#TGIF – The Grind Includes Friday (everyday for me) 🙂 – Very frequently I am asked about rules of the 1003, and wanted to drop two commonly asked questions as guides today. Number 1, the 1003 is going to changed, yep you’re going to have to learn a new one! But not until 2019. So you still have 1 more year with the current version of the URLA. So good news there. Number 2, the most commonly asked question I get asked is about the work history. Most get confused about the rules for using income, and how to fill out the 1003. Let me clarify. – You need to detail a 2 year housing and a 2 year work history on the 1003. It’s as simple as that. If they have only worked at their current job for 30 days, just keep asking the client “where did you work prior to that?”. Make sure you detail 2 years as a history of working. Now high school does NOT count, but trade schools and college do. If there is more than 30 day job gap all you need to do is get a letter of explanation from the client (loe/lox). Simple. Number 3, the rule of 5. I love this rule. And many do not know it. So here’s a cheat sheet to refer too. Commission, bonus, over-time, self-employed or working two jobs are the 5 things in this rule. And really you only need a TWO YEAR HISTORY OF WORKING TWO JOBS AT THE SAME TIME! The rest of the rule of 5 you only need a 1 year history of doing. With exception of being self employed and actually working in the same field for 2 years or more, but you can be self employed for 1 year only and do a home loan.
Better yet, you can use our #SponsoroftheWeek PERFECT LO to help you take an accurate 1003 from the start! #SellWell
I’m growing again and today calling Broker’s I do NOT know at all. If you watch this, share it with a fellow Broker or Bank that could use a great Account Executive to help them close more loans and gain more business! #FilloutBelow
#TwoforTuesday – Sales TIP day, I go into the two things that have made me successful in whatever I do. Consistency and Action. Both work hand in hand, and all start with taking action. Make time to prospect, make time to follow up, make time to go over emails and voicemail. When you create consistent habits of action is when you will see results in the long term. #SellWell
Ok, normally I do #TwoforTuesday, did you read it the same way? Second, this is the biggest aspect of lending that is missed. It’s how we train our brains to skim over stuff. Our eyes go over it and can read things without us really reading them.
This applies to ALL information placed on the 1003. Yep, that’s how loans work. You put info on the 1003 it needs to be “verified” in proof. So do you as an LO actively R34D the informati0n s3n7?
Common mistakes, #TwoforTuesday #1 is read the information sent to check to verify it would have the needed checks on it. Not only is the CPL verbiage spelled right. But for example if on the 1003 you place 30k in assets, verify that the bank statement/asset statement has at least 30,000 as a balance. As you gather information as “proof” the best thing a LO can do is change their own point file. YES as you go on a loan, do you actually input the real values you get from the client into Calyx or Encompass? (not many do this). The LOS you use should be updated and when certain changes happen you should RE-RUN DU on your loan. Make sure it stays eligible throughout the course of a loan. Especially if you are doing a formal Change of Circumstance request (CofC) and including when you “lock” the loan assuming that rate is different than what was proposed at time of application. Re-Running DU on the “broker side” is a good idea. Don’t just ask for the change and not update your information or verify that the change requested will be ok. And once you do gain eligibility, then READ your own findings and gather what that is calling for. Especially upfront. Don’t overkill and send in too much information, just read DU and give the initial underwriter as much of those findings as you can upfront. So as I pointed out, there are multiple items to READ over in regards to what to gain from the client and AFTER that info is received from the client. #CHECKIT
Common mistakes, #TwoforTuesday #2 is to fill in the 1003. Completely. From start to finish. Look I work with processors quite a bit in my day’s routine. Or Broker’s that process their own loans. The number 1 thing I see is that an underwriter or myself will ask a question and that 1003 shows one thing or a declaration question not checked correctly or something. Even vesting request or source of down payment doesn’t match the information provided. Or the story that’s being presented. Small “conditions” can be avoided if the 1003 is thoroughly gone through on each and every loan. That is technically the job, the role, the fact you have a license to discuss terms on. However this “part” is whipped through over and over by Loan Officers all the time. When I did a 1003 #backintheday there were several of us in the office that would play games to see how much information we could get. We would ask what color is the blinds, to having a prospective buyer describe their dream kitchen. Just various things to really go deep and bring out EMOTION during the 1003 taking phase. When I did that task of 1003 taking, I would always aim at taking a 1003 through a guided conversation that engages the client and helps them open up to me. On all levels of finance to personal life, goals, dreams and aspirations.
If you need something you can use as an application “flow” sheet, feel free to head over to Sales Talk with Mortgage Pro’s . In the files tab I have kept a copy of what I used to use all the time, one is for “power buyers” and one is for “refi’s”. Just a copy of a “application flow sheet” that could help you along the way. A winner is a dreamer that never gives up!