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California Brokerage Approved to Offer Bank Statement, Purchase & Refinance Options to Higher-Risk Borrowers

 

Laguna Hills, California - April 8, 2022 (Newsfile Corp.) (Investorideas.com Newswire) In light of current mortgage rate highs, brokerage firm Maxim Lending has been approved to add bank statement loans to their list of services, and to offer purchase and refinance options to borrowers with FICO scores as low as 550. They are also newly approved to do business in South Carolina, Arizona, Minnesota, Maryland, Virginia, Texas, and Colorado, greatly increasing access to home loans for borrowers across the United States.

Brian Jahanbin

Brian Jahanbin, president of Maxim Lending, says, "The mortgage market is growing on a daily basis."

Home prices are continuing to climb due to low market inventory, leading to a growing number of people clamoring to purchase houses. Cash offers, and offers placed well over 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 2008 financial crisis. Prior to the Great Recession, mortgage lenders did not scrutinize borrowers' finances to the extent that they do today. This lack of scrutiny led to fraud within the housing market that resulted in a lack of lender funds and rapidly falling housing prices. Coupled with rising mortgage interest rates, this meant that millions of Americans were unable to afford their mortgage payments.

To prevent a similar occurrence 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 higher-risk borrowers and those without income that can be verified via W2s, it greatly complicates the process.

While this can be discouraging, Brian Jahanbin urges borrowers not to allow this roadblock to dissuade them from continuing to pursue their dream of purchasing a home. He explains, "This is when it's useful to work with a brokerage. If you're trying to work directly with lenders, they might see that you're self-employed and just say 'No', even if you have good credit. It's harder to prove your income if you're self-employed because you don't have W2s to show."

One potential way around this is the newly approved service that Maxim Lending offers: bank statement loans. These loans require self-employed borrowers to show lenders 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 seen as higher risk. This is when it's beneficial for borrowers to work with a brokerage, since mortgage brokers- particularly ones with decades of experience- have had the time to build relationships with lenders, potentially allowing them to find better rates or seek out slightly more lenient loan conditions.

Maxim Lending is also approved to offer cash-out refinancing loans, which is an option for homeowners who wish to take advantage of the current high home equity levels.

Brian Jahanbin explains, "A cash-out refinancing loan is essentially a home loan, like the one you got when you purchased your house, but you use your equity to take out a larger mortgage. Your original mortgage is paid off, and you get the difference in cash."

Like many real estate transactions, the terms of cash-out refinancing loans can greatly fluctuate between lenders. The insight of an experienced brokerage can help lenders find the loan that works best for them. According to Jahanbin, "Choosing to work with a brokerage means that you get access to the experience and connections that you most likely wouldn't be able to find while searching for lenders on your own."

Despite the volatile housing market, Maxim Lending has remained successful due to the insight that experienced brokers like Brian Jahanbin can offer to borrowers. Maxim Lending's new ability to operate in states across the country, offering new services even to borrowers who might typically be considered higher risk, means that more people will be able to invest in real estate by purchasing their own homes.

To learn more, visit maximlending.net, call 888-345-9333, or reach out directly to Brian Jahanbin: brian@maximlending.net

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