Archive for Denver Mortgage
Denver Colorado Mortgage Tip: HUD Wants to Protect You on Your Next Colorado Home Loan
Posted by: | CommentsOur Government has changed the way how you get your Denver Colorado Mortgage or Colorado Home loan effective January 1, 2010. Sweeping changes in the Real Estate Settlement Procedures Act (RESPA) were made for the first time in over 30 years.
The U.S. Department of Housing and Urban Development (HUD) republished their Settlement Cost Booklet: “Shopping for Your Home Loan”. You are to be given this 49 page booklet within 3 days of your Denver Home Loan application by your Colorado Mortgage Broker or the mortgage Denver lending company.
As in many cases when the Government tries to help and to protect you the consumer, they fall short in street smart common sense. In the below video, I recommend what I believe to be a much more practical and powerful way for you to purchase your next Denver Colorado home.
The next Denver Colorado Mortgage Tip will address why you need to have your own Colorado Home Loan Personal shopper for your next Denver Mortgage or Colorado home loan.
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.
For today’s Denver Colorado Mortgage Tip, here are the last three questions to ask your Denver Mortgage Broker. They will help you decide whether you should even consider getting your Denver Mortgage or Colorado home loan from him/her.
Three More Questions – For Your Next Denver CO Mortgage
Why Should I Get My Denver Mortgage or Colorado Home Loan From You? If you get an answer that he/she will provide great service and/or you will get you the lowest rate, I hope that you realize that is all fluff. Most Colorado Home Loan Originators will give you this “General” sales pitch. Don’t fall for it. Ask for specifics on how they are going to do that and then watch them tap dance. If the Denver Colorado Mortgage Broker is worth anything, you should hear things such as: structuring the loan to match your financial goals, setting the expectations for you and him/her such as commitments, availability, regular updates, client retention program, etc. You will be able to tell if they are winging it or not.
How Do You Determine When to Lock My Denver CO Mortgage or Colorado Home Loan? Unless they can immediately give you specific tools that they use, don’t trust or use them. You should hear names like Mortgage Coach RATEWatch, RateAlert, Mortgage Market Guide, or RateLink. These are the primary rate monitoring services. Rates are extremely volatile. They change throughout the day. You need to have what I call, a “Personal Rate Shopper” who monitors the rates for you. I now use three of these services instead of just one so I can properly advise my clients when to lock their Denver Colorado mortgage or Colorado home loan. I recommend you use a Personal Rate Shopper so you don’t get burned by being quoted one rate and then getting a higher one.
What Denver Mortgage or Colorado Home Loan Do You Recommend that I Get? Ask this and sit back for the answer. If you get only one recommendation, that Colorado Home Loan Originator is not really helping you. You should get several options to choose from even if it is an FHA loan. For example, you can save a lot of money when you compare options over time depending on the rate, the terms, the closing costs, and whether it fixed or adjustable. You should see these 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 so they can make an informed decision. Again, if the Denver Mortgage Originator you are talking to isn’t doing this, you are placing your financial security at risk. Protect your biggest investment by getting professional advice.
The next Denver CO Mortgage Tip will put all these questions together for easy reference when you are interviewing a Denver Mortgage Broker for your next Denver Colorado mortgage or Colorado home loan.
Denver CO Mortgage Tip: 2 More Questions – Selecting Your Denver Mortgage Broker
Posted by: | CommentsIn today’s Denver Colorado Mortgage Tip, I would like to recommend two more questions to ask Colorado Mortgage Brokers that will help you determine whether you should even consider getting your Denver CO Mortgage or Colorado home loan from him/her.
If you got satisfactory answers to the first two screening questions: “What is your interest rate and whether they own their home”, ask these questions.
More Questions – For Your Next Denver CO Mortgage
How Long Have You Been Doing Colorado Home Loans? You want someone who has at least five years of experience to do your Denver mortgage. Why five years? There are cycles where rates go up and down. When rates are low, it seems like everyone becomes a mortgage Denver Broker to try to make a quick buck. It is easy to give you a lower rate. It doesn’t take any skill – a Caveman could do it. However, are you really getting the “Right” loan? When rates are high, an inexperienced Colorado Home Loan Broker will not be able to properly advise you. You need to get your Denver Colorado mortgage or Colorado home loan from a broker who has gone through these financing cycles.
What 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. The first question is to put them at ease because they will be able to tell you them without thinking. However, if they answer that they can do ALL loans and don’t have a niche, this is a Red Flag. Think of the medical industry. Would you rather see a Generalist or a Specialist? It is very difficult to keep current on all the different loan programs. That is why some Colorado Home Loan Brokers will specialize in JUMBO loans while others will only do Conventional loans. Denver CO mortgage companies are starting to offer FHA loans because that is a hot trend. I’ve been doing them for over 11 years. How you get a borrower qualified and the paperwork is a lot more complicated than a conventional loan. With all of the constant changes in underwriting guidelines, it makes it difficult to stay proficient in all of the programs. Right now unless you have prefect credit and a lot of assets, you will probably need a FHA/VA loan so seek out a mortgage Denver Broker who specializes in Government loans.
The next Denver CO Mortgage Tip will address the next couple of questions you should ask Colorado Mortgage Brokers when you shop for your next Denver Colorado mortgage or Colorado home loan.
Denver CO Mortgage Tip: 2 Questions to Ask Your Colorado Mortgage Broker
Posted by: | CommentsIn today’s Denver Colorado Mortgage Tip, I would like to share two questions to ask your Mortgage Denver Broker. They will help you determine whether you should even consider getting your Denver Mortgage or Colorado home loan from him.
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. Have fun with it.
Questions to Ask - Next Denver CO Mortgage
What is your rate for a FHA 30 year fixed loan? You can change the question for any loan program, i.e. Conventional 30 Year or a 3 Year Adjustable Rate Mortgage, etc. It doesn’t matter what the loan program, but what the response is. If the Mortgage Broker gives you a rate without asking any questions, just thank him/her and hang up. You do not want to do business with this person. A true Denver mortgage professional will not quote a rate without first knowing more about you and the transaction i.e. W-2 employee or Self-Employed, Credit Worthiness, home value, loan amount, rate term or cash out loan, etc. This would be the same thing as going into the doctor’s office and the physician prescribing you medications without knowing anything about you and your medical history. That is “Malpractice!. This physician would be negligent and the results could be fatal or a have long-lasting affect on your life. In the mortgage industry, it is no different. You could become financially bankrupt on your next Denver mortgage or Colorado home loan if you don’t work with a mortgage professional.
Do You Own Your Home? This is next question if the Mortgage Broker asked you a lot of questions to properly determine what your situation is and what your mortgage Denver or Colorado home loan goals are. It’s a very revealing question. The reason to ask this question is two-fold. First, it will take the Mortgage Broker by surprise. No one asks this question. You want to see how he/she can handle surprises. Do they become defensive, do they ask why you want to know, do they give excuses for not being a homeowner, or do they simply answer with a Yes or No? You can 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 personally gone through the home buying process. For example, it is like knowing the difference between being a mother who has actually gone through child birth versus someone who just read about it. There’s a big difference! After all, most of your financial well-being is going to be based on whether you get the “Right” mortgage Denver or Colorado home loan advice.
The next Denver CO Mortgage Tip will address the next couple of questions you should ask Colorado Mortgage Brokers when you shop for your next Denver mortgage or Colorado home loan.
Denver CO Mortgage Tip: Confession from a Big Bank – Relies on Mortgage Brokers!
Posted by: | CommentsIn today’s Denver Colorado Mortgage Tip, I want to share what a Bank Representative confessed on about their business operations. This will reinforce why it better for you to get your next Denver mortgage or Colorado home loan from Colorado Mortgage Brokers.
On Friday, a Bank Representative from Wells Fargo told our company that they are committed to their “Wholesale” business. Wholesale means that the Bank does not bring in the business, but it comes from outside sources such as Colorado Mortgage Brokers. He went on to say that 60% of their business is from Wholesale. This Wells Fargo Representative confessed that their Wholesale business is More Profitable and there is Less Fraud than their Retail business! Since Banks do NOT pay for any of the costs associated with getting that mortgage Denver or that Colorado home loan, they make more money. To understand why this is the case, please go back to the previous posts about the differences between Banks and Colorado Mortgage Brokers such as compensation, loan programs, interest rates, and qualifications.
There is also Less Fraud! This confirms the fact that you should consider getting your next Denver mortgage or Colorado home loan from Colorado Mortgage Brokers instead from the Bank. Banks depend on mortgage brokers to make money! They will not tell you this but it is the truth. That is why Banks give Colorado Mortgage Brokers better rates and special pricing incentives to bring your mortgage Denver or Colorado home loan to them.
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: 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: Get Your Home Loan from Banker or Mortgage Broker? (cont)
Posted by: | CommentsIn today’s Denver CO Mortgage Tip, I want to further explain the difference between a Loan Officer from a Bank/Credit Union and Colorado Mortgage Brokers. Yesterday I addressed Compensation and Loan Programs and how they can impact your next Denver mortgage or Colorado home loan.
Before I get started, I want to restate the definitions for “Bank” and “Mortgage Broker”. When I say “Bank”; I’m referring to any lending institution where you can walk in to get your Denver Colorado mortgage. Examples would be Wells Fargo, Chase, etc. On the other hand, Colorado Mortgage Brokers are individuals/firms that act an individual agent for the borrower and the lender. I am a Denver Colorado Mortgage Broker.
Interest Rates:
Banks Usually Have Higher Rates: Banks have large overhead expenses. They have to build, maintain, and make loan payments on their own “Brick and Mortar” buildings. This is very expensive. Additionally, banks have to pay high utility bills, costly computer/information system, salaries for their employees, health care benefits and 401K plans, etc. You’re getting the idea. Banks have to pay this overhead every month so they start off in the “Red” each month. The way for them to stay afloat is to make money by charging higher interests on Denver mortgages and Colorado home loans. You already know how they nickel and dime you for their normal bank fees such as check return, ATM, insufficient funds charge, etc. What’s funny is that they do all the TV commercials exposing all the “Other” Banks little tricks, but they do them as well. They pay big bucks on advertising and marketing to get their customers. Unfortunately for you, when you get a higher interest rate on your Denver CO mortgage or Colorado home loan, you will pay tens of thousands of dollars more than you should over the life of your Denver home loan.
Colorado Mortgage Brokers Usually Have Lower Rates: Most of the Denver Colorado Mortgage Brokers I know work from home. I do. We have very little overhead so unlike the Big Banks, Denver CO Mortgage Brokers don’t start off each month in the hole. Now you can understand why we can provide lower interest rates on your Denver mortgage or Colorado home loan. The Banks also don’t want you to know is that they depend upon us to help them stay in business. Since Banks don’t pay us a salary or any of our costs that are associated with bringing them a Denver mortgage or Colorado home loan, they pay us a yield spread premium (YSP). I will talk about YSP in another post. The bottom line is as a Denver Colorado Mortgage Broker, I will usually beat a Bank home loan interest rate by .25%. Again over the life of the loan, that is lot money that you can save on your Denver home loan.
Qualifications:
Banks Have Their Own Standards. When you go into a bank or credit union, the facility looks great and their employees are dressed very nicely. Male employees are usually wearing a suit or the bare minimum a shirt and tie, right? It all looks very professional. The old saying that looks may be deceiving could be applicable here. Banks can hire anyone that they want to be a Loan Officer. They are responsible for training them. Let me ask you a simple question about your own employment experiences when you got a new job. How much training did you actually get? Were your employers more interested in you jumping into your duties so you could start contributing to the bottom line of the company? I believe that Banks are no different. Also 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 Denver mortgage and Colorado home loan industry, I was paid about $350 per loan. It wasn’t a Bank, but the practice/concept is the same. I soon realized that the lender was usually making $5,000+. As I did my own research, I discovered that the lender was significantly overcharging their customers for their Denver mortgage or Colorado home loan. I quickly resigned because I wouldn’t take advantage of people plus I wasn’t going to be used.
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/Credit Union Loan Officers don’t have to be licensed! As a Denver CO Mortgage Broker, I had to:
Be Fingerprinted
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:
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- A minimum of 19.5 hours in Federal and State Law
- A minimum of 16 hours in Mortgage 101
- A minimum of 4.5 hours in Business and Trade Practices
Pass a comprehensive two-part written Colorado Mortgage Licensing Exam
Adhere to Colorado Mortgage Broker current licensing requirements.
If you go back to one of my first posts that talks about DORA, you will see that it isn’t easy to join the elite status of Colorado Mortgage Brokers. That is why DORA inactivated 4,560 licenses in August. Most people can’t meet these high requirements. Again, Loan Officers haven’t had to go through this stringent licensing process. Unfortunately they will also be exempt from most of the requirements of the SAFE National Mortgage Licensing Requirements that are effective in 2010. I’ll address this in another post because you need to know these vital facts.
One of my best referral sources as a Denver CO Mortgage Broker is the Banks. When borrowers go to the Bank and they realize that the Loan Officer (a lot of times a young kid) didn’t have the foggiest idea of what he/she was doing or they didn’t have the loan program that they wanted, they called me.
I bet the next time when you go into a Bank; you will look at their Loan Officers in a different light. The reason for these posts is that I not only want you to get the “Right” Denver Mortgage or Colorado home loan but also a “Good” one.
The next Denver CO Mortgage Tip will be a brief summary of these four major differences because they are extremely important when you start selecting who will help you with your Denver mortgage or Colorado home loan.
Denver CO Mortgage Tip: Get Your Home Loan from Bank or Mortgage Broker?
Posted by: | CommentsIn today’s Denver CO Mortgage Tip, I want to explain the difference between a Loan Officer from a Bank and Colorado Mortgage Brokers. Not knowing the difference could cost you a bundle on your next Denver Mortgage or Colorado Home Loan!
When I say “Bank”, I’m referring to any lending institution where you can walk in to get your Denver Colorado mortgage. Examples would be Wells Fargo, Chase, Credit Union, etc. On the other hand, Colorado Mortgage Brokers are individuals/firms that act an individual agent for the borrower and the lender. I am a Denver Colorado Mortgage Broker.
There are Four Major Differences, but I’ll only discuss two today.
Compensation:
Banks pay their Loan Officers a Salary. Banks emphasize that their loan officers are salaried and infer that they aren’t motivated by commissions so you are getting a good Denver Mortgage. That is not necessary true. There are very well known banks who purposely directed their high quality clients to their Subprime mortgage department so they could make a lot more money.
Colorado Mortgage Brokers are usually Commission Only. Mortgage Brokers are not necessary dishonest or greedy because they are paid commissions. Most of the Denver Colorado Mortgage Brokers that I know are mortgage brokers because they prefer their “independent” work and life style. Let’s put in your terms. “Have you ever had a “Bad” boss”? If you are a manager or supervisor, “Have you gotten tired of having to deal with pity employee problems’? Colorado Mortgage Brokers are just like you, they enjoy their freedom. Their recommendation for your Denver Mortgage or Colorado home loan isn’t necessarily tainted because they are commissioned! I’m sure that you probably saw all the negative headlines the past 2 years about the greedy banks and their overpaid CEOs and management staff who took advantage of their borrowers. Need I say anymore?
Loan Programs:
Banks have Limited Mortgage Programs. A Bank or Credit Union can only recommend a Denver Mortgage or Colorado Home Loan that they have. If you don’t fit what they have, do you think that will tell you that and refer you elsewhere? Or do think that they offer another in-house loan that they not be suited for you because they don’t want to lose your business? I’ll let you be the judge of that.
Colorado Mortgage Brokers have Unlimited Mortgage Programs. Since we are “Independent”, Denver Colorado Mortgage Brokers can pick among the many lenders out there to get you the “Right” Denver Mortgage or Colorado Home Loan. Lenders have different programs. They will also many times have better interest rates than you would get from a bank. Don’t you want a Denver Mortgage or Colorado home loan that fits your needs versus what the Bank can only offer you?
Although these first two differences may not seem significant, they are. I’m sure that you probably 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 from the Government in “Bailout Funds” and still really haven’t changed their ways. Need I say anymore about compensation?
My next Denver CO Mortgage Tip will address the other 2 major differences. You will be able to see even more clearly how they can either save or cost you a lot of money on your Denver Mortgage or Colorado home loan. You should be informed when you get your Denver 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.