In normal conditions it takes close to 45 days, to close loans in 45 days, Joe Garza, an Arizona-based mortgage professional who is the owner of Olympus Home Loans can get his clients approved for a mortgage in as little as a days’ time.
He has earned several recognitions from United Wholesale Mortgage (UWM), including as a top 1% producer.
Garza has successfully grown from a one-man shop to seven employees over the past four years, and together the team has closed over $35 million in 2020.
With the help of digitization, he has managed these speedy turn times and growth.
Garza said, in the mortgage industry, technology is the biggest missed opportunity for many companies.
The importance of real-time, remote collaboration was reiterated during the difficult times of the pandemic where the team and clients could not be in one due to social distancing.
He said for a mortgage brokerage to scale efficiently it was important to digitalize.
During the COVID-19 pandemic phase, his team had to quickly adapt to new ways of working and doing business, which took a lot of energy and focus.
Graza looked at all options to increase the efficiency of his company and for his customers, and came up with digital home closings.
But even before the pandemic led to lockdowns, the company was already using JetClosing, a virtual real estate closing platform to complete transactions, which was an innovation that set them apart from other old-fashioned brokerages.
I started working with Much before the pandemic hit JetClosing’s, the team could accommodate Olympus’s 17-day average turn times with some of their wholesale lenders.
A very important role in modernizing Olympus’s internal processes was taken over by JetClosing enabling Graza and his team to respond quickly by helping a lot of people in less time by closing the loans quickly.
In 2020 when the rates were historically low, and the demand for refinance and resale increased, much of the administration work associated with the lending process got automated by JetClosing, enabling them to focus on more high-value tasks for their customers.
Come the homebuying season realtors would be important partners so Olympus is invested in building strong relationships with realtors and real estate companies.
Garza is figuring out strategies on how to qualify customers for loans beyond the standard risk assessment.
Along with being diligent in qualifying people there would be numerous variables to consider.
For most of the day, Garza is working towards every aspect to make sure they are consistently offering competitive and stable turn times and building relationships with his employees and customers.
Graza motivates other players in this field to try out of box approach to succeed. Self-belief, a strong support system, and facing challenges with hard work are the keys according to Graza.
Reference Source: MPA
What is a First Mortgage?A primary or initial loan obtained for a property is termed a first mortgage.
A primary lien on the property is placed by the lender who funded the mortgage to buy a home.If in case of default in payment this lien gives the lender the first right or claim on the home.How does a First Mortgage Work?Depending on the type of mortgage, you’ll need to pay upfront, a percentage of its cost as a down payment.Then, regular monthly payments comprising of a portion of the principal and interest, homeowners insurance, and property taxes all need to be paid till the life of the loan.The first mortgage takes priority over any junior lien or second mortgage, attached to the property.So in case of default in payment, your first mortgage lender would have the first claim to the proceeds from the foreclosure sale.Then second mortgage lender can claim from the remaining proceeds.
If you have multiple liens then this chain of priority continues.However the pending property taxes will be repaid first before other claims, and if the borrower is filing for bankruptcy, then the court decides on the precedence of claims.How is a First Mortgage Different from a Second Mortgage?Both first and second mortgages have the property itself as collateral.The main difference being the first mortgage is used to buy the property, whereas a second mortgage can be used for many reasons like renovation, college fees, consolidating debts or healthcare costs, a vacation, or various other expenses.Sometimes a second mortgage is used to cover the down payment and closing costs.Second mortgages usually have higher interest rates compared to first mortgages.Home equity loans, and (HELOCs) are the two most common types of second mortgages.Reference Source: Bankratehttps://www.compareclosing.com/mortgagenews/all-about-first-mortgage/
2nd mortgage is a type of loan taken on top of a 1st mortgage with the condition of having paid a chunk of the 1st or original home mortgage.
This is why a 2nd mortgage is also referred to as a piggyback mortgage.
If you are thinking of starting up a business or you already have a business of your own and are just looking for a convenient way to improve or expand, you can apply for fast 2nd mortgages anytime.
Read more to know Can I Get A 2nd Mortgage For My Business.
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