MortgagesUndressed

This is a photo that hangs on our bathroom wall. It is actually real bugs. My wife, the interior designer picked it up at a local art fair. She thought it was cool that this couple made their business out of going to Africa and collecting bugs, then mounting them in this fashion. I think she paid a hundred bucks for it. Out of Africa makes it worth it. Actually I think she just wanted to help them and the least conspicuous place is our bathroom. Just imagine, how helpful these scarry things might be if you don’t want to use a laxitive. Lar

Don’t let the mortgage alligators bite you.

photo by Kevin Walsh

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You the consumer that has found that blogging can be a consumer protection tool are on the way to better experiences. When it comes to getting a mortgage you have entered one of the easiest arenas there are to have a bad experience.

Two days ago I posted an article by Teresa Boardman, a successful St. Paul real estate agent. The article offered a totally opposite opinion I have about whether you should use a loan officer that works for a bank or should use a mortgage broker. I thought her article was an important viewpoint.

Today Morgan Brown of Blown Mortgage surfaces with his opinions. I don’t think these varied insights will confuse you. In fact I hope for more.

From Morgan: I happen to disagree with Teresa. I believe that mortgage brokers are much better equipped to handle transactions than the actual banks……..

My first disclaimer: the above four points ONLY HOLD TRUE IF YOU ARE WORKING WITH A REPUTABLE BROKER. If you are not, this all goes out the window, an…..

It is an excellent article. Click here

Spam, lengthy spam such as in the photo below has taken over all other forms of spam we receive. We deleted 477 spam from our sites today, 76% were like this.

Intro by Larry Cragun, Article by Teresa Boardman

I have taken some pretty hard stands these near 11 months agains banks. All of my comments have favored mortgage brokers.

In a conversation with Teresa Boardman about lenders I found a surprising difference of opinion.

I wanted what she said available here for you the consumer. Teresa relucantly provided this article. Thanks Teresa, and you aint no weenie. Lar

Mortgage Brokers Vs. Banks for home loans.

This post is my opinion based on my experiences as A Realtor/Broker in St. Paul, MN. This is not intended as an indictment of all mortgage brokers. There are wonderful mortgage bookers all over the country that I have the utmost respect for. Both the mortgage industry and the real estate industry are highly regulated on the state level, my experiences and those of my clients may not have meaning in other markets. Most of my experiences with the mortgage industry have been positive.

There are three lenders that I recommend when buyers ask for advice. These three lenders get rave reviews from my clients, have the utmost integrity and are wonderful to work with. Helpful, honest outside the box thinkers, who care about our clients and who always do the right thing. Two are loan officers with banks and one is a mortgage broker.

That said, in general I prefer to work with banks rather than mortgage brokers. The money for home loans comes from banks, even if the loan is handled by a brokerage. I believe that the banks I deal with have the best rates and they have more access to first time home buyer programs. My business has an affordable housing component in it as a business goal, these lenders are also involved in affordable housing initiatives.

I have not had any problems when dealing with USBank or Wells Fargo but I have had problems when dealing with some of the local mortgage brokers.

It is easy and inexpensive to get a license and go into business as a mortgage broker. We have too many of them and it is almost impossible to research them.

Here are some of the problems my clients and I have had when dealing with mortgages brokers:

1. Not being able to find them. When dealing with a bank we can find someone to help us if the loan officer is not available. As a listing agent I get a pre-approval letter from the buyers agent for an offer on one of my listings and it can take a business day before I can talk to anyone who can tell me if the letter and or the company are legitimate. As a buyers agent I want to know that my buyers are getting the best rates and are not borrowing more money than they can make payments on. How much money someone borrows is none of my business but if I can educate a borrower before it is too late they just might be spared some of the misery caused by a loan that is too risky or expensive.

2. The money not arriving in time for the closing. In Minnesota we close at the table, to accomplish that the money must be wired to the title companies trust account so that it can be disbursed at the closing.

3. Surprises at the closing, in one case $3000.00 dollars in fees that were never mentioned on the good faith estimate but showed up on the settlement statement. The surprise came on my 26th wedding anniversary so instead of enjoying time with my spouse I spent the evening on the phone with an upset buyer and confused closer. After hours of negotiations I was able to get the lender to remove or reduce most of the charges.

4. Higher loan costs, the interest rate may look lower. An examination of good faith estimates and settlement statements often reveals that the total cost to the borrower is not lower. Do mortgage brokers have the the same access to loan programs as the banks own lenders? I have been told that they do not.

5. Lack of access to some of the local city and county first time home buyer programs.

6. Failure to attend the closing. A closing mostly involves signing loan documents, the loan officer or someone from the bank always shows up. I have never had a mortgage broker show up at a closing.

7. Banks appear to supervise their loan offices and have some quality control built into the hiring process. A full time loan officer with a bank has more credibility than a part-time mortgage broker who also owns and operates the local pizzeria.

I am not an expert on mortgages, I sell real estate. Each December I take a class that gives me an overview and update of various loan products and how they work, a legal update and an overview of local mortgage trends. I rely on people I know and trust in the mortgage industry to answer my questions and those of my clients.

The homes we purchase, and loan products we choose have an impact on our long term financial health. Each time one of my buyers gives a mortgage I am struck by the enormity of it all.

The one mortgage broker that I refer business to has 12 years experience in the industry. Also a person with a lot of integrity, he has more experience working with investors, than either of the loan officers. I believe that the investors I work with will come out ahead when they use his services.

The owners of Keller Williams Integrity Realty also have ownership interests in a mortgage company. In general I avoid recommending any company that is financially tied to the brokerage I am affiliated with, an almost unheard of stance in our industry. Many have tried to change my mind about “affiliated” services but no one has made any progress.

Teresa Boardman

Off of Tinas Blog: Home-
We re-fied the house and we are saving ourselves a small sack of gold every month now. It is a huge relief for both Aaron and I. Adjustable mortgages are EVIL!

The lesson: Equity is a big deal. The suggestion: Obtain an amortization chart - look at how much it would take to make an extra principal payment. Make as many extra principle payments as you can each month. Place this as a priority.

Equity is good.

The Winter Olympics are coming to our Canadian neighbors to the north. So I give this weeks Consumer-focused real estate blog carnival an Olympics “flavour”.

I even went with an Olympic style judging system. I gave points for the article being fun, well written, ez to read, catchy title, and a unique topic. I gave bonus points for how important the topic was to the consumer and for providing consumer benefit.

I feel like the Russian Ice Scating Judges a few years back where they were accused of unfair scoring.

I thank all submissions. The Olympics give a gold, silver, and bronze and so will I. Thanks to the rest of you who traveled so far to compete.

And the winner of the Gold Medal in this weeks carnival:

Athol Kay: “A Dumpster Is Cheaper Than Selling The House.”

And The Silver Medal:

I award the Silver to Amy L. Fontinelle for her article: Home Inspection Do You Really Need One?

And the Bronze Medal:

Ann O’Connell: What Can A Stager Do For Me - It’s Gorgeous Outside

This weeks Consumer-focused real estate blog carnival an Olympics ��flavour��. will go live promtly at 6 AM Whistler BC time at MortgagesUndressed.com

This woman got in too deep. She should’t shop for loans either. For the same reason.

My wife Kathleen is as savvy as they come. In her interior design career she has skillfully managed the construction of many mansions. By the way, to her clients, thanks if you are reading this. She was pleased to serve you.

Yet, I would not want her to weather the hazards of loan shopping in this treacherous part of the business world. This photo triggered the reminder of just how badly a couple of single woman I knew were manhandled by their lender.

I don’t mean physically manhandled: the loan officer was a man, they were ripped off. Same thing in a way, one being a financial assault.

So women, be careful, get an expert real estate agents advice on a trustworthy lender, then have them give you feedback on your loan. Lar

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This post is inspired by my searching blogs tonight. Two I found this evening disclose Daddy and Mommy co-signed for the mortgage.

Thus the title: It Is Time To Grow Up Part 2: Part one was written last week.

Having parents as real partners I don’t oppose, share the risk and investment share the rewards. But co-signing no. Co signing means you don’t qualify without. This isn’t a car you are buying, it is a home.

If you don’t qualify please don’t put your parents at risk. I have seen too many co-signers not have the guts to say they didn’t make the payments on time and damaged the co-signers credit.

If you don’t qualify, don’t buy. Grow up, it is time. Hold your horses and buy when you can do it on your own. Lar