Randy Johnson of Newport Beach, author of “How to Save Thousands of Dollars on Your Home Mortgage” and a mortgage broker since 1983, answers questions.
Peggy in Portland, Oregon asks:
Q. We have been trying to do a refinance on an investment property. The entire experience has been a nightmare, drawn out, requesting yet more information after the time that they said it would be done, over and over, finally culminating in ‘the last straw.’ We finally signed documents, thinking ‘whew!’ done deal. Typically, we were told, funding would occur in 2-3 days … Our mortgage broker calls us after we have confirmed that we have NOT, indeed, been funded, saying that (the lender) has requested yet another piece of documentation. My question is: Is this ethical or legal to withhold funding AFTER everything has been signed at the title company, and request another piece of information well after the guaranteed date of funding?
A. Half the people in the mortgage industry are less competent than average and perhaps you have run across a cluster of them. Your tale is not uncommon but these days with volume down, one would think that they would be busting themselves to fund your loan. Virtually every approval has “Prior to Doc” conditions that have to be done prior to release of documents for signature and “Prior to Funding” conditions. Those are usually minor paperwork kinds of things, not deal killers. At my company we can get a loan approved in a few minutes and we know exactly what information is needed instantaneously. In these days of automated underwriting, frankly there is simply no excuse for what you have experienced.
Diane in Placentia asks:
Q. I am asking this question for my brother. He is considering buying a home in the north O.C. area using his GI bill, even though his job may require a transfer to another state in a couple of years. He thinks that not paying rent, and having a tax write off will put him ahead of the game. I have suggested to him that purchasing a home, when he may need to sell it in a couple of years may not be wise. Is there a minimum number of years someone should plan to stay put, before trying to sell?
A. It’s not a matter of years but of appreciation. Things are very uncertain now and we don’t know what the future holds. Basically, this is the deal: When he sells he will have to pay a sales commission to the real estate agent who handles the sale. If the home doesn’t go up 7% in value before it’s time to sell, he will have to write a check to close escrow. So if his time horizon is limited, renting would make more sense.
Judy in Cypress asks:
Q. Where is a good place to start in looking for a mortgage to purchase a home in Orange County? How do I get pre-approved or pre-qualified before I begin my search for a property?
A. Good question. Actually, I think that getting pre-approved and getting an education ought to go hand in glove. Buying a home is an expensive and complicated proposition. Well educated borrowers save lots of money so education really pays off. Start out with my book How to Save Thousands of Dollars on Your Home Mortgage, which is available in bookstores, online, or at the library. Of course, I would be happy to help you, and books are free to my clients.
That’s it. Read prior questions and answers by clicking on the headlines below…
- Can you be too old to get a mortgage?
- Why aren’t foreclosures cheaper?
- When you can’t afford your mortgage
- How much to put down and other mortgage answers
If you want Johnson to answer a question, email it to Mathew Padilla at mapadilla at ocregister.com. Include your name or nickname and the city you live in — that information will be published with your question. Johnson will answer up to three questions each week, so keep checking back for a response. If many questions are submitted, it could take a while to get a response, or he may never get to it.
Matt, here’s another free advertisment or commerical for Randy Johnson. Are you getting a quarter point on every deal? You owe it to your readers to give free advertisments to other mortgage brokers on your blog.
Bill-1a,
Randy is doing this for free. He is reliable and knowledgeable about mortgages. By reliable I mean he consistently responds to questions in a timely fashion. He has also authored a couple of books and has been doing mortgages for years, so those things give him credibility.
Yes, he is promoting one of his books and himself here, but I feel that is a fair trade for his time. I don’t have a budget to pay anyone to write for this blog.
I have had posted copy from other brokers. For example, Johnson doesn’t do FHA, so when a reader asked an FHA question I had another broker answer it. I will continue to find other brokers as questions come in for which Johnson is unqualified to answer.
But I cannot have rotating brokers or loan officers answering questions or writing for this blog. That would be too difficult to manage and some would inevitably not meet deadline. It’s been my experience that while lots of people think they would like to write something for the media, few actually perform consistently when given the opportunity. They realize it’s a lot of time consuming, high pressure work. And the pay is less than ideal. In this case, it’s nonexistent.
Matt….The pay is nonxisent, unless of course he gets one or two loans off his blog, in which case he’ll make thousands. Matt, this is marketing 101a, and Randy is choosing to market his business via your blog. Randy, or anyone for that matter, should give the answers to your questions without self-promoting in hopes of getting business for self gain.
Sorry, the word nonxisent doesn’t exist….It should have been nonexistent.
Yes Bill, of course if he gets new clients from this, he would earn money on the loans. But there is no guarantee that will ever happen. The point is readers get their questions answered for free, and they are happy about it. I have received positive feedback both from readers with question and others who want to learn more about the process of getting a mortgage. Johnson gets his profile raised and may benefit financially. Johnson has been a source for the Register for years and no consumers have ever complained about him to us. So bring on the questions people, and let’s move on.
I have two investment/rentals at lake elsinore ca. Payments are current, Fico - excellent.Both have ARMS to readjust in 2010. I can’t re-fi because of the appraisals. Why do I keep hearing I have to be in a dire situation to maybe get help. I was told to come to closing with 25.000 each to re-fi . Should I have? anna