FHA Loan Tips & Mortgage Shopping Tips - Don't be caught with your pants down!!! - Part 1 of 2

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

 

caught with pants down

How many of you feel lost out there or even get help from someone such as a realtor letting you know that they can have their mortgage loan officer help you with your loan, yet you could still be lost. Not all referrals are good ones, just food for thought. I know this, because I have seen it happen more than it should, after a borrower comes to me after they had used someone else that was recommended. No, I am not perfect. But there is a lot more than just telling a borrower a rate and costs after looking at a credit score.

This post is not to point fingers, but to educate not only the borrower/consumer, but the realtor and some loan officers that might just do the basics. What do I mean about the basics?

Example :

Borrower : I am looking for the cheapest mortgage with no points. What can you do for me.

    Loan Officer : What is your credit score?

Borrower : 659

    Loan Officer : I could do 5.25% with zero points.

Borrower :  Sounds great.  Thanks and I will get back to you.

 

 

 

Important Update (example above) :

You should have received a Good Faith Estimate when someone gave you a quote.  To show rate, points, and fees. And that loan officer should have asked about 10 basic questions, which I will talk about below. Important news now on this….  As of January 1st, 2010, there is now a new law in regards to RESPA and new disclosures. Please read below…

 

 

 

Mortgage Goals

As of January 1st, 2010, no loan officer and or lender will be able to give you a Good Faith Estimate upfront when shopping for a mortgage. There will be about 6 triggers that have to take place for them to offer the good faith estimate.  I think this will hurt shopping for a mortgage now more than ever before.

What has always been a pet peeve of mine is that many loan officers just give you what you want to hear. Yet they don't ask you some very important questions. One of those main questions should be about your goals, no matter if you are buying or refinancing. What questions should they be asking?

1. My first and biggest question. How much of a mortgage payment would you be comfortable with?  A payment range, to include taxes & homeowners insurance.

2. How long do u plan on staying in the house. Yes, the borrower doesn't have a crystal ball, but many still have an idea. And this question should be broken down to 3 years, 5 years, and 7 years. Please read : My 10 top questions when interviewing a borrower.

 

 

 

2 very important mortgage tips :

1. Credit Scores - There are still some lenders that can do credit scores under 620, down to 550. Beware, they are almost impossible to close. I am getting about 2 e-mails a week now from borrowers that were told no problem, and the lender can't close. There are many reasons for this.

2. Making offers - I am also getting e-mails from those that just put an offer in on a house and now want to see about getting a mortgage. First and fore most, speak to a well qualified loan officer. And even though this loan officer should be interviewing you, interview them. Truly understand who you are dealing with and the company that they work for, no matter how you got their name. I can't stress this enough. SO much can be found on the internet about individuals and companies now.

 

 

 

Summary : Overall, there are going to be more issues when moving forward in 2010. Any loan officer that gives a true Good Faith Estimate upfront, could very well be out of compliance. Yet, if we aren't allowed to do this, how can a borrower shop effectively?  What, just give the borrower a rate over the phone?  That use to get under my skin from day one in this business, because anyone could do that. Rates change daily also. In any case, I will be talking about the new RESPA laws and breaking down the importance of this in Part 2. For a quick example to a negative impact on this new compliance, Gerry Suarez gives a good example of this. The Road to Hell and the new mortgage disclosures.

 

For some more good reading :

The Basics of FHA Loans - Mortgage 101 for FHA Mortgages - 08/24/09

Credit scores - FICO scores for mortgages - I need a 700 credit score?

 

 

 

  • Mortgage shopping tips - The new Good Faith Estimate, 2010 RESPA compliance issues. - Part 2 of 2

 

 

_________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

HUD

 

 

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

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______________________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

HUD

 

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

 

Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

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Re-Blogged 12 times:

Re-Blogged By Re-Blogged At
  1. Brian & Marie Spray 01/03/2010 01:39 AM
  2. Marzena Melby 01/03/2010 04:50 AM
  3. Dana Wilkinson 01/03/2010 07:15 AM
  4. Gabe Sanders 01/03/2010 10:28 PM
  5. DeAndrea "Dee Dee" Jones 01/04/2010 12:36 AM
  6. Dennis Blackmore 01/04/2010 12:38 AM
  7. Broker Nick 01/04/2010 02:47 AM
  8. Monica Bourgeau 01/04/2010 04:16 AM
  9. Jason Kardos 01/04/2010 04:37 AM
  10. Rebecca Gaujot, Realtor® 01/09/2010 05:30 AM
  11. 1~Judi Barrett 01/09/2010 11:13 AM
  12. Tom Davis 01/23/2010 01:05 PM
  13. Rebecca Fisher 02/01/2010 01:12 PM
Topic:
Lending / Financial
Location:
New Jersey Camden County Cherry Hill
Groups:
Realtors®
Mortgages
All About Mortgages/Mortgage Networking
1st Time Buyers
The FHA Mortgage Group
Tags:
fha loans
mortgage shopping
mortgage tips
first time homebuyers
fha mortgages
fha loans new jersey
fha loans maryland
shopping mortgages

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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

MARZENA.... comment # 10 .... . thanks.. and yes, it's all about trusting the right people. The problem is, who and how do you trust?  Just because one says, "Trust Me"???

IRENE.... . my pleasure... i not only enjoy being on top of things, but it gets me business from blogging like this.

 

MARK.... . thanks for coming back... I agree with most of what you said. Sure, there should be more accountability placed on the consumer, but how does one know if it's the right info though?  Or information that is lacking.

In regards to checking with several sources?  You need to be very careful about this... hence why I wrote this blog.  Do two wrongs make a right? I actually had some call me once, that was told by 3 different loan officers, prior to talking to me, that they could get a loan even when on workman's comp. You can't... yet 3 people guaranteed him this, each took an application, and he was denied by each one 30 days later...  he wasted like 2 1/2 months on this. I use to tell clients to call 3 or 5 other loan officers, if they didn't believe me. Now I don't say this.

Overall, yes, I like the MDIA stuff, that if costs change, they have to be re-disclosed 3 days prior to closing.  Yet, in reality, this was kind of a hidden thing prior to the MDIA act, that lenders still had to re-disclose if costs changed prior to closing.... but it could be done the day of settlement. Thanks again for coming back and adding to this conversation.

TERI... . thanks for the support and for the trust. I should have this part 2 out by tomorrow.  And Happy New Year to you also.

STEVE...comment # 14. .  thanks for coming back.  Yea, I agree, I don't see this helping out. The good thing is that I was always a little higher on my GFE's...  I think some are going to use this to their advantage, to be higher on the estimates and maybe tell the borrower that they wil refund or credit... or reduce the costs at the end... yet, might not... or just say that this is what it is now. I guess time will tell...

jeff belonger

Jan 04, 2010 07:17 AM #33
Rainer
80,895
Gene perez
Greater Mortgage Solutions & Valley Hills Realty - Santa Maria, CA

I am looking forward to part 2 ,,, but I do think this year will be another interesting year in Real Estate

Jan 04, 2010 07:55 AM #34
Rainer
4,883
Frank Montro
Oak Realty - Chicago, IL
Top Producer

Jeff, Love your content! You obviously know your stuff! I agree with your analysis. Also, I've closed a lot of deals with Bank of America last year. They will go down to 580 with compensationg factos( good job history, a decent 401k,etc.) I've had zero problems closing with them on a 30 to 45 time period. Wells goes down to 600. As with any company, with the right loan officer, Wells can get a FHA done in 30 to 45 days.

Jan 04, 2010 09:47 PM #35
Rainer
205,545
Mike Warfel
Mike & Rita Warfel Real Estate LLC - Avoca, MI
Associate Broker

Thank you for an informative post. The loan industry is undergoing a lot of licensing and internal changes. The loan agent who can close a deal without asking for a share of the real estate agents commission to help with closing cost is sure appreciated. I work hard for the little that is left after everyone else gets paid and do not like to share. Hoping for the best in the new year.

Thank You

Jan 04, 2010 10:32 PM #36
Rainer
117,648
Beverly of Bev & Bob Meaux
Keller Williams Suburban Realty - West Orange, NJ
Where Buying & Selling Works

I agree this new ruling will hurt shopping for a mortgage. The scariest thing is that buyers aren't going to realize it until they are in the middle of it because they have no clue. It's important that we agents give them a heads up when we first meet them.

Jan 05, 2010 12:09 PM #37
Rainmaker
37,549
Leanne Zumbrunnen
Showhomes of Kansas City - Lenexa, KS

Jeff, thanks for the info. As a newbie realtor and stager I get so much out of Active Rain.  I feel all my time here pays off and I am ahead of the newbies that don't take advantage of it.  I am just beginning to work with lenders so this is very timely!

Jan 08, 2010 01:14 PM #38
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Tracy Santrock
Fonville Morisey/Santrock Realty Group, Inc. - Cary, NC
Raleigh - Cary Realtor/Broker In Charge

Great job on showcasing FHA loans - from the FHA Expert!  Also,  Congratulations on being the #1 loan officer in 2009 here on Activerain.  You deserve the kudos!

Jan 09, 2010 12:53 AM #39
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Wow, Jeff!  You DO know your 'stuff!'  I came by to congratulate you on the best of the best award and found this awesome post.  You are truly a wealth of knowledge and are you're most appreciated!

Here's to a fabulous 2010 for you!

Jan 09, 2010 03:03 AM #40
Rainmaker
2,428,697
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.

Saw your post and just wanted to say hi Jeff and thanks for all your informative post. I read them all the time or at least every chance I get.

Jan 09, 2010 03:17 AM #41
Ambassador
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1~Judi Barrett
Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Jeff!  Came here by way of re-blog.  Another great mortgage post! 

Need a mortgage in New Jersey??? Can't you tell that you need to call Jeff!

Jan 09, 2010 11:12 AM #42
Rainmaker
637,881
Don Sabinske
Don Sabinske, Sabinske & Associates Inc. - Zimmerman, MN
Sabinske & Associates Inc.

Thanks for the concise and to the point low down for the buyers.  It is difficult at best to explain this to people who have bought homes in the past and are now frustrated by the government's trying to protect them from themselves and others.  Everything gets so convoluted the more they "try" to help.  I get frustrated and it's no wonder the consumer is mad and confused as well.  Looking forward to your next blog on the subject. 

Jan 09, 2010 12:27 PM #43
Rainmaker
1,317,651
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

It is incredible how all of these changes are implented.  Some make sense and others are ludicrous. All we can doo is educate ourselves and our clients so everyone can make the best choices.  Please keep us posted as you learn more. Happy New Year Jeff.

Jan 09, 2010 02:56 PM #44
Ambassador
1,048,401
Robert and Lisa Hammerstein -201-315-8618
Keller Williams Valley Realty - Hillsdale, NJ
Bergen County NJ Real Estate

Jeff,

These are some scarey times we're in right now.  But still exciting! Can't wait to see how everything changes once again in 2010.  Was great to finally meet you today at Rain Camp!

 

Lisa

Jan 12, 2010 11:49 AM #45
Rainer
10,831
Eric Meruelo
Springfield, MO
Vice President / Sr. Loan Officer

Jeff, great information !  I have in this business for many years and  communicating to our clients is now more valuable and essential now than ever before. Have a great day !

Jan 12, 2010 01:28 PM #46
Rainer
117,860
Beverly Femia
BlueCoast Realty Corporation - Hampstead, NC
Broker Realtor Stager - Greater Wilmington, NC Are

I suspect "an interesting year in real estate" my be a massive understatment.  Fasten your seatbelt and hang on tight....

Jan 12, 2010 04:00 PM #47
Rainmaker
891,566
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

Jeff - I just wanted to say that it was great to actually meet you in person yesterday at Rain Camp.  Felt like I already knew you from your blog. 

Jan 13, 2010 12:44 PM #48
Rainer
334,480
Tom Davis
Harrington ERA,DE Homes For Sale, $$ Save $$ Buy Today ! - Dover, DE
FREE Delaware Homes Search!, $$ Save $$ - Find Homes! Delaware Realtor

It is an interesting year already!  Boy have we witnessed so much already!

I can only wonder what other changes are on the way this year!!

This will be a roller coaster year for everyone!

Thanks

Tom Davis

Jan 21, 2010 03:05 PM #49
Rainer
34,615
Rebecca Fisher
Winter Haven, FL

Thanks so much for this great post! I will be reblogging this in the next few days because it's timely and necessary information!

Jan 27, 2010 10:54 PM #50
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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

JEFF..Excellent Post!

HELPFULHANNAH

Feb 01, 2010 01:55 PM #51
Rainer
225,344
Dave Sullivan
Real Estate One - Birmingham, MI
Michigan Realtor with an investor viewpoint

what would you say the prospects are for 2013 for mortgages getting tighter?  and do you think the shadow inventory will bring down prices... 

Jan 03, 2013 03:48 AM #52
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