#WhackedOutWednesday – The 10 Mortgage Commandments! Funny as it is, people actually do violate these all the time and mess up their home financing. This is for all to know, to share, to educate clients, to help your loans close!! Bottom line the most dangerous “things” to do during the home loan process are itemized today as things “Not to do”. ↓
While funny and to a degree comical, these things are in fact the commandments anyone buying a home should follow. The most common in the world of mortgages, is the client showing up to closing with a new car/truck. The second most common is the furniture buy or the credit card discount that was so enticing to get. All of these mess up the debt to income ratios on a loan, and could potentially be the death of financing. Avoid these like the plague!
#MotivationalMonday – The biggest advantage any one LO can have over another to “win” the business is truly educating the borrower and not just selling them a loan with the lowest rate. It’s being a consultant, a financial advocate to the client to educate them about their own credit and understanding how guideline work.
Today’s video I go over some common “collection” questions and a way to look at a report to know in advance if the borrower will qualify. Without having to run DU. I suggest yes, you run DU to actually “read” what DU says. But there are some guidelines written in stone. You should know what to look for up front.
Some people are good at doing this and calculating DTI correctly to begin with. 99% of bad applications has to do with, missing information and or guidelines not understood or taken into consideration. This is absolutely one of them in regards to manual underwrites.
If you’re seeking leads to pull credit, I can show you how to generate leads organically, totally free! In fact, a buddy of mine is doing a special all this week, and if your serious to step up your marketing game, here’s the in! – This is for a plug and play listing magnet that will generate buyer and seller leads galore. You can use them to pre-qualify a client and then hand them off to a referral partner you have. What better way to get on a good side with the best RE Agent in town than give them leads. Click below and get ready to blow up! ↓
#MondaysMotivation – Guides for LO’s all week this week. We will start with a simple cheat sheet for DTI on FHA loans. A great thing to know, and guide to basically live by. Too many times I see LO’s wasting time attempting to put a file together that is way out of the ball park. And DU confirms my thoughts and then they ask me to do a manual, I tell them the same “chart” I go over in today’s video and tell them to restructure.
Use this as a guide;
#SellWell – If you are a mortgage Broker and you’re not hooked up with me, let’s work together in 2018!
#WhackedOutWednesday – No, not everything is always what it seems! It is “whacked out” sometimes. For example, depending on where you are in the Nation, Zillow house values can be 10,000 less than what they say your house is worth, or 20.000 more! Credit Karma is another example, they show you a 680 FICO but that is really your “educational score” not your consumer debt score. It’s typically 50 points lower.
This applies to business in my ways, especially if you are an LO whom gives leads to your referral partners. Are you actively following up to ensure that partner is calling those leads? How do you track that they actually are helping you? Or what about documents, like credit, and paycheck stubs, you know those have an expiration date?
How about HOI, this one is really “whacked out”, if I have HOI coverage in a file and the loan doesn’t close in this calendar month and rolls over to the 1st of next month, the lender won’t accept insurance effective on the 30th? It has to be effective the same month the loan closes! Here’s another good one, title work, why is it that fee’s change based on loan amount! You quote fees on a +/- 250k transaction just because the loan amount goes up by 1k or something the fees should change! (there should be a tolerance rule to this, like plus or minus 10k fees stay the same).
Bottom line is there are a ton of moving parts in mortgages, and each from credit, to appraisals, to HOI, these moving parts through out the working of putting together a mortgage need your help. “Whacked Out” or not, YOU are the missing link. The more educated you are on each of these topics as an LO, the better you get at putting together loans. When was the last time YOU read an appraisal report, or title report? Did you just forward to your processor and let them send it in? (WHACKED OUT)
Knowing what to do when, and if this, then that is key to doing mortgages in bulk for sure. And as an AE that’s my job to help. Sometimes people don’t know when to do what, but if your not sure, ASK!!!!!! #SellWell #Silencekillsdeals (now that’s Whacked Out)
Stop being mediocre and start stepping up your game. I can show you how to do more loans in so many ways. I even help others not even in my lender roster! (not whacked out) If you are looking for an AE that can help you put together loans, get them done, and help you with generating more deals in many ways, then reach out. I am seeking action takers! #ActionJackson Fill in the below form, I’ll call you right away! Let’s go, lets make 2018 your best year yet! Broker or Banker, doesn’t matter I can help the VP/CEO or the LO individually! What’s stopping you? – Fill in below ↓
#TwoforTuesday – Application guidelines today! And a cheat sheet for FHA UFMIP refunds! Got to ♥ it! Lender paid and Borrower paid I will be posting more of and how you Broker’s can WIN every deal no matter what any direct lender gives the client.
As a mortgage Broker owner, you should know how to go both ways, Borrower paid or Lender paid. If done correctly, you can effectively meet and beat any offer any “bank” gives your client. Rates are Rates, and more and more clients realize that there are combinations of rates and fees that go into loans. (well more LO’s are teaching this now more than ever before – Great work)
When a client asks for ARM pricing (Adjustable Rate Mortgage) you as an LO, must show certain things to them upon “Interest” and or applying for an ARM loan. Great Application guidelines to know! #Checkitout ↓
#TGIF – The Grind Includes Friday (everyday for me) 🙂 – Very frequently I am asked about rules of the 1003, and wanted to drop two commonly asked questions as guides today. Number 1, the 1003 is going to changed, yep you’re going to have to learn a new one! But not until 2019. So you still have 1 more year with the current version of the URLA. So good news there. Number 2, the most commonly asked question I get asked is about the work history. Most get confused about the rules for using income, and how to fill out the 1003. Let me clarify. – You need to detail a 2 year housing and a 2 year work history on the 1003. It’s as simple as that. If they have only worked at their current job for 30 days, just keep asking the client “where did you work prior to that?”. Make sure you detail 2 years as a history of working. Now high school does NOT count, but trade schools and college do. If there is more than 30 day job gap all you need to do is get a letter of explanation from the client (loe/lox). Simple. Number 3, the rule of 5. I love this rule. And many do not know it. So here’s a cheat sheet to refer too. Commission, bonus, over-time, self-employed or working two jobs are the 5 things in this rule. And really you only need a TWO YEAR HISTORY OF WORKING TWO JOBS AT THE SAME TIME! The rest of the rule of 5 you only need a 1 year history of doing. With exception of being self employed and actually working in the same field for 2 years or more, but you can be self employed for 1 year only and do a home loan.
Better yet, you can use our #SponsoroftheWeek PERFECT LO to help you take an accurate 1003 from the start! #SellWell
I’m growing again and today calling Broker’s I do NOT know at all. If you watch this, share it with a fellow Broker or Bank that could use a great Account Executive to help them close more loans and gain more business! #FilloutBelow
#TwoforTuesday – Two updates are in the horizon. DU 10.1 is almost here! The programming for DU seems to happen every year about this time, and it will be interesting to see what they do in the next year, year and a half with the GSE’s 7 year exemption coming up. Yep, remember QM was to make all loans at 43% DTI max! And the GSE’s only had a hall pass for 7 years. We are coming close to the end of this window, and will anticipate some announcements on this in the coming future.
#SellWell – Check out the #SponsoroftheWeek, LEAD POPS
#WhackedOutWednesday – Have a rate shopper that is stern about rates and costs and just has their mind set that’s all they want? That’s the guy you need to ask the most questions with, and dig the deepest to find out their WHY! He/She is trying to save money for something, what is it? What is the goal short term and long term financially for that person? Finding out these things can help you custom tailor a mortgage to help find a solution for that person to reach their goals.
Do not let the clients dictate the situation, take control over the conversation and start being a consultant to help them. Sometimes people forget they don’t pay rate, they pay a payment. And the sum of all payments due every month is what takes cash flow power away. It’s called your obligated debts. Heck someone who is self employed would benefit from a higher rate to begin with. There’s a fine balance of how it all works, I’m not a CPA, but if their mortgage interest is too little it could have less of an advantage to them on taxes. Just one example to think about.
It’s a full picture you must dig deep to find out WHY are they doing what they are doing! Where are their goals short term and long, and then how can you help them fabricate a plan to get there. And you do this with, in most cases, the biggest asset that client has. So, ask questions, don’t just take orders. Being a mortgage pro, is a form of consultation. When you approach it this way, your clientele will change. #SellWell
#TwoforTuesday – Two great products today I highlight as my favorite, FHA and VA for sure. While I love conventional and Jumbo loans too, my team shines with the Government loans. We do the real IRRRL, the right streamline, and our pricing is top notch. What I absolutely ♥ about them personally is the ability to help those clients that need help. Besides the VA loan is the best loan out there hands down. And of course they make for the best marketing campaigns and we can help a wide range of people. From 560+ FICO on up!!
If you’re not set up with a lender that can make these loans happen, hit me up, we can JUICE the pipeline together. Join Us In Creating Excitement and let’s create a campaign to help you drum up business! In my side of the business, the last thing I want to do is have a conversation where the Broker/LO says they have no business to send. So what separates me from the crowd is I help my Broker/Bank clients actively create leads, gain resources and tools to help them do more business. Let’s partner together!
If you have a fan page on Facebook or Instagram and are not gaining leads from it, I can show you how. The BLUEPRINT is here!
Growing my network to help others get more done. Fill in below and let’s see how we can help you, let’s partner together!
#WhackedOutWednesday – Today’s installment is all about collection accounts for FHA and Conventional guidelines. There’s some JUICE in here that you may not know. #Checkitout PS>>> I’m accepting transferred appraisals and new FHA submissions 🙂