Archive for Colorado Springs Mortgage
Mortgage Colorado Springs: New HUD Rules – Shopping for Your Colorado Springs Home Loan
Posted by: | CommentsThe Government has changed the way how you get your Colorado Springs Mortgage or Colorado Home loan. On January 1, 2010, sweeping changes to 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) revised their Settlement Cost Booklet: Shopping for Your Home Loan. Your Mortgage Colorado Springs Broker or Colorado Home Loan Lender is to give you this 49 page booklet within 3 days of your application.
Sometimes when the Government tries to help, they fall short. Their well-meaning intentions often lack practical common sense due to not being in the real estate/mortgage industry. In the below video, I recommend what I believe to be a much better way for you to purchase your next Colorado Springs home.
The next Mortgage Colorado Springs Tip will address why you need to have your own Colorado Home Loan Personal shopper for your next Colorado Springs home loan or Colorado home loan.
Today’s Colorado Mortgage Springs Tip is a summary of what you should ask when selecting your Colorado Home Loan Broker. Start by checking the Colorado DORA site to make sure that he/she is licensed. These questions will help ensure that your next Colorado Springs home loan is a “Good” one.
Seven Must Ask Questions - Mortgage Colorado Springs Broker
What is your rate? It doesn’t matter what the loan program you ask about, but what the response is. If the Mortgage Colorado Springs Broker gives you a rate without asking any questions, just thank him 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 Colorado Springs Broker asked you a lot of questions to properly determine what your situation is and what your Colorado Springs home loan goals are. You want someone who has been through and understands the process.
How Long Have You Been Doing Colorado Springs Mortgages? You want someone who has at least five years of experience to do your Colorado home loan.
What Colorado Springs 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 Colorado Springs 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 Colorado Springs 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 Colorado Springs Mortgage or Colorado Home Loan? Unless he gives you specific names of services that he uses, don’t trust or use him. You should hear names like Mortgage Coach RATEWatch, Rate Alert, Mortgage Market Guide, or RateLink. It’s doesn’t matter 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 Colorado Springs 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” Colorado Springs Mortgage or Colorado Home Loan.
The next Colorado Springs Mortgage Tip will address the new HUD “Shopping for Your Home Loan” booklet that is required to be given to you by your Mortgage Colorado Springs Broker prior to getting your Colorado Springs mortgage or Colorado home loan.
For today’s Colorado Springs Home Tip, here are the last couple of questions to ask your Colorado Home Loan Originator. These questions will help you determine whether you should get your Colorado Springs Mortgage or Colorado home loan from him/her.
Three More Questions – For Your Colorado Springs Mortgage Broker
Why Should I Get My Colorado Springs Home Loan From You? Should you get an answer that he will provide great service and/or he will get you the lowest rate, don’t accept it. It’s all fluff! Most Colorado Springs Home Loan Originators will give you this sales pitch. Do not fall for it. Ask exactly how they are going to do that and then watch them squirm. If the Mortgage Colorado Springs Broker is worth anything, you should hear things such as: he is structuring the loan to match your financial goals, or he is setting expectations for you and him such as availability, when he will update you, his post closing retention program, etc. You can tell if it is “BS”.
How Do You Determine When to Lock My Colorado Springs Mortgage or Colorado Home Loan? He should give you specific tools that he uses. If not, don’t use him. You should hear names like Mortgage Market Guide, Mortgage Coach RATEWatch, RateAlert, or RateLink. These are the main rate monitoring services. With rates being so volatile, you need to have what I call, a “Personal Rate Shopper” who monitors the rates for you. I use three of these services so I can properly advise my clients when to lock their Colorado Springs Home Loan or Colorado home loan. I recommend that you use a Personal Rate Shopper. You do not want to get burned by being quoted one rate and then getting a higher one at closing.
What Colorado Springs Mortgage or Colorado Home Loan Do You Recommend that I Get? If you get only one recommendation, that Colorado Springs Home Loan Originator isn’t doing his job. You should get several options. For instance, you can save a lot of money when you compare options over time depending on the rate, the terms, the closing costs, etc. You should see the various options so you can make an informed decision. I’ve used special software for over 6 years that allows my clients to easily compare and understand what loan program will be best for them. I guide them through the process. Unlike most Colorado Springs Home Loan Brokers, I do not churn my clients. I get them the right Colorado home loan the first time. Again, if the Colorado Springs Mortgage Originator you are talking to isn’t doing this, you are placing yourself at financial risk. Please protect your biggest investment by getting professional advice.
The next Colorado Springs Mortgage Tip will put all these questions together for easy reference. They will be handy when you are interviewing a Colorado Mortgage Broker for your next Colorado Springs mortgage or Colorado home loan.
Mortgage Colorado Springs CO: Selecting Your Colorado Springs Mortgage Broker (cont)
Posted by: | CommentsIn today’s Colorado Springs Mortgage Tip, I will discuss two more questions to ask your potential Broker that will help you determine whether you should even consider getting your Mortgage Colorado Springs CO or Colorado home loan from him/her.
Assuming you got satisfactory answers to the first two screening questions, ask these next two questions.
Two More Questions – For Your Next Mortgage Colorado Springs CO
How Long Have You Been Doing Colorado Springs Home Loans? Idealistically you want a Broker who has at least five years of experience to do your Colorado Springs mortgage. Why 5 years? Rates go up and down in cycles. I’m sure you have heard of Refinance Booms where rates are extremely low. When this cycle occurs, it seems like everyone becomes a Colorado Springs Home Loan Broker. They want to make a fast buck. A Caveman can give you a lower rate because it doesn’t take any skill. However, are you really getting the “Right” loan? When rates are high, an inexperienced Colorado Home Loan Broker may not be able to properly advise you. You need to get your Colorado Springs CO mortgage or Colorado home loan from a broker who has gone through these financing cycles. Experience is vital!
What Loans Do You Offer and What Is Your Niche? Colorado Springs Mortgage Companies normally have the same programs with the exception of Government loans i.e. FHA/VA. The reason for that is you have to get approved to offer these programs. Some Colorado Springs Home Loan companies won’t spend the time and money to get approved. The first question is to put them at ease. If they answer that they can do ALL loans and don’t have a niche or specialty, this is a Red Flag. Look at 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 Brokers specialize in Conventional loans while others will only do large JUMBO loans. Colorado Springs mortgage companies are beginning to offer FHA loans because that is a hot trend. I’ve been doing FHA Colorado home loans for over 11 years. The way you get a borrower qualified is different and the paperwork is a lot more complicated than a conventional loan. With all of the constant changes in underwriting guidelines, it is a challenge to stay proficient in all of the programs. Unless you have prefect credit and a lot of assets, you will probably need a FHA/VA loan so you should seek out a mortgage Colorado Springs CO Broker who specializes in Government loans.
The next Colorado Springs Mortgage Tip will address the next couple of questions you should ask Colorado Mortgage Brokers when you shop for your next mortgage Colorado Springs CO or Colorado home loan.
Colorado Springs Mortgage: Two Questions to Ask Your Broker
Posted by: | CommentsIn today’s Colorado Springs Mortgage Tip, I would like to suggest that you ask the below questions of your Colorado Mortgage Broker. They will help you determine whether you should even consider getting your mortgage Colorado Springs or Colorado home loan from him/her.
In this post, I’m only going to address the first two questions that you should ask. They will help you quickly eliminate the non-professional loan originator.
Questions to Ask for Your Next Colorado Springs Mortgage
What is your rate for a 30 year fixed conventional loan? You can change the question for any loan program, i.e. FHA 30 Year fixed, or a 3 Year ARM, etc. The loan program doesn’t matter, but what the response does. If the Broker quotes you a rate without asking any questions, you do not want to do business with this person. A real mortgage professional will not give a rate without first knowing more about you/the transaction such as whether you are a W-2 employee or Self-Employed, your estimated credit score, approximate home value, loan amount, 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. The results could be fatal or a have long-lasting affect on your life and in the mortgage industry, it is no different. You could become financially bankrupt on your next Colorado Springs mortgage or Colorado home loan if you don’t work with a true mortgage professional.
If the Mortgage Broker asked you a lot of questions and properly determined what your situation is and what your mortgage Colorado Springs or Colorado home loan goals are, ask this next question.
Do You Own Your Home? Although this is a simple question, it can be very revealing. You will find out two things. First, no one asks this question so it will take the Mortgage Broker by surprise. You want to see how the broker handles surprises. Are they defensive, do they ask you why you’re asking, do get excuses for not being a homeowner, or do they just answer with a Yes or No? You will learn how they handle surprises and stress. The second reason is you want to work with someone who has actually gone through the home-buying process. Look at it this way. It is like knowing the difference between being a mother who has gone through the pain of child birth versus someone who just read about it. There’s a big difference! Don’t you want to protect your financial well-being by getting the “Right” mortgage Colorado Springs or Colorado home loan advice.
The next Colorado Springs Mortgage Tip will address the next questions you should ask Colorado Mortgage Brokers when you shop for your next mortgage Colorado Springs or Colorado home loan.
Colorado Springs Mortgage Tip: Big Bank Relies on Mortgage Brokers!
Posted by: | CommentsIn today’s Colorado Springs Mortgage Tip, I will share what a Wells Fargo Bank Representative confessed on Friday about their business operations. This will validate why it better for you to get your next mortgage Colorado Springs or Colorado home loan from Colorado Mortgage Brokers.
This Wells Fargo Bank Representative informed 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. This representative went on to say that 60% of Wells Fargo business is from Wholesale. This Bank Representative also confessed that their Wholesale business is More Profitable and there is Less Fraud. This is because they do NOT pay our salaries for any of the costs associated with getting that mortgage Colorado Springs CO or that Colorado home loan. Wells Fargo makes more money from Mortgage Brokers than doing the loan internally. Remember all the differences between Banks and Colorado Mortgage Brokers? If not, please go back to the earlier posts and you will clearly understand why.
There is also Less Fraud! This again validates the fact that you should consider getting your next Colorado Springs mortgage or Colorado home loan from Colorado Mortgage Brokers instead directly from the Bank. Banks rely on Colorado Mortgage Brokers to make money! This is the truth although they will not tell you this. They have to present that professional image. Banks give Colorado Mortgage Brokers special pricing incentives to bring your mortgage Colorado Springs Colorado or Colorado home loan to them.
The next Colorado Springs Mortgage Tip will address things you should ask Colorado Mortgage Brokers when you shop for your next mortgage Colorado Springs CO or Colorado home loan.
In today’s Colorado Springs Mortgage Tip, I would like to sum up the differences between a Loan Officer from a Bank and Colorado Mortgage Brokers. Please pay close attention because if you don’t know them for your next mortgage Colorado Springs CO or Colorado home loan, it may cost you tens of thousands of dollars. Don’t you want to be an informed consumer?
The Four Major Differences are:
- Compensation: Bank and Credit Union Loan Officers are paid a salary and Colorado Mortgage Brokers are normally “Commissioned”. Neither one by itself is bad. However Banks/Credit Unions would like for you to think that you can get a more unbiased Colorado Springs mortgage or Colorado home loan from them. It is not necessarily true.
- Loan Programs: Banks have limited mortgage programs and Colorado Mortgage Brokers have numerous home loan programs since they are not limited to one lender. Don’t you want the ability to get the “Right” mortgage Colorado Springs or Colorado home loan when you don’t fit the typical Bank mortgage?
- Interest Rates: Like I said above, “Compensation” by itself is neither bad nor good. However when you put together all the money that Banks have to pay their staff and all of the other overhead costs, they have to make it up with bank fees, higher interest rates, etc. Don’t become a victim by paying their overhead costs with higher interest rates on your Colorado Springs mortgage or Colorado home loan. This is why Colorado Mortgage Brokers can usually give you a much better rate on your mortgage Colorado Springs. We can pass the savings to you since have very little overhead.
- Qualifications: Banks and Credit Unions have their own standards. They can hire “Anyone” that they want. However with Colorado Mortgage Brokers, we have met all the Colorado DORA’s Division of Real Estate licensing requirements. I believe that we are much better qualified to advise you on your Colorado Springs mortgage or Colorado home loan. We’re licensed and they aren’t!
How does all this save you from needlessly spending tens of thousands of dollars on a mortgage Colorado Springs? If you get the wrong loan program because it wasn’t available at the Bank/Credit Union and/or the Loan Officer wasn’t trained or qualified to correctly advise you and/or you get a higher interest rate due to their large overhead costs, you may pay for it for many years. Just ask the hundreds of thousands of home owners who got a “Bad” loan and who are now in foreclosure.
So the next time when you need to get a mortgage Colorado Springs or a Colorado home loan please ask yourself, “Do you want to get it from a unlicensed, minimum waged Bank Loan Officer who can only offer you a their few loan programs which may or may not be “Right” for you and at a Higher interest rate?” I have never gotten any of my Colorado home loans from a Bank. It didn’t make financial sense back before I became a Colorado Mortgage Broker and it still doesn’t.
I hope you now appreciate why I have spent so much time on addressing these differences. I want you to get the “Right” Colorado Springs mortgage or Colorado home loan from Colorado Mortgage Brokers.
The next Colorado Springs Mortgage Tip will address things you should ask Colorado Mortgage Brokers when you shop for your next mortgage Colorado Springs or Colorado home loan.
For today’s Colorado Springs Mortgage Tip, I want to continue to explain the difference between a Loan Officer from a Bank and Colorado Mortgage Brokers. In my last post, I explained how Compensation and Loan Programs could impact your next mortgage Colorado Springs CO or Colorado home loan.
To recap the definitions, when I’m referring to a Bank it is any lending institution where you can get your Colorado home loan. Some examples would be Chase, Wells Fargo, your local Credit Union, etc. Colorado Mortgage Brokers are individuals/firms who act as an individual agent for the borrower and the lender. I’m a Colorado Mortgage Broker.
Interest Rates:
Banks Usually Have Higher Rates: As you would expect, banks have large overhead expenses. They not only have to build, maintain, and make loan payments on their own “Brick and Mortar” buildings, but there a lot of other overhead expenses. This includes but is not limited to high utility bills, expensive computer/information system, salaries for their employees, health care benefits and 401K plans, etc. You know that health care benefits and retirement plans are very costly for employers. Banks have to pay this overhead every month so they start off in the “Red” each month. One of the ways for them to stay in business is to make money by charging higher interests on Colorado Springs mortgages and Colorado home loans. You’re already very familiar with all the nickel and dime fees they charge such for ATM, insufficient funds charge, etc. Banks also spend a lot of money advertising and marketing to get and retain their customers. The banking industry is very competitive for your mortgage Colorado Springs CO. Whenever a bank charges you a higher interest rate on your Colorado Springs mortgage or Colorado home loan, you will end up paying tens of thousands of dollars more than you should over the life of your Colorado Springs home loan.
Colorado Mortgage Brokers Usually Have Lower Rates: Most of the Colorado Springs Mortgage Brokers I know work from home. I do as well not only for keeping overhead low, but because of the life style that I mentioned yesterday. Unlike Banks, Colorado Mortgage Brokers don’t start off each month in the red. You should be able to see why we can provide lower interest rates on your mortgage Colorado Springs CO or Colorado home loan. Banks also don’t want you to know that they rely upon us to keep them in business. Banks don’t pay Colorado Mortgage Brokers a salary so there is no cost to them when we bring them a Colorado Springs mortgage or a Colorado home loan. They do pay us a yield spread premium (YSP). I will talk about YSP in another post because it is important for you to understand. The bottom line is as a Colorado Mortgage Broker, I can usually give my clients an interest rate that is at least .125% to .25% lower than a Bank. This is a lot money that you can save on your Colorado Springs mortgage over the life of the loan.
Qualifications:
Banks Set Their Own Standards. Whenever you go into a bank, the facility looks great. All their employees are all dressed up. They all look very professional, right? Looks can be deceiving. Banks can hire anyone to become a Loan Officer. They are also responsible for training them. Let me ask you a question. When you got a new job, how much training did you actually get? Was the training minimal and were you left primarily on your own to learn your new job? Why would think that Banks are any different? Banks, like other businesses, will usually pay the least amount that they get away to get the job done. My first job in the mortgage Colorado Springs CO area and in the Colorado home loan business, I was paid about $350 per loan. Although it wasn’t a Bank, the concept is the same. I quickly realized that the lender was significantly overcharging their customers for their Colorado Springs mortgage or Colorado home loan. That lender probably was making about $5,000 per mortgage Colorado Springs CO. I promptly resigned because I wouldn’t take advantage of people. I found out that there was a lot of Colorado Springs mortgage fraud out there in the Colorado home loan market.
Colorado Mortgage Brokers Have to Adhere to Higher Standards: Colorado Mortgage Brokers had to become licensed two years ago in order to originate a Colorado home loan. Bank or Credit Union Loan Officers don’t have to be licensed! As with all the other Colorado Mortgage Brokers, I had to:
- Be Finger printed and have a background check by the Colorado Bureau Investigation
- Have a Surety Bond for Mortgage Broker for $25,000 and Carry errors and omissions insurance for $300,000
- Participate in 40 hours of education which included Federal and State Law, Mortgage 101, and Business and Trade Practices
- Pass a very comprehensive written Colorado Mortgage Licensing Exam
- Practice and adhere to the Colorado Mortgage Broker current licensing requirements.
Go back to one of my first posts about DORA and you will see that it isn’t easy to achieve the elite status of Colorado Mortgage Brokers. Remember that DORA inactivated 4,560 licenses in August. It isn’t easy to meet their strict licensing requirements. Banks or Credit Unions can hire ANYONE off the street without any credentials or qualifications to work for them. Why do you think so many of their Loan Officers look young enough to be your kid? Cheap labor maybe?
One of my best referral sources as a Colorado Springs Mortgage Broker is the Banks. When people go to a Bank or Credit Union and they realize that the Loan Officer doesn’t have the foggiest idea of what he/she was doing, I get a call for help.
The reason for these posts is that I not only want you to get the “Right” Colorado Springs mortgage or Colorado home loan but also a “Good” one. You need and deserve professional advice.
The next Colorado Springs Mortgage Tip will be a brief summary of these four major differences because they are extremely important when you start selecting who will help you with your mortgage Colorado Springs CO or Colorado home loan.
This Colorado Springs Mortgage Tip will address the difference between a Loan Officer from a Bank or Credit Union and Colorado Mortgage Brokers. Not knowing the difference could cost you tens of thousands of dollars on your next Colorado Springs Mortgage!
Whenever I use the term “Bank”, I’m referring to any lending institution where you can get your Colorado home loan by walking into their building. Some examples would be Chase, Wells Fargo, Key Bank, your local Credit Union, etc. Colorado Mortgage Brokers are individuals/firms who act as an individual agent for the borrower and the lender. I want to be upfront with you, I’m a Colorado Mortgage Broker.
Although there are Four Major Differences, I will only address two of them today.
Compensation:
Banks usually pay their Loan Officers a Salary. Banks try to give the appearance that they are the “Good Guys” that you can trust. One bank that I use for my checking account has a large banner that boldly states that their Loan Officers are Salaried. The message that they want to send is that a “Salaried” Loan Officer will give you the better Colorado Springs home loan than Colorado Mortgage Brokers. They want you to believe that they are not making their Colorado Springs mortgage recommendation based on their bottom line. This isn’t necessary true. As the media has widely publicized for the past two years, some very “Big” banks gave bad loans to people and/or directed them to a higher cost Colorado home loan than the people deserved. You’ve seen all the outrageous greedy behavior from the Big Banks without any apparent regard for their customers/borrowers. Can you afford to trust them for your Colorado Springs home loan?
Colorado Mortgage Brokers are usually Commission Only. Colorado Mortgage Brokers are not necessary motivated based on their commission compensation. Most of the Colorado Mortgage Brokers that I know like the “independent” work and life style. Let’s relate to your employment situation. “Do you like being told what to do and when to do it”? “Have you ever had a “Bad” boss”? As a manager or supervisor, “Have you gotten fed up with dealing with any of your employees’? Colorado Mortgage Brokers are no different than you. They enjoy their freedom. You are probably not aware of this, but Colorado Mortgage Brokers have the flexibility and the ability to give you a better Colorado Springs Mortgage or Colorado home loan. We can do that because Colorado Mortgage Brokers are not constrained by a lending institution profit requirement. Of course, there are some Colorado Mortgage Brokers who may not act in your best interest, but the same goes for the banks. Again, that is why you should check DORA.
Loan Programs:
Banks have Limited Mortgage Programs. Banks and Credit Unions can only give a Colorado Springs Mortgage that they have in their portfolio. It’s like when the Model T first came out, you had your choice of color, “Black”. The same goes with banks. If they don’t have the loan program that you really should have, do you believe that they tell you that? Will they refer you elsewhere? Or do think that they will give you another loan that they do have? I think you know the answer.
Colorado Mortgage Brokers have Unlimited Mortgage Programs. Since we are “Independent”, Colorado Mortgage Brokers can choose among the numerous lenders to get you the “Right” Colorado Springs Mortgage or Colorado Home Loan. All lenders have different programs and loan niches. We can structure your loan based on your personal situation. Wouldn’t you rather have a Colorado Springs Mortgage or Colorado home loan that fits your needs instead of what the Bank can only offer you? Sure you would!
My next Colorado Springs Mortgage Tip will explain the other two major differences. You will really be able to see even more clearly how Colorado Mortgage Brokers can save you a lot more money on your next Colorado Springs Mortgage or Colorado home loan. I want you to be able to make an informed decision on your next Colorado Springs Home Loan!
Which is Better: DORA or BBB?
Posted by: | CommentsHere is today’s Colorado Springs Mortgage Tip. I said yesterday it is better to first check with DORA before applying for a Colorado Springs mortgage or a Colorado home loan. I’ve listed some more reasons why you should first use DORA for selecting your Colorado Springs Mortgage Broker instead of the local BBB:
- Your local BBB is a great resource for getting background information on businesses. However, DORA is responsible for the licensing, the regulation and the enforcement for the appraiser, the realtor, and the mortgage loan originator. You will need this specialized information so you can make an informed decision on your Colorado Springs mortgage or Colorado home loan.
- The local BBB solely reports on a business performance. They do not report on their employees so you can’t find anything out the individual Colorado mortgage brokers. However with DORA, you can easily see whether your Colorado Springs mortgage broker is licensed. You don’t want to skip this first step in getting your Colorado Springs home loan.
- A company can have a high rating with the local BBB, but that won’t protect you when you get a Colorado Springs mortgage or a Colorado home loan. There are always bad and less competent employees in every company. It is no different with Colorado Springs mortgage companies. What is really nice about DORA is that they will post denied Colorado mortgage brokers. They also post information on the Colorado Mortgage Brokers who have or had disciplinary actions against them. This is extremely important information. You should only work with a licensed Colorado mortgage broker to get your Colorado Springs mortgage. This is the bare minimum standard when you are selecting your Colorado Springs mortgage broker. You don’t want any surprises when you get your Colorado Springs home loan, do you?
I hope you now understand why I stress the importance of using DORA’s website instead of the BBB’s before applying for your Colorado Springs mortgage or Colorado home loan. If so, please bookmark their website and share this information with everyone who is looking to buy or refinance the Colorado Springs home loan: http://www.dora.state.co.us/real-estate/index.htm.
The next Colorado Springs mortgage tip will address whether you should get your Colorado Springs home loan or Colorado home loan from a bank/credit union or from a licensed Colorado Mortgage Broker.