#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!
#WhackedOutWednesday – Get your “Free Report” annually! If you’re looking to purchase “anything” in the near future it’s a good idea to take advantage of the FACT Act (FACTA = Fair and Accurate Credit Transactions Act)! The only place authorized under the FTC and credit reporting agencies (Experian/Equifax/TransUnion) to provide YOU a FREE CREDIT REPORT ANNUALLY is what I’m talking about!
You see what’s whacked out, is people right before they buy something “big” like a car, house, boat etc, should know where you stand. Most do not know. Today I’ll give you all the credit “tips” the pro’s sometimes have you pay for. What you need to know, and need to do with credit is all here. Most people just don’t know what they don’t know, or pay off their credit bills each month thinking that’s a good idea. (It’s not) Credit is imperative for insurance, for buying things, for jobs sometimes, for financial fitness. Your key points are below! ↓
Open new accounts every several years. It’s actually a weight on your credit score, if you just have credit cards for 10 years and no new credit added, that actually hurts you. Maintain and show the bureau’s you can “manage debt” as this is what gives you credit anyhow. So that means DO NOT pay your credit card off every month. What you want to do is maintain these two ratios; Either revolve less than 30% of the balance at all times (which gives you a better score) or revolve less than 50% of the available balance at all times. For example, if you have an available balance of 1k, do not revolve more than 500 dollars, the minute you go over that 50% mark, the bureau’s actually mark your score down.
Another factor is “type” of credit and payment history. Now it’s kind of a given that you should actually “pay” your debts every month, but this seems to be news to some people. lol. Second is type, when it comes to the type of credit, it’s good to have a mortgage, a secured note (like a car), and then 3 or more revolving lines of credit. (all with balances less than the ratios noted above) In all my experience in the mortgage industry (15 years +) I would say of the thousands of credit reports I’ve seen, the best scores (750+ FICO) and credit always seem to have at least 5 trade lines. (as mentioned) So if you think paying “cash for everything” is a good idea your totally wrong.
Credit is actually what #MakesTheWorldGoRound so it’s important that you do somethings to maintain and show you can manage debt. Debt is not necessarily bad, however, there is such a thing as bad debt and good debt. (but that’s another blog for another day) If you want your FREE REPORT — CLICK HERE!
#WhackedOutWednesday – Rule of 36! Too bad many are not taught some of these finance 101 philosophies or should I say standards. There’s a common misconception to finance we (all in mortgage industry) should help consumers understand. The rule of 36 is that you recoup your costs, or gain an ROI in 36 months or less. This pretty much goes with everything.
If you take money out of your 401k and have to pay it back, then make sure you are done with that payback in 36 months. If you have to pay costs inside of a loan or out of pocket, you should see some ROI or recoup-ment of costs inside of 36 months. Weather that comes from appreciation and equity position, or that comes from saving money monthly. That savings should help you recoup the costs inside of 36 months.
General rule of thumb, is that you should not be including the escrow/impound account you get back from your old lender, nor should you be counting the monthly payment that you skip when you refinance. (interest is paid in arrears people). However, all of that should be part of your “benefit sandwich” that is explained to a client. This concept, standard or philosophy of the rule of 36 applies to a lot. If you put your money “into” something you should see a return on your investment inside of 36 months. (3 years) In the mortgage world this is standard in many cases to prove a worthy and justified case to refinance. Called a net benefit.
In some loans such as VA IRRRL’s (VA loan – Interest Rate Reduction Refinance Loan) and FHA streamlines these loans enforce a net tangible benefit for the client. They must lower rates by a certain percentage, save x dollars or recoup costs inside of 3 years. For the average consumer this concept may not be understood. But in the mortgage world it happens all the time where LO’s attempt to complete loans that make no financial sense for the consumer. Make sure your loans make sense and do the right thing. Otherwise it’s called equity striping.
#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!
#WhackedOutWednesday – The “Gold” is in the follow up! #LeadWeek – We’ve been going over what you need to know, and be doing to help you gain more leads online and off this week. Today I go over the perfect anatomy of a well rounded campaign to generate leads. From start to finish. I’m also “giving away” the 10 days of pain email campaign, that’s proven to work and convert. All I suggest is you add your virtual application to the emails and work the leads.
#TodaysTool – Is the best platform to use to create the advertisements, and embed your 10 days of pain follow up emails to all leads. All in one. It’s #Phonesites! I even made an investment campaign ad just yesterday for one of my broker’s. My suggestion, use this software to make small and larger campaigns on an ongoing basis. You can use it to boost listings, to open houses, to any event you do, or just direct mortgage ads or a first time home buyer funnel. This is it — CLICK HERE!
When it comes down to it. There’s people that get it, people that don’t want to do the work and would rather have someone else do all the marketing, and people that want to learn to do it themselves. I am offering “major discounts” on a complete done-4-you system this week. I’ll highlight that tomorrow. hint hint. But if you’re looking to do ads and gain leads, don’t let costs of setting it all up stop you. Hit me up here – Email me No joke, it’s Whacked out Wednesday, people either do the ads on their page (and waste money) or don’t have a converting follow up system to help them. (I’m giving that 10 days of pain email follow up free – again email me)
I want more #MortgageBrokers seeing success with leads that we can generate business from together. Remember I provide wholesale lender options for loans. #GetOnPoint with #BluePointMtg! Of course – Click here to sign up!
#WhackedOutWednesday – FHA DTI Buckets are the most commonly asked about question in the last several months. It never gets old going over this. DU has these numbers embedded in it. So if you follow the general rules here, you can look at a 1008 and determine if you have a loan without even running DU. Know these three buckets inside and out.
Sure FHA allows up to 57 DTI, or 56.999, BUT, that’s not going to fly with a 585 FICO, it just isn’t. The second bucket would be your magic number more than likely, or something close to it. ↓
Get with the pro’s already to help you structure your loan, and actually close it. After all funding loans is what gets you paid!! $$ Don’t get stuck with loans you can’t close, structure it right in the beginning. #GetOnPoint with #BluePointMtg! CLICK HERE to sign up and be the newest Mortgage Partner to our wholesale family! #LetsDoBusiness
I’m in the office helping LO’s structure and close loans. All new LO’s that send in their first deal in April get an additional .25 price incentive. (excludes Non-Agency and must be locked by April 3oth)
#WhackedOutWednesday – LOE/LOX – I don’t care what you call it, I call it a story. Each loan has one, and sometimes individual conditions require more explanation. Why not LOE/LOX it? More LO’s need to do this with conjunction with their processors.
It’s “Whacked Out” that more LOE’s are not in loans. I’m a fan of making sense out of things, and helping the underwriters “see the light”. Help them by telling the story ya’ll. The more you do this with your loans (easy one’s or hard one’s) the more loans you will close.
In some cases, less is more, see your AE if you question what information should be inside a LOE/LOX. I’m always here to help!
Don’t get stuck with loans you can’t close! That’s the theme right, LOE/LOX it! Maybe it will make the underwriter feel all warm and fuzzy! GOT AN I GOTTA GUY QUESTION??
Text the word “Juiceman” to 33655 and download my app. Then submit away on any scenario and I will help you. Or just CLICK HERE and send me an email! 🙂
#WhackedOutWednesday – Why Mortgage Brokers are Better!! Today I go over 5 advantages of working with a #MortgageBroker for everyone to know. Tomorrow I’ll go deep into one of these advantages. Today I wanted to highlight a few things that stick out to me that the general public and LO’s at banks should know. These are reason’s why a #BrokerisBetter.
If you’re a mortgage Broker and want to #GetOnPoint with a #WholesaleLender that can add #Niche programs to your lending arsenal – CLICK HERE For me I try to add value many ways, not just know guidelines and help get a loan funded. I help my broker partners build their business. #LetsDoBusiness #BluePointMtg
#WhackedOUTWednesday – #GuidelineWeek – With the most frequently asked questions about #FHALoans we will have the “whacked out” part all integrated with today’s episode. LOL.. Seriously these are the guidelines you want to know on FHA for time lines. I go over many more in the next two days. But this is the area of 80% of questions monthly. BK’s and Foreclosures and of course student loans, collections and disputes.
I’m talking to more and more to LO’s all the time about what the difference is between Retail and Broker. If you’re a LO and want to know about the #Wholesale side of things feel free to reach out to me. I’m #HereToHelp!
I’m helping rock stars become Brokers, helping LO’s turn into rock star producers, and getting more and more loans done every month. Want to talk about growth together?
Don’t be Whacked OUT and not reach out, send me your Whacked OUT scenarios, I’m in the office helping Whacked OUT loans comes to life! 🙂
Text the word Juiceman to 33655, download the app and you can send me various messages. Via App, text, email heck you can even call me. If you wanted to price a loan out you can use that app too. Go ahead compare your retail rates to my wholesale rates. My products and program matrices are even open portal. Feel free to poke around. All located on the app. Send your #WhackedOUT scenarios thru the app too. Go head, text that word – “Juiceman” to the number 33655.
#WhackedOutWednesday – Buyer’s are Liars!! Yep I said it! It’s whacked out but the truth. And the biggest part of the lending equation that LO’s need to check up on. I teach and preach best practices for lending in the mortgage industry. My goal is to help you get to the closing table. So when your taking an application and inputting what the Liar says, you have to remember to go back and validate everything. This is what underwriting does anyhow. So might as well prevent issues in underwriting yourself. This means everything in my book. You need to look at the bank statement balances and deposits, you need to analyze the pay stub for deductions, you need to calculate the income yourself, you need to read the title report, inspection and appraisal.
While some of this is mortgage 101, the fact remains many just take an app, gain the supporting docs and shove it in the file without ever reading it. Remember buyer’s are liars! ↓
I have this group of badass originators that collectively help each other, and many different posts on tools and discussions on marketing occur. Feel free to join Sales Talk with Mortgage Pros group on Facebook today! My goal really is to provide as much value as I can to the everyday originators in the trenches making it happen.
I do this various ways and my main gig is helping #MortgageBrokers close more loans. I do this on a wholesale sales level with an awesome wholesale niche lender to offer more options for your clients. Don’t get stuck with loans you can’t close! #GetOnPoint with #BluePointMtg today. Partnering with Mortgage Broker’s across the country everyday to make an impact in pipelines. GET SIGNED UP HERE!
The JUICEman! 