The New “What did you do with your Z today” (with off topic replies)

vtec to vvel

Late payments in itself won't prevent anyone with moving forward with a mortgage. The effects of the late payment, such as dropping in score and how much, and the status (i.e. charged off, collections, etc.) may play a factor. The type of loan also plays a factor.

The only way to know whether a house is "overvalued" compared to what you owe is getting an appraisal done. Without this, a loan originator cannot determine a value of a home.

Being self-employed can be tricky, but as long as the taxes are done correctly and matches the bank deposits, it shouldn't be an issue. I've closed plenty of SE borrowers during my time and the biggest key is not writing off anything and everything you can and to show that you make the income to which you claim you have made. I had a client that made over $800K gross, but wrote off so much at the advice of their tax accountant and we could only use about $120K.

One thing I will always tell people is to shop around and get multiple opinions. You could get better service and attention, as well as possible better rates, by going to a brokerage rather than a bank (most brokerages should have the ability to shop around to see what the best rates you could qualify for, whereas banks will typically give you what THEY have to offer).

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blackcherry20

What does a “brokerage” look like? Give me an example…interesting details in your posts.

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Grand Sport Corvette Arctic White

vtec to vvel

I'm dually licensed as a real estate agent and a mortgage loan originator, and worked as both up until recently, and the following is my opinion.

Think of when you go finance a car. Some people get "pre-approved" by their bank and walk into the dealership with that. That "pre-approval" they have is specifically by THEIR bank and THEIR terms/rates/pricing/etc. The dealer financing team has access to a variety of lenders, in which they could look for a lender that offers better terms/rates/pricing/etc. than what the buyer had originally been offered by their bank. So in this example, the dealer financing team could be considered a brokerage.

Let's say you went to your bank to inquire about a mortgage loan. Chances are, the bank will give you THEIR best rates and pricing internally, whereas a brokerage should have access to different pricing platforms and should be able to shop across the market for the best rates and pricing, whether looking in-house or at other lenders.

I would always advise clients to weigh out their options and shop around, as there are pro's and con's to both a bank and a brokerage. But the biggest piece of advice I always offered was to research the person that is working on their loan. Loan officers that work at a bank may or may NOT be individually licensed since they could be covered under the bank's charter license, and may only have the knowledge/experience for only the products their bank offers, whereas loan officers that work for a brokerage typically have to be individually licensed, and offers a variety of loan products.

On the other hand, being individually licensed does not equate to knowledge/experience. For example, there are many licensed drivers in FL, but half of them don't know how to drive and shouldn't be. Same principle could be said about loan officers/originators.

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blackcherry20

Caveat emptor.

Thanks for the explanation. I’m always up for learning something new

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vtec to vvel

As with anything in life

When I bought my house, it apparently was a conflict of interest if I were to originate my own loan. I didn't want anyone else at my office knowing my personal information, so I went to an external lender. I vetted out close to 10 different loan officers before finally choosing a lender, and I would test/ask them intentional stupid questions to see if they knew what they were talking about. Some of the questions I asked was to the likes and equivalent of asking a mechanic about muffler bearings, alternator fluid, starter acid, etc.

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blackcherry20

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Rusty

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浪人 - 殺し屋
"The Difficult Anytime, The Impossible By Appointment Only"
http://www.the370z.com/members-370z-...o-journal.html

vtec to vvel

https://www.youtube.com/watch?v=97Qh9AsHZlQ

"San Diego man says used car dealer took him for a ride."

I would never buy this.

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