Posted by rdla on September 20, 2004 at 08:17:27:
Hi Able,
You help this borrowers in gathering all the docs and info and let them fill out Loan applciation forms.
At least 620 Fico, 2years proof of stable documented employment and down payment must be in their bank accounts for 2 months. All delinquent accounts must be paid or current in credit report. Credit report msut be cleaned of discrepancies.
Email me if you need more assistance.
Bad experiences/Questions–MORTGAGE BROKERS!! - Posted by ablelearner@comcast.net
Posted by ablelearner@comcast.net on September 20, 2004 at 24:34:04:
Bad experiences with mortgage brokers cause me to wonder . . .
What are key questions I should ask mortgage brokers to find out whether they are the type who will surprise me at the last minute, or at the closing with all kinds of prepayment penalties, reductions in total payouts we’ve never discussed.
What can I ask up front to find out whether they have ever worked with an investor before. Or whether what they say will happen will in fact happen.
I have several rent-to-buyers who are ready to buy. They’ve cleaned up their credit, or they’ve had their year of on-time payments, or both. I thought I had a good broker for them and I tried him myself. I don’t want to sic this guy on any of these nice folks, now.
Able
Re: Bad experiences/Questions–MORTGAGE BROKERS!! - Posted by E.Eka
Posted by E.Eka on September 21, 2004 at 15:43:22:
When I bought my first place, a condo, I had a mortgage broker “conveniently” slip in a prepayment penalty clause as I sat at the closing table. I wanted to get up and strangle him, HOWEVER, I enjoy my freedom way more than the satisfaction I would have attained ringing his cowardly neck. Also, the prepayment penalty was only 2 months of interest so i was ok. They also tried to slip in some fees that weren’t previously negotiated.
Won’t/didn’t do business with those jokers again.
The thing is, you’re pretty much screwed because they know that you don’t have an alternative at the 11th hour.
Re: Bad experiences/Questions–MORTGAGE BROKERS!! - Posted by rm
Posted by rm on September 20, 2004 at 21:21:30:
Ask around at the local REIA.
Talk to realtors that are active in the markets you’re selling in.
Ask the MB for the names of the last 10 people they’ve written a loan for.
Yes— the last 10.
Call all 10 of them and ask if they had any surprises, any promises broken.
Ask if they closed on time.
Ask if their payments are what they were originally told.
Ask if they’d do business with this person again.
Re: Bad experiences/Questions–MORTGAGE BROKERS!! - Posted by Kevin IL
Posted by Kevin IL on September 20, 2004 at 16:45:33:
The other posts have offered solid advice. I would add that the mortgage broker’s relationship with the underwriters is very important. The underwriter ultimately decides whether or not to fund the loan.
Mortgage brokers are a lot like real estate agents. The top producers in your area are the best bet for getting a deal done.
Re: Bad experiences/Questions–MORTGAGE BROKERS!! - Posted by Russ Sims
Posted by Russ Sims on September 20, 2004 at 14:23:59:
I really feel your pain. So many mortgage brokers will tell you what you want to hear, but can they deliver?
Do you have any other investors in your area that you could ask for referrals? That’s probably the best way to get the name of a mortgage broker who can deliver.
When we shop for a broker, we tell them that we’ll give them one of our tenant/buyers to work with on financing. If the broker can deliver on that one, well give him/her another one. If that one goes through,we tell him he/she can have the names of dozens of our tenant/buyers (to be contacted only after we get permission from t/bs to give their names out).
When we refer a T/B to this broker, we let T/B know that they are not required to use this person, and that we have no affiliation with this broker/comapny. We make it clear that if at any point the t/b does not feel comfortable with the broker, they can bail with no hard feelings from us. The problem with refering is that if the broker screws up, it reflects poorly on you. In some tenants eyes it becomes your fault they can’t get financed. This is not the attitude you want them to have. On the flip side, if the t/b goes shopping for their own financing, who knows what they’ll wind up with? If they go with your recommendation, at least you know that broker will have the motivation of wanting the rest of your business. In theory they’ll work that much harder to close the transaction.
Ask brokers how long they’ve been in business. Do they have a physical office or do they work from home? Can they give you a list of satisfied clients? Do they have specific experience with financing lease/options?
Who has the biggest ad in the phone book. Chances are they arte among the most experinced brokers in your area. Hope this helps!
Russ