“Article Says that 60% of Bank Applications Closed in March”
The article appeared in Originator News on 5/14/13. What the article doesn’t say is, “40%” of the mortgages that were applied for didn’t close. The same article says that 8% of banks surveyed said that they see a loosening in mortgage credit conditions.
If this is true, how do 4 out of every 10 mortgages get denied? Does that mean that prior to the loosening of credit conditions, half the loans were denied?
I wonder what my clients would think, if I told them they have a 40-50% chance of being denied for their mortgage application? I can tell you, they wouldn’t want to do their mortgages with me, but for some reason, it has very little effect on the banks. OK, enough bitching.
image courtesy of stuart miles/freedigitalphotos.net
“What is Your Value Propositions, After the Transaction is Over?”
Calvin closed on his new home the last week of December 2012 and wanted to meet again to further discuss what we talked about during the mortgage application.
My mortgage application process takes from 90 to 120 minutes. The application itself around 45 minutes, so what can possibly take so long? If lifelong relationships are going to be established, they take time, commitment and follow through.
This was the list of things he wanted to talk about and he likes doing it face to face.
1) Tell me again, how long before I can get rid of mortgage insurance?
2) I need a referral for an attorney to prepare a will.
3) Where do you get life insurance from? I need a referral.
He gave me a referral for one of his friends that lives in New Hampshire and is moving to Massachusetts. He told me that he may want to keep the NH property and refinance it, before they purchase their new home.
During the application process I ask each client to share what expectations they have of me and I share my expectation of them. I want this partnership to last a lifetime and in order for that to happen and be real, both parties need to know what to expect from the other.
image courtesy of jscreationzs/freedigitalphotos.net
“Referral from Big Box Bank Brings a Thank You for Him”
As many know, I receive many referrals from my competitors and loan officers that are with banks and credit unions. No different, I refer to them, when I think they can do a better job than I can.
A couple of months ago I receive a referral from this loan officer saying they couldn’t do the loan and he referred the client to me. Within a couple of hours Stephanie called me and shared her situation. It was definitely a loan I could do. A couple of days later I met with her and completed her application.
Her loan closed and she was a happy camper. Within a couple of days after the loan closed I got a call from the loan officer, thanking me for getting Stephanie’s loan done. Then he told something that made me feel really bad for him. He told me that Stephanie sent him a gift certificate, thanking him for introducing her to me and that was the first time he had ever gotten that kind of thank you from any customer. I didn’t quite know what to say to him, but felt I needed to say something.
I told him, to be of service to another human being is one of the greatest gifts you can give anyone and because of it, she honored you. I told him that I am flattered that he shared something like that and thanked him again for the referral.
image courtesy of stuart miles/freedigialphoto.net
“Closing Attorney Calls from the Closing”
It is rare that I would get a call from an attorney, at the closing table, asking about another lender’s transaction. The attorney was told he was doing a refinance for a client and the borrower was supposed to get $6,000 cash out and it turns out there was no money for them. Actually they had to pay $112 to close.
The attorney contacted the lender, asking what had happened, they couldn’t explain it. He attempted to contact the loan officer, who couldn’t be reached. Stuff like this doesn’t put anyone in the mortgage business in a good light. He then asked, can you help them, as they really need the $6,000.
The borrowers rescinded the loan and didn’t close. The attorney sent them over the next morning. I did a new mortgage application for them the next morning. I wish I could have figured out why there was a problem, as I looked at their original mortgage application and they were supposed to get a bit over $6,000 out.
I kept apologizing to them, for anyone in my business that doesn’t handle their clients in an honorable way. I have an appointment to refinance her sister’s loan next week.
It is so much easier to do things the right way the first time.
image courtesy of ambro/freedigitalphotos.net
“Doing this VA Mortgage, a New One on Me”
Most men don’t change their name after leaving the military, but Peter did. Before your imagination takes over, it is not what you think.
While in the military Peter’s parents were divorced and his mother changed her name back to her maiden name. For whatever reason, Peter changed his name to his mother’s name. Here is the problem.
All of the discharge documents were a different name. I have had this issue a number of times, when a veteran got married and took her husband’s name. The VA is prepared for this and it doesn’t take very long to get the necessary forms handled to get the mortgage done.
When we made the same request, you would have thought, we were asking Washington to agree on a National budget. We were delayed 2 months and no one could tell me why. If you know, I would love to know the answer? Maybe it was the VA operating in their normal speed.
image courtesy of simon howden/freedigitalphotos.net
“Getting Property Taxes Reduced”
I get this question all the time, so I thought I would share what I normally tell people. Many have gotten their taxes reduced using one of more of these suggestions.
1) Go to or contact the town or city department that handles this issue and find out the process they require.
2) Check the assessor’s information for mistakes
3) Examine the assessment of other homes in your neighborhood and see how they compare to your home.
4) Compare recent sales. A Realtor may be willing to assist you in getting good comparable sales.
5) Get an appraisal.
6) Prepare your case. No agency will be willing to make a change without good evidence.
We have all seen property tax bills that are totally out of line and should be corrected.
image courtesy of stuart miles/freedigitalphotos.net
“Realtor Support at Their Open House”
3 of my Realtor referral partners did open houses on Saturday. They always find out if I’m planning on being around in case there is someone that needs to be preapproved. From 11 AM to 4 PM my cell phone rang none stop.
I did 6 preapprovals, sent out 4 “how to” letters of how to handle credit issues. Explained why an FHA loan wouldn’t be the right choice in one situation, why an FHA 203K would be the right choice, why I would do an adjustable rate since they would only be in this country for 5-6 years, how much mortgage insurance would be if they put $10,000 down, what a monthly payment would be if they did a USDA loan. I’m sure there were a few others, but don’t remember.
My Realtor referral partners know, I have them covered and will make them look good and I know I can count on them to do the same for me.
image courtesy of digitalart/freedigitalphotos.net