Simply The Best Loans

In the course of qualifying for a loan, residential or commercial, you complete a 1003 (called a ten oh three) Uniform Residential Loan Application. On the application, you give employment history, income and assets, a schedule of real estate that you own and answer some basic disclosure questions.

For the average borrower, this is a straight forward process. For the self-employed, commissioned sales or 1099 consultant, this is a challenging prospect. These borrowers don’t receive a bi-weekly paycheck. Their income can come in bits and pieces, sometimes large lump sums. Underwriters have difficulty fitting these borrowers into their “box” of underwriting perimeters. This used to result in borrower’s being denied loans.

Now we have a variety of options, the most common being Stated Income and/or Stated Asset loans. The other description of these programs is No Income Verification and/or No Asset Verification. These terms mean that when filling out the application, with the help of your loan officer, you will state whatever income or assets you need to meet the debt-to-income ratios the underwriter requires. You don’t have to prove it with check stubs, tax returns or account statements.

When doing a stated loan, you and your loan officer must keep in mind that whatever you state must be realistic for the type employment shown. For instance, it is perfectly reasonable that a seasoned realtor would make $100,000 annually. It is not realistic for a cashier working at Wal-Mart.

Now you’re saying to yourself–what’s the catch? All lenders have different requirements a borrower must meet to qualify for one these programs. As a rule, the strictest criteria is for credit scores. Most lenders require scores of 720 or higher. However, if your scores are not that high, you may still qualify but at a slightly higher interest rate. Since there are hundreds of lenders, that results in even more underwriting options.

Suffice to say that if you are working with a knowledgeable broker and you need one of these type programs, the broker should be able to find a lender whose program fits your needs.

As a full-service mortgage broker, I deal with a broader range of consumers than other loan officers. It is because I am able to offer such a wide variety of programs from multiple lenders versus loan officers that work for just one lender and offer only that lender’s programs.

I also offer my clients as much information and/or assistance I can when helping them choose a specific type of mortgage since I believe this will significantly impact their overall financial picture. I do not attempt to act as a financial advisor. I do try to make sure that whatever type loan they are interested in will support whatever financial goals they tell me they have.

An informed, educated borrower is empowered to make better financial decisions for themselves and their family. Therefore, I work hard to make sure my clients are well-informed of the loan choices and/or options.

I’ve had two recent experiences that have led me to write this article. Both times my clients came to me with very specific ideas about what type of mortgage they wanted. After reviewing their credit and financial picture, I had to recommend against the loan programs they believed they wanted.

Why would I do this………………..especially since both times resulted in my losing the opportunity to make money on the loan?

The answer is simple. It was a bad financial decision for my client. In each case the loan was obtainable for them, the downside in both instances would have resulted in such a financial strain that my clients would have been risking their overall fiscal health.

While it’s not my job to manage my client’s finances, I do believe that I have a responsibility to point out potential pitfalls. If they are considering mortgage options that would leave them extremely vulnerable financially should they have an unexpected loss of income or health, I feel honor-bound to tell them the risks and recommend another course of action.

There are also a lot a loan programs that look good from some particular aspect but overall, if you read the fine print, are very risky to the borrower. I don’t recommend these products to my clients. When they come in to meet with me and ask for them, I recommend against them.

I base my recommendations to my clients on my heartfelt belief that if I wouldn’t buy it, I shouldn’t sell it to you.

Remember, when shopping for anything, the person representing the product is usually very knowledgeable, not only of their product, but of the competition’s products as well. If you’re dealing with an honest professional and you ask the question “would you do this” and their answer is “no”, you probably don’t want to do it either.

Asked recently by my 14 yr old son why I became a mortgage broker, caused me to reflect on the answer. I thought you might appreciate the short version of the story.

We’re riding home from his track meet and he says something like “why do you do the mortgage business, Mom, I mean it’s not like it takes any special skills or education……except for like, people skills, of course.” I figure if my own son, who has lived with me through all the trials and tribulations of creating a business and making it successful doesn’t get it, then most other people might not either.

How I became a mortgage broker may in some ways seem accidental, however, I always intended to be in business for myself even in my youth. No, I don’t think that there are people out there planning to become mortgage brokers because it’s a “glamorous” career choice.

Most people are probably like me. I knew I wanted the independence that comes with owning your own business and the means to do that, by chance, just happened to be the mortgage business. That being said, do not doubt for a minute that I love my job. I do!

It is a very gratifying thing to help someone buy a new home. Your home is your sanctuary even if everyone’s idea of sanctuary is different. Nonetheless, we all want the place we can go and know that we belong there and are safe. That’s a pretty good feeling…………….helping people find their sanctuary!

On the commercial side, I’m able to help business owners achieve their goals. Whether it’s a new property for expansion or financing for new equipment, inventory, etc., commercial loans allow me to play a part in their success. Seeing a business grow and succeed is like watching your child grow, every new accomplishment is exciting.

So far as skills, well, the mortgage business has it’s challenges like any other. Although it’s not like engineering or nursing, no one goes to college and majors in mortgages, it does require certain educational background and some very specific skill sets.

I believe the opportunities and experiences I’ve had in other jobs and industries has given me a stronger focus, as a business owner, on meeting the needs of my clients and the community at-large. I take the skills and knowledge I’ve gleened over the years and apply the best of what I’ve learned to what I do today.