California Brokerage Approved to Offer Bank Statement, Purchase and Refinance Options to High-Risk Borrowers
Laguna Hills, Calif.–(Newsfile Corp. – April 8, 2022) – In light of today’s high mortgage rates, brokerage firm Maxim Lending has been authorized to add bank statement loans to its list of services and offer purchase and refinance options to borrowers with FICO scores as low as 550. They are also newly licensed to do business in South Carolina, Arizona, Minnesota, Maryland, Virginia, Texas, and Colorado, dramatically increasing access to home loans for borrowers across the United States.
To view an enhanced version of this graphic, please visit:
Brian Jahanbin, President of Maxim Lending, says, “The mortgage market is growing every day.
Home prices continue to climb due to low inventory in the market, causing more people to clamor to buy a home. Cash offers and bids placed well above the asking price are commonplace in this market.
In addition to inventory issues, the process of obtaining a mortgage has become exponentially more complicated since the financial crisis of 2008. Before the Great Recession, mortgage lenders did not scrutinize borrowers’ finances as much as they do it today. This lack of control led to fraud in the housing market which led to a lack of funds from lenders and a rapid drop in housing prices. Coupled with rising mortgage interest rates, this meant that millions of Americans were unable to pay their mortgage payments.
To avoid a similar event today, lenders are much more selective when considering which borrowers to approve for loans. This is ultimately positive since it at least somewhat protects the stability of the housing market. However, for high-risk borrowers and those without verifiable income through W2, this complicates the process considerably.
Although it can be daunting, Brian Jahanbin urges borrowers not to let this hurdle deter them from pursuing their dream of buying a home. He explains, “That’s when it comes in handy to work with a brokerage. If you try to work directly with lenders, they might see that you’re self-employed and just say “No,” even though you have good credit. It’s harder to prove your income if you’re self-employed because you don’t have a W2 to show.”
A potential way around this problem is the newly approved service offered by Maxim Lending: bank statement loans. These loans require self-employed borrowers to present lenders with 12 months of business bank statements to prove that regular deposits are being made.
However, for the typical lender, bank statement loans can potentially be considered higher risk. This is when it pays off for borrowers to work with a brokerage because mortgage brokers, especially those with decades of experience, have had the time to establish relationships with lenders, potentially allowing them to find better rates or seek slightly more lenient loan terms.
Maxim Lending is also licensed to offer cash refinance loans, an option for homeowners who want to take advantage of today’s high levels of home equity.
Brian Jahanbin explains: “A refinance loan with withdrawal is essentially a home loan, like the one you got when you bought your house, but you use your capital to take out a larger mortgage. Your original mortgage is paid off and you get cash difference.”
Like many real estate transactions, the terms of refinance loans can vary widely from lender to lender. The insight of an experienced broker can help lenders find the loan that’s right for them. According to Jahanbin, “Choosing to work with a brokerage means you have access to experience and connections that you probably couldn’t find by researching lenders on your own.”
Despite the volatility in the housing market, Maxim Lending has maintained its success thanks to the insight that experienced brokers like Brian Jahanbin can offer borrowers. Maxim Lending’s new ability to operate in states across the country, offering new services even to borrowers who might generally be considered higher risk, means more people will be able to invest in real estate by buying their own homes.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/119770