How To Find Your Way Through The Home Loan Jungle – Part Two

Finding Your Jungle Guide-Part Two

Welcome to the third lesson for obtaining a home loan you love.  Sit up straight class and pay attention;  Dr. Most Opinionated is about to start.

We started off with getting your documentation in order.   Compiling that package is the secret weapon we’re going to pull out at the end of the process.  We’re going to drop that bunker-buster bomb on the unsuspecting originator for maximum effect at the final moment.  Next, I instructed you to compile a list of 6-8 originators.  Do you have your little list?  Good, let’s get to work!

Oh, by the way, does this seem like a huge pain-in-the-butt?  Is it taking more time than you would of liked?  Here’s a wake up call for you lazy people out there:

READ:  The Deceptive Advertising Example

and here’s what happens if you get sucked in by “Senior Loan Officer” who cruises nightclubs, drives a Ferrari, and promises you court-side tickets to the Lakers-Clippers game:

READ:  Mortgage Broker Misconduct

Oh, do I have your attention, now?  Good!  Let’s get back to the lesson.

Start off by Googling everyone’s name on your list in the Google Blog Search.  So many of us are writing articles like this online so we can give you, the consumer, good information.  If the originator isn’t writing a weblog, then just Google them.     Searching online can give you some insight into their philosophy about mortgage financing.  It is also one indication of their experience level and commitment to the profession.  It is not a prerequisite that they have an online presence but it does help.

Now, armed with a little intel, let’s make the calls to the originators. Certainly start off with a little small talk; sales people like to talk but keep it under 3-4 minutes.

Here are 7 questions you want answered in your phone interview:

1- What is your philosophy in as much as it relates to Strategic Equity Management?

2- What makes mortgage rates go up and down?

3- What’s the next big economic event that can move mortgage rates?

4- When the Fed raises rates, how does that affect mortgage rates?  (they can come down)

5- What’s going to happen in the near future to mortgage rates?

6- Can I get a pre-approval if I give you a credit report, income, and asset package?

7- Will you lock my rate/terms, give me a good-faith estimate, truth-in-lending form, and written rate lock confirmation if I elect to use you?

Each phone call should take 10-15 minutes.  If you call all eight names on your list, some originators may not return your call until the next day.  That’s okay as we are sometimes busy servicing clients.  Be certain to leave messages with specific  times when you’ll be available.  Certain originators may not call you back.  Again, you’re trying to whittle down that list to  2-3 people so you can get competitive quotes.  These interview questions should help you “find’ those lucky few.

My next article will be about how to secure the home loan you love.

by Brian Brady America’s Most Opinionated Mortgage Broker

Read the whole series: 

• How To Get The Best Home Loan – Neatness Counts When You Want a Home Loan
  How To Find Your Way Through The Home Loan Jungle – Part One

• How To Find Your Way Through The Home Loan Jungle – Part Two

• Loving Your Home Loan

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Posted on April 9, 2007 by Laurie Manny

How To Find Your Way Through The Home Loan Jungle – Part One

Finding Your Jungle Guide-Part One

Okay, the last secret I told you about was how to compile a credit and income package for a lender so you could get accurate quotes and pre-approvals.  Now, I’m going to tell you how to shop for the right loan originator. 

I have always stated that you should be shopping mortgage consultants not loan programs but this double-barreled article will help you do both.  Understand this first.  You are NEVER going to get the absolute best rate offered on a home loan; it’s impossible to determine what “best is:

READ:  You’ll Never Get The Best Rate

Instead, you should be shopping loan originators.  You should spend some time online and on the phone getting to know the originator before you give her a copy of your “credit” package to receive a quote.

READ:  Borrow Money Like You Would Buy A Cell Phone

You should get a list of 5-6 loan professionals and spend 10-15 minutes on the phone with them.  Where do you find these people?  Here are some sources for “leads’ on good loan originators:

1-  Call Brian Brady immediately 858-777-9751!  Okay, I’m sort of  kidding but I can be a source for you because you have enough interest to read my article this far. My point is that you’ve already met one originator online.

2- Ask your Realtor for a loan originator whom she trusts.  If you don’t have a Realtor, yet, use that as leverage in your hiring process.  Explain to the 2-3 Realtors you’re interviewing that you consider their recommendation of a loan source to be an integral part of their service offering; you’ll get a great response.

3- Go into your local bank and tell the teller that you are thinking of buying property.  That teller gets paid $25 to refer their in-house mortgage salesperson so he’ll be all worked up.

4- Call your CPA or tax preparer and announce that you need a home loan.  If the CPA offers to help you with it, get a new CPA.  There is a growing trend among tax professionals to provide financial services like mortgages and investments. I can’t speak too intelligently about the investments side but there are two problems with CPAs offering home loans:  (a) they offer horrible advice.   (b)  their inexperience usually ends up costing more.

5- Stockbrokers and financial planners are usually good sources.  These guys understand investments and leverage so they know a few of us who can integrate your mortgage into your financial plan.  I have found that when I work with a stockbroker, the client gets great advice and a loan that makes sense.  if you don’t have a stockbroker, ask the richest person you know for a name (I’m not kidding about this). Some stockbrokers offer mortgages; again, stay away from that for the same reasons as CPAs.

6- Ask someone who owns more than one property who their mortgage gal is.

7- Ask a small businessperson (with whom you’re friendly) who their mortgage source is.

8- Ask your brother or sister (or cousin or parents). 

Cool!  Now you have a list of 6-8 mortgage originators.  Should you print off your package and send it to them?  Should you e-mail each of them and ask for a quote?  Hold on, amigos !  Remember I said to shop for loan originators and not loan programs?  The loan terms shopping comes after you’ve isolated 2-3 originators with whom you want to do business.

My next article will tell you how to interview an originator in 15 minutes or less and be certain that you have the right people.

by Brian Brady.  America’s Most Opinionated Mortgage Broker

Read the whole series: 

• How To Get The Best Home Loan – Neatness Counts When You Want a Home Loan
  How To Find Your Way Through The Home Loan Jungle – Part One
• How To Find Your Way Through The Home Loan Jungle – Part Two
• Loving Your Home Loan

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Posted on April 9, 2007 by Laurie Manny

How To Get The Best Home Loan – Neatness Counts When You Want a Home Loan

Read the whole series: 

Read More Details

Posted on April 9, 2007 by Laurie Manny

Landlords Win in the Sub Prime Implosion

The recent events in the sub-prime market have raised the bar on obtaining financing.  Buyers are most likely  going to have to cough up a few bucks to buy anything, unless they have great credit scores and history.  This is great news for Long Beach landlords.  You are not going to have any problems filling up those vacant Long Beach units.  We may actually have housing shortages in some areas. 

It is natural that tenants become first time home-buyers.  Not right now folks!  Unless they have a decent down payment, its just not going to happen, equating to long term tenants.  With so many foreclosures on the horizon, the displaced owners will require housing, increasing rental housing demands. 

Supply and Demand

When supply is down, demand is up.  Rents are going to begin to increase with the demand for available housing.  Who knows, maybe the rents will actually begin to justify the absurd recent prices on some of the investment properties recently and currently on the market.  It may not be a bad time to look into purchasing a reasonably priced Long Beach Investment Property, if you can find one.

The recent re-development in Downtown Long Beach has created a lot of available but not so affordable housing.  Lets face it folks, if these people cant afford to buy, or are coming out of a foreclosure, they are looking for rentals they can afford.  With more high rise development on the way it raises the question, where is the affordable housing? 

In Downtown Long Beach, affordable rental housing can be found in the Willmore City Historic District and in the East Village Arts District.  Alamitos Beach is still affordable but gets a little pricier, rentals in Belmont Heights and other Long Beach CA Beach Communities have stayed surprisingly reasonable.  The Circle area, Bixby Knolls, California Heights, Wrigley Heights, North Long Beach, Lakewood, Signal Hill and Signal Hill neighborhoods are likely contenders for housing the coming demand.  If you have been contemplating the purchase of Long Beach Income Property, now might be a good time to think about putting that plan into action. 

If you currently own Long Beach units and have been contemplating upgrading them, now is the time.  Upgraded rental units command higher rents and are always in demand. 

Do you have Long Beach Income Property that you would like to sell?  Are your rents anywhere near todays current market?  If not you might want to consider restructuring your business plan and raising your rental income to support your asking price.  Income property sells based on GRM (Gross Rent Multiplier).  In plain English, your rents must support your selling price or your buyer will not be granted a loan.  Sure, you can wait for a buyer with a lot of cash, but you are going to wait a long time.  A buyer with a lot of cash is most likely going to split that cash up and buy multiple units.  If you price your Long Beach property to sell, and your rents support your price, you should be able to sell. 

I am highly experienced in the purchase and sale of Long Beach Income Properties.  Please call if you need any assistance or advice. 

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Posted on March 18, 2007 by Laurie Manny

Sub Prime Implosion

Some of you may have heard about the implosion in the sub-prime market.  Many are intimating that 100% financing is no longer available, or only available to those with pristine credit.  At this time approximately 40+ mortgage companies have closed their doors, some without notice, and foreclosures are on the rise. 

It is still possible to obtain 100% financing.  The lenders have certainly tightened up the requirements, and will continue to do so.  If you have reasonable credit and are not reaching beyond your means you should not have any problem obtaining financing for your purchase.  The wisest decision would be to call your loan officer prior to beginning your home search, and to shop within your means. 

If you would like referrals to several excellent lenders, do not hesitate to ask. 

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Posted on March 17, 2007 by Laurie Manny