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Jim Martin, CMC, Crms's Advice

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Jim Martin, CMC, Crms wrote:

Wells Fargo, PNC or local lenders

Answer
Good Afternoon,Saw your post.  As a group, mortgage buyers have been trained to shop for a mortgage based on rate and nothing else.  While rates are very important, given that you will be paying your rate for the next 30 years, it should not be the only determinant.  Here are some thoughts:1.  Who will be managing your application after your initial interview?  Would it be the loan officer who knows your loan and requirements or a processing staff who may not take responsibility for your loan or care.2.  How long will it take to get the loan done?  Find out from them how long it takes on average to close a loan.  You may wish to contact Realtor or title companies in your area to see what reputation the lender has.3.  How much experience has the loan officer had in the business.  If they are not in the business for a long time, they may not have the expertise to recommend the right product or to solve any issues that may come up during the processing of your loan.  You can go to http://www.nmlsconsumeraccess.org/ and look up the loan officer's employment history.  4.  There is some advantage to going with an independent mortgage company and some advantage to a big bank.  An independent mortgage company usually has individuals on commission.  They will work on your loan after hours, on weekends all to get you to close.  In addition, non-bank mortgage loan officers had to take a 20 hour class and pass a rigorous state exam to get their license.  Bank loan officers do not.  In addition, independent mortgage companies typically do not carry the overhead costs that larger banks do, thus they may be able to negotiate better on the fees.  The banks however, have resources that they can bring to bear and usually, they are the ones who will be servicing your loan, but not guaranteed.5.  Look for companies with good BBB ratings.   http://www.bbb.org/6.  See if the loan officer has a "Brag Sheet" or links to client reveiws.  Check them out and see what their clients have to say about the services that they received.7.  You can tell if you are working with a good loan officer if they listen to you more than they talk. May sure that they understand your needs, wants and concerns.  One of the good questions they should be asking is "How long are you planning on staying in this home or in the mortgage?" If they don't ask you this question, they are not being thorough.As for your rate, it is OK, but I checked with some of our lenders and our most qualified clients are getting 4% on a 30 year purchase  (APR 4.055%).If there is any additional questions you may have, feel free to respond here.  If you need a loan in VA, PA or FL, I would be glad to assist.Best wishes on your new home.Jim
June 25
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What can I do to get more (or better) quotes for my loan request ZR-HZCKMVD?

Answer
MilkThistleBefore you make blanket statements about those of us who have designations, you may wish to be better informed.There are a number of organizations who offer professional designations in the mortgage industry.  There may be those who "pay a couple of hundred bucks for some made up abbreviation", as you state, however, the trade organizations such as the Mortgage Banker's Association of America and the National Association of Mortgage Professionals each have designations that are extremely difficult to obtain. Individuals with these designations have worked in the industry for years.  They have represented your industry in lobby events, they have contributed to their local chapters in leadership positions, they have taught the loan officers and staff classes to keep the industry up to date, they have taken additional education classes to improve their understanding of the industry, and they have taken some of the most rigorous tests to demonstrate their competence.  These individuals have taken these steps to demonstrate to the public that they are professionals who value their profession and have additional skills and experience that separate them from the rest.I would recommend highly that an individual who is looking for a loan officer who has a designation, ask them about the designation.  Who issued it?   What were the requirements?  What does it take to retain it? 
February 28
(1)

What can I do to get more (or better) quotes for my loan request ZR-HZCKMVD?

Answer
You could go to the web and hit on a site for a rate quote, but you will get bombarded with phone calls all day and night from all the lenders.Many mortgage shoppers feel that they need to get "The Best Rate" and that is the best indicator of whom you should use.  It has been my experience as a previous wholesale account executive who had many different types of mortgage lenders clients, that the lenders who are offering "The Best Rate", frequently cannot provide the service to back it up.  You will find that they do not return emails or calls until days later, they may not provide the appropriate product you need and may not have the experience or knowledge to guide you through the process with the least amount of pain.Certainly, check the web for the going rates and get a feel for what is out there.  However, do your research and find strong lenders who will provide a good rate, but also the experience and knowledge with service you can rely on.Zillow maintains reviews on their professionals.  Look through them in your area.  Check with friends and neighbors and see if they can recommend anyone.  The national mortgage trade associations maintain information on certified loan officers.  Those who are certified went above and beyond with additional education requirements, passed tests and had to demonstrate competency and experience in the industry.  These folks are usually very competitive and knowledgeable.Good luck. 
February 27
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Should I ask my mortgage company to refinance or go elsewhere?

Answer
You are getting good advice on this question. To add a few points:1.  Your current servicer is not going to just lower your rate without refinancing.  They are going to have you pay fees just as any other new lender will do.  May as well shop around and see who offers what.2.  Be sure you are comparing apples with apples so to speak.  Since you have been paying for 14 years, you probably don't want to go back to another 30 year loan.  Be sure your offers are for the same term.  Don't let a lender sell you payment as you may end up paying gazillions more in interest by extending the term back to 30 years.  Your rate is high enough that you should be able to trim the term to 15 years and still lower your payments.3.  As for credit, as long as you do your rate shopping during a 14 day period, all of the credit pulls should be counted as 1 and will not adversely impact your score.  The credit agencies that put together the score system wanted to make sure you could shop around.4. After you narrow your list down to 2 lenders, find out what the lock in policies are. Rates are lowering now. A good lender will allow you to "Float Down" if you lock and the rates continue to improve. Ask.Good luck and don't delay.  Every month is costing you money!!
October 25 2013
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Do I really need to paint? Let's sell it "as is"...

Response
Henri,Excellent advise as painting a home is the cheapest way out there to improve your drive by appeal.I would add that if you have a home built before 1978 with peeling and chipping paint, your buyers who wish to use FHA or USDA financing will require that the home be painted.  If this is done after the contract, then the time frame to get it done is compressed and forces the sellers to either pay someone to do it, or sacrifice the limited time they have to paint a home instead of getting ready for their move.Good Luck to you all.
October 25 2013
(1)

I have a second home. Not willingly. My daughter's family of 5 moved in with me after their forecl

Answer
Just because a home has been re-classified as an investment or non-owner occupied will not disqualify you for a loan, but it will require that you have 20% equity to refinance and your scores will need to be higher than that of an owner occupied home.  You should have a 660 or better.  Some lenders may require less, but rates will be higher.Assuming you have the equity, refinancing is pretty straight forward.  Simply contact a lender and let them know you wish to refinance your investment home.  They will use the equity in the home, so a "Down Payment" will not be required.If you do not have the equity, you may wish to talk to a lender who does not sell their loans on the secondary market.  They may be able to offer you a "blanket mortgage" where they can use the equity in both of your homes to lower your rate.Good Luck.
October 25 2013
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Middle Score 606, is a FHA 3.5% down mortgage available?

Answer
Christy,Well done on getting your credit under control.  Keep on this track and your scores will soon be over 700!FHA lenders come in all stripes.  We have programs at 580+, but they require that you be able to prove your housing payment history with a cancelled check or a verification of rent from a management company.  IN addition, they are going to require that you have your own funds of at least 3.5% of the purchase price into the deal.In addition, if your score was hit due to a collection, short sale, foreclosure, or bankruptcy, you may not qualify if these criteria are not satisfactorily met.If you are calling around and discussing with other lenders, find out:1.  How many FHA loans have you done under 620?2.  What additional "Overlays" are required beyond FHA's requirements?3.  What are the credit requirements aside from score?4.  What is the rate?You may be better off taking another month or so and work on your score to get it over 620 so that you can meet a lot of lender's standard FHA program.  You will get a better rate to boot.If you are looking in VA, PA, MD or FL, I may be able to assist.Good luck.
October 25 2013
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Our situation No 2 yr W2 as such- please advise

Response
Toni,If your lender is going to sell your loan on the secondary market, then in most cases, they will need to verify at least the last 12 months of income and frequently the last 24.  If you can verify your earnings during that period of time and they are consistent with what you are doing currently, then no matter what country they were earned in, you should be able to get credit for it.  The lender will have to translate to English and to dollars the documents you provided, but other than that, you can make your case.If you wish, you can look for a portfolio lender who retains the loan themselves and does not have to go by the secondary market guidelines.  Sometimes with the amount down that you are proposing, they will allow for more flexibility in documentation.Good luck.
October 21 2013
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I have been relocated by my employer

Response
You are going to have an issue with USDA as you currently own a home.  The USDA does not permit you to finance with USDA if you own any other real estate.  If you were to sell the home, then you could go USDA.USDA construction loans are not something that many lenders know about or are able to do.  You may wish to contact your state's USDA regional office to see which lenders are doing the USDA construction loans.  In addition, while you are on the phone with the USDA, check to see if the area in which you are looking to purchase is eligible for USDA financing.  USDA restricts where they lend to their defined "Rural" markets.  Click here:  http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do In addition, the USDA does not finance homes in flood zones or with luxury items such as inground swimming pools.Be sure also, that you do not have the 20% down payment in assets or that you income does not exceed the limits for USDA in your county.If you need further clarification or have additional questions, contact me through this site.Best wishes.
October 21 2013
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Are you self employed why you do not have W-2?

Answer
A self employed borrower does not get a W-2 unless the company that they own is paying them a salary and reporting it on the W-2 form.  I am sure that Bill Gates is getting a W-2 for example.Very frequently, a self employed borrower will report their income on Schedule C of their personal returns or even Schedule E if they have a partnership.Consult with your tax advisor if you have specific questions on your personal situation.Good luck.
October 21 2013
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