November 27, 2024 • 22 mins
In this episode of Loan Officer Training, we dive into the art of mastering the initial sales call—a critical step in building trust and setting the foundation for a successful client relationship. Learn how to ask the right questions, uncover your client’s financial goals, and position yourself as the trusted advisor they need.
From crafting a compelling introduction to handling objections with confidence, we’ll equip you with the tools and strategies to turn prospects into loyal clients. Tune in and take your sales calls to the next level!
Join The Mortgage Calculator at https://themortgagecalculator.com/join
About The Mortgage Calculator:
The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as over 5,000 Non-QM mortgage loan programs using alternative income documentation!
Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!
Our team of over 350 licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statement Mortgages, P&L Mortgages, Asset Based Mortgage Programs, No Ratio CDFI Loan Programs, DSCR Investor Mortgages, Commercial Mortgages, Fix and Flip Mortgages and thousands more!
Our Mortgage Loan Originators are trained to be loan consultants to guide borrowers throughout the entire loan process. A licensed Loan Officer is only a phone call or zoom meeting away and always available to assist borr
Loan Officers for Unlimited Free Non-QM Leads & Trainings Join The Mortgage Calculator at https://themortgagecalculator.com/join
The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as thousands of Non-QM mortgage loan program variations using alternative income documentation!
Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!
Our team of licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as ac
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Restream recording Nov 27, 2 (00:00):
So let's get right into it for
mastering the initial sales callfor loan officers.
And I see we got a full housetoday.
That is amazing.
So, first, uh, thing to beconcerned about here is
completing the initialassessment, right?
(00:22):
Uh, that's when you make thecall, uh, certain things, uh, to
consider here.
First and foremost, remember,uh, always be a loan consultant
and add value to thetransaction.
There are hundreds of thousandsof licensed loan officers in the
(00:42):
United States, but not everyloan officer who, and not every
licensed loan officer.
Is a loan consultant, you know,simply, uh, we have application
takers out there that all theydo is just Take the application
or make the initial call andthey pass the baton down the
road and that's it.
(01:03):
No more contact with that, uh,with that borrower.
And we have our loan consultantsthat assist the borrower
throughout the process,especially at the initial call,
when we are sizing up the deal,providing, uh, a consultation on
what is the best course ofaction.
(01:25):
That's how we train our loanofficers here.
at the mortgage calculator to beloan consultants and add value
to the transaction.
Because remember, you only getone chance to make a first
impression.
We want to make a good, we wantto make a great first
(01:45):
impression.
You want to gather as muchinformation as possible to
determine the viable programoptions for the borrower before
a quote is sent.
So this is very important toknow because the purpose of
calling the borrower is not justto let them know you exist, tell
(02:07):
them, thank you, I see yourinformation.
Let me send you some quotes andthen talk to them about.
What are the viable options?
Because in that case, you mayhave sent a non relevant quote
to that borrower, or prospectiveborrower at this point, use your
contact, and then they may startan application for a program
(02:28):
that they really wouldn't applyfor.
Uh, and that's not applicable tothem, and then you may end up
having to cancel the applicationbecause it just could not go
anywhere because they nevershould have received that quote
in the first place.
Remember, borrowers are not thelicensee.
We're the licensee.
(02:48):
If they receive stuff from you,they're going to assume, unless
informed otherwise, that that'sthe viable option for them to
click on.
They're going to be really happyto get it.
Then you know they're going toclick away and they're going to
submit that application.
So just make sure that youfollow the steps that we're
going to, uh, detail here.
(03:10):
So, uh, first thing is determinethe transaction type.
Now, some of this may sound alittle bit, you know, mundane,
but believe me, connect thedots, you know, dot your I's,
cross your T's, and, uh, stay onthe right path and you'll do
okay.
So Determine if it's a purchaseor a refinance, right?
(03:33):
Transaction type.
Now, you want to discuss withthem four components of the
transaction, right?
First component you want todiscuss is credit, right?
You want to ask them, what istheir credit score?
How many trade lines do youhave, right?
(03:55):
Open trade lines, closed tradelines, a year, two years,
because remember we have in somecases minimum credit score
requirements and in some caseswe have minimum trade line
requirements.
You just want to get a picture.
Of what you're dealing with youwant to find out if there's any
credit events Uh, you want toask them what is their minimum
(04:15):
monthly payment on liabilitiesbecause for all intents and
purposes this initial phone callIs our pre qual where we are pre
qual pre qualifying the borrowernot to issue a letter or
anything Just as we ask thesequestions to know which are the
relevant options that we'regoing to be able to provide, uh,
to, on our path to issuing ourpre approval, right?
(04:39):
We prequal them on the phone,find out what's viable options.
So we're going to talk aboutcredit because I want to know
what the minimum monthlypayments are.
I want to know, I want to knowwhat their total liabilities are
so that when I ask them, what istheir income and I know what is
the purchase price on theproperty that they're looking
to, to do, like if there's, ifit's a purchase.
(05:02):
You're going to ask them, do youhave a price in mind?
Have you been looking at homesin a certain neighborhood that
you have an idea of what is theamount or if it's a refi, you
know, what is the amount thatthey're looking to refinance if
it's a written term or ifthey're also looking to
consolidate some additionaldebt.
Now, remember, DSCR loans, notapplicable for debt
(05:22):
consolidation.
Just throw that out there.
So again, we got the creditinfo, we got liabilities, then
we go into income.
Oh, and when you're talkingabout credit, this is probably
one of the most importantcomponents because we want to
vet the credit as much aspossible.
So ask them, where did theyobtain their credit scores that
(05:43):
they're providing to you?
Have they had the credit reportrecently pulled?
Do they have any of the appslike Credit Karma or the
Experian app where they can atleast provide an idea of what
their credit scores are andliabilities are.
So then we're talking aboutincome.
Are they self employed?
Are they an employee?
Are they salaried?
Hourly?
(06:03):
Is there any type of variableincome like overtime,
commission, tips, bonuses?
These are all things you'regoing to ask and you're going to
be taking your notes becauseyou're going to be calculating
some DTI there quickly as theygive you this information.
If they are self employed,discuss the need for tax returns
if full dock.
(06:24):
Uh, and if self employed,discuss the need for tax returns
if full dock.
And alt income doc options suchas bank statement and P and L,
the SCR, uh, find out what arethe available assets for the
transaction as needed, right?
Uh, sourcing, seasoning, gifts,possible reserve requirements.
(06:46):
And we're going to talk aboutthe property.
What's the seasoning untitled bythe seller.
If it's a purchase or borrower,if it's a refinance, what are
the number of units and what arethe, what is the property
condition?
Because you want to know, is itcurrently under renovation?
Cause it's not the first timewe've had an appraiser show up
at a property for a refi and anFHA deal.
(07:07):
It turns out the property isunder total renovation, missing
kitchen cabinets, bathrooms, andthe bar is like.
Well, I was gonna use the moneyto finish the renovation.
So had you asked them that, thenyou would've known that what
they really needed was an FHA 20 3 K renovation loan.
(07:28):
So, uh, discuss then determinethe program options.
Now you've gathered some initialinformation, you're talking to
the borrower, you wanna discusswhat their expectations are.
Versus what may or may not bepossible after your initial
assessment.
Cause remember a properassessment aligned with
(07:50):
realistic expectations equals aclosed loan.
You want to empower the borrowerwith information and knowledge
to allow for an intelligentdecision.
and create future referrals.
Now, I also, I already touchedbase on the analysis.
Doesn't hurt to throw it on hereagain, because when we are doing
(08:10):
the analysis, we also want totouch base on occupancy.
Is it a primary home, secondhome, or is it an investment
property?
When we talk about the credit,besides the score and credit
events, minimum payments onliabilities, and one that I left
off the list there, Disputedaccounts.
Are there any disputed accounts?
Because remember, if there aredisputed accounts, that may give
(08:33):
you an issue with your agencyloans, right?
It may not give you an approvalon a conventional loan.
It may tell you, yeah, you'reapproved, but you got disputed
accounts that we can't, uh, takeinto consideration, and your,
uh, AUS approval is not valid.
Manual underwrite, which doesn'texist for conventional.
So now you got to talk to theborrower about getting those
(08:55):
disputed accounts off thecredit.
If it's an FHA loan and yourdisputed accounts are over a
thousand dollars in total, uh,then you also have to downgrade
to a manual underwrite.
That's really very important tofind out about disputed
accounts.
And again, the income.
Besides asking them thosequestions you want to find out
have they even filed tax returnsin the last two years because if
(09:17):
they haven't then you know fulldoc with tax returns is not an
option and when we talk aboutthe assets besides what's
available and seasoning we wantto talk about are they expecting
any gifts and have those giftsalready been transferred because
we want to make sure we haveproper documentation of any gift
transfers if they gave it tothem in cash oh yeah my mom gave
me four thousand dollars and shejust gave me the cash and I put
(09:39):
it in my account.
You may have an issue because ifyou can't directly show a 4, 000
debit from the mother's accountto match the 4, received on that
date.
You're going to have a real bigproblem documenting the 4, 000.
And then again, we touch base onthe property, right?
What's the value?
What's the condition?
Does it need renovation?
(10:00):
Now, if it's an agency loan, doremember that a conventional
FHA, VA, and USDA all haveselling guides.
Those selling guides are prettygeneric for each loan type.
They vary a little bit in termsof the overlays that the
different investors or lendersmay put on the loans that they
(10:23):
purchase, but the sellingguides, the guidelines for those
loan types do not change.
They are what they are, but dobe aware that there are
overlays.
Um, If you're going agency loan,is it something where you got an
automated approval or do youthink you're gonna have to go
manual underwrite, which for FHAVA and USDA is gonna be lower,
(10:47):
uh, DTIs for a manualunderwrite?
Um, make sure you look at theminimum credit score
requirements and agency loans,but do be aware that in the end
it's subject to, uh, a US.
But you do know, for example,uh, you know, probably below a
620, you're not going to getanything on a conventional loan.
And below 580 and an FHA, it's aminimum 10 percent down payment.
(11:10):
So they start telling you someof, you know, uh, as it
develops, be aware, uh, of theflow of the loan.
And again, we did touch ondisputed accounts.
If it's non QM, Please be awarethat all non QM guidelines are
specific to the investor chosen,which means that you cannot
(11:32):
generalize.
The scenario, for example, for aDSCR loan, you know, you can't
say, hey, for a DSCR loan, can aborrower, um, operate the
property as a short term rentalif they just bought the property
four months ago, and they juststarted doing short term rentals
two months ago, and they don'thave any prior experience as an
(11:53):
investor.
If that's the situation, then,then, you know, that, um, um,
you, um, you know, that's just,they're all separate.
So you, you, you have to go tothe specific guideline for the
investor.
Uh, that you chose and reviewthe guidelines for that specific
(12:15):
topic, because I'm going to tellyou.
They do vary.
Some investors, if you're usingshort term rentals, require the
borrower to have previousexperience as an investor,
regardless of short term rentalexperience, just investor
experience renting.
So, if they're a first timeinvestor buying that property
and they're going to operate itas short term rental, you have
to make sure you choose theright investor because some
(12:36):
outlets don't.
will not allow it.
And then if you submit the loanthere, you'll be sort of
disappointed when your loancomes back as a suspense, can't
approve it because of ours doingshort term rental and they don't
have experience.
So then you may have todefinitely will have to pivot
there to another outlet tosubmit your loan.
And then obviously non QM, youhave multiple income types.
(12:59):
It could be all dark.
It could, it could be, you know,all dock a P& L, bank statement,
DSCR, asset utilization it, uh,or it could be full dock.
And remember, full dock, uh,could be self employed borrowers
as well.
I mean, just because they'reself employed doesn't
automatically mean that youcan't do them full dock with tax
returns.
(13:19):
It doesn't automatically meanthat you have to do them, uh,
non QM, right?
Agency loans are self, have selfemployed borrowers too.
You just ask for their taxreturns.
And then if there's a coborrower, is that co borrower
going to be an occupant?
or a non occupant because thathas a lot of repercussions,
(13:40):
especially on an FHA loan, ifit's an occupant, a co borrower,
or non occupant co borrower.
And last but not least, right,you've done your analysis,
you've done your review, checkthe guidelines, now you have to
send Buyable quote options andfollow up with your borrower.
(14:02):
This happens at the end afteryou've done everything.
Don't hastily want to sendquotes.
Now, what I like to do is if I'mhaving a good conversation with
the customer, I'm taking mynotes.
We've built up some greatrapport.
I may already be able to load upsome quotes.
I mean, I would say a little bitmore experienced than your
typical MLO, but I love beingable to send quotes to the
(14:25):
borrower.
While I have them still on thephone, right, they're getting
the quotes and we're discussingthe quotes while I have them on
the phone if they're if they'rereally into it and they're
really serious.
You know, you got the rapportgoing.
They're not telling you, Hey,Jose, I gotta go.
I'm busy and I gotta go walk mydog or something like that.
There you've engaged them.
(14:46):
Take the time to review.
And if you feel that you're ableto, based on the information
that they provided and that youdon't have to do any, you know,
real deep research becausethere's no, um, odd scenario,
then send them the quotes whileyou have them on the phone.
Get feedback from them becausethey may like it right then and
there and tell you Jose I likethat one in which case then
(15:06):
they're either going to clickthe start my loan application
button or you're going to clickstart loan for them to set so
that they receive the link sothey can uh start the
application upload theirdocuments and submit the
application right but rememberyou're going to review the
specific guidelines for the loanOption being sent because all
non QM guidelines are unique toeach investor and agency
(15:29):
guidelines have investoroverlays.
It's very important to make surethat your quotes are relevant to
the borrower's objective andqualification.
Do not send them random quotesafter you've spoken with them
and you've determined what theyneed.
Because then they're, they maybe a little bit disappointed and
not take you seriously and makesure to send multiple options,
(15:51):
right?
Multiple options for loan tovalue, right?
With different down paymentoption.
Even if they asked you for a 25percent down 75 percent LTV DSCR
loan, I would also send them an80 percent and an 85 percent
just in case they know what'sthere in case somebody else
offers it to them and theydidn't know it existed.
And then you never hear backfrom them.
It's because they didn't thinkthat you could do the 15 percent
(16:13):
down option.
Uh, make sure you send multipleoption quote, multiple quote
options for income types, uh,especially if they're self
employed, right?
Cause, uh, you don't, youhaven't reviewed their tax
returns.
And if they didn't tell you, Ihaven't done tax returns in two
years.
Then for that self employedborrower, I would send them a
full doc and at least a bankstatement, maybe a DSCR loan as
(16:37):
well, if it's an investmentproperty.
Uh, and again, if it's aninvestment property, non QM,
make sure you send them multipleprepayment options as well.
I've seen too many cases thatprepayment option is on, is
zero.
And I've asked the MLO, why didyou only send one option with no
prepay?
And they say, well, that's,that's what the customer asked
for.
And I'm like, yeah, but you wantto send them the additional
(17:00):
prepayment options so they canput into perspective the higher
cost of the zero prepay.
Cause maybe they'll opt for aone or three or a five.
And they see that it's asubstantial savings in their
monthly payment.
They don't know.
Remember, they're not thelicensee.
We're the licensee.
They're not totally aware of allthe options that are out there.
And like I just previouslystated, self employed borrowers
(17:20):
can qualify for agency loan,doesn't have to be non QM,
doesn't have to be a bankstatement.
But also note that if they wantto close in an LLC, then you got
to go non QM.
And also remember, DSCR loanscan close in a personal name.
I've seen it where in somecases, a borrower is being told
(17:42):
that they got to close in anentity.
If it's a DSLR loan, and that'sabsolutely not true, it can be a
personal name or it can beclosing in an entity.
And last but not least, makesure you, if you did not send a
quote to the borrower while youhad them on the phone, then
please make sure that you followup with a phone call immediately
(18:03):
after sending the quotes, unlessyou sent the quotes at 11
o'clock at night or 12 o'clockat night, make sure that you
follow up with a phone callimmediately after sending the
quotes to ensure that theyreceive the quotes.
To discuss the details, buildrapport and hopefully, uh,
cement the deal and get thatloan application submitted.
So are there any questions?
(18:25):
Cause we covered some prettygood information here.
This is a good, uh, flow, uh,for a call that I would love
everyone to follow when at allpossible.
I know sometimes borrowers, uh,don't want to stay on the phone.
They may be in a hurry, but ifyou see that they're engaged,
you should not be in a hurry.
To hang up just'cause you wannasend a quote, get all the
(18:46):
relevant information, uh, so youcan provide a thorough and, and,
uh, relevant analysis.
Send viable quote options andget a good loan.
Applications.
You do not want borrowersapplying for a loan without you
having discussed it with them,hopefully, and definitely
without you having sent somerelevant quotes to the borrower.
(19:06):
Do not just send the borroweryour, your application link.
You want them to apply, talk tothem, find out what they need,
or if they texted you and toldyou what they need, or if they
emailed you and told you whatthey need, that's okay.
Then send them the relevantquotes, then follow up so that
they start a relevant and viableloan.
So I don't see any questions.
(19:27):
I'm going to give it a minute,uh, see if any questions come
in.
Uh, yeah, we'll, we'll have, uh,copies of this, uh, to, uh, to
our system.
Uh, this, uh, you know, uh, oneof our, I was going to know, is
there a summary of this in theKnowledge Center?
Uh, this presentation will be,uh, uploaded.
(19:52):
Plus, we record all of thesetrainings.
All right.
So, any questions regarding thetopic?
Uh, because yes, we do, Ialready answered that we do have
a summary.
Uh, we will be uploading, uh, wedo upload the presentations.
(20:15):
Okay, well, I don't see anyquestions on, on the, um, actual
topics that I covered.
Yes, we, you can get a copy.
All right, well, I'll give youanother minute.
People think about yourquestions.
(20:36):
Alright, I don't think we haveany additional specific
questions regarding the subjectmatter.
Anybody need any clarificationon the processes that I
explained for when you aremaking the calls?
Oh, all right.
Well, yeah, I think I was prettythorough and detailed.
(20:57):
So, um, hopefully you guys gotsomething out of this.
If you follow this flow, I canguarantee you you're going to
get, you're going to build morerapport.
You're going to engage moreborrowers.
You're going to send betterquotes.
You're going to get morerelevant loan applications.
You're going to get more closeloans.
So everybody have a great day.
We don't have any trainingtomorrow because we have a
(21:21):
great.
Thanksgiving with your familyand loved ones.
So let's get right into it for
mastering the initial sales callfor loan officers.
And I see we got a full housetoday.
That is amazing.
So, first, uh, thing to beconcerned about here is
completing the initialassessment, right?
(00:22):
Uh, that's when you make thecall, uh, certain things, uh, to
consider here.
First and foremost, remember,uh, always be a loan consultant
and add value to thetransaction.
There are hundreds of thousandsof licensed loan officers in the
(00:42):
United States, but not everyloan officer who, and not every
licensed loan officer.
Is a loan consultant, you know,simply, uh, we have application
takers out there that all theydo is just Take the application
or make the initial call andthey pass the baton down the
road and that's it.
(01:03):
No more contact with that, uh,with that borrower.
And we have our loan consultantsthat assist the borrower
throughout the process,especially at the initial call,
when we are sizing up the deal,providing, uh, a consultation on
what is the best course ofaction.
(01:25):
That's how we train our loanofficers here.
at the mortgage calculator to beloan consultants and add value
to the transaction.
Because remember, you only getone chance to make a first
impression.
We want to make a good, we wantto make a great first
(01:45):
impression.
You want to gather as muchinformation as possible to
determine the viable programoptions for the borrower before
a quote is sent.
So this is very important toknow because the purpose of
calling the borrower is not justto let them know you exist, tell
(02:07):
them, thank you, I see yourinformation.
Let me send you some quotes andthen talk to them about.
What are the viable options?
Because in that case, you mayhave sent a non relevant quote
to that borrower, or prospectiveborrower at this point, use your
contact, and then they may startan application for a program
(02:28):
that they really wouldn't applyfor.
Uh, and that's not applicable tothem, and then you may end up
having to cancel the applicationbecause it just could not go
anywhere because they nevershould have received that quote
in the first place.
Remember, borrowers are not thelicensee.
We're the licensee.
(02:48):
If they receive stuff from you,they're going to assume, unless
informed otherwise, that that'sthe viable option for them to
click on.
They're going to be really happyto get it.
Then you know they're going toclick away and they're going to
submit that application.
So just make sure that youfollow the steps that we're
going to, uh, detail here.
(03:10):
So, uh, first thing is determinethe transaction type.
Now, some of this may sound alittle bit, you know, mundane,
but believe me, connect thedots, you know, dot your I's,
cross your T's, and, uh, stay onthe right path and you'll do
okay.
So Determine if it's a purchaseor a refinance, right?
(03:33):
Transaction type.
Now, you want to discuss withthem four components of the
transaction, right?
First component you want todiscuss is credit, right?
You want to ask them, what istheir credit score?
How many trade lines do youhave, right?
(03:55):
Open trade lines, closed tradelines, a year, two years,
because remember we have in somecases minimum credit score
requirements and in some caseswe have minimum trade line
requirements.
You just want to get a picture.
Of what you're dealing with youwant to find out if there's any
credit events Uh, you want toask them what is their minimum
(04:15):
monthly payment on liabilitiesbecause for all intents and
purposes this initial phone callIs our pre qual where we are pre
qual pre qualifying the borrowernot to issue a letter or
anything Just as we ask thesequestions to know which are the
relevant options that we'regoing to be able to provide, uh,
to, on our path to issuing ourpre approval, right?
(04:39):
We prequal them on the phone,find out what's viable options.
So we're going to talk aboutcredit because I want to know
what the minimum monthlypayments are.
I want to know, I want to knowwhat their total liabilities are
so that when I ask them, what istheir income and I know what is
the purchase price on theproperty that they're looking
to, to do, like if there's, ifit's a purchase.
(05:02):
You're going to ask them, do youhave a price in mind?
Have you been looking at homesin a certain neighborhood that
you have an idea of what is theamount or if it's a refi, you
know, what is the amount thatthey're looking to refinance if
it's a written term or ifthey're also looking to
consolidate some additionaldebt.
Now, remember, DSCR loans, notapplicable for debt
(05:22):
consolidation.
Just throw that out there.
So again, we got the creditinfo, we got liabilities, then
we go into income.
Oh, and when you're talkingabout credit, this is probably
one of the most importantcomponents because we want to
vet the credit as much aspossible.
So ask them, where did theyobtain their credit scores that
(05:43):
they're providing to you?
Have they had the credit reportrecently pulled?
Do they have any of the appslike Credit Karma or the
Experian app where they can atleast provide an idea of what
their credit scores are andliabilities are.
So then we're talking aboutincome.
Are they self employed?
Are they an employee?
Are they salaried?
Hourly?
(06:03):
Is there any type of variableincome like overtime,
commission, tips, bonuses?
These are all things you'regoing to ask and you're going to
be taking your notes becauseyou're going to be calculating
some DTI there quickly as theygive you this information.
If they are self employed,discuss the need for tax returns
if full dock.
(06:24):
Uh, and if self employed,discuss the need for tax returns
if full dock.
And alt income doc options suchas bank statement and P and L,
the SCR, uh, find out what arethe available assets for the
transaction as needed, right?
Uh, sourcing, seasoning, gifts,possible reserve requirements.
(06:46):
And we're going to talk aboutthe property.
What's the seasoning untitled bythe seller.
If it's a purchase or borrower,if it's a refinance, what are
the number of units and what arethe, what is the property
condition?
Because you want to know, is itcurrently under renovation?
Cause it's not the first timewe've had an appraiser show up
at a property for a refi and anFHA deal.
(07:07):
It turns out the property isunder total renovation, missing
kitchen cabinets, bathrooms, andthe bar is like.
Well, I was gonna use the moneyto finish the renovation.
So had you asked them that, thenyou would've known that what
they really needed was an FHA 20 3 K renovation loan.
(07:28):
So, uh, discuss then determinethe program options.
Now you've gathered some initialinformation, you're talking to
the borrower, you wanna discusswhat their expectations are.
Versus what may or may not bepossible after your initial
assessment.
Cause remember a properassessment aligned with
(07:50):
realistic expectations equals aclosed loan.
You want to empower the borrowerwith information and knowledge
to allow for an intelligentdecision.
and create future referrals.
Now, I also, I already touchedbase on the analysis.
Doesn't hurt to throw it on hereagain, because when we are doing
(08:10):
the analysis, we also want totouch base on occupancy.
Is it a primary home, secondhome, or is it an investment
property?
When we talk about the credit,besides the score and credit
events, minimum payments onliabilities, and one that I left
off the list there, Disputedaccounts.
Are there any disputed accounts?
Because remember, if there aredisputed accounts, that may give
(08:33):
you an issue with your agencyloans, right?
It may not give you an approvalon a conventional loan.
It may tell you, yeah, you'reapproved, but you got disputed
accounts that we can't, uh, takeinto consideration, and your,
uh, AUS approval is not valid.
Manual underwrite, which doesn'texist for conventional.
So now you got to talk to theborrower about getting those
(08:55):
disputed accounts off thecredit.
If it's an FHA loan and yourdisputed accounts are over a
thousand dollars in total, uh,then you also have to downgrade
to a manual underwrite.
That's really very important tofind out about disputed
accounts.
And again, the income.
Besides asking them thosequestions you want to find out
have they even filed tax returnsin the last two years because if
(09:17):
they haven't then you know fulldoc with tax returns is not an
option and when we talk aboutthe assets besides what's
available and seasoning we wantto talk about are they expecting
any gifts and have those giftsalready been transferred because
we want to make sure we haveproper documentation of any gift
transfers if they gave it tothem in cash oh yeah my mom gave
me four thousand dollars and shejust gave me the cash and I put
(09:39):
it in my account.
You may have an issue because ifyou can't directly show a 4, 000
debit from the mother's accountto match the 4, received on that
date.
You're going to have a real bigproblem documenting the 4, 000.
And then again, we touch base onthe property, right?
What's the value?
What's the condition?
Does it need renovation?
(10:00):
Now, if it's an agency loan, doremember that a conventional
FHA, VA, and USDA all haveselling guides.
Those selling guides are prettygeneric for each loan type.
They vary a little bit in termsof the overlays that the
different investors or lendersmay put on the loans that they
(10:23):
purchase, but the sellingguides, the guidelines for those
loan types do not change.
They are what they are, but dobe aware that there are
overlays.
Um, If you're going agency loan,is it something where you got an
automated approval or do youthink you're gonna have to go
manual underwrite, which for FHAVA and USDA is gonna be lower,
(10:47):
uh, DTIs for a manualunderwrite?
Um, make sure you look at theminimum credit score
requirements and agency loans,but do be aware that in the end
it's subject to, uh, a US.
But you do know, for example,uh, you know, probably below a
620, you're not going to getanything on a conventional loan.
And below 580 and an FHA, it's aminimum 10 percent down payment.
(11:10):
So they start telling you someof, you know, uh, as it
develops, be aware, uh, of theflow of the loan.
And again, we did touch ondisputed accounts.
If it's non QM, Please be awarethat all non QM guidelines are
specific to the investor chosen,which means that you cannot
(11:32):
generalize.
The scenario, for example, for aDSCR loan, you know, you can't
say, hey, for a DSCR loan, can aborrower, um, operate the
property as a short term rentalif they just bought the property
four months ago, and they juststarted doing short term rentals
two months ago, and they don'thave any prior experience as an
(11:53):
investor.
If that's the situation, then,then, you know, that, um, um,
you, um, you know, that's just,they're all separate.
So you, you, you have to go tothe specific guideline for the
investor.
Uh, that you chose and reviewthe guidelines for that specific
(12:15):
topic, because I'm going to tellyou.
They do vary.
Some investors, if you're usingshort term rentals, require the
borrower to have previousexperience as an investor,
regardless of short term rentalexperience, just investor
experience renting.
So, if they're a first timeinvestor buying that property
and they're going to operate itas short term rental, you have
to make sure you choose theright investor because some
(12:36):
outlets don't.
will not allow it.
And then if you submit the loanthere, you'll be sort of
disappointed when your loancomes back as a suspense, can't
approve it because of ours doingshort term rental and they don't
have experience.
So then you may have todefinitely will have to pivot
there to another outlet tosubmit your loan.
And then obviously non QM, youhave multiple income types.
(12:59):
It could be all dark.
It could, it could be, you know,all dock a P& L, bank statement,
DSCR, asset utilization it, uh,or it could be full dock.
And remember, full dock, uh,could be self employed borrowers
as well.
I mean, just because they'reself employed doesn't
automatically mean that youcan't do them full dock with tax
returns.
(13:19):
It doesn't automatically meanthat you have to do them, uh,
non QM, right?
Agency loans are self, have selfemployed borrowers too.
You just ask for their taxreturns.
And then if there's a coborrower, is that co borrower
going to be an occupant?
or a non occupant because thathas a lot of repercussions,
(13:40):
especially on an FHA loan, ifit's an occupant, a co borrower,
or non occupant co borrower.
And last but not least, right,you've done your analysis,
you've done your review, checkthe guidelines, now you have to
send Buyable quote options andfollow up with your borrower.
(14:02):
This happens at the end afteryou've done everything.
Don't hastily want to sendquotes.
Now, what I like to do is if I'mhaving a good conversation with
the customer, I'm taking mynotes.
We've built up some greatrapport.
I may already be able to load upsome quotes.
I mean, I would say a little bitmore experienced than your
typical MLO, but I love beingable to send quotes to the
(14:25):
borrower.
While I have them still on thephone, right, they're getting
the quotes and we're discussingthe quotes while I have them on
the phone if they're if they'rereally into it and they're
really serious.
You know, you got the rapportgoing.
They're not telling you, Hey,Jose, I gotta go.
I'm busy and I gotta go walk mydog or something like that.
There you've engaged them.
(14:46):
Take the time to review.
And if you feel that you're ableto, based on the information
that they provided and that youdon't have to do any, you know,
real deep research becausethere's no, um, odd scenario,
then send them the quotes whileyou have them on the phone.
Get feedback from them becausethey may like it right then and
there and tell you Jose I likethat one in which case then
(15:06):
they're either going to clickthe start my loan application
button or you're going to clickstart loan for them to set so
that they receive the link sothey can uh start the
application upload theirdocuments and submit the
application right but rememberyou're going to review the
specific guidelines for the loanOption being sent because all
non QM guidelines are unique toeach investor and agency
(15:29):
guidelines have investoroverlays.
It's very important to make surethat your quotes are relevant to
the borrower's objective andqualification.
Do not send them random quotesafter you've spoken with them
and you've determined what theyneed.
Because then they're, they maybe a little bit disappointed and
not take you seriously and makesure to send multiple options,
(15:51):
right?
Multiple options for loan tovalue, right?
With different down paymentoption.
Even if they asked you for a 25percent down 75 percent LTV DSCR
loan, I would also send them an80 percent and an 85 percent
just in case they know what'sthere in case somebody else
offers it to them and theydidn't know it existed.
And then you never hear backfrom them.
It's because they didn't thinkthat you could do the 15 percent
(16:13):
down option.
Uh, make sure you send multipleoption quote, multiple quote
options for income types, uh,especially if they're self
employed, right?
Cause, uh, you don't, youhaven't reviewed their tax
returns.
And if they didn't tell you, Ihaven't done tax returns in two
years.
Then for that self employedborrower, I would send them a
full doc and at least a bankstatement, maybe a DSCR loan as
(16:37):
well, if it's an investmentproperty.
Uh, and again, if it's aninvestment property, non QM,
make sure you send them multipleprepayment options as well.
I've seen too many cases thatprepayment option is on, is
zero.
And I've asked the MLO, why didyou only send one option with no
prepay?
And they say, well, that's,that's what the customer asked
for.
And I'm like, yeah, but you wantto send them the additional
(17:00):
prepayment options so they canput into perspective the higher
cost of the zero prepay.
Cause maybe they'll opt for aone or three or a five.
And they see that it's asubstantial savings in their
monthly payment.
They don't know.
Remember, they're not thelicensee.
We're the licensee.
They're not totally aware of allthe options that are out there.
And like I just previouslystated, self employed borrowers
(17:20):
can qualify for agency loan,doesn't have to be non QM,
doesn't have to be a bankstatement.
But also note that if they wantto close in an LLC, then you got
to go non QM.
And also remember, DSCR loanscan close in a personal name.
I've seen it where in somecases, a borrower is being told
(17:42):
that they got to close in anentity.
If it's a DSLR loan, and that'sabsolutely not true, it can be a
personal name or it can beclosing in an entity.
And last but not least, makesure you, if you did not send a
quote to the borrower while youhad them on the phone, then
please make sure that you followup with a phone call immediately
(18:03):
after sending the quotes, unlessyou sent the quotes at 11
o'clock at night or 12 o'clockat night, make sure that you
follow up with a phone callimmediately after sending the
quotes to ensure that theyreceive the quotes.
To discuss the details, buildrapport and hopefully, uh,
cement the deal and get thatloan application submitted.
So are there any questions?
(18:25):
Cause we covered some prettygood information here.
This is a good, uh, flow, uh,for a call that I would love
everyone to follow when at allpossible.
I know sometimes borrowers, uh,don't want to stay on the phone.
They may be in a hurry, but ifyou see that they're engaged,
you should not be in a hurry.
To hang up just'cause you wannasend a quote, get all the
(18:46):
relevant information, uh, so youcan provide a thorough and, and,
uh, relevant analysis.
Send viable quote options andget a good loan.
Applications.
You do not want borrowersapplying for a loan without you
having discussed it with them,hopefully, and definitely
without you having sent somerelevant quotes to the borrower.
(19:06):
Do not just send the borroweryour, your application link.
You want them to apply, talk tothem, find out what they need,
or if they texted you and toldyou what they need, or if they
emailed you and told you whatthey need, that's okay.
Then send them the relevantquotes, then follow up so that
they start a relevant and viableloan.
So I don't see any questions.
(19:27):
I'm going to give it a minute,uh, see if any questions come
in.
Uh, yeah, we'll, we'll have, uh,copies of this, uh, to, uh, to
our system.
Uh, this, uh, you know, uh, oneof our, I was going to know, is
there a summary of this in theKnowledge Center?
Uh, this presentation will be,uh, uploaded.
(19:52):
Plus, we record all of thesetrainings.
All right.
So, any questions regarding thetopic?
Uh, because yes, we do, Ialready answered that we do have
a summary.
Uh, we will be uploading, uh, wedo upload the presentations.
(20:15):
Okay, well, I don't see anyquestions on, on the, um, actual
topics that I covered.
Yes, we, you can get a copy.
All right, well, I'll give youanother minute.
People think about yourquestions.
(20:36):
Alright, I don't think we haveany additional specific
questions regarding the subjectmatter.
Anybody need any clarificationon the processes that I
explained for when you aremaking the calls?
Oh, all right.
Well, yeah, I think I was prettythorough and detailed.
(20:57):
So, um, hopefully you guys gotsomething out of this.
If you follow this flow, I canguarantee you you're going to
get, you're going to build morerapport.
You're going to engage moreborrowers.
You're going to send betterquotes.
You're going to get morerelevant loan applications.
You're going to get more closeloans.
So everybody have a great day.
We don't have any trainingtomorrow because we have a
(21:21):
great.
Thanksgiving with your familyand loved ones.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
The Breakfast Club
The World's Most Dangerous Morning Show, The Breakfast Club, With DJ Envy, Jess Hilarious, And Charlamagne Tha God!