Here's where I ask for your help with a simple question. What is most important to you when you look for a mortgage?
1) The rate and fees are all that matter.
2) Understanding the Process
3) Trusting your loan officer
4) Knowing the lender
5) They're all the same, I just use the loan officer my Realtor recommends.
6) Other (Explain)
It's important to me to understand my potential clients, so help me out here, if you would.
Thanks,
Dave
Dave Duke, Mortgage Consultant (Click on picture to go to my business page.)
Thursday, February 24, 2011
Monday, February 21, 2011
Why I Work at Axiom
I've had some people ask me why, since I've had the opportunity to work at a mortgage brokerage and at a bank, and could easily still be working at either one, I have chosen to work at Axiom Financial. I can answer that in basically 3 ways:
1) I finally found a company that matches my own feelings regarding customers service.
Early in my career in the financial services industry I heard a mortgage broker state to his co-workers, "You might as well charge people the highest fees you can get away with, because you'll probably never see them again." In other words, max out your commissions on each client. During that time I was working in the financial industry, but was not licensed as a mortgage originator. I decided to change that at that moment. If the financial scenario of my clients at that time required a mortgage refinance, then I would hand them off to someone else that was recommended by others because I didn't think there was much of a difference between mortgage companies. I mean, an interest rate by any other name....right? Well, I was wrong. I decided then to study and get my originators license, where I placed it with a local broker because I knew the owner, Ron Winterton, then of American West Lending. Ron, who had over a decade of experience at that time, taught me the ins and outs of the business and became my mentor.
Because I was still licensed in the insurance industry at this time and that was my primary source of income still, Ron and I had to part ways as his company decided not to remain as an "affiliate" of my primary company. I then moved my license to another small, local broker which was a nice company, but was really nothing but a way to faciliate my loans; no marketing efforts, no local underwriting. We had to send each loan to underwriting to the company where we placed the loan, be it Countrywide, SunWest, US Bank, etc.
Now, someone working at brokerage would tell you that this is part of the strength of using a broker; they can pick and choose the best place to put your loan. I used the same argument....until I realized that this just wasn't true. Could loan officers at brokers do that? Sure, they could. But they don't. They tend to work with 1 or 2 different companies with which they get comfortable. Sometimes those companies have the best rates, and sometimes they do not. Usually it's the companies that have the easiest "submission" requirements or those that have the easiest systems to use or those that do the best marketing to the loan officers. Rarely have I found a loan officer that actually looks at EVERY company they have access to and places your loan with your best interest in mind. In fact, most of the time they place with THEIR best interest in mind, or the one that is paying the best commission for the rate they're using that day. I have never thought that was the best way to do business. In fact, sometimes my wife asks me why I tend to give "breaks" on origination (one of the fees on your loan). The answer is that I ask myself, "If I were in the situation of the borrower, what would I want done?" I mean, obviously I have to make money or I'll be out of business, right? But, I have seen loan officers charge WAY more than they have to and it just doesn't make sense to me. I guess I just wasn't raised that way. At Axiom, I have a company that would rather help me be someone's "mortgage partner for life." That just isn't the attitude at other companies I've experienced.
Axiom uses a third party to make customer service "grading" calls on over 80% of our loans. In 2010, the company as a whole had rating of 9.76/10. My own grade was a 9.97/10, which isn't out of the ordinary in our company. About 90% of the time, I don't even mention to my clients that they might get a call. I'm sure that no other company I've been with could have come close to those scores.
2) There IS a difference in underwriting.
At Axiom, we are a direct lender. What does that mean? Well, like a broker we can use many different companies, but those companies rates are shown together on our "rate search" engine. So, the best rates are right there for us to see so an Axiom loan officer can compare on one website page and actually do what brokers tell you they do. We can use our parent company, PHH Mortgage, or we can use US Bank, Wells Fargo, Chase, GMAC or others. Unlike the brokers who have to send the files to those companies to be underwritten and depend on those companies' underwriters timetable, at Axiom no matter to which company you will eventually make your payment, the underwriting is done locally in Sandy, Utah with our underwriters who are trained to underwrite not only for PHH, but for each company we do business with. Your file never goes any farther than our corporate office in Sandy, UT. Now, we CAN broker the loan somewhere else if we have to, but in 2 1/2 years, I've only found the need to do that 1 time.
Some might not think that is a big deal. They would be wrong. After being in the business for about 5 years, the broker I was with quickly went out of business. I was lucky enough to gain employment with WaMu as a loan officer in their Lindon, UT branch. During that time, my files were submitted to an processor and underwriter (two different people) in the WaMu loan headquarters, located just outside of Chicago. Yes, I said Chicago. What do you think that did? Well, to be quite honest, those processors and underwriters didn't care one bit how fast they finished with my clients' files. You'll find that at most banks. If they don't have local underwriting, then they haven't met their underwriters and those underwriters just don't care. As a perfect example, the last file I was working on at WaMu (then Chase....you probably know what happened) was for a doctor in central Utah and his wife, who were simply trying to refinance their beautiful home. Credit score was over 740. Income, as you might expect, was more than sufficient. The appraisal was more than sufficient, the loan was less than 70% of the value of the home at that time. So, how long did the underwriting take? OVER 45 days! In fact, I left Chase and left the loan for someone else to finish because my regulations I couldn't take it with me. Truth is, they went somewhere else. And if an underwriter is reading this and asks, "Well, was your file complete?" the answers is YES! In fact, the day before I left Chase an underwriter send me an email telling me what a joy it was to get one of my files because they were always so complete. Made me wonder why they always took so long...
When I came to Axiom, I asked about their underwriting times. They told me at the time that files were in UW from "2-3 days" but it could take as long as 5 days during some periods, almost apologetically stating the last part. "As long as 5 days?" I couldn't believe it. In fact, after 2 1/2 years with Axiom, most of my files have only been in UW for 2-3 days.
Two to five days or 30-45 days? Which do you want? Are there other companies that can do this? You bet, other mortgage "bankers" or direct lenders. Axiom happens to be one of them.
3) "Axiom, Your Lifelong Mortgage Partner"
I mentioned this slogan in number 1, but need to elaborate. At Axiom, we have on a quarter basis in Sandy, loan officers from all over Utah meet to discuss what is happening in the industry and with our company. That wouldn't be surprising to you, I'm sure. Most companies do that. What might surprise you is that on top of the marketing ideas, industry updates and the ususal things you'd expect, we talk in depth about how to better serve our clients and the community as a whole in what we do. That is something I have never experienced in another company. I've been to events for other companies that have filled arenas with tens of thousands of people and they pay lip service to the idea of "service" but when it comes down to it, they are simply "rah-rah" sessions that pay homage to those who make "big bucks."
Oh, at Axiom they give out plaques and such to the "best" in the company, but those plaques are not just for those who earn the most, but also to those who "serve" the best. Sometimes those are the same people, sometimes they are not, but never in my decade in this industry have I seen service given the same amount of applause from a company as earnings.
The next time you're talking to a real estate agent here locally, ask them if they have heard of Axiom and ask them what they think of the company. I submit that if they haven't heard of Axiom, they haven't done much business.
Oh, and my mentor, Ron? He now works at Axiom as well. He sold American West Lending to Axiom just about the time he called me, then working at Chase, and asked, "Have you ever heard of Axiom Financial....?"
1) I finally found a company that matches my own feelings regarding customers service.
Early in my career in the financial services industry I heard a mortgage broker state to his co-workers, "You might as well charge people the highest fees you can get away with, because you'll probably never see them again." In other words, max out your commissions on each client. During that time I was working in the financial industry, but was not licensed as a mortgage originator. I decided to change that at that moment. If the financial scenario of my clients at that time required a mortgage refinance, then I would hand them off to someone else that was recommended by others because I didn't think there was much of a difference between mortgage companies. I mean, an interest rate by any other name....right? Well, I was wrong. I decided then to study and get my originators license, where I placed it with a local broker because I knew the owner, Ron Winterton, then of American West Lending. Ron, who had over a decade of experience at that time, taught me the ins and outs of the business and became my mentor.
Because I was still licensed in the insurance industry at this time and that was my primary source of income still, Ron and I had to part ways as his company decided not to remain as an "affiliate" of my primary company. I then moved my license to another small, local broker which was a nice company, but was really nothing but a way to faciliate my loans; no marketing efforts, no local underwriting. We had to send each loan to underwriting to the company where we placed the loan, be it Countrywide, SunWest, US Bank, etc.
Now, someone working at brokerage would tell you that this is part of the strength of using a broker; they can pick and choose the best place to put your loan. I used the same argument....until I realized that this just wasn't true. Could loan officers at brokers do that? Sure, they could. But they don't. They tend to work with 1 or 2 different companies with which they get comfortable. Sometimes those companies have the best rates, and sometimes they do not. Usually it's the companies that have the easiest "submission" requirements or those that have the easiest systems to use or those that do the best marketing to the loan officers. Rarely have I found a loan officer that actually looks at EVERY company they have access to and places your loan with your best interest in mind. In fact, most of the time they place with THEIR best interest in mind, or the one that is paying the best commission for the rate they're using that day. I have never thought that was the best way to do business. In fact, sometimes my wife asks me why I tend to give "breaks" on origination (one of the fees on your loan). The answer is that I ask myself, "If I were in the situation of the borrower, what would I want done?" I mean, obviously I have to make money or I'll be out of business, right? But, I have seen loan officers charge WAY more than they have to and it just doesn't make sense to me. I guess I just wasn't raised that way. At Axiom, I have a company that would rather help me be someone's "mortgage partner for life." That just isn't the attitude at other companies I've experienced.
Axiom uses a third party to make customer service "grading" calls on over 80% of our loans. In 2010, the company as a whole had rating of 9.76/10. My own grade was a 9.97/10, which isn't out of the ordinary in our company. About 90% of the time, I don't even mention to my clients that they might get a call. I'm sure that no other company I've been with could have come close to those scores.
2) There IS a difference in underwriting.
At Axiom, we are a direct lender. What does that mean? Well, like a broker we can use many different companies, but those companies rates are shown together on our "rate search" engine. So, the best rates are right there for us to see so an Axiom loan officer can compare on one website page and actually do what brokers tell you they do. We can use our parent company, PHH Mortgage, or we can use US Bank, Wells Fargo, Chase, GMAC or others. Unlike the brokers who have to send the files to those companies to be underwritten and depend on those companies' underwriters timetable, at Axiom no matter to which company you will eventually make your payment, the underwriting is done locally in Sandy, Utah with our underwriters who are trained to underwrite not only for PHH, but for each company we do business with. Your file never goes any farther than our corporate office in Sandy, UT. Now, we CAN broker the loan somewhere else if we have to, but in 2 1/2 years, I've only found the need to do that 1 time.
Some might not think that is a big deal. They would be wrong. After being in the business for about 5 years, the broker I was with quickly went out of business. I was lucky enough to gain employment with WaMu as a loan officer in their Lindon, UT branch. During that time, my files were submitted to an processor and underwriter (two different people) in the WaMu loan headquarters, located just outside of Chicago. Yes, I said Chicago. What do you think that did? Well, to be quite honest, those processors and underwriters didn't care one bit how fast they finished with my clients' files. You'll find that at most banks. If they don't have local underwriting, then they haven't met their underwriters and those underwriters just don't care. As a perfect example, the last file I was working on at WaMu (then Chase....you probably know what happened) was for a doctor in central Utah and his wife, who were simply trying to refinance their beautiful home. Credit score was over 740. Income, as you might expect, was more than sufficient. The appraisal was more than sufficient, the loan was less than 70% of the value of the home at that time. So, how long did the underwriting take? OVER 45 days! In fact, I left Chase and left the loan for someone else to finish because my regulations I couldn't take it with me. Truth is, they went somewhere else. And if an underwriter is reading this and asks, "Well, was your file complete?" the answers is YES! In fact, the day before I left Chase an underwriter send me an email telling me what a joy it was to get one of my files because they were always so complete. Made me wonder why they always took so long...
When I came to Axiom, I asked about their underwriting times. They told me at the time that files were in UW from "2-3 days" but it could take as long as 5 days during some periods, almost apologetically stating the last part. "As long as 5 days?" I couldn't believe it. In fact, after 2 1/2 years with Axiom, most of my files have only been in UW for 2-3 days.
Two to five days or 30-45 days? Which do you want? Are there other companies that can do this? You bet, other mortgage "bankers" or direct lenders. Axiom happens to be one of them.
3) "Axiom, Your Lifelong Mortgage Partner"
I mentioned this slogan in number 1, but need to elaborate. At Axiom, we have on a quarter basis in Sandy, loan officers from all over Utah meet to discuss what is happening in the industry and with our company. That wouldn't be surprising to you, I'm sure. Most companies do that. What might surprise you is that on top of the marketing ideas, industry updates and the ususal things you'd expect, we talk in depth about how to better serve our clients and the community as a whole in what we do. That is something I have never experienced in another company. I've been to events for other companies that have filled arenas with tens of thousands of people and they pay lip service to the idea of "service" but when it comes down to it, they are simply "rah-rah" sessions that pay homage to those who make "big bucks."
Oh, at Axiom they give out plaques and such to the "best" in the company, but those plaques are not just for those who earn the most, but also to those who "serve" the best. Sometimes those are the same people, sometimes they are not, but never in my decade in this industry have I seen service given the same amount of applause from a company as earnings.
The next time you're talking to a real estate agent here locally, ask them if they have heard of Axiom and ask them what they think of the company. I submit that if they haven't heard of Axiom, they haven't done much business.
Oh, and my mentor, Ron? He now works at Axiom as well. He sold American West Lending to Axiom just about the time he called me, then working at Chase, and asked, "Have you ever heard of Axiom Financial....?"
Wednesday, February 16, 2011
FHA rules...they are a changin'
FHA Annual Mortgage Insurance Premiums will Increase this April
In a statement released yesterday, FHA Commissioner David H. Stevens announced a new premium structure for FHA-insured mortgage loans increasing its annual mortgage insurance premium by a quarter a percentage point (.25) on all 30 and 15 year loans. The upfront MIP will remain unchanged at 1.0 percent. Commissioner Stevens stated:
“After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market,” said Stevens. “This quarter point increase in the annual MIP is a responsible step towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.”
What does all of this mean to you, the borrower? Well, the upfront mortgage insurance stays at 1% of the loan amount, which is financed into your loan. The monthly (what they call annual mortgage insurance premium, which you pay in monthly installments as part of your payment) will increase by 25 basis points on a 30 year loan. The change happens on a 15 year loan as well, but how many people actually use a 15 year FHA loan? So, on a $200,000 loan, your monthly payment goes up almost $50. Doesn't seem like much, but for a lot of people this could make the difference between qualifying for loan or not qualifying because of the effects on their debt-to-income ratio.
Do you think it will make a difference for you? Then let's get you pre-qualified and get ahold of your Realtor and get you in that house you've wanted.
In a statement released yesterday, FHA Commissioner David H. Stevens announced a new premium structure for FHA-insured mortgage loans increasing its annual mortgage insurance premium by a quarter a percentage point (.25) on all 30 and 15 year loans. The upfront MIP will remain unchanged at 1.0 percent. Commissioner Stevens stated:
“After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market,” said Stevens. “This quarter point increase in the annual MIP is a responsible step towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.”
What does all of this mean to you, the borrower? Well, the upfront mortgage insurance stays at 1% of the loan amount, which is financed into your loan. The monthly (what they call annual mortgage insurance premium, which you pay in monthly installments as part of your payment) will increase by 25 basis points on a 30 year loan. The change happens on a 15 year loan as well, but how many people actually use a 15 year FHA loan? So, on a $200,000 loan, your monthly payment goes up almost $50. Doesn't seem like much, but for a lot of people this could make the difference between qualifying for loan or not qualifying because of the effects on their debt-to-income ratio.
Do you think it will make a difference for you? Then let's get you pre-qualified and get ahold of your Realtor and get you in that house you've wanted.
Monday, February 14, 2011
What a expert thinks about the future of the housing market
Listen to what William Gross, Chairman of Pimco, the largest bond mutual fund, says about the future of the housing market.
If you're waiting to buy a home, then NOW is the time. Don't just assume you won't qualify. Let's find out. What's the worst that can happen....that you have more knowledge on what you need to do to qualify?
Here's what Bill has to say:
William Gross on the Housing Market
If you're waiting to buy a home, then NOW is the time. Don't just assume you won't qualify. Let's find out. What's the worst that can happen....that you have more knowledge on what you need to do to qualify?
Here's what Bill has to say:
William Gross on the Housing Market
Tuesday, February 8, 2011
Friday, February 4, 2011
Kid Friendly Enchiladas
This recipe is one that my kids like because it is made with hamburger and is not too spicy at all, but has a good flavor.2 lb ground beef or chuck
2 cups grated cheese (cheddar or colby jack)
2 10oz cans of your favorite enchilada sauce
2 10 oz cans, cream of mushroom soup
2 10 oz cans, tomato soup
1 small onion, diced
1 small can green chilies, chopped (substitute jalapenos if you want more spice)
24 white corn tortillas
paper towels (you'll see why...)
(Yes, this is a "Duke family sized" recipe!)
In a large mixing bowl, combine all six cans of enchilada sauce and soups. Pour 1/2 of the sauce into the bottom of two 9x13 pans and set aside.
Brown meat in a large skillet (we use our countertop GE skillet rather than a frying pan on the stove top), adding onion and green chilies. When brown, add 2/3 or grated cheese to meat mixture and warm until melted. Unplug skillet and prepare your tortilla "line-up."
We go right to left from our stove to counter because our kitchen is set up this way, yours may be different:
Heat a small, non-stick frying pan and enough oil to entirely cover the tortillas. Gently submerge one tortilla at a time with a pancake turner and remove, placing on a paper towel covered plate. "Wipe" excess oil from tortilla, put 1 tablespoon of meat mixture, roll, and place into sauce-lined pan. Repeat. We get from 12-14 in a pan. (You may go through half a roll of paper towels during this process!)
Cover rolled enchiladas with remainder of sauce and cheese. Bake, covered with aluminum foil, 375 for 25-30 minutes.
Enjoy!
How to Improve Your Credit Score
Credit Score Tips
Your Credit Score is a key factor in homeownership. The quickest way to improve your score is to call your Axiom Mortgage Consultant and enroll in our credit improvement program. They will provide specific steps for the fastest way for you to improve your credit score. It's the key to making your home-buying dreams a reality.
The Basics Of Credit Score Improvement
Re-establishing credit and making payments on time after a period of late payment behavior will help you raise your score over time.
- Make payments on time on multiple accounts
- A small balance without a missed payment is better than no balance at all
- Keep your oldest account open, even if you are no longer using it.
- It is not necessary to have a large mix of credit accounts, but too many of one (i.e. credit cards) could tip the scale.
- Do not open accounts you don't intend to use
- Consolidating your credit cards into one account and then closing the other accounts can actually hurt your score, especially if they are older accounts. Keep those accounts open if you are disciplined enough to not run them up again. One of the factors of a good credit score is "percentage used of available credit."
Homebuyer Tax Credit--Still in Play for our Military and Federal Employees
Our armed forces and government employees who have been deployedoverseas still have time to take advantage of this program. April 30, 2011 is
the deadline for contracting to purchase a home, closing by June 30, 2011.
Individuals who have served official extended duty outside of the United
States for at least 90 days between December 31, 2008 and May 1, 2010 are
eligible for the extended tax credit program. This includes members of the
uniformed services, foreign services (for the United States) and intelligence
service employees.
The tax credit requires the property to remain a primary residence for at
least three years in order to avoid repayment. However, for those eligible
this repayment is waived when required to sell home due to military or
government orders for qualified official extended duty service more than 50
miles away from their primary residence for more than 90 days. For more
information, just give me a call.
Paying Extra Principal--Does it Really Help?
You’ve probably heard that putting extra money toward your principal can cut years off your mortgage. Even small amounts add up over time and can make a sizeable difference. For example, below are the results of paying extra on a $200,000 mortgage at 4.5% with a 30 year term:
Extra Monthly Principal Years Saved Interest Savings
$50 2.75 $17,700
$100 5.00 $31,745
$150 6.92 $43,204
$200 8.50 $52,755
This may not necessarily be the best use of extra cash for homeowners who
aren’t planning to stay in their home for a long period of time. If you’re
planning to stay in your home you may want to plan for how soon you could
be mortgage-free. Do you want to know how many years your extra cash may
shave off your mortgage? Just give me a call and I’ll help you figure out a plan that will work for you.
Extra Monthly Principal Years Saved Interest Savings
$50 2.75 $17,700
$100 5.00 $31,745
$150 6.92 $43,204
$200 8.50 $52,755
This may not necessarily be the best use of extra cash for homeowners who
aren’t planning to stay in their home for a long period of time. If you’re
planning to stay in your home you may want to plan for how soon you could
be mortgage-free. Do you want to know how many years your extra cash may
shave off your mortgage? Just give me a call and I’ll help you figure out a plan that will work for you.
This home is being offered by Colleen from Equity Realty. Click on the link to see this and any of Colleen's listings.
High credit score, but lower down payment?
http://www.axiomfinancial.com/new-low-down-on-conventional-loan.htm
For a long time, lenders have only had the option of FHA for a "low down payment option." As of now, Axiom has a low down payment option for those who don't want an FHA loan to purchase. Unlike FHA, when 20% equity is reached, the monthly mortgage insurance payment goes away (FHA requires you to pay for at least 5 years, even if you have a large lump sum that drops you down to under 80%). There is even an option for SELLER PAID mortgage insurance if you qualify.
Give me a call and we'll discuss if this option is right for you.
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