Los Angeles Police Mortgages and Lending Home Loans be careful
Who has a special deal for the Los Angeles Police officers when it comes to home loans, mortgages, borrowing money to buy their first and fifth home? How about those who have great deals for the LAPD officers, probably have the same “great deals” for the Los Angeles Sheriff Deputies and the California Highway Patrol Officers.
Sure, let’s bring everyone into the “I have a better deal for you” realm because of what you do for a living. Protecting and serving people in the world because you are cops, officers, police and first responders.
I was a full-time LAPD Cop. I’m honorably retired now. I qualify once a year and am proud to have served for 22+ years. Most of which was as a Police Motor Cycle Officer. The nice thing is I could always work movie jobs, which I had before if the need arose, but since 1998, we have been building our real estate business in the Santa Clarita Valley and are proud to be going strong still.
A simple google search was the catalyst for this real estate article for the men and women serving with the Los Angeles Police Department and all the other Law Enforcement entities in Southern California. They don’t deserve to be misled and always deserve to have the best deals come their way.
When I ran the keyword phrase: Los Angeles Police Real Estate – in Google the first couple of entries were about the Fraud that the LAPD is investigating from the past concerning real estate in the City of Los Angeles.
Then you have an entry about our SCVnest real estate website, which is on the first page above the fold, then is followed up by other websites that are placed because they have the best interest in mind when it comes to serving the loan needs of the Law Enforcement Officers.
I have worked with most of those entities, not on their side – theirs is the lending side/mortgage side. I have worked with them being on the real estate agent side, on the side of my clients – my home buyers and sellers. And I have to tell you not all are great. I have run into many a lender who was trying to take advantage of the officer that was “vouched for” by their unions, by their newspapers and by their various trade associations and support personnel.
My cost is FREE for you as the home buyer
When you are buying a home, I’m free for you to use. My cost is paid for by the home seller, no matter who that seller is. Almost 100% of the time that home seller is working with their own agent. I stand comfortably with my client, on their side only, without conflict and am there to advise, protect and to serve their real estate needs 100%.
I’m not there to support the seller. In this case, I’m on the buyer’s side 100%. The seller has built in my commission to have me paid for bringing them a good buyer, which I do a lot!
However, you are paying the lender for a loan!
They can charge you “origination” fees. These are upfront fee’s that you will see on the lenders Good Faith Estimate if they choose to give you one.
They can earn money on your home loan by increasing the interest rate that they offer you. If everyone with your particular credit profile is paying 4.7% interest and if they can get you to pay 5.2%, the lender just made money.
If you are a cop, a police officer and have stellar credit, as most of you do, the lender can make money on the “back end” when they sell your loan to another mortgage company.
If you are with a credit union, some keep the loans ‘in-house’. If you are with a credit union, some of the credit unions are unable to write certain types of loans for the police home buyer. An example is one particular credit union I know cannot write the FHA loan which allows for a home buyer to buy a home with as little as 3.5% down payment. This is a great loan and allows for an Officer / Deputy home buyer to buy with a minimum amount out of pocket.
Some credit unions act like they do FHA financing, but they end up “referring” you to another company, probably getting the return of a “referral fee”, I’d imagine. There is where the “client care” stops. I have heard on many occasions where those companies fell short of the mark and that is when I’m usually contacted to be of assistance in referring a top real estate lender.
By the way, I cannot get a “kickback” from the lender which I refer business to. That is illegal and is monitored very closely by RESPA, Real Estate Settlement Procedures Act. Look at it as the internal affairs for the real estate industry.
Some lenders way overcharge the police officers that use them to secure loans on homes and real estate. I have seen this a lot and also some of those lenders enlist the help of real estate agents to refer those credit unions and real estate lenders business.
We fly alone and only for our clients
Being a Realtor since 1998 has been very eventful. In the beginning, without asking, I had a title officer give me flyers for a home that I had listed for sale. That was illegal and I had no choice but to say NO to him.
There have been other changes reflective of the current climate in real estate, but some are up to their same old tricks.
I recall eating the 1/2 off. I recall other types of items that were discounted while I was “on the job”. I always made up those “differences” by tipping extra, or by dropping the cost of the beverage in a tip jar, or in some way so I could still perform my duties if need be.
I’m talking about being to arrest the proprietor if I needed to. Being on solid ground when he said to me, “Hey I give cops free stuff”, I’d be able to respond with, “Hey I pay for that free stuff you give me in the way of tipping.” If you are on the job, I’m sure you have come across this thought.
In real estate, Paris and I fly alone. We don’t want any “gifts” or “thankful gestures” to get in the way of being there for our clients, ensuring they are getting the best deal possible on their real estate, their loan, their escrow fees, their title fees, their termite inspection fee, and with the other fee’s that come up in a typical real estate transaction.
I don’t want hockey tickets, I don’t want to be taken out to lunch, I don’t want free desserts, I only want my clients to be taken care of by the other vendors that are attempting to elicit my home clients business.
Credit Union lending for police officers and deputies
There have been built entire organizations where credit unions have been brought in with the hopes of getting more “loan origination” business.
Some credit unions are really great at “refinancing” properties. But, when it comes to giving loans out on a newly originated home loan, not all are created equally.
Let me get out some basic concepts as it relates to those who lend money when home buyers are wanting to buy real estate.
Wells Fargo, Citi Bank, Bank of America, and Chase. These are an example of mainline banks that are interested in loaning you money to buy real estate. They all have real estate lending arms. They all loan money to buy the residential real estate. They will all help you finance 1-4 residential units of real estate. Most can loan with various lending types, the FHA loans – Federal Housing Administration, VA loans – The Veterans Administration loan, and the Conventional Loan.
Issues: You have to fit, in most cases, within their strict lending guideline parameters. They are not as nimble as other real estate sources of loan money. Some of their representatives are not available except during the hours they work – 9-5 Monday through Friday. Some of their leaders don’t give our their cellular phones and don’t respond during their off hours.
If you are a police officer, you will know this source of lending money all too well. When we were in the police academy, if it weren’t for the Los Angeles Police Federal Credit Union, I would not have had enough money to get recruit uniforms and the other items that I needed when starting the police academy. Thank you for extending me that $500.00 of credit on a signature loan. Most of us recruit needed it badly.
They also lend money on home loans. They are not the nimblest of the bunch. In fact, in some circumstances, Credit Unions don’t give out the lenders personal cell or email where they can get back to a client during the off hours and during weekends. Some do, but my experience dictates that most do not. Some credit unions don’t have any person to person application process. Their applications are only filled out and serviced through the online channels on their website.
I’ll cover the importance of the after-hours work and contact after I get into a dissertation of how the mortgage brokers work.
There are entities that also attempt to build business for the credit unions with regard to their getting more of their share of home loans. These entities entertain real estate agents and work from that end of the real estate business. We are typically the first point of contact when it comes to a person buying real estate. When they call we cover the A to Z and ensure they know what they need to in order to choose the best lender possible. The one who will be the most attentive and give them the very best deal on a home loan.
Mortgage Brokers and Direct Lenders
It merely means that the lender loans their own money or the money of their investors to those who are wanting to acquire a loan to buy real estate.
The loan money “directly” from themselves instead of loaning Bank of America’s money, or the money from some Hedge Fund somewhere.
Mortgage Brokers can be the nimblest of the bunch when it comes to getting a loan to buy real estate for the Los Angeles Police Officer or Deputy Sheriff. They typically are able to be contacted on weekends, during holidays and during all times of night – if they aren’t sleeping.
If you have questions, they are very good, typically, with providing straight from the hip answers and will do whatever it takes to keep you their client.
Most are “direct lenders” and also have access to over 200 other sources of home mortgage money. If you don’t fit within their lending parameters and guidelines, they typically have several-back up entities that will loan you money to buy that home you have always wanted.
Most of the Mortgage Brokers are local, with real brick and mortar offices. This is important if something breaks down in the loan process, where you have to go to meet with someone face to face to get clarity.
After hours operation of the lender, you select
This is important for a lot of reasons, I’ll give you the top three.
- You see that home on Friday night at 8 pm you just have to buy, but it’s 10k more expensive than you are qualified for. You need to speak with your lender because the market is hot and you need to have that pre-approval letter accompany the offer your agent is writing on your behalf. If that letter is not available until Monday at 0900am – you will miss out on buying the home.
- You just saw a home you want Saturday afternoon on Veterans day weekend. You are qualified for $800k, but the home is overpriced at $750k so you are going to write the offer at the last sold comparable which sold 10 days ago for $730k. You need a pre-approval letter to match the amount you are writing your offer for. If the lender is not available, and if the seller sees you are qualified for $800k, but wrote the offer undercutting them by $20k, they are not going to be very helpful. You need to speak with your lender and get that “new approval letter” written.
- You ran into a relative, who wants to help you with more money down on your home purchase. You need to know those new numbers to see how much more you will qualify for. You have been looking at homes for a long while and an extra 100k will be just the thing that will get you into the home of your dreams.
That’s three simple reasons that are very common in real estate.
I’m Connor with HONOR and I will be your real estate agent when you are ready.
BTW, if you are with an agent and if they are “pushing you” to use their lender, ask them what’s in it for them. Watch their reaction to see if it’s genuine or if there may be something else you should be concerned of. If you bring your own lender to the table when you are interviewing your real estate agent, if they are pushing you to dump them and to work with their lender, that should also concern you. That is bad business and not ethically standard. I will never take food out of another person’s mouth. But if that person is gouging a client of mine, I won’t stay silent either. BE safe – talk soon!