The mortgage industry starts helping borrowers too late

8 hours ago 1

After 25 years in mortgage lending, one pattern has become difficult to ignore: Our industry is very good at helping people who are ready to transact, but inconsistent at helping people become ready. We have built faster applications, better verification tools, more precise underwriting systems and increasingly automated follow-up. Those improvements matter. But they mostly begin after a consumer has crossed an important line: agreeing to become a lead, complete an application or speak with a mortgage professional. Many future homebuyers are not there yet. Their first need is not a rate quote or a preapproval. It is a private, understandable answer to a more basic question: What does my current financial situation mean for my ability to buy a home? The gap before the application Most mortgage pipelines recognize a handful of states: new lead, contacted, application, approved, denied, closed or inactive. The consumer who wants to buy but is not ready today usually disappears into the last category. That label conceals very different circumstances. One person may need several months to reduce revolving debt. Another may have income that is usable but documented differently than expec...

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