With every year, come new opportunities. And astute loan officers are quick to capitalize on what the new year brings, raising their commission levels and catapulting to top producer status in no time. I ask you one simple question, "Are you doing everything you can to maximize your income?"Anyone who has been in the mortgage industry for at least a year, knows that as home prices increase, so do the conforming loan limits from both Fannie Mae...more
With interest rates rising rapidly, it is more important than ever to make the most of every loan. As refinances begin to dry up and you begin to deal more with purchases, you will undoubtedly encounter new roadblocks and hurdles on the way to the closing table. It's a fact--purchase loans are far more time consuming and stressful than their refinance counterparts. Borrowers are emotional, erratic, demanding, panicky, unsure, deliriously happy...more
Let's face facts. The mortgage business isn't for the faint of heart. It takes guts and relentless determination in order to succeed. You won't become a top producer overnight and your early months of being in this industry will be hell. There is so much to learn as a broker not only with the mechanics of the loan process, but also learning how to deal with difficult customers and balancing the demands of lenders and other outside third parties. It really is a juggling act. Picture the man at the circus with the 15 spinning plates and you'll have a pretty good idea of what being a loan officer is really like.If you are thinking of going into the loan business or know someone who is, here are some questions you should ask yourself before committing to this new career. Don't be blinded by the commission---take a step back and look at the big picture.Ask yourself 1. Do you have a full 8-10 hours a day to devote at a minimum to your new career?2. Do you have time in the evening between 5 and 8 pm to call people and free time on the weekends to follow-up?3. If you intend to originate loans part-time, do you have the sufficient knowledge and education to know what you are...more
During my public speaking and private coaching sessions, I cover many unconventional strategies that have helped me become a top producer in the mortgage industry. I've always been one to think out of the box, and my mind is always focused on how I can improve myself as a loan officer and become more successful.Anyone who has been a reader of this...more
When I was a new loan officer, one of the most difficult things I had to learn was that not every loan that walked in the door was a good loan. Some loans were bad. Really bad. And like time bombs waiting to go off, they usually exploded right before closingtaking my hard-earned commission with it! It doesn't take too many loans falling-out...more
Generating Good Faith Estimates (GFE's) can be extremely time consuming, especially if done the wrong way. I remember when I was first starting out in the industry, it seemed like all I was doing all day was filling out GFE's, and getting no where. When talking to a customer, it's easy to say, "Hey, I'll just send you a GFE, and you can look it over and tell me what you think". But, this is the wrong way to approach things. Let me explain here are a few tips to help you.1. On the sales call, don't ever offer to send a customer a Good Faith Estimate unless they specifically ask for one. What they will do is take your estimate and nit-pick with you over ever line item. Then they will compare you to everyone else's GFE and you will LOSE. Yes. Lose. Because with all the sharks and charlatans out there, there will always be someone who will magically "beat your closing costs". And, as we all know that much of the closing costs are not known at the initial time of the loan origination. 2. Instead, what you want to do is send out a "loan proposal", which is something that they can review and includes all the payments, selling points, etc. about the loan. Are they consolidating...more
One of the toughest things as a loan officer to do is to know when to keep or kill a deal. Of course, we all want as much business as we can handle. But, spending time on loans that don't close, wastes more time and leaves you with nothing to show...more
On every loan, there are a number of hurdles that must be overcome before the loan is "cleared to close" by the underwriter. One of the most important hurdles is the appraised value on the property. A deal can be dead on arrival, if the property...more
Every day I hear from loan officers across the country who are fed-up with low commissions and dwindling paychecks as the reality of the new mortgage economy sets in. They've had it and many can't hold on much longer. Others take a more balanced view...more
Keeping up-to-date on everything going on in the mortgage industry can be a daunting task. With all of the coming changes from HUD and RESPSA, staying aware of rules and regulations is not only a necessityit's an absolute must! You do not want to...more
With the rise of interest rates and the drying-up of the refinance market, it makes sense to transition your business to the purchase money market. After all, home purchase loans will become the bulk of your broker transactions and it is only...more
One of the most frequent questions I get asked from loan officers is, "How can I go out on my own and start my own mortgage company?" Often times, the person is sick and tired of low-commissions, office politics, too restrictive a time-schedule,...more