Commercial and Residential Loan Specialist in|Memphis, TN 


The Answers to the questions that you want to know

Set To Go Loans 

Commercial & Residential Broker 

Memphis, TN,

Nationwide

 

When I initially thought about writing Mortgage 101, I thought it would be a perfect way to share information that I had learned from being involved in the Mortgage Industry with the average consumer. I felt this would be a perfect way to educate them on the do's and don'ts of the mortgage world. Many investors enter into the fix and flip world blind. They have a general ideal of what they want to do, but don't have a clue of the why somethings work the way they do! So after countless talks with investors that were making mistakes simply because they were trying to fit a square peg in a round hole. I realized that they just didnt understand the loan process and with a little more knowledge on the process they can be better in there field  To begin the 1003 is something that every mortgage profession uses daily. 1003 as we call it in the mortgage world, is a Uniform Residential Loan Application. You see the 1003 contains some of the most vital information about the consumer that actually helps them get a loan. It's a road map of the customer and it gives the loan officer all the pertinent information about the customer. So just to give you an ideal of the value of the 1003, let me begin with it gives you who the customer is, how old, his social security number if he is married, where he is employed, with how long, how much he makes who he banks with how much money he has saved and what properties he own and if he has ever filled bankruptcy! That is why the 1003 is worth its weight in gold, priceless! 
When I started in the Mortgage World, there was no 2 week training period just a brief introduction to the 1003 and the phone and that was it, (my training). The wicked learning curve left me learning each week that the mortgage business was no picnic, as a matter of fact it was more a case of sink or swim.
So the key person that any loan officer must know is his or her processor. You see once a loan is originated by the mortgage broker or loan officer, the corresponding paperwork is sent to a loan processor. The loan processor is responsible for prepping and organizing the file and getting it over to the bank or mortgage lender for approval.The processor job is key to helping the loans close because she orders the appraisal, title work and sets up the time for the loan to close. The ideal that giving a little information as possible will help the loan close faster is like spitting in the wind, its going to blow back on you sooner or later...If you want your loan to close faster, be proactive and help your processor especially if she is having problems with your loan. Remember that a processor is an hourly employee and she gets paid bi-weekly, so if your loan does not close, its not her problem, its yours! Sometimes she can not sit on the phone for an hour because of a lien on the title. If you want your loan to close, be proactive. Google should always be your best friend, because they have answers to any question that you may ask.
Unfortunately so many questions are never ask, because you didn't know to ask.
Remember these 6 questions any time you want to do business. So any information that you submit always ask who, what, where, why, when and how. Who is buying the property, where is it located, when do they want to do this, why are they buying or refinancing and how long do they need.
Now you have to become an asset to making your loan close
with the loan in the begining, means the less time that she spends working on your file. This helps your loans close faster. You objective is to help your loan close faster, so for that to happen you have to work harder. You have to learn to Please understand that if you have multiple brokers that work where you are employed, then there is a good opportunity your loan is not the only one being worked. The until my loan made it to the processor, I was not going to get paid!  So for all you rebels that want to tame the beast, buckle up an enjoy the ride. This business is one of the most fulling opportunities that you will ever experience in life, but lets keep it real... It will kick you when you are down and you just have to take it, brush yourself off and keep grinding. The only absolute in the mortgage business is death of your loan... Unfortunately no loan is guanteed and because of that reason you have to learn the language of the pipeline. A pipe line is loans that you are currently working with the intent to close. Let me be the first to tell you that if you have 10 loans in your pipeline maybe 3 will realistically close... So what does that meanso intense. I had no ideal of a pipe line or even that just because you took an application it was guaranteed that the loan was going to close! As a loan officer it was tough, I mean there was no training just a phone book and a list of people to call and you learned as you went. Nothing about the mortgage industry is easy, as a matter of fact I think that it is one of the toughest   I would call customers and fill out the 1003 on the phone and mail it to the customer to sign. Although after I started doing commercial loans it changed everything. Although with a Commercial Loan the 1003 covers 80% of the information needed, we also need 2 years tax returns, a profit and loss statement and an Executive Summary, depending on what type of project it is.Investment loans are more labor intense because
of the amount of paper work involved.
Information about the Uniform Residential Loan Application and I found out maybe everyone does not know that!... My rational was wanting to break down sections of

The property Information and Purpose of loan is important because it tells the lender  where the property is located and a legal description and year it was built.  The 1003 also tells the Lender if, it's a purchase or refinance. When the property was purchase and what was paid for it as well. The 1003 also tells how the property will be titled and how the title will be held. Generally the property will be titled as fee simple, which means that the property owner will eventually own the land that he is purchasing. Now a lease simple means that the property owner only owns the content sitting on the land. Lease simple applys to properties on water, to where the city owns the rights to the water. Another example is Home Depo, they don't own the land to the property that they occupy but simply own the value to what is assigned to

BORROWER INFORMATION tells who you are lending to and where they are employed
and how long they have been with that company. Now this is an important piece of
information, you must show a 2 years of residency. You must also show that you have a
work history of 2 years in the same field.
The first page of the 1003 is the most intense because of the amount of information that is needed. I always believe it better to give too much information than not enough. The more time spent chasing information the less likely that you are going to have a fast and speedy closing.
Monthly income always seems to be a walk in the park for most people. Although that Asset and Liabilities section where most customer tend to leave off.

So after you filled out 2 or 3 of these 1003 it becomes easy, plus now you have a place that you can refer your customer so that it can help them. This is really a start and I am feeling out my readers to see if they would like me to continue more information on my site. I have been in the mortgage industry since 2002. Most of my knowledge is from trial by fire. So I learned the business, so I could be in business

 

 


Credit The Good, The Bad and the Ugly

The one thing that I have learned about credit is from the work that I do, and it is all factored on who you are and when you pay your bills. So there are basically six categories of people and how they pay their bills.
    1. The first is the person with an elite credit score. He has a 700 to 800 credit score he manages bills like a science.  He keeps a list of what is spent, when he spent it and why he spent. They also qualify for the best interest rate and the best programs.
    2. This is the 2nd tier group they have a credit score between 650 to 700 credit score. They pay there bills like clock work. Even though the second tier credit group pays bills like the tier one group, they have a little more debt and how its managed determines why there credit score is lower. They live to be ahead of the curve but in some cases they may be late sending in a payment sometimes.
    3. The 3rd tier group is somewhat deceiving because the score is lower 600 to 575 but they can buy anything they want like the 1st tier group. The difference with this group is they are extended on credit cards and there bills. They help there son, daughter, sister and brother and on paper you wonder how are they making the payments. The reality of the 3rd tier group is they can qualify to buy anything but the interest rate that they qualify for is the 7 to 9% interest rate. So regardless of there intent to pay off the bills, they tend to live extended.
    4. The 4th tier group is the group with good intentions but Murphy Law is always lurking close by. Their credit score is 570 to 540, and they can buy but it always falls to a last minute discussion before the final approval is given. This person as priority set in there ind on how they will pay the bill when they are getting credit but forgets when its time to pay the bill of the credit priority that they said. So as they look at life they are always living for the moment. They credit card is over almost to the limit and they are one moment away from disaster.
  1. The 5th tier group is the ones that don't pay anyone. They score are 535 to 400. They start with the great intention when they get the cell
  2. phone, credit card or car. Yet they
  3. never seem to hold up there obligation. When you look at there credit report you see
  4. charge off, collections and alot of petty bills that they never pay. So here is something
  5. that you have to remember with the 5th tier of people, there children usually have good credit???
  6. The 6th tier group is the people who buy everything with cash and they will have no credit score.We call those people ghost because they don't really exist.

So the number#1 question that I have about credit, that consumer ask me is "how can I
improve my credit score"? So if you want to make your credit score rise, and make significant
leaps. You need to live like this, first never let your credit card balance go over 45% half of
your max credit. An example (your credit limit is $1,000) so you never want your balance to
go over $450 dollars. If you don't have a credit card, get one! Number #2 is use your credit
card to buy your gas and at the end of the month pay the balance down to just a few dollars. (REMEMBER CREDIT IS BASED ON YOUR ABILITY TO STAY IN DEBT AND CONTINUE
TO PAY YOUR BILLS ON TIME) One thing you must consider is that if you payoff a car loan
or mortgage your credit score will drop. Not a drastic drop but a possibility of 50 to 80 points.
One of the ugly things in life if you are late on your payments as indicated below it effects
your credit scores and it will gradually drop your score.
Think of your credit like stairs you have to put effort to climb to the top, although when you
are going down its always easier to go down than to climb.


This Legend is one of the factors that help determine what your credit score will be.


The big three in credit is Experian, Trans union and Equifax. These are credit reporting agency that tell you what your credit score is. So many people think that credit is the ability to stay out of debt. In reality credit is the ability to stay in debt and pay your bills on time.
This is not a science of credit, but just my interpretation based on my experience in the
mortgage world. If you are trying to repair