Why Bank Brokers are Slower and More Cumbersome than Direct Lenders

Bank brokers and lenders should have their systems down to an exact science. In some ways, they do. If a client does not fit their exact criteria, they are rejected immediately. The response then is, “how much can you come up with?”

Obviously, this brings many families right back to square one. Bank lending should be more flexible, but it isn’t. The reason why makes some sense considering the catastrophic fall of the real estate industry nearly a decade ago. But, if the fall has taught consumers anything, it is that they are not confined to one choice in how they pursue a mortgage.

Why Bank Brokers and Lenders Fall Short

Bank brokers are constricted by the regulations of the lenders. They cannot make discretionary choices based on terms. So, if the 620 FICO score is the standard, a broker would not be able to stretch the rules for a client with a score of 615. It breaks the algorithm and it all falls apart.

The strict system of bank lending has its uses. It is certainly a system that strongly works with larger technical infrastructures to make pitch-perfect loans that fit the perfect level of risk aversion. But, some flexible should be supported in the system and that is not exactly the case. If a client does not fit a perfect form, they are denied. This has created an opportunity for new alternative lenders to come in and offer more direct terms.

Direct Lending Has Prospered

Consequently, it has created the rise of an alternative approach for millions of Americans. With all the people who do not fit the exact criterion needed, they can go elsewhere. This is how the direct lending system has prospered. It has allowed a platform for homeowners to get into a home even when they are not the exact prime candidates bank brokers are seeking.

Dustin Dimisa online has helped develop and promote a platform for aspiring home buyers to buy. It is called Consumer Connect. Readers and intrigued potential buyers can dig through the official Twitter feed of Dustin Dimisa to learn more information about it all.