Hi All,

I've been studying like a lunatic since early January. Passed my Calif. Real Estate Salesperson exam, finished the Practices course and am now taking the Finance Course. (I'm getting a 4 year license instead of the 18 month provisional.)

I must confess to being overwhelmed and perhaps even a bit frightened about the Loan aspect of Real Estate sales. Honestly, even after studying, I have NO idea what to tell real people in real circumstances about types of loans, where and how to get them, how to tell if they should even consider trying to get one... etc. In other words, the more I study, the less I know.

Can anyone give me some info that will help me get over the fear of leading someone in the wrong direction? I am as green as green can be. I'm assuming once I get hired my broker will help, but I would like to walk in the door knowing something!

Thanks SO much!

California Karla

I would suggest a book called, "The Loan Officer Guide" by Frederick R. Williams. It's usually sold out on Amazon but you might catch it at an available time. Other than that, read all that you can and keep motivated.

Cheers!

I give all my new LO's the "Book of Home Finance" by Dave Hersham. Here's a link: http://www.originationpro.com/bookch1_download.html

Chapter 1: A Home as an Investment, Tax Deduction and Inflation Hedge

Chapter 2: Sources of Mortgages

Chapter 3: Types of Mortgages

Chapter 4: Qualifying For a Mortgage: Ratios and Residuals

Chapter 5: Comparing Mortgages

Chapter 6: Refinancing a Mortgage

Chapter 7: Applying and Packaging Your Loan for Approval

Chapter 8: Mortgages, Home Ownership and Taxes

There is a whole lot you need to know to be on the financial end of this business. This book is downloadable and should help out a little. Also visit www.adfinet.com and register for a login and password, there is some valuable information there.

Study fannie mae and freddie mac guidelines. You can visit www.brokeruniverse.com/grapevine there is a wealth of knowledge there. I would not mention you are a realtor, you will get eaten alive. Hope this helps.

Thank you both for your help. I really do appreciate it. I have great respect for the work you do. I've read previous posts by both of you and I was hoping to hear from you on this!

Just curious Robert - eaten alive for being a Realtor? How come? Forgive my ignorance (and it's ok to laugh at me if you like ...smile!) but I thought Loan Brokers and Realtors made good teams - passing referrals back and forth to one another - no?? I have a friend who's studying to be a loan broker and he and I are excited about sharing leads.

Thanks again,

Karla
California

A lot of brokers who post on that board have had some serious issues with realtors. There are many horror stories if you do a search for "realtor", "relitter" or "realturd".

Basically where the problems come in to play is when there is a lack of communication between realtor and LO. Everyone HAS to be on the same page. It should be a very professional relationship. The realtor has to have a certain level of understanding of exactly what is involved on the financial end. It isn't simply "paper pushing" as you are now finding out.

This will be the hardest thing you have ever done in your life. This is a very highly regulated industry. I made the mistake of teaching myself 12 years ago. Worst/Best decision I ever made.

Learn all you can about TILA, FACTA, RESPA, GLBA, HOEPA, HMDA, which states require the LO to be licensed, some require continuing education (CA Does), NJ requires a solicitors license, each states required disclosures in addition to the standard federal disclosures, which states require a Broker Agreement, when YSP has to be disclosed and when it doesn't, the difference between SRP and YSP, How to calculate debt, payment shock, LTV, CLTV, HCLTV, income, assets, SSI income, IRA's, how to read and understand tax returns for self employed, S-Corps, what to do if the property is under an LLC, what to look for in a title commitment, appraisal (not just the value), how to read and understand a credit report, how margins and index's play a role in ARM's, which index is tied to which ARM, how to come up with the FIR, how a loan amortizes.

I'm going to stop here, I'm rambling....but there is so much more. If you ever have any questions or need help, feel free to give me a call. I have been in every aspect of this business.

Heres another link: http://www.lioninc.com/market_snapshot, this will keep you up to date on mortgage rate trends as they tend to follow the yield on the 10 year Treasury Note. Watch Bloomberg TV for what helps or hurts the bond market. ex: faster inflation, jobless claims, Federal Reserve meeting minutes, auctioning of government debt via the notes, stronger or weaker economy, consumer price indecies, consumer confidence, corporate borrowing, futures, oil prices, the list goes on and on, but I promise this will help you.

Yikes Robert!!

Your 'ramble post' outlines precisely why I want to become a Real Estate Agent and not a Loan Officer or Mortgage Broker - LOL! I have a tremendous level of respect for anyone who conquers that rather scarey world of real estate finance.

My goal here is to be able to respond to my client's questions about financing their purchases with some degree of intelligence and knowledge without taking over the duties of the professional loan folks.

I did buy and download the book you recommended and I'm very excited about studying it. I think it will give me the knowledge I need without overwhelming me. I don't want to get so bogged down in the finance aspect that I never get any listings!

Thanks SOOOO much for your wonderful, helpful attitude. I hope I can one day be as helpful to 'newbies' - of course, that will be long after I have overcome my 'newbieness' - LOL!

~Karla
California

You are very welcome! I wish you the best.

Karla,

Get partnered up with a good Loan Officer and let him/her work with your clients in regards to financing. Always have the LO prequalify your clients before you start looking at homes. Your time is best spendt learning to become an expert in RE sales - marketing, contracts, negotiations, knowledge of neighborhoods, values, disclosures, etc. There are many top producing Realtors that know very little about financing; they do know how to pick the right partners, though.

Since we are both in CA call me if I can ever be of any help.

Karla email me and I will keep you in the loop. Seasoned on the Loan side New on the Realtor side but have many friend that give good advice. Thanks

Thanks Karla for the warm words! I never lose sight of the fact that I was once a newbie, too. I'm always willing to help...

For you and anyone out there that wants a free educational material on Mortgage 101... please email me at Sean.Pham@yahoo.com... I'll be glad to send the attachment.

Thank You,

I am here to offer my 22 years of mortgage intellectual property. I close 278 mm a year in 10 states just from Internet leads for the past 8 years...I can help you and I will need Realtors to help me write offers on pre-approved buyers. I can buy many leads from a certain zip code area..

Ciao,

Proman

PMM, what's up man! You still in Nebraska? Haven't heard from you in years...since the days on the vine.

Call me and I'll spend some time quick preping you... Theres not alot to worry about... Set aside 20 mins and call... I'll get you where you need to be..