lenders

#1 Concern With Mortgage Lenders – In Today’s Real Estate Market

May 18, 2018 by Lance Mohr

A lot of loan officers in the Tampa area are very complacent with the real estate market so good. Learn what to do and what questions you need to ask. With the real estate market being so hot in Tampa Bay many loan officers (lenders) are becoming more and more complacent. So I have been doing their job for them and explaining the different loan programs and closing costs to my buyer for them. Thank goodness I was a loan officer and I know a lot about mortgage loans, closing costs and programs.

What you need to do when you talk to a loan officer is get a Loan Estimate (LE). This will give you a breakdown of all your reoccurring and non-reoccurring closing costs. Then ask the loan officer to go over the different costs with you so you have a good understanding.

It’s also a great idea to ask the loan officer if there are other loan programs that you are qualified for and to go over the pros and cons of each loan program.

Transcription

Hi everyone. This is your Realtor Tampa Bay Lance Mohr. In this video, I want to talk about why loan officers in Tampa and probably everywhere in the United States right now are very complacent and what you need to do about this.

I wanted to do this video because this week I had several buyers. A couple that was local first time home buyers and then some that we’re relocating to Tampa and one thing I noticed just how complacent loan officers have gotten now. I talked about this a weeks ago but I want to bring up a little bit different twist and what you need to do about this.

In Tampa right now our market is really busy. So I think again everybody is getting complacent. Realtors, loan officers, builders, inspectors, everybody and I’ve just noticed a lot of time when first time home buyers are going in and getting a loan. The loan officers are not taking the time to really explain the different loan programs to them. They’re not taking the time to explain the lender's estimates called the LE and going over different closing cost and when someone’s coming in from out of state they’re used to different closing cost or different procedures in the state they are coming from and the loan officers. What they are doing is they’re basically directing everybody to their website. They’re saying fill out an application. They’re filling out an application. They may send them a lenders estimate, they may not. They’re supposed to but even if buyers are calling and getting pre-qualified. They’re not really going over everything with them. They are not explaining things to them like different types of state taxes and how things work here.

What I would say is this. When you talk to a loan officer and you get a quote. Whether it’s on the interest rate of closing costs. Get everything in writing from him. Ask him to send you a lenders estimate and go over all the different cost with them and have him explain it to you. I know when I was in lending years ago. I always did this to people and when I was working with them whether they’re a first time home buyer or a second time home buyer. I always went over the different options with them on loan programs and told them the advantages, disadvantages and let them pick out what was best for them. And a lot of cases they just simply asked me well what one would you go with and why.

So you need to start asking questions because I see so many buyers out there they are just getting information from these lenders and what’s happening is I’m having to step in as a real estate agent and explain the different loan program, the different closing costs and it’s okay because I understand this. I was a lender for so many years. I was a co-owner of a mortgage company but very few real estate agents understand anything about loans and most of them just say oh we’ll just ask the loan officer. It’s unfortunate and I know a lot of people that are watching this video are not in Florida or certainly not in the Tamp Bay area but just make sure to talk to the lender. I mean the loan officer and ask them.

If you have any questions don’t hesitate to give me a call (813-317-4009). I’d be more than happy to help you or just shoot me an email. If you like my videos subscribe. Hit the bell button and you’ll be notified and give me a thumbs up or leave a comment. Have a great day! I hope this helps you. Here is my YouTube Channel https://youtube.com/tampa2enjoy for more educational real estate videos.

Subprime Lending is Back

March 1, 2014 by Lance Mohr

Lenders have seen some of the worst economy conditions in the last few years, but new reports are indicating that subprime lending could be making a comeback. Subprime lenders have been around for some time, but during the financial crisis, many of them seemingly disappeared. According to online sources, subprime lenders are making a comeback with new nonprime loan offerings. Bill Dallas from NewLeaf Lending in California said, “There needs to be a solution for people who don’t fit in the box, and rebuilding nonprime lending is it.”

Subprime Mortgages' Modest Comeback
“Bill Dallas ran two subprime lenders that collapsed during the financial crisis. Now he’s back in business and plans to start offering what he calls nonprime loans later this year through his latest venture, NewLeaf Lending, based in Calabasas, Calif. “There needs to be a solution for people who don’t fit in the box, and rebuilding nonprime lending is it,” says Dallas. This time, he says, tougher lending rules will require borrowers to put down as much as 30 percent and document their income, credit, and work history.

Lenders are returning to the subprime market, although so far the lending is a fraction of what it was before the mortgage crisis. About $3 billion of subprime mortgages were made in the first nine months of 2013, matching the year-earlier period, according to Inside Mortgage Finance, a trade publication. In 2005, subprime originations reached $625 billion.”

Subprime lending explained in less than 2 minutes

With tougher lending rules out on the market today, consumers are sometimes required to put down up to 30 percent, including more documentation of your income, credit and work history. According to the numbers reported by Inside Mortgage Finance claimed that $3 billion of subprime mortgages issued in the first 9 months of 2013. A subprime loan is typically given out to a person that has a credit score of 660 or less. When the financial crisis hit, the lending companies that were giving out subprime loans were largely blamed for the crisis. Selling high-risk loans with adjustable interest rates that tripled after the first two years required little documentation from the buyer and that caused a huge wave of mortgage loan defaults.

That is when the federal regulators stepped in to restrict the number of high risk mortgages that ended up on the market. Lenders are now requiring credit scores that are much higher than in the past as well as more documentation. One credit group has started to offer subprime loans to those with a credit score between 550 and 599, but they were given a 9.75% interest rate and were required to come up with 30 percent as a down payment.

It would appear that subprime loans are making a comeback, but they are packed with requirements that many of today’s hardworking individuals simply cannot afford.

If you have any questions about the real estate market in Tampa Bay or foreclosures in Tampa please visit our Tampa2Enjoy real estate website.

New Mortgage Regulations Will Hurt Working-Class Homebuyers

October 9, 2013 by Lance Mohr

This article goes over some important facts about government regulations that will not only cripple the real estate industry but hurt a lot of lower income and middle class families. If American’s knew a fraction of what our politicians (DEMS, GOP and Obama) are really doing with all these regulations there would be riots in the streets. I hope everyone takes the time to read this and get educated.

New mortgage regulations will squeeze working-class buyers
“Regulations that go into effect Jan. 1, 2014, prohibit banks from approving mortgages for anyone whose debt-to-income ratio is higher than 43 percent.

Banks also will have to limit the fees for originating mortgages to no more than 3 percent of the loan amount, which could discourage many institutions from pursuing loans for lower-priced houses.

“It will hurt working-class families buying homes for $75,000 or less,” he said. “Those loans will be classified as a high-cost loan. You are going to lose people in the mortgage industry looking at that segment. That's what we think will happen. Banks will make a better spread on higher-priced homes.”

Don Frommeyer, president of the National Association of Mortgage Brokers, said the 3 percent rule also will be a problem for mortgage brokers.”

The problem is that we keep on voting in these morons that have no experience running a business or understand what the long term effect is of the legislation they vote on. When they regulated the mortgage industry a couple years ago it caused many lower income families to not be able to get into their first home. NAR (National Association of Realtors) reports that as many as 25% (or more) of the mortgage loans are having problems because the government over regulated the appraisal industry.

NAHB (National Association of Home Builders) policy expert Jessica Lynch talks about the uncertainty regarding mortgage lending requirements and proposed regulations continue to harm the housing recovery.

If you have any questions about buying a home in Tampa or our real estate market conditions please visit our website Tampa2Enjoy.com.

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