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Recent Mortgage Changes Catching Buyers by Surprise

I have been getting a lot of phone calls lately from Charlotte area real estate agents and salespeople. It seems that they have been seeing a lot of mortgage approvals getting denied! What in the world is going on?

One of the most common concerns has to do with big local banks, such as Bank of America and Wachovia. Because these are such big banks in Charlotte, many Realtors and sales people have just sent their clients to them. The problem is that large banks like Bank of America only offer Bank of America mortgage products. So when they make changes to their own mortgage loan products, it becomes a “yes or no” decision, not a “let’s move it to another program” decision.

Case in point… Joe was approved to buy his first home using a Charlotte FHA mortgage loan from one of these big banks. We’ll call them “Big Bank USA.” Joe didn’t have the best credit in the world, but it was enough to get approved to buy a home in Charlotte. When the approval came from Big Bank USA, Joe was excited to be able to buy his first home! But then, half way through the processing of his mortgage loan, something changed. Big Bank USA changed their underwriting criteria and implemented a credit score requirement that was above what Joe had. All of the sudden this approval was turned down.

Since Big Bank USA is only a bank, they had no other FHA mortgage programs to turn to. However, Joe’s loan is now with the Carolina Mortgage Connection. With the multiple lenders and programs available to us, we are working to place Joe’s loan with a viable lender and get it closed! If Joe had started his loan process with us, we would have been able to move things around a lot faster and easier.

The moral of the story is that big banks have far less flexibilty. The Carolina Mortgage Connection is part of Residential Mortgage Center in Charlotte, NC and operates under a Lender’s license in North Carolina. While we can make mortgage loan decisions using our own money, we still have the ability to broker and close mortgage loans with other wholesale lenders, giving us far greater flexibility and adaptability than your conventional banks. And with great low mortgage rates that rival Charlotte area banks, the Carolina Mortgage Connection will quickly become your most trusted source for mortgage loans in the Charlotte area.