How Do I Choose The Right Mortgage Professional?
P. Simon Mahler, First Houston NW Mortgage Bank
September 15, 2008
By P Simon Mahler, Mortgage Banker
Mahler Mortgage Group – FHNW
RICHLAND, WA – The stock market is slipping, oil is dropping, and the interest rates have become favorable. Are homeowners cashing in? ABSOLUTELY! With an increased risk of foreclosure looming, homeowners are cashing in on the Federal Government taking over operations of Fannie Mae and Freddie Mac.
With the opportunity to refinance an existing home loan, homeowners are eager to find the right home loan to meet their needs. With interest rates for 30 Year Fixed Rate mortgages being advertised in media, people are calling and working with the only available options in the industry, mortgage professionals, loan originators, mortgage planners, etc. that claim to have the lowest interest rates, lowest fees, and the most knowledgeable people in the business.
How do you really know that the mortgage professional you are working with is licensed and knowledgeable in the mortgage industry? Are the fees you are being charged normal, fair, and typical of other lending institutions? Do I have to pay upfront for any services rendered during the transaction? These are all valid questions that people face daily when looking at doing a new mortgage home loan.
During a time when the housing and mortgage industry are at a crisis level, mortgage and real estate professionals alike are filing out of the business at record pace. Mortgage professionals that were in the business yesterday, are leaving the business tomorrow for various reasons mostly related to lack of business.
During the real estate boom of 2004-2006, a record number of new loan originators and lending companies formed and created opportunities for ordinary people with ordinary jobs, to obtain extraordinary dreams of home ownership. Innocent homeowners were forced into loan scenarios that seemed beneficial at the time, only to realize that their mortgage professional put them in a loan that was not "ideal" for their clients needs, only ideal for the mortgage professional and their pocketbook.
"Most people don´t realize that lending institutions pay mortgage professionals a premium for putting clients into a loan program or interest rate that is suitable for the bank and not the borrower. Negative Amortization loan programs were a big contributor to mortgage professionals and their business." – P. Simon Mahler, Mortgage Banker
Additionally, even in today´s market, mortgage professionals who are not monitored and licensed, charge innocent homeowners with what are called "junk" fees. Most notably regarding these fees are the following:
Commitment Fees
Loan Application Fees
USDA Rural Fees
USDA Rural Education Fees
Loan Service Fees
Administration Fees (Unless a Mortgage Banker is performing the loan)
Credit Report Fees (Credit Reports should be free)
These items identified as "junk" fees are common with mortgage professionals who are "dying" in the business of lending. Most innocent homeowners are restricted with who is still in business. With a record number of mortgage professionals making a quick fortune in 2004, a record number of more are leaving this business because loans are becoming scarce. It´s only those who are maintaining a successful practice of loan origination that have innovative technology, a proven system of success and performance on their home loans with clients, that mortgage professionals are still in business today. These are the mortgage professionals who charge a standard (1.00%) loan origination fee, nominal underwriting and processing fees, and have a cutting edge opportunity to achieve a great rate at NO COST for each client. There are mortgage professionals in the business who have an ability to get interest rates direct from the Wall Street trading floor and that limits your overall costs of the loan as a homeowner.
Look out for the misleading advertisements that allow a homeowner to close on a loan with no fees. Banks are not in the business of giving away free money. Retail banks will always advertise the lowest fees to get your home loan complete, but will charge you a great deal more over the life of the loan versus a mortgage professional. The best mortgage professionals in the business are licensed, knowledgeable, and have a complete understanding of your home loan and the benefit of why they have you using that home loan product. Successful mortgage professionals will compete and fight for exceptions to achieve the lowest rate for you because they want your repeat and referral business. Successful mortgage professionals understand volume versus quality and realize that achieving a great interest rate and limited payment is the ultimate goal for any homeowner, especially those in a volatile market, and a volatile economy.
Regardless of your current situation, if you are looking for a new home loan, be sure to look at all your options when it comes to choosing the right mortgage professional. Good mortgage professionals will provide you with Good Faith Estimates in a timely manner, (3 Days), low fees, and will spend the time necessary to explain your costs and the structure of the loan they believe is the right fit and most suited for your family.
P. Simon Mahler is affiliated with Mahler Mortgage Group - FHNW, a Licensed Broker, (WA) Department of Real Estate. For a free consultation or mortgage planning session, call Mahler Mortgage Group at (509)420-4235
Mahler Mortgage Group – FHNW
RICHLAND, WA – The stock market is slipping, oil is dropping, and the interest rates have become favorable. Are homeowners cashing in? ABSOLUTELY! With an increased risk of foreclosure looming, homeowners are cashing in on the Federal Government taking over operations of Fannie Mae and Freddie Mac.
With the opportunity to refinance an existing home loan, homeowners are eager to find the right home loan to meet their needs. With interest rates for 30 Year Fixed Rate mortgages being advertised in media, people are calling and working with the only available options in the industry, mortgage professionals, loan originators, mortgage planners, etc. that claim to have the lowest interest rates, lowest fees, and the most knowledgeable people in the business.
How do you really know that the mortgage professional you are working with is licensed and knowledgeable in the mortgage industry? Are the fees you are being charged normal, fair, and typical of other lending institutions? Do I have to pay upfront for any services rendered during the transaction? These are all valid questions that people face daily when looking at doing a new mortgage home loan.
During a time when the housing and mortgage industry are at a crisis level, mortgage and real estate professionals alike are filing out of the business at record pace. Mortgage professionals that were in the business yesterday, are leaving the business tomorrow for various reasons mostly related to lack of business.
During the real estate boom of 2004-2006, a record number of new loan originators and lending companies formed and created opportunities for ordinary people with ordinary jobs, to obtain extraordinary dreams of home ownership. Innocent homeowners were forced into loan scenarios that seemed beneficial at the time, only to realize that their mortgage professional put them in a loan that was not "ideal" for their clients needs, only ideal for the mortgage professional and their pocketbook.
"Most people don´t realize that lending institutions pay mortgage professionals a premium for putting clients into a loan program or interest rate that is suitable for the bank and not the borrower. Negative Amortization loan programs were a big contributor to mortgage professionals and their business." – P. Simon Mahler, Mortgage Banker
Additionally, even in today´s market, mortgage professionals who are not monitored and licensed, charge innocent homeowners with what are called "junk" fees. Most notably regarding these fees are the following:
Commitment Fees
Loan Application Fees
USDA Rural Fees
USDA Rural Education Fees
Loan Service Fees
Administration Fees (Unless a Mortgage Banker is performing the loan)
Credit Report Fees (Credit Reports should be free)
These items identified as "junk" fees are common with mortgage professionals who are "dying" in the business of lending. Most innocent homeowners are restricted with who is still in business. With a record number of mortgage professionals making a quick fortune in 2004, a record number of more are leaving this business because loans are becoming scarce. It´s only those who are maintaining a successful practice of loan origination that have innovative technology, a proven system of success and performance on their home loans with clients, that mortgage professionals are still in business today. These are the mortgage professionals who charge a standard (1.00%) loan origination fee, nominal underwriting and processing fees, and have a cutting edge opportunity to achieve a great rate at NO COST for each client. There are mortgage professionals in the business who have an ability to get interest rates direct from the Wall Street trading floor and that limits your overall costs of the loan as a homeowner.
Look out for the misleading advertisements that allow a homeowner to close on a loan with no fees. Banks are not in the business of giving away free money. Retail banks will always advertise the lowest fees to get your home loan complete, but will charge you a great deal more over the life of the loan versus a mortgage professional. The best mortgage professionals in the business are licensed, knowledgeable, and have a complete understanding of your home loan and the benefit of why they have you using that home loan product. Successful mortgage professionals will compete and fight for exceptions to achieve the lowest rate for you because they want your repeat and referral business. Successful mortgage professionals understand volume versus quality and realize that achieving a great interest rate and limited payment is the ultimate goal for any homeowner, especially those in a volatile market, and a volatile economy.
Regardless of your current situation, if you are looking for a new home loan, be sure to look at all your options when it comes to choosing the right mortgage professional. Good mortgage professionals will provide you with Good Faith Estimates in a timely manner, (3 Days), low fees, and will spend the time necessary to explain your costs and the structure of the loan they believe is the right fit and most suited for your family.
P. Simon Mahler is affiliated with Mahler Mortgage Group - FHNW, a Licensed Broker, (WA) Department of Real Estate. For a free consultation or mortgage planning session, call Mahler Mortgage Group at (509)420-4235
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