Tag Archives: mortgage bankers

Your Bank Says You Don’t Qualify for a Mortgage Loan. Now What?

denied mortgage loanWhen it comes to getting mortgage loan approval, most people don’t realize that there are two types of lenders: Those who say “You don’t qualify.” And those who say “You don’t qualify – yet.”

“That really is true, and there are a few reasons for it,” according to Rick Piette, owner of Premier Mortgage Lending based in Las Vegas. “In our experience – and we’ve had a lot of it over the years in Southern Nevada – it not only depends on the kind of lender you go to, but also how committed they are to you, your loan, and your personal situation.”

One of the main reasons that borrowers may run into the “You don’t qualify” type of lender is because they chose a bank or mortgage banker to apply for their loan. According to Piette, because these lenders only sell their own loan products – if a buyer doesn’t qualify under their specific guidelines, there simply are no other options.

“But with a mortgage broker like Premier, there are many other home loan opportunities to explore,” he explains. “The reason for that is that with a broker, a buyer still only fills out one loan application – but the broker can use that single loan app to shop around with many lenders – and find the best fit for each client.

“The truth is, not everyone’s employment or financial history will fit into the stricter guidelines of a bank’s loan requirements. But that doesn’t have to mean a ‘thumbs-down’ to getting a mortgage loan. Many other lenders have programs designed just for buyers with unique situations. That’s where a mortgage broker’s connections can make all the difference – by knowing the different loans that are on the market what options are available for their customers.”

As Piette explains, “It may take some creative thinking to find alternatives if the first path doesn’t work out, but that’s one of the reasons Premier Mortgage is so good at what we do. We’ll keep at it until a solution is found – so if a client doesn’t get loan approval the first time, that doesn’t mean it’s the end of the road.

“Our loan officers will work with a client often for as long as it takes. That could mean finding a different loan, working with them over time to help them raise their credit score, or helping to provide tips on exactly how to change their financial situation to that it will fit into a specific loan’s parameters.

“We’ve worked with thousands of homebuyers in Southern Nevada, and we’re proud that we can offer the best rates and no costs with our “No Fee” loan. But we also created our “Another Chance Nevada” loan program to help those who have a foreclosure in their history – or even if they just closed on a short sale yesterday. But there are also many home loan options that lie between those two extremes, and Premier Mortgage Lending helps borrowers find the one that works best for them.”

The important thing to remember is that Premier Mortgage isn’t big on saying just “no.” “We know the mortgage business better than that,” Piette adds. “And in our experience, there’s almost always a way to help a customer get into a home of their own.”

For those looking to purchase a home in Southern Nevada, get additional information about Premier’s “Another Chance Nevada” financing program by visiting their website at www.AnotherChanceNevada.com. Or, to schedule an appointment to discuss what mortgage loan options are available for your personal situation, call (702) 485-6600, or apply online at www.premiermortgagelending.com.

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas, Henderson, and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

The Source of Real “No-Fee” Loans? It’s Your Mortgage Broker.

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Shopping around for a new home loan? First of all – congratulations! We’re happy to know our advice to consider a home purchase is catching on.

Second, we’re aware that this could possibly be the very moment when you’re the most confused about all the advertising you’re noticing now from mortgage lenders. It seems everywhere you look, the words “no-cost mortgage” or “no-fee mortgage” catch your attention, and that has a really appealing ring to it. So initially, you might ask yourself, “That’s what all lenders are saying – so they must all offer the same loans, right?”

“But that’s wrong,” reveals Rick Piette, owner of locally-owned Premier Mortgage Lending in Las Vegas.

“Like most things that can sound too good to be true, this would be one of them,” Piette continues. “The truth is that many mortgage lenders make it a point to confuse this very issue – precisely to make people assume it doesn’t matter what type of lender they choose. But the reality is there’s a very big difference, and it all has to do with the regulations that govern each type of lending institution: There’s one set of rules that applies to Banks and Mortgage Bankers . . . and another set that applies to Mortgage Brokers. And the key difference is this: Full disclosure to the customer.”

Here’s how it works:

Banks and Mortgage Bankers may say they offer “no-cost mortgage” loans. And that’s just what you’re looking for, right? A way to save that extra 3%-5% of costs (which can be several thousand dollars) for Loan Origination, Processing, Underwriting, and Document Preparation Fees.

“However,” reveals Piette, “while they may be charging you nothing for those fees on your Loan Estimate, they aren’t required to disclose to you that they very probably are trading out those fees to charge you a higher interest rate, instead. What’s worse, by paying a higher interest rate over the life of your loan, it can end up costing you a lot more money than those fees would have been to begin with.

“In other words, Banks and Mortgage Bankers are allowed to present you with the illusion of paying no fees, but make no mistake – they’re not reducing the profit they’re making on your mortgage loan. They’re simply shuffling the numbers so it sounds good to you – but in the long run it can actually end up costing a borrower more money, rather than less.”

Mortgage Brokers, though, have to operate under a different set of rules:

• First, the amount of money they can make on a mortgage loan is capped by law.

• Second, they can only earn income on a mortgage loan from one source.

• Third, they are required to disclose the source and total amount they earn on the loan to the borrower.

“These might seem like three simple statements,” adds Rick Piette, “but together they make a huge difference when it comes to what the customer will actually end up paying for the mortgage loan they choose.

“How? Because when a Mortgage Broker’s Loan Estimate shows $0 in loan fees – there really are NO FEES. Borrowers actually save that money – because the Broker isn’t making up for that “great deal” by charging you more somewhere else in your loan documents. They can’t. It’s the law. Which is finally (in our opinion) – working on the side of the consumer.

“That’s why we encourage every person who is looking for a home loan to always go to at least two different lenders – and compare those Loan Estimates. (And one of them should be a Mortgage Broker.) All you need to do is compare the cost of the fees and the interest rate – and your choice is usually very simple to make,” Piette confirms. “It’s the one that costs you a lot less money!”

For more information about how to shop wisely for your next mortgage loan – and potentially to save literally thousands of dollars – visit Premier’s “Know Before You Owe Nevada” website to view the quick and informative educational videos that will put you in charge of the cost of your next mortgage loan.

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas, Henderson, and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

A Quick Review of Home Loans 101

Or, How I Learned To Shop Around For A Loan And Saved Thousands of Dollars

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Over the past several weeks, our articles have focused on many of the “consumer education” resources that are available to borrowers – both through the Consumer Financial Protection Bureau (CFPB) website and our own KnowBeforeYouOweNevada.com website.

As the CFPB prepares to roll out one of the most important recent changes to the mortgage loan process soon (TILA-RESPA on October 3, 2015), it seemed like a good time to review what we believe are the positive effects of new legislation and the role of the CFPB in the mortgage industry. Ready for a little Q&A? Great – let’s get started!

1. “Is the Dodd-Frank Act really a good thing for consumers?”

Definitely good. As we explained in greater detail in a previous article, one positive result for consumers is that it places a ‘cap’ on how much a Mortgage Broker can earn on your loan. It’s a fee that cannot be inflated – it is paid by the lender directly to the Mortgage Broker – and most importantly – it must be disclosed to the borrower. Basically, it places the control over the cost of the loan into the consumer’s hands (A good thing, right?). It’s important to note, however, that these same restrictions don’t apply to banks or mortgage bankers , who have no limits on the amount they can earn from your loan. So beware of those ‘invisible fees’ that they don’t have to tell you about – but end up costing you more in the long run.

2. “One mortgage lender is the same as another, right?”

Wrong! We mentioned above just one of the differences between types of lenders (banks, mortgage bankers, and mortgage brokers), and in a recent article we clarified those differences in detail. The short version is that a mortgage broker offers better value to consumers because:

• You only fill out one loan application – and they can shop numerous lenders on your behalf to find the lower rate and best loan program.

• There’s a limit to how much a mortgage broker can earn – not so with bank or mortgage bankers.

• Mortgage brokers are typically small, local companies with low operating overhead. That means less cost to you.

3. “Does every lender have to disclose how much they’re earning on my loan?”

Nope. Once again, the rules are different for mortgage brokers vs. banks and mortgage bankers. (Are you noticing a trend here?) Just like they say in the movies, “Follow the money.” One way to discover if a lender has ‘invisible charges’ in your loan is to compare the Loan Estimate sheet. (The CFPB has many helpful resources for consumers, including a form to help you compare your loan estimates in an apples-to-apples format, here.) Pay particular attention to the interest rate, the Loan Origination Fee, the Document Prep Fee, and the Document Fee. It can mean a savings to the consumer of literally thousands of dollars. (Not all lenders are the same!)

4. “How can I tell if a Builder or Seller incentive is a good deal?”

Compare the numbers. Often, those “credits towards closing costs” offers come with strings attached, as we explained in a recent post. And those strings can end up costing you more than you expect. You “have” to use their lender or title company to get that credit? Then you’re probably going to end up paying for it in higher interest rates or unnecessary fees. The best way to protect yourself financially is to contact more than one mortgage lender – then run the numbers.

5. “What should I do if my Realtor is encouraging me to contact only their lender?”

At the very least, question their allegiance. By law, it’s supposed to be to you – their client. But as we explain in our recent video about Marketing Services Agreements (MSAs), there’s usually a reason that a Real Estate Broker will strongly encourage you to use their lender – and it can often end up being at your expense. While even the CFPB is encouraging mortgage lenders to end the practice of MSAs, they’re still prevalent in the industry. Yet one more reason every consumer should shop with more than one lender to get the best mortgage.

To learn more about any of these topics, we encourage you to visit KnowBeforeYouOweNevada.com to find out which questions you should be asking your real estate professional and your mortgage lender. If they can’t compare – dollar-for-dollar – to Premier Mortgage Lending’s “No Fee Mortgage,” then we should talk about how we can save you money. Oodles of it.

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

Trends Converge Illustrating Home Ownership Is On The Rise

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It’s not uncommon to find conflicting stories about current trends in the U.S. that pertain to the status quo of home ownership. Since the housing market collapse in 2008, it’s as if everyone suddenly acquired their own ‘crystal ball’ – claiming to know when, or how or where to make your next move into real estate.

But now, enough time has passed to allow us to view things in perspective. Actual data replaces “best guesses” and reveals real economic, geographic, and demographic statistics as they affect (and reflect) the state of the U.S. housing market. Plus, studies conducted by industry leaders have been implemented and tracked over time to help us determine how best to serve the homebuyers of the future.

Right now, there are several trends that indicate our industry is on the verge of a new upswing, for several different reasons.

Home Sales in 2015 Expected To Be At Highest Point Since 2006 This growth projection by the National Association of Realtors is driven by the combination of strong job growth, low interest rates and a gradual loosening of lending standards. Early results this year indicate that buyers who have been kept out of the market by those restrictions are beginning to return, and it is anticipated that 2015 will be the first time since 2008 that single-family home starts will exceed apartment starts.

Did you know? In most markets, the cost of renting is roughly twice the cost of owning a home. In reality – people have to live somewhere – whether they own their residence or not. And many are now realizing that it just makes more financial sense to buy than to keep renting.

The Future Plans For Most Millennials Include Home Ownership. Millennials, or “Generation Y” – whatever the popular term you use to describe them (maybe it’s even “son” or “daughter” in your case), they’re big numbers in our society. Approximately 80 million in the U.S. alone meet this demographic description, generally acknowledged to be those between 19-36 years of age today. And according to a recent study by the Urban Land Institute, this group is poised to begin moving into the home buyer’s market in droves – an estimated 70% are planning to do so within the next 5 years. And that’s a whole bunch of first-time homebuyers entering the marketplace.

Department of Commerce data shows that in 2014, more millennials moved from the city to the suburbs, a significant change for a trend that has historically operated in reverse. And this is a generation that faced a host of new challenges: mounting student debt, stricter mortgage qualification standards, and until the past year, weak job and wage growth. It’s becoming clear that these hurdles may delay the step, but ultimately, they want to own homes of their own for reasons that will sound very familiar: marriage, starting families of their own, or even simply this: “I want a yard.”

Financial Regulations Continue To Evolve In Favor of Consumers. As we have reported before, the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act has brought sweeping changes to the home mortgage industry – and additional regulations continue to go into effect as the calendar progresses. In addition to laws that now limit the fees able to be collected from buyers by mortgage brokers (although the same does not apply to banks or mortgage bankers) – this fall is scheduled to see new rules go into in effect with regard to documentation, Good Faith Estimates, and advance disclosures prior to close of escrow regarding your mortgage loan’s terms (translation: No more surprises for consumers.)

Buyers Have More – and More Affordable Options – For Home Mortgages. Gone are the days when banks and mortgage bankers held all the cards for buyers when it came to obtaining a home loan. In the lending industry – as in every other area of consumer spending today – buyers are more in control of their mortgage destiny than ever before. Shopping for the best interest rates and the lowest costs for a new loan can yield tremendous savings for home buyers that still comes as a shock to many (the ones that are used to ‘the old ways’). One example: Premier Mortgage’s clients literally save thousands of dollars in cash-out-of-pocket at close of escrow using our popular “No Fee Loans.” “The ability for consumers to close a home loan and pay absolutely no lender fees is a huge plus for homebuyers,” says Rick Piette, owner of Premier Mortgage Lending.

These are just a few of the recent reports hitting the newsstands these days, and taken collectively, it all points to the fact that for consumers, the “home buying playing field” is finally leveling off. That just might make now the best time in a long time to plan on moving into a home of your own.

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.