Your Questions About Mortgage Loan Officer

Sandra asks…

Any mortgage brokers or loan officers out there that started their career from scratch – no money or contacts?

I am beginning loan officer who lives in michigan who is starting with basically no money, no part-time job, no contacts, and working in the crappiest economy this state has probably ever seen. Any advice?

John answers:

Very difficult especially if you have bills to pay. Usually loans can take 30+ days to fund and you do not receive your commission until then. So basically since you don’t have any contacts etc, you can expect minimum to have some type of income after about 6 weeks or even more. Sometimes things happen in underwriting and loans don’t end up getting funded after alllll that work you did. Work at least part time that way you have some type of income to fall back on. I was a loan officer in your position, but the company I worked for offered 60 days of an hourly wage or until my first loan funded (whichever came first). Best of luck to you.

Sandy asks…

New loan officer – confused about Mortgage Insurance?

Just looking for answers… don’t quite understand all the MI stuff…. I know there is a difference in rates, UFMIP with FHA, but…

On a refinance: (Government or Conventional)
Is there always MI, no matter what? Is there none when the LTV is below 78%?

What are the current rates for each type?

WHEN is the time when a person does not have to do MI?

And explanations help… thank you!
Yes, I am licensed in Utah and with NMLS. :) I don’t have much experience yet, so that is the reason for all the questions :)

John answers:

FHA loans always requires MMI (mortgage insurance) no matter how much down payment. The MMI rate is expensive at 1.25% of the loan amount.

With conventional loans (FreddieMac and FannieMae) if the buyer puts down 20% this avoids mortgage insurance. I heard a lender offering a fixed rate conventional mortgage with 5% down and no mortgage insurance. Up to $625,000 in California. 3.65% interest. Requires a very high credit score.

Richard asks…

I just become a mortgage loan officer….?

Does anyone have any ideas on how I can recruit first time homebuyers or people that would like to purchase a home? I think this field is going to be really exciting, but would like some ideas on a strategy to gain people who would like to buy a house. I never been on commission before and now I have to get busy if I want to pay my rent & continue to eat.

Thanks everyone for you help

John answers:

I am a loan officer my self also. The best thing is to talk to people wherever you go. For example if you are eating out, talk to your waiter, tell her what you do and you offer refferells. Which state are you in, California or . I am in Sacramento. Email me and we could get more ideas from each other.

Betty asks…

Mortgage brokers and loan officers, who are your preferred lenders?

Specifically for conventinal and ALT-A.

John answers:

Mortgage brokers have their place in working loans but personally I feel that some tend to gouge the borrower with higher processing fees. Most loan officers I’ve dealt with are more personally involved with buyers and easier on the buyers pocketbook.

Ken asks…

If you wish to be a mortgage loan officer but dont have previous experience, how would you insure success?

John answers:

As a past mortgage loan officer, the first step is to find a reputable lending company. Banks will be more likely to pay a salary. However it’s becoming a new trend to pay by commission only. The first step is to know your loan program guidelines inside-out. That means study, study, study. Most loan companies have about 200 loan programs to offer. It’s impossible to know the ins and outs of all programs, so choose a handful to use in the beginning and expand from there. The next step is to focus on sales. You have to get out in the field and sell yourself, once you’ve accumulated enough knowedge to be convincing. When you’re making your presentation you have to remember there is alot of competition, so what makes you different than all the rest? Also, you need to rember to emphasize “what in it for them”. After you’ve accumlated a customer base, it’s very important to maintain contact with past customers to insure referrals and repeat business. Remember…always be truthful with your clients and do what you say you’ll do, when you say you’ll do it. Good luck! It’s a good career.

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