QUESTIONS ARE THE ANSWER ...( thank you J. Douglas Edwards !! He was the original KING of sales ) ...
A CLEAN 1003, CLEAN LOAN, CLEAN SALE, CLEAN APPROVAL, CLEAN PROCESS AND A CLEAN PIPELINE all require a smooth battery of well planned and thought out questions!
Personal Screening Questions and talking points!
- Are You Self Employed or W2?
- Are you required to file a tax return? ( if so, whats the most recent year filed?)
- Are you married? ( do you file a joint return?) head of household, claim dependents, how many?
- If Self employed, are you an S-Corp or C-Corp and Sole Prop? ( How long? )
- Does your business or another person pay any credit cards that on your credit report?
- Are you able to document income?
- Q: what's the rule of thumb in regards to Social security Income and what
documentation I need to request to support the income of an individual
receiving social Security income?
A: If the borrower is of " Retirement Age" then all you
need is the 1099'='s received by the recipient. If they are not of
"Retirement Age"( 62 or more ) , then you need to request the Social Security Awards letter as well as the
1099's and possibly the bank statements showing deposits from SSA, VODs will work
- Are you looking to get cash back? Why? ( Get LOEs ) ( Home Improvements or Repairs? ) ask...
- Do you have any judgments, liens or collections?
- Do you have any outstanding student loans in deferment?
- Are you currently paying or co-signing any student loans or auto loans for children or self?
- How would you rate your credit? ( Good or Excellent? )
- Do you know your credit score perhaps?
- Any current trade lines in "dispute" status?
- Do you owe any back taxes to the IRS or County or State?
- Do you have any credit blemishes or disputed accounts and if so from what?
- Have you previously been married? ( if So how long ago and ask about $$$$ obligations )
- Has your spouse previously been married? ( Get divorce decrees whenever possible )
- Do you owe or receive child support or alimony?
- Have you had a short sale or foreclosure? ( 7 yrs wait for Conventional and 3 yrs FHA )
- Have you gotten a cash out refinance on your home? When?
If your new loan needs cash to be brought in to close, do you have cash in the bank you can use or loan yourself?
Loan Screening Questions
- What type of loan do you have now? VA, FHA, Conventional?
- Who is your current lender and have you been granted a loan modification ever and when?
- Do you have a loan application in process with another lender? ( why my loan VS theirs? )
- When was the last time you refinanced/bought? ( Do you have the HUD from that transaction?
- Who is on title with you now? ( Will it remain as is? )
- How do you hold title to your home? ( Family Trust? ) Get all trust docs. ALL! ( I had one with 2 76 pages faxes )
- Do you have a 2nd mortgage? Is it a HELOC?
- What’s the limit and current balance on your HELOC?
- If we need to freeze/modify your HELOC, are you okay with that?
- Subordinations usually cost $200 to process and take 2 to 3 weeks to issue. ( Cashiers checks only!! )
- ( Lock post approval or lock for 60 ) inform of the processing fees! ( see the Processing Tips Page )
- Do you pay taxes inside or outside of escrow? How do you want to do it in the future?
- Do you own any rentals or land? ( SEEK ASSETS, 401Ks etc )
- Have you filed the last 2 years tax returns or do you have a filed extension in hand?
- Have you sold any real property in last 2-3 yrs?
- What address do you use on your tax returns? ( home? PO BOX etc??)
- Are you looking to buy a home in the next 6 months ?
- If so, where are the funds to close coming from and how did you acquire the funds to close. ( gifts, bank, 401K, own cash, coffee can money, borrowed etc?
Property Screening Questions
- Have you made any additions to the home recently?
- What type of home is this? ( Condos have separate Insurance policy so be sure to get both the Master and the Walls-In Coverage )
- What condition is the home in?
- Do you have a covered closed in patio? If so, isit permitted?
- What are homes like yours selling for in your neighborhood?
- Do you have any projects going on at the home I should be aware of?
- Do you have a pool or in ground Jacuzzi? If so is it in good shape?
- Any leaks in the roof or spots on the ceiling?
- Any dry rot or termite damage? ( VA Requires Form 33 ) on most loans!
- If so is the pool filled with clean clear water?
- Do you have any security bars on windows?
- Do you have any non-permitted room additions or modifications?
- Any chipped paint and or chipped and broken stucco?
- Any mold or insect infestations? bees, termites etc.
- Any cracks in the fascia or foundation from roots or compacted soil?
- Do you have an HOA? How much do you pay in dues?
- Has your home been listed in past 6 months?
FHA To be eligible for the UFMIP/MMIP reduction offered by HUD the original loan must have been endorsed (insured) by FHA 5/31/09 or earlier. This is not the funding or recording date of the loan nor is it the note date. This is the date FHA insures the loan and can be verified in FHA Connection. We had a recent case in which the loan was not endorsed by FHA until 6 months after the loan funded!
If you need this date confirmed please contact FHA Connection or HUD provide her the previous case number.
Freddie Mac LP Open Access Max Loan Amount
The new refinance Mortgage amount may not exceed the existing unpaid balance plus
interest accrued through the date the mortgage is paid off, plus up to a maximum of the
lesser of 4% of the current unpaid principal balance of the mortgage being refinanced or
$5000 for related closing costs, financing costs and prepaids/escrows (actual costs only).
You cannot finance insurance premiums or tax installments that are currently due or past due.
MOST OF THESE ARE GREAT TALKING POINTS to BUILD A GREAT LOAN!!!...