Mortgage Resources

David and Daisy are here with some big news about the NEW MAX LOAN AMOUNT and APPRAISAL WAIVERS.

Fannie Mae and Freddie Mac have just raised their old loan limit for conventional loans! The old max was $424,100, and the new max is $453,100.

What this means is that people can borrower more money. There are all sorts of uses for this! If you couldn’t get a jumbo loan previously, you may have more options now. Maybe you can be reimbursed for some of the money you may have spent last year on a smaller loan and now you can get a refinance with a larger loan amount.

AND appraisal waivers?! How great to get through the loan process without the burdensome process of an appraisal.

If you need to know about these, give us a call. We’d love to help you!

Drop that PMI!! (Private Mortgage Insurance)

Here is Danelle Connors of Black Diamond Mortgage talking about dropping your PMI (private mortgage insurance)!

Today we are talking about dropping your PMI. We are always looking for ways to cut our spending. When did you buy your home? Are you ready to drop your PMI so you can put more towards principle? If you think so, let’s talk about it!

There are some factors needed to accomplish this:

  1. Your home’s value
    • We need the value of your home to be greater than the loan amount
    • Need 80% loan to value, meaning you need 20% equity
    • This depends on where you are personally and also what the market is doing – you can gain value just by living in your home!
    • Home prices are going up – let’s look at some different graphs that show the growth happening in the market
    • Maybe you have MORE equity than you think! This could allow for pulling some cash out if your loan to value is, for example, 70%
  2. Make your payments! We will look at how long you have been paying on your mortgage, where are you sitting right now, and what is going on in your neighborhood

If we think there is a bona fide, legitimate value to changing your loan terms, we’re going to help you. We are not going to fluff and tell you one thing when we believe something else. We will do our research so you know you are making a good decision!

So drop your PMI, cut your payment, send more money to principle and less to that PMI. Get rid of it!

“Easy Living” – How to keep your mortgage process simply and easy


David Boye of Black Diamond Mortgage with some tips on “easy living” and how to make your mortgage process FASTER and SIMPLER:

  1. 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
  2. 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
  3. 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
  4. 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!

Importance of Customer Service

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!

Construction Deal – Tips

The construction process can be tough, but if you work together with the Lender and Construction Team, it will make for a smoother process.

Collateral Issues with a Mortgage Transaction

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!!

8 MYTH’s BUSTED (except for the last one…)! Mortgage Brokers v. Mortgage Bankers

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.

Supporting facts:
– 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.

Supporting facts:
– 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!

Supporting facts:
– 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.

Supporting facts:
– 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.

Supporting facts:
– 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.

Supporting facts:
– 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.

Daisy at Black Diamond Mortgage

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!

Income Issues in Mortgages – Video

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!