our team at Atlantic Home Capital!

Every mortgage broker on our team has a valid MLO license and prioritizes customer care above all else. Some of our mortgage consultants also speak Spanish, so you can rest assured you’ll receive a great service if you’re a member of the Latin community!

We offer an array of home loans at market-leading rates, such as VA loans for armed forces personnel, no W2 loans for freelancers, and investment property loans for real estate investors. We also provide mixed-use financing for clients aiming to buy mixed-use developments and refinancing services to help clients obtain the best terms possible on their mortgage loans.

If you’re keen to arrange an appointment with one of our expert mortgage consultants, drop us a message today or dial 631-687-3510 to reach our Farmingville, NY office!