Salty

iTrader: (14)

Figure I’m a sponsor without my own forum so why not give some advice to those that deal with me or whomever else.

Do not feed me lines.

If you want me to help you it's better to not have me jump through hoops to beat rates I know to only exist in your head.

I deal with people all day long and went to one of the most notorious BS universities in the world; the US Army. I can and will read you like a clock.

I'm not here to haggle you out of your hard-earned money. I'm here to get you and your family into a home to the best of my ability -or- the best possbile rate in a refinance. Will I make money on you? Of course. But it will be very reasonable and justifiable in every respect.

Come to me with a clear mind and your hands rinsed of non-existent quotes from other lenders. Then I will be able to help you 110% better. If you did get some outrageous quote then it's probably too good to be true.


That is all.

Salty

iTrader: (14)

Lesson #2.

Don't think you know what you want without knowing what's available.

Let me explain...

Every so often you get a client that thinks he can get the same deal his buddy got. Or they get a firm idea in their head as to what they want without factoring common sense. Sometimes they can be so hard headed that they'll completely pass a bread and butter deal only to keep searching for a program that will never exist for their given situation.

For example, Joe got a refinance on his existing mortgage. Textbook deal. Great credit scores, double income with his spouse, nice LTV%, nice debt ratios etc. The deal is closed within 2 weeks and Joe walks away with a lower rate.

Then Joe's friend calls me with a recently released Bankruptcy (fine) but has managed to accumulate tons more credit card debt and somehow get his car repossessed. On top of this, he recently got a divorce and hasn't paid child support since it was finalized. His house is made of adobe and the foundation consists of 6' cinder block stilts on roller skates by the Sacramento river. And to top it all off he's between jobs.

Who do you think wins in this case?

So it's best to approach a mortgage broker with a generalized idea of what you want while being flexible.

Salty

iTrader: (14)

This brings me to lesson #3


A loan shark is pulling a fast one on you if he's quoting you a 3.95% interest rate without any origination fees, points, closing costs, junk fees etc. Someone has to be paying for that loan, right? It's certainly not going to be them. They put all their lies on a silver platter to get you interested in something they can't feasibly offer. Half of these yahoos don't even have their real estate license! They are allowed to process loans as a representative of the bank they work for. That's it! This is the only way they are legally allowed to touch a loan application.

Then this same person comes to me only to get completely scared off when I give them a real world quote. I'll quote them a bread and butter deal without ANY hidden fees at around 5.5% (just an example - don't read these examples and become Joe's friend from lesson #2 ).

But nope. They'd rather deal with the huge bank that only remembers them by account number. Forget about the sole professional that survives off business referrals from past satisfied clients.

Hey, whatever floats your boat! I'll see you soon enough when you come crying to me on how you got taken advantage of in escrow.

Chrisnonstop

Salty,...when I start thinking about refinancing I'll let you know...

Question: Where is the fastest growing realestate market in the bay area right now?
What areas would you avoid?

Right now I'm in a house in Discovery bay. I think I got in at a good time. There's not much out here except all the major home building centers (Home depot/lowes..ect.). However, there's something being built on EVERY available lot. It's crazy. I'm literally watching the city rise up around me.

Salty

iTrader: (14)

I'd have to say Oakland is the fastest right now. But the entire Bay Area is very strong too so that's up for debate. Whenever rates raise a tad the markets slows down a bit but remains constant for those that can still afford those rates. Mainly a lot of foreign investors on top of savvy investors and couples without children.

Reason I say that is because the percentage of children in SF and metropolitan parts of the Bay have always been low and are decreasing more and more. This is mainly due to the fact medium to larger families just can't afford to stay in the Bay Area anymore. But for every relocated family there is you have five people wanting to buy.

Also like to explain this thread. These are the problems I face as do many other brokers. If I'm coming off a bit strong it's only my personality. Just take it for what it's worth. Also, if you do decide to go with another lender (mainly those you see on television) I have no problems giving you my opinion on the quotes they have given you.

Salty

iTrader: (14)

I'll go ahead and tie this into lesson #4.

Why do I get a lot of these problems? I think it has a lot to do with the quotes these other lenders serve on silver platter as I mention in lesson #3.

Potential clients will call these conglomerate lenders first and ask "what are rates at today?" A very simple question, right? Then these lenders will deliver a simple answer on a shiny barbed hook. An answer that reels you in like big fish.

The problem with this question is that it's way too vague. How can I possibly give you an answer without knowing where you stand financially? You could be another one of Joe's friends for all I know.

I get this a lot and am currently dealing with this now.

For example, Joe is buying a $1,000,000 house in the Bay Area which will close in 30 days. He wants a loan program with a low rate, no points, no fees whatsoever, and able to cover the closing costs and other fees due at signing. We're talking A LOT of money here. Insurance on a $1million home for the impound account will go above $10,000 easily for 15months worth of reserves. We haven't even covered ALTA, CLTA and the closing costs I’d otherwise have to pay out of my pocket for what he wants to do.

Joe calls the conglomerate lender and asks if this is possible? The lender says absolutely! The lender wants to trap Joe into using him because he knows he has to close within 30days or he’s homeless. It's leverage over the borrower. But what's wrong with this picture? This conglomerate lender has not seen the purchase contract. For those of you that have purchased a home it clearly states who is paying what in order for the deal to close. This happens all the time!

So now Joe calls me and is very confused. "but they said they could do this without any problem." And I have to explain and convince Joe as to how they could possibly do this without knowing the details of the contract. I either convince Joe and gain his trust and business or loose him to the loan sharks. Hell, they don't even know Joe's credit scores yet!

dr3d1zzl3

iTrader: (1)

i stickied it because i can relate

HellaDumb

iTrader: (3)

Hopefully I'm not taking away posting in this thread with the name "helladumb."

Salty did my refi a few months back and was always helpful and knowledgeable about different financing options. My wife originally wanted to go directly to a large firm like Wells Fargo because of past positive customer service experience. The rate and fees that Wells Fargo quoted us were much higher than the deal Salty secured for the equivalent loan program (through a different lender).

Ironically, Wells Fargo bought our loan by the second month, so we ended up with the best of both worlds. Thanks again Eric!!!