Episode 033 - Mortgage Underwriting Tips, Tricks and Myths with Missy Arbuckle PART 1
Episode 033 - Mortgage Underwriting Tips, Tricks and Myths with Missy Arbuckle PART 1
Being a legendary agent requires a knowledge base of the inner workings of the many parts of a real estate transaction. In this episode, we “pull back the curtain” and reveal a mysterious person that you never get to see, hear from or speak to…the underwriter!
We want to help you to understand the back end of a lending decision so you can better prepare your clients for issues and concerns. Knowing the underwriting process will help you stand out as an expert. Today is PART 1, where we'll discuss underwriting a borrower with Underwriter Missy Arbuckle.
Stay tuned for PART 2 next week...underwriting an appraisal. Both episodes are informative and fun as we get to actually talk to and hear from that elusive person that hides behind the curtain.
SHOW NOTES
- 01:53 – Episode 33, interviewing an underwriter; PART 1: underwriting a borrower
- 02:28 – Underwriter is so mysterious, unreal, hidden in the secret room.
- 03:03 – Song of the episode: Cheap Trick: "Don’t Be Cruel". Underwriters, don’t be cruel.
- 04:00 – So much weight on one person. Rules, regulations, and a thankless job. Don’t beat up and criticize them. Be nice to them.
- 04:40 – Introducing Missy Arbuckle, Underwriter with GVC Mortgage
- 05:25 – Missy: FICO credit score is top. Higher scores are required for many reasons.
- 06:06 – Down payment: funds to close. Minimum required investment from the borrower. More errors or issues pop up such as large deposits. Cannot use cash that is saved at home. It must be trackable and traceable.
- 07:15 – What does “seasoning” mean? Your money needs to be in the bank for a certain period of time: 30 days for a conventional loan and 60 days for a governmental loan.
- 08:20 – Explain where money came from. Sometimes can be tracked. Cash is so hard to use.
- 09:00 – So many borrowers don’t understand and get upset that they have the actual cash. Where did you get the funds? Drugs, prostitution? Weird turn in the episode. We don’t judge.
- 10:00 – What changes have happened with COVID-19? Conventional and governmental lending have all come out with new guidelines. Tweaked regularly. Furloughed employees; Income used to qualify a borrower; What did that look like before the quarantine and how does it look now?
- 12:10 – None of the agencies are the same so the underwriter has to keep track of the rules for each agency. Very difficult to keep everything in line.
- 12:26 – Credit scores tightened up. Looking more at reserves: does the borrower have money in the bank to make payments and for how long.
- 13:03 – While it is logical, it is tough for agents and borrowers to realize that changes are happening constantly.
- 13:30 – Is there anything that you would say to agents or wish they would know? BE PATIENT! Agents have a conversation with your buyers about income, unemployment. Getting info to the underwriter as soon as possible. Watch the mattress money.
- 15:50 – Secret handshake, password, favorite ice cream to get to the heart of an underwriter? Underwriters do have hearts. Have the borrower get documentation ASAP!! An underwriter sometimes has to guess.
- 16:55 – Underwriters must become detectives and researchers. Where did money come from? What did they do before this job? Tell them up front what is going on. If not, the underwriter will piece it together on their own and figure it out.
- 18:07 – If they get a file and explained, it will make it easier on the agent, borrower and everyone, and will give fewer conditions.
- 18:45 – Favorite story: borrower trying to buy a home so her elderly parents could live with them. When she can help someone and there is a bigger story behind the scene that makes it all worthwhile.
- 20:20 – Episode Quote: “Truth enlightens the mind but won’t always bring happiness to the heart.
- 20:45 – Producer Christian’s side note tangent quote: “I always feel like somebody’s watching me”. -Rockwell
- 21:25 – Agents, a lot of what makes you mad is beyond the underwriter’s control. Understand the process to help you and your client attain better results.
- 21:45 – Next week is part 2, underwriting the appraisal.
SHOW LINKS
- Pull back the curtain in the Wizard of Oz – https://www.youtube.com/watch?v=YWyCCJ6B2WE
- Cheap Trick, Don’t Be Cruel – https://en.wikipedia.org/wiki/Lap_of_Luxury
- Rockwell, Somebody’s Watching Me – https://www.youtube.com/watch?v=7YvAYIJSSZY
- Missy Arbuckle - https://www.linkedin.com/in/missy-arbuckle-841888167/
BETWEEN THE LINES LINKS
Web
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube