Check out Leo Govenettio and Gary Ludwig singing about the Mortgage Blues! Black Diamond Mortgage has the cure!
David Boye of Black Diamond Mortgage with some tips on “easy living” and how to make your mortgage process FASTER and SIMPLER:
- Don’t move your money around
- We look at 2 months of bank statements and will have to source where any deposits come from
- Leave it in one spot – don’t transfer it around
- Don’t open new credit
- Classic mistake – opening credit for a new refrigerator or a new car
- This can impact your score and cause you to have to provide even more paperwork
- Provide your tax returns upfront
- Best strategy is to provide them on day one – ALL pages
- We will need the whole story – this helps us avoid learning new things late in the process
- Move FAST!
- If we ask for items from you, get them to us quickly
- The sooner we get things from you, the faster we can close!
- Move fast, close fast!
Whether you are a Mortgage Broker or an Auto Repair man….customer service is important. Check out this video on some tips and hear from David at Black Diamond Mortgage as well as Andy from Acme Auto!
The construction process can be tough, but if you work together with the Lender and Construction Team, it will make for a smoother process.
Maria – We are back for our 3rd installment of closing tough deals.
-covered 2 of 3 C’s (Credit and Cashflow)
Danelle – today we talk about the Collateral. Not all homes are perfect. And sometimes there are challenges to overcome. We are here to talk to a past borrower and his real estate agent.
Introductions – Hi, I’m Sam Siddall w/ National Parks Realty
Hi, I’m Bryce, the homeowner!!
Maria to Sam – What are some challenges you’ve seen with properties?
Sam – List examples of property repairs that can cost the whole deal to fail.
-Foundation Damages – Longevity of property
-Safety issues – Risks –
Sam to Bryce – We had some of these issues with your property –
Bryce – Talk about the roof needing repairs and the deck needing a safety railing
Danelle to Maria – These sound like reasonable things, so why can it be a deal breaker? Can’t they just fix it and move along?
Maria – Sometimes it comes down to money. How are the repairs getting paid for? Can the seller afford it? Should the buyer have to pay? What if they want to split it?
Sam – Talk about the option of seller fixes it and pays
Bryce – willing to maybe finance it into his loan and pay it at closing, but only if you can afford to increase your loan that amount
Maria – Sometimes, there can even be a compromise! Have the repairs done and the invoices paid at closing by both seller and buyer!
Bryce – That is what we did in my case because everyone really wanted the deal to close, so we opted to share the costs!
Maria – It’s really about working together to find the best solution for everyone & get the deal done!
Danelle – Thank you for watching. Thanks Sam and Bryce for helping out. Please like and Share!!
A recent observation is that mortgage “bankers” and “traditional retail banks” tour Realtor offices and other venues touting that they are somehow better than mortgage brokers at providing the funds needed to purchase a home. (Black Diamond Mortgage Corporation is proud to be the experts in real estate finance, and a mortgage brokerage to the core!)
So we have decided to list the traditional talking points and BUST THE MYTH’s!
Myth #1 (BUSTED!) – Mortgage Banks are more lenient than Mortgage Brokers, because they are loaning their own money.
Fact: Black Diamond Mortgage provides more options and more expansive loan offerings than any one banker can.
– If you had your own money to lend, would you take more or less risk with it? LESS, of course! So the only way to provide more options than you would offer with your own money, is to have the option of using other people’s money that would take more risk than you.
– Mortgage brokers can literally present a loan to a 2nd, 3rd or 4th wholesale bank (when necessary) as a brand new loan, with a brand new underwriter, with the broker learning from each lender’s response, and insuring the best presentation with the most likely approval possible.
– Mortgage brokers are not limited to the opinion of one underwriter, Many mortgage bankers with their own underwriter’s “cannot walk back” a loan situation that may not have benefited their client, and could have been presented differently.
Myth #2 (BUSTED!) – Mortgage Banks can “get things done” easier, because they have direct underwriting access.
Fact: Black Diamond Mortgage staff are better trained in going to the source for facts, and with today’s technology, if an underwriter has a phone (all of them do), then they are equally accessible to bankers and brokers.
– Most loans offered are using Fannie Mae, Freddie Mac, VA, USDA or FHA guidelines. These guidelines are used by underwriters to approve loans. Even a client can look up the rules and push an issue with an underwriter when needed.
– Because mortgage brokers have access to multiple lenders and underwriters, they have more than one opinion to draw from whenever there is a question about underwriting guidelines.
– A mortgage banker is limited to the opinion of the underwriters and policies of the bank they work for. These opinions do vary and often there are differing conservative v. liberal policies, so the only way to offer the most expansive approvals is to have more options.
Myth #3 (BUSTED!) – Mortgage Banks can offer better interest rates / loan pricing.
Fact: Black Diamond Mortgage will obtain loans from wholesaler mortgage banks that are MUCH larger than any individual mortgage bank or retailer….think BUYING POWER! – COSTCO!
– Mortgage brokers can shop loans with several wholesale banks in seconds, often identifying pricing disparities of up to 0.25% on the interest rate or cost savings of thousands of dollars!
– Mortgage brokers offer the lender paid compensation model, where the borrower pays the mortgage broker NOTHING, and the entire compensation comes from the wholesale lender.
Myth #4 (BUSTED!) – Mortgage banks fund the loan in their name, and this is better for the client.
Fact: Black Diamond Mortgage funds mortgages in the name of the lender actually collecting the mortgage payments on the future loan and do not “act like they funded the loan” only to sell it a few days later for servicing.
– The majority of all loans backed by Fannie Mae, Freddie Mac, VA, USDA or FHA are sold at least one time during the life of the loan.
– Having the loan close in the name of the first bank to plan on collecting payments, eliminates the confusion of a sale being completed right after the client closes (this is the practice at many “Mortgage Banks”).
– Many clients at mortgage banks complain about their loan being sold, shortly after closing.
Myth #5 (BUSTED!) – Mortgage banks have “in-house” or portfolio loans, and Mortgage Brokers do not have them.
Fact: Black Diamond Mortgage Corporation offers loans that are unique from several banks, credit unions, and wholesale lenders, all designed to meet niche needs in the lending universe.
– We have Lenders that lend to foreign nationals who live abroad, offer commercial loan underwriting for residential purchases, and is a retail bank offering unique lending options to mortgage brokers for clients.
– Some of our Lenders and other partners of ours offer “NON-QM,” “Bank Statement Only Programs” and other unique options.
– Another Lender, offers 1xClose Construction loans with no money down.
– And another one of our Lenders offers conventional and FHA renovation mortgages with the 1xClose Construction Options.
Myth #6 (BUSTED!) – Mortgage banks are local / personal, mortgage brokers do not know or care about you.
Fact: Black Diamond Mortgage employs many who live in the community that we serve, own homes funded by Black Diamond Mortgage.
– Clients obtaining the loan at Black Diamond Mortgage will be supported by the loan officer, the operations manager and our “Coordinateur de L’Experience Gentile” … all local and very interested in your success.
– Our investors use regional employees as well….many employed in Montana, Idaho and Washington.
Myth #7 (BUSTED!) – Mortgage banks are faster than mortgage brokers
Fact: Black Diamond Mortgage operates very fast, with resources much larger than our own company, and the ability to offer the fastest interpretation of new TRID closing laws.
Non-Myth #8 (MYTH NOT BUSTED– TOTALLY TRUE) – Bankers are “stiff”, a little too good than the rest of us….
Fact: Black Diamond Mortgage staff are laid back, our dogs come to the office, and you can pick up a company labeled beer coosie or ski strap when you come by to hang out….
Stop by a mortgage broker like Black Diamond Mortgage, and see the difference for yourself!
Quick re-cap of the previous 2 weeks FB Live videos- stats on videos, encourage folks to keep it going by sharing, like and commenting
Dave points out that Leah knows how to work on tough deals… and knows video and radio… offers Leah to run this weeks show!
Everyone throughout the video is saying “when we close tough deals, we like to close tough deals… this is how you close tough deals… etc… as often as you can say “CLOSE DEALS” and “CLOSE TOUGH DEALS”…..
Leah- continue to comment on how important it is TO YOU AS A REALTOR for the lender to seek the highest and best approvals for the buyers and try not to be limited by one or two ways of doing the deal, but to vet out every way to get the buyer approved for the best loan amount
Tough Income comes down two 4 big concepts:
– #1- Becky – Getting all the information early (full disclosure- tax returns, assets, job history, other income docs that may exist… Becky needs everything to present the loan in the best light to the underwriter)
– #2- Danelle – Get an automated underwriting approval if possible…. automated = higher income usage and that = higher loan amounts … DU, LP, GUS, FHA ScoreCard, Proprietary UW Systems…. You want the highest allowable debt to income ratio approved possible to handle tough income (DANELL- TAKE THIS COMPLEX IDEA AND MAKE IT SIMPLE)
– #3- Maria – Lender shop! Contact tough loan underwriters, check with lender guidelines, look for “max guidelines” choose the lender based on their ability to approve the highest possible loan amount
– #4- Dave – (Secret / sneaker income!) – Co-signors, boarder income, switch from self employed to full-time, spouse removal from the application….
Close the video out- share, like comment, let us know if you want to be featured….
Next week- Closing Tough Deals V.4 – Danelle is running the show! Tough property!
STAY IN THE BOAT!
Dave – Thank you for making last week’s video the most successful video in BDMC history… 6000 post views, 300 click thru video views! Clearly, live is better, and we will plan to keep delivering for you Wednesday’s at 11am, and topics of interest to you!
Here’s a quick Recap of tough deals week 1.. 3 C’s and Big G… full disclosure, always pay housing on time, and have a good excuse when you make a mistake.. watch last weeks episode on our FB Page, it was funny! And informative
Maria- Reminder: the emotional component of working on tough deals (recap, and we understand)… we were reminded in our last FB Live, by Realtor Brenda Twete, that in addition to the challenges of qualifying for a tough deal, there are challenges in keeping the deal together with all the things that can come up…
Dave – This is truly an interactive, live weekly show, so comment, like and share this episode or last weeks, and if you want join us for an episode to bring your expertise
Maria- Last Christmas we bought that picture for the office (explain a bit)…. So… We’re headed to one of Brendas listings here in Whitefish to meet up and talk more about how important the emotional component of a tough deal is…. next week, we will pick up on tough deals and income…
Dave- unless our audience gives us something better 🙂
Maria- hey, there’s Danelle Connors… Loan Officer at BDMC and local legendary Realtor, Brenda Twete!
Danelle- Mention that we are at one of Brenda’s listings with a few comnents.. ask Brenda what she told us last week during FB Live…. ….
Brenda- “Stay in the Boat!”
Danelle- What does that mean?
Brenda…. stay in the Boat explanation.. what it is, why it’s hard, what’s required, why it’s important to you, the client getting what you actually want and have hired a team of professionals to help you do
All- conversation… examples of staying in the Boat, one example of jumping out of the boat… more of staying in the boat.. examples of challenges that come up with all parties and name the parties: buyers, sellers, realtor (buyer and seller side), escrow, appraisal, home inspection, home insurance, lender (processors, underwriters, broker).. noncontracted 3rd parties … mom, dad, kids, friends….
Conclusion… surprises are fairly common, it’s how you handle them that makes all the difference… stay under contract as long as possible, and even if you fall out of contract, stick with your trusted partners … you can get back into contract or have your rights protected…
The deal is over when the ink dries and the county records, up until then, things can happen requiring a disciplined response!
Thank you for watching! Please comment, like, share… this will be on our page today..
Next week… Tough deals v3… Income… unless you give us something else!
If you want to be featured… let us know! 6000+ people saw our last FB Live video post
Special thanks to Brenda Twete and National Parks Realty!
Hello internet universe!
Welcome to our first facebook live broadcast! We are taking a break from closing deals and grabbing a coffee, so we thought we’d take a moment to cover “important tips” for closing tough deals!
I’m David Boye
When we are talking about tough deals…
We understand that there is a big emotional aspect to the equation! A borrower seeking a tough mortgage may have already been turned down once, so hearing that another mortgage lender will consider them is full of mixed emotions…
We get that, and will try to isolate the problem down to one big variable and make a clear decision on whether or not it makes sense to proceed or to wait until things improve before trying for the loan.
To close tough deals, you need to understand the basics of mortgage lending… all mortgages must address the 3 c’s in order to happen:
– and collateral
(cashflow is like income, and collateral is like the appraisal)
You have to address all three in some way to get a mortgage
There is one other secret weapon, i call it “big g” or the government… and they occassionally create ways to put less emphasis on the big 3 to get more borrowers into homes….
Today, we will talk “tough credit” and how those deals either happen, or when to wait and get the credit better before proceeding….
We have closed deals this year with borrowers having credit scores in the 580’s or even with borrowers having no credit score at all….
When these deals close, there are certain things that need to happen for them to work, but the good news is that these borrowers are closing this year and not being made to wait till next year!
So it we are going to talk briefly today about closing tough deals that many lenders would say no to, with borrowers that have a credit score under 620/640 or no credit score, or some derogatory information, liens, judgements or other rough credit events and how those loans can still close…..
3 big principles:
1) Full disclosure about everything!
2) Regardless of what the rest of the credit looks like, the housing payments are made on time
3) You need a good excuse for the bad credit
We want to get the tough loans to close! we will isolate the trouble down to one big variable, like something we’ve presented here, solve it with a viable loan- and then go for it!
If now is not the right time, the best thing to do is apply anyway so we can roadmap the way forward, because there is always a way forward from where you are
Next week! We hear that a lot of people are employed seasonally, so some folks may be about to get laid off or encounter other income challenges….
Tune in next week for tough income!
Please share this with your friends, like it, and ask questions…. if we get a lot of interaction, we will try an interactive program sometime with q&a, etc…
If you messaged us today or asked a question, we will follow up soon- after we finish our coffee, etc…
thanks you for watching, go to www.blackdiamondmortgage.com for more info, of contact us for a one on one