by Brian Short, CMC, CRMS, GMA
Tennessee Mortgage Professional, Brian Short, demonstrates why it is important for mortgage loan customers to use a mortgage professional who will not be simply guessing when it comes to very important final numbers on any mortgage transaction. www.ProMortgageMatters.com
Leave a Comment » | 
Closing costs, Monthly payment, Professionalism in the Mortgage Industry | Tagged: Brian Short, closing costs, down-payment, home purchase, mortgage professional, Professional Mortgage Moment, Professionalism in the Mortgage Industry | 
Permalink
Posted by Web Administrator
-> Sales price
-> Appraised value
-> Loan amount
-> Borrower’s employment status and history
-> Credit scores and payment history
-> Amount and source of down-payment
-> Date of closing
-> Immigration or citizenship status of the borrower
-> The housing type and location (Single family dwelling, Duplex, Condo, Townhouse, PUD, suburban, rural, urban, etc.)
-> The county where the home is located
-> Mortgage Interest Rate
-> The Term (length) of the Loan
-> The Title Company being used to close the loan
I have worked for several mortgage companies during my mortgage career and even owned my own company for 5 years. I know that some “loan guys” will “low-ball” the initial estimate, only to pull out the “surprise” at the closing table when your options for making any changes are very limited. Of the 21 separate line-item fees on the “Good Faith Estimate” I give to my borrowers when they sign their loan application forms and disclosures, only one of those fees is the same for every loan and is not dependent on any of the variables listed above.
Mortgage interest rates change daily (sometime, even more often!). I could simply print off a “Good Faith Estimate” with made up numbers as some customers request (as other ”loan guys” may do) but it will not be accurate because of all of these variables I have mentioned. That process of collecting “Good Faith Estimates” prior to having all of the above variables identified will very time-consuming and wasted effort by the borrower and “loan guys” passing out worthless forms with inaccurate numbers.
My goal is to take the worry and uncertainty out of the process of originating, processing, underwriting and closing the loan. I help guide my borrowers through their negotiations with their seller by providing honest numbers as they become available rather than simply making up numbers to get “my hook set”.
I have been in the business for over 11 years and nearly 100% of my business comes from referral and repeat business. A businessman can not build that kind of business by being a con-man, cheating others or participating in the bait-and-switch tactics that have riddled this industry for years.
This helps my my borrowers understand how I have built my business and how I provide a level of confidence and professionalism which will make my borrower’s Real Estate purchase a very smooth and cost effective transaction over the next.
So, you ask, how should I select the Mortgage Professional to close my loan for me? I’m glad you asked. Allow me to give you a few guidelines for starters:
1. Choose a Mortgage Professional who is EXPERIENCED. Was he selling shoes or washing cars last week and then some buddy of his talked him into “trying out the mortgage business”? Does he really know what he’s doing? Has he been originating mortgage for 5-10 years? Does he do this full-time or this just a hobby or part-time gig?
2. Choose a Mortgage Professional who is CERTIFIED. Has proven to anyone that he knows the laws, the process, the programs and theory and mechanics behind the mortgage industry. Has he taken courses and exams to measure his competency? Is his certification a national designation? Is his certification from a professional association who can objectively measure and monitor his expertise or from some mail-order outfit looking to make few bucks?
3. Choose a Mortgage Professional with a GOOD REPUTATION. Is your selection a true professional who is respected and well-known in his industry. Who knows him and what kind of work he does? Who has ever closed a loan with him? Who can speak for his level of trustworthiness, honesty and attention to detail? What do you know of his character and personality?
4. Choose a Mortgage Professional who is a PROFESSIONAL. Does your choice know the market, the industry, the community, the history, the trends and your desires? Is he a member of his professional association? Has he been awarded and recognized by his peers and fellow business associates for his contribution to the industry and community?
During the month that your loan is supposed to close it is the most important transaction in your Mortgage Professional’s office. “Getting it cheap” doesn’t mean much when your “loan guy” drops the ball and makes a mess of the whole deal simply because he has “never seen anything like this before.” That stack of bogus ”Good Faith Estimates” collected 30-60 days prior to your closing will mean very little when you find out that returning phone calls, diligently following up on underwriting conditions, and working long hours to insure that all of the bases are covered on your deal are not his priority or part of his work ethic.
Paper is cheap, and ink toner to print fictitious loan estimates is even cheaper. Experience, Certification, a Good Reputation and Professionalism are priceless life-long attributes and qualities you want in your Mortgage Professional. Leave the spreading of such worthless papers to those lying, low-balling, bait-n-switching, short-termers who do not deserve to work with someone like you who, understandably, expect it to get done right the first time.
1 Comment | Professionalism in the Mortgage Industry | Tagged: appraised value, Brian Short, Certified Mortgage Consultant, certified mortgage professional, Certified Residential Mortgage Specialist, condo, credit score, down-payment, duplex, employment, experience, Good Faith Estimate, good reputation, home purchase, immigration status, loan amount, loan guys, mortgage interest rates, mortgage professional, Professionalism in the Mortgage Industry, PUD, refinance, rural, sales price, suburban, title company, townhouse, urban, WJ Bradley Mortgage Capital Corp. | Permalink
Posted by Web Administrator
By Brian Short, CMC, CRMS, GMA
Many of us who have “survived” in the mortgage business are very busy these days with folks who desire to refinance their homes. With rates in the range from low 5% to high 4% for a 30 year fixed for many borrowers, this is an ideal time to consider refinancing to lock in an historically low long-term interest rate on your house. 
However, the rules have changed for many borrowers. The days of no documentation, high loan-to-value, cash-out, debt consolidation mortgages have come to an end.
Does that mean it is impossible to accomplish any of these goals in a relatively painless refinance process – absolutely not! Just take heed of the new “Rules for Rapid Refinancing”:
1. Get your documentation organized and copied for your mortgage professional. Employed workers and self-employed business owners will all need to prove their income and their assets to qualify for a new low interest loan. I remind my customers that they should keep the following documents for the following length of time – just to be safe.
a. Pay Stubs – Keep these all year until you receive your W-2 and have completed your tax return for the year.
b. Bank Statements – Keep these 5 years. The IRS can audit you for the past 5 years. It your responsibility to prove your case if you would be audited.
c. Tax Returns and W-2′s – Keep these until you die. Let your kids throw these away for you and be amazed at how little (or how much!) you made when they were kids. You never know when you will be asked to document income, deductions, businesses, rental houses, etc. File a copy away in a cabinet (and scan a copy to your hard-drive in case you need to e-mail a copy for your kid’s college financial aid application, etc.) each year.
2. You will not be able to pull cash out of your house for more than 85% of appraised value. If you owe more than 85% of your current appraised value then you will not be able to get any cash to consolidate debt, pay off other obligations or even make improvements to your house. Trying to get cash out of your rental house will be nearly impossible unless you owe very little on the rental house. Getting cash out of Real Estate is not something Fannie Mae and Freddie Mac (or FHA or VA) are too interested in doing in this economy.
Does this mean that you can’t refinance your house? Absolutely not! You can still lock in a lower rate, shorter term (go from a 30 yr to a 15 yr), longer term (go from a 15 yr to a 30 yr), switch from an adjustable rate to a fixed rate, or combine your 1st and 2nd mortgages into one mortgage payment with a lower payment or a payment which includes principle reduction.
3. Use this time to focus on getting out of debt and limiting your purchases of “things” to those items you can pay for with cash. Running up credit card debt and buying vehicles (cars, boats, motorcycles, RV’s, etc), furniture, appliances or TV’s with credit is generally not the way to get or keep your finances under control.
4. Pay cash. Use cash. Save some cash. Keep some financial margin in your life buy having some cash in the bank to carry for 3-6 months in case your job, your health, your spouse – fail to meet your expectations. Having a good payment history on your current obligations will get you in the door if you need or want to refinance your house.
5. Anticipate the future – as much as possible. One of my Dad’s famous sayings is: “No one will loan money to a poor man!” Once you lose your job, get sick or hurt or get behind on your payments, you’re stuck. Especially in this current market – the squeaky clean borrowers are getting good loans. Don’t wait to lock in on historically low fixed interest rates if you don’t have one and could qualify. Waiting might put you into one of those categories of people who can’t qualify for one.
Is this a great market for quick and painless refinancing – absolutely! However, there are some new rules. Some of you are saying, “these are not NEW rules!” “These are the rules we all used to live by.” I agree that these rules may be new to this current generation of borrowers but are really time-tested rules for ensuring financial success – even when much seems to be crashing in on those all around us. Whether these rules are new or old stand-bys they are in place for now. Knowing them and playing by them will make you a winner – even in this economy! Now, let’s play!
Leave a Comment » | Uncategorized | Tagged: appraised value, Brian Short, cash, credit cards, Fannie Mae, FHA, Freddie Mac, IRS, low interest rates, mortgage, mortgage professional, mortgages, paying off debt, refinance, self-employed, tax returns, WJ Bradley Mortgage Capital Corp. | Permalink
Posted by Web Administrator
By Brian Short, CMC, CRMS, GMA
If you can count the number of days, weeks or months until you graduate and “enter the real world” of having your own place, buying your own food and doing your own laundry, then let me give you a few tips for how to set yourself up for financial success – especially when it comes to buying a owning your own home.
1. Don’t buy a house during your first year out of school or during your first year of marriage. Hold it – I’m a mortgage professional! Shouldn’t everyone BUY a house – as soon as possible??? Not always! Working through the adjustments of a new job, a new city, new schedule or a new spouse will be time and emotionally consuming enough without the added pressure of shopping for, qualifying for, buying and moving into a new house. Rent for your first year before you begin thinking of buying. You may have second thoughts about your location or employment situation in one year which will help you decide when and where you might want to buy a house.
2. When interviewing for a job give high priority to a job which can help you pay-off 
any school debt you may have in the shortest period of time. Think about knocking down you student loans and saving for a reliable car during those first couple of years after graduating. If you are not married, you will not want to bring your student loans with you into a new marriage. So make this a priority to pay off all your debts by living very simply and write out a payment plan to pay massive amounts toward your debts. Take on roommates, drive an older car, eat out less, buy less expensive clothes – do all you can to PAY OFF DEBT!
3. Live on a budget. Write it out. Put it on paper and stick to it. My wife uses www.mvelopes.com for our personal budgeting needs. It is an on-line “envelope system” which will let the user start each month with allotted amounts for each category in your budget and then be required to move money from one “envelope” to another if you overspend in an area before the month comes to an end. A user can “sync” your bank accounts to your “envelopes” and so you can move money out as checks clear or debit card transactions ar posted.
4. Keep balanced. Now is the time to develop life-long spending, lifestyle, health and relationship habits. You don’t have homework, term papers, exams and assignments hanging over you now – so you no longer have any (or fewer!) excuses! If you have been putting off going to the gym, starting a diet, learning to cook (or dance, or play a musical instrument, or paint), going back to church, looking up your old friends from high school, or whatever you have wanted (or needed) to do while you were in school, but never had the time or money to do – do it now!
However, do what will bring about balance in your life. If you have been without physical exercise for the past several years – do that. If you have drifted away from your faith and your deeping spiritual life – work on that. What will bring balance and what will give you new things to learn and make your life a joy to live? If you are happy – truly happy – others around you will be happy, as well.
5. Live with margin in your life. Each time you get paid, pay down debt and put some money away. If you are earning $4,000 each month, try to live on 1/2 of that amount until you have your debts paid off and you have built some financial cushion in your life. Dave Ramsey calls these “Baby Steps”. (www.daveramsey) You should have an Emergency Fund ($1,000) and 3-6 months of your expenses in savings before you begin your long-term and retirement savings funds.
Also, build in some margin in your health, your relationships and your intellectual development. Eat good foods (Not too much – your body is slowing down as you move into your 20′s and 30′s.) take vitamins and supplements to help you rebuild the past 20-25 years of abuse. Surround yourself with people who are “givers” who help you accomplish your life goals.
I concluded years ago that there were two kinds of people in the world: “Givers” and “Takers”. “Givers” 
know how to contribute to the the “building-up” process in others lives. “Takers” are constantly trying to get all they can from others – sympathy, pity, attention, money, worth, time, etc. Stay away from those. They will suck the life out of your life if they are given the chance. Be with those who, like you, desire to be “givers” because they are confident, secure, valuable, focused, sensitive and respectful of others’ time and possessions. Intentionally put yourself around others you want to become like.
These are great days of very few pressures and responsibilities – even though you may not feel like this at times. Enjoy your 20′s and see the world! You will have many years to be very committed to a house payment and job and family responsibilities. However, your 20′s can be great years of learning about yourself and developing good life-long habits which will bring about decades of joy and fulfillment if you spend these years wisely.
Leave a Comment » | College Graduates buying houses | Tagged: Baby Steps, balance, Brian Short, budgeting, buying a house, college graduate, Dave Ramsey, emergency fund, envelope system, givers, margin, mortgage professional, mvelopes.com, paying off debt, school loans, takers | Permalink
Posted by Web Administrator
|
Fox News Fox Business News Greta Wire Tennessean.com Tennessean Business USA Today Headlines USA Today Money Headlines
