Archive for Colorado DORA
Today’s Denver Colorado Mortgage Tip is a recap what you should ask when selecting your Colorado Home Loan Broker. Again, first check the Colorado DORA website, to make sure that he/she is licensed. These questions will help ensure that your next Denver Mortgage or Colorado home loan is not a “Bad” one.
7 Must Ask Questions - Mortgage Denver Broker
What is your rate for a FHA 30 year fixed loan? It doesn’t matter what the loan program you ask about, but what the response is. If the Mortgage Denver Broker gives you a rate without asking any questions, just thank him/her 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 Denver Broker asked you a lot of questions to properly determine what your situation is and what your Denver or Colorado home loan goals are. You want someone who has been through the process.
How Long Have You Been Doing Denver Colorado Mortgages? You want someone who has at least five years of experience to do your Denver mortgage.
What Denver Home Loans 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/VA. The reason for that is you have to get approved to offer these programs and some Denver mortgage companies won’t spend the time and money to get approved. If they answer that they can do ALL loans and don’t have a niche, this is a Red Flag. You want a Specialist.
Why Should I Get My Denver Mortgage or Colorado Home Loan From You? You are looking for details of exactly how he operates and not just he will provide great service and/or you will get you the lowest rate. Don’t fall for “BS”.
How Do You Determine When to Lock My Denver Colorado Mortgage or Colorado Home Loan? Unless he immediately gives you specific tools that he uses, don’t trust or use him. You should hear names like Mortgage Coach RATEWatch, RateAlert, Mortgage Market Guide, or RateLink. It’s not as important as to which service he uses, but that he is using at least one. You want to protect yourself from the big rate swings and get a good rate.
What Denver 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” Denver Colorado Mortgage or Colorado Home Loan.
The next Denver Colorado Mortgage Tip will address the new HUD “Shopping for Your Home Loan” booklet that is required to be given to you by your Mortgage Denver Broker prior to your Denver Colorado mortgage or Colorado home loan.
Denver CO Mortgage Tip: Get Your Colorado Home Loan from a Bank or a Broker? (Recap)
Posted by: | CommentsIn today’s Denver CO Mortgage Tip, I want to summarize the differences between a Loan Officer from a Bank/Credit Union and Colorado Mortgage Brokers. If you don’t know them when you’re shopping for your next Denver mortgage or Colorado home loan, it could cost you tens of thousands of dollars. I want you to be an informed consumer!
Here are the Four Major Differences:
- Compensation: Bank Loan Officers are paid a salary and Colorado Mortgage Brokers are normally “Commissioned”. Neither one by itself is bad although the Banks will try to infer that you can get a more objective Denver mortgage or Colorado home loan from them. This is not necessarily true.
- Loan Programs: Banks have limited mortgage programs and Colorado Mortgage Brokers have access to a lot more home loan programs since they are not limited to one lender. Wouldn’t you rather have the ability to get the “Right” Denver CO Mortgage or Colorado home loan when you don’t fit the normal Bank mortgage? Sure you would.
- Interest Rates: Remember that I said that “Compensation” by itself was neither bad nor good. However when you combine the compensation that Banks have to pay their staff and all the other large overhead costs, it is very expensive for them to operate. You are going to help pay for their overhead with higher interest rates on your Denver Mortgage or Colorado home loan. That is why Colorado Mortgage Brokers can normally give you a better rate on your mortgage Denver. We have very little overhead so we can pass the savings to you.
- Qualifications: Banks have their own internal standards and can hire “Anyone”. However as Colorado Mortgage Brokers, we have undergone a strict background check, must have a $25,000 Surety Bond and a $300,000 Errors and Omissions Insurance policy, must have participated in at least 40 certified-mortgage training, pass a written test that verified our knowledge at Federal and State levels, and had to comply with Colorado DORA’s Division of Real Estate licensing requirements. We are well-qualified to advise you on your Denver Colorado mortgage or Colorado home loan. We have to be Licensed!
How does all this save you from needlessly spending tens of thousands of dollars on Denver CO Mortgage? If you get the wrong loan program because it wasn’t available at the Bank and/or the Loan Officer at the Bank wasn’t trained or qualified to properly advise you and/or you get a higher interest rate due to the Bank’s large overhead, you will definitely pay for it. Ask the millions of home owners who got the “Bad” loans and who are in foreclosure.
So the next time when you need to get a mortgage Denver or a Colorado home loan ask yourself, “Do you want to get it from a unlicensed, probably minimum waged Bank Loan Officer who can only offer you a few loan programs which may or may not be “Right” for you at a Higher interest rate?” I have never gotten any of my Colorado home loans from a Bank. It didn’t make any financial sense even before I became a Colorado Mortgage Broker and it still doesn’t.
Hopefully you now understand why I have spent so much time on explaining these differences. I want you to get the “Right” Denver mortgage or Colorado home loan from Colorado Mortgage Brokers. I want you to be able to sleep at night and not pay more than you should have!
The next Denver CO Mortgage Tip will address things you should ask Colorado Mortgage Brokers when you shop for your next mortgage Denver or Colorado home loan.
Denver CO Mortgage Tip: Dora vs BBB (continued)
Posted by: | CommentsIn yesterdays Denver CO Mortgage Tip, I shared why you should first check with DORA before applying for a Denver mortgage or a Colorado home loan.
Here are more reasons why you should first use DORA for selecting your Denver Colorado Mortgage Broker instead of the BBB:
- The BBB is a great resource for getting background information on general businesses. However, DORA is responsible for the licensing, the regulation and the enforcement for the real estate broker, appraiser and mortgage loan originator industries. You need this specialized information so you can make an informed decision on your Denver Colorado mortgage or Colorado home loan.
- The BBB only reports on a company’s performance. They do not report on employees or in this case, individual Denver CO mortgage brokers. However with DORA, you can easily see whether your Denver Colorado mortgage broker is licensed.
- A company can have the highest rating with the BBB, but it doesn’t protect you when you getting a Denver Colorado mortgage or a Colorado home loan. We all know that there are bad and less competent employees in every company. It is same with Denver mortgage companies. With DORA, they even post denied Denver Colorado mortgage brokers and those who have disciplinary action against them. You need this vital information. You should only work with a licensed Denver Colorado mortgage broker to get your Denver mortgage. This is the absolute minimum standard when selecting your Denver Colorado mortgage broker. If you don’t, you may regret it when you get your Denver Colorado home loan.
I hope that you can see the importance of using Colorado DORA’s website instead of the BBB’s before applying for your Denver mortgage or Colorado home loan. Bookmark their website for handy reference: http://www.dora.state.co.us/real-estate/index.htm.
My next Denver CO Mortgage financing tip will address whether you should get your Denver mortgage or your Colorado home loan from the local bank or from a licensed Denver Colorado Mortgage Broker. This is a frequently asked question and the answer may surprise you.
Denver CO Mortgage Tip: DORA or BBB?
Posted by: | CommentsToday’s Denver CO Mortgage Tip is very important for Denver mortgage seekers, but it also applies to anyone who is looking to get a Colorado home loan. Potential Denver homebuyers and homeowners who want to buy or to refinance to take advantage of these historically low interest rates should not rush to apply online. Unfortunately this is what happens. This can be a HUGE mistake when you consider that your Denver mortgage or Colorado home loan will probably be your largest debt. Due diligence should be performed first. Or more simply put, check out who you are going to do business with. When I say this, most people automatically think of the Better Business Bureau (BBB). In most consumer situations that would be fine. However when you are planning to get a Denver mortgage or a Colorado home loan, your first resource should be Colorado DORA.
DORA stands for the Department of Regulatory Agencies. It is located in Denver, Colorado. All professions requiring a license are governed by DORA such as real estate agents, mortgage brokers, insurance agents, and even your hair stylist. They establish and enforce licensing standards. The Division of Real Estate of DORA wants you, the general public, to be protected from greedy, dishonest, and unethical real estate agents and mortgage brokers.
For example on August 31, 2009, the Colorado DORA inactivated 4,560 Colorado Mortgage Broker licenses for failure to comply with education and testing requirements. That was about 52% of ALL Colorado Mortgage Brokers! I believe that the majority of the bad, fraudulent Denver Brokers have left the Colorado mortgage industry for easier prey. The State of Colorado now has one of the toughest licensing standards for mortgage brokers in the country. They are to be applauded because two years ago anyone could originate a Colorado home loan or mortgage. Imagine ANYONE could have been putting you in a Denver mortgage that primarily benefited them, not you. You wouldn’t have any idea that he/she was untrained, inexperienced, dishonest, unethical, greedy, or even a felon. Your Denver mortgage is usually the important and largest debt that you will ever have. Scary, isn’t it?
Here is your Denver CO Mortgage Financing Tip. Prior to applying online for your Colorado home loan or giving any Denver Broker any information, go to the Colorado DORA website. Check to see if the person has an active Colorado Mortgage Broker license. The link is http://www.dora.state.co.us/real-estate/index.htm. If you want to see how it works, type in my name, Randell Flood, or my Colorado Mortgage Broker License #MB100017910. If the person isn’t licensed, do not do business with him/her and report it immediately to DORA at 303-894-2166. We need your help to get rid of these con artists who are pretending to be Colorado Mortgage Brokers. They are illegally doing Colorado home loans and are causing defaults on Denver mortgages due to their fraudulent lending.
My next Denver CO Mortgage Tip will further explain why the local Colorado BBB should not be solely relied upon when getting advice for your Denver mortgage or Colorado home loan.