Instead of the normal Parker Colorado Mortgage tip, I recently made a video to help an investor friend who has a home to sale. I believe that you will be able to see quickly why it is important to get your mortgage Parker or Colorado home loan now instead of waiting. Some people are waiting for home prices to drop. They aren’t dropping, but are rising! Real estate in Denver area bottomed out last year.
In this video you will see historical facts and actual financial examples that clearly demonstrates that if you wait, you will pay a lot more for your Parker Mortgage or Colorado home loan. You will also get a lot less home. You don’t want that. Watch Video.
Please let me know whether you agree or disagree. I appreciate your feedback even if you don’t agree with me.
Stay tuned for your next Parker Colorado Mortgage Tip. My goal is to ensure that you become an informed consumer for your next Colorado home loan.
Today’s Mortgage Parker Tip is a recap of what you should ask when selecting your Colorado Home Loan Broker. Start by checking the Colorado DORA site to make sure that he/she is licensed. These questions will help ensure that your next Colorado home loan is a “Good” one.
The Seven Questions - Mortgage Parker Colorado Broker
What is your rate? It doesn’t matter what the loan program you ask about, but what the response is. If the Mortgage Parker Colorado Broker gives you a rate without asking any questions, just thank him and hang up. You want a “Professional” Colorado Home Loan Broker; not “An Order Taker”.
Do You Own Your Home? This next question is if the Mortgage Parker Colorado Broker asked you a lot of questions to properly determine what your situation is and what your Colorado home loan goals are. You want someone who has been through and understands the process.
How Long Have You Been Doing Parker Mortgages? You want someone who has at least five years of experience to do your Colorado home loan.
What Parker Mortgages Do You Offer and What Is Your Niche? As Brokers, we usually have the same programs available with the exception of Government loans i.e. FHA. The reason for that is you have to get approved to offer these programs and some Parker mortgage companies won’t spend the time and money to get approved. If they answer that they can do ALL loans, this is a Red Flag. You want a Specialist.
Why Should I Get My Parker Mortgage or Colorado Home Loan From You? You are looking for details of exactly how he/she operates and not just he/she will provide great service and/or you will get you the lowest rate. Don’t fall the song and dance routine.
How Do You Determine When to Lock My Parker Mortgage or Colorado Home Loan? Unless he gives you names of services that he uses, don’t trust or use him. You should hear names like Mortgage Market Guide, Mortgage Coach RATEWatch, Rate Alert, or RateLink. It’s doesn’t matter which service he uses as long he is using one. Without this service, you run the risk of not getting a good rate.
What Parker Mortgage or Colorado Home Loan Do You Recommend that I Get? If you get only one recommendation, don’t use him. You should get several options to choose from so you can achieve your financial goals and get the “Right” Parker Mortgage or Colorado Home Loan.
The next Parker Mortgage Tip will address the new HUD “Shopping for Your Home Loan” booklet that is required to be given to you by your Mortgage Parker Colorado Broker prior to getting your Colorado home loan.
For today’s Parker Mortgage Tip, these are the last three questions to ask your Colorado Home Loan Originator. These questions will help you determine whether you should get your Parker Mortgage or Colorado home loan from him/her.
Three Final Questions – For Your Mortgage Parker Colorado Broker
Why Should I Get My Colorado Home Loan From You? If you get an answer that he will provide great service or that he will get you the lowest rate, don’t accept it. Most Mortgage Parker Colorado Originators will give you this sales pitch. Please do not fall for it. Ask exactly how he is going to do that and then watch him do a song and dance. If the Mortgage Parker Colorado Broker is worth anything, you should hear things such as: he is structuring the loan to match your financial goals, or he is setting expectations for you and him such as how he operates, his availability, how often he will update you, his client retention program, etc. If he is trying to “BS” you, it will be easy to detect.
How Do You Determine When to Lock My Parker Mortgage or Colorado Home Loan? He should quickly tell you the specific tools that he uses. If not, don’t trust him. You should hear names like Mortgage Market Guide, Mortgage Coach RATEWatch, RateAlert, or RateLink. These are the primary rate monitoring services. With rates being so volatile, you need to have what I call, a “Personal Rate Shopper” who monitors the rates for you. I use three of these services so I can properly advise my clients when to lock their mortgage Parker Colorado or Colorado home loan. I highly recommend that you use a Personal Rate Shopper. You do not want to get burned by being quoted one rate and then getting a higher one at closing.
What Colorado Home Loan Do You Recommend that I Get? If you get only one option, that Mortgage Parker Colorado Broker isn’t doing his job. You should get several options to choose from. For instance, you can save a lot of money when you compare options over time depending on the rate, the terms, the closing costs, etc. You should see the various options so you can make an informed decision. I’ve used special software for over 6 years that allows my clients to easily compare and understand what loan program will be best for them. I guide them through the process. Unlike most Colorado Home Loan Brokers, I do not churn my clients. I get them the right Parker mortgage the first time. Again, if the Mortgage Parker Colorado Originator you are talking to isn’t doing this, you are placing yourself at financial risk. Please protect yourself by getting professional advice.
The next Parker Mortgage Tip will put all these questions together for easy reference. They will come in handy when you are interviewing a Mortgage Parker Colorado Broker for your next Parker mortgage or Colorado home loan.
In today’s Parker Mortgage Tip, I will share two more questions to ask your Broker that will help you determine whether you should even consider getting your Mortgage Parker or Colorado home loan from him/her.
If you got satisfactory answers to the first two screening questions, ask these two questions.
More Questions to Ask For Your Next Mortgage Parker Colorado
How Long Have You Been Doing Parker Home Loans? You want a Colorado Home Loan Broker who has at least five years of experience to do your Parker mortgage. Why do I recommend 5 years? Rates go up and down in cycles. When rates drop where they are extremely low, it seems like everyone becomes a mortgage Parker Broker. They want to make a fast buck. Even a Caveman can give you a lower rate because it doesn’t take any skill. However, are you really getting the “Correct” loan? When rates are high, an inexperienced Parker Colorado Mortgage Broker may not be able to properly advise you. You need to get your Parker mortgage or Colorado home loan from a broker who has gone through these financing cycles. You don’t want to put your biggest asset and debt in the hands of a novice. It could be financially fatal!
What Loans Do You Offer and What Is Your Niche? Parker Mortgage Companies normally have the same programs. The usual the exception is that some don’t have Government loans i.e. FHA/VA. The reason for that is they have to get approved to offer these programs. Some Colorado Home Loan companies won’t spend the time and money to get approved. The purpose of the first question is to put them at ease. If they answer that they can do ALL loans and don’t have a niche or specialty, this is a Red Flag. Consider the medical industry. Would you rather see a Generalist or a Specialist? It is extremely difficult to keep current on all the different loan programs. That is why some Colorado Mortgage Brokers specialize in JUMBO or Conventional loans. Parker mortgage companies are beginning to offer FHA loans because that is a necessity to stay in business. I’ve been doing FHA Colorado home loans for over 11 years. The way you get a borrower qualified is different and the paperwork is a lot more complicated than a conventional loan. With the constant changes in underwriting guidelines, it is a challenge to stay proficient in all of the loan programs. Unless you have prefect credit and a lot of assets, you will probably need a FHA/VA loan so you should seek out a mortgage Parker Colorado Broker who specializes in Government loans.
The next Parker Mortgage Tip will address the next couple of questions you should ask Colorado Mortgage Brokers when you shop for your next mortgage Parker CO or Colorado home loan.
In today’s Parker Mortgage Tip, I recommend that you ask your Broker two questions. They will help you determine whether you should even consider getting your mortgage Parker or Colorado home loan from him/her.
I’m only going to address the first two questions that you should ask. They will help you eliminate the non-professional loan originator very quickly.
Questions to Ask – Next Parker Mortgage
What is your rate for a FHA 30 year fixed loan? Use any loan scenario, i.e. Conventional 30 Year or a 3 Year Adjustable Rate Mortgage, etc. It doesn’t matter what the loan program is but what matters is the response. If the Mortgage Broker tells you a rate without asking any questions, you do not want to do business with this person. Say Goodbye and go to the next one. A true mortgage professional will not quote a rate without first knowing more about you and what type of transaction it will be i.e. W-2 employee or Self-Employed, your Credit worthiness, estimated property value, loan amount, a rate term or a cash out loan, etc. This would be the same thing as going to the doctor and he/she prescribes medications for you without knowing anything about you and your medical history. That is called “Malpractice!. This doctor would be negligent and would violate the code: Do No Harm. The results could be fatal or you have long term disability. The mortgage industry is no different. You could become financially bankrupt on your next Parker mortgage or Colorado home loan if you don’t work with a true mortgage professional.
Below is next question to ask if the Mortgage Broker asked you a lot of questions and properly determined what your situation is and what your mortgage Parker or Colorado home loan goals are. It’s a simple, but a very revealing question
Do You Own Your Home? There are two reasons to ask this question. First, it will take the Mortgage Broker by total surprise. You want to see how the broker handles surprises. Does he become defensive, does he ask why you want to know, does he give excuses for not being a homeowner, or does he just answer with a Yes or No? You will be able to learn a lot about a person’s ability to handle surprises and stress. The second reason is you want to work with someone who has gone through the home-buying process. For instance, it is like knowing the difference between being a mother who has actually gone through child birth versus someone who has just read about it. Isn’t there a big difference? Definitely! You need to protect your biggest financial asset. It is very important to get the professional mortgage advice for your next” mortgage Parker or Colorado home loan and it all starts with the selection process.
In my next Parker Mortgage Tip, I will share a couple more questions to ask Colorado Mortgage Brokers when you shop for your next mortgage Parker or Colorado home loan advisor.
In today’s Parker Mortgage Tip, I am going to share what a Representative from Wells Fargo Bank confessed about their business operations. This will reinforce why it better for you to get your next mortgage Parker Colorado or Colorado home loan from Colorado Mortgage Brokers.
This Wells Fargo Bank Representative told our company that they are very committed to their “Wholesale” business. Wholesale means that the Bank does not directly originate the loan but it comes from outside sources such as Colorado Mortgage Brokers. This representative went on to say that 60% of Wells Fargo business is from Wholesale. This Wells Fargo Representative added that their Wholesale business is More Profitable and there is also Less Fraud. If you go back to my earlier posts about the differences between Banks and Colorado Mortgage Brokers, you will see why. Banks don’t pay our salaries or any costs associated with bringing that mortgage Parker Colorado or that Colorado home loan to them. Banks such as Wells Fargo makes more money when we do it than doing the loan internally.
There is also Less Fraud! This again reinforces the fact that you should consider getting your next Parker mortgage or Colorado home loan from Colorado Mortgage Brokers. Don’t go to the Banks. Banks depend on Colorado Mortgage Brokers to keep them in business! Although this is the truth, banks will not tell you this. They have to protect that professional image. Banks give Colorado Mortgage Brokers special pricing incentives to bring your mortgage Parker Colorado or Colorado home loan to them.
The next Parker Mortgage Tip will address things you should ask Colorado Mortgage Brokers when you shop for your next mortgage Parker Colorado or Colorado home loan.
In today’s Parker Mortgage Tip, we will summarize the differences between a Loan Officer from a Bank and Colorado Mortgage Brokers. If you are not aware of the impact that they may have when you get your next mortgage Parker Colorado or Colorado home loan, it may cost you tens of thousands of dollars. I would like for you to be armed with the right information.
There are Four Major Differences:
- Compensation: Bank/Credit Union Loan Officers are paid a salary and Colorado Mortgage Brokers are typically “Commissioned”. By itself, neither is bad. However Banks would like for you to think that you can get an unbiased Parker mortgage or Colorado home loan from them. Banks spend a lot money conveying this message which isn’t necessarily true.
- Loan Programs: Banks have limited mortgage programs and Colorado Mortgage Brokers have a lot more loan programs available to them since they have numerous lenders to choose from. It’s important for you to have ability to get the “Right” mortgage Parker Colorado or Colorado home loan. You don’t want to get the “Wrong” home loan from the Bank just because that was all they had available.
- Interest Rates: As I said above, “Compensation” by itself is neither good nor bad. However when you put combine all the money that the Banks have to pay their staff and all of the other expensive overhead costs, you are more likely to get a higher interest rate. You don’t want to become a victim by paying higher interest rates on your Parker mortgage or Colorado home loan. Again, Colorado Mortgage Brokers have very little overhead so we can normally provide you with a much lower rate on your mortgage Parker Colorado. Makes sense, doesn’t it?
- Qualifications: Banks/Credit Unions have their own standards. They can hire “Anyone”. However with Colorado Mortgage Brokers, we have to meet all the Colorado DORA’s Division of Real Estate mortgage broker licensing requirements. I personally believe that we are much better qualified to advise you on your Parker mortgage or Colorado home loan. We have proven our competence whereas Loan Officers haven’t.
How does all this save you from needlessly spending tens of thousands of dollars on a mortgage Parker Colorado? If you get the “wrong” loan program because it wasn’t available at the Bank and/or the Loan Officer wasn’t trained/qualified to properly advise you and/or you get a higher interest rate due to their expensive overhead costs, you may pay for it for many years. Just ask all the home owners who got a “Bad” loan and who are now in foreclosure. You don’t want to be a victim.
The next time when you go to get a mortgage Parker Colorado or a Colorado home loan ask yourself, “Do you want to get it from a unlicensed, probably a young, minimum waged Bank Loan Officer who can only offer you their few loan programs which may or may not be “Right” for you and at a Higher interest rate?” I think I know your answer. I want you to get the “Right” Parker mortgage or a Colorado home loan from Colorado Mortgage Brokers.
The next Parker Mortgage Tip will address things you should ask Colorado Mortgage Brokers when you shop for your next mortgage Parker Colorado or Colorado home loan.
In today’s Parker Mortgage Tip, I would like to further explain the difference between a Loan Officer from a Bank and Colorado Mortgage Brokers. They can significantly impact your next mortgage Parker Colorado or Colorado home loan.
Interest Rates:
Banks Usually Have Higher Rates: As you can imagine, banks have large overhead expenses. They have to maintain and finance their own “Brick and Mortar” buildings. Banks also have to pay salaries for their employees, health care benefits and 401K plans, etc. Don’t forget marketing expenses. Those bank TV commercials aren’t cheap! Banks start off in the “Red” each month due to all these expenses. The way for them to stay afloat is to make money by charging higher interests on Parker mortgages and Colorado home loans. They already nickel and dime you for their normal bank fees such as check return, ATM, insufficient funds charge, etc, but they really make their BIG MONEY by charging you a higher interest rate on Colorado home loans. Whenever you get a higher interest rate on your mortgage Parker Colorado or Colorado home loan, you can pay tens of thousands of dollars more than you should over the life of your Parker mortgage.
Colorado Mortgage Brokers Usually Have Lower Rates: Most of the Parker Mortgage Brokers I know work from home. I do and I enjoy it. There’s almost no overhead so we can provide you with a lower interest rate on your mortgage Parker Colorado or Colorado home loan. Banks rely on us! Since Banks don’t pay us a salary or our marketing costs for bringing them a mortgage Parker or a Colorado home loan, they pay us a fee. As a Parker Mortgage Broker, I will usually beat the Bank’s closing costs and/or interest rate by at least .125% to 25%. That is lot money that you can save on your Parker Mortgage over the life of a Colorado home loan.
Qualifications:
Banks Make Their Own Standards. Whenever you go into a bank or credit union, the building looks fantastic. All the bank employees are dressed very nicely and everything looks so professional. Let me use a simple example. When you walk into a high end car dealership, you expect a certified, well trained, experienced mechanic to properly diagnose and service your Mercedes, BMW, etc., right? Shouldn’t you expect the same from a Bank? Unfortunately this may not be the case. Banks can hire ANYONE and train them as little or much as they please. There is NO governmental oversight! Let me ask you a simple question about your own experiences when you got a new job. How much training did you actually get? Did you end up learning most of your job on your own? Were you paid what you were worth? Banks, like most other businesses, will usually pay the least amount that they get away to get the job done. My first job in the mortgage Parker Colorado and Colorado home loan industry, I was paid about $350 per loan. It wasn’t a Bank, but the practice was the same. I soon learned that the lender was making about $5,000+ per Colorado home loan and I was being paid “Peanuts”. I also discovered that the lender was significantly overcharging their borrowers for their Parker mortgage Colorado or Colorado home loan. I resigned. I would not participate in any scheme to rip people off!
Colorado Mortgage Brokers Have to Adhere to Higher Standards: Colorado Mortgage Brokers had to become licensed almost two years ago in order to originate a Colorado home loan. Bank and Credit Union Loan Officers don’t have to be licensed! As a Parker Mortgage Broker, I had to:
- Be Fingerprinted and Pass a Background check by the Colorado Bureau Investigation
- Secure a Surety Bond for Mortgage Broker for $25,000
- Carry errors and omissions insurance for $300,000
- Participate in 40 hours of education that covered Federal and State Law, mortgages, and Businesses and Trade Practices
- Pass a comprehensive two-part written Colorado Mortgage Licensing Exam
- Meet and Adhere to all of Colorado Mortgage Broker current licensing requirements.
Go back to my first posts about DORA, you will see that it isn’t easy to achieve the elite status of Colorado Mortgage Brokers. DORA inactivated 4,560 licenses in August. Most people can’t meet these high requirements. Bank Loan Officers are exempt and I bet you that they are not trained nor qualified to properly advise you.
Ironically one of my best referral sources as a Parker Mortgage Broker is the Banks. When borrowers go to the Bank and realize that the Loan Officer (a lot of times a young kid) didn’t have the foggiest idea of what he/she was doing and/or they didn’t have the loan program that they wanted, they called me.
The reason for these posts is that I not only want you to get the “Right” mortgage Parker Colorado or Colorado home loan but also a “Good” one.
The next Parker Mortgage Tip will summarize these four major differences because they are extremely important when you start deciding on who will help you with your mortgage Parker Colorado or Colorado home loan.
Today’s Parker Mortgage Tip will address the difference between a Loan Officer from a Bank and Colorado Mortgage Brokers. Not knowing the difference could cost you tens of thousands of dollars on your next Parker Mortgage or Colorado Home Loan!
When I say “Bank”, I’m referring to any lending institution where you can go for your Parker Colorado mortgage. This would include lenders like Wells Fargo, Chase, TCF, Credit Union, etc. to name a few. Colorado Mortgage Brokers are individuals or firms that serve as an individual agent for the borrower and the lender. I am an example of a Parker Colorado Mortgage Broker.
There are 4 Major Differences, but I’ll discuss only the first 2 right now.
Compensation:
Banks pay their Loan Officers a Salary. Banks usually advertise that their loan officers are salaried. Banks want to infer that they aren’t motivated by the almighty dollar. They want you to believe that they are looking out for your best interest when you apply for your Parker mortgage. This isn’t necessarily true or accurate picture. Do you remember all the negative media that the well known banks have received for the past 2 years for placing people in “Bad” loans? Do you really think that they have changed their mode of operation after all these years just to give you now a “Good” Parker Mortgage?
Colorado Mortgage Brokers are usually Commission Only. Just because Colorado Mortgage Brokers are paid via commission, doesn’t necessarily make them greedy/dishonest. Most of the Parker Colorado Mortgage Brokers that I know are brokers because they prefer their “independent” work and life style. Let’s put it in simple terms. “Have you ever had a “Bad” boss”? Or as a manager/supervisor, “Have you ever gotten tired of dealing with employee problems’? Colorado Mortgage Brokers are just like you. They enjoy their freedom and job flexibility. Most people don’t realize that Colorado Mortgage Brokers have the flexibility to structure a Parker Mortgage or Colorado home loan without interference from the lender. This is crucial because we can help people get the “Right” Colorado home loan. Banks normally have a certain profit margin; otherwise they won’t do the loan… Colorado Mortgage Brokers can still do a Parker loan even if they make only a little bit of money. We know that the borrower will probably refer us to a family member, friend, or co-worker because we go took great care of them when the Big Banks wouldn’t. It’s all about doing the Right Thing!
Loan Programs:
Banks have Limited Mortgage Programs. A Bank can only offer a Parker Mortgage or Colorado Home Loan that they have. If they don’t have what the correct Parker loan for you, do you think that they will tell you that and refer you elsewhere? Or would they just offer you another in-house loan that they have, just to keep your business? The sad part is that you may not know that you should/could have had a better Parker mortgage or Colorado home loan until long after you closed.
Colorado Mortgage Brokers have Unlimited Mortgage Programs. Since we are “Independent”, Colorado Mortgage Brokers can choose from among many lenders and get you the “Right” Parker mortgage or Colorado Home Loan. Lenders have different programs. Additionally, they usually have better interest rates than you would get from a bank. Wouldn’t you rather get a Parker mortgage or Colorado home loan that fits your particular situation; not just what the bank has available?
Don’t be fooled, these first two differences may not seem significant but they are. If you are like everyone else, I’m sure that you saw all the negative headlines the past 2 years about the greedy banks and their overpaid CEOs and staff who took advantage of their borrowers. They have taken billions of dollars of “Bailout Funds” and most people still haven’t seen any real change. It DOES matter who you get your Parker mortgage and Colorado home loan from.
In my next Parker Mortgage Tip, I will address the other two major differences. You will see even more clearly how your decision on who you use can either save or cost you a lot of money on your next Parker mortgage or Colorado home loan.
Colorado Home Loan: DORA Should Be Your First Step!
By · CommentsHere is today’s Parker Mortgage Tip. I want to further explain why you should check with DORA as your first step in your mortgage Parker Colorado home loan process. Don’t start with the Better Business Bureau (BBB) for selecting one of the Colorado Mortgage Brokers to help you get a Parker mortgage.
- The BBB is a great resource for checking out a business, but it isn’t appropriate when it come deciding who you should trust to do your Parker mortgage. Since DORA is responsible for overseeing the real estate industry professions, they are a much better source. They license and develop the standards and enforce these standards for appraisers, real estate agents, and Colorado mortgage brokers. DORA, not the BBB, has the detailed information you need to start your Parker mortgage or Colorado home loan process.
- The Better Business Bureau reports at the company level. You won’t be able to get any information on their individual employees. If you want to find out about Colorado mortgage brokers qualifications, you have to check with DORA. Remember their website where you can quickly determine whether your Parker mortgage broker is licensed. Don’t take a shortcut and skip this first step.
- The BBB can give a high rating without knowing whether the individual helping you with your Parker mortgage is any good. We all know that there are good and bad employees in every company. It is no different with Parker mortgage companies. DORA plainly and clearly posts denied Colorado mortgage brokers and information on the Colorado Mortgage Brokers who have or had disciplinary actions. You got to have this vital information so can see if the Colorado mortgage brokers you are considering have a valid license. If you do nothing else, please take time to research your Parker mortgage broker.
I know that I’ve really been emphasizing using DORA to do your homework on selecting your Parker mortgage broker. You can still use the local BBB to see if the Parker mortgage company has any complaints. Take a moment and bookmark DORA’s website so you will have it handy when you start your Parker mortgage or Colorado home loan search. http://www.dora.state.co.us/real-estate/index.htm.
Tomorrow’s Parker Mortgage Tip will reveal whether you should get your Parker mortgage or Colorado home loan from a local bank/credit union or from a licensed Parker Mortgage Broker.