I know there are a lot of factors that go into this whole process, but generally, how long of a time period are we looking at to close a loan?
Kimber: If you go with the big bank and with a lender, the average process is sixty to ninety days. If you go with a market brokerage company such as our company, we can close as little as two weeks. If the paperwork is together. The average turnaround time in a loan process closing with a good broker is three weeks, as long as everything’s in place. If there are no title issues. No one can close a loan under seven days, because there’s a seven business day waiting period from the time a loan is submitted to the time that actually it is allowed to be closed under guidelines.
Let’s talk a little bit about credit blemishes. I know that’s a big factor in the approval process. Can you tell us how that factors into your loan approval?
Kimber: Your credit blemishes are based upon the type of loan you get. As I discussed, if you’re getting a conventional financed Fannie, Freddie loan, they usually don’t like to see anything late in the past twelve months. Either one of these don’t want a mortgage late in the past twelve months. Collection charges above a certain amount have to be paid off on a Fannie and Freddie loan. FHA is a little more lenient. If you have a late payment and it is a onetime thing, you can usually get it off. Medical collections do not have to be paid off.
For example, student loans under Fannie Mae, no matter whether they’re deferred or not, you have to count 5% of the payment. If you have student loans under FHA and they’re deferred for up to twelve months from the time it closes, then you don’t have to count that percentage at all. It all depends on the product.
The thing I have to bring that up about blemishes, as far as income, is that you may make $95,000, but because you travel or you have expenses and you write off another 15,000, the average consumer doesn’t realize that when they write off that 15,000, they’re going to have to qualify on it as if they made ninety because unreimbursed expenses factor into people qualifying for a mortgage.
What kind of research do you think the home buyer or homeowner should do on a broker before deciding if he or she is a good fit for them?
Kimber: I personally think number one, you can always Google the person. You ask your friends for referrals. That’s a big thing. The other thing is, if you’re going to a broker, if you’re going to a broker see if they a member of their local and national trade associations. They are held to a higher standard in your local and your national trade associations, plus they are more knowledgeable. I think that’s a big selling point. The National Association of Mortgage Professionals (NAMB) has an integrity seal of lending, which everyone has a chance to go through and there are standards they have to live up to be an integrity lender. At the same time, when you interview your person, ask. You need to ask for that to compare. You need to ask for a good faith estimate and compare that with what other people are offering you.
You can have a lot of people quoting you on the phone. You need to make sure you have everything in writing. Internet? Remember the internet is not local. It’s not face-to-face. It’s not the people in your area. It’s not someone you know. The best thing is referrals.
Word of mouth really counts for a lot, the experiences that your friends and family members and relatives have had. That’s usually one of the most reliable sources I would imagine.
Kimber: You also can go to the NMLS website for consumers and look at that person’s name and see if they hold a license. You can go to the local state regulatory agency that governs that. Here we have Office of Financial Regulations here in Florida. You can look the person or company up. It will tell you about the license. It will tell you if it’s active, how long that person’s been active. How long that person’s been renewed in their business, all of that and MLS will tell you the same thing. It will also tell you if there’s any pending complaints on them. The last thing I’m going to say is I would also check with the Better Business Bureau. Has there been any complaints on that person? A big thing is integrity and consumer awareness.
Kimber, thank you for your time today.
Kimber: It was my pleasure.
Kimber White can be contacted directly at United American Mortgage by calling 954-306-3553.
More information on Kimber can also be found by visiting his LinkedIn profile at https://www.linkedin.com/pub/kimber-white/18/644/136
