Important Qualities Developed During Mortgage Broker Training

For most people, transferring to a new home may both be the hardest yet the most exciting thing to do. Leaving all your past behind and starting a new life could be good reasons for change. Meeting new people in the neighborhood while keeping the previous ones will add zest to anybody’s social life. However finding and closing a mortgage loan can prove to be a challenge on its own. This is probably why people who have undergone mortgage broker training is very in demand due to their line of work, and their ability to make dreams happen.

Mortgage brokers serve as an important link for the borrowers and the lenders.It is rather not easy to find a bank or lending institution that will give out mortgage loans in an instant. There are simply too many things needed to do like forms to be filled up, backgrounds to be checked, credit ratings studied, and ability to pay must be assured. In all these troubles just to be granted a mortgage loan, one person could make everything easier; a person with a great mortgage broker training background.

In order to excel in such field, mortgage brokers need to develop certain aspects in their personality that will be very useful in their field of work; qualities that are either inert to themselves or are achieved and developed only through constant training as well as exposure to the ins and outs of the industry. Read along as I lay each one and point out their importance to the profession.

Special Interest in Real Estate Market

Since mortgage brokers pretty much work along this line of field, they must have an inert interest and flare for the real estate industry. It is easy to distinguish if a person is working with his mind or with his heart. Real estate is a very big business opportunity and only those who are deeply interested in making it big, will be granted the bigger piece of the cake. Brokers need to be updated with all that is happening in and around the real estate market in order to keep in step with the changing times.

Ability to Communicate Well

In a type of job where a simple miscommunication can cause immense impact on its result, it is a must that a mortgage broker should and will be able to communicate very well both to his client and the lenders. Most of the time, clients seeking for a mortgage loan are not totally equipped with the necessary information for it. At times, they may not even know a little about the laws governing the deal. The burden now lies to the ability of the mortgage broker to dissect this seemingly “alien” information to the borrower and turn it into something easy to understand to make sure that he/she will not be left in the dark.

Mortgage brokers also need to establish rapport in order to gather as much contacts as possible. In this line of work, contacts with people on the lending sector are the bread and butter of any broker. Without these contacts, there will be no loan assurance that can be passed on to the borrower. Without these contacts, being a mortgage broker could be a lot harder than what it originally is.

This is where the broker’s inter-personal skills will be tested. He must make himself available for these lending companies, and he must make sure he gets on the good side of the people behind the loan approval section. The ability of the mortgage broker to keep good relationships with the lending institution, will most likely result to more updated company facts that he can use in order to turn it into an approved loan for his client.

The communication pathway between the broker and the client, as well as the broker and the lending institution must be open and clear at all times. This is to ensure proper information dissemination on the client’s side, and accurate terms on the lender’s side. These qualities will be given importance during mortgage broker training sessions and will be put to the test on the actual field.

Knowledge on Mortgage Industry Laws

People say that no soldier must go into battle unprepared. So are mortgage brokers. They need to arm themselves with the necessary knowledge about laws related to the mortgage industry itself. In most cities, there are federal and state laws governing the real estate as well as the mortgage brokerage. It is also not enough to be acquainted or familiarize these laws; a brilliant broker with a good mortgage broker training background must be able to explain these laws clearly to the borrowers. He must also be able to discuss with the client everything that is written on the loan agreement form and make sure they understand each statement before letting them sign it. Information about borrower default and other issues must be clearly understood by the client before closing the deal.

Keen Eye for Details

Mortgage brokers must develop a keen eye for details when interviewing his client. He must listen to what they are specifically looking for and what they are capable of paying. It is also a must for the broker to check the credit status and background of the borrower in order to make sure he got all the information needed before he can match it up with the best possible lending institution. This is rather important because the broker must also make sure he is giving these institutions legit clients that are not hiding anything or else risk losing contacts and good relationship with the company and having a tarnished reputation on the field.

These qualities are not developed overnight. A broker must be willing to nurture it from the moment his mortgage broker training took place until the time he is up and running on the actual world. Practice makes perfect as they say, and that is the only way you can excel in this field of work.

Understanding Commercial Property Investments

Do you ever feel that you should be looking more at investments in commercial property in the saturated residential property market? If this is in your mind, you are joining the new wave of investors who wants to diversify their investment portfolio with the unstable economy.

How big exactly is the commercial property market? Generally speaking, commercial property investment is not as straightforward as residential market. In Malaysia, it is almost sure that any piece of residential property will be lapped up the moment it is launched, and everyone at some point of their life will be looking for a house of their own. Some may buy a piece of residential property and rent it out instead. For commercial properties, there are a lot of other considerations.

1. Location

Location is a very important factor when it comes to investment in commercial properties. It may be true that a lot of people are looking into creating their own business, and it will not be too hard to find someone to rent your property start their business, but if the location is not right, the chances for renting out is slim.

When you wish to invest in a commercial property, look around to see whether there are other residential properties which will support the business. You may want to take a good look at the whole development project, and check residential population surrounding the commercial lot that you are aiming for.

Also, do check if the area is a flooding area, or are there any other disadvantages. Parking space is a very important factor of consideration for any business to thrive in this modern world, and you ought to make sure that there are parking spaces near the property you wish to invest in.

2. Features

Sometimes, the success of commercial properties also comes with the features included in the project itself. For example, some properties may be managed by the developer, with facilities such as wi-fi zone, making the commercial blocks into event venues or even being selective about the types of business and brand name to qualify as tenants. Some commercial properties with such strict criteria about tenants include BM Utama in the mainland Bukit Mertajam, and Straits Quay in Penang island.

Both are project examples of two contrasting backdrop. Straits Quay is a high-end sea facing project by E&O, with very high traffic coming from its branded tenants and expensive condominiums and landed property support. Meanwhile, BM Utama is a 7-unit exclusive commercial lot owned by BM Utama’s property developer, DNP Land, and is meant to become part of the lifestyle support for the almost sold-out BM Utama. The 7 units are called The Gallery, which is available for leasing only, to ensure the quality of retailers.

3. Price

Although people are talking about market price, as an investor, you should take into consideration the price and the size of the property. It is important to note that your property lease are usually based on long term contracts, and for some cases may span for 10 years instead of the normal renewable 1 or 2 years for residential properties. Also, you need to remember that returns from residential property comes from the capital value increase, but for commercial properties, it comes from income. Although commercial properties generally will cost more than residential properties, you will still need to sieve through to see if the investment can really bring you back a good return. Is the rental price of that property able to cover the loan that you took for the purchase?

If you are buying the property for the sake of making it into a hub for your own business, then it is up to you to ensure that the business that you are going to do will bring in enough sales and income to cover for the loan repayment of the property.

Commercial property leases provides an average contracted income stream of about 7 years.

4. Ownership

When you buy any property, you need to be very clear about the type of ownership that you have. Is it a freehold or a leasehold property?

Although leasehold properties are usually released with a certain amount of payment when the expiration term arrives, there may also be conditions where the land is taken back for new development. When the lease-land period is almost reached, property prices will drop significantly.

You also will want to check on the previous ownership of the property. Most properties may have more than one owner sharing the ownership of the property, so you should get a background check about this with a trusted lawyer, also to find out if there are any underlying problems to why the property is up for sale. Make sure the property sale gets consent from all legal owners.

Who Is Better – Mortgage Banker Or Mortgage Broker?

In a time that seems so long ago, when you applied for a mortgage, it was assumed you would go to your local bank — the institution where you kept your savings and checking accounts – to also obtain your home loan. I can’t exactly put my finger on the time period where this changed but we are now in a more modern era and the process is usually quite different.

Yes, banks and credit unions still have a large market share for mortgage origination, a larger chunk of market share is now occupied by companies whose business is specifically to originate mortgages.

As one can imagine by looking at the number of competitors in the market place, there is a lot of money to be made by the companies that provide or find mortgages for home buyers, not only on the interest, but also on closing costs and other fees. When looking at companies specializing in mortgage lending, there are two basic categories of mortgage originator…
Mortgage Banker and Mortgage Broker.

Lets look at the mortgage banker first. When you do business with a mortgage banker you are dealing directly with the company making your loan. Often the term direct lender is used to describe a mortgage banker. The mortgage banker may not be a mortgage servicer, meaning they are not ultimately going to be the company where you make your mortgage payments, but it is their underwriting decision to determine if your loan meets the guidelines of approvability. Although a mortgage banker is typically limited to the products they will offer to borrowers, many mortgage bankers maintain relationships with “wholesale” lenders where they can broker loans should a borrower’s request or borrowing profile not meet their own mortgage loan offerings.

In today’s mortgage market, mortgage banker underwriters generally make their decisions based on the guidelines set by agencies (FHA, VA, Fannie Mae, Freddie Mac). The trade association affiliated with mortgage bankers is the Mortgage Bankers Association of America.

Next we will look at the Mortgage Broker
A mortgage broker serves the same needs as a mortgage banker but in a different manner. The mortgage broker is not a lender, does not make the ultimate decision to approve or decline a mortgage application but has the luxury of drawing from a large pool of lenders for borrowers to find the right match and obtain mortgage loan approval.

To say that using a mortgage broker creates a middle man effect (broker to lender to borrower), and to then assume this effect creates more cost to the borrower is not entirely fair. Mortgage Brokers do not deal in the retail world of loans. Most direct lenders, lenders that you can access on your own, have a wholesale department with the sole purpose of servicing the loans sent in by mortgage brokers. These departments are commonly referred to as wholesale lenders and they offer pricing that is not available to the public and allow brokers to be competitive on a retail level with mortgage bankers. I think it is important to point out that on occasion, a wholesale lender will price unusually low to beef up their pipeline of loan originations and a broker can be in position to take advantage of this for you whereas a mortgage banker wouldn’t.

In scanning the mortgage market, both nationally and regionally a broker knows a lender’s specialty. The broker can identify what lender might fit a borrower’s special needs based upon an analysis of the borrower’s credit profile. The broker does everything the lender would do — checks your credit and work record, arranges for title search and hires the property appraiser — but, once all of this information is compiled, the broker selects a mortgage lender that will most likely accept the application based on its financial data and unique information. In some offices, the mortgage brokers also are lenders.
The major trade association for mortgage brokers is the National Association of Mortgage Brokers The association is a nonprofit organization with a code of ethics and business practices that applies to any broker who wants to be a member. There is a section of the association’s web site where you can search for a member broker in your area.

Tip
Whether you choose a mortgage banker or mortgage broker, you can’t be wrong in that decision on its own. As in anything, the quality is in the people and it is then good idea, no essential, to ask friends and relatives, especially those who have recently gone through the process, to recommend a mortgage professional.