FHA Mortgage Expert - Tri-State Area - New Jersey/PA/Delaware

I know that we are in a society that has information buzzing around like bees around honey. But I would have thought that there would be less people in the mortgage business or in real estate giving out false information or misleading information. I thought because of the lack of business for so many, that these people would have left. Or are these same people hanging onto a thread, giving out misleading or wrong information, hoping to hang onto a client. Hoping that they can close this person under false pretenses, before they happen upon the truth.

Just the other day, I had a consumer contact me from my blogs. He was told that credit scores won't matter in 2 weeks because FHA will be buying mortgages. Huh?  Say what?  Maybe the government will step in sometime down the road. But this is not true. Now, this client might wait for the 2 weeks to find out. And with rates rising, this could hurt him in 2 weeks.

I had a client yesterday tell me that a lender that she was speaking to could help her buy a home. She has 505 credit scores and he said that he would do a rapid rescore which would take 3 to 5 days. But he didn't explain to her that this was for the rescore and not for her credit scores to be raised to 580 in 3 to 5 days. I asked her what kind of rate that he gave her. She said, "he said it would be a good rate."  Huh?   What might seem good from him, might not be good for you. She also had some 30 days on her credit report just in the last 2 months. This same lender didn't ask her about them, what the reasons were. People.....no wonder people don't go to closing on time or at all. These are some red flags that you might want to read about : Consumers need to be aware of these Red Flags !!!!!

I closed 3 loans in April that had gone to other lenders, who were promised mortgages. Not one of them closed with their original lenders. They were not only misled and lied to, but I was able to lower one of the clients rate from 7.5% to 6.5%.

Lastly, I am getting tired of lenders advertising 100% financing with FHA loans.  Yes, I can get you into a home with little or no money out of your pocket. But that is with the help of a seller assistance and with the help of a down payment assistance program. But FHA doesn't allow for 100% financing. This is extremely misleading.

Overall.....   I guess it's too easy to tell a client that they are qualified or approved. But without knowing what you, the loan officer is doing, is a huge problem.  I thought service in itself was bad enough, but now misleading and wrong information? It's always been out there, but it seems more now than ever before.

My question to everyone out there.....   Will it get worse before it gets better?  And I am not talking about the market. I am talking about these so-called professionals that basically lie to the consumer. As a consumer, what have you seen or heard?  As a realtor or loan officer, what have you seen or heard?

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For all of your mortgage needs and for more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

Copyright © 2008 by Jeff Belonger

How many of you at one time or another bought a house or refinanced your mortgage and ran into one problem or another. May it have been the realtor who was not able to give you the correct answer or the loan officer who strung you along and then changed things last minute. I have never said that I am perfect or that I know it all, but it does come down to honesty, integrity, knowledge, and very good service. 

What about you first time homebuyers that have never experienced buying a home or refinancing for the first time. I truly believe that there are some key phrases that can sometimes be cause for concern, known as Red Flags. And just because you have done this before, does not mean that it will not happen to you. If you hear some of what is mentioned below more than once, especially in a short time period, this could be your warning.

For a list of the those red flags, please click here :  Consumers need to be aware of these Red Flags !!!!!

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For all of your mortgage needs and for more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

Copyright © 2008 by Jeff Belonger

Earth shatering news here.....   when you are shopping for a mortgage, may it be a FHA loan, a conventional loan, or a VA loan...  please ask for a good faith estimate. Not every loan officer will volunteer one to you.

I can't tell you how many consumers that I have spoken to this year that didn't really know their mortgage rate, what their real payment was going to be, or what the total amount of money that they were going to need. They did know round-abouts. One thing that they told me was that they were either qualified or approved. But no good faith estimate.

It doesn't matter what kind of loan that you are applying for, if it's a fha loan or a conventional loan, you should get a good faith estimate. RESPA (Real Estate Settlement Procedures Act) says that you are suppose to receive a good faith estimate within 3 days after applying for a mortgage.... this doesn't mean if they talk to you over the phone and qualify you, that they have to. But they should.  Click here to find out why (opens in a new window).. A true understanding of Good Faith Estimates !!!!!

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For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

Copyright © 2008 by Jeff Belonger

Shop mortgage rates…  Shop APR (Annual Percentage Rate)…..  Shop mortgage fees….. So which is it?  Shopping for a mortgage can be very confusing to say the least. I hear so many called experts tell the average consumer to shop APR. This is not the wisest of decisions and can be argued by many mortgage professionals.

Let’s add some more confusion. Most of us know what the rate is in regards to mortgages. Let’s define rate and APR.  Rate :  A charge or payment calculated in relation to a particular sum or quantity: interest rates. (from answer.com)  APR (Annual Percentage Rate) :  Is the cost of your credit expressed as an annual rate. This is a federally required formula, designed to help the borrower compare the cost of credit. The APR rate is different from the note rate of your mortgage and is usually higher than the note rate. Why is this?

This confusion can be better explained if you follow this link : APR vs Mortgage Rate — A better understanding….

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For all of your mortgage needs and for more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

Copyright © 2008 by Jeff Belonger

Dear Consumer,

I applaud you for doing your homework when shopping for a mortgage. Sometimes the research that you do online, making sure that you are getting a good deal, is a good thing.

My question to you though, do you over do it?  Do you shop to many times, calling many lenders, looking for that best deal?  Do you know that the market can change daily? Do you realize that one deal that you thought was great, could be worse 3 days later?

Consumer.... what I respect is that you are patient at times and give loan officers a chance and sometimes the benefit of the doubt when shopping for a mortgage. You sometimes give them many days in getting back to you. But is this good? Are you just fixated on the best price? Don't you know that service comes with a price or in some cases, lack of price.

What do I mean by this? Let me give you an example of one of my most recent clients or in this case, a client that I actually fired. This consumer found me from a realtor that referred them to me, even though they were dealing with another realtor. I spoke to this person for about 20 minutes, gathering all the information that I need to properly qualify them for a mortgage. They had already spoken to someone from Wells Fargo and received a cost sheet from them. It wasn't a detailed good faith estimate. I was extremely busy that day with a few closings, 2 new clients, and some other people that I promised to get back to. This client asked for a good faith estimate, which wasn't necessary. Anytime I pre-qualify someone, I make sure I send out a good faith estimate to them within 6 hours, depending on my schedule. In this case, I sent one to her in 2 hours, fully detailed, with an explanation in an e-mail. Her reply back to me?

Jeff,

I received the good faith estimate, thank you.

The Wells Fargo good faith estimate is much less complete analysis and did not include escrows for taxes, hazard insurance and mortgage insurance.  It also doesn't look at a possible seller's credit. 

My husband and I want to show your estimate to our realtor and wll get back to you.  Thank you for taking the time to be so thorough in our conversation yesterday.

Best,

Consumer

Thank you Mrs. Consumer, for the kind words. So I follow up with her after the e-mail and she says that their realtor gave them 2 other loan officers to speak to. Me?  Okay, no problem, I'll check back with you in a few days. I called Mrs. Consumer back 2 full days later and she still hadn't received the good faith estimates from these loan officers. I told her that I would be concerned about this. Her answer was...."they must be busy".  To everyone reading this, busy is an overused and abused word, especially in the mortgage industry. To me, it's an excuse. I would bet that I am busier than 70% of the loan officers out there. If I can't get it done during normal business hours, then either that night or the next morning. She received both good faith estimates 4 days later. Me?  Unacceptable.

Consumer, 48 hours to recieve a good faith estimate is too lenient. I always say 24 hours or less is a good indicator. And this is coming from someone that has been in the mortgage industry for over 15 years. Are you going to want me to re-disclose when you finally get your other two estimates?   What happens if rates went down, but their service is not up to par?  You might be picking the wrong lender based on a better market and because the loan officers took their time.

In any case, just food for thought. I guess my 15 years of lending experience, professionalism, and just treating you as a person doesn't count for much. And by the way, in reality, these figures are not always worth the paper that it's written on. What am I saying?  I am not always going to be the cheapest, but you will get great follow up and no surprises at settlement. I am a gambler in life, but not with your money.

Sincerely,

Jeffrey J. Belonger

Mortgage Consultant since 1992

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For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

Copyright © 2008 by Jeff Belonger