#WhackedOutWednesday – Important parts of loans are everywhere! However, there are certain things that can make or break loans. And this is why I do whacked out Wednesday shows to help LO’s know what to avoid or to do mortgages right. So check it out, the 1003 and the CD are the heart and soul of a mortgage loan. The two biggest mistakes on the 1003 I go over, and the balance of a file prior to the final CD is talked about. ↓
With so many moving parts in loans I’m certain that you have made mistakes in your career just as I have. The two best practices I share today are; 1, garbage in, garbage out. If you input numbers without breaking them down, you will have issues with cash to close, to balancing of the file, to getting “fake” DU findings. Meaning they are not right. Number 2, is the CD. This should happen with #Wholesale, but it doesn’t. Most retail banks often require a LO to review a CD and sign off on it prior to even sending to a client. It’s a best practice, and should be done with Brokers. Seriously. If you don’t balance your file prior to closing, you will get to escrow and find out sellers concessions are left on the table, or something is different in your structure than you promised the client or expected. Balancing a file should happen upfront, but often times is isn’t. And then left for the processors to view, and they don’t know what YOU sold the client. It is WHACKED OUT that the details of the transaction are not married with LO approval until the end. Don’t be that guy/gal!
As I always do, I offer my clients help with structuring the loans fees, structure, guidelines etc. My role is to be your caddie on the side as your the golfer in the transaction moving the ball along to the hole. (closing) Let’s do business and make it happen together! CLICK HERE to sign up!
#ThursdaysThoughts – It’s been a processing week, and we went over all stages of a wholesale loan. Today is one of the most important, it’s #BalancingYourFile! This means you make every match from the lenders system to your own. You double check your cash to and from the client, and see that the lender matches your numbers. The biggest downfall is when LO’s don’t balance their file and then have to make last minute changes due to not having the right structure.
Sure things change in a loan from time to time, with low appraisals, to addendums with seller concessions changes. These should be registered on your end so you know exactly how the file should shake out, and there’s no question on your end what the loan should look like. When you’re ready to submit the last of the last conditions to CTC your file, my biggest suggestion is to send the lender a “mock” CD or HUD showing the exact breakdown of your file. That way the structure is verified in the process and you have no closing surprises or last minute changes. Especially after the CD goes out.
Balancing the file is so important at the end, and easier to do if you set up the loan right to begin with. Double check your lock and details of transaction, and provide the lender a “golden platter” to make an easy exit to docs! #ThursdaysThoughts #StayJUICY #SellWell
#WhackedOutWednesday – Oh YEAH… The struggle is real folks. Funny thing is some LO’s don’t take the time to do this stuff. They sell a file, throw it to a processing queue, and never attempt to “see” how the numbers shake out until the end. First thing firsts, credit! I had a post in my group, Sales talk with Mortgage Pro’s not to long ago where someone didn’t know how the pricing was calculated with a credit that had two duplicate scores. Pricing is apart of the balancing act too, not just credit that gets you there. Obviously both play hand in hand.
What I suggest, is not to just set it and forget it. If you make changes, like any and all, you should see how the file balances and not just the fraction, the dollar amount. Actually balance your file along the way. Want to be really high level, I suggest that every step you get exact fees, like the title report, or as 1004D costs are added etc, you re-balance your file. And actually update the client. In essence the client should get a break down every week on how their file is coming together. Just my opinion.
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#WhackedOutWednesday – What a great success story to use as an example, a Broker of mine recently closed a FHA 203H loan, where the client brought ZERO down and gets a check for 4 grand at closing!! Talk about balancing a file and maximizing the benefit for the borrower. What a great success story. \
It is #WhackedOut that most LO’s and Broker’s either don’t know how, or don’t take the time to do this in advance to advantageous to the borrower. Many just let the escrow’s/title and the closing docs be minimized or let me say, not maximize the seller credits if any. I personally preach and teach LO’s to help them balance their files in advance, know exactly how the file should unfold and hold the hand of escrows and even the lender if needed to be the best situation for the borrower.
#WhackedOutWednesday – Back at it with the end of the month closings. Balance your file, put in your locks price, estimate your impounds based on information on title, the cash to close should NOT change drastically. In fact, the one thing most will not have in advance is the actual “aggregate adjustment” from title. That’s the only number really that should change what your client is bring to the table. #SellWell
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