Million Dollar Mortgage Part 2
Excerpt from the video Million Dollar Morgage Part 2 from the YouTube link on our front page in the upper toolbar.
Mike Addis Speaker 1 (00:00):
Hey, this is Mike Addis. Thanks for joining me. It’s always a pleasure to bring these videos. So this is part two of a million-dollar mortgage and it’s important because I don’t always get everything in the first video. And I can’t tell you things in the first video. So stay to the end of the video. I’m going to give you a recap. That’s why I tell you to stay to the end because the end is the recap. And I don’t always cover everything in the context of the video. So let’s go ahead with the video. And this is part two. If you recall, in part one, we talked about why you should use a mortgage broker as opposed to a bank and going directly to the bank. That doesn’t mean if you have an 800 FICO score, which is an 800 credit like you’ve got AA-plus credit in front of mine. Speaker 1 (00:39):
And Texas has that, and she’s buying a $250,000 house. And she’s been with the same company for 20 years and she’s been making an increase in income. She’s only buying a $25,250,000 house, which means if she puts 20% down, that’s 50 grand. She has way more than 50,000. Should she go to a broker? No, of course not. If you have super high credit and you’re buying or just the regular house, there’s under what would be considered a conventional loan because every part of the country has a different number. So in where I live, conventional loans would be, uh, anything it’s 722,000 and below, but in Los Angeles, it’s, I think it’s like 785,000 and above. That would be non-conventional. They call jumbo loans. But if you’re not doing a jumbo loan, forget about it. You don’t need to use a broker. I want to make that clear. Speaker 1 (01:40):
Why Mortgage Brokers
There are reasons to use brokers and the reason why I use a broker because I own my own business. So let’s go through the four or five reasons why I use a broker first place. Number one, I’m self-employed. What does that happen? The use would be, what does that do with using, using a broker? Well, I use the broker cause I want the broker to talk to the underwriter. What’s an underwriter. An underwriter is that person that sits at a desk and gives the final approval on whether you’re going to get the eight or 900,000 or a million or two or $3 million that underwriter. And then the underwriter has a supervisor. But if you have a top-notch underwriter, usually the supervisor is just going to rubber-stamp it, right. And say, you’re approved. So once again, why do I use the broker? Because the broker can talk to the underwriter. Speaker 1 (02:28):
Mortgage Underwriters and how they work
I can’t talk to an underwriter at my bank. I can’t go to Wells Fargo, Bank of America, chase, Citi Corp, or any of the other places where I have 10 bank accounts and talk to the underwriter. They don’t talk to people. Retail customer. I’m a retail customer. I’m buying from the street. Is that the only reason why I use a mortgage broker? Yes. What the heck do you think? I use a mortgage broker and pay him 10 to 15,000 to do an eight or $900,000 loan. You think I want to pay him a point and a half, which be like 12 grand? No, I don’t want to pay him that much money. I could do it for three or 4,000. Speaker 2 (03:05):
So if the mortgage Speaker 1 (03:07):
Bank Direct Morgtages
Broker is good, so number let’s go back to the top points. Okay. Number one, you don’t need a mortgage broker. If you’re getting a small loan, even if you’re getting a jumbo loan, like over 750,000, if you’ve got a high credit score and you’ve got millions of dollars and you’ve got a 50% equity and you’re going to do a refinance, you’d probably just go to your bank. Okay. But that’s not common if you just got a credit score and you’ve been on the job for 10 or 15 years and you go to your bank, you have a great relationship. Fine. Okay. I have a great relationship with Wells Fargo, but, but going to Ralph’s Wells Fargo is like pulling teeth. They don’t really want to do, you know, loans, mortgage loans. They’re the biggest mortgage lender in the United States. So why do I not go to Wells Fargo? Speaker 1 (03:50):
Best Mortgage Rates
Because I know that my mortgage broker is going to go to different banks and he’s getting me a much better rate than Wells Fargo. So if Wells Fargo’s at 3.5, I’m at 3.2% on this loan, actually they were at 3.65. Why? Because they don’t want to lend to people that own their own businesses. They consider that to be too risky, which is crazy because coach COVID made everybody go broke. The only guys that you can count, or guys like me on the street, but doing it for 30 years, let’s go through the four or five reasons. Cause I’m running out of time. It’s only a six-minute video and I’m going to do a recap. Number one, you don’t need a mortgage broker. If you have a high credit score and you’re getting just a regular loan, you’ve been with the company for 20 years. Speaker 1 (04:34):
Why I like the Right Morgage Broker
You’re a mench in Yidish, which means you’re a guy that you can count on and you don’t need to go to a mortgage broker. Number one, number two, I use a mortgage broker because I know my mortgage broker can talk to the underwriter and he can structure the loan and I can structure my tax returns and all the things I need to structure so that the underwriter will pre-approve it. So then the underwriter just has the rubber stamp it because my mortgage broker has a good relationship with the underwriter. That’s number two. That’s why I use mortgage brokers. Number three, I use the mortgage broker I have because he has very, very good communication. If he’s available, I try not to drive him crazy. Because I tend to drive people crazy. It’s in my nature. I want to know what the hell is going on, but he’s very good. And he’s, he’s only like 30-year-old guy, but he’s like the super-intelligent guy. So that’s number three. Okay, good, good communication and good availability. Number four. I always tell the mortgage broker don’t come back to me that this deal wasn’t done. I’m looking at the stock market. Speaker 2 (05:40):
Don’t call me up and say, we didn’t get it. You get that. Speaker 1 (05:45):
Don’t Call me without a done deal Mortgage
My mortgage broker never calls me back and says, Mike, we have a problem. When my mortgage broker calls me back, he says, we got a deal. These are the conditions. The conditions are all the things you’ve got to do. So I get my approval in 48 hours with conditions, which are usually nothing conditions. They’re really simple. Because I’m doing a refi right now. This is Mike Addis. I’m gonna do a recap on this one. This is a very important video for you guys out there, especially people that work for themselves. Because it’s really hard to get loans. When you work for yourself, don’t forget to comment, love comments, subscription. Cool comments, more important. And we’ll see you on the next video.
Mike Addis, Carlsbad California
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