Tag Archives: mortgage brokers

Your Questions About Mortgage Loan Officer

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Donald asks…

Was prequalified for mortgage, loan officer quit, is my approval still valid?

Me and my husband were prequalified for a VA mortgage in May and have been looking for houses. I hadn’t heard from our loan officer for a while and when I called I found out she’s no longer with the company! They transferred me to a manager and I got a voicemail and I still haven’t gotten a call back! Does anyone know how long our preapproval lasts? Can they take it away at any time? Help is appreciated! Thanks!

admin answers:

Her quitting shouldn’t matter.

You do understand that a preapproval does not necessarily mean that you’ll be approved, although if nothing has changed about your situation and the house meets all the qualifications, you should be OK.

Mandy asks…

what is the difference between a morgage broker & mortgage loan officer?

i want the definition of mortgage broker & mortgage loan officer.

admin answers:

There are two types of mortgage lenders, mortgage brokers and mortgage bankers. A mortgage loan officer can work for either a broker or a bank. A mortgage loan officer can be an employee or self-employed. Every State has different regulations governing mortgage loans and the loan officer. Most require a license and that license can only be used through a mortgage broker or banker. In otherwords you cannot do business independently, but must be done through one of the above, much like a realtors relationship with their broker. Mortgage banks and mortgage brokers have different regulations governing their operations.
A mortgage loan officer originates a mortgage loan for a borrower, escrow closes the loan. I am a licensed mortgage loan officer in Nevada and hope I’ve help to clarify the difference.

Lizzie asks…

I am looking for a Realtor and mortgage loan officer to work with. Referrals?

I am looking for a Realtor and Mortgage loan officer who is very familiar with and approved by the county for FHA loans and DAP programs for Harris County in Houston, TX. Recently I went through a nightmare of both. I did research and found a list of approved loan officers. I am speaking to one and its been two weeks and she still doesn’t have the information she needs? So I have decided to ask the community in addition to going through the list.

admin answers:

It is an international forum, you are unlikely to get the referrals you seek here. Especially when you post from Y!A UK.

Daniel asks…

What is the best state in the U.S to practice as a mortgage loan officer and why?

I would like to know the best state in the U.S where you can make tons of money as a mortgae loan officer.

admin answers:

Don’t focus on the cash. Focus on doing a great job for your client and the money will come, regardless of where you reside…

Robert asks…

How do you become a mortgage/loan officer?

Does anyone know they steps to becoming a loan officer that is free of gimmicks

admin answers:

Depending on where you live, licensing may or may not be involved. I live in Michigan, and am a mortgage banker with Quicken Loans. They are a direct lender, so I interviewed for the position just like any other job, then they hired me, trained me, and provided the materials needed so I could obtain a license in the states that required it. If you are going to be new to the mortgage industry, I would suggest that you work for a direct lender, preferably a larger company that offers training so you can get a full understanding of the industry and how it works. Most larger companies have detailed training programs that will teach you about mortgages and also how to sell if you have not done so previously. Mortgage brokers tend to be smaller companies that don’t have the resources to provide you with all the knowledge you will need to be successful. If you decide you would like to be a broker, you can always do so, but I would start with a large company with a good training program so you can take that knowledge with you. Personally, I love working at Quicken, and we have offices in Detroit, Phoenix, and Cleveland. If you happen to be in any of those locales, shoot me a message and I can put you in touch with the right people.

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Mortgage Brokers Guide to Lending

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Product Description
The information in this guide will help mortgage loan originators close more transactions, says author Martin Koellhoffer. It will help loan originators who have recently come into the mortgage lending business understand the fact that 95% of people who want to purchase real estate can do so, Koellhoffer writes. One key factor in obtaining a mortgage loan approval is for you the originator to have a better understanding of the wide range of loan programs availab… More >>

Mortgage Brokers Guide to Lending

Reverse Mortgage Brokers – Settle For The Best

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With the dramatic increase in senior citizens turning to reverse mortgages as a way to finance their retirements, the importance of having ethical reverse mortgage brokers has increased dramatically as well. Ethical standards for reverse mortgage lenders have been established in the National Reverse Mortgage Lenders Association Code of Conduct, but not all reverse mortgage brokers deal with members of the NRMLA.

What Your Broker Should Tell You

Many people who decide to take a reverse mortgage rely on their reverse mortgage brokers for information about the costs of the process about which an ethical reverse mortgage broker will be forthcoming. Yours should be willing at the very least to tell you the following:

The cost of your application fee may not be refundable, so potential borrowers clarify that in advance. The application fee covers the cost of a home appraisal and a check to determine if the potential borrower is in arrears on any other federally-insured loans.

Closing fees can be added to the loan itself, but if they are, will accrue interest. Some of closing fees are comparable to the closing fees of regular mortgages, but others are strictly designed as part of the reverse mortgage process. The origination fee and continuing loan servicing fees will differ widely among reverse mortgage lenders.

At the loans termination, there may be shared equity or value appreciation fees assessed. If so, they will entitle the reverse mortgage broker to a share of your homes residual value.

If you find reverse mortgage brokers hesitant to discuss these fees, immediately see warning signs and look elsewhere. Reverse mortgage brokers who take advantage of the ignorance of prospective borrowers are, unfortunately, far more common than one would like to think.

The sum you will actually receive for your reverse mortgage payment, whether you take it as a single amount, in monthly payments, or as a line of credit, can differ by thousands or tens of thousands of dollars, depending on the abilities and honesty of the reverse mortgage brokers with whom you consult.

Take Your Time

Take the time to shop among reverse mortgage brokers for the lowest fees; if you have family members or friends who have taken out reverse mortgages, ask them about their experience and whether they are satisfied with the performance of their reverse mortgage broker; if there are senior citizens advocacy groups in your community, find out whether they can recommend any reverse mortgage brokers.

Make sure your reverse mortgage broker finds the loan which is right for your needs; you have the right to a retirement as worry-free as you can make it!

Things Mortgage Companies Don’t Want You To Know!

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Mortgage brokers have a huge advantage when you are applying for a loan, this is because mortgages are their life. They know everything about mortgages and so can make a lot of money due to your lack of knowledge.

Mortgage brokers know all about the wholesale interest rates that you will qualify for, and are able to add on as much commission as they want, just to make some extra money. Mortgage brokers dont want you to know that there are certain tips to help avoid paying the full price of the interest rate that the broker gives you at first.

Here are a couple of tips that should be able to help you to avoid paying the full price of your refinance loan.

Before you look into refinancing your loan, you should first check your credit rating. Your credit rating is what lenders will look at in order to assess how risky you are.

You should request copies of your credit report from all of the credit agencies, then you should carefully study all of these documents and try to spot any errors. There are three credit reporting companies that are responsible for maintaining your credit records, because there are three different companies that manage the credit reports, it is very easy for them to develop errors.

Any errors in your credit record will negatively impact on your credit score, and so will mean that errors will cost you much more money in interest charges. By ridding yourself of errors, you should be able to get much better interest rates, and so save yourself much more money.

The best way to improve your credit score, is simply by paying all of your bills on time. If you dont already make all the payments on time, you should start making them on time and then wait for at least six months before you apply for a new refinance loan.

Make sure you stop using your credit cards as much as possible, by maintaining as low balances as possible you should be able to prevent getting poor credit. Also avoid taking out new credit cards as these can also impact on your credit worthiness.

Your mortgage company doesnt want you to know about the mark up that they put onto the interest rate that you could really get the loan for. You are effectively paying for the services of a mortgage broker twice, once up front, and then every month for the life of the balance.

You should compare the rate that you are offered to the rates that you have received from other mortgage brokers, or companies.

By learning how to prevent yourself having to pay the mark up, you can save yourself a lot of money.

Mortgage Brokers For Home Loan Refinance

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Online brokers negotiate financing deals with several lenders. This may mean that you can find a better deal through their site than by working with the lender. Not all mortgage brokers guarantee the lowest refinancing rates, so you should also compare brokers.

Understanding Mortgage Brokers

Mortgage brokers specialize in finding financing. They work with many lenders to offer you several financing choices. They partner with traditional banks as well as thrift institutions, credit unions, and mortgage companies. They can even connect you with subprime lenders if you have poor credit.

Not all brokers call themselves mortgage brokers. But any site that offers bids from more than one lending company is a broker. Make sure you know if you are dealing with a broker, since this will affect your closing costs.

Brokers collect a fee for each loan they refer to a lender. Sometimes you will pay this fee as part of the closing costs, other times it will come out of the mortgage companys fees. Even with the additional expense of a fee, brokers can usually find you better deals than if you shop alone.

Working With Broker Sites

Online broker sites enable you to make quick comparisons from basic financial information that you provide. Usually, you will need a general idea of your credit score, loan amount, and down payment. The quote you receive gives you a rough idea of rates and closing costs.

Take the time to check with a couple of broker sites to find the best deal. Each broker works with different lenders and negotiates unique deals. Spending a few extra minutes analyzing quotes can save you thousands in interest costs.

Taking The Next Step

Once you have narrowed your choices down for refinancing, request a detailed quote from the lender. This will require the financing company to look at your credit score. You dont want to request too many detailed quotes, since your credit score is temporarily lowered every time a lender makes a credit inquiry.

The detailed quotes will list rate along with terms, such as required points. Even with this accurate quote, it can change hourly based on market indexes and bank rates. If you find a good deal, it is best to act on it quickly to lock in rates.

Mortgage Companies – Different Breeds Of Mortgage Lenders

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If applying for a new home loan, there are numerous mortgage lending options. New homebuyers may not know where to start. Different mortgage lenders fit different circumstances. In fact, choosing the wrong lender may result in paying more interest. With this said, it is important for homebuyers to educate themselves on the different types of mortgage lenders, and select the lender that is perfect for them.

Traditional Mortgage Lenders: Banks, Credit Unions, etc.

While waiting in the lobby of a bank or credit union, perhaps you have observed signs advertising low mortgage rates. Some homebuyers choose to finance their homes through mortgage companies. However, it is possible to obtain a mortgage loan from your local bank.

Using a local banker may be advantageous. Each mortgage lending institution establishes its own lending guidelines. Moreover, these lenders can pick and choose the type of loans they want to service.

There are various types of home loans. These are intended to help individuals with good credit, poor credit, no credit, recent bankruptcy, etc. Unfortunately, not all lenders offer a range of home loans. Thus, persons with bad credit may have trouble getting approved.

Likewise, banks and credit unions may choose not to service bad credit loans. Therefore, those with a credit score below 680 may not qualify for a traditional loan. If this is the case, these applicants may have to seek alternative financing.

Mortgage Loan Brokers

Because mortgage comparisons are important, many homebuyers bypass local banks. Accepting the first mortgage offer received is not a wise act. Lenders offer different interest rates. The only way to get the lowest mortgage rate possible is to obtain quotes from many lenders.

Mortgage brokers are very useful. Although brokers do not finance home loans themselves, working with a mortgage broker gives homebuyers the opportunity to receive multiple offers from different lenders. Additionally, brokers have access to many types of loans. Thus, persons with a low credit rating can also obtain quotes from different lenders offering bad credit mortgages.

Mortgage brokers are also successful with locating suitable home loans for people with unique conditions. This may include self-employment, no money for closing, real estate investors, etc.

Mortgage After Bankruptcy – Helpful steps

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If you want to increase your chances of qualifying for a mortgage after bankruptcy, here are some steps you can take:

First, if you plan to apply for a mortgage after bankruptcy, you will want to have any inaccurate or obsolete negative information on your credit reports corrected or removed. This can help increase your credit score.

Also, you will want to establish some new accounts, and pay them in a timely manner over time. If you’ve paid the accounts on time for about 18-24 months since your bankruptcy, this should help rebuild your credit – which can be a plus when applying for a mortgage after bankruptcy.

Next, you will want to work with an experienced mortgage broker. Why? Because buying a home is probably going to be one of the biggest investments you’ll make. You will want to have an experienced professional guiding you through the lending process – especially when it comes to applying for a mortgage after bankruptcy.

A mortgage broker typically has access to dozens of lenders and will probably have a good idea of which ones will (and will not) approve you for a mortgage after bankruptcy. In addition, they will be able to tell you what to expect in terms of the financing process.

So how do you find a mortgage broker? One way is to to ask friends or real estate agents for a referral. Once you have a few names, set up an appointment to interview each mortgage broker.

Among other questions, you will want to know if they have successfully been able to get other individuals a mortgage after bankruptcy. You also want to make sure they are licensed.

Another question you will want to ask is what type mortgage loan (A, B, C, or D) the mortgage broker thinks you can qualify for. Why? The lower the grade of the loan, the higher the interest rate. This is an important consideration when applying for a mortgage after bankruptcy.

In addition, there are other important questions you will want to ask a potential mortgage brokers – ones that could help you save money and/or increase your chances of qualifying for a mortgage after bankruptcy. While there isn’t enough room to cover them here, I go into detail on them in After Bankruptcy Credit Solutions.

Also make a point to bring your financial information with you when you meet with a mortgage broker. For example, you should have your income and expenses available as this will help the broker determine the loan amount you may be able to qualify for when it comes to a mortgage after bankruptcy.

Generally speaking, most lenders will allow you to get a home loan with a payment of up to 28% of your gross income. So if you make $4,000 per month, that would be $1,120. But keep in mind that this just an example. Again, a good mortgage broker can explain the criteria that each lender has.

If you have copies of your credit reports from each of the major credit reporting agencies (Experian, Equifax, and Trans Union) this will help also. Your credit report will play a major role when it comes to qualifying for mortgage after bankruptcy.

On that note, if you want to increase your chances of qualifying for a mortgage after bankruptcy, make sure that any inaccurate or obsolete negative information is removed from your credit report. This is important for two reasons: (1) It can mean the difference between qualifying or not qualifying for a mortgage after bankruptcy, and (2) if you end up qualifying for mortgage after bankruptcy, any inaccurate or obsolete negative information on your credit report could cost you up to $1,000s or even $10,000s in additional interest.

How do remove any inaccurate or negative information from your credit report, so you can improve your chances of qualifying for a mortgage after bankruptcy? There are specific steps you need to take. While I cover them in After Bankruptcy Credit Solutions, there is not enough room to go into detail here. Just remember that ideally you want rebuild your credit history before applying for a mortgage after bankruptcy.

By the way if you think that removing inaccurate or negative information from your credit reports takes a long time, I have good news. There is a way to have it removed in as little as 72 hours – the service is typically not available directly to consumers. In After Bankruptcy Credit Solutions I show you how to find this type service if you are trying to qualify for a mortgage after bankruptcy.

In this article we touched on two important steps you can take if you plan on applying for a mortgage after bankruptcy: Correcting or removing any inaccurate or obsolete negative information from your credit reports, and finding a mortgage broker to guide you through the lending process.

Mortgage Broker – Training Tips

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If you want to be a successful mortgage broker there are a few things that you can do to increase your chances. There are thousands of mortgage brokers across the world, and to set yourself apart you are going to have to be the best at what you do; there is no two ways about it.

Here are seven mortgage broker training tips that you can follow if you want to be the best in the industry.

1. You do not need to use hundreds of lenders in order to be a successful mortgage broker. Many mortgage brokers think that the more lenders they work with, the more money they will make. By getting five reliable lenders on your side, you will be able to do all of the business that you could hope for.

2. Make sure that you know your lenders rules and guidelines for loans. After all, if you are going to be selling their loans, you need to know everything about them. Many people make the mistake of skimping in this area. Do not let this happen to you.

3. Stay in touch with your lenders, underwriters, and anybody else that is integral to the loan process. By doing this they will be more inclined to stick with you through the thick and the thin. You can stay in touch via mailers, brief calls, or gifts during the holiday season.

4. Determine what your market is, and how you are going to define it. In other words, know what you sell and stick to it. This includes the loans that you are trying to sell to borrowers, as well as what type of people you will work with. Some mortgage brokers only work with borrowers that meet a certain credit score requirement. This is not a bad idea as long as you are consistent.

5. Try to carve out a niche for yourself. By doing this you will have much less competition to go up against. One example would be specializing in foreclosure loans. Sure, you are going to have competition, but it will not be nearly as fierce.

6. When you are communicating with borrowers and lenders make sure that you are professional at all times. This process can be hard on everybody; but a good mortgage broker can make things seem much easier.

7. Ask people that you know in the industry if they can help you garner new business. This way you will have a marketing technique working for you. This is one of the most overlooked but effective mortgage broker training tips.

Overall, these are only some of the mortgage broker training tips that you should consider. In order to be more successful come up with a list of your own tips to follow.

Mortgage Brokers

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When applying for a home loan, it can be difficult to ascertain your options and the best deal out there. Mortgage brokers can help you shop for the best loan for your situation.

Mortgage Brokers

A mortgage broker is an independent professional assisting homebuyers with their mortgage needs. Instead of a loan officer for a bank, a mortgage broker typically works with tens or even hundreds of lenders. This independence lets mortgage brokers hunt for loans that fit the credit history and particular lending needs of a person.

Lets assume you have less than stellar credit when you apply for a loan at ABC Lender. The lender pulls your credit report and determines you dont qualify for any of the loans offered by the lender. The lender is going to drop you like a rock and move onto the next potential borrower.

Now, lets make the same assumption regarding your credit score, but put a mortgage broker in the place of a lender. The mortgage broker is going to look at your credit score, income and overall borrowing circumstance. The broker is then going to give you options and a recommendation regarding the best loan for you. Instead of hoping to get financing, you are now in a situation where you are evaluating the best financing options.

Mortgage brokers can help anyone, but are particularly valuable in two circumstances. The two circumstances are bad credit and document overload.

If you have bad credit, even horrible credit, a mortgage broker is going to be able to hunt down loan options. Many people make the mistake of believing bad credit precludes them from getting a loan. It doesnt. The loan terms may require more points or a higher interest rate, but bad credit doesnt preclude home ownership.

For some borrowers, the monstrous amount of paperwork required in the loan process can be overwhelming. When you use a mortgage broker, the documentation is all taken over by the broker and his staff. In fact, mortgage brokers have people known as processors on their staff who do nothing but compile, organize and process all the documentation needed for loans. The do this everyday and are masters of the process.

The decision to use a mortgage broker is often a good one. A good broker is going to help you get the best loan while making the actual loan process a lot easier than going it alone.