Advice In Avoiding Bad Mortgage Reviews

Tips In Avoiding Bad Mortgage Reviews

Avoiding Bad Mortgage Reviews is not too difficult. These days of the world wide web and the access of technology with every statement a public consumer can make on public forums, websites, and scam sites, bad reviews or testimonials can devastate any professional. Avoiding Bad Mortgage Review is not just limited to loan officers but any professional such as attorneys, real estate agents, doctors, dentists, insurance agents, and businesses as well. However, mortgage loan originators have much more scrutiny than any other professionals. Home Buyers, especially first time home buyers, is relying on mortgage loan officers in closing their home loans. Borrowers are trusting their loan officers with the most sensitive documents and financial and credit information. A person’s financial information is the most sacred and most confidential items they have and they are trusting their loan officers with tax returns, W-2s, paycheck stubs, bank statements, retirement and investment accounts, and other extremely private information. Loan Officers should realize how much the mortgage loan borrower are trusting them and counting on them. In return, the mortgage loan officer should feel honored and do whatever in his or her power not to let their clients down. Mortgage loan originators need to realize that many lives are affected by their diligence and should treat every single mortgage loan borrower like they would treat their family members. This mortgage blog article is geared towards new mortgage loan originators who are entering the mortgage business and getting started on the right track when dealing with clients and avoiding bad mortgage reviews. Avoiding bad mortgage reviews is not difficult and if you treat your borrowers better than how you want to be treated, then you will not get a single bad mortgage review. Bad mortgage reviews will be devastating to one’s career as a mortgage loan originator and those with multiple bad mortgage reviews will not last in the mortgage business for long.

Avoiding Bad Mortgage Reviews: Communication

As a manager and in charge of mortgage loan officers, I know of every single mortgage loan borrower that comes in. I am the front line person that speaks with every mortgage loan applicant and welcome them onboard. Not every mortgage loan applicant will qualify for a mortgage loan right away. However, my business model is that if a mortgage applicant wants to realize the American Dream Of Home Ownership become a reality, me and my staff will work with them with getting them get qualified, no matter how long it takes. Most banks and other mortgage lenders will tell borrowers who do not qualify that they need to come back a year later when their credit has improved. However, everyone under my watch will work with borrowers who do not quite meet the minimum FHA credit score requirements of 580 FICO to qualify for a 3.5% down payment FHA home purchase loan. There are a percentage of our borrowers who have credit scores in the low 500’s who we help and eventually qualify for a FHA Loan and end up closing on their home purchase. It is not if you qualify with us. It is when you qualify with us.

Open communication with the borrowers is a must in avoiding bad mortgage reviews. If you are a mortgage loan officer who has a family and do not want to take business calls after 5 pm and do not want to take business calls over the weekend and holidays, say so to the borrower on your initial phone call. Every one of my loan officers are available 7 days a week, evenings, weekends, and holidays. This does not mean other loan officers need to abide by my business model. Always return phone calls and emails promptly. One way of getting bad mortgage reviews is by not returning phone calls and/or emails by your borrowers.

Avoiding Bad Mortgage Reviews: Pre-Approval Phase Is Most Important Stage In Mortgage Process

Loan Officers need to keep in mind that the pre-approval stage is hands down the most important phase in the mortgage process . There are so many mortgage rules and regulations these days that even the most experienced mortgage loan originator will not know every case scenario. Most last minute mortgage loan denials is due to a sloppy pre-approvals by mortgage loan officers. If the loan officer issues a solid pre-approval letter , then there should be no issues with the mortgage approval process and the deal should close. I have seen many times where loan officers will just run credit and without thoroughly reviewing the credit report and reviewing tax returns will issue a pre-approval letter and the borrower goes and gets an executed real estate purchase contract. The home buyer then spends money to get a home inspection done, spends more money and get the appraisal done, and then there are issues with the mortgage loan file, which we will cover.

Avoiding Bad Mortgage Reviews: Sloppy Pre-Approval Letter

One example where mortgage loan application can blow up during the mortgage process is when a loan officers issues a pre-approval letter just by seeing the credit scores and not reviewing the mortgage loan borrower’s overall credit report and credit history. Just because the borrower meets the minimum credit score requirement does not mean that the borrower is credit qualified. Most of my borrowers who I represent are borrowers who did not qualify by other lenders or got denied during the mortgage loan approval process by other lenders .  Let’s take a case scenario: Borrower with a 581 FICO credit score gets a pre-approval letter by a loan officer and goes and gets an executed real estate purchase contract. The borrower spends $350.00 on a home inspection and spends $475.00 on a home appraisal. The mortgage loan underwriter immediately suspends the file because the borrower has a few credit disputes on non-medical collection accounts with outstanding unpaid balances of over $2,000. The mortgage loan officer gets notified to have the disputes retracted in order for the mortgage underwriter to continue on with underwriting the mortgage loan. The mortgage loan officer asks the borrower to retract the credit disputes and the borrower does what he is told. When the credit disputes are retracted, the borrower credit scores drops 20 FICO points and now the borrower’s credit scores are 561 FICO instead of 581 FICO, where he no longer qualifies for a 3.5% down payment FHA home purchase mortgage loan. This file is totally dead. The mortgage loan originator should have carefully reviewed the borrower’s credit report prior to issuing the pre-approval letter and noticed the credit disputes and had them retracted and saw the outcome of the credit scores after the disputes were retracted. Retracting credit disputes WILL ALWAYS RESULT IN A DROP OF THE BORROWER’S CREDIT SCORES.

Avoiding Bad Mortgage Reviews: Not Contacting Borrowers Due To Bad News

To top the above problem, the loan officer realizes that he made a mistake and does not contact the borrower and has his loan officer assistant or the mortgage loan processor that the borrower does not qualify for a mortgage loan anymore because they do not meet the minimum credit score requirements due to the drop in credit scores by retracting their credit disputes. On the flip side, there are many lives that have gotten affected due to this error by the loan officer. The home buyers not only spent precious money on the home inspection and appraisal fees, but they have already gave notice to their landlord that they will be moving out. The landlord may have already rented the home the borrower was renting and now needs to find another home for the borrower and his or her family. The borrower may have already registered their children to a new school where they were purchasing their home. Now, how about the seller? The seller may have another home under contract and have spent money on a home inspection and home appraisal. They may have already registered their children to a new school district. You then have the buyers attorneys, sellers attorneys, buyers real estate agents, and sellers real estate agents involved where they did all the work and nobody is getting paid. All this mess just because the mortgage loan originator not being diligent prior to issuing a pre-approval. Will a bad mortgage review be warranted?

Avoiding Bad Mortgage Reviews Solutions

Mistakes do happen by mortgage loan originators. The above case scenario is a perfect case scenario that does happen in real life. However, with every mistake, there are solutions. When situations like the above case scenario happens, the loan officer needs to take charge and try to solve the problem. Not returning phone calls or not letting the borrower know is the biggest mistake he can make. Borrowers are human beings and do understand that loan officers can make mistakes. Be honest with the borrower, explain to them what happened, and tell them that you will be working on a solution to get this hiccup corrected. If everyone is on the same page, the problem will get resolved and the deal can close. The home closing may need to get extended, however, if the loan officer can talk to the buyers attorneys, sellers attorneys, as well as the buyers realtors and sellers realtors, they should understand. If they need to, they should even speak with the sellers. I will write about Avoiding Bad Mortgage Reviews Solutions on the next blog article which will be a continuation of this mortgage article in solving problem situations where the loan officer did not qualify the borrower correctly and go into greater detail. Stay tuned.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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