Overall most Realtors are fantastic and many of the Realtors I work with I consider close friends. After years in the trenches together you form a bond. There are however some Realtors who as a lender you just do not want in your life. Below are three things I have seen realtors do that would cause any lender to ditch them.
1) LIE ON THE CONTRACT:
Last year owe worked with a Realtor who often lied on contracts. He did
this because he said it was the only way he could get his clients offers
accepted in today's competitive climate. He would write a conventional
contract for an FHA borrower. He would submit his offers without prequal
letters since we refused to do inaccurate letters. He would waive
all contingencies for clients who were in no position to waive contingencies
and basically put everyone in a terrible position. By removing all
contingencies on the contract the buyers had no chance to back out if for some
reason they did not want to move forward with the purchase without losing their
deposit. Every contract he wrote had a high deposit too; usually most of the borrower’s
down payment. From a lenders perspective it was terrible. You
had buyers who were in a terrible position, a listing agent who had been lied
to and a buyer’s agent who bullied every buyer into closing. Every transaction
he would say he would never do it again and then he would do it again. Needless
to say it was not a relationship we kept.
2) Double up on
Lenders : The same agent that lied on his contract would
also use multiple lenders on transactions. He would tell the buyer to
"double app" which means the buyer would be working with two lenders
to secure the loan. They were always told to never tell the lender what
they were doing. He would then have the buyer close with whoever was
fastest regardless of rate or fee. Doing a loan in today's world with all
the government compliance is not a easy thing and lenders only get paid when
the transaction closes. So as a lender if you do a purchase and have loan
docs to title in 20 days but the other company had them there in 19 days he
would have them close with the other company even if your rate and fee were
lower. You would only find out there was another lender involved at the
end. Guess what the lenders team who spent the last 20 days securing the
loan just worked for free.
3) Send inappropriate
pictures etc..; If your other lender sends you pictures from her bubble
bath, please don’t send them to me. I don’t
want to see them and there is not a chance in the world I will ever send you
anything like that. I am a lender not adult entertainer. In addition “what are you wearing” is not an appropriate
opening line and to respond to one Realtor who asked my partner and I when we
went to his office five years ago “would we dance for his business”
the answer is still no. And yes male lenders deal with this too. I have male lender friend who was invited
multiple time by a powerful Realtor to go hot tubbing with her swinger friends.
It has been quite a year so far. I have not had a
chance to keep up with my biog as I have spent the first half of the year
adapting to the crazy environment we call 2014. The year started
off slow with Mortgage business across the country down an average of
20%+. Realtors who have been in the business for twenty years + said the
beginning of 2014 was the worst few months in their careers! With very
limited inventory and multiple counter offers on every available property we
were seeing it take 10+ offers to get a deal accepted at the listing
price. The buyers who ere getting the homes the first 4 months were going
way over asking with in some Bay areas the purchase price being 30% above the
list price. This led to "clean out" of sorts in
the mortgage industry. I watched as other mortgage
professionals who once were doing 4 million a month went to zilch and even saw
one of them switch careers to become a masseuse. Had the slow down lasted
another few months we would have been left with only the true professionals
which would have benefited buyers immensely.
Realistically the slow start was a blessing in the mortgage world since the new
QM rules have increased the amount of processes and paperwork our processors
need to do to meet all the new requirements. Do the rules really affect
borrowers? Not in the obvious manner but in terms of workload for
mortgage companies their is definitely a change. Our internal staff has
had to cope with yet another set of rules and restrictions and T's that need to
be crossed. The loan processors who are surviving in today's world are
truly rock stars,
We started to see a pickup in April with rates coming down quite a bit in May
leading to a flurry of activity. Refinances which were non existent in the
first quarter came roaring back. The hottest loan right now is getting
borrowers out of FHA into a conventional loan. The increase in purchase
Prices in the first quarter let to increased home values which is helping to get
FHA borrowers out of their loans in 6 months from when they purchased.
This coupled with the current low rates is a huge benefit to buyers and
Overall the market is coming back to where we were last year in terms of
mortgage demand and home buyers looking. As a buyer we are seeing the
market dominated by sellers who are actually people instead of banks and short
sales. This is a great sign that our market s finally recovering.
VP Mortgage Lending
Guaranteed Rate Mortgage
Questions? Please email me at email@example.com
I do an average of 60 prequalification’s a month.
Of those 60 maybe 25 are ready to buy right now. The issues holding up
the other 35? Down payment. They are close but do not have enough
saved. Well we have a solution for that!
Conventional with 1% down. Yes conventional with 1% down. It is not a government loan. This is an easy fast loan.
No prepayment penalties. Clean,
vanilla 30 year loan.
Basically the client receives a grant for 4% which with
their 1% makes a 5% down payment. The
mortgage insurance is the same as if they brought their own money in to do 5%
down. And since this is a grant it is
free money!!! No payback, no silent 2nd,
The program has very few requirements and we underwrite
it in house at guaranteed rate so there are no delays or extensions needed for
closing times. Please note very few lenders have this program.
be single family home or condo
to be owner occupied
have income limits but they are HIGH
Call today to qualify:
VP Mortgage Lending
I am all for updating the way blogs are delivered but it is a shame it takes everything we wrote in the past and now has it filled with code. Please note my past blogs were not filled with code before. I hope trulia fixes this. Anyone else having same issue?
CHF BROADENS PLATINUM DOWN PAYMENT
ASSISTANCE GRANT PROGRAM
CHF is pleased
to announce the addition of Conventional Loans to the CHF Platinum
Program. Homebuyers can now apply for the down payment assistance
grant provided through CHF Platinum when qualifying for
a fixed-rate 30-year Conventional Fannie Mae First Mortgage. Previously,
the grant program was only available in conjunction with FHA, VA or USDA
With the addition of
Conventional Mortgage Loan options, CHF aims to serve more people and provide
homebuyers with more choices.
Not limited to
Another advantage of
the CHF Platinum Program is that it is not limited to first-time homebuyers. In
years past, repeat homebuyers often had cash from the proceeds generated from
the sale of their home to use for the down payment on the next home.
Today, that is not
always the reality. CHF addresses this need by making the Program accessible to
first-time homebuyers and repeat homebuyers.
Value coupled with
The CHF Platinum
Program is a homebuyer assistance program which provides a down payment
assistance grant. It is a daily priced program, providing a variety of
competitively priced mortgage options.
The grant can
be sized up to 5% of the Loan Amount depending on the type of Mortgage.
The grant proceeds can be used towards the homebuyer's down payment
and closing costs for purchase of a primary residence.
On a $200,000 mortgage loan, a five percent
grant is $10,000 for down payment and/or closing costs.
Call to get your downpayment today!
Jennifer Ready 707-478-0637
VP Mortgage Lending
Guaranteed Rate Mortgage
Below are the 5 things that make the loan process a painful experience for everyone involved.Â Avoid these 5 mistakes and you will keep yourself and your lender sane.Â Remember your lender is on your side and we are here to help you.Â However if you do any of the below 5 you only have yourself to blame.Â Every single one of the below is based on a true story/stories that i have experienced in the last few years
Take pictures of the
documents we request.
A picture on your re factor of the front of your tax return is not the same as the
full tax returns we requested.Â A picture
of your account balance on your computer is not the same as two months most
recent bank statements.Â Please give us
exactly what we ask for.Â I like my iphone too but pictures of the
documents do not work.Â And yes I have had a client try to snap chat me their docs.Â
2) Yell at us for asking for all the paper work we
originally asked for.Â We send a list of items on day one.Â If on day 5 you have only given us half the
list you should not be mad at us because we areÂ following up with you on the missingÂ documents. We
are doing our job.Â In order to get you
the money we need all the paperwork we requested.Â We do not send a list of things we want for
fun.Â None of us want extra items to
review for fun.Â We prepare the package
exactly as the underwriter needs it so we can get you your money fast. Remember I am on your side and am not a
paper loving devil..
3) Open a credit card or buy something big in the middle of
the transaction.Â Any credit line you open during the
transaction we have to get additional documentation on.Â We run your credit at closing now so we see
everything.Â If you open a credit card to
save 10% at Macys on a $40 purchase I now need to see a Macyâ€™s statement
showing what you owe. The underwriter has to sign off on that Macys card.Â Was it worth it to save $4?Â No.Â Â Every lender requires this now.Â Also any debt you incur we have to refactor
in your debt to income.Â So if you buy
something big and you were already on the cusp you may now not qualify for a
loan.Â DONâ€™T buy anything or open any new lines of credit.Â Donâ€™t cosign for anything either as it counts
as your debt for the first year.
Quit or change your
job and not tell us.Â A lot of people feel
that if they qualify for the loan it does not matter what happens with their
job while we are wrapping up the paperwork.Â
Wrong.Â We verify your employment
at the end of the transaction too.Â Any
changes affect your qualification
5) Lie to us.Â If you are married
please admit it.Â You cannot be single
and married at the same time. I have literally in the last 3 years have this
happen 4 times.Â Every time when I
confront the client they say â€œI thought it did not matter.â€Â or "its not your business." Â It does matter and it is the lenders business.Â California is a community property state and
if you are doing a government loan even if your spouse is not on the loan we
have to run their credit and hit you with their debt.Â Also in California if your spouse is not on
the loan they have to sign a quit claim atÂ title at closing.Â If we donâ€™t know you are married title is
wrong as well as everything else. Beyond the fact it can alter loans it a
question on every application.Â You are supposed to fill out your application