The mortgage process, whether you are applying for a FHA mortgage or a convnetional mortgage, the process should not be as difficult as it appears more times than none. After over 15 1/2 years in the mortgage industry, I just don't understand why some loan officers just don't learn the basics, instead of trying to sell rate and fees. They get so caught up in this, oversell the rate and undercut fees, that they lose sight of the service part of the mortgage process. And the basics of knowing what questions to ask.
As I mentioned in Part 1, the Purchase CHECKLIST is so critical. This is why it's so important to talk to a loan officer before you even set out to purchase a home. I can't tell you how many consumers that I have talked to in the last 6 months that started to look, fell in love with a home, and then seeked a lender. The problem with this is that some of these loan officers that you speak to are so inexperienced, and when they hear that you have already found your dream home, they are more worried about getting you into their door than asking the basic questions.
What should be one important question that every loan officer should ask you in the first several minutes? What kind of mortgage payment can you afford and not what you can qualify for. The second most important question should be asking what your short term and long term goals are. Do you have kids? Want kids? Kids going to college? And so much more. Then they should get into your credit and assets. The problem here is that the first question that so many ask is, "how's your credit". As I mentioned, this should not be the first question. Now, this is just my opinion, but this is based on over 15 years of experience and knowledge in the mortgage industry.
Overall, if your loan officer tries to take you from point A to point C without truly covering what I mentioned above, then you will either be placed into a mortgage that is not right for you and/or that your settlement/closing on your new home or that refinance will be a very bad experience. That's if you are even lucky to have a closing. I have seen many mortgages that were killed or denied the day of, because the loan officer didn't do their job. And in regards to this statement, don't let anyone fool you. Deals aren't killed or denied the day of settlement. This is usually known a few weeks into the process, that's if they got the required documentation upfront and that their processor is on top of their game. Yes, the mortgage process is based on a team concept, starting with your loan officer as the General. The one that if they know what they are doing, can decide at that time if you could even get a mortgage. And if they are unsure, they can go right to their underwriter to go over your scenario with that person. Communication is so critical.
For more information to know about as you shop for a lender or a real estate agent, please read this post, What kind of red flags should your be aware of ???? And the chart above just gives you a basic idea of how your process should start and end.
The Mortgage Process Series :
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For more information on FHA loans, please go to this link. The FHA Expert
For more information on how you can obtain your dream home, please click here : Mortgage Financing Options
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!
Copyright © 2008 by Jeff Belonger
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