Why Trying to Be a Loan Officer (that is, Sell Mortgages) Is Especially Grim
… and why pursuing a career in home loans is pretty much doomed to failure.
I gave the mortgage industry — the whole loan originator gig — a serious go of it a few years back. That was just before the entire real estate market melted down.
But even then, I knew after about six months that it just wasn’t for me. And as it worked out, I ditched just before thousands of loan officers were driven out by the economic collapse.
It’s odd, really, that I even gave it a whirl. I already had a great freelance sales gig in place, and that was earning me a great income. But I’m the kind of guy who is always out there looking for something new and more exciting. It was right when I was moving to Dallas, and the whole “mortgage consulting” thing seemed as if it could be fun, and I had buddies in the industry pulling down $25K a month routinely. So I thought what the hell, and I gave it a go.
But it didn’t take long for me to realize I was in the WRONG PLACE.
Because there was no way it was ever going to create the lifestyle I wanted for myself.
Even leaving aside all of the stuff I’m about to cover here, (even leaving aside having to pander to real estate agents, and what that does to your soul), at the end of the day, trying to sell mortgages — working in that industry — is just nowhere near capable of creating the kind of life I’ve got going on and had come to get used to.
The hours, the office, the boss, the stress, the tedium, the grief … It’s enough to make you want to jump off a bridge. Seriously.
But even leaving that stuff aside. Even assuming you’re a glutton for misery and your idea of a good time is a life of constant, bitter struggle and mind-wracking tedium … Fundamentally there are three main reasons why I think trying to sell in the mortgage industry is a really bad idea, especially right now.
The gravy train is over. It has become harder than ever to close deals.
There are several reasons for that. I’ll list a few of them:
The housing market has tanked, taking with it a lot of the people who used to be in the industry. The ones who are left are desperate for business. This has the effect of not only putting you on a crappy level with the client (since it’s get the deal or eat Ramen noodles all next month, you end up begging for business, cringing under anything a client says or demands), but it also has the effect of making the whole mortgage racket more and more a rate game.
And that’s the second reason for why it’s harder than ever to close deals. Rate are too damn high, they’re fluctuating all over the place because of all the government interference in the economy, and your prospects are OBSESSING over rate, ready to cut your throat and run to the guy down the block and leave you high and dry with nothing, over an eighth of a point.
What else is making it hard to close deals is the fact that they’ve taken away all but a small handful of programs — I think you’ve got THREE now; used to be dozens. Everyone needs to put money down, and everyone is stuck in a fixed rate. Like it or lump it. (Problem is, a lot of people are choosing to lump it.)
And finally, one other thing making it harder to close deals is the increased difficulty of getting lenders and proposed loans to fall in line with the new guidelines. Used to be, deals could be slam-dunks and you knew it. You could bury three points in the YSP and still slam-dunk it. Nowadays nothing is a slam-dunk, even at par, and underwriting can kill a deal sixteen different ways before sun down, and leave you feeling you’ve been mugged in a back alley.
So those are some of the reasons why it’s become harder to close deals. And that’s assuming you can even find prospects and get the deals into processing and submitted to begin with. That takes me to the second reason I think trying to sell mortgages as a loan officer is a bad idea:
SECOND REASON –
It is just flat out hard as hell to attract attention anymore, much less differentiate yourself from all of the other loan guys out there.
For one, people are jaded and afraid of getting screwed. They’ve become insanely suspicious — in part because they’re being flooded every day with offers for free credit reports, refinancing opportunities, doom-and-gloom horror stories of foreclosures and mounting unemployment.
Try marketing yourself as a loan officer. Good lord. You’re competing against fifty thousand other hungry mortgage guys. You’re competing against huge banks and desperate net branches. And everyone is selling on price, price, price. Selling on having the “lowest rate.” Everyone is fighting to make a buck. They’re running ads, they’re running banners, they’re sending out useless mailings, they’re falling over each other trying to get someone –anyone — in town to refer them some business.
Not a pretty sight.
And to make it worse, the big advantage you USED to be able to have was in specializing in something, some niche. The guys making the best money were framing themselves as “mortgage consultants,” and trying to stand somewhere between being a loan officer and a financial advisor.
And it worked for long time. The guys who were good at it made a fortune.
But things have changed. Back in the day, you had dozens of programs to choose from. You could customize a mortgage solution for a client, and really bring value to that interaction. You could build a plan for them, around their goals and dreams, and show them how the mortgage you were structuring for them would help them and their families get where they wanted to go.
Well … That’s all gone now.
You’ve got THREE programs you can offer nowadays. Conventional, VA, or FHA. Fixed, fixed, or fixed. That’s it. That’s all.
No more no-money-down programs. No more stated-income or stated-asset programs. No more negative amortization loans with investment plans behind them.
Increased restrictions on investment properties.
Massive reduction of new-construction loans, and the effective extinction of jumbo (much less super-jumbo) loans.
There’s no way to “consult” or offer “mortgage-planning” when it comes down to a fixed rate. People have been trained to focus exclusively on price.
And there’s always someone willing to cut your throat for an eighth of a point.
So the second reason why I’m against selling in the mortgage industry came down to how hard it is to find good leads, and how hard it is to differentiate yourself, or in any way rise above price.
The third reason is more personal:
It just takes so much damn WORK to try to close a mortgage deal.
Even leaving aside the effort it takes to bring in a qualified lead. (And “qualified” has a whole other meaning when it comes to home loans. Someone can want a new home loan all he wants. Whether he qualifies, under the new guidelines, however … That’s a completely different story.)
Even leaving aside the effort it takes to get the prospect to want to work with you.
That still leaves all of the endless documentation required to get the deal closed and a commission check in your pocket.
There is the appraisal, the sales contract, the gigantic loan application, the credit check, the required bank statements and pay stubs, the verification of employment and income, the verification of bank funds, the home-owners insurance, the mortgage insurance, and on and on and on it goes.
Then the client has to actually get approved.
And come up with the down payment.
(And somehow, during all this, manage to avoid the hoard of hungry banks and mortgage companies and other loan officers out there trying to steal your deal out from under you before you can get it to closing.)
And even THEN it’s not over. Because it takes time, you see. And you have the pure joy of sweating under the stress of endless underwriting grief, where nothing is easy anymore, and every closing is precarious and uncertain.
So let us try to sum up …
At the end of the day, trying to sell home loans in the mortgage industry is hell on wheels. It is getting harder and harder, to earn less and less.
This year the industry is predicted to take another slug in the head, and thousands more will end up unable to close enough loans to pay their bills, or see their mortgage companies chain their front doors closed, without so much as a severance check from commissions on deals that had already funded.
I predict that we’re headed toward complete and utter commoditization of mortgage lending, with mounting government controls, where everything becomes cookie-cutter and in the hands of a few gigantic banks.
So unless you want a future in a cubicle, taking down loan applications over the phone and entering them into a computer for eight bucks an hour (assuming things don’t go completely automated, and they still need someone to at least type the stuff in) …
Here’s my recommendation:
– Forget the mortgage industry.
– Find something different.
– Find something better.
I’ll be talking a lot more about that “something better” here real soon …
At MaverickSalesGuy (dotcom)
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Are you planning to build a home theater? If you are not sure of what you need to build a basic home theater setup read ahead to find out.
Setting a complete movie theater in your home is something that is unachievable to anyone but the rich. However setting your own high definition home theater is accessible if you have a normal budget. All you really need to know is a little about the basic components of home theaters and be smart when it comes to shopping wisely.
A regular home theater is built around three basic components. The first one of these components is the television set. You may or may not already own an HDTV television but a regular 27 inch 720p LCD high definition television set is not that expensive considering how prices on HDTV screens used to be. A set of this size will or even a little bigger will surely not cost much. For 1080p televisions the story is different. These are more expensive but you will be able to obtain easily a 32 inch 1080p set for under a thousand dollars. It all boils down to preference and budget.
The second very important element to any home theater is a BLU-RAY player. Regular DVDs are not able to store the huge amounts of data that movies in HDTV need and some may not even support progressive scan. It is all a matter of storage space. A regular BLU-RAY player is not that expensive. But, if you would like a high end model with tons of features then expect a higher price.
The third important component and one that is very essential for any home theater is speakers. To have a good surround sound effect and get the best possible experience you need a minimum of four directional speakers and a subwoofer. Regular speakers are to be positioned at the sides of the television set, left and right respectively. The other two speakers should be placed where the viewers will be sitting. If possible, these speakers should be pointing to the back of the couch or any furniture that sits in the middle of the room. Since bass frequencies are not directional, the subwoofer can be placed anywhere on the room but not to close to the viewer so that it overshadows the sound from the directional speakers. An additional channel may be used as a center channel. This speaker if used ,should be pointing straight to the viewer and is responsible for better sound projection of dialogs and frontal sounds.
The basic setup for a home theater is not that expensive. However for bigger rooms a bigger budget may be necessary especially when it comes to speakers. In the end, if we take in to consideration the hours of fun that your family will enjoy not to mention the time spent together, a small home theater will surely be worth the investment.
In this lagging economy, everyone is trying to save money. For this reason, many advertisers are appealing to consumers in new ways which make them really think about how they are spending their hard-earned money. Think of Wal-Marts new tagline, for example: Save Money. Live Better. We all want our dollar to stretch as far as it can go. It is no different from small purchases like groceries to big expenses such as the purchase of a home. When hiring a real estate agent or broker, do not be afraid to negotiate fees to save money on the transaction. Many brokers fees are not written in stone and they will be willing to come down a little for the sake of having your business.
Interesting Information from Consumer Reports
An actual study released this month by Consumer Reports turned up some interesting information. According to the study, seventy one percent of buyers who tried to negotiate Dallas Real Estate broker fees were successful. One of the most interesting facts however, is that less than half of buyers overall even tried to negotiate those fees. The study also showed that buyer satisfaction was no different whether they paid a smaller percentage, such as three percent, than those who paid around six percent to their brokers. In fact, the study indicated that home buyers who did pay a higher percentage would be more prone to experiencing feelings of regret about their experience.
Which Dallas Real Estate Brokers Are More Likely to Negotiate Fees?
This is a good question to ask when you decide to hire a Dallas real estate agent or broker. It is more likely for an independent agent or broker to be open to fee negotiation than one who works for a large company. This is because independent agents and brokers keep their entire commission, while those who work for bigger companies must share their commission. That doesnt mean that agents or brokers who work for a company such as Re/Max have fees that are set in stone. Sometimes just by asking, you can negotiate a lower fee.
Negotiating Fees Works for both Buyers and Sellers
Sellers can also negotiate fees with Dallas real estate brokers. Their best chance however, is to have a property to sell which is in great condition and one that is priced aggressively to sell quickly. A broker will be much happier to negotiate when a home can sell within one month instead of within six months. When the real estate market is not what it used to be, those in the business need to be flexible to continue to make money. This is one of the reasons that some brokers are willing to lower their fees when asked by a home seller.
The bottom line is, do not be afraid to ask. Buying a home is a costly process where you will definitely want to try to save wherever possible. If selling a home, you want to make sure to keep as much money from the sale as possible. A good broker or agent is one that is flexible and willing to work with you on terms that you both can agree to.
Now days, the upcoming condominiums are opting for better lighting solutions and are now using the LED lighting for the condos. Many of the existing condominium associations are also opting for LED retrofits and are using them for their own condos. They are opting for LED lighting retrofits and are thus replacing the existing lights with them.
The importance of lighting retrofitting in Condominium associations is that that the LED lights are more energy efficient than any other lights. One can use the LED lights in the condos and surely notice the reduction in electricity bills. Another factor that makes LED retrofits a better choice is that using them in the condos can increase the value of the condos and help one get greener homes.
The LED bulbs are considered as one of the most environment-friendly lighting solutions as it does not emit carbon dioxide. Using these in the condos can help us reduce our carbon footprint and can help save trees. This is very important for the environment as the increasing level of carbon dioxide is posing a threat to earth.
The LED lighting retrofits can help one save a lot of money as well. These can be used in hallways, for outdoor lightings and at any part of the condominium association. Since the LED bulbs use less energy without compromising on the illumination, the condominium associations can look forward to reduced electricity bills.
When we use the normal bulbs in condos then the heat from them leads to increased air conditioning cost also. But when we switch to LED lights then we can stop worrying about the extra air conditioning costs. This is because the LED bulbs do not emit heat and therefore helps to maintain the temperature of the room or the condos. With these lighting solutions one can also forget about lead release and use them for outdoor lighting, office lighting and at various other places. Thus the lighting retrofits can turn out to be very useful and important in condominium association.
Different kinds of condos lighting are available for the condominium associations. These also come along with dimmers so that you can control the lights according to time. The different options that are available to you include accent lights, monorail lighting, recessed lighting and other solutions that can be used in your home.
When it comes to dealing with the installation charges then one can look for companies that offer flexible retrofitting programs. For instance, Energy smart Industry which deals in lighting retrofits, offers good LED retrofit program which allows the buyers to get the LED bulbs at zero out of pocket expense. Under their program the retrofitting is done at no extra cost and the company then collects its payment through the saving one makes on his electricity bill.
Special maintenance program, customize lighting solutions are some of the other features that are provided by such companies. It makes it easy for people to turn their condos and building into green buildings and take a step towards conserving energy.
There is an infinite balance in the universe that equilibrates the ups and downs of life evenly and equally at all times. Like gravity or magnetism the balance is invisible to the eye and has to be examined and studied, to be brought out of obscurity into understanding. Sir Isaac Newton observed, for every action there is an equal and opposite reaction. While Newton was referring to the laws of physics his theories extend beyond the commonly accepted science to include the very fabric of the universe and govern the lives of each and every person living on the planet.
To put it simply good and bad exist in harmony together at all times and in all places, but it is a persons perception and perspective that create the illusion of things being either good or bad. If people understood perfectly the laws of physics that Newton uncovered they would begin to see that for every perceived bad circumstance, event or situation there is an equal and opposite good perception waiting to be identified and vice versa.
The economy may be down and people have lost jobs, but that is only the beginning. The housing markets have dropped because of the foreclosure rate that may be bad for those that have been forced to find alternative places to live, but on the opposite side of all the perceived negatives are the positives. People forced to move out of homes that they could not afford are finding that they can now manage their finances better as people that once thought home ownership was beyond their reach are buying homes that are now available at discounted prices. Even the banks and lenders are benefiting again by the drop in interest rates that are allowing people to take advantage of low mortgage rates and refinancing options that they could not expect to see before the economic downturn.
Veteran loans and refinancing options are helping people to have the good amid the bad and turn the economy around by extending home loans to people that are taking advantage of the positives with lower interest rates and home prices that may appear to be negative to some but that demonstrate an equal and opposite balance in reality.
While things have been dark there has always been an equal amount of light shinning in the darkness for those that have the wisdom to see both sides of good and bad and are able to see the balance that exists between the two polar opposites with unbiased perspective. Look for the opposite, believing that it exists and you will being to see the truth of Newtons law pertaining to the there being an equal and opposite force or action to every event, every situation and every circumstance that comes into existence. Reality is the balancing of perceptions and understanding that both opposites must exist together in order to sustain the unseen laws of the universe that support life.
An urgent need of cash may interrupt anybodys life at any point of time. This situation has to be met anyhow otherwise may turn into huge trouble. Such needs may come in anybodys life without knowing that one is able to meet it or not and without knowing that one is suffering from bad credit status or having fair credit report. These circumstances are really hard to meet specially for those who are having bad credit score. To remove the difficulty of these folks lenders have come up with no credit check payday loans with the intention of assisting those who are in need of borrowing money and facing problems in obtaining loan due to their bad credit report. So, if you want to have bucks without waiting for the next paycheck, you can go for these loans and get cash easily in spite of having bad credit score for instance arrears, amount outstanding, defaults, late payments, payment overdue, poor credit rating, CCJs (Country Court Judgments) , IVA (Individual Voluntary Arrangement) and the like. It means that getting loan assistance is very easy and trouble for every job-holder.
The method of getting loan via no credit check payday loans is very easy for the reason these loans are available online. Hence, you have no need to leave the comfort of your home or office. Through an access to internet you can fill up an application form with all needed information such as your name, address, bank account number, contact number, e-mail id and the like. After completing it you can put it forward in its required manner. Once the lending company receives your loan application, it starts verifying your details. As soon as the loan application is sanctioned by lending company, your required loan amount will be transferred into your bank account immediately. The loan amount is wired into borrowers bank account mechanically, so you have no need to go anywhere for taking it.
Under the assistance of no credit check payday loans, you may obtain money in the range of 80 to 750 for a period of 14 to 31 days. Thus, this loan sum can be paid off on the arrival of your next paycheck. So, make yourself ready to go for no credit check payday loans in order to solve all your financial crunches without facing any difficulty and live a happy and tension free life.
If you need to have bucks quickly, take the help of no credit check payday loans as it gives cash even to those who are tagged with bad credit score.
Q: Who takes care of maintenance? A: Condominium owners form and belong to an association that takes care of tasks such as roof maintenance, siding, upkeep, and grounds keeping. The association owns and maintains common areas which might include tennis courts, party rooms and swimming pools.
Q: Where does the money come from for these things? A: Owners pay maintenance fees to the association for upkeep and to create a reserve fund sufficient for important projects such as roofing replacement. Owners serve on the association board to establish and enforce rules. Some associations might be very strict about what owners can and cannot do. Make sure that you look over the rules and regulations before you commit to a purchase. Many condos have pet restrictions and rules against renting out units.
Q: What about homeowners insurance? A: Your condo association has a master insurance policy that covers the outside of the building’s structure, including the roof and common areas from the pool to sidewalks. The master policy will not insure the inside of your particular unit or any of your personal belongings. You must take out a separate homeowners policy to cover these things.
Q: Do condos prices rise in value as fast as single-family homes? A: The Northwest Multiple Listing Service reports condo value trends rising as fast as or faster than single-family properties. These trends can change but for now condos look like a good buy for many years to come.
Are you in search of a good construction company then the firm Dynabuild will be your perfect choice. This firm is providing the Unique and genuine services to its clients since many years and each and every client of this firm were highly satisfied with their services. No doubt in it, you will definitely feel highly satisfied on availing their construction services. You can also see their customer reviews in order to know how fabulous their services will be. Another benefit of approaching this firm is it has the best team who will support you by providing friendly and dedicated services.
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To help you recover from your poor credit status, consider refinancing your home mortgage loan to improve your financial situation for the long term. When you work with a high risk refi lender, you can secure near market rates and lock in reasonable fees. Sub prime lenders also allow you maximum flexibility with your loan terms, allowing you to design your own debt elimination plan.
Getting The Most Out Of A Refinanced Mortgage
To get the most out of your refi, identify your financial goals for the refi process. Do you simply want lower payments with your home loan or you looking at your total debt picture? Do you want to sell in a couple of years? How soon do you want to be out of debt?
The answers to these questions will help you pick the best refinance package for your goals and budget. If you are planning to apply for a home equity loan in the future, you may do better to cash out your home’s value now to save on fees and rates. That way you can consolidate credit card debt and other high interest bills.
For those planning to move or refinance in a few years, don’t pay a lot in upfront fees and points. Even though these closing costs can lock in a lower rate, you won’t have enough time to recoup the cost, let alone see a savings.
To get out of debt faster, shorten your loan period. You may also reduce your rates with this step.
Focusing On The Numbers Gets You A Better Refi
Focus your lender search on loan quotes. When you request these no risk loan estimates, you get numbers on interest rates and fees that you can compare. Based on your general credit standing, you also get an idea on your monthly payments.
In today’s lending climate, many more companies offer sub prime financing. So don’t rule out banks or credit unions in your loan search. Recommended financial companies are a good place to start your search. But remember that the more lenders you investigate, the more likely you are to find a low cost loan.