Does it matter which non-QM lender you go with? Oh yes it does.
You’ve made the decision to learn more about non-QM because you understand more borrowers need it today to qualify for a loan. Now what? Chances are you’ve read a lot about non-QM in mortgage industry news, seen catchy ads, and your phone plus email have been blown up from people claiming to be non-QM experts. What about that AE that brought you doughnuts that one time? Admittedly, doughnuts are tough to follow. However, there is something to keep in mind before you just jump in with any lender – your reputation!
Your reputation is at stake when you broker a loan, especially a non-QM loan. Why? Many times, these borrowers have already been turned away by another lender and are victims of Agency fall-out. The real estate agent is frustrated, the borrower is stressed, and they need someone to save the day. You don’t need to go back with any further delays or bad news. This is why it is imperative to work with an expert and leader in non-QM.
So how do you choose a non-QM lender? Start by checking off boxes that include:
1. Are they focused on non-QM?
More and more lenders say they do non-QM, but do they actually make it a priority? Or are they just dabbling in it? You want to make sure to work with someone who makes non-QM their primary focus.
2. Do they have a customer-first focus?
Are they concerned about providing a smooth customer experience? You want to make sure to work with a lender that utilizes efficient technology along with strong processes designed to ensure a smooth and easy experience.
3. Do they provide a full line-up of non-QM options?
Options that include Bank Statement, Jumbo, No Income Investor Cash Flow, Asset Qualifier, and an option for borrowers with credit events. This will show they understand the full range of options that non-QM loans can provide for borrowers.
4. Can they make exceptions to guidelines autonomously?
Are the lender and end investor affiliated? Or do they have to rely on approval from another investor? Have you ever gotten approval on a specific LTV and had that change once the investor looked at the file? That’s why.
5. Do they have a bank statement review team?
Or would you be responsible for this arduous task? Knowing the income up front helps make sure you know what the borrower can qualify for before loan submission.
6. How often do they update guidelines and reduce rates to remain competitive?
Almost weekly? Non-QM is changing quickly and being in-touch with capital markets allows the lender to stay competitive.
7. Do they focus on your growth by offering abundant resources?
Will they go so far as to present on your behalf at meetings with real estate agents or other partners? You want to work with someone who wants to help you grow.
An excellent example is this webinar that Angel Oak recently hosted.
8. Finally, their non-QM experience.
Did they just start doing non-QM, or do they have a team of operations and account executives with years of non-QM experience? Wouldn’t you rather work with someone who has looked at 10,000 deals rather than just 10?
These are important questions to ask when choosing the right non-QM lending partner. Contact Angel Oak today to learn more about its services.
