Canned Offers vs. Custom Loan Options
When shopping for a mortgage it is critical to understand the difference between canned offers and custom loan options.
Canned offers allow borrowers the opportunity to browse interest rates from different lending institutions easily without providing much information. While these loans may offer lower interest rates it’s important to note that they are variable and will fluctuate from time to time. These offers do not take into consideration outside factors such as credit score, loan-to-value (LTV), debt-to-income (DTI), etc. Often, borrowers who consider canned loan offers discover they are ineligible because of credit score, term desired, or other factors.
Custom loan options, however, are more in depth. The lending institution takes time to consider all factors and circumstances to deliver a tailored mortgage built around the individual’s needs. With so many loan programs available, this scenario is much more customer-focused. Loan Advisors are able to take into consideration all factors affecting a borrower’s financial health and provide options that put him or her into a better situation for the future.
Canned offers can be beneficial for customers who are looking for direction on where to attain financing. However, customers should be advised that canned offers are contingent on multiple factors.