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KNOWING THE PROGRAMS
By Joel S. Pate
In the previous article I explained the one-time close construction permanent loan and how it benefits the builder and the borrower. Now it's time to talk about the programs and how vitally important it is for you to know and understand them.
As I speak to mortgage brokers all over the country, one limitation rises to the top of every conversation: What does it take to get my borrower qualified for a CP loan?
The answer is simple: You must not forget that the bedrock of every CP loan is the permanent loan product. A borrower must become qualified for the permanent loan.
What are the FICO's? What about payment shock? What about job stability and the other underwriting factors? The same questions and thought process you have utilized to qualify every borrower you have ever closed is the same process you will go through with the CP product.
Does the borrower qualify for the CP loan product that the lender offers? If not, the deal will not work.
I cannot stress enough how crucial it is to your success in this niche to know the programs. Concentrate on knowing the products offered by the CP lender. Print out the matrix, study it and be absolutely sure you understand it. Print out the loan program descriptions and make the time to read them. Read the CP loan manual. If the lender offers conference calls, listen in on a few until you really begin to understand the complexity of the various loans and are able to pick up on the details associated with talking to both the borrower and the builder.
Remember the importance of time blocking. I know how easy it is to get caught up in the details of the loans you have in process, but you must take the time to learn this niche if you are going to excel in it. I know this may sound like a lot, but if it were easy, everyone would be doing it, right?
Once you understand the loan product and how to complete the GFE, you are well on your way to understanding the dynamics necessary to successfully complete a transaction. Last week's article dealt with understanding the builder's need for the CP loan. Once you begin to master the loan programs you are almost ready to go into the market place to talk to builders.
Tune in next week, when we will cover the details associated with the putting the deal together. Until then, if you would like to learn more about one-time close construction permanent lending, visit www.vadiumgroup.com/cpexpert.php.
Dedicated to coaching YOU to CP Loan Success!
Joel S. Pate
Joel S. Pate, a dedicated entrepreneur, has spent more than two decades in the building, mortgage, and real estate industries and has been involved in over $100 million in construction loans and over $1.3 billion of residential lending.
As the CP LOAN EXPERT columnist, Mr. Pate provides straightforward, unbiased advice about every aspect of construction permanent lending. This week's article: "KNOWING THE PROGRAMS" is the second installment of Joel's unique training with simple strategies and tactics designed to teach YOU how to become the CP loan expert in your market. If you ever wanted to unravel the mystery surrounding new construction lending, then you should tune in.
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