#WhackedOutWednesday – Complete completely a 1003, a lender app, or anything that is a form to turn in. Seriously, this is elementary things, but yet grow ups don’t know how to fill in a form! Like seriously, if a form has a field to be filled in, put something in it! Even if it’s N/A – Something is better than skipping it. And you may just find that you have an important question you needed to ask or answer.
More importantly, with a complete 1003, DU will not give you errors. Well, I should say “as much”! Some of the common errors in 1003’s today for #WhackedOutWednesday will hopefully help you learn to look at these sections to begin with. Let’s list them;
Type of loan, I know this seems basic but it’s true, sometimes people get in the habit of checking FHA, when it’s actually a conventional loan. Make sure the boxes at the top of the 1003 in the beginning are correct.
Name, Phone number and Email address; Again you would think this is elementary but the most common is a 1003 with no email address. Let’s recap this whole TRID thing, you can’t do a home loan without an email basically, or you wait longer to close. So if a client doesn’t have an email and they are that old fashioned, open them a free gmail account. It’s basically required and you will thank yourself later in the loan process (ie CD time)!
Work and Address history – Remember on a 1003 the underwriter is looking for the last “two year” work history. No matter what the program or how long you want to prove income income etc. There needs to be a work history and an address history (rent or owned) for a two year period on the 1003. Simple.
DOWN PAYMENT TYPE – On purchases I highlight this, as a function of DU it reads risk based on weather the down payment is marked from Checking savings or as a GIFT! If you have a gift and you don’t select that upfront, you could begin a loan and then later on find out your loan isn’t approved. (*reiterating to fill in the 1003 correctly)
REO section – It’s funny but many professional processors even hate this section and skip it. If there is a mortgage on the credit report, that means you must tie that loan to an REO in the Real Estate Owned section. Simple to do, but commonly missed. OH, and if you have free and clear homes, make sure you assign the “taxes and insurance” on that property to the home so that DTI shows right. So basically if they have a home fill out the REO section. Wow what a concept.
Declaration Questions – Including all HMDA /ECOA info. So that last page, that asks if they are Indian or Asian yeah that one. Mark it up, it’s needed for your bosses call reports anyhow. (form they fill in and send in to tell the government whom they have been taking apps with) – Bottom line, make sure you attempt to have all boxes marked on this page. It is imperative that the 1003 is accurate here as some of these boxes can trigger different approval levels. And more conditions for sure.
No matter what, if you’re in Wholesale or Retail, the 1003 is like your bible to a loan. It’s the holy grail that makes or breaks someone’s financing if not completely and accurately taken to begin with. DIG DEEP – My advice, is anytime you see something not “normal” ask questions – LOTS OF THEM! Do NOT be affraid to ask your client WHY? Why did you have a job gap? Why did you sell that home, where did the money go? Can you source any and all large deposits in the last 60 days etc? Below I souce the 6 top 1003 mistakes for #WhackedOutWednesday – It’s longer than normal however, take notes and implement is my suggestion! #SellWell
It is WHACKED OUT that sometimes mortgage pro’s half ask it on the NUMBER 1 thing that is part of their job. Filling in the 1003. Funny in a way, but trust me, the more accurate, the more questions you get asked, and the more detective work you attempt to do in this stage – The MORE LOANS YOU WILL CLOSE! Meaning fund and get paid on. So my advice SLOW DOWN, and master your craft. It’s the one thing that can and will dictate your paycheck! #SellWell
#TGIF The Grind Includes Friday! Weekend Call to Action this week is simple. Make a fan page if you don’t have one. State on your personal Facebook that your a LO or Mortgage Broker! Make it easy for others to know what you do! And then use your own list of connections to start a list of people to connect with, reach out to, like their page, engage with, comment on, private message to…I think you get the point. It all starts with you looking. #CalltoAction #SellWell #TheBLUEPRINT
For those of you that Broker home loans, or are a LO struggling. I can help. Even with Banks, and Credit Unions to help their lending team alleviate risk with underwriting. I help others close more home loans across the US! I offer an array of products from FHA/VA/USDA/ Conventional / Jumbo and even NON-QM to offer your clients. Fill in the form below!
For those of you LO’s that are struggling and need help finding a way to gain more referrals and deals to work. I have theBLUEPRINT for you! A way to leverage social media and set yourself up for ORGANIC FREE exposure to gain more leads and do more loans. Check it out here; TheBLUEPRINT is here!
Welcome kit, or maybe you call it your on-boarding package! Every “good or service” has a delivery process, a closing if you will. Some more meaningful than others. Even local grocery stores now try to use “marketing” on receipts for example. A dentist, gives you a small bag of goodies typcially on every visit. What about a mortgage? What about a car delivery? Do you have a marketing kit that the client takes with them for example, a key fob or key ring with your logo? Maybe a discount booklet that gives the new homeowner “discounts” for using them, such as a moving service, or a carpet cleaner, or housekeeping/maid service in the area? Maybe you LO’s network with a grass cutting landscape business in the area and get the new resident a “free cut coupon”. 🙂 The possibilities are endless. But what leave behind would make the most impact? The one they look at everyday, the one on the refrigerator. A magnet! Put together a short or small marketing piece with your logo at the top, and then use it as a magnet to promote all the other services they may need, such as car wash, or a house cleaner, or insurance person, or landscaping to cable service. You could easily network with other ‘sales’ entities in the relative area you serve and create something that makes them think of you for your professional service. #WeekendCalltoAction #SellWell
This suggestion is real, the RE agent that made me the magnet from my first house is still on my refrigerator today. And I don’t live in MI any longer. lol
I want to help stimulate the market by educating the consumers and businesses on the DUAL market opportunity that presents itself in times today. This market has NOT been around for over 40 years, and if you are a homeowner, watch this video! Seriously consider getting a “move up” analysis from your local mortgage broker! I can help connect the dots, and if your looking for someone that can help you, let me know, I will refer you to the best mortgage Brokers across the US. #SellWell – has a new meaning today 🙂
#TwoforTuesday I absolutely love guidelines, I’m a guideline geek. No joke, they help my whole world turn. Today I talk about the TWO MOST IMPORTANT pieces of paper you deal with in the mortgage world, the LE and the CD. Some people forget Saturdays do and don’t count, some people forget how to count! Seriously counting to three is different between the two disclosures. Check it out below. Great Two 4 Tuesday review! #TheSalesJUICE
Go big or go home. Create urgency in a rising rate environment is so imperative. What you send a client today, may not be the “same” price tomorrow. Heck even mid day. You and I know that in the mortgage industry, clients do not. Explain how the rates work and use the rising rate environment to create urgency to get your “books” back. #SellWell
Diversity is key in a referral business. No matter what sales your in. For you mortgage pro’s, now’s the time (especially in a rising rate environment) to diversify whom you work with to gain referrals. The work done now to network can payoff in the summer. Two main sources will be key, purchase referral sources and CASHOUT referral sources. Check out the recommendations in the video. #SellWell #ReferralWell #SalesJUICE
Two for Tuesday, for the love of FHA. And the “I gotta guy” questions I get all the time. When you run DU and it doesn’t approve the loan, but gives you options to refer to manual guidelines. Here’s the tips for DTI exceptions on manual underwriting for FHA.
Social Selling is the newest way to develop relationships. If you’re not doing it, your missing the boat. Social selling is an art, and with all the great social platforms out there, use them to your advantage. Create a BOND with your prospects first. Engage them, and find out what makes them “tick”. Then it will be easier to identify solutions to help them. #SellWell