The mortgage process, whether you are applying for a FHA mortgage or a convnetional mortgage, the process should not be as difficult as it appears more times than none. After over 15 1/2 years in the mortgage industry, I just don't understand why some loan officers just don't learn the basics, instead of trying to sell rate and fees. They get so caught up in this, oversell the rate and undercut fees, that they lose sight of the service part of the mortgage process. And the basics of knowing what questions to ask.
As I mentioned in Part 1, the Purchase CHECKLIST is so critical. This is why it's so important to talk to a loan officer before you even set out to purchase a home. I can't tell you how many consumers that I have talked to in the last 6 months that started to look, fell in love with a home, and then seeked a lender. The problem with this is that some of these loan officers that you speak to are so inexperienced, and when they hear that you have already found your dream home, they are more worried about getting you into their door than asking the basic questions.
What should be one important question that every loan officer should ask you in the first several minutes? What kind of mortgage payment can you afford and not what you can qualify for. The second most important question should be asking what your short term and long term goals are. Do you have kids? Want kids? Kids going to college? And so much more. Then they should get into your credit and assets. The problem here is that the first question that so many ask is, "how's your credit". As I mentioned, this should not be the first question. Now, this is just my opinion, but this is based on over 15 years of experience and knowledge in the mortgage industry.
Overall, if your loan officer tries to take you from point A to point C without truly covering what I mentioned above, then you will either be placed into a mortgage that is not right for you and/or that your settlement/closing on your new home or that refinance will be a very bad experience. That's if you are even lucky to have a closing. I have seen many mortgages that were killed or denied the day of, because the loan officer didn't do their job. And in regards to this statement, don't let anyone fool you. Deals aren't killed or denied the day of settlement. This is usually known a few weeks into the process, that's if they got the required documentation upfront and that their processor is on top of their game. Yes, the mortgage process is based on a team concept, starting with your loan officer as the General. The one that if they know what they are doing, can decide at that time if you could even get a mortgage. And if they are unsure, they can go right to their underwriter to go over your scenario with that person. Communication is so critical.
For more information to know about as you shop for a lender or a real estate agent, please read this post, What kind of red flags should your be aware of ???? And the chart above just gives you a basic idea of how your process should start and end.
The Mortgage Process Series :
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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
Jeff,
I'd like a seprate printable file of your chart.
Keep up the good work.
Bill
Great post and information. If Buyers would take your advice and talk to a lender FIRST, everybody's job would be easier and the process smoother.
Jeff, I really enjoyed the chart and putting it all together like that makes it easier to understand a complicated subject. And I love the ending: "And refer us to your family and friends" It's very true, knowledable and honest people are hard to come by.
ALAN.... my pleasure... thanks for the compliments and for stopping by.
BILL.... thanks and already e-mailed it to you last night, after I read your comment.
THESA..... thanks... just hoping that people get the basics. Things should start from the beginning in this business and not the end.
MATT..... thanks for the kind words and for the compliment. If anything, a localism feature>>???? The public needs to see this.
CYNTHIA.... you thunk.... lol So many want to get a realtor and look for homes. I am seeing more and more talking to a lender first, but those are still low figures. 10 years ago, it was common practice to always go to a realtor first, hence why us loan officers were then called up by a realtor that we would work with and be told that they had a client for us.
DAN...... thank you and thanks for stopping by.
MISSY.... as I tell everyone, they don't have to ask me for permission. But I do appreciate it. I e-mailed it to you.
CAROLE.... thanks. On another note though, you said that you loved my ending. Did you possibly get this from one of my other blogs? ;o) I know I have said that before. In any case, thanks for the comment.
I love your flow chart! You did a great job with series!
D. Bass
Mortgage Underwriter & Trainer