Mortgage Magic

MORTGAGE MAGIC

The Mortgage Marketing Newsletter for Loan Officers that are Serious About Their Business

From: Ameen Kamadia, President of Kamrock Publishing

Dear Friend,

The following article was taken from my friend, Rob Lawrence's Sink Or Swim Mortgage Newsletter. You can learn more about Rob and sign up for his newsletter by clicking on the link below.

EXPECT HICCUPS ON EVERY LOAN

"No matter how successful you are, or how many loans you have closed, you should expect hiccups. No loan every goes as smoothly as you think it will.

And with all the third parties involved on any one transaction, you can and WILL have problems.

Here are some of the most common "hiccups". I thought of about the top 30 I have been hit with.

Hiccups which you may encounter include:

1. The borrower not being clear on what exactly he is "buying". Or not fully committed.

2. The borrower not being clear on what the loan process entails.

3. Not getting all the proper documentation from the borrower upfront.

4. The borrower's spouse isn't fully "sold" on the benefits of the transaction and doesn't want to go through with it.

5. The borrower is still shopping your "rate", even though you are well into the process (this is a BIG one!!!!!!).

6. Not getting returned phone calls from the borrower, or even from third parties involved in the transaction (such as appraisers, underwriters, lawyers, etc.)

7. Real estate agents and others who foul-up the process by playing sides, sometimes even making you look like the "bad guy" just to win points!!!!

8. Not being clear about whether or not the customer is escrowing just the taxes, insurance, or both!

9. Not being clear about the amount of money which will be needed to be escrowed per order of the bank.

10. If refinancing, not being clear that the payoff amount will be slightly different than what the borrower's balance says, (having to deal with pre-paid interest and mortgage payments done in arrears).

11. Finding out about secondary liens on the property or open HELOCS, too late in the process.

12. Borrowers continue to spend, open accounts, and move finances around.

13. Property does not come in appraised high enough.

14. Appraisal comparable properties are too old for the underwriter.

15. Not watching your rate-lock expiration date.

16. Not properly pricing the loan-out in the beginning, and ending-up "eating" most of your profits by trying to "save-face" with the borrower.

17. Repairs or remodeling that are currently being done on the property (underwriters will slam you for this!!!).

18. Finding out about financial skeletons in the borrowers past which weren't disclosed upfront, such as child support payments, wage garnishments, liens, other open debt (not showing on credit report), etc.

19. Borrower forgets to make mortgage payments or other loan payments during your loan transaction.

20. On purchase transactions, when selling one property and buying another one, first original property is having problems with the sale, thus holding your transaction hostage.

21. Borrowers go on vacation or are not available to sign within the 30-45 day window of the transaction.

22. Not being able to get a booking date with the lender.

23. Underwriter keeps conditioning you for the same things or variations of the same things over and over again.

24. Mortgage payments have accidentally been "double-debted" on the 1003 application, throwing their ratios out of whack.

25. HELOC subordination letter is holding-up the process, secondary lien holder refusing to cooperate.

26. Not submitting proper paperwork to the borrower, bank, or other third party. Not taking a full and complete application at the beginning. Numbers are off, etc. (Small mistakes can have a HUGE impact at the closing table). Always double-check your work before sending it out.

27. Lawyer adds-in extra fees to the HUD at the last minute which the borrower isn't aware of.

28. Your YSP/commission on the loan is incorrect on the HUD statement. (Once the loan closes you can't change this!!!! So be very careful!).

29. Final pay-off numbers come in incorrect. Borrower has direct-debiting on his account and a mortgage payment or other loan payment has been made during the loan process. (You need to be aware of this and keep it in mind).

30. Borrowers get lost, change their mind, pull-out, or just simply fail to show-up at the closing. (Just think of all the hard work you put in to get them there. Believe me, it happens!!!!!)

Any one of the above, can make your loan a living nightmare.

These are just a few that I have encountered over the years. I'm sure you no doubt will encounter the same. Experience is the best teacher of all. Learning from my experience will save you time, headaches and make you more money.

If you would like more information about Rob's system please click here: Sink Or Swim

Happy Originating!

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