loan officer: Borrower DO's and DO NOT's for a smooth loan process
- 03/15/11 12:15 PM
I had one of the worst experiences of my career as a loan officer last month. I had been helping a first time home buyer purchase a short sale home for the past month. Everything had gone smoothly as the borrowers were very solid with good credit, a large down payment, and a stable job. The closing went smoothly and everybody was happy. The day after closing, I get a call from the funder expecting the good news that the loan had funded and the title company could record. Instead, I receive the dreaded news that the funder did a final … (2 comments)
loan officer: Preparing my Clients for the Loan Process Today
- 12/29/10 05:32 AM
I am finding lately that some of my clients that may have bought a home a few years ago and are now buying a home again are stressing quite a bit about some of the "hurdles" that they have to go through to get a mortgage. I am trying to think of ways that I can prepare these people for the new way of processing loans versus the way it was done in 2006. Let me first give you a summary of how loans were processed in 2006 versus today... Loan Process in 20061. Meet with your loan officer2. Underwriter then … (3 comments)
loan officer: Mortgage Logan Utah 2/19/2010: The 10 Year Mortgage Loan
- 02/19/10 02:11 AM
Everybody knows that there is a 30 year fixed rate and a 15 year fixed rate but most people are surprised when I tell them that they could also do a 10 year fixed rate. I'm not talking about a 10 year ARM that is amortized over 30 years. This is actually a 10 year fixed rate amortized for 10 years and paid off in 10 years. This is a loan program for those that hate debt and want some forced discipline to pay the loan off extremely quick. The interest rates on this program are great also. Today the 10 … (0 comments)
loan officer: John Neil's Mortgage Manifesto...For Realtors
- 02/09/10 10:06 AM
I wrote this with the idea that I could give it to Realtors to let them know a little bit about me and how I work as a loan officer. Let me know how I could improve it or if there is an element that is missing. Any and all suggestions or criticisms are much appreciated.
John Neil's Mortgage Manifesto...for Realtors Receiving referrals from Realtors is a vital part of my success as a loan officer. As such I am constantly thinking of ways that I can meet more Realtors and get to a point where they are comfortable to … (3 comments)
loan officer: Mortgage Logan 1/8/2010: Communication is key to a pleasant mortgage transaction
- 01/08/10 09:28 AM
I've heard some mortgage horror stories lately from borrowers that came to see if I could help them after their horrendous experiences. True Story #1 This borrower had gone to one of the "big banks" in June of 2008 and did a loan application for a refinance to take some cash-out for an investment property that he wanted to purchase. Initially his loan application was approved and the loan officer moved forward with the process (i.e. ordering an appraisal, title report, collecting necessary documentation, etc.). After 4 months of being jerked around, the loan officer not returning phone calls, and processors … (4 comments)
loan officer: Mortgage Logan 1/5/2010: What are your closing costs and interest rates?
- 01/06/10 03:01 AM
Whenever I meet with a potential client, "What are your closing costs and interest rates?" is usually one of the first questions. It's a good question and one that I would answer even if it wasn't asked. The problem with this question is that it usually comes at the very beginning before I know anything about the individual, their credit scores, down payment, employment history, etc. The fact of the matter is that interest rates and closing costs are going to be different for everybody depending on the individual characteristics of their loan application. Characteristics such as credit, the loan amount … (1 comments)
loan officer: Mortgage Logan 11/30/2009: Some things a "good" loan officer should and shouldn't do.
- 12/03/09 05:20 AM
The profession of loan officer has been beaten up pretty badly in the media as of late. We were blamed for the sub-prime crisis and consequently much of the problems in the financial system. It's obvious now that there was some unscrupulous lending going on. Many of the loan programs that got borrowers into financial trouble are gone and I suppose that many of the dishonest loan officers are gone with those programs. Even with all the changes there are still some bad loan officers out there. But there are also some good ones. It can be hard to know who is … (3 comments)
loan officer: Logan Utah Real Estate: 3 Reasons to put as little down as possible on your home
- 09/01/09 05:34 AM
The majority of first time home buyers that I have worked with over the last few years haven't had much of a choice with the size of their down payment. They usually only had enough for the minimum, which is 3.5% on an FHA loan or no down payment on a Rural Housing or VA loan. However, other clients have ample funds for a down payment and struggle with the question of how much to put down. They wonder if it would be better to put as much down as possible and have a low monthly payment or if it would be better … (0 comments)
loan officer: Buying a Condo in Logan, Utah? Here are some things to know...
- 08/31/09 04:54 AM
I might be biased but I think Logan and Cache Valley, Utah is the best place on earth and purchasing real estate here can be an amazing investment. Whether you are buying a single family home, a duplex, triplex, fourplex, condo, or townhome, you will be making one of the best decisions of your life (I left out "manufactured housing" because its just not a good investment, but that is another blog post). When you are buying a condo in Logan, Utah there are a few things you should find out... 1. What is the monthly HOA dues? This can … (1 comments)
loan officer: Logan Utah Real Estate - Preparing to get a mortgage
- 08/26/09 04:10 AM
If you are looking to purchase a home and you need to get a mortgage, there are a few things that you can do to help prepare yourself to be able to qualify. A mortgage is a big commitment and every lender wants to make sure that you are able to pay the loan back. There are 3 basic things that the lender is going to look at to measure your financial stability. They are 1. Your credit report, 2. Your assets, and 3. Your income. 1. Credit Report: Your credit report is your financial report card and it's imperative … (0 comments)
loan officer: Buying a Condo?...You will need supplemental insurance!
- 08/13/09 09:51 AM
In the past, if you needed a mortgage for a condo or townhome, the lender would allow a borrower to get a loan with the insurance that the HOA provided and didn't require a supplemental policy. This "blanket policy" usually covered the entire project and it usually only covered the exterior of the building and not the interior. For example, if the unit burnt down, the insurance would pay to rebuild the structure of the building but the condo owner would have to pay for the interior (e.g. sheetrock, cabinetry, floorings, etc.). It has always been recommended that condo owners get this extra coverage for the interior but … (3 comments)
loan officer: Deadline for $8,000 tax credit for First Time Homebuyers
- 08/11/09 09:59 AM
The Deadline for the $8,000 tax credit is technically midnight of November 30th, 2009 but the deadline for when a buyer needs to start the loan application is much sooner than that. With the new MDIA law, which enforces rules for the time that borrowers must have to review disclosures before closing, the # of days that it takes to process a loan from start to finish is potentially longer. This means that it would behoove borrowers to start a purchase transaction much sooner than the middle of November. If they wait that long, it's likely that they won't get to … (0 comments)
loan officer: Questions that a good loan officer should ask you during the loan application
- 08/11/09 07:16 AM
When you are meeting with a loan officer to take a loan application there are some questions that they have to ask. Questions such as... 1. What is your gross monthly income? 2. Who do you bank with? What is your current balance in those accounts? 3. Have you ever had any foreclosures, bankruptcies, tax liens, judgements? 4. etc. etc. Any "order taker" could ask these same questions, complete a loan application, and submit a loan for you, with no regard for your long term goals or needs. A good loan officer is much more than an "order taker" and will … (5 comments)
loan officer: Logan Utah Real Estate - Mortgages: How do I increase my credit score?
- 08/10/09 05:07 AM
If you are looking to purchase a home and get a mortgage, your credit score may be the difference in obtaining a decent interest rate and/or being able to get a loan at all. If you are looking to get an FHA loan you will need at least a 620 credit score with most lenders. The good thing about FHA is that the interest rates are not "credit score driven", meaning that the interest rate won't be determined by your credit score. On the other hand, If you are shopping for a conventional loan then your credit score becomes even more important. In … (0 comments)
loan officer: Logan Utah Real Estate: Watch Out for these Red Flags when shopping for an FHA Loan!
- 07/30/09 08:32 AM
Even with the recent changes in the mortgage industry and the added transparency of the fees associated with a loan, there are still some things that every borrower needs to be aware of when shopping for an FHA loan. Like it or not, not every loan officer has the borrowers' best interest in mind Red Flag #1: The loan officer tells you that your interest rate is significantly higher than the going rate because of your lower-than-average credit score. FHA interest rates are not credit score driven. Some lenders do have very small penalties to the interest rate for credit scores below … (0 comments)
loan officer: Will the ARM ever make a comeback?
- 05/21/09 09:28 AM
An ARM ,or adjustable rate mortgage, is a mortgage product with an interest rate that is tied to a certain economic index and that is fixed for a certain period of time (e.g. 1,3,5,7, or 10 years). After the fixed period the interest rate will periodically adjust as the economic index changes. In the mortgage industry, "ARM" has almost become a swear word. We can thank the media for this. So many bad things have been associated with an ARM... foreclosures, pre-payment penalties, rising payments, option-ARMS, negative amoritization, etc. The stigma has gotten so bad that I'm afraid that if I … (0 comments)
loan officer: What is a No-Cost Refinance?
- 01/29/09 07:47 AM
A "no-cost refinance" is one in which the loan officer pays for the borrower's closing costs with a portion of the rebate, or yield spread premium, that he receives from the lender. What this means for the borrower is usually a higher interest rate. And so the term "no-cost" is a little misleading because the borrower still ends up paying for the refinance through a higher interest rate. There are however some unique situations when a "no-cost refinance" makes the most sense. For example, when a borrower knows that they will sell the home within a year or two it probably … (0 comments)
I had one of the worst experiences of my career as a loan officer last month. I had been helping a first time home buyer purchase a short sale home for the past month. Everything had gone smoothly as the borrowers were very solid with good credit, a large down payment, and a stable job. The closing went smoothly and everybody was happy.
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