“Go as far as you can see. When you get there you’ll be able to see farther.”
As a way to better serve our couples and families, over the next few months I will be highlighting and interviewing a few of our favorite people in the community who directly impact the new life of a young couple or family. I want to ask them why they love what they do, some tips for couples navigating this new territory and pitfalls that can be avoided.
The next in the community series is Dan the Mortgage Man as he is so affectionally called by his friends and peers. Dan has been writing Mortgage loans for 14 years and is exceptionally great at helping people navigate the processes and paperwork involved in purchasing their first home. Originally in the real estate world, he hadn't planned to go down this road but after some crazy circumstances and a friend taking a chance on him, he accepted the role and hasn't turned back since. He's so passionate about it, he makes sure to handle every client himself and goes above and beyond to make sure his clients get exactly what they need.
Two weeks ago we talked to Matt Polinchak with Live Raleigh Realty to see what was involved with choosing a home, but once a couple is ready to purchase, what do they need to do first?
The first thing they need to do is to get prequalified by a good reputable loan officer.
There are a lot of terms out there I don't quite understand, what's the difference between a mortgage broker, loan officer and mortgage lender? And which are you?
I am a Correspondent Lender. This means we have many outlets of final investors including Fannie Mae and Freddie Mac to sell our mortgages to but all of the underwriting, processing and closing is done with our team right here in the Lake Boone office. We close the loan in our name and sell the loans to final investor or directly to Fannie and Freddie.
A broker can broker loans out to different final investors but with each investor the loan has to be underwritten and closed by their team. So you are subjected to their rules and their team and do not develop a personal relationship with them because you can broker to a ton of lenders with tons of people to work on your loan.
With my company I actually meet with the underwriters face to face to solve problems and develop a relationship with them. I have the same underwriters and closers over and over again.
Do you think it's better for a newly wed couple to purchase a home in their first year or is it better to rent?
It definitely depends on each particular situation but the monthly payment is usually less than it would cost to rent and the interest paid over the year is tax deductible
What are you looking for when you decide whether or not you can write them a loan and for how much?
Credit score, how much monthly income and debt they have and how much money they have saved up to put down. Now there are also 100% financing, low down payment and down payment assistance options available for qualified borrowers
Is there anything a couple should do to get their credit cleaned up before contacting you?
They should not open up any new accounts that report to the credit reporting agencies 120 days before applying. Any new accounts can hurt the credit score for 120 days after opening it because it is built into the scoring model to make sure they have a good payment history of the account. They should not be late on any payments and they should not cosign for anyone because they are ultimately responsible for the payment
After you've approved them, what do they need to do next?
After the loan is submitted to processing the next item on their checklist for a purchase is to get an insurance quote and home inspection scheduled
Can you tell me more about refinancing a loan? At what point down the road is this recommended?
You should refinance if you are saving enough money each month to justify the closing costs of having to do the refinance removing mortgage insurance or lowering the term which increase the amount of principle paid each month and lowers the total amount of interest paid over the life of the loan.
So what makes you come back to this work everyday? Why do you love helping people get loans for their homes?
I am a people person and enjoy working and getting to know my buyers. For most people a home is the most expensive thing they will ever buy so the whole process can be very stressful. I have been doing this long enough that I can effectively streamline the entire process from start to finish and eliminate most of the stress of the home buying process. I educate them up front of what to expect and communicate exactly what we will need during the process so there are very few surprises along the way. I enjoy delivering the folks to the finish line with an on time closing. I also enjoy when folks get to the closing table and say "I have to say I have heard nightmare stories about the home buying experience, this process was not bad at all and you guys made it easy from start to finish, THANKS!”
Love that. Dan is such a great guy. I promise he will take great care of you once you're ready to navigate this next big step in your life adventures! Contact him here even if you just have a few questions, he'll be glad to help.
