Why Lie

Why lie when applying for a mortgage when you know you will be caught? I never understand why people always try to justify not telling you the truth. Recently we had a couple lie about nearly everything on their loan application. From their address to their income and employment. First they lied about their Continue reading

Altered Documents

The following is regarding ‘Altered Documents’ which hide the truth for those looking to take out a mortgage loan.

I know the consumer does not always know what happens throughout the loan process – from loan origination, the application to processing and eventually underwriting. At the time of application most loan originators assemble basic documents, from drivers license and social security cards to pay-stubs and bank statements. This first look at documents, most oftentimes, is only a quick glance over to get the basic information to fill in the loan application.

The processor is generally the person who is going to set up the file for the underwriter to review, accept and approve the loan. So, before sending the file to the underwriter a good processor is not only reviewing the items to ensure everything is there but also Continue reading

Initial Disclosures

Initial Disclosures

In the beginning being properly prepared can make of the difference between a good start and a shaky one. What do I am mean by this?

When a loan originator receives certain information, they are required to disclose to the borrower(s).  What is that information?

The industry uses the acronym, ALIENS. Continue reading

Approval or Commitment Letter

There are things out there that I hear all too often. Like, I was told to call you as I was screwed over by my last lender. So, the first thing that comes to my mind is here we go another person blaming someone else for their failures, but as I listen I also try to wonder is there that many bad lenders or loan originators out there?

Communication is right there at the top of the list for you the consumer right along with, Continue reading

But It’s Paid For

But, It’s Paid for doesn’t mean it’s free and clear. I remember my father always telling me, nothing is free, you will always owe someone or somebody something. Never think it’s all yours and its free. Free is the most missed used word that you will hear. So, watch out for those that say free.

Yes, I must have heard that with what seems like a million times from my father. Since then, every time I hear the word free I am always looking for that catch or gotcha, when and where is it going to come from, what did I miss?

I can tell you that I hear this from someone at least once a week, “It’s all mine, I own it free and clear”.  For me as a mortgage broker I am the one who always has to tell someone, no it’s not free and clear. This is a pretty common statement made by most who own any type of real estate without a mortgage loan. Every week it’s a different person but their response is always the same as the people before them. “But, it’s paid for I have no debt”

Some where along the way you paid for that property so it’s not free. It maybe clear of a mortgage loan but it’s not clear of debt. Every property owner has to pay taxes on their property, there is a tax bill attached to every property. We can also look at insurance on the property as a debt and if in a home-owners association we can add that HOA fee or Condo fee too.

No matter how you spin it, you will need to include any real estate owned into your debt to income ratios. Save yourself some time and money, provide all the information you have or can get about any type of real estate you own. It will all show up in the process and knowing it upfront can help a great deal on getting a very accurate pre-qualification letter.

Disclose everything, ask questions, get your facts, get properly prepared and we will see you at a happy closing table.


What A Deal

What A Deal

I enjoy remembering back in time to my childhood, although it wasn’t perfect there was no doubt I had a lot fun. I remember one time in kindergarten, Yes, I can actually remember and recall many events from my early years. The year was 1967 and in school just outside the door of our class room was the schools freezer was about 4x4x6 feet, in the freezer was popsicles, fudge-sicles and ice cream sandwiches, us kids could buy recess. Popsicles and fudge-sicles were 5 cents each and ice cream sandwiches were 10 cents each.

Depending how hard I worked around the house over the weekend was what determined what I got on Monday morning from my parents for school. A nickel or a dime. That was it I didn’t get anything the rest of the week. So if I work hard every Saturday and Sunday morning usually from 7am to noon time would determine how great of a treat I would get on Monday morning, the fudge-sicle or ice cream sandwich for me.

On one particular Monday morning when we got to school it was after a good weekend I had a dime in my pocket. Early before recess one of the teachers in the school noticed the freezer was broken and all the ice cream was going to melt and go bad. So after a short discussion with the principal it was determine to sell all the ice cream at 1 cent each to every kid. I thought what a deal. My mind drifted in to heavenly bliss. I thought fast and solved my biggest math problem of my life at that time. I would purchase five ice cream sandwiches today and save five cents for tomorrow. What a deal, I never had such a treat in my life, by the time I started to eat the forth ice cream sandwich it was melting all over my desk and my little stomach was blotted and over stuffed. My teacher had to throw the fifth one out in the trash. My heart was broken over the waste and the thought of it along with my aching belly took the joy of it all away.

A deal isn’t always what it looks like on the surface and sometimes we can get so emotional about a price we forget to do our due diligence properly. Last year I had a borrowers who put an offer in on a home with his Realtor. Both were excited about the price. They could believe the listing agent was selling this 1800 square foot home for more than $25,000 under market value. The home was only on the market for one day when they placed the offer in for full price to make sure they got the home.

They closed on the home and the buyer/borrowers renovated the home while living it and now nearly a year later want to seller it for a great profit. So they call their Realtor to price out the home for sale. The looks at their home and tells them what a great job they and that they should be able to get X number of dollars for their home. The Owners are very upset and here where everything comes to light. The Realtor explains that their home is only 1600 sqft not 1800 sqft.


What A Deal That Turned Out To Be

To make a long story short what happen was the original listing agent listed the home at X amount and 1800 sqft. The home appraised for that the sales amount and the appraiser had the home at 1600 sqft. In the appraisal. Both the buyer borrowers were so excited about the home and that the sales price was good in the appraisal they never looked at the details of the appraisal and missed what the appraiser had for square footage.

Here are a few points. Almost all Realtors never Continue reading



I don’t know why my brain went off in this direction, but maybe I watch the same old movies too often. Like many other people I do like the story and passion of William Wallace in the movie “Brave Heart”. In short, near the end when in the court the Magistrate says to Wallace “We find you guilty of treason against your King, ……………. Confess and you will be shown mercy for a quick death if not you will have to be cleansed of your sins.”

Well if the origin of mortgage is death, are we looking at the underwriters as magistrates from the movie? Confess all your debts, bankruptcies, foreclosures, loan modifications and short sales. Do not Continue reading

I Have No Debt

I Have No Debt

I remember growing up and having this conversation with my father when I was about 7 or 8 years old. I asked why do I have to do all this yard work and it’s Saturday? My father’s reply was simple, “you have to pay your bills”. I was baffled as I thought to myself I don’t have any bills. Which I replied and soon regretting my reply, I asked him what bills? Well, I am sure I don’t have to tell you how long I had to stand there getting that lecture about the roof over my head, the food on the table every day, and the warm water to bath in.

Today I am a father of three but yet I find myself having this same similar conversation with no only my kids but with adults my age nearly every week. Part of the pre-qualification process is asking people what does your month debt load look like. Continue reading

Desire of Homeownership

Desire of Homeownership

Desire has a funny face, some people have a strong desire to want something, like a toy, car or home while others want something different like control and power. Looking back,  how I grew up was quite different from my cousins who lived across the street from me and yet somewhat different from even my own brother who had the same parents living in the same home.

My parents each worked multiple jobs most of their lives. My mother worked in a factory and also cut hair 3 days or nights per week. While my father worked two or three jobs most often changing jobs ever few years out of frustration. He also complained about being capped on his abilities or pay while my mother worked at the same two jobs for over thirty years.

Thinking about my parents, it’s easy to look back now and see why my brother has worked at the same place for over 35 years. On the other hand, Continue reading