If you’re married and your spouse has recently had a short sale, you may still be able to purchase a home.

For the majority of married couples, their homes are purchased together using joint credit, income and assets. This article will address the following situations; the spouse purchased a home before the couple was married in his/her name, or the spouse purchased a home, qualified on his/her own qualifications and the other spouse disclaimed their interest in the property.

Let’s take a look at an example of what a typical scenario might look like for a typical borrower.

Mr. Smith bought a home in 2002. He was forced to do a short sale in 2008 because he lost his job and could only find employment that paid 50 percent of his previous income. When Mr. Smith purchased his home, he was able to qualify on his own and Mrs. Smith was not included on the loan. Mrs. Smith signed a disclaimer deed at the closing. Mrs. Smith has since graduated from medical school and returned to the workforce. Mr. Smith and Mrs. Smith would like to purchase a new home together. Unfortunately, Mr. Smith’s credit will not allow him to be part of the loan due to the short sale. Even if Mr. Smith’s credit score has rebounded from the effects of the short sale, Mr. Smith still must wait 2-3 years before he can buy using most traditional financing.

Mrs. Smith can qualify for a home on her own even though Mr. Smith had a short sale less than 2 years ago, provided she meets the standard qualification standards. Mrs. Smith would like to purchase the home with a FHA loan. In community property states, such as Arizona, Mrs. Smith can still purchase the home even though the lender will review Mr. Smith’s credit history. However, any additional debts which appear on Mr. Smith’s credit report will have to be included in her qualifying ratios. As long as she can qualify on her income alone, she will be able to purchase a home. Mr. Smith will have to sign a disclaimer deed, relinquishing all of his rights to the property.

Please note: This article was written per Arizona State laws and other states may differ. Please consult your mortgage consultant to discuss the laws and regulations applicable to your state.

Since there are many reasons a homeowner may choose to refinance their Phoenix home mortgage, we’ll take a look at the four most common.

1. Mortgage Rates Drop:

Typically, the most common reason that homeowners refinance their mortgage is to secure a lower interest rate. Interest rate and loan amount determines the total cost that a borrower will pay over the life of the loan. The lower the interest rate, the less the overall cost will be. Interest is calculated on a daily basis and usually paid back to the lender on a monthly basis.

2. Lower Payments:

Lowering a mortgage payment can be achieved by lowering the mortgage rate, lengthening the loan term, combining two or more loans, removing mortgage insurance or a combination of these. 

3. New Mortgage Program:

Refinancing an Adjustable Rate Mortgage (ARM) to a new Fixed Rate Mortgage (FRM), combining a first and second mortgage or paying off a balloon loan are three possible reasons to explore a refinance.

4. Debt Consolidation:

If there is sufficient equity, sometimes paying off consumer debt by combining all debts into one lower monthly mortgage payment can significantly reduce the short-term deficits in a budget. However, it’s important to keep in mind the total cost of that debt by adding it into a 30 year mortgage payment.

Even if you don’t think you can benefit from a refinance, there’s usually no cost to have your mortgage professional review your situation and pass along some money saving tips to help minimize overall interest expense with your liabilities.

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Frequently Asked Refinance Questions:

Q: Do I have to refinance with my current mortgage company?

No, you may choose any company to refinance your mortgage since the new loan will replace the existing mortgage.

Q: Is it easier to refinance with my current mortgage company?

It is possible your current mortgage company may require less documentation, but this could add additional cost or a higher interest rate. Do your homework and shop around to make sure you’re getting the best deal.

Q: Will I automatically qualify if I’ve never made any late payments?

No, you will have to qualify for your new refinance. However, certain programs will allow for reduced documentation like a FHA to FHA Streamline Refinance. The most common problem in the Phoenix market is currently appraised value.

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Related Article – Refinance Process:

• Refinance Process Overview
• Mortgage Approval Process
• Calculating The Net Benefit Of A Refinance
• Should I Refinance Or Get A Home Equity Loan To Make Improvements?
• What Do Appraisers Look For When Determining A Property’s Value?
• Understanding The Difference Between Appraised Value vs Neighborhood Listing Comps
• Five Myths About Home Values
  

Perhaps you are outgrowing your current house, or have been forced to relocate due to a job transfer? Regardless of the motivation for keeping one property while purchasing another, let’s address this question with the Phoenix home mortgage approval in mind:

So, Do I Have To Sell?

Yes. No. Maybe. It depends.

Today’s mortgage guidelines are based on the past few years of rising defaults and risky lending practices. So one simple question can no longer be answered with one simple answer…and all of them may be right.

If you are in a financial position where you qualify to afford both your current residence and the proposed payment on your new house, then the simple answer is Yes!

Qualifying based on your Debt-to-Income Ratio is one thing, but remember to budget for the additional expenses of maintaining multiple properties. Everything from mortgage payments, increased property taxes and hazard insurance to unexpected repairs should be factored into your final decision.

What If I Rent My Current Property?

This scenario presents the “maybe” and the “it depends” answers to the question.

If you’re not quite qualified to carry both mortgages, you may have to rent the other property in order to offset the mortgage payment.

In that scenario, the lender will typically only count 75% of the monthly rent you are proposing to receive. So if you are going to receive $1000 a month in rent and your current payment is $1500, the lender is going to factor in an additional $750 of monthly liabilities in your overall Debt-to-Income Ratios.

Another detail that can present a huge hurdle is the reserve requirement and equity ratio most lenders have. In some cases, if you are going to rent out your current home, you will need to have at least 30% equity in order to offset your payment with the proposed rent you will receive. Without a sufficient amount of equity, you will have to qualify to afford BOTH mortgage payments. You should also plan on showing some significant cash in the bank. Generally, lenders will require six months reserve on the old property, as well as six month reserves on the new property.

For example, if you have a $1500 payment on your old house and are buying a home with a $2000 monthly payment, you will need over $21,000 in the bank.

Keep in mind, this reserve requirement is incremental to your down payment on the new property.

What If I Can’t Qualify Based On Both Mortgage Payments?

This answer is pretty straightforward, and doesn’t require a financial calculator to figure out.

If you are in this situation, then you will have to sell your current home before buying a new one.

If you aren’t sure of the value of the home or how your local market is performing, please contact us and we’ll refer you to a great real estate agent that can assess values in your neighborhood.

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As you can tell, purchasing one home while living in another can be a very complicated transaction. Please feel free to contact us anytime so we can review your specific situation and suggest the proper action plan.

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Related Articles – Mortgage Approval Process:

• Basic Mortgage Terms
• How Much Can I Afford?
• Common Documents Required For A Mortgage Pre-Approval
• Top 8 Questions To Ask Your Lender During Application Process
• What’s The Difference Between An Investment Property, Second Home and Primary Residence?
• Seven Things Your Phoenix Real Estate Agent Should Know About Your Mortgage Approval

Simple, the underwriter pulls an updated credit report to verify that there hasn’t been any new activity since original approval was issued, and the new findings kill the loan.

In the past, this generally wouldn’t happen.  However, after June 01, 2010, borrowers should anticipate a new credit report being pulled before funding.  This is a result of the new Loan Quality Initiative from Fannie Mae.

Purchase transactions involving short sales or foreclosures tend to drag on for several months, so this approval / denial scenario is more common.

It’s An Ugly Cycle:

1. First-Time Home Buyer receives loan approval call from their loan professional
2. Buyer assumes everything is set for purchase to be complete
3. Buyer makes a credit impacting decision (new car, furniture, run up credit card balance)
4. Funder pulls new credit report and denies the loan

In the hopes of preventing the collapse of a perfectly acceptable approval, we’ve developed a “Ten credit do’s and don’ts” list to help ensure a smoother loan process for our clients purchasing a home in Phoenix.

These tips don’t encompass everything a borrower can do prior to and after the Pre-Approval process, however they’re a good representation of the things most likely to help and hurt an approval.

Ten Credit Do’s and Don’ts:

DO continue making your mortgage or rent payments

Remember, you’re trying to buy or refinance your home – one of the first things a lender looks for is responsible payment patterns on your current housing situation.

Even if you plan on closing in the middle of the month, or if you’ve already given notice, continue paying that rent until you’ve signed your final loan documents.

Unless your lender otherwise instructs you, it’s always better to be safe than sorry.

DO stay current on all accounts

Much like the first item, the same goes for your other types of accounts (student loans, credit cards, etc).

Nothing can blow up a loan approval faster than a late payment showing up in the middle of the loan process.

DON’T make a major purchase (car, boat, big-screen TV, etc…)

This one gets borrowers in trouble more than any other item.

A simple tip: wait until the loan is closed and you have your keys in-hand before buying that new car, boat, or TV.

DON’T buy any furniture

This is similar to the previous, but deserves it’s own category as it gets many borrowers in trouble (especially First-Time Homebuyers).

Remember, you’ll have plenty of time to decorate your new home (or spend on your line of credit) AFTER the loan closes.

DON’T open a new credit card

Opening a new credit card dings your credit by adding an additional inquiry to your score, and it may change the mix of credit types within your report (i.e. credit cards, student loans, etc).

Both of these can have a negative impact on your score, and could result in a denial if things are already tight.

DON’T close any credit card accounts

The reverse of the previous item is also true. Closing accounts can have a negative impact on your score (for one – it decreases your capacity which accounts for 30% of your score).

DON’T open a new cell phone account

Cell phone companies pull your credit when you open a new account. If you’re on the border credit-wise, that inquiry could drop your score enough to impact your rate or cause a denial.

DON’T consolidate your debt onto 1 or 2 cards

We’ve already established that additional credit inquiries will hurt your score, but consolidating your credit will also diminish your capacity (the amount of credit you have available), resulting in another hit to your credit.

DON’T pay off collections

Sometimes a lender will require you to pay of a collection prior to closing your loan; other times they will not.

The best rule of thumb is to only pay off collections if absolutely necessary to ensure a loan approval. Otherwise, needlessly paying off collections could have a negative impact on your score.

Consult your loan professional prior to paying off any accounts.

DON’T take out a new loan

This goes for car loans, student loans, additional credit cards, lines of credit, and any other type of loan.

Taking out a new loan can have a negative impact on your credit, but also looks bad to underwriters and investors alike.

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Follow these Do’s and Don’ts for a smoother mortgage approval and funding process.

Just remember the simple tip: wait until AFTER the loan closes for any major purchases, loans, consolidations, and new accounts.

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Related Credit / Identity Articles:

• Understanding Credit
• Ten Things You Can Do To Protect Your Identity
  
• Is There A Rule-Of-Thumb Regarding The Number Of Credit Lines To Have Open?
• Alternate Sources For Establishing Credit

Many experienced real estate agents in the Phoenix metropolitan are have a general understanding of the mortgage approval process, but there are a few important details that frequently get overlooked which may cause your loan to be delayed or denied when you’re buying your new home.

New Federal and State regulation, updated disclosure policies, appraisal guidelines, interest rate pricing premiums, credit score, secondary investor approval guideline layering, property type, HOA insurance requirements, title and property flipping rules are just a few of the many recent changes that can have a major impact on a borrower’s home loan financing.

With today’s volatile lending environment, it’s extremely important for home buyers to get a full loan approval, which clearly defines all contingencies that pertain to each unique home buyer’s scenario, prior to spending time searching for a new home with a real estate professional.

Here is a list of a few of the most important topics your Phoenix real estate agent should keep in mind while showing you homes:

Caution – Agents Beware:

Property Type –

High-Rise, Condo, Town House, Single Family Residence, Dome Home or Shoe House… all have specific lending guidelines that can influence down payment, credit score and mortgage insurance requirements.

Residence Type –

Need to sell one home before moving into another? Is a property considered a second home if it’s in the same city? What if I’m buying a home for my children to live in, it is still considered an investment property?

These are just a few of several possible residence related questions that should be addressed by your real estate agent and mortgage professional at the initial loan application.

Rates / Locks –

Mortgage Rates are typically locked for a 30 day period. Rates also have adjustments for property/residence type, credit score and down payment. Most of these could have a big impact on your monthly payment. An increased monthly payment could also have an adverse affect on your loan approval.

A 1% increase in rate could be the difference between getting an approval or denial.

Headline News / Employment –

Underwriters are human and watch the news just like you. Borrowers who work in a volatile industry during hard economic times may have to jump through a few extra hoops to prove that their employment and income is secure.

Job changes, periods of unemployment or property location in relation to the subject property are other things to consider that may cause a speed bump in the approval process.

Title / Property Flip –

A Flip is considered a property that has been purchased by an investor and quickly sold to a new buyer within a 30-90 day period. Generally, an investor will do a little rehab work, fresh paint, landscaping…. and try to re-sell the property for a profit.

While it seems like a perfectly fair transaction, many lenders have strict guidelines in place that prevent borrowers from obtaining financing on properties that have a previous owner with less than 90 days of documented ownership.

These rules change frequently, and are specific to particular property types, so make sure your agent is aware of any changes in title in the last 90 days.

Homeowner’s Association Insurance –

Some lenders require Condos and Townhome communities to have sufficient insurance and reserves coverage pertaining to specific ratios on units that are owner occupied vs rented.

It may also take a few weeks and cost up to $300 to receive an HOA Certification, so make sure your Due-Diligence period is set accordingly in the purchase contract.

Appraisal Ordering Procedures –

Appraisal ordering guidelines are changing quite frequently as regulators implement many new consumer protection laws created to prevent future foreclosure epidemics.

Unfortunately, some of the new appraisal regulations have proven to slow the home buying process down, as well as confuse lenders about the true estimate of neighborhood values.

VA, FHA and Conventional loan programs all have separate appraisal ordering policies, so make sure your agent is aware of which loan you’re approved for so that they document any anticipated delays in the purchase contract.

For example, if an appraisal takes three weeks and the average time for an approval is two weeks, then it probably isn’t smart to write a purchase contract with a four week close of escrow.

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Related Articles – Home Buying Process:

• Home Buying Process
• First-Time Home Buyer Credit Checklist
• Assembling Your Home Buying Team – Knowing The Players
• Important Factors To Consider When Getting Financing On A Foreclosure, Short Sale or New Construction
• Where Does My Earnest Money Go?
• HOA Hurdles to be Aware of When Looking at New Properties
• What You Need To Know About The Home Inspection Process

I’m sure you know how we got where we are at, but do you really know where we are at?  Everyday I speak with my friends from markets across the United States that are considering changing careers.  The same questions come up, “How is it possible to create a great experience for a borrower with this environment?”  I don’t pretend to know the answer because, in my opinion, there isn’t one.    

• Telling your borrower three months after closing they need to provide proof they’ve personally paid a credit card on their credit report for 12 months, showing their bank statements for the last 12 months.  How and why would they have trust and confidence to refer their friends and family? 
• When you receive a loan approval with 45 prior to doc conditions, then it takes 45 minutes to explain why so much documentation is needed.  How are your clients to have the trust and confidence to refer their friends and family? 
• Loan guidelines forcing Mortgage Professionals to order two appraisals on a property, after one has already been received $14,000 above selling price.   How are today’s clients to have trust and confidence to refer their friends and family when they feel they’ve been mistreated and forced to pay excessive costs? 

When this happens over and over and over on every transaction, why would Real Estate Professionals continue to refer their clients?  It’s simple… they don’t.  They move on to the next Loan Officer.  Your past clients don’t refer you anymore.  You soon realize you don’t have a passion for this industry anymore and “Even Great Warriors Die In Battle.” 

For those that make it through this, we are the survivors, we are the fighters and we are the ones who will shape the perception of this industry so many love.  Live the Dream - Carpe diem quam minime credula postero!

So you’re in the market to purchase a home in Phoenix, Arizona?  You’ve saved your money, but were hoping to find something with a low down payment.  Unfortunately, most of the affordable houses in your price range are unable to be financed with a FHA home loan.  It is beginning to seem like your only option may be Conventional financing, which requires a significantly larger down payment. 

There is another option.  It is possible to take advantage of today’s low interest rates and affordable home prices in Phoenix, while still benefiting from a reasonable down payment.

You can purchase a home, which is owned by mortgage giant Fannie Mae, for as little as 3% down.  Fannie Mae currently owns many homes taken over through the foreclosure process in Arizona.  These homes can be financed through their new HomePath^® program, specifically for Fannie Mae REO properties.  Listed below are some of the highlights. 

HomePath^® Financing Highlights

You can search for Fannie Mae REO’s at in Arizona by clicking here.  Fannie Mae is also offering a 3.5% incentive* for buyers who purchase and close on a Fannie Mae-owned home between January 28 and April 30, 2010.  Buyers purchasing properties listed on this site that are closed within this period may receive up to 3.5% of the final sales price for:

• Closing costs;
• The purchase of new Whirlpool® appliances by Fannie Mae; or
• A mix of closing costs and appliances, at the buyer’s discretion, up to the maximum 3.5%.

Our mortgage team works with many Real Estate Professionals that specialize in locating these homes for our borrowers.  Please feel free to contact us for a referral of someone who is qualified to assist you in writing a contract, negotiating terms and obtaining the best long-term strategy for you and your family.  Purchasing a home involves many other aspects than just negotiating a sales price.  It’s very important to know, upfront, how to properly structure your real estate offer upon submitting your contract to Fannie Mae.  Contact us today to begin the process.

What are the changes that take effect January 1, 2010?

As of January 1, two of the forms used in all financing transactions will be changing. The Good Faith Estimate (GFE) and the HUD-1 Settlement form will now be standardized across the industry. The way we use these forms is also changing. All the changes are intended to make it easier for you to compare loan offers from different lenders and to make the best choice for your unique financial situation. 

I thought the GFE showed me loan scenarios to choose from.

In the past many lenders used the GFE as a sales and marketing tool. This is no longer the case. Now when you receive your GFE, it will reflect specific loan terms and a single scenario option. The GFE’s new role is as a binding document ensuring your loan costs, barring certain changes you might choose to make. We have other ways to show you loan options and their costs side-by-side so you can make an informed decision about your financing choices.

 What about comparisons to other lenders?

The third page of the new GFE form is a chart you can fill out to compare the offers you get from several lenders. 

Why do I keep getting forms in the mail about my loan? I thought we were moving forward already.

The package of documents you receive are collectively referred to as “disclosures,” which are provided to allow you to review the proposed loan and its terms. You are usually asked to review the disclosures and sometimes to sign and return them. If certain elements of your loan change — including loan amount, interest rate, fees, addition or removal of a coborrower, property appraisal — then the lender is required to re-disclose the loan. It is common for lenders to re-disclose many times during the loan process and the new regulations are likely to increase the number of disclosure packages you may receive. What is important is that you understand that each disclosure package is being sent to update the terms and fees of your loan. If you have any questions about anything in these disclosure packages, you should contact me directly. 

Do I have to pay any fees before I receive the GFE disclosure of costs?

Under the revised regulations, the only fee you can be required to pay prior to receiving your disclosures is a credit report fee.  

Is the GFE my loan commitment?

No. It is a Good Faith Estimate of the settlement charges for a specific loan. You decide whether to proceed with your loan after you receive the GFE. Your application will not be processed until you have received the GFE and communicated to the lender that you wish to proceed with the loan. This gives you the opportunity to look at the costs of the loan and to comparison shop with other lenders.

 Do I have to use the inspection services recommended by my lender?

No, but the lender is required to provide the information about and cost for service of at least one vendor for third-party services you require where you have the ability to choose your service provider. These mostly include inspection services such as termite or roof inspection, and title services. For certain services you may choose to opt out and find your own service provider. If you do choose to opt out and select your own third-party service provider, then the lender is not bound by the requirement to provide an estimate of service costs that is no more than 10% lower than actual costs. Instead, a new GFE is issued.

 Can I be charged separately for services like my roof inspection or termite inspection?

No, your lender can not charge you separately for those services. Those services must be estimated at the time of issuance of the GFE. This protects the borrower by disclosing all fees to the best of our knowledge up front and helping you compare and shop for loans.

The seller is paying part of my closing costs. Why is the full cost listed on the GFE?

All charges the borrower may incur must be listed on the GFE, regardless of whether some of those costs are paid by another party. The GFE is not intended to compute cash-to-close; rather, it is designed to display all of the costs associated with obtaining your mortgage.

How long does the GFE remain a binding document for my costs?

If you do not let the lender know that you wish to continue with the loan within 10 business days after the GFE is issued, the lender is no longer bound by the GFE. We will allow you 30 days to notify us of your intent, allowing you more time to review the options we present and to compare our programs with those of other lenders. It is important to us that you feel you are well-informed and making the best choice for you.

Remember that the new rules and regulations were instituted for the sole purpose of protecting you, the consumer, and to make it easier for you to shop for the financing that best fits your needs. If you have any questions about the changes mandated by RESPA and how they may affect your loan, please contact me. I’m happy to answer your questions and to show you the financing options available to you!

USDA Home Loans - 100% Financing

If you’re interested in purchasing a home in Arizona but don’t have the available resources for a down payment, look no further than the U.S. Department of Agriculture (USDA) Home Loan.  The USDA has a guaranteed home loan program available to help individuals and families purchase a home in Arizona located in certain qualified rural areas.

How do you qualify for a USDA loan? As with most mortgage loans, you must demonstrate your ability and willingness to repay the loan in monthly installments. Your credit history and other monthly obligations will be analyzed to determine if you have the reasonable ability to meet repayment obligations on your current debts and the new mortgage payment. Additionally, you must show that you have steady and sufficient income that is enough to meet mortgage payments, as well as discretionary income remaining each month.

Credit Eligibility

If you know you have made all past credit payments on time and have a good credit history, you should be a good candidate for a USDA home loan.  If you have some “spotty” or derogatory credit, you may still be eligible for a loan, as the USDA mortgage guarantee home loans do not have a minimum credit score.  However, most banks have an overlay of a 620 FICO requirement. 

When the mortgage loan underwriter reviews your credit, they’re analyzing your willingness to repay the loan. If your credit history currently shows late payments or even previous bankruptcy, you may still be able to increase your credit score over time.  It may take some effort but don’t get discouraged.  Your first step is to find out what your credit rating currently is.

Most late payments should usually be at least one year in the past, and your current history must show that you have met your credit obligations on-time and diligently for at least 12 months. If you have filed for previous bankruptcy, the discharge date will usually need to be at least two years prior to applying for the loan. You must show that you’ve re-established credit and been diligent with debt payments after your bankruptcy.

Typically, if you currently own a home, you would not be eligible to finance a new home with the USDA home loan.  There are exceptions to this rule such as; a borrower relocating from a different state as a result of a job transfer.  If you currently own a home, you should contact a mortgage professional to find out if your specific situation will allow you to purchase another home. 

Income Eligibility

The USDA home loan guarantee program is designed to help low to moderate income families. There are income restrictions depending on the area you wish to purchase a home. Your loan underwriter will look at your gross income, income from any co-applicants, as well as any other adults who plan to live in the household. If your income exceeds the maximum limit, you may still receive certain adjustments to your gross income that will help you qualify.

In order to give a loan underwriter a clear picture of your income, you will need to submit copies of at least two years of W-2 or 1099 tax filings. If you are self-employed, two years of full tax returns may be necessary to determine a good average income. If you currently work for an employer, you should provide copies of at least one months of pay stubs. You may also click here for a checklist of items you may need for the processing of your home loan.

There are specific debt-to-income tolerances allowed with manually underwritten loan files.  USDA also uses an automated underwriting engine to make a final decision, which may allow those tolerances to be exceeded.  It’s important to have your scenario approved through the correct automated underwriting engine and you should contact a mortgage professional to proceed with this process.

SOME Eligible Areas in Arizona:

Metro Areas:

• Buckeye, AZ
• Anthem, AZ
• Queen Creek, AZ
• Casa Grande, AZ
• Sierra Vista, AZ
• Tucson, AZ
• Yuma City, AZ

County Areas:

• Cochise County, AZ
• Pima County, AZ
• Pinal County, AZ
• Santa Cruz County, AZ
• Yuma, County, AZ

You can click here to determine if the property your thinking of purchasing can be financed with this program.

Before you begin the searching for your home contact the David Krushinsky Team at 602-695-7575 or david@dkhomeloans.com to see if you qualify for the USDA 100% financing home loan in Arizona. 

* Because of the complexity with financing homes with swimming pools under the USDA home loan guidelines, we strongly recommend that you avoid submitting offers on homes with swimming pools.  USDA has historically declined financing almost 100% of these homes.

I’ve been to all the other seminars before this event and watched some really great speakers, but none of those seminars had quite the impact as Mortgage Revolution has.  Let me take you back and tell you about my experience. 

Originally, I was going to attend the event with a long-time friend.  He was unable to make the trip right at the last minute, so I was left traveling alone.  I arrived in Atlanta early on Saturday night.  I had received an email from Mark Green, inviting me to watch football or network with my colleagues at the Waverly Bar earlier that day with Mark’s phone number.  Although I had never met Mark, I decided to meet up with him and a few other guys and catch the Dallas/Phillie game.  The guys immediately welcomed me to join them and bought me a beer.  After getting to know a few people, we left and went to the Waverly Bar.  Upon arriving at the bar, I was immediately introduced to Mark Madsen, Dave Savage, Bob Rutledge, Rene Rodriguez, Derek Edeberg, Brian Larrabee, Chris Brown, Dustin Hughes, and many other well-known individuals in the mortgage industry.  Right away, I knew this event was going to be something special.

The speakers that came to this event didn’t get paid to share their ideas.  They didn’t get free airline tickets, free dinners and a hotel room.  They were there on their own dime, just like me and every other attendee.  They were there for their dedication to the industry promoting change.  In fact, the organizers Mark Madsen, Brian Larrabee and Mark Green actually paid to be at this event as well.  This event wasn’t about selling products and services.  This event, Mortgage Revolution, was about giving back to our industry, our referral partners and our community.  This event was developed to bring street level originators together for the purpose of education, networking, and change. All the money that was made as a result of this event is being donated to 3 charities.      

The next day, I went to the conference and watched Ric Edelman, Rene Rodriguez, and Dave Savage tear it up on stage.  By the end of the first session, I already had so much information; I could have left the seminar without any more information and still could not implement everything.   Once lunch came I had no plans so I headed down to the sports bar and was invited by some other loan officers I had never met to join them for lunch.  I had done a conference call with Dave Savage a few weeks prior to the event and one of the people in front of me recognized my name from the call.  His name was John Fortener from Home Savings of America.  During lunch, we all shared our thoughts about why we were attending the event, our marketplace challenges etc.  This turned out to be one of the best lunches I have ever had with a group of like-minded people in our industry.

Later that night, I decided to head back to the Waverly Bar to do some more networking.  That night I met up with Dustin Hughes again and started talking.  Dustin and I became friends on Facebook a few months back.  I had heard of Dustin through Loan Toolbox and knew he was an intense, passionate guy.  He was with some other loan officers and we shared some business ideas.  Dustin also shared a story with us about how he had approached a successful Realtor in his market.  Dustin shared with us the events of his initial meeting, which fostered a relationship with a top producing Realtor.   Rather than tell this agent the same thing she’s heard before about products, rates and services, Dustin took a different approach.  He took us back to the meeting in her conference room.  They both sat at the head of the table to show signs of strength.  He acted as if he had nothing to lose and she had everything to gain.  He professionally let her know he wasn’t going to beg for business.  He was there to show how he was a professional and the reasons they should work together.  It was a great take-away.

The next day was filled with great speakers once again.  After an all day event of taking notes, I returned to my hotel room about 5 pm and headed back to the event at 6:30 pm.  This time it was all about sharing with a smaller group.  A group of individuals who were there not to just party but to dominate the world, in Mark Madsen’s words.  We were a group of 50-60 people.  We were all hungry to learn more information and give more to others.  We listened as Mark Madsen showed us how he’s using blogging in his market.  Jason Klaskin (jkmortgage) took charge of the meeting and then we shared our own story.  Each person in the room was given the microphone and allowed 30 seconds to share two things; one thing they do better than anyone on their marketplace and/or what the one thing they were most proud of in 2009.  There were many awesome stories.  The ThinkBigWorkSmall guys were there and talked about adversity they’ve encountered.  Another story was how someone has been able to use Facebook to become the most well-known Loan Officer in their marketplace with spending very little money.  In my own words, it was the pinnacle of the event. 

To go full circle on my feelings about Mortgage Revolution, this didn’t change my life because I sat in a chair and learned two good ideas.  This changed my life because I have built life-long friendships with some of the most respected individuals in this industry.  If you haven’t heard of some of these guys, I can assure you over the next 5 years they will be the biggest individuals in our industry.  They are changing the game.  They are the “Dream Team” of the mortgage industry.  They are here to do what others said can’t be done.  If you feel like you missed out….. you did.  The good news is that Mortgage Revolution isn’t done.  It’s going to be localized in areas across the nation.  I’ve already heard about a San Francisco event in April.  If you’re interested in that event you should email me.  I’m making a plan for myself in the future and I am committed to changing this industry.  Roberto Monaco said, “Either have a plan for yourself or you’ll follow someone else’s plan.”