Overlays: Your Worst Enemy

What good are leads if they cannot get approved for a mortgage?

Did you know FHA allows debt-to-income ratios (DTI) above 50%? Many lenders cap their loans’ DTI to 50%, and that is fine. The troubling part is that it is too common for a loan officer to say “FHA” does not allow the DTI, versus the correct statement of “the lender I represent” does not allow that DTI.

In short, a denial at one lender does not equal a denial at the next.

An Overlay Is Your Worst Enemy

Are your buyers getting turned down at pre-approval or during the loan process due to a lender’s overlay (click here for more on overlays)? These are so common that most realtors do not realize the amount of deals they lose as a result of overlays.

An overlay can be a credit score, flip transaction, debt to income, times since a short sale and more. By having more underwriting outlets, we can help you sell more without wondering if an otherwise qualified buyer was denied due to the wrong lender selection.

A Couple Specific Examples of No Overlays

1.         VA does not have any debt-to-income restrictions.
2.         FHA has a low minimum credit-score requirement.

If you want to learn more about how our limited overlay offerings can help you, then give us a call. It’s your first step to selling more homes.

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