Does Experience Matter?

Does experience matter? Hello. I wanted to do a video talking about experience. The experience of your loan officer. How long have they been in business? Does experience matter? What does it get you? Is it a rate quote? Just a rate quote and, “Hey, I’m qualified. What does the rest matter?” So, I could do hours of video on this. I’m going to try and condense it as much as possible. The guideline changes that we get from the governmental agencies that write the mortgage guidelines. Fannie Mae, Freddie Mac, FHA and VA have numerous, frequent, and fast paced changes. You wouldn’t believe the pace that the guidelines change and the density of the guidelines. The things that we have to know, it’s encyclopedic.

And I am constantly, literally daily referencing some resource to look for the latest guideline. Am I going to get my client in trouble by saying they’re approvable when they’re not? Looking at things that it may not make sense to you. But they’ll make sense to us in the lending industry. Like minimum trade-line requirements, cash reserves requirements, debt ratios, credit scores, mortgage insurance costs, which are related to credit scores, your PMI cost, private mortgage insurance going up or down depending on your credit score.

Does Experience Matter if you own rental property or are self employed?

Rental property, when someone has rental property. What does that mean? How do you analyze their rent? What do you count for cash flow? Is a rental property cash flow positive or cash flow negative? It might look cash flow positive on your tax returns. But may not be that way when a mortgage lender analyzes it. Because we use different metrics and different ways to measure rent.

I could go on and on. And don’t get me started on if you’re self-employed. Wow, really complicated. Not impossible to do loans for people with rental property and who are self-employed and who have complicated scenarios all the time. But it really takes a great deal of research. And that’s why I’m speaking about professionalism and education and experience. And does experience matter?!

How long have I been at it?

I’ve been in the business since 1986. I can’t believe it’s been that long, I feel like I’m at the height of my game, and that I really know what I’m doing. But I don’t know everything. I’m constantly going back, talking to underwriters, looking at resource material. What are the current guidelines on a certain scenario. It seems like nobody has a vanilla scenario. Everybody has a curve ball. Where they’re getting their cash from, is it an allowable source? Maybe they’re pushing the debt ratios and the limits on debt ratios, and are we going to get that loan through.

And there’s just an enormous amount of attention to detail. It’s an attention to detail business. So, when you’re looking at lenders, I would certainly consider experience. It’s not just about the rate quote. Sometimes I have people say, “What’s your rate quote?” Okay, who are you? Where are you buying? Could we talk a little bit first? What are you looking to buy? Is it a condo or a house because your rate quote is different for a condo than a house. Rates are a little higher for a condo. Are you qualified? What’s your credit score? There’s a whole conversation to have. Some people don’t place any value or emphasis on experience, education, reviews, background, how do these people perform, how are they proven to perform. Look for reviews.

Are you going to get the education you need?

Experience is really critical. I don’t want to say that, “Oh, I’m really experienced.” Which I am. I’ve been doing this for decades. But I just want to make a point that you need to consider experience. Most mortgage transactions are so complicated. The mortgage horror stories are legendary. And to avoid being a mortgage horror story, you really need to bake into the equation of deciding on what lender to work with, experience, as well as terms.

And are they going to educate you? Are they responsive? Lots of service providers are great on the intake when they want your business. But then when they have it, maybe they’re not so responsive. So, you have a tough decision to make. And I think experience really helps you make it. So look at people’s experience. Let me know if you have any questions of me related to this topic or any others. Always happy to talk. Thank you.