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How does AmeriFund do it?
Our competitors will actually use our superior pricing as a reason to avoid using us. They’ll tell you, “If it’s so good, it can’t be real.” But the fact is, there is a huge difference in the costs at the same rate between the various companies vying for your business. So why are AmeriFund’s costs so low?
There are actually many reasons for this. Here are a few of the more important ones.
Lower locked-loan fallout ratios.
When a loan is locked and does not close it costs the lender money. This is a reality of managing a locked pipeline in the secondary market. A mortgage originator that delivers (closes) a higher percentage of locked transactions receives better overall pricing on the entire pipeline. AmeriFund requires an applicant to complete a quick and easy application procedure and submit the documentation (income/asset documents) necessary to determine whether an applicant will qualify before we are willing to lock on that transaction. We typically evaluate this information in less than four hours. The vast majority of our competitors do not have an underwriter evaluate an applicant’s documentation until several days (or possibly weeks) into the application process. Most don’t even have the capability. So when our competitors lock an applicant at or near the time of application they are doing so blindly, not knowing whether that loan will actually be approved and not knowing whether it will likely close. AmeriFund also advertises in a manner such that we approve a much higher percentage of loans than the average lender. This is not because we have less stringent guidelines. It is because our typical borrower is more likely to be approved and go to closing. As a result of these two factors, AmeriFund’s delivery rate on locked loans exceeds 95%. The average mortgage broker’s delivery rate is less than 70%. As a result, AmeriFund’ pricing is about half a discount point or more better than our average competitor. That means, that on a $300,000 loan we can charge the borrower about $1,500 less than our competitors and still make the same amount of profit on that transaction.
AmeriFund has lower margins.
The simple fact of the matter is that AmeriFund charges the borrower a little less than most our competitors on every transaction. The typical bank has to pay the president (who’s out playing golf), the VP of the Mortgage Division (whose out playing golf), the VP of Sales (who’s out playing golf), the Regional Manager (whose probably out playing golf), the Branch Manager (whose playing video games in the corner office) and …. Well, you get the picture. AmeriFund has none of that dead weight. So instead of cutting the pie into fewer pieces and eating a bigger piece of the pie, we merely keep the same piece of pie and give a slice or two back to you. It’s that simple. We can make the same amount of money charging less. Our competitors simply can’t do that.
No marble floors in the lobby.
In fact … we don’t really have a lobby. We’re a small company and we like it that way. We only have a handful of loan consultants and processors and they all work from home. No commute time. No wasted time at the water fountain. We also take 99% of our applications by phone or via the internet. Our loan consultants rarely see our applicants face-to-face. As a result our loan consultants close three times the number of transactions spending the same amount of time as the typical “loan officer” at one of our competitors. This all adds up to capability of charging less on each transaction, and making the same or more as the other guys. It’s simple entrepreneurial mathematics. We benefit from the efficiency. You benefit too, by receiving lower costs.
One final thought. AmeriFund’s loan consultants provide clear and concise quotes in writing within minutes of receiving a request. We’ve been in business for more than 23 years. In that entire time we’ve never had a single complaint filed with the Better Business Bureau or any regulating agency. Check out our competitors’ that are telling you we won’t deliver. Most have had multiple complaints filed with the BBB in just the last three years. Check out our rating on the LendingTree.com review site. It’s a perfect 5 of 5 stars. If we didn’t deliver on our quotes wouldn’t there be an occasional complaint filed for improper sales techniques?
The bottom line. AmeriFund has the lowest rates and costs of any mortgage originator in the market and we have the highest customer service marks.