Ten questions for mortgage loan processor, Anne Hiltunen

Getting a mortgage today is so much harder than two years ago. A potential homeowner or borrower has to jump through so many more hoops, sign and prepare many more documents and pay higher fees just to apply for a mortgage. The key is to be prepared and be aware. Today, I am interviewing Anne Hiltunen, a mortgage loan processor with Circle Mortgage Group in New York (sound familiar?). She will provide us with helpful hints on how every potential borrower can be best prepared and have the least amount of stress when applying for a mortgage.

Q. What does someone need to do to before they even apply for a mortgage?

A. It’s very important to have all your documents in order. So even before you apply for mortgage it’s wise to create a separate folder where you keep all your most current bank statements and income documents, including the last two years tax returns. I would also check my credit score to make sure that all the information reported in my credit report is correct to avoid any surprises and delays later on- but through a legitimate credit bureau not a free credit report company.

Q. Once a client decides to work with your company, what is the first step?

A. I would send them a Short Form Loan Application with a document checklist by e-mail. The borrower then would fill out the form and send it back with all the items listed on the document checklist. Most borrowers send these documents by e-mail which makes the process a lot faster and smoother. We would then prepare a complete loan application and disclosures to borrower to sign via e-mail again. Technology has made the process easier and has expedited a lot of what the client needs to do.

Q. How have the overall fees increased from two years ago? Is there any way to reduce them or negotiate with the lender?

Most lenders have increased their underwriting fee that is payable at the closing. The appraisal fees have also been increased due to the new appraisal ordering process. Typically these fees cannot be negotiated and it is very unfortunate when the level of service from these third parties does not reflect the increased costs. I would say total fees have increase y around 500-$1,000. The system is broken, and the clients are paying for it.

Q. There are several more disclosures that need to be received and signed by the borrower. What are the most important forms and should the clients really read them?

A. The good faith estimate and the truth in lending that borrowers receive from the lender should also be reviewed very carefully. These are complicated forms that are required to be sent by all lenders. However most times the fees in the good faith estimate received from the lender have some mistakes but since this is not the final good faith estimate the borrowers should not go by this estimate. The loan officer and the buyer’s attorney would provide more accurate estimate. A borrower should never sign something unless they completely understand and agree with the fees they are paying. There are many other forms, but I think these are the most important to the borrower because they cover the fees.

Q. Now that the loan process is harder, how do you personally try to make is easier for everyone?

A. We use mostly e-mail when communicating with borrowers, realtor, attorneys and bank personnel. We also e-mail or upload borrower’s files directly to the lender’s website to streamline the process and use less paper. I also personally keep a lot of lists on individual files that help me keep track of the process and push the files to the closing as quickly as possible. I set reminders and notes on ongoing issues so that I wouldn’t forget any details during my busy day. I also think humor is very important along the process to keep things light and easy for everyone. If we did not laugh, we would cry!

Q. Loans are taking much longer than before to close. How much time should someone allow to close a purchase and a refi?

A. On purchases you should allow at least a month from the time you gave all the paperwork to your loan officer and on the refinances about 45 days. Of course, meaning that there are no issues with title, credit, appraisals or anything else along the process. You should also keep in mind that this means that you should return any additional documentation that the loan processor asks immediately. Every day counts and it is important to keep up with the process.

Q. If someone loses a rate lock because the bank messed up and could not close in time, what can they do? Will anybody be on their side to save the rate or not have to pay any costs to extend it?

A. This is the job for loan officer to make sure that their clients get what they are promised. It is important for them to stay on top of all their files and renegotiate any rates or costs associated with lenders mistakes. In some cases I have seen the loan officer eat the cost of certain mistakes the lenders have made which is not right but that means excellent customer service. Ultimately if the lender is not taking any responsibility of their actions the loan officer has to do it. Unfortunately, this is not always the case. The client should be very aware of lock in dates, expirations and what happens if they lose the lock. Hold people to their responsibilities- there is always a way!

Q. What is your best and worst customer?

A. The best customer is the one that returns all documents in a timely manner and cooperates if there any additional documents needed. I like the easy going type that understands how the process is more difficult now and does not challenge you every time you ask for a document. Those people also appreciate the good service they get and a are pleasure to work with.

The worst customer would be just the opposite; never happy, always right and overall difficult to work with… But thankfully we do not get many of those. In the beginning you have to create a certain kind of bond or a friendship to make it work with your clients because for the next couple of months you will be working with them very closely and the better the relationship the happier everyone will be at the end. It’s all about making the clients happy!

Q. What is the best method to calm a crazy client down?

To stay calm yourself and talk to them about any of their concerns in detail. You have to be able to listen and create a solution that will help you move through the process as smoothly as possible. Some clients need a lot of handholding and as long as you give them what they need it should make everything easier. Every client is different so don’t expect to communicate with all of them the same way. Some clients might need you to call them every day and some of them just need one e-mail per week. It is all about communication and making your clients feel safe- with any business.

Q. How do you relax after an insane workday?

A. I take out all my frustrations at the gym! That definitely calms my nerves and after even 5 minutes I have already forgotten what happened at work!

Thanks, Anne! That was very insightful for me. I hope that people on both sides of the mortgage transaction learn something from this and understand what is important. Anne Hiltunen has worked at Circle Mortgage Group since September, 2001. She is one of the best processors out there and can work a loan through the system like nobody’s business. If you have any questions, she can be reached at anne (dot) circlemortgagegroup.com.

Remember- everybody is responsible for their own participation in their own mortgage. Do your homework!

Dale Robyn Siegel