Loan Programs Service Technology

3 Factors to Consider When Choosing a Non-QM Lender

In recent years Non-QM lending has experienced a rise in prominence due to an increasing number of borrowers seeking flexibility in mortgage qualification. Non-traditional sources of income have become more common as many people in the workforce are shifting away from traditional, W2-paying jobs.

If you’re taking your borrower the Non-QM route, it is important to choose a lender that you can lean on for their expertise. Non-QM is not always as straightforward as traditional, conventional loans, meaning that you need someone who is equipped for the job. 

There are many aspects to consider when deciding which mortgage lender to select; however, there are three aspects that remain prominent in the Non-QM industry: service, product suite, and technology. 

1. Level of Service 

In a complex industry where your borrowers are faced with massive financial decisions, it is important to ensure that your lender is capable and willing to guide you through the process. As a broker, you need a partner who can provide you with realistic expectations and turn times so that you can accurately inform your borrowers. You also need someone who you can turn to with questions ranging from loan structuring to general conditions on the file. With that being said, strong product and process knowledge is essential – be confident that the lender you’re working with is an expert in their field.  

Redstone is the fastest-growing Non-QM lender in the country, taking pride in our ability to offer concierge-level service at every step of the loan process. At Redstone, customer service is a priority and has laid the foundation for the company’s core values. Our operations team is the backbone of service and knowledge, this can be seen in how we provide real-time file movement notifications. Concierge-level service has allowed Redstone to make the loan process faster and easier for our broker partners, with loans funding in as quickly as eleven days.

2. Product Suite

An ample product suite is key to providing more solutions for your borrowers, allowing you to accept a larger pool of potential borrowers who may require more flexible qualifications. Many lenders, especially if they are newer to Non-QM, are limited in what programs they can offer. 

Working with a lender who can provide you a full Non-QM product suite will eliminate the need to shop around as everything can be offered through your Non-QM expert. Save yourself and your borrowers the headache and find a trusted lending partner that will be able to accommodate a wide array of borrowers. 

Redstone’s product suite is expansive and offers programs for self-employed individuals, business owners, Foreign Nationals, individuals with previous credit events, and many more. Redstone is also exception-friendly, meaning that we don’t back down from the touch scenarios and deal-structuring. Finding a solution to unique loan scenarios is one of Redstone’s specialties. 

3. Technology

While diverse product suites and customer service are always essential, technology has also come to the forefront in the mortgage industry. Choosing a lending partner that prioritizes this will allow you to stay in the flow of where the industry is moving. Don’t watch it, be a part of it. 

Technology has disrupted the mortgage industry entirely. For decades, mortgage lenders, loan officers, and borrowers have experienced frustration with the prolonged loan process. Recently, technology has been able to streamline the typically very tedious, everyday steps. Main players in the industry have started making strides while others have been slow to adopt. 

Redstone was founded as a fintech company, so it’s clear that technology has been at the forefront since its inception. Accordingly, our Non-QM entity has developed distinctive tools to ensure efficiency in the loan process in order to provide an elevated experience. 

Redstone started by building Redqual, a real-time pricing, and qualification engine. The innovation, however, has not stopped there. Redstone continues to identify additional areas for automation and to improve inefficiencies for all parties involved.  

Redstone’s next project was Redstone Verification, an automated tool that allows borrowers and brokers to instantly calculate bank statements and receive a detailed report directly to their email in just minutes. Redstone has additionally launched the broker portal, Sigma, an intuitive and modern portal designed for transparent communication and the ultimate user experience. 

This product also allows brokers to comment directly on conditions, order appraisals, and more! In the ever-changing and competitive mortgage industry, selecting a lender that is progressive and always looking to provide the best experience possible, is crucial. While the perfect lender may not exist, having ample service, a diverse product suite, and helpful technology can create a successful loan process. For more information, schedule an appointment to speak with an expert today.

Loan Programs Mortgage Brokers Non-QM Tips

Why Originate Non-QM?

We’re sure you’ve heard all the buzz about Non-QM in the past couple of years. It has been hard to avoid and for good reason! However, in case you haven’t, we’ll give you a quick run-down. 

A Non-QM loan is a non-qualified mortgage loan. These loans provide deserving non-traditional borrowers the opportunity to qualify for a mortgage. Non-QM loans catch what has fallen outside of the stringent guidelines set by Fannie Mae and Freddie Mac.

Non-traditional borrowers cover a variety of people, occupations, citizenship, etc. Common scenarios that Non-QM lenders see are investors, business owners, and other self-employed individuals that need to qualify using different sources of income. This could include anything from bank statements to a profit and loss from their licensed tax preparer.

The aforementioned self-employed borrowers may also require a non-traditional mortgage due to higher DTIs. If you’re a real estate investor, the portion of debt you take on is higher than a traditional borrower’s. This DTI likely exceeds agency guidelines, turning borrowers to Non-QM which can evaluate the borrower’s ATR on other factors. 

Non-QM lenders are supported by private investors. This allows these lenders to look at the whole financial situation of borrowers and make a more holistic lending decision. For example, at Redstone we offer exceptions for credit events, varying loan amounts, property types, and LTVs. 

The Non-QM space has experienced increased popularity due to the shift in income sources of employed individuals. Expand your book of business by working with a lender who can increase your breadth of clientele. If you’re looking to join the world of Non-QM, Redstone is the perfect place to start. We offer concierge-level service, a diverse product suite, and cutting-edge technology – to name a few.

Our team is well versed in structuring challenging scenarios so don’t hesitate to reach out to one of our CX Gurus for deals that you are having trouble understanding or placing. Redstone also offers training and product education to ensure that you too are a Non-QM expert. For more information, schedule an appointment to speak with an expert today.

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