In the Our Story tab we mentioned that Mr. Charles is a correspondent lender in Omaha, Nebraska. You may be asking yourself, that is great, but, “what in the world is a correspondent lender?” Great question! What correspondent lenders do is originate mortgage loans with their own funds, but then sell the loan on the secondary mortgage market. Who the correspondent lender aligns their file with is of the upmost importance.
Similar to a broker, who just takes a file to a lender and hands it off, a correspondent lender and the investor work together to make your file come to fruition. This is especially important when it comes to VA loans as not all VA lenders play in the same sand box. Some investors have what is known as overlays and these overlays supersede what the VA says in their lender handbook.
What that means for the consumer is one investor may decline a file whereas another may welcome it with opened arms. That is why our experience is so important to your file. Other lenders may offer flashy interest rates, but if the file never closes, what is the point?