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Choosing the Correct Mortgage Consultant
While obtaining financing you need to work with a person who knows what he
doing and has the products and services that meet your needs and
wants. What does that mean? You need more than an order taker.
They need at least five years experience with a variety of mortgage
origination experience. They have to have experience in Conventional,
Government, Non Conforming and now all the Stated and Interest
only loan programs. They have to listen closely to your needs
and wants and be able to come up with the best loan programs you
are eligible for. You and your Mortgage Consultant have to communicate
openly and honestly. Your mortgage consultant should be able to
explain the loan process from the beginning to end. They also
should honestly explain your strengths and weaknesses and how
to compensate for them. Your Mortgage Consultant is your advocate
with the Underwriter who makes the final decision. It is just
like going to trial ,when you stand before the Judge, you want
to be represented by the best Attorney you can.
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Choosing the Correct lender
There are many types of lenders that are eager or not eager to lend you money.
How can that be? There are many kinds of lenders and they all
have their own loan preferences. It is up to you to find the right
lender for you, and be honest as to the strength of your lending
profile. There are basically four types of lenders; Local Savings
and Loans and Banks who basically lend their own money, Local
and Regional Finance companies who usually lend their own money
usually at a high rate of interest, Regional and National Banks
who can lend their own money but usually sell their loans to places
like Fannie Mae and Freddie Mac that require tight standards and
there are Mortgage Brokers who sell their loans to wholesale lenders
who sell to Fannie and Freddie but also have access to many wholesale
Non Conforming lenders who lend to people who are not typical.
I believe the best combination is as a Banker-Broker. They are
independent and can place the loan with the best lender whether
it is conforming or not.
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Processing and Closing the Loan
The first step after finding a Mortgage Consultant is to have an interview. That interview could be short with just a few questions an answers or it could lead to a full application either in person or over the telephone. The important thing is to get to know each other, develop strategy, and to gather data. Once the mortgage consultant pulls credit, inputs the data in to the computer he does a preliminary underwriting of the file. He will then go back to his client and explain the options maybe ask some more questions.
Once a strategy is established and documents are drawn the Consultant and client
need to meet . At the meeting the Documents have to be signed
and the client brings in supporting documents such as pay stubs
bank statements etc. One of two things will happen at this point
either the loan will move forward because the data supports what
they said or a rethinking of the loan type may occur. Let's assume
we move forward. The file will be put in order, Title and Appraisal
order and the file will be turned in to processing for further
evaluation. Once Title and Appraisal has arrived and appears to
be acceptable we put the whole file together and send it to the
wholesale lender of choice to be underwritten. This process takes
a few days . The underwriter will send back his evaluation of
the loan. There will usually be a few things that require explanation,
standard requirements we expect and some times out right rejection.
We deal with as many things as we can in house but sometimes need
our clients help. Assuming we move on the client needs to get
home owner insurance, the correct amount of Down payment amount
(if it is a purchase) and a few other minor things. The closing
department and the title company coordinate with all parties.
The title company handles the documents and signatures. That finalizes
the closing unless it is a refinance then it is final after the
three day right of recission. Everyone celebrates.
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