Detailed and informative, Your Successful Career as a Mortgage Broker is an invaluable tool for creating a brilliant career in an ever-changing, ever-growing field.
Yo ur Successful Career as a
Mortgage Broker
This page intentionally left blank
Yo ur Successful Career as a
Mortgage Broker
David Reed
American Management Association New York • Atlanta • Brussels • Chicago • Mexico City • San Francisco Shanghai • Tokyo • Toronto • Washington, D.C.
Special discounts on bulk quantities of AMACOM books are available to corporations, professional associations, and other organizations. For details, contact Special Sales Department, AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Tel: 212-903-8316. Fax: 212-903-8083. E-mail:
[email protected] Website: www.amacombooks.org/go/specialsales To view all AMACOM titles go to: www.amacombooks.org This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.
Library of Congress Cataloging-in-Publication Data Reed, David, 1957 Oct. 1– Your successful career as a mortgage broker / David Reed. p. cm. ISBN-13: 978-0-8144-7370-2 ISBN-10: 0-8144-7370-9 1. Mortgage brokers—United States—Vocational guidance. I. Title. HG2040.5.U5R433 2007 332.7⬘202373—dc22 2006100279 2007 David Reed. All rights reserved. Printed in the United States of America. This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Printing number 10 9 8 7 6 5 4 3 2 1
Contents Preface
ix
Part I Getting Started
1
Chapter 1 The Mortgage Loan Officer and His Team
3
Chapter 2 How Do I Get Started?
16
Chapter 3 Mortgage Banker vs. Mortgage Broker
20
Chapter 4 The Loan Application and Process
36
Chapter 5 Types of Mortgage Loans
69
Part II The Basics of the Job
93
Chapter 6 Loan Prequalification and Approval
95
Chapter 7 Loan Documentation
102 v
vi
CONTENTS
Chapter 8 Interpreting Credit Reports and Credit Scores
110
Chapter 9 Interest Rates: How They’re Set, How To Quote Them
123
Chapter 10 How Brokers Make Money
137
Part III Making Yourself Successful
149
Chapter 11 Marketing Yourself
151
Chapter 12