Category: ‘Uncategorized’

Shopping For A Loan Officer

April 3, 2011 Posted by Andre Hemmersbach

Getting a mortgage in today’s lending environment is not as easy as it used to be. Below you will find some helpful hints in making sure that things get off to the right start.

-Always remember your loan is not being done by an institution (i.e. B of A, Wells Fargo) it being processed, set up and ushered through a maze of steps and hurdles by your LO “loan officer”. The experience, knowledge and honesty of the LO is the sole determining factor on how your transaction runs not the company name.

-Use a DRE “Department of Real Estate” Licensed Loan Officer that has been seasoned and comes highly recommended by someone you trust.

-Check using the Department of California web site at: to find out if your LO is licensed and in good standing. Click on the yellow box on the left side of the page titled “Real Estate License Lookup”, you will have to enter the loan officer in the following manner: last name, first name. Try my name: “hemmersbach” and “andre”. It will give you information on how long your loan officer has been licensed and if they are in good standing. Some institutions, Federally Chartered Banks and Savings & Loans for instance, do not require their employees to be licensed, this means you could be dealing with someone who is inexperienced, could not pass the exam or just does not feel that educating or licensing himself is important. (By the way check out your Realtor also…you maybe surprise!)

-Never pay an upfront fee to anyone.

-Start early (3 months before you start looking for a house….yes that’s right 3 months) if there is something wrong with your credit or credit scores, it could take up to 3 to 6 months to fix.

-If your middle credit score is not 740 or higher you will pay more than the lowest rates available.

-Shop your loan with a “Mortgage Broker”. Mortgage Brokers have access to the same institutions you would shop and many additional sources you would never have access to. The difference is that lenders such as B of A, Wells Fargo and other sources would much rather have their business come through channels other than their own loan officers as it is much cheaper form of origination. No phones, office expenses, processing employees or benefits. This saves them thousands of dollars per file…savings they pass on to you through “Wholesale Pricing” only available to Loan Brokers.

Please call me if i can be of assistance.

Short Sale Hang Over

February 15, 2011 Posted by Andre Hemmersbach

Long after your Short Sale deal has closed you could be in for quite a surprise. Deficiency judgments have increase around the country over 48% in the last year according to a Bloomberg article by Kathleen M. Howley (see link below.) A Deficiency Judgment is when a creditor files a judgment against you for a portion or all of your debt that is not paid. Just because the bank agrees to accept less via a short sale agreement a quick visit to your real estate attorney to review the contract could be advisable to protect yourself.

While deficiency judgments have been historically rare, especially in trust deed states such as California, knowing the law as it pertains to lenders rights on collecting debt may prevent unforeseen surprises.