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August 21, 2014

How To Avoid Getting A Bad Mortgage

For those A+ paper clients who have perfect credit, lots of equity, great income and wonder, "why isn't getting a new mortgage easier?" Here is the answer. Because of banks like this, we all have to work much harder. I won’t hold it against you if you bank with BofA, however being in my position, I know allot about banks. The ones you want, you have never heard of, and the ones you heard of are the ones you don't want.  BofA is the number one bank on the FBI fraud list.

Bank of America
Bank of America’s settlement follows a series of
 similar deals by other banks with the Justice Departments.
 Photograph: David McNew/Getty Images
Have you ever seen the LEGO MOVIE, excellent film, in one scene Wild Style asks Emmett what his favorite restaurant is? He replies, "any chain restaurant" that’s when she realizes Emmett is not the SPECIAL, implying that someone who was important or special would know better than to like the chain restaurants.

The problem seems to rest on the trust. People trust big banks because they know they are too big to fail and they are afraid a small bank may not be around one day. That is an accurate portrayal of the situation, however it is for that reason that the big banks could care less about you and your savings, knowing their marketing and advertising dollars will bring in plenty of fish. On the flip side the small banks depend on repeat business and family referrals, they can't afford to care less about you. Every client needs to be VIP.

When you shop for a mortgage, or a bank and you have heard of that bank. Don’t go forward without first talking to a loan officer at a small outfit that you have not heard of. Just look for three things.

1. Do they have positive reviews and are they recent?
2. Do they have complaints and are they recent?
3. Do they show that they are licensed with both BRE and NMLS?

Just having an NMLS license is good enough to originate loans, but it does not mean they know anything about real estate. BRE and NMLS companies typically have a much greater education about both sides, mortgages and real estate.