Tag: mortgage brokers
How To Become a Mortgage Broker
by admin on Jan.29, 2009, under Top Articles
Mortgage brokers average better than 1% commission on every transaction…so a conservative estimate is $18,159,492,790 to the mortgage industry in commissions last year. Eighteen billion is a lot of money to go around.
Consider a profession that doesn’t require any formal schooling yet offers a six-figure plus income potential to any broker who wants it.
Here’s how the business works…
A mortgage broker acts as the middle man between a borrower and a lender. The broker bridges the communication gap between the technical requirements of the lender and the non-technical demand of the borrower. And here’s the best part…mortgage brokers get a cut of every loan they close.
The upside for this profession is nearly unlimited. Once you’ve reached a high monthly income level from your mortgage commissions you can move into other areas of the business and make huge amounts of money.
Buying second mortgages, funding choice loans yourself and buying real estate investment properties are just a few examples of the opportunities for expansion that are available to successful mortgage brokers.
If you’re ambitious and want to become truely wealthy this industry will afford you every opportunity to do so.
The mortgage industry does, however, require that you master three important skills before it will reward you with success.
You have to be able to sell. This is ultimately a personal business. You will be dealing with people every day. Knowing how to relate to all kinds of people to make sure they are comfortable during an unfamiliar and very important process is vital. Sales skills are essential to your success as a mortgage broker.
Prior sales experience is helpful but not necessary. Regardless of your sales skill level you should commit to continuously learning everything you can about sales.
You have to understand loan processing.
Processing a loan is an exercise in navigating a bureaucracy. It takes patience and a different mindset than you need when you deal with your clients. Put in the effort to make the personal relationships with decision makers at your favorite lenders…it will pay off in concrete, financially measurable, ways.
The best way to establish yourself as a professional is thorough expert knowledge. Study the loan process from front to back and really learn the in’s and out’s of funding a loan. It will give you insight and perspective on the business that will enable you to offer better service, faster closings and a smoother process to your clients.
You have to use effective marketing.
Without effective marketing you won’t have any prospects to sell to. It’s the marketing that brings in prospects. Your mortgage business, indeed…all businesses, depend on it for their very survival.
But marketing can do much more for you than help you survive. If done carefully, methodically and scientifically, marketing can propel your mortgage business to levels of financial success you never dared imagine.
Effective marketing can build a mortgage business into a cash cow…sales and loan processing can’t. The greatest success in the mortgage business can be had the quickest by mastering the art and science of mortgage marketing.
This is a great industry. It offers all the opportunity you could ever want. True wealth awaits those who apply proven methods to their mortgage business. Add your knowledge more about mortgage refinance rates, home equity rates, 2nd Mortgage Rate, and Best Mortgage Rates. by Alexander
Get Your Home Loan Mortgage Approved
by admin on Jan.21, 2009, under Mortgage Advice - Choosen One
Why do some people get their home loan mortgages approved in a breeze while others struggle through with hiccups? What are the differentiating factors between one application and another? What do lenders look at when they evaluate you?
In reality, getting your home mortgage approved depends on how your background matches the list of criteria set forth by the lender. Although these rules that they have are not always entirely hard and fast, the loan application officer does not stray too far away the guidelines he or she has been entrusted with. Needless to say, applicants should at best present themselves as creditworthy creditors and have the adequate documented records as proof of this.
Believe or not, lenders have a scoring system for aspects of your background that they are evaluating. The following are areas in which you will be scrutinized on:
1. Employment History
You must have been in employment for not less than 2 consecutive years within the same industry. This shows that you have the capability to be sustained in a permanent position, and do not hop from one job to another. Lenders look for stability and consistency as best they can, and your employment history is a good basis for them to evaluate your capability to generate income to finance your mortgage.
2. Credit History
The next indicator of your credit-worthiness is your short-term debt, a.k.a. your credit card bills. It’s ok to have some debt on your credit card, but you must show a history of on-time payments. Apart from that, too much debt on credit cards with credit lines fully utilized shows the possible inability to pay for debt. Therefore, at least six months before applying for a loan, it would be best to clean up your short term debt as much as possible.
3. Outstanding Liabilities
The size of your income dictates the amount of liability you can support. As a rule of thumb, lenders stipulate that a person’s total monthly payments for liabilities should not exceed 42% of his or her monthly earnings. With this, total liabilities include credit card debt, car loans, student loans, existing mortgages or child support collectively. This means that in order to qualify for your home loan mortgage, you need to reduce your monthly repayments on liabilities to the point which is acceptable by the lender.
4. Cash and Asset Reserves
Another aspect to show that you can afford your home loan mortgage is to provide proof to the lender on the amount of cash and liquid assets that you possess. The minimum reserves that you have must be sufficient to pay at least 2 months of monthly repayments for mortgage payments. Some lenders even go to the extent of requiring 6 months worth of reserves in order to qualify.
5. Existing Housing Repayments
Finally, if you already have existing housing rental payments, there should not be any late repayments for these within the past 12 months. This again shows your priorities as a responsible tenant and is adequate proof to the lender that you potentially will be a responsible borrower as well.
Some applicants who may lack supporting documents for their home loan mortgage applications should compensate by providing documents that will help to prove themselves to be responsible pay masters. These could be payments receipts of utility bills, phone bills or even car insurance, which are useful documents to be used to prove that you are indeed creditworthy. Dont Miss this best collection : mortgage refinance rates, home equity rates, 2nd Mortgage Rate, Mortgage Rates Comparison, Mortgage Rates 30 year fixed, Home Loan Mortgage Rate, and A Personal Mortgage Experience. by Chris Edison
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