Ricardo Bueno's Blog

It happens all the time!!! A couple is being careful and shopping around for the right mortgage. Who do they go to? With so many choices and telemarketers calling all the time...it's hard to decide who they're going to refinance with!

But then what happens? The right person calls at the right time!

The couples in a good mood and the tone in the loan officer's voice reflects the same. They hit it off and everything seems great but all the loan officer is thinking about is the big bucks!

He's about to charge that big 3.5 - 4 point commission but he's going to do the whole bait and switch technique; that's where you quote the client one very low rate but then close with higher fees and a higher rate.

 Because the clients trust him...all he has to do is say "Don't worry just sign here. Everything is going to be great!"

Tisk, tisk, tisk... I've seen too many cases where clients are getting screwed over! It gives good brokers everywhere a bad rap. At least two of my client's this month have had a tremendously horrible experience the last time they refinanced. They paid way too much in closing costs; in origination and other junk fees.

Consumer Tip: read the fine print and follow up periodically with your loan officer to make sure the financing process is in order with everything that you've discussed. But like I said...read the fine print. What's important is what's in writing, not just what someone says.

Don't get me wrong, I know we're in this business because there's potential to make good money...big money. But you don't have to cheat someone over to do that. There's a right way of doing things and a wrong way of doing things.

I for one and Wilshire Financial Inc. like to do things the right way! --> Service You Can Trust! Fair, ethical financing solutions.

--

Ricardo Bueno is a Loan Officer and Team Leader with Wilshire Financial, Inc. "Remember...everything that you do should contribute to a strategy!" -- RB    www.Wilshire-Financial.com

BAD credit can, quite frankly, disrupt your life. That's why, in addition to paying your bills on time, it's important that you review the accuracy of your credit reports several months before applying for a large loan like a mortgage or a car loan. And these days, you can also find out your specific credit scores from each of the three respective credit reporting agencies: Transunion, Equifax, and Experion. 

WHY do you need to know your scores? Because the lower your scores, the higher risk your are to a lender and the less likely you are to get the best rates available on loans. Checking your score with Transunion, Equifax, and Experion before you apply for a loan can save you tons of money if you were to catch a mistake and correct it. When you are buying a home, the difference between good scores and poor ones can translate into well over $100,000 over the life of the mortgage, according to Howard S. Dvorkin, President of Consolidated Credit Counseling Services, a nonprofit debt-counseling service. 

MOST lenders initially use the Experion score system known as FICO, developed by Fair, Isaac and Co. Several factors go into your score, including bankruptcies, how many years you've had credit and the number of new credit applications you've made. Most consumers' FICO scores fall between 300 and 850. Sixty percent score above 700; 27% score between 600 and 699, and 12% score between 500 and 599. The way lenders view scores varies from one institution to the next. But generally speaking, this is a rough guide to how your score may be perceived by a mortgage lender. 

700 and above = Excellent - you will get the best market rates available.

680 - 699 = good - lenders will be favorable, but you should make moves to improve your score further. Expect to qualify for rates .5 to 1% above excellent ratings.

620 - 679 - Average - the lower your score in this bracket, the more collateral lenders will require and the higher the rates you may get. Expect to qualify for rates 1-2% higher than excellent. Commercial lenders will not accept your loan request below 680.

580 - 619 - Subprime - scores in this range are often referred to as "A- Credit." You will have to put more down and pay far higher rates than most borrowers. If you score 590, for example, and want to buy a car, any loan you get will carry a high interest rate. If the average rate on a 5-year car loan is 8% at the time you apply, expect to get a car loan for 11-13%. And now...with the changes in the subprime industry, expect to run into many problems getting qualified. Lender's have changes their guidelines extensively weeding out a lot of people who previously qualified.

Below 580 - often referred to as "B/C- Credit," you can expect to only qualify for adjustable rate mortgages (ARMs). Consumers in this range will pay above 11% for mortgages and will need down payments of at least 20% to purchase homes.

MOVES to make a mediocre credit score or even a bad one better are not difficult. You can take steps to improve ANY credit score. The 1st step is to make sure that your credit history is accurate. Your scores are only as good as the information reported by your creditors to the credit bureaus. Each credit bureau may not have the same information. The 2nd step is to use the information on your credit history to improve you scores. Each credit bureau will list the top 4 reasons for why your credit scores is where it is. You may find the biggest reason your scores are low is that the outstanding balances on your credit cards are too high compared to the total credit limits. Any credit score will improve if you pay off balances and pay on time. 

--

Ricardo Bueno is a Loan Officer and Team Leader with Wilshire Financial, Inc. "Remember, everything that you do has to contribute to a strategy!" -- RB    www.Wilshire-Financial.com

FICO Scores range between 300 & 850. When you run your credit for a loan application your FICO score is reported through each of the three credit reporting agencies: Transunion, Experion, and Equifax.
700 & Above = Excellent - this means that you will qualify for prime market rates. 

680 – 699 = Good - you still have good credit and you will qualify for close to prime market rates. You interest rate will typically be .25% - .5% higher than the prime market rate.

620 – 679 = Average - in this category, the higher your credit score, the lower your interest rate. If you do not generate a substantial income to qualify for your loan Full Doc, I would discuss credit remediation with your Loan Agent. I don't mean referring a Credit Repair Agency...I simply mean what are some minor "tricks" that you can do to better your credit; such as paying off high credit balance accounts. 

580 – 619 = Poor - the market here is changing. Loan programs are changing daily and now you must submit your loan Full Doc in order to qualify if you fall into this category. I know that this weeds some of you out and refinancing is no longer an option. What I would recommend in this case is again, discussing credit remediation techniques with your Loan Agent. If the situation is beyond his ability to recommend appropriate measures, you might consider a Credit Repair Agency, in which case you and your Loan Agent want to do some research to ensure that your source is credible. 

580 & Below = Subprime - most clients in this category fall into the Hard Money Loan Programs. Most lenders will only finance up to 70% LTV, some will do 75% LTV. Again the market is changing and some clients are facing the threat of foreclosure. To these clients in particular, Hard Money is a solution to avoid going into the foreclosure process. Please contact your Loan Agent immediately to discuss further details if you are in NOD. 

Your credit score will be considered heavily by the lender when your loan application is submitted. The lender wants to know what your credit history is like because they want to determine your ability to repay the loan that you’re asking for. Good credit translates into lower rates for you, the applicant, as it represents less risk to the lender.

--
Ricardo Bueno is a Loan Officer and Team Leader with Wilshire Financial, Inc. “Remember, everything that you do should contribute to a strategy!” -- RB    www.Wilshire-Financial.com

Find out what makes your people tick and get them motivated. There’s a saying, “People move businesses…motivation moves people!” – Melissa Wong
There’s so much truth in a statement as simple as this. Be sure to understand what your team member’s goals and do your best to help them get there.
I require a Business and Marketing Plan from each and every one of my associates. Then each week we do our one-on-one meetings which we’ve titled the Fifteen Minutes of Fame. The purpose of which is to keep them accountable for following up on any action items so that their fulfilling their goals as stated in their business plans.

--
Ricardo Bueno is a Loan Officer and Team Leader with Wilshire Financial, Inc. “Everything that you do should contribute to a strategy!” --RB

www.Wilshire-Financial.com 

It is but only when you don’t plan properly. Think about it this way, let’s say that you’re in your 1st or 2nd year of college and you decide that you want to be a Doctor in the future. All of a sudden choosing a major becomes a lot less stressful because your path towards your career has all of a sudden become a lot clearer; you know you have to go Pre-Med. It’s the same idea when you join the industry. Just ask yourself…what do I want out of my career as a Loan Officer or Real Estate Agent? So ask yourself this question and once you answer it you’ll know what you have to do. The next step is to join a company that is going to help you accomplish your goals.
But now let’s talk about the day-to-day nitty-gritty of what it takes to be a Loan Officer. Is the job stressful? Sure it is but only to the extent that we let it be. I mean each month we have to “put out fires” here and there. What I mean is that one problem or another will arise with a file here and there. But this is where communication between yourself and your processing staff is important. Just be sure to have clear communication and follow up on your files daily to ensure proper processing down the line and you’ll run into fewer problems. And also, just remember, follow up, follow up, and more follow up. Be sure to follow up with your clients when you say you will and then some more. Because what you don’t want to happen is some other Loan Officer from the Broker Shop next door to steal your client.

--
Ricardo Bueno is a Loan Officer and Team Leader with Wilshire Financial, Inc. Client and Team outlook → “Everything that you do should contribute to a strategy!” – RB So when you’re looking for Service you can Trust! I’m only a phone call away.