vmoney 0 Report post Posted August 6, 2004 I just want to know what the deal is with mortgage brokers and if any of you out there have the same problem as me, specially if you're in MI. The last couple of times I've sold a house (one time conventional sale, one time lease option where optionee exercised option) it has taken forever to close. I can't understand this. What is the problem? Many other investors I have spoken to have had a simular experience in recent years. They don't call back, they tell me "we'll probably close next week," but the weeks keep going by and no closing. I'm really frustrated. I just want an honest answer from anyone in the know. Also, any advice anyone can give me on motivating these people to move things along quickly would be greatly appreciated. Thanks!!! Share this post Link to post Share on other sites
mpine 0 Report post Posted August 6, 2004 I can not say why all l/o loans close late, but I can tell you that a lot of times banks see these creative type deals and have underwriting completely dissect every part of them to make sure the deal is on the up and up, you would be suprised at the wool some investors try to pull over the banks eyes. Investor loans in general are more heavily scrutinized by banks with all the fraud that has gone down in the 90's, and I am sure once foreclosures hit a strong fervor will come out again. My general rule on investor loans is 30-45 days.... This however does not mean I will not close some deals in 14 days or less. If your broker does not have time to take your phone calls or return then in a timely fashion it is time to find someone who gives a damn about you. Best wishes, Mike Pine Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 6, 2004 The real deal by Mike Pine. Thanks for sharing, amigo.Vmoney, keep in mind you are a customer. And if you're not happy with the service, shop your business around until you find someone who shows their interest in you. Share this post Link to post Share on other sites
vmoney 0 Report post Posted August 6, 2004 I do shop around, that's part of my frustration. It seems like there are a whole lot of low quality mortgage brokers out there. Every time a do a deal I have to start a whole new relationship with a broker and hope things work out. Oh well, I guess that's just part of doing business. Thanks Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 6, 2004 I do shop around, that's part of my frustration. It seems like there are a whole lot of low quality mortgage brokers out there. Every time a do a deal I have to start a whole new relationship with a broker and hope things work out. Oh well, I guess that's just part of doing business. ThanksYour experience mirrors that of many investors. Where there's money, there are folks trying to separate you from your's. Be diligent in your pursuit of a good money man/woman. And when you find one, be a kinder, gentler investor. Share this post Link to post Share on other sites
mpine 0 Report post Posted August 6, 2004 Vmoney, You may want to look for a broker who only does loans for investors. When shopping around always provide your own three score credit report that is no more then 60 days out and make it clear to said broker that they are not to pull your credit until you have decided to use them. When you pull your own credit it has no adverse affects on your score. When dealing with a broker it is more important to have some you can talk to then worrying about the best rate and least points which usually changes when you sit down at closing anyways with those thrifty lenders that "give in" to your cost demands. Like the old adage goes, you get what you pay for. Best wishes, Mike Pine Share this post Link to post Share on other sites
Lydia 0 Report post Posted August 7, 2004 I was told by one of the mortgage companies trying to get me to refinance that you can have your credit pulled 10 times in 3 months before it affects y our score. Is that incorrect? Share this post Link to post Share on other sites
mpine 0 Report post Posted August 7, 2004 That one is new to me. As far as I know "you" can pull your credit as often as you like. I would never allow my credit or a clients credit to be pulled 10 times before placing a loan, it is a formula for disaster! Keep in mind that the day before you go to close your credit gets pulled 1 more time anyways. I have had borrowers come crying to me after using such services as Lendingtree to rate shop, and then the brokers who buy the leads resell the leads to other lenders who run your credit again , then decide to do the same thing. Always provide your own report, caution is best when your credit is on the line. Best wishes, Mike Pine Share this post Link to post Share on other sites
lacashman 0 Report post Posted August 8, 2004 Mike is right on about using someone who knows Investor loans. Most loan officeres / brokers have no idea how to put these deals together. Often they will try to broker the loan to the wrong lender ect. Some lenders don't mind investor deals and some will rip them apart trying to find something wrong. Share this post Link to post Share on other sites
Guest Guest_havecash Report post Posted August 8, 2004 My understanding about "pulling" credit reports... Can pull as many as you want on your own without affecting your numbers. If creditors pull your credit, within a 14 day period, no problem. Outside that time frame, it affects your score. Can't get a straight answer from any of the repositories. John at havecash@aol.com Real estate based commercial loans including hard money, too. Share this post Link to post Share on other sites
Andrew Ikeda 0 Report post Posted August 8, 2004 Vmoney, What Michael Pine wrote in response is pretty much in line of what I would have said. Lenders are very cautious financing investors and investor loans due to the fraud that' been going around. The average time for a loan is around 30-45 days for me too but I've closed in as little as 17 days. It might be good for you to meet the loan officer in person if you can and you be your own judge as to whom to work with. Credit scores and reports....sheesh, I'm writing an e-book on all this since many people are falling prey to wicked minded mortgage brokers out to gouge people. Here is what you do: go to either www.experian.com or www.equifax.com and pull your own tri-merge report with the scores. It might cost you $40 for all of it but you will save 40 valuable points on your credit scores also! You've heard the expression "cash is king", right? Well, in the mortgage world keep in mind that "credit rules" in addition to the cash is king idea and you'll have a fairly complete idea of how important scores are in obtaining financing. It is common for lenders to adjust interest rates on credit score increments of 10. For example, if your scores are 686 the rate for scores between 680 and 690 might be say....5.5% but if your score drops to 679, that rate could be 5.675% or if your score was say 658, the rate would increase to 5.75%. Likewise, the opposite also happens if your scores go to say 700, then the interest rate drops to 5.125%....720 FICO..down to 5.00% even.. Pulling your own report does not hurt your scores. Someone else (financial institution) like a mortgage company or auto dealership or bank will drop your scores an average of 5-10 points. Like Michael Pine said, use your own reports until you find financing that you like and can live with and then pursue it. I had a Russian couple that went shopping on me after I told them that I would pay for the appraisal at closing and attempt to meet or beat anyones rates free of charge..which it always is with mortgage brokers. I told this young man that what he was doing was fraudulent (his parents were going to buy it for them but apply for the loan as an owner occupied for the parents) Well, this guy didnt listen and went and shopped with 8 different lenders during a two week period and his parents application and the parents' scores went from 672 down to a 618 and he basically got 'disqualified' for the property he was wanting because of the credit pulls. Earnest money was refunded and they walked away highly disappointed and angry with loan officers. This was told to me by the realtor. If you have any more questions feel free to ask. If you need some assistance, I might be able to help you out if your interested. Best wishes and keep us posted on the outcome! Andrew email: andikeda@netscape.net Cell: 360-909-3374 Share this post Link to post Share on other sites
jesse 0 Report post Posted August 8, 2004 I'm a loan officer and I usually close loans in three weeks or less. When dealing with a broker or lender, make sure you have everything ready when you start the loan process: sales contract, name of title company, listing and selling agent. Also make sure the borrower have all documents the lender will require: 2 most recent paystubs, last 2 years of W-2's and 3 months bank statements. If you can have all those things available, things should go alot faster. Sometimes it takes longer than normal to close a loan because I have to wait for people to give the documents that I ask for. I can usually have a loan approval from an underwriter in 2-3 days. I hope this helps you out. If you still run into the same problem, give me a shot at doing the loan for you. Jesse Share this post Link to post Share on other sites
vmoney 0 Report post Posted August 9, 2004 Thank you all for all the great info. By the way, how does the time period between each time your credit is pulled come into play? Do points get added back to your score over time if your credit is not pulled for a long period of time? How does timing play into the effect on your score? Thanks!!! Share this post Link to post Share on other sites
