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Frequently
Asked Questions
Q: Do I have to be a licensed loan officer to offer this
program?
A: No. You are not being hired as a loan officer, but to
process the loans on those you refer to the program. We use a
national mortgage banker as our mortgage provider, and as such you
are not required to be individually licensed.
Q: How much work do I have to do?
A: Once you do a savings analysis for a client, you will
use the free loan origination software we provide to take the
basic information that we need to underwrite and process the loan.
You will also provide your client with a document checklist,
asking for things like tax returns, W2's, copies of homeowner's
insurance information, mortgage statement, and possibly checking
account statements and other documents. After that, we do the
rest.
Q: Who qualifies for
mortgages?
A: Our underwriter can provide mortgages for most
borrowers, even those who are self-employed and who do not wish to
make their tax returns and pay stubs available. We have programs
for those with not-so-good credit or who have had a past
bankruptcy. In general, one must prove that they have either been
employed or in business for themselves for at least 2 years, and
who have at least 20% equity in their homes.
Q: What fees are involved in
getting a mortgage?
A: Typically, the fees include an appraisal for around $350,
then loan processing fees including a lender fee, underwriting
fee, loan origination fee, title insurance, recording fees and
closing fees. The total fees usually average less than 3% of the
loan amount. In our online savings analyzer, we are assuming 3% of
the new loan amount as loan fees.
Q: What is the process of
getting a refinanced mortgage?
A: First, we need to make sure that you are either going to
save money each month through debt consolidation, or that you wish
to borrow money for another purpose. Next, your sponsor will get
your information into our loan origination software. We send this
to the lender and you receive a full disclosure package, including
a Good Faith Estimate of closing costs, a Truth in Lending
document, and several other disclosures. If you agree with the
terms, we will order an appraisal on your home. Assuming that the
appraisal comes in where it needs to be, your loan is processed.
Payoffs will be ordered on your current mortgage and other debt
that you wish to pay off. You will be given a settlement date. At
settlement, you will sign your mortgage documents. At this time,
you still have a 3 day right to cancel the loan without penalty.
This way you are protected against signing a loan package based on
incorrect information.
Q: Why do you charge $49 to
offer the program?
A: When I get someone started, I have to spend time creating
and setting up their personalized site, including several pages
and an auto-responder. In reality, most people
will sign up for anything if it were free and then never do
anything with it. This nominal fee keeps me from spending my time
setting up everyone who thinks they will do this, but who really
are not interested in promoting the program. If you participate in
a mortgage refinance, you will not be charged the $49 fee.
Q: How much money do I make on
a deal?
A: On any deal where the mortgage size is at least $100,000
and one point is charged upfront, the commission is $1000. On any
mortgage less than this, the commission is reduced by $100 for
every $10,000 below $100,000. Thus, on an $80,000 mortgage, the
commission is $800.
Q: How am I paid?
A: As of this time, you are paid as a 1099'd contractor. No
taxes are withheld from your income.
Q: Do you offer any tutorials?
A: We have a
tutorial page. Please visit it to see what the
current topics are. |
