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FHA loans & Mortgage advisory - Part 1 - Understanding Loan Officers

By Jeff Belonger

Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

November 04, 2008 05:31 AM

fha loans & fha mortgages

FHA loans - FHA mortgages - Conventional loans - VA mortgages

Consumers & Borrowers, please read this !!!

I have noticed in the last few months that some loan officers and lenders are getting more desperate than ever before. In my 16 years of being a loan officer in regards to mortgages, the consumer needs to be aware of knowing when to seek help from another loan officer and not wait until the last minute. It's one thing to trust, it's another to be lied to or misled to.... and not just by accident.

fha loans & fha mortgages

I so love helping people in general. And even more so when it comes to helping my client get a mortgage, no matter if they are buying a home or refinancing. I will also say that I am not perfect nor that I know everything when it comes to mortgages. But I have some pet peeves and concerns.... please read below.

I could share at least 20 to 30 examples that I have come across in just the last year alone. I get about 5 e-mails or phone calls a week from consumers all across the United States, but usually after they feel that they aren't getting anywhere with their current loan officer/lender. I am licensed in many states and more to come shortly. But if I am not licensed in that state, I know of a true mortgage professional that would be able to help them the same way that I could. Just recently, I had a woman e-mail me because her current lender said that her father couldn't co-sign on her new house because of x, y, z reasons. I said that was not true. And the sad part was that her loan officer said no and would get back to her. It was a whole week and still nothing. I gave her the name of a loan officer that I had confidence in and she still hadn't called him, even after 4 days.I just don't get it? Read below for her answer.

Conclusion to the answer -

I asked this women why she would not seek advice from another loan officer, especially one that was highly recommended, if she truly trusted me. She said..."because her loan officer was nice". People !!!! A nice sales person will not always get you the correct answer or your deal done. Yes, it's our job to be nice. But if they throw at you sweet chit chat, words of encouragement such as, "don't worry", "no problem", "I guarantee", "I promise", etc etc.... then you might be shooting yourself in the foot.

Words of advice -

It doesn't take more than 24 hours to get a basic answer to any type of mortgage question. Go with your gut sometimes. Better yet, go with a very knowledgeable and professional loan officer. One that will educate you about the process and educate you during the process. Advice below....

If the loan officer keeps promising to get back to you, but it's been a few days now, seek help elsewhere.
If they are hard to get a hold of now, even more so when you might have an issue, seek help elsewhere.
If the loan officer keeps using such phrases as I mentioned above, seek help elsewhere.
One pet peeve!!! If your lender misses your settlement date for any reason, seek advice quickly from another loan officer. I have heard some borrowers have their settlement postponed up to 3 times. Don't wait nor trust promises that will more in likely be broken later on. It happens.
If your lender denies your deal the day prior or the day of settlement, don't listen to them telling you that they are working on a new solution. And then for them to tell you to hold tight. Seek help elsewhere immediately.
In regards to out-of-state loan officers? 70% of my business is out of state. It comes down to the ethical and knowledgeable loan officer. It doesn't matter on location....
And for more red flags, please read this.... As a consumer, beware of these Red Flags !!!

One last piece of advice...(please read) stop listening to the media... there is mortgage money to still lend.

FHA loans & mortgage advisory - Part 1 - Understanding loan officers

FHA loans & mortgage advisory - Part 2 - Understanding mortgages & principals of mortgages

- FHA Loans - Conventional Loans - VA Loans -

Experience & Knowledge at its BEST !!!

____________________________________________________________________________________

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 !!!!!

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Jason Sardi

Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC

Your Agent for Life

Jeff - Very timely thoughts. Solid advice & sound education are more needed than ever. As a Loan Officer, one of the things I will tell people is that if I don't know the answer... I will tell them I don't know and find out the answer for them. Anyone coming off like they know everything probably know very little.

Nov 04, 2008 05:50 AM

William J. Archambault, Jr.

The Real Estate Investment Institute - Houston, TX

Nice is as least a better reason than he claimed the lowest rate! Most people get screwed by some one they thought was nice.

Nice is good, but blunt is more productive! It's amasing when the job is successful how even the most rude can be seen as nice.

Good job, Jeff!

Bill

Nov 04, 2008 06:36 AM

Larry Brewer - Benchmark Realty llc

Benchmark Realty LLc - Nashville, TN

Jeff - THanks for the advise. You never know when a mortgage person is stringing you along.

Nov 04, 2008 08:37 AM

Karl Peidl

Moorestown, NJ

Accredited Loan Consultant

Jeff - Another post full of great tips. It amazes me (and scares me) when hearing of consumers that are taken advantage of or misled even after they have seen warning signs. To me, education will always be the key.

Nov 04, 2008 08:54 AM

John Cannata

214-728-0449 http://TexasLoanGuy.com - Frisco, TX

Texas Home Mortgage - Purchase or Refinance

Jeff - I would rather hear your story than mine. I have a buyer who shopped me (as they should). He was not recommended to use me, so it was something he felt he had to do. Not a problem. To his surprise, he was able to trust that I was giving him a great deal. It was a 1/4% lower than his current lender and another company he called. Not because I gave this loan away, but because this guy has over 800 FICO with a large down payment and verifiable income (did I mention his DTI was 26%). This should be a 'no brainer'.

Anyway, he got his hair cut and his hairdresser told him to negotiate further. I know what you are thinking.. I just read about this in a post a few days ago... ME TOO!! I laughed and thought 'that had never happened to me'. Then, it happened 2 days ago. Unbelievable where people get their advice from. You can't trust a long time LO but let's trust the person cutting my hair. I've debated blogging about it, but I just read it happened to someone else.

Nov 04, 2008 09:07 AM

Paul McFadden

Responsive Pest Control - Seattle, WA

Pest Control, Seattle, WA.

Thanks, Jeff, for the tips. I agree with you. I seldom do out-of-state loans and don't recommend them for purchases at all. Refinances may work although alot of times I'm not as competitive as a local loan officer would be. Take care.

Nov 04, 2008 09:19 AM

Thesa Chambers

West + Main - Bend, OR

Principal Broker - Licensed in Oregon

Jeff - I understand - I get it and go through it - I dont think it will ever make sense...

Nov 04, 2008 03:49 PM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

JASON..... . solid and sound advice, with education is everything needed when it comes to mortgages, especially more than ever before. We just need to keep putting this out there. And yes, those that usually come off knowing everything, know little... usually... thanks

WILLIAM..... . that's me, Blunt Belonger.... do I want to woo you with niceness and promises? Sure, but then I couldn't sleep at night, because I don't bait and switch. In any case, thanks for the compliment.

LARRY BREWER..... . no, you really don't, which drives me crazy... especially when I have spoken to a potential client and I know the other person that they are leaning to is lying to them or misleading them... but hey, you can't focus on that, but move forward. thanks

KARL.... . yes, even after they have seen the warning signs... just as my example... she still feels obligated partially to the other loan officer, because he was 'NICE'.... I wonder if she'll feel the same after he baits and switches her... or when she doesn't go to settlement.

JOHN..... . hey, negotiate all you want is what I tell some people... but I won't be there to answer your questions after application.... yes, I have told some people in the past that they won't get service if they want to cut my commissions... or, we can play the bait and switch game like many others do when they give something that can't happen or under false pretenses... thanks for sharing.

PAUL..... . you agree with me on out of state loans? Actually, 70% of my business is done out of state. And it doesn't matter if it's a purchase or a refinance.... in my honest opinion of 16 yrs, it shouldn't matter what type of loan they are. my whole point is that it comes down to someone knowledgeable, reliable, and ethical.... while all the time, educating their client.... thanks

THESA..... . huh? you understand but then say that it will never make sense? Now I am confused... ;o)

Nov 04, 2008 04:11 PM

Fred Chamberlin

Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA

Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Jeff - What can I say, when you are right, you are right. I guess it just pays to be nice....but how can you be nice if you don't call?

Nov 05, 2008 05:59 AM

Gerry Suarez Jr.

New American Funding NMLS 6606 - Orlando, FL

FL Mortgage Guru

Jeff,

You know I will always tend to disagree with you regarding the local issue, but again it's because I feel it's so important to attend closings and that's difficult to do from a distance. :-))

You obviously have managed to provide stellar service to your customers from afar and I congratulate you. If I can urge you to have one more "red flag" it would be "when a loan officer doesn't thoroughly explain the home buying process"; but then that relates the basis of your post-Communication!

Gerry Suarez, Jr.

Your FHA Loan Pro!

Nov 05, 2008 06:10 AM

Russell Lewis

Realty Austin, Austin Texas Real Estate - Austin, TX

Broker,CLHMS,GRI

Jeff, I really like this post. It's honest, articulate and informative. You are the exception in an industry that harbors many who know or care little about the business. Yes I am talking about all facets of Real Estate and justwanted to say that you are a breath of fresh air! Thanks for raising the standard!!

Nov 06, 2008 12:20 AM

Gwenn Tanvas

NEXA Mortgage LLC an Equal Housing Lender NMLS # 1660690 - Appleton, WI

The Mortgage Gal, 920.267.7891~ SMART - INNOVATIVE

Jeff - I could not agree with you more - Knowledge is Power and I feel we have a duty to educate and protect the consumer. I too love helping customers and often time go 5 additional miles -

Great Information - Great Post

Thanks

Nov 06, 2008 10:59 AM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

FRED...... . sure, it pays to be nice. But I think you lost me... how can you be nice if you don't call? Who? You or the borrower?

GERRY...... . yes, we will always disagree on this part. Why? How many financial planners do people deal with that they might never see? Or those that buy stocks from brokers, that they never see? Or their homeowners insurance? The only reasoning out of state lending got a bad name was because of the unscrupulous lenders and loan officers that just didn't care. Those that would sell their parents a bad loan. Those with poor customer service, because they knew if they screwed up, that the borrower wouldn't drive 5 states over to complain in person. I will also disagree because I get at least 1 e-mail or phone call a week in which the borrower is dealing with a local loan officer and they are unhappy for many reasons. I just got one yesterday, who lives in CT, who was referred to their realtors loan officer. This realtor said that their loan officer will give them a very good rate. Here is what the client briefly told me in an e-mail...

"Hi Jeff,
oh yeah and i asked him for a good faith estimate several times and still have not received one, not to mention he barley ever picks up his phone. I think the only reason why i've stuck with him this long is because my real estate agent recommended him and said he would give me a really good rate"

Yes, I love going to my closings... I love shaking that borrowers hands and in some past cases, giving each other hugs. Attending a closing is semi important. Yes, it'c closing the deal. Possibly to answer any questions that they have at the table. But here is the reality of it... I know I won't have problems at the closing, because I don't bait and switch... or add fees at closing. If they have questions? Not a biggie.. I speak to the borrower the day prior to closing and tell them that if they have ANY questions, to call me on my cell. I pick up my cell 98% of the time it rings no matter what anyhow, unless I am in a meeting or.... well, you get the point. And 99% of the time, we go over the HUD the day before closing anyhow.

In regards to not explaining the home buying process... yes, that is all part of the communication. I did a rent vs buy series a few weeks ago. This weekend, I will be doing a first time homebuying series. The process is really not hard to explain and is actually easy to understand. Overall, as I have mentioned before, 70% of my business is done out of state. Once they trust me and understand that it is no different than if I were in their local area, it becomes easy. It's the bad press and media from loan officers and realtors.. and the media, that say out of state lenders are bad.

The funny thing....

I closed 10 loans just in 2008 that were told by other lenders that they were qualified and or approved to buy a home. All 10 consumers found me on the internet, ranging from Florida, Virginia, New Jersey, and Pennsylvania, because the day prior or the day of closing, they were told they couldn't help them buy. I closed all 10 loans and there was nothing illegal about them.

Sorry for the long winded comment.... but I try and preach this, that some loan officers out of state are actually better than your local loan officer and or lender. We all can find those types locally. It comes down the ethical, knowledgeable, and reliable loan officer.

RUSSELL...... . well, thank you very much for those kind words. I truly do try to live up to that. We all have our moments though... but just trying to treat others the way that we would like to be treated is so key. Thanks again...

GWENN...... . I do feel that we have a duty to educate.... and I actually use that as reverse psychology. Meaning, I point out things that others should have mentioned. And if they didn't, I spin this back to the consumer and ask them, "do you see where I am going with this?" Once they understand, they get a better idea of how loan officers should be treating them. Overall, thanks for the polite compliment.

Nov 08, 2008 02:40 AM

Gerry Suarez Jr.

New American Funding NMLS 6606 - Orlando, FL

FL Mortgage Guru

Jeff,

Not long winded at all when the point needs to be made, and your point is so important. You and I and so many other lenders on this site are conscientious about our work. THAT is what makes us stand out Jeff. We really put our hearts into it and someone who is just in it for a paycheck will never be able to stand up to that. I respect you deeply for knowing well enough to navigate differing markets across state lines because I don't think I'd be capable of doing it effectively. That's why I'll just stick to Florida!

Regarding attendance at closings, I feel it's such a big deal for the reasons your mention, as well as because it allows me to move on beyond getting the loan. I emphasize (usually for the 4th time) to all my customers regarding anticipated changes in their property taxes and the importance of filing for homestead exemptions. Ultimately though it's been very powerful for me to be able to tell my customers up front "I will stand by my figures on your good faith estimate and will be at the closing with you to prove it". The peace of mind I have seen that impart is just what I strive to make my customers feel. I don't meet quite a few of my own customers though, since I do cover the entire state so I know what you mean.

Sorry for the long response on my part. I'm off to look for that 1st time buyers series! Please keep up the great work!

Gerry Suarez, Jr.

Your FHA Loan Pro!

Nov 10, 2008 04:18 AM

Anonymous

b4its2late

Since this site is full of loan officers that seem to be fairly honest, I need to ask you all a question. My young daughter purchased a home 2.5 years ago and since the day they moved in, they have not been able to afford the payments without parental assistance. They have what is considered to be a subprime loan although 2.5 years ago we didn't know what a subprime loan was. Long story short, we have been giving them a hundred here, a hundred there, to make ends meet all of this time. My daughter lost her job of 7 years in 2008. It took her 3 months to find another one, making $10,000 less a year. We were in constant written and oral contact with Wells Fargo the lien holder but they would not talk to them because they were not behind on their payments. They didn't care that she was draining her 401K and we were then giving them thousands to help. Long story short, the 401K is no more and in November I sent them to MD Hope counseling and told them to stop paying the mortgage so that they would talk to them about a modification. I also decided to stop putting my money into a lost cause and instead use that money to get them out of this mess. Wells Fargo denied their request for a modification and the counselor advised them to go to legal aid to have their records reviewed for fraud. I got the records and began reviewing them after having worked for attorneys most of my life. I could not believe what I found and that leads to my question. The application they signed off on the day of settlement and dated for that day does not contain all of their debts. They were not married when they bought the house but are now. None of my daughter's debts are listed but her salary, employer and everything else about her is. She had a $583 car payment that was left off of the application. In addition, we believe that my son in law's salary is incorrect by about $5,000. Is it normal practice for loan officers to leave this crucial information off of applications when it would affect the debt ratio? There are not two application, one for each. There is one with both of their information on it and signatures on it. I am so freaking mad I could spit nails. I wish I had looked at these papers years ago I could have saved us all alot of grief. I even spoke to the loan officer one month after their settlement because I KNEW they should not have gotten that loan I just couldn't figure out how they did.

Jan 22, 2009 09:19 PM

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