My clients found my help to be a “huge blessing”! http://ow.ly/i/Fdbpw
Are you overwhelmed by how to research and find a good lender or how to compare the rates and fees?
Confused by what the broker says?
Wondering if your quote is competitive or who to trust?
I’m the Mortgage Fee Coach. I help you, the borrower, find the best quality lender and the lowest rates & fees.
If you have a quote(s) from a lender(s), I help you compare it with other lenders.
Don’t have a lender? I provide suggestions.
If I find you a better quote, than I will provide the lender information.
I only get paid when I save you money and I receive nothing from any lender!
My average client has saved over $10,000 because I helped them either negotiate a better rate and fees with their current lender or directed them to a better lender.
You will have peace of mind that you received the best possible loan.
Call now to learn how I can save you $$$$, 949-484-6322
(Copyright 2013 Mortgage Fee Coach, Inc. All rights reserved. This posting or any portion hereof may not be reprinted, sold or redistributed without the written consent of Dan Stone).
Are you overwhelmed by the loan process? Wondering who to trust? Confused how to find the lowest mortgage rates and fees? Unsure how to compare it all? Would you like a personal shopper to do it all for you, at virtually no cost?
Watch this video to learn more about how I can save you $1,000’s, which includes a clients’ “priceless” testimonial experience.
I compare many different lenders rates and fees for you. I help you shop for the best deal between many types of lenders. I also research the quality of each lender and loan officer, their Better Business Bureau rating and many other social media websites for you. Having 24 years experience in mortgage banking, I provide the information in a simple and easy to understand format so you can make a better informed decisions about which lender to apply for a loan. Best of all, I only get paid by you when I save you $. I saved a recent client over $1,800 more than the lender they were going to choose. Call now for a free consultation and I’ll show you how.
Description of Mortgage Fee Coach services:
– helping borrowers compare & negotiating lower rates and fees on home mortgage loans
– compare the quality of mortgage lenders
– client testimonial, saved them over $1,800 on their loan
– providing clients peace of mind through the process by an impartial mortgage professional
– services are virtually free, because I’m paid 20% commission on the amount I save you. If I don’t save you $$$$, then there is no cost to you.
New borrowers considering buying a home should be preparing years in advance. This 6 step process can save you $1,000’s, educate you on the types of loans and better prepare you for this extremely complicated process.
- Credit Score. See my blog post Sept. 26 “How to improve your credit score: Simple payment trick” and Oct. 16, “How to save 100’s to $1,000’s, 11 tips to manage your credit score”. You can do all this for free over months and years to improve your credit score, saving you $1,000’s in fees and improving your odds of becoming approved.
- Budget. Owning a home can be expensive and complicated, if you are not prepared. Keep it simple by having a budget and sticking to it, so you can save for the down payment, be prepared and afford the costs of a home. You will be glad you did so.
- Find a mortgage lender. You might think it is too early, but I suggest researching and finding the right lender now, years in advance. By finding the right lender, they can inform you of many loan programs which provide down payment assistance, lower down payment requirements, how to document your self employed income, down payment gifts from family, etc. This is my area of expertise and where I can save you $1,000’s in fees or rate.
- Down payment. Are you going to get a portion of your down payment from friends or family? If so, many lenders require the down payment to be seasoned, i.e. in your bank account for 6 months or more.
- Down payment assistance. Do you qualify for a program which helps borrowers with the down payment, such as a bond program or program offered by county, state, federal banks? For instance, some banks are offering a First-time Homebuyers down payment assistance program, providing up to $10,000. California has their own down payment assistance programs. Find a lender that has experience funding these loans, if the program is right for you.
- Loan programs. Get acquainted with the loan programs. If you research various programs, you may find that you don’t need to save as much money as you thought and could buy a home sooner than expected.
Mortgage lending is extremely complicated. That is why I started my business, to help borrowers navigate the process, find the right lender, compare and negotiate the best loan for them. I’m not a lender and do not offer loans, but direct borrowers to quality lenders. I’m paid by the borrower to help them reduce their costs as much as possible, looking out for their best interests and providing peace-of-mind through the process. If I don’t reduce your costs, I don’t get paid. My average customer has saved over $7,000 on their loan.
If you are considering buying a home and are not paying cash as many investors or foreign buyers are doing lately, it helps to level the playing field. Nowadays, sellers are deciding quickly on which offers to consider. If you have a pre-approval attached to your offer, it is much more likely to be considered. Follow these 6 steps to improve your chances of buying your dream home.
Begin by preparing your information. Gather statements of current income, including last 2 months of paystubs, last personal federal tax return, W2’s, 2 months bank statements for all borrowers and assets information. Also gather your employment history, usually last 2 years of consistent employment. If self-employed, be prepared to prove your income and projected income sustainability.
Do you know your credit score? Maybe you think you do by accessing your free annual credit report, but those reports are not the same as reports accessed by banks & lenders. For now, I suggest requesting each borrowers free annual credit report, as it is better to know any credit score and potential derogatory information. Begin resolving issues ASAP & look at my blog post How to save $100’s to $1,000’s: 11 tips to manage your credit score.
Research many lenders, click here for my blog post. Do you know the loan program you need? Did you know there are many down-payment assistance programs to help 1st time homebuyers? Cities and states also offer down-payment and assistance programs. Do these lenders have experience with these programs? Find a lender that has the program that best fits your needs. I suggest asking an impartial person, such as the Mortgage Fee Coach, if the lender is right for you. This is one of the areas I bring the most value.
After finding the right lenders, request rate and fee quotes from each of them. You will be surprised at home much their rates and fees differ. If using the Mortgage Fee Coach services, rates and fees will be compared for you in an plain format, so the least expensive option is clear. The Mortgage Fee Coach will clearly save you money in this area.
After finding the best lender, complete an application, provide copies of the required documentation, and keep the originals. Ask how long they require for pre-approval?
Be aware, due to the new government regulations, you will have to prove beyond a reasonable doubt that you have the ability to repay the loan. The underwriter will review all the information, including verifying current income and historical income from two years of consistent past employment.
Keep in contact with the lender every 3-4 days, until your loan is approved. The Loan Officer should help you feel at ease and the process is moving forward timely. They may also need additional information. Provide it as quickly as possible.
- Become pre-approved for the mortgage loan. Know the maximum loan amount for which you qualify. Pre-approvals may be valid up to 120 days, but the lender may ask for updated paystubs and other information after 60-90 days.
Finally, take the time to build a quality relationship with your lender as early in the process as possible. The earlier you start the loan approval process, build the down payment and cash reserves, resolve credit issues and document required income, the sooner you will be able to buy your home and live the American Dream.
Most lenders do not expect you to shop around for quotes. They plan to persuade you to stay with them, because you trust them. Or, if a realtor referred you to a lender, the realtor expects you to trust they know and trust the lender, so you should too. Shouldn’t you always shop around, so you can make sure you are receiving the best deal possible. But, comparing quotes is very difficult and time consuming, since every lender seems to have different fees, rates and quoting styles. Bottom line, the lenders don’t tell you to request the quote on the same day and time. Normally lenders do not change their daily pricing unless the market changes by .125% – .25%. But, because rates move minute by minute, you should request quotes from all the lenders on the same day and all within approximately 1 hour of each other. So, you can make sure you are comparing rates, points, fees and payments on a level playing field.
Every lender promotes they have the best rates possible. Shocker!! But, there are always differences. A client of mine was refinancing, called his current lender, only to find out their quote was .50% higher than the lender I suggested. How can that be? Here are a few simple steps to follow:
- Be prepared. Gather your information ahead of time, such as loan amount, property value, term, etc.
- Go online to request your credit score at http://www.freecreditreport.com/ I suggest paying $1, which will include your credit score.
- Find 3 lenders you trust, …well think you might trust the most. My belief is you don’t know who you can trust until you meet them and get to know them. A salesman is ……well, you know, salesman. They are best at selling you things. So, research them first. See my blog researching lenders.
- Should you use online lenders? Only if you are willing to give-up personalized service for price.
- Should you use a friends referral? I suggest always requesting a quote from a friend, but always compare it to several other lenders. Just because your friend trusted them, doesn’t mean they received competitive pricing or that you will receive competitive pricing.
- Request quotes on the same day and time. Rates change by the minute. This is very important.
Now the challenge is to compare rates, fees, points & payments. Do you know what is negotiable? Most lenders don’t explain this either. Do you trust your lender to look out for your best interests? It is a profit transaction for them. This is what I do, and the most important step. Every lender charges different fees in different ways. I also know very trustworthy lenders that I have worked with for many years. One of the reasons my suggested lenders can offer better pricing is because they do not have to advertise for my leads, saving them $1,000s. In addition, they know my clients are extremely well educated in the loan process, because I look out for their best interests. If you have questions, contact me.
Applying for a loan? Since you will be providing your extremely sensitive personal and business information to an individual and company, it is imperative that you take time to research and compare companies. In addition, will they follow through to provide the advertised radio or TV offer? How well do you know or trust them? By spending approximately 15-20 minutes, you may save yourself significant heartache and money through the process. Like any industry, there are good and bad apples, so looking into their history and track record can indicate the kind of experience you may have. Would you want to use a lender that received 83 complaints at the Better Business Bureau in the last year? Below is a simple step by step process that can help you research and compare lenders to better ensure your deal is the best one for you.
Company or bank name:
Contact email address:
Contact phone(Office / Cell):
- Is the company licensed to perform mortgage banking? Check this website: http://www.corp.ca.gov/fsd/licensees/
- Has the company been in mortgage banking for 10+ years? I prefer to use a company that began business before the “Great Recession” and conducted their business in a way that avoided many of the pitfalls, such as accusations of fraud or poor management.
- Is the company website professional, provide information about loans and processes, and lists owners and loan officers? I prefer unique websites that lenders have taken time and effort to create, versus a canned website used by many smaller and more expensive lenders. I also prefer a company that is willing to display staff and owners pictures and experience, which allows me to research their longevity in the business.
Does the company website provide client testimonials? I prefer to review a long history of very happy and satisfied customers that are willing to write anything from a quick comment to lengthy statement.
a. Was the testimonial written recently?
b. Does it provide detailed reasons why they like the company so much?
- Does the loan officer and lender have a mortgage license?
Is the company accredited by the Better Business Bureau? http://www.la.bbb.org/Home.aspx
a. Is their rating A or better? I prefer an A+ rating.
b. How long has the company been in business?
b. Are there any unresolved complaints?
Does the loan officer and company have a LinkedIn profile? http://www.linkedin.com/
a. Do they both have 5+ years loan officer and business experience? I prefer to have a very experienced loan officer and company any unusual situations happen which might delay the loan process. Problem solving experience really pays off in this area.
b. Is their profile professional, detailed and have 200+ connections?
b. Do they have recommendations from subordinates, fellow managers, supervisors or clients? Recommendations go a long way with me, especially over the years.
Google search the internet for client comments about the lender from:
a. Consumer Affairs: http://www.consumeraffairs.com/
c. Credit Karma reviews: http://reviews.creditkarma.com/mortgages/1/ Any red flags?
What are the reviews in their Yelp profile? http://yelp.com
a. Do they have a 4 or 5 star rating? Four out of 5 stars is good for me.
b. Are there recent reviews?
c. Is the loan officer listed in the reviews and comments? Positive or negative experience?
d. Read the “Filtered” reviews as well, at the bottom of the rest of the reviews. Even though these do not get in the primary viewing area, they could be very informative.
d. Did many reviewers find the reviews helpful?
- Is the company donating to charities in the local community and nationally? 83% of the population want to use companies that are giving back to their communities or charities. I will utilize a company that is giving to charities over one that is not.
Does the company website providing free educational tips? I like to see companies willing to provide free information to help the general population.
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Example: I researched a local lender that a financial planner recommended for my client. The lender was recommended because he happened to be in the building, not because he had done a loan through him. That is red flag #1. I researched the lender to find out: the lender had been licensed for 5+ years, but the company had only been in existence for 2 years. Red flag #2. I wonder about lenders that recently started their business. Were they employed by a previous, potentially unscrupulous, lender that possibly committed fraud or bad business practices? When the lender provided a rate and fee quote, they did not include the appraisal fee. Red flag #3. Mistake or not, they may have been trying to make their quote look better than the competition. Either way, it was an error, and I prefer not to use lenders that create errors at the beginning of my loan. In addition, their website had no client testimonials or details about the owners, managers or loan officers. Red flag #4. After concluding my research, their fees were over $700 higher than the lender I found for my client. Ultimately I did not feel I could trust them. All of this is extremely important when providing your financial information.The lender I chose had the following:
Munzing Mortgage Group
Mike Munzing, Mike@MikeMunzing.com, 949-689-5626
616 – #I S. El Camino Real, San Clemente, CA 92672
- Mike has 24+ years mortgage experience.
- Website is very unique and professional, providing more information than you would ever need. http://www.mikemunzing.com/
- Testimonials are on the left, 2/3 of the way down. Although nothing recently, the clients provide various positive comments.
- Yes, CA DRE Broker Lic. #: 00890921 * NMLS #: 329629
- No, he is not accredited, but he has no complaints filed against him in the 20+ years of business.
- Yes, with 500+ contacts and many recommendations.
- In 3 pages of searching through Google, I could not find anything negative.
- No search results found. Zero negative comments is great.
- His charities are political causes to improve the world.
- Yes, more times than you will ever need.
- Mike has 24+ years mortgage experience.
Years ago, I worked directly with Mike and found him to be highly experienced, ethical, devoted and resourceful in all aspects of his life. That is who I want to do business.
Credit scores have become one of the most important factors in today’s financial environment. Credit impacts: the amount you can borrow; if businesses will lend you money; how much it will cost you to borrow that money; the cost of homeowners and car insurance; and it may even affect your ability to become employed. For example, in conventional mortgage lending, these fees may range from 0 to 3.25% of the loan amount. So, for a $200,000 loan amount at 3.25%, the fee would be $6,500. Good credit means freedom to choose lenders, lower fees, multiple credit card offers and lower insurance rates and fees. Maintaining your credit rating is also very important. If your credit score drops, businesses may increase fees or close credit lines. Either way, everyone should be spending time using the techniques below to manage their credit.
Ways to manage your credit score:
- Pay all bills on time and before the due date. The best way to consistently help your credit score is to pay all your bills on time. Paying bills, such as utilities, credit cards, etc. by the due date may be difficult, but it is extremely important and is a great indicator that other more important credit payments will be made on-time. Cash flow can be challenging, but planning ahead and setting aside money to pay the bills will help you manage this and avoid costly late payment fees and finance charges.
- Keep balances low by paying off as much of the balance as possible. The second best way to improve your credit rating is to keep balances low compared to the credit limit, also known as your utilization rate. In general, if your monthly balance is 30% or less of the limit, it looks more favorable to the credit agencies.
- Keep old unused credit accounts open, if they have a positive history. This decreases the utilization rate, also known as balance to limit ratio. Even though you may not be using the account(s), holding it open keeps your credit score higher.
- Multiple credit cards with balances is good. Contrary to belief, people with high credit scores are not debt-free. But, they manage their accounts responsibly, even if they have had mistakes at times. Per a recent FICO report, “they hold an average of seven credit cards, four with balances. The average account is 11 years old, the oldest credit account on file was opened an average of 25 years prior, and the most recent credit account is an average of 28 months old. Some 58% of high achievers did not open an account in the prior year, and 26% opened only one new account.”
- SPECIAL TRICK – Paying off as much of the balance before the statement closing date. If possible, five days before each credit card closing date, payoff as much of the balance as possible. When the balance is reported to the three credit agencies(Experian, Transunion and Equifax), it will be lower than the amount you actually spent and thereby lowering the utilization rate.
- Request a current credit report and dispute inaccurate information. It may take months for items to be removed from the report, so immediately dispute, keep meticulous notes and keep checking to confirm it was removed. It may be worthwhile to pay for a new credit report every couple months in this case.
- Avoid applying for credit too often. If you plan to buy a car or home, multiple inquiries in a 30 day period will be counted as 1 inquiry by the credit bureaus. Each time you apply for a credit card or loan, the creditor requests a current report from one of many reporting companies. They then review your credit score, payment history, balances, etc. These inquiries remain on your report for up to two years, the credit score will probably be lower, will look damaging for the first year, and alert potential lenders of possible lending risks, whether it exists or not. After you have purchased your home or bought a car, at a time when a drop in your credit score matters less, then apply for a new credit card(s). Or, apply for new credit after 6 months, so as not to adversely impact your score.
- Explore all options and resources before bankruptcy or foreclosure. These are devastating to your credit score. Reach out to creditors to negotiate better rates or terms or ask for temporary reduced payments or loan modification, etc.
- Pay by cash, debit card or check when possible. Even though you have credit cards and other loans, it looks much better to the credit bureaus and lenders if you do not need to use them.
- Getting married? Since the divorce rate is 50%+, you might consider adding your spouse as an authorized user or as an additional cardholder. If you separate or get a divorce, it will be easier to remove the spouse, without requiring to close the account and keeping your score higher.
- Be careful co-signing on a loan. Avoid co-signing on another person’s loan, as it may lead to missed payments or default. Lending money to relatives can be very risky. Unless you are prepared to help make the payments if the primary borrower can’t, then be very careful.
Managing your credit takes time and effort, but the rewards are lower expense and financial freedom.
According to Experian, one of the three credit reporting agencies, “your utilization rate is the second most important factor in credit scores.” Most people do not realize this, as it is often not discussed or explained. Putting this in simple terms, the utilization rate is the amount of credit used (current charges & previous balance) divided by the credit limit. If you payoff as much of the balance as possible before the credit card statement closing date, a lower balance is reported to the credit agencies (Experian, Transunion and Equifax) and the utilization rate is lower. Please note, the closing date is different from the payment due date and can typically be found on the first page of the monthly statement or within the online statement. In general, if your monthly balance is 30% of the limit or less, it looks better to the credit agencies and will thereby increase your credit score over time. To send the payment earlier may be difficult at first, as requires good cash management and takes a little more time to review and send the payment, but when it becomes a habit the rewards are great. Other benefits:
- It may allow you to qualify for a higher home loan payment because your debt-to-income (DTI) ratio is lower.
- If you raise your credit score by 20-40 points, it may mean $1,000’s in savings on your next home, car, boat or RV loan.
- It may be the difference of being approved or denied on your next loan. In today’s lending environment, the average minimum credit score required to become approved is higher than it has ever been.
For example, on one of my credit cards I purchased $924 worth of clothes and food from 9/1/12 to 9/25/12. My credit limit is $1,500 and closing date is the 2nd of every month. On 9/27, five days before the credit cards closing date, I accessed my account online and electronically paid $700, which is to be received and applied by the credit card company closing date of 10/2. So, my balance was $224 and utilization rate 224/1500 = 14.9% when it was reported to the three credit agencies and much lower than what I actually charged for the month.
If you take control of the factors that impact your credit score, you will better control your score and the fees that lenders can charge.
Industry quotes. According to:
Transunion: “Outstanding debt: High balances in relation to your credit limits can lower your credit score. Aim for balances under 35%.”
Experian: “Your utilization rate is the second most important factor in credit scores. Also called your balance-to-limit ratio, your utilization rate is the ratio of your total balances compared to your total credit limits.” “Work on reducing your debt so that you’re utilization rate is under 30% on all your revolving credit accounts.”
Equifax: “The amount you owe accounts for 30 percent of your score, and so you want more available credit than debt.”
Per Bankrate.com, “scores of 620 or lower usually place a borrower in the “subprime” category, and they can expect to be quoted significantly higher interest rates and may be offered fewer varieties of loans.”
Per the LATimes article, “How about the profiles of people who applied for conventional loans to buy a house but were rejected or didn’t get to closing? By historical standards, they were a fairly impressive group on average as well, with 732 FICO scores, 19% down payments and debt-to-income ratios of 24% (housing costs) and 41% (total debt). ”