Archive for Mortgage Denver
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.
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.