Mortgage Myths, Facts, and Fallacies…

Comments(0) By Mike Miller •July 21st, 2008

If you are uninformed, or misinformed, it will amount to the same thing…less business for you. Allow me, fellow real estate professionals, to clarify a few points regarding the current world of mortgage finance. This is very important stuff…

The most important thing to know is that you cannot let your client do whatever you USED to let them do about getting a mortgage. Gone are the days when you let your client go to their bank for a mortgage loan. Gone are the days when you let them go online for a loan. WHY??? Because 3 out of 5 motivated buyers get discouraged when they go to their bank for financing. Most will stop looking at homes. I see it happen time and time again.

After getting turned down by the bank, or told that Jumbo loans are not available, or that Quick Qualifier loans are not available, people get unmotivated, and many times I cannot get them re-motivated, even if I have the product available. You simply MUST have your client talk to an experienced independent BROKER if you want to close their transaction smoothly.

A good broker has virtually all money available from every bank you can think of, so no need to let them go all over town and get discouraged. Have them call me first, and THEN let them call whoever they want to! It will keep them in the game.

And don’t let them go to a small bank either, look at IndyMac for example, do you want your client to go to a small regional bank? If they close down won’t you look bad? So again, I say an independent broker working with big banks is a win/win/win!

EXAMPLES:

Quick Qualifier loans are not dead. But they are harder to obtain. Credit scores need to be over 700, the client needs to have decent job history, and a little money left in the bank. Self employed borrowers, including real estate professionals can get good loans, with no verification of income. Yes, you need a down payment for that, but isn’t that the way it used to be?

Jumbo Loans are still available. I can easily to go $2,000,000 and even higher if needed. Rates are OK too, around 6% interest only for a 5 year fixed. Not bad when people are being told by the bank tellers that Jumbo loans are not available is it?

Last month I closed a Danville purchase loan for $1,7000,000 stated income, with 30% down.

This month I am closing a Danville purchase loan for $1,600,000 stated income, with 25 % down.

Of course loans under a million are even easier, and if you are under the $729,750 limit it is even easier.

Now, not every loan is available for every single scenario, but don’t let your clients do what they want, encourage them to do what they NEED to do, give me a call for a fast and free analysis. I work every day, helping people just like your clients get into local homes, so let me help you as well.