Friday, September 03, 2004

A little reflection time for Mikol

Here we are… My first blog entry since I started my new job as a ‘Mortgage Specialist’. Unfortunately since this is what I’ve been doing since July 19th it’s what’s on my mind to write about. I’m gaining a hell of a lot of information about the mortgage business. The trick now is putting it all together so that it actually makes sense. I’ll say this much… I used to think that paying someone up to 3% of a mortgage amount as commission to a mortgage broker who just happened to take my application was a scam (and it some cases it is). BUT… If you can get a mortgage broker who actually cares about getting his client the best possible mortgage, then the 3% is extraordinarily well worth it. The common thought (I’ve learned from speaking with many clients who have “read up on mortgages”) is that there are basically 3 types of loans: Conventional, FHA, and VA. They seem to think they know what all is entailed with FHA, and (they assume) they don’t qualify. Or they assume because they have a VA certificate that VA is the best way to go. Let me sum up what the problem is with this logic. In my shop alone we have over 60 wholesale lenders with an average of 7 different programs per lender. I’ll do the math for you. That’s 420 financing programs that we offer out of my shop alone. Not to mention the many “Down-payment Assistance” programs offered by organizations who aren’t even lenders. I’ve seen clients (not just from my team) that have come in with 3 mortgage denials in the past year, who get approved for a mortgage with better terms (rate, payments, re-fi options, etc…) than the loans they were denied for. The flip side of this business is having a good, hard-working family who’s about to lose its home sitting across from us, and we have to tell them that there is nothing that we can do for them because of the over-abundance of medical collections from when their daughter underwent chemo-therapy. This has not happened to me, but I came across a broker who was crying because she had to make that call to a family. The specific program she was trying to go through only counted 3% ($3 for every $100 owed) of TOTAL medical collections toward the client’s debt-to-income ratio. She was working the loan with no commission attached. She wasn’t even going to get paid from the client, but she had the unfortunate responsibility to notify her clients that contacting a bankruptcy lawyer (that they probably couldn’t afford) was probably their only hope to keep their home of the past decade. It’s crazy, but out of all the people we help, that’s the client (who I never met) that I can’t get out of my head.


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7(m) Microloan Program

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7:41 AM  

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