Earlier this week, I had the pleasure of sitting down with a good friend and colleague of mine, Mike Simpson from New Penn Financial. I baited him with the promise of lunch, but I really wanted to pick his brain about mortgages. Don’t judge me. It was all in the name of educating you guys! Luckily he was a good sport and I got a lot of information to share with you today.
Jen: Tell us a little bit about yourself.
Mike: I am a native Delawarean born and raised in Kent County Delaware. I graduated with a Bachelor’s degree in Accounting and from Wesley College and have 15 years of experience in the financial services industry. I currently reside in Smyrna, DE with my wife and 3 beautiful children. My hobbies include going to sporting events, traveling and spending time with the kids.
Jen: Tell us about New Penn Financial.
Mike: New Penn Financial was established in 2008, amidst a challenging era for the real estate and mortgage industries, New Penn Financial® quickly became a major player in the new lending environment. The sea of change in the industry worked in our favor, allowing us to rapidly assemble a management team with decades of collective experience. New Penn has forged a national industry presence built on competitive interest rates, exceptional customer service, and healthy lending practices.
Jen: Many of our clients want to start looking at houses right away. It seems like the first logical step. Why is it important to get a pre-approval first?
Mike: It is important to get a pre approval prior to shopping for a home so you know exactly what price you qualify for as well as what type of mortgage. In order to put an offer in on the home of your dreams, you need a pre approval letter to accompany the offer.
Jen: What’s involved in getting a pre-approval? What type of information will you need?
Mike: Obtaining a pre approval is really simple. It consists of me interviewing the client and obtaining some basic information about their financial situation. The interview consists of information required to review the credit report. The information required are standard financial documents, including paystubs, tax returns and bank statements.
Jen: Sometimes, client credit isn’t where it needs to be. New Penn offers free credit enhancement, can you tell us about that?
Mike: This is one of my favorite things about the company I work for. If a customer has a credit score of 580 or above we do offer a credit enhancement service that is free of charge to the customer. This service offers solutions where we can rapidly increase the customers credit score vs. naturally waiting for the required changes to report.
Jen: When is credit enhancement not enough? Who should consider a credit repair service?
Mike: Our internal credit enhancement department is for those consumers that have a minimum credit score of 580. Although, the service is for customers with a 580 score or higher, I still would encourage everyone to speak with a mortgage professional first.
Jen: Once a client has a pre-approval, what are the next steps in the mortgage process?
Mike: Once a pre approval has been issued the next step is to do the fun part….find a house. Once a contract has been executed the real mortgage process starts. We then need to do the background work that really makes this transaction come to fruition. We work with several third parties, including an appraiser, title companies, inspectors and attorneys to protect the buyer. We collectively protect the buyer and ensure they are purchasing the quality of home that they are under contract to buy.
Jen: What can clients do to make the process go as smoothly as possible?
Mike: I always say that the buyer is the most important person in the process. It is extremely important that all information that is requested by the mortgage company is provided in an extremely urgent manner. Unfortunately, over recent years banks have “tightened” up and are required by law to document all we can to make sure we are making the most informed financial decisions.
Jen: What types of loans do you generate?
Mike: We are a full service mortgage company and have wide range of products. I pride myself on exceptional customer service and working for a company that is extremely competitive in the marketplace. Some of our products include:
– Fixed rate
– Adjustable rate
– Home Improvement
– Harp Refinances
Jen: What are the advantages of working with New Penn Financial, and you in particular?
Mike: The primary advantage of working with me is I know the Delaware market and real estate laws. I also pride myself on being available when my customers need me, even if it is on the weekend or in the evenings.
I know the area and can serve as an additional resource / expert on the area. We offer extremely competitive interest rates and some closing cost assistance options.
I want to give a huge thanks to Mike and New Penn Financial for taking the time to sit down with us. Do you have any mortgage questions? Let us know in the comments below!