Shawn Ziem's Blog

What do you send to your past clients for Referrals

Shawn Ziem (Insurance Doctor) — Fri, 20 Nov 2009 15:45:35 -0800

I have been marketing to my past clients since I started in the business in 2002. I mail postcards, letters and flyers which have a call to action to insure a quick response. Since I have routinely sent these I have been told the reason I called was the consistency and persistence you have showed since our last transaction. When are some examples realtors send to the past clients?

Your Mortgage Advisor for Life,

Shawn Ziem, www.ZiemMortage.com

Realtors News flash!!! You need to send this to your clients

Shawn Ziem (Insurance Doctor) — Tue, 10 Nov 2009 15:06:27 -0800

Here's a quick note to let you know how I can help you or anyone you might introduce to me.

First-time homebuyers Gene and Sonia were every Lender's dream clients: both employed for more than two years, a record for paying bills on time, great credit scores, money saved for a down payment, and anxious to stop paying rent. No problem right?

Wrong! Gene was anxious to take advantage of the market, and he wanted to buy a house like he'd only dreamed of: New construction, five bedrooms, four bathrooms, a big yard for the swimming pool he was already planning. Sonia, on the other hand, was afraid of the market and the whole idea of a mortgage commitment. We discussed why buying the right home -with the right mortgage-is always a great investment, then I explained several loans options that would enable them to purchase a smaller home than Gene envisioned, but with a payment Sonia felt comfortable with. I got them pre-approved, and now the couple is on their way to becoming homeowners.

Shawn Ziem

Mortgage Advisor

www.ZiemMortgage.com

P.S. Who's the next person you know who's ready to stop paying rent and could benefit from a free consultation? Be sure to give me a call to discuss how I may help them.

What are some examples of your Marketing?

Shawn Ziem (Insurance Doctor) — Mon, 09 Nov 2009 17:08:03 -0800

Hello, Shawn Ziem again, now the "Mortgage and Insurance Doctor". I wanted to find out what other activerainers were doing to market for new business. What are some examples and what is your timeframe for sending things out. I have been sending many different things recently. I have bumped up my marketing because I believe many are NOT!! I am sending postcards to past clients, advertise in my local newspaper, letters to renters, flyers to referral partners, magnets and window decals wit my phone and website on my vehicle, email marketing and social marketing wit facebook and twitter. Lets see what else people are doing out their around the country!

I look forward to the response. Have a great day!!

The Mortgage and Insurance Doctor

Shawn Ziem 201-320-3454

https://www.ZiemMortgage.com

NEW, FREE, LISTING SITE FOR SELECTED AGENTS IN NEW JERSEY

Shawn Ziem (Insurance Doctor) — Sat, 07 Nov 2009 16:30:49 -0800

My name is Shawn Ziem, I am a mortgage professional in the area and I would like to help you market your real estate listings by giving you a FREE user account on our new real estate listing site.

Our website is a premium real estate listing service. I would like to give unlimited use of the site to market your listings FREE of charge.

Each Property listing includes:

Up to 10 full color property photos
Detailed Google maps
Complete property description
Property features
Development features
Print full color PDF flyers
Custom posting tools for site like Craigslist.com, Backpage.com
Direct email contact form
Agents contact page
Easy to use interface-requires no programming
Email a listing to a friend button

In today's survival of the fittest economy you can never do enough to market a home. Every extra action you take could make the difference.

Our site is another way for you to demonstrate to your clients that you are doing everything you can to promote their properties.

To introduce you to our site we have created a user account for you.

You have full control of your listings and can edit or add content.
You also have full control of your profile on the site.

I know we cannot tell people about your properties as well as you can. So please use our work as a beginning.

You can edit and update your listings anytime you want. You can add as many new listings as you would like.

We have prepared a short introduction video to give you a quick tour of the site.

Why am I offering you a FREE service to market your listings?

The answer is simple.

I am looking for a few agents to build a business relationship with and I think the best way to earn your business is to do something to help you succeed. I do not expect automatic referrals just because you are using our site.

If you use our service and feel that I have done something concrete to help your business grow I hope you give me the opportunity to put my professional abilities and knowledge to work for your buyers.

I am always available to talk to you or your clients about my mortgage services-just call or email me.

In the meantime please feel free to use the full services of our listing site to market your listings.

If you would like me to give you a short in person tutorial on the best ways to use the site to promote your business please call or email.

Sincerely,

Shawn Ziem

Atlantic Home Loans

Direct: 201-320-3454

Email: shawnaziem@aol.com

Web: www.ZiemMortgage.com

Tax Credit is Passed

Shawn Ziem (Insurance Doctor) — Sat, 07 Nov 2009 16:10:29 -0800

Thanks to our government we have the extension. First-timers get $8,000 and those who want to purchase a new home who have owned in the past 5 yrs can get $6,500. You need to close your loan by April 30, 2010. I am happy that they passed this because it will get many people off the fence to buy now but in reality are we hurting our future? Where is this money coming from? How many people think this is a good idea?

Happy Halloween

Shawn Ziem (Insurance Doctor) — Fri, 30 Oct 2009 15:37:31 -0700

What a great time of the year. Many people take part in a huge holiday that allows creativity. I hope you market to past clients with postcards or letters on holiday's like Halloween because many dont and you will be the only marketing piece they will get compared to many cards during thanksgiving and Christmas. I wish everyone a wonderful Halloween and take time to enjoy it if you have children or like to be around children. Keep chipping away, there are many deals out there. You just need to put yourself into the position to get these deals. Have a great weekend!

Mortgage and Insurance Doctor

Shawn Ziem (Insurance Doctor) — Thu, 29 Oct 2009 10:39:11 -0700

Shawn Ziem has added insurance to his business for his clients. Insurance was a good maych because while working with his mortgage client's he now could have the opportunity to review each policy they have to make sure they are financially sound. So, today when someone calls Shawn Ziem for a mortgage they also leave with an overall package that puts his clients into a better financial situation before they came to him. This also opened up more referrals for his partnerships he has already to bring more to the table for improving his partners businesses. If he helps other people get what they wants he in the end get everything he wants. Zig Ziglar made that comment in the past.

This marketing piece works!!!!! Mortgage and Listing leads

Shawn Ziem (Insurance Doctor) — Tue, 11 Sep 2007 21:00:26 -0700

You need to stop by your favorite hardware store for some little rocks and swing by a supermarket for plastic bags (the small kind). If you take a few little rocks and a business card (call to action business card) and place them in the plastic bag. Fill as many bags as possible. When you're ready find an area that you want business from and drive by each house and throw this bag and rock into their driveway. The rock is in the bag so it doesn't blow away. Our target people will call you if there is a call to action. I have seen a driveway guy do this and his business exploded! I would add if these people call for a mortgage analysis that when we meet I place a sign (all with my contact info and call to action) on their front lawn. I think after about 3 times of doing the drops that you will have a number of calls coming in. In addition, the signage will help increase the calls too. I will keep you posted on my project starting on Monday. I will post when I start getting calls and how many. Wish me luck! Have a great day!

What a deal I put together!

Shawn Ziem (Insurance Doctor) — Wed, 29 Aug 2007 21:29:01 -0700

I have a client who we just got approved with a 62% DTI with Fannie Mae rates (6.75%). The borrowers thought they were not able to buy a home and the dream came true but they were misinformed. They were prequalified by another lender with a subprime product @ 11.25% = around $2,900 payment. This payment would have been impossible for them to make and they just couldn't afford. They were about to throw the towel in and then I came along. Hey Realtors, if your client's are told they are pre-approved don't believe it for one second. This couple would have gone to the closing table and had a heartattack from the numbers that would have been given to them. I have been doing 2nd Opinion Pre-approvals and it's well worth the time to make sure your client's have the best possible deal available. If you or someone in your office is in need of a 2nd Opinion Pre-approval don't hesitate to call my cell anytime 201-320-3454

What programs are still available for mortgages?

Shawn Ziem (Insurance Doctor) — Sat, 18 Aug 2007 10:55:24 -0700

The biggest amount of programs are for the self employed borrower's. We can still do stated/stated programs with these types of borrowers where W-2 borrowers are not allowed only full doc. The whole business has had a lot of changes in the past couple of weeks. If you are having trouble with your current mortgage relationship to place a loan please don't hesitate to call us with your scenario. If we can't get it done than noone can! We are still making loans but you must use a lot of creativity.

Have you had anyone buy a "murder suicide" house?

Shawn Ziem (Insurance Doctor) — Wed, 15 Aug 2007 18:45:42 -0700

I am in a deal right now that my client's are purchasing a house that had a murder suicide last year. The house is a nice house for price they got (I wonder why). I went with my client's to see what they were buying. The house gave you some chills when you walked around the home. When we entered the garage (where it happened), we all had a weird feeling inside. The garage had carpet, but there was a huge cutout where I'm sure the murder suicide happened. If I was the agent of this home I would have removed all the carpet in the room. I believe the house would have sold faster if it was cleaned out and didn't present to the buyer right away what happened.

I was speaking with my wife about this house and she agreed that we would never buy a house like that. We don't care how much money you might save it just creeps us out. How many of you would actually buy a house that had a murder suicide?

Top Producing Realtors!!!! Need to read this

Shawn Ziem (Insurance Doctor) — Tue, 14 Aug 2007 18:42:38 -0700

I have been working with 3 top producing agents in NJ. We have a great relationship where we develop leads together. Many leads come from Farming a particular part of town and other areas that are big ticket areas. We have done the door to door thing on the weekends when you know people are home. No, people don't slam the door in your face. Actually, they really enjoy our "stop by". We just introduce ourselves, hand them our cards, maybe a flyer and ask if they knew of anyone on the block thinking about selling. As a mortgage broker, this opens up two transactions for me. What things are being done with your mortgage representative to build business? I would like to partner with an agent in each state by this time next year. Anyone interested in building business with someone that cares about your business too!

Page 6 of the application

Shawn Ziem (Insurance Doctor) — Sun, 12 Aug 2007 21:37:45 -0700

Page 6 of the Loan Application

1. How would you describe your financial philosophy?

____Conservative _____Moderate ____Aggressive

2. What is the most important component to you about the loan process?

____Service ____Quickness ____Communication

3. Realistically, how much do you expect your household income to increase or decrease in the next two, three, or five years? $________________________

4. How old do you want to be when your home is paid off or until paying off your home is an option? _________

5. Based on your current situation, how old are you going to be? ______

6. What % of your monthly income are you currently paying towards your mortgage? _________%

7. What % of your monthly income are you currently saving per month? _____

8. How old do you want to be when you retire? _____

9. Based on your current savings plan are you on track? ______

10. What is holding you back from saving more? ________________________

11. Do you have a:

CPA No Yes Need Referral ___________

Financial Advisor No Yes Need Referral ___________

Living Trust/Estate Planning situation No Yes Need Referral ___________

Life Insurance Agent No Yes Need Referral ___________

Attorney No Yes Need Referral ___________

Realtor No Yes Need Referral ___________

12. Describe your past experiences with getting a mortgage?

______________________________________________________________________________________________

13. How many family members own a home? _______ Rent? ________

14. What is your preferred form of communication during the process?

_____Home Phone ____ Cell _____Email: __________________

What do you ask during your appointment with your client's?

Shawn Ziem (Insurance Doctor) — Sat, 11 Aug 2007 10:22:42 -0700

I believe in being a mortgage advisor instead of a loan officer. I am not into one deal and being done with a client. My client's are always getting information from me monthly for future refinances or having them refer me to someone that needs my assistance. I have a set of questions that needs to be asked and answered during my application with my client. The questions get the client away from the "what's your rate"? I'm into finding out what realtors and other mortgage professionals use in their presentations. Please see what I ask during my application session.

5 Key Questions for a

High Trust Interview

•1.In what area would you like to buy?

•2.Where do you see yourself in five years?

•3.Have you or are you currently planning for retirement?

•4.Do you currently have an investment plan?

•5.What does financial independence mean to you?

What do you think of my letter I send to my affinity partners database?

Shawn Ziem (Insurance Doctor) — Tue, 07 Aug 2007 20:56:14 -0700

Many people today have trouble finding a good, thorough, and professional mortgage advisor. The public tries to shop online for the lowest rate and end up becoming a victim of a bait & switch scheme. Some apply for a loan from a postcard mailing offering 1% and find out later the rate is no longer available. These are two examples of poor business practices and horrible customer service. Have you been one of the many who have had similar experiences?

Not anymore! Let me introduce someone who will help, his name is Shawn Ziem from Tri-State Mortgage. He is a graduate of William Paterson University with many years of experience in home financing. Shawn originally came out of college to teach Physical Education and Health to 6-8^th graders. During five enjoyable years of teaching, Shawn developed his educational abilities and professionalism for his future mortgage business. Today, he enjoys educating each client throughout the mortgage process and shares in their excitement of buying a home. This has helped Shawn's referral based business because his client's return or refer their family, friends, neighbors and co-workers because of their exceptional experiences from his team.

The reason you are reading this letter is because your (pick one Insurance Professional, Attorney, CPA, Financial Advisor, Realtor), their name, thought you may be in need of my services. I have worked personally with their name and her team for my own (what they do) needs. I enjoy working with their name and her team because we connect on a number of important business traits. For example, We both strive to create comprehensive packages to suit the needs of our customer's, we utilize a major emphasis on working with a team, and we both set high standards for customer satisfaction. As you can see we have similarities in the way we both conduct our businesses.

The Ziem Team @ TRI-STATE MORTGAGE:

Pride ourselves on proactive communication and follow-up.
Ensure smooth, on-time closings with anticipated costs and terms.
Take full responsibility for our actions and being honest at all times.
Measure our success by the willingness of our clients to confidently refer us.

In closing, I look forward to helping you or someone you know change your/their financial situation through a refinance or make a dream a reality by purchasing a home. Please call me @ 609-296-2102 for a phone consultation and free credit report or apply online @ http://www.ziemmortgage.com/

Sincerely

Shawn Ziem

Mortgage Advisor

How I get leads for my professional network

Shawn Ziem (Insurance Doctor) — Mon, 23 Jul 2007 21:21:13 -0700

I wanted to find out how your partnerships (realtor & mortgage rep, etc)are working to help each other? When I meet with a potential client I have a series of questions that need to be asked. The questions help my team and I better understand our client to give the best service possible. If you get them thinking about other things instead of rates and fees you have a client for life. They trust and respect you and your team. The area of the series that helps my referral network is when I have my client rank their experiences with certain professionals I want to do business. They rank their realtor, attorney, cpa, financial advisor, insurance rep, inspectors, from 1-10 (being the best). I want to meet the 10's and refer my client if they give 7s and lower to my referral network. If anyone has something similar or use it differently I would love to hear. I am looking to add 2 partners in each category, so if you know of someone I can add to my referral network please call or email. I look forward to many comments!

Welcome to LEH

Shawn Ziem (Insurance Doctor) — Sat, 21 Jul 2007 13:00:15 -0700

I have lived in this town since Feb 2004. For a small town it has developed into the place to be. There have been people buying second and investment homes coming from North Jersey, NY andd PA. Little Egg Harbor is one of the remaining towns that you can still buy a waterfront home under $500,000. If you or someone you know are interested in purchasing please call and I will get you in contact with a realtor that can get the job done. Welcome to Little Egg Harbor.

Shawn Ziem from Tri-State Mortgage 609-296-2102

What realtors say about mortgage originators!

Shawn Ziem (Insurance Doctor) — Fri, 20 Jul 2007 20:59:44 -0700

1. Loan originators are terrible about returning phone calls and emails. It often takes hours or days before you hear back, if at all.

Shawn Ziem prides himself on consistent follow-up. He returns all calls within 90 minutes or sooner. It's common to call Shawn on a Sunday and get him on his cell phone for a deal.

2. They promise closing and commitment dates they can't deliver, causing a myriad of problems and delays.

Shawn Ziem works by "under-promising and over-delivering" to insure smooth closings and being able to deliver on commitment dates. You and I get paid only if and when we close a transaction. I make that my main priority.

3. Many lenders really don't know their business or their loan programs very well. Their lack of knowledge causes many mistakes.

Shawn Ziem, even after 5 years in the business, continues to block an hour out of his day to learn new products and review current guidelines. His specialty is the sub-prime borrower who really uses his expertise to get them into a home.

4. They come begging for business and your referrals, but offer little or nothing of value in return.

Shawn Ziem distributes business boosters, sits open houses for pre-qual's, utilizes a lead generation technique to refer business to his partners, sends listing client's a 3^rd party endorsement letter, markets the area for new business, appears in offices at least once a week and at times on the weekend.

5. They don't keep their real estate agents or the buyers informed and up-to date during the process.

Shawn Ziem faxes a weekly report on loan status on each of his partner's deals, sends pieces through the mail informing the buyer of the progress of the loan, calls agents once a week in regards to their deal, and calls the borrower every other day for an update on their loan.

What are you waiting for, now you know who to call to get deals done!

Getting the Best Interest Rate on Your Home Loan?

Shawn Ziem (Insurance Doctor) — Fri, 20 Jul 2007 20:52:22 -0700

Little Egg Harbor, NJ - Consumers interested in purchasing or refinancing a home will pay an interest rate based on current market conditions and their ability to pay back the loan. The borrower's income and debt ratios are taken into consideration by the lender, as well as the predictability factor provided by credit scoring. It's important to have a mortgage professional in your corner that has a keen eye for solutions to improving credit scores in an effort to get the best interest rate possible.

Interest rates associated with various loan programs are broken down into schedules based on credit score ratings. While each lender has its own guidelines, it's safe to assume that as the consumer's credit score goes down, interest rates will go up.

A borrower with an outstanding credit rating will get what is called an A-paper loan. This type of borrower is rewarded with a lower interest rate because they have a proven track record of using credit sensibly and paying their bills on time.

Loans designed for consumers with less-than-perfect credit - sometimes referred to as "sub-prime" - can range anywhere from A-minus, B-paper, C-paper or D-paper loans.

If you have already taken out a mortgage loan with a higher interest rate because your credit score was a little under par, you will really appreciate the value in doing a little work to improve your credit score. Refinancing from a D-paper loan to a B-paper classification can save literally thousands of dollars in financing fees over time, even though the B-paper loan is still considered sub-prime.

A qualified mortgage consultant will guide you through the nuances of the process of improving your credit score to refinance and save money. First and foremost, he or she will want to review the terms of the existing mortgage loan to determine if you have a pre-payment penalty clause written into your contract. In general terms, that means that if you sell the home or try to refinance before the pre-payment penalty expires and you have not already paid off 20 percent of the original loan amount, you will most likely have to pay a 3 percent fee back to the lender to compensate for the high risk and high costs incurred to provide that financing.

Next, you should obtain free copies of your credit reports by calling Shawn Ziem @ 609-296-2102 and start working on improving the credit score six months prior to the expiration date on your existing pre-payment penalty.

There are five factors that make up the credit score and your mortgage consultant can coach you through some basic strategies to improve your credit score. This means very conservative use of credit cards, paying off debt as much as possible and not applying for additional credit cards unless you will benefit from such action. You will want to verify that negative items you have paid off are being removed from your credit report, and that good credit history is being reported to all three bureaus. You'll also want to dispute any errors that appear on your credit reports and seek to have those removed entirely.

Once your credit score improves, it's time to refinance at a better interest rate. Your mortgage professional should look for a program that carries no more than a two-year prepayment penalty so you can continue to refinance as your credit score increases. You can repeat this process until you reach A-paper status and secure the best interest rate available.

This is a strategy that also works well for first time home buyers who do not have enough credit history under their belt to get an A-paper loan at the time of purchase. The important thing is to work with a mortgage consultant who can give you a roadmap to follow and a strategy for success in building personal wealth.

6 Reasons you don't need life insurance

Shawn Ziem (Insurance Doctor) — Fri, 20 Jul 2007 20:49:21 -0700

SIX REASONS YOU DON'T NEED LIFE INSURANCE

•1. YOU ARE NEVER GOING TO DIE.

•2. YOU ARE GOING TO INHERIT A FORTUNE.

•3. YOU ARE GOING TO WIN THE LOTTERY.

•4. YOUR CHILDREN ARE GOING TO SUPPORT YOU.

•5. YOU ARE NEVER GOING TO RETIRE.

•6. THE GOVERNMENT WILL TAKE CARE OF YOU.

Call for a quote

201-320-3454

Four Types of Buyers in the Market

Shawn Ziem (Insurance Doctor) — Fri, 20 Jul 2007 20:46:21 -0700

There are four types of buyers

Type #1: First time homebuyers-This type has never bought a home before, and they are a little unsure of themselves. They need someone to hold their hand and guide them through the process. They are an important group of buyers, and they almost always use a real estate agent.

Type #2: Relocation Buyers-This type is moving in from out of town, so they are unfamiliar with the areas, schools, neighborhoods, values, etc. They need someone who knows the area well to assist them. They almost always use a real estate agent.

Type #3: Move-Up Buyers-This type already owns a home, and wants to buy a more expensive one. They are usually busy with work, and don't have time to drive around looking for signs or finding a magnifying glass to sort through small classified ads. They want to have homes that meet their criteria, are ready to look at, and have all the details handled for them. They don't have the time to waste, so they almost always use a real estate agent.

Type #4: Investors and Bargain Hunters-This type is looking for a great deal. They aren't emotionally involved with any particular property, it's all just numbers. This group includes the people who just bought a "no money down" course from a late night infomercial that tells them to call on for-sale-by-owners. They ask if you have an assumable loan or will carry the mortgage yourself. They want below market price, and unfortunately for owners like yourself who are trying to sell themselves; this is the type of buyers that you attract most.

Need help with marketing FSBO or real estate listings please checkout my website www.ziemmortgage.com

Ziem's Core Values

Shawn Ziem (Insurance Doctor) — Thu, 19 Jul 2007 08:24:09 -0700

TRI-STATE MORTGAGE

Ziem's Core Values

________________________________________________________________________

I have decided that without exception I will:

•Þ Ask questions and listen to my clients in order to fully understand their needs.

•Þ Create mortgage solutions that complement my clients' overall financial strategy, and allow them to most effectively accomplish their short and long term financial goals.

•Þ Be sensitive to the fears that many homebuyers have about obtaining a mortgage loan and earn their confidence as a trusted advisor.

•Þ Respect my clients' time and minimize the amount of effort required of them by applying my knowledge, experience and resourcefulness.

•Þ Use state of the art technology to complement my customer service, making adjustments when necessary to avoid overwhelming my clients' who are less technically proficient.

•Þ Communicate regularly and proactively with my clients' to keep them informed of the status of their loan and to reduce stress that is associated with uncertainty.

•Þ Ensure smooth, on-time closings with anticipated costs and terms.

•Þ Provide my clients' the luxury of home loans in the future with little effort on their part, by means of an annual mortgage review.

•Þ Measure my success by my clients' willingness to confidently recommend me.

•Þ Take full responsibility for my actions and be honest at all times.

•Þ Seek to improve the quality of service I provide by encouraging each client to critically evaluate my performance.

Your Mortgage Advisor,

Shawn Ziem

609-296-2102 * www.ziemmortgage.com

Water Bottle Marketing

Shawn Ziem (Insurance Doctor) — Sat, 14 Jul 2007 21:14:45 -0700

I have been using labels (with my photo and contact information) and placing them on water bottles where I give them out during open houses or door to door intro's. The exposure you get is very nice because not all will drink their cold refreshing water till later. They bring it home and place in the refrigerator, then later on, they might pull it out and remember our encounter later that day. On hot days it's a nice ice breaker when I go farming certain areas of my time door to door. People don't yell or slam the door in your face. When you call someone on the phone they can just hang up. When you meet them face to face they will listen to what you have to say. I don't do any selling when I meet the first time. The first time is an introuction where I give them a bottle of water and my card and sometimes a flyer. It will get you some leads.

Open House Flyer

Shawn Ziem (Insurance Doctor) — Sat, 14 Jul 2007 09:47:39 -0700

I have used this flyer with agents I work with on open houses. They have given me some good feedback on the usefulness of the form. Let me know what you think and if you need financing flyers for any upcoming open house. I lok forward to helping agents sell homes.

Open House Survey

HOW DID YOU LEARN ABOUT THIS OPEN HOUSE?

 Newspaper  Signs  Other ___________________

Interested in  BUYING  SELLING

Pre-Approved?  YES  NO

Working with an agent?  YES  NO

Name: _________________________ Address: _____________________________________________

Email: ______________________________ Phone: __________________ Cell: ______________________

Please rate this home

Floor Plan Excellent  Good  Fair

Condition Excellent  Good  Fair

Landscaping Excellent  Good  Fair

Neighborhood Excellent  Good  Fair

Amenities Excellent  Good  Fair

Price Excellent  Good  Fair

Compared to others Excellent  Good  Fair

Comments: ____________________________________________________________________________________________________________

Thank You for Coming

Avoid the most common mistakes made when applying for a mortgage.

Shawn Ziem (Insurance Doctor) — Wed, 11 Jul 2007 22:01:12 -0700

Whether you are planning to buy your first or second home or refinancing your current mortgage, making the right choices now can save you thousands of dollars over the life of your loan. Understanding the past practices of other people will help you make the right choices for your future. I present the 14 most common mistakes when applying for a mortgage.

1. Not knowing your loan officer.Not taking the time to get to know your loan officer will affect the relationship that you should be having. This person will assist you in analyzing your situation and placing you into the right loan. In addition, the loan officer should always follow-up with his/her client's. This keeps you well informed and able to make choices about your loan. A loan officer should help you make those choices when selecting the loan type and the right rate. If everything is out in the open, right from the start, the choices you make will be much easier. The Ziem Team sends update letters and make calls to their clients throughout the loan process.

2. Waiting to get pre-qualified.Most people think they can not qualify for a loan because of a lack of money or credit. The sooner you get pre-qualified; the sooner you can determine the path you need to follow in order to purchase a house you can afford. For example, if you are not happy with the amount you can afford, you might wait a few more months before looking for a house. On the other hand, a mortgage specialist can help you understand ways to control your debt and or obtain credit to benefit you later when applying. Being pre-qualified also lets a realtor know that you are ready financially for a home. By knowing what you can qualify for, allows a realtor to look for a home in your price range that you can be confident you can afford. The Ziem Team prequalify between 10-15 clients each week.

3. Not understanding the term "points".A point is a percentage of a loan amount. On most purchases a borrower will encounter a 1-2% charge for the loan process, which is paid at closing. When a person refinances, he/she can have all closing costs rolled into the loan amount. In a refinance, a borrower will see a .5-1% charge included in the closing costs. Points are used to pay a mortgage specialist for their work. These can be negotiated between the client and specialist. But don't forget that paying points can allow you the opportunity to have the lowest possible rate available.

4. Choosing a lender because they have the lowest rate. Not getting a written good-faith estimate. While rate is important, you have to consider the overall cost of your loan. Pay close attention to the APR, loan fees, discount and origination points. Some lenders include discount and origination points in their quoted points. Other lenders may only quote discount points, when in fact there is an additional origination point (or fraction of a point). This difference in the way points are sometimes quoted is important to you. One lender will quote all points, while another lender may disclose an extra point, or fraction thereof, at a later time--an unwelcome surprise. Within 3 working days after receipt of your completed loan application, your mortgage company is required to provide you with a written good-faith estimate of closing costs. You may want to consider requesting a GFE from a few lenders before submitting your application. You can get a feel for which lenders are more thorough, and you can educate yourself regarding the costs associated with your transaction. The GFE with the highest costs may not indicate that a particular lender is more expensive than another--in fact; they may be more diligent in itemizing all fees. The cost of the mortgage, however, should not be your only criteria. You must also feel comfortable that the loan officer you are dealing with is committed to your best interests and will deliver what they promise.

5. Not aware of the undisclosed fees, failing to review the Good Faith Estimate. A Good Faith Estimate is a page in a loan application that presents all the figures in the loan to the customer. All figures should have a dollar amount or should reflect an n/c (no charge) on the line. An experienced mortgage specialist will always go over the Good Faith Estimate in detail. At the time of closing, the figures explained to you in the Good Faith Estimate should closely reflect the fees you are charged at your closing. Actually, most mortgage specialists will review the official closing fees for your loan the day before the closing to alleviate any problems on the day of closing.

6. Selecting the wrong loan product for your situation.By analyzing your situation, a mortgage specialist should be able to place you in a loan that will save you money and or time on your mortgage. The loan should be centered on the client's needs rather than specialist's pocket. An experienced mortgage specialist will know the difference between a conventional loan and a non-conventional loan; full doc vs. stated or no income-no asset, FHA, 100% financing, etc. He/She should be able to explain to you the reasons for placing you into a loan and how it will benefit you in the long run. Please keep in mind that there is a number of other factors (credit score, income level, debt-to income, Loan-to Value, owner occupied vs. non-owner occupied) that contribute to the type of loan a mortgage specialist can place you into.

7. Being dishonest through the information gathering process.Giving false information may seriously jeopardize the loan process. It will place stress on the relationship you are supposed to build with your mortgage specialist. The information-gathering portion of the relationship is extremely important. At this time, the mortgage specialist is learning as much as possible about your situation. By giving false information, the loan product given to you will in the end not be of any value to you because of missing information and will only make the process much longer. A bank will check and re-check all information given to them since lending money to people is a very risky task for a banker.

8. Not knowing what your income is, don't overestimate.Again the information gathering portion of the relationship should be extremely honest. The bank will verify your income using several methods so you need to be honest from the start. By not presenting the correct information the banks will double and triple check your loan and if they can not confirm your income is what you claim then they can deny your loan. When pre-qualifying, a mortgage specialist will ask for the last two years W-2's, 1099's (self-employed), last two pay stubs and bank statements.

9. Out of control debtBy having too much debt, it will hinder the process of obtaining a low interest rate for your loan. If you have more than 15% of your monthly gross income going to debt, you most likely will not quality for a loan. If this is the case, you should speak with a mortgage specialist to get a prequalification. He/She will be able to analyze your situation and recommend what actions to take. During the prequalification, the mortgage specialist should do a credit analysis where he/she will explain to you how you can consolidate your debt.

10. Know the difference in rates, quoted vs. real.There are only two ways to look at rates---quoted and real. Many lenders today will give you a quoted rate, but that is not always the rate you will end up with at closing. If the rate increases from the time you signed your Good Faith Estimate by more than 1% then there is reason for concern. Unfortunately in the real world, interest rates adjust everyday, but a significant difference in the rate on your Good Faith Estimate and your final rate should be a red flag for predatory lending.

11. Not taking care of your credit.A mortgage specialist will need to pull your credit to do an analysis. A three digit FICO score can be given to an individual within minutes. Your credit is usually pulled from the three big credit agencies, Experian, Transunion, and Equifax. This score needs to be between 500-900. Anything below a 500 FICO score will not be accepted from a bank. Keep in mind every time your credit is pulled it drops a few points. For example, there was a man ready to close within a week and he decided to go car shopping on a Thursday. He went to 11 different dealerships and had each one pull his credit. The next day, he was denied a mortgage because his credit dropped below 500. This is a fact that is unknown by many but is unfortunately a true one. Also using internet sites for loan shopping can be very dangerous for your credit since many banks are pulling your credit in a very short amount of time. If you are in the process of getting a loan you should not apply for any new credit including a new car or a new credit card.

12. Buying a home without professional inspections. Taking the seller's word that repairs have been made. Unless you're buying a new home with warranties on most equipment, it is highly recommended that you get property, roof and termite inspections. These reports will give you a better picture of what you are buying. Inspection reports are great negotiating tools when it comes to asking the seller to make repairs. If a professional home inspector states that certain repairs need to be made, the seller is more likely to agree to make them. If the seller agrees to make repairs, have your inspector verify the completed work prior to close of escrow. Do not assume that everything will be done as promised.

13. Not shopping for home insurance until you are ready to close. Start shopping for insurance as soon as you have an accepted offer. Many buyers wait until the last minute to get insurance and find they have to time left to shop around.

14. Making moving plans that do not work. You expect to move out of your current residence on Friday and into your new residence over the weekend. Also on Friday, your lease terminates and the movers are scheduled to appear. Friday morning arrives: bags packed, boxes stacked, children under arm and the dog on a leash; you are sitting on your front door stoop awaiting the arrival of the movers. Your phone rings. Your loan closing is delayed until the following Tuesday. The new tenants turn into your driveway with a weighted-down U-Haul and the movers pull up across the street. You ask yourself, "Where is the nearest Motel 6 and storage facility? How much will the movers charge for an extra trip? Can we afford it?" How can you avoid such a disaster? Cancel your lease and ask the movers to show up five to seven days after you anticipate closing your transaction. Consider the extra expense an insurance policy. You are buying peace of mind--and protecting yourself from expensive delays. Keeping these key components in mind, you are now ready to obtain a mortgage that you will not have to worry about. This is important information given to you for the benefit of helping you make the right choices for your loan. To work with a dedicated "Ziem" Team call 609-296-2102 ask for Shawn Ziem.