You are viewing the printer-friendly version of How Has the Mortgage process changed over the past 15 years?How Has the Mortgage process changed over the past 15 years?In March 2004 the Mortgage Bankers Association had their annual awards banquet in which Stephen Katz was awarded the "Diamond" award for the 2nd year in a row. Stephen finished 2003 with over $80,000,000 in closed loans ranking him #9 in the state. After the banquet, Stephen was interviewed and a portion of that interview has been reprinted here:When I first got into the business in 1993 some mortgage companies would not accept faxes. Now a lot of those same companies offer online applications. Overall I would have to say that the two biggest changes have been credit scoring and automated underwriting, both of which have been a tremendous help for both the consumer and the industry. I think that you have to look at the reasons why interest rates are rising and it is mainly because our economy is heating up. We are seeing salaries increase, many spouses finding jobs, and more corporate relocations. Also, there are some new mortgage programs, such as Interest Only and increased FHA limits that make owning a home more affordable than ever. Zero-down payment programs also go a long way in removing the barriers to home ownership. I would definitely say the investor loan business. Many of my past clients are making money buying rental homes. Some of them keep them for rental income; others fix them up and sell them for a profit. Today, there are a wide variety of loan products available, requiring much smaller down payments than in the past. You'll find that most wealthy people today have had a hand in real estate at one time or another. Do business with somebody you know and trust. Unfortunately, many states have no licensing requirement for loan officers. If it's your first mortgage, get recommendations from your agent, friends, and coworkers. Shop for rates among 3 or 4 lenders. The Internet is great for research, but you wouldn't choose an accountant or a dentist or even a painter for the kitchen based on who has the lowest price for their services. The big word is accountability. I have heard many stories where a buyer chose an unknown small mortgage broker over the internet. The numbers at closing were not what was promised on the original paperwork. The buyer had no choice but to close anyway for fear of losing the house or his earnest money. A mortgage company or loan officer who has been in business for several years and has business relationships in the community has too much at stake to try to take advantage of the borrower. To learn more about the Mortgage Bankers Association click on http://www.mbag.org/gold.html. |