Why People Quit Their Mortgage Application Too Soon

Episode 88: Pocket Change Podcast

What is the role of a Lock Desk Analyst?

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Full Transcript

Shea:

Hey, this is Shea!

Carrie:

And this is Carrie.

Shea:

Welcome to the Pocket Change Podcast.

Carrie:

Where you'll learn better ways to spend, save and invest and take control of your financial journey.

Shea:

So, Carrie, today we're going to take a little look behind the scenes. Sometimes people don't really see, you know, the whole process of maybe applying for a loan online and what that looks like and how we really try our best to serve our members and get them the best deal on mortgages, but also behind the scenes in serving our community.

Carrie:

That’s right, which we get to do here at Leaders, and we're happy to have them on the podcast today. We're excited to welcome our guest, Keith Busby, Mortgage Champion here at Leaders. Welcome to Pocket Change, Keith!

Keith Busby:

Thanks for having me.

Carrie:

Yeah. So, tell us a little bit about yourself and how you got to Leaders.

Keith Busby:

Sure. My name is Keith Busby. Came to Leaders, been here going on eight years, so quite a while. It's a bit of a, I guess a longer story around about how I got here. I didn't start out in finance. I came from, I went to college at Union for Marketing and Management. But from that, I went into the restaurant industry. My parents and I opened a restaurant, right out of college. I did that for about 10 or 11 years. I was doing that for a while. Somewhere in there, someone wanted to lease the restaurant, so we leased it to them. I actually went and got another restaurant job. I went to work for the corporate Subway office, like Subway restaurants. I was in charge of a group of five across Tennessee and Mississippi, all inside of Walmart stores.

Carrie:

Really? Okay.

Keith Busby:

And then, did that for a while, and then some of the lessee of the restaurant left. So, we had to go back and run it. So, I had those two things going on. And then that that kind of remained the story for the next 12, 13 years, probably. So, Chris Gray, who is the chief officer over at mortgage, the Chief Mortgage Officer, who runs that department, we were, we got to be friends in college. We had some business classes together, teamed up on some projects and then kind of lost touch after college. I didn't see him for a while. And then when I was running the Subways, I’m at a pizza place traveling one day in Memphis, and I ran into him. I hadn’t seen him in years. So, we reconnected and we stayed in touch. And then through the Subways, eventually they sold to where I didn't really have a territory anymore. And then, had stayed in touch with Chris. I actually went back to Union to pursue pharmacy, and I crammed all the pre-recs in in two years. So, it's the chemistry and the calculus and organic chemistry, all that. And after two years it was a pharmacy school and I thought, “I don't want to open another book.” And, so from being in touch with Chris, like, “I just need a break.” And he's like, “Well, I'm running this mortgage division of a bank. You want to try that?” Let's go try that. So, I went to work for him, doing mortgages nationwide for another place, and then roundabout ended up leaving there, you know. No, no hard feelings. There's nothing wrong. I just decided to take another route for a little bit. Went to another financial route and then he ended up at Leaders and then just was asking me over and over, like yearly, like, “Hey, come talk to Leaders. This is such a great place.” I was like, “I fully believe you, but I'm on a good track, like in management where, where I am.” And then, you know, you never know how things are going to work out. So, they sent me to another state. Just wasn't like, super happy with where I was. So, I took him up on that. Like, “If you can still give me a talk with Leaders, I would be glad to come talk to him.” I got the offer and came running back to Tennessee. To Jackson.

Carrie:

That's a journey.

Shea:

Are you a good cook?

Keith Busby:

I try to be. I try to be. I don't really want to do it for a paycheck anymore, but I love doing it at home, and my wife enjoys it. She says I'm good.

Shea:

Yeah, we should have had a little tasting here on the podcast.

Keith Busby:

Yeah, I'll bring something next time.

Shea:

That's all right. So, tell us a little bit about what your role is at Leaders. It's in our mortgage division, but not necessarily originating, but also just helping with that whole process. What does that look like?

Keith Busby:

Yeah. Two things. The main job is a mortgage lock desk analyst would be a way to put it. In just in a basic like one sentence, the lock desk analyst, we make sure that the member gets the mortgage rate they were promised, while also protecting the credit union from financial risk due to changing markets and changing interest rates. Yeah, that's just the most simple way. And there's a whole lot more to it. You know, just to break it out a little bit. There's a lot of pieces as far as, you know, lots of things can change the pricing on a loan. Like, is it a single family home? Is it like a manufactured home? Is it for an investment? Is it for your primary residence? Do you want an escrow account? Do you not want escrows? All those things can change pricing. So, we, the lock desk manages all those. And then I guess another simple way to put it. You know, from someone that doesn't have anything to do with mortgages, say you wanted to go to Europe. You want to take a European vacation, and there's just a website that's European vacations and you're looking and today you can go for seven days for $2,000. And you know that if you wait till next week, that may be $2,500. It could be $1900. It could go down a little bit. You don't know, but you're comfortable with #2000. You want to lock that in. So you click on it. You purchase that today. You're locked in for say 30 days. That's your price. Yeah. That is basically mortgage interest rate locks. You know the members and I'm good with this rate. We lock it in with the secondary market investor. And then you know you have a timeline there. And that's variable. You can lock it. Depending on your closing date you can like it 30 days, 45, 60. And all those can change pricing a little bit. So we manage all that.

Carrie:

That's a very important role.

Keith Busby:

It is for sure. Yeah. People don't want to run out of industry.

Shea:

I was hoping you'd compare it to building a sandwich. You know, with all the different moving parts.

Keith Busby:

I should have. Next time. I can't believe that didn't cross my mind.

Carrie:

So, what are some reasons that people tend to leave an application unfinished? And how are you able to help?

Keith Busby:

Yes, that's the second piece I do is, you know, most people, the majority have a loan officer. They're referred to by a real estate agent or somebody they know and when they've worked with in the past. But some don't. Some just know Leaders, or they just find us online, and they apply. That would be considered, you know, an unassigned application. No specific loan officer. So, I get those. Or I get the incomplete applications. And when that starts one and they don't finish it. So, I manage those. And main job is, is to reach out and see if I can help, you know, why didn't they finish it? Is there something we can help with? The main reason they don't finish is usually they're worried if they don't know all the answers that they they're going to miss something up and it's just, they’re going to have to either redo it or they won't get approved. And that one, it couldn't be easier to solve. It's not a big deal at all if you don't know, you know, or a loan amount. They say, “I don't know. I'm looking at one that's 150, but what if I need more?” And they think they're going to be stuck at that number and they're not. That's totally adjustable. If you don't know your credit score, if you don't know your exact loan amount, that's extremely common. You don't have to know those things to get started. You know, for a pre-approval, the first inquiry or the first application when you send it, it's not even a hard credit pull. It's just a soft pull. So, you know, if that one looks way off or something that we need to talk about or they may need to work on, it's not even anything that affects their credit.

Carrie:

Okay, that’s good.

Keith Busby:

So we get them through that and then try to try to get that application finished so that we can get them to pre-approval. And then get them to a loan officer.

Shea:

Okay. And so, what other common misconceptions do people have about the mortgage process? Because it is maybe something we don't do that often. And so, you talked about the credit. You know, maybe the inquiry at first not a hard inquiry, but what are some other common things?

Keith Busby:

Sure. Kind of along that same line, we hear a lot or a lot of people that I have talked to face to face or by phone is, you know, “I don't know the whole process. So I'm not sure I can do this.”

Shea:

Just not going to do it.

Keith Busby:

They're just, yeah, they're just scared to keep going because they realize like, “I don't know everything and I need to do some research.” Which can be dangerous because there's a lot of false information on the internet. So, I would definitely say, you know, just get with us and we'll tell you the truth for sure. We'll get you through it. We'll answer all the questions.

Carrie:

Okay. So, what goes into finding the best rate for our members?

Keith Busby:

Sure. The best rate we have, the majority of loans are going to be sold to another investor, which doesn't necessarily mean that you can still pay us. We service a lot of the loans, most all the loans. But as Leaders, you know, we're known for member service. That's our whole focus. We want to get the best rate. So, by selling that loan, that enables us to get the best rates because investors are giving us the money back and we can lend it again, instead of just having all that out there at once. So, we have, you know, it's hand-selected investors. We're not just selling to anyone that is trying to buy loans. There's a, you know, a small group, say, 5 to 7 investors that the loan would go to and they're competing. They all have different ones they're looking for. Different loan amounts, different credit scores, and they're in competition too. So, they're trying to offer the best rate they can to win that sale. And that, by doing that we get the best rate for everybody.

Carrie:

Okay. That’s great.

Shea:

What advice or suggestions would you offer to our members when they're applying for a mortgage online?

Keith Busby:

Don't be scared. Just, you know, if it's something you're interested in, just fill out that application. Let us give you a call and we'll answer any questions that you have. We'll get you through it. There's no problem whatsoever.

Shea:

Yeah. So, you're saying, you know, things can be adjusted. It's not locked in yet, but you can, you know, it just you no home purchase price and things like that when you're going through an application.

Keith Busby:

I can't help you change your birthday if you want to cut off a few years, but loan amount, that's not a problem. We can change that.

Shea:

Yeah. So, just understanding that it is flexible. You know, there's things we need on an application, things that are, you know, documents that are going to be required to turn in. But all those can be worked through. And you either you contact loan officer or talking to you online or whatever.

Keith Busby:

Absolutely.

Carrie:

It is a very overwhelming process. But that's why we're here. We're, we want to.

Keith Busby:

Yeah, I think that's probably that may be the sentence that I've said the most to potential borrowers is like, “I understand it looks like you have a mountain that you have to climb with a blindfold on. But I promise once we get into it and you know, we're experienced, it won't. You know, your next one, you'll be a seasoned pro by the time we get you through this. It's not a problem.”

Shea:

And I think also with, you know, with Leaders as a lender, you know, we offer ways that people can upload documents online to an app or a portal. So, it can be done in a way that's convenient and easy for the member. Whether they want to talk on the phone, they want to do it in person or online. So, that can be helpful too.

Keith Busby:

We do everything we can. Like it's a constant search for technology. You know, we're personally for sure I'm a believer in you don't just jump on every new technology. You give it a, you know, you want to vet it out and it's a constant search for that. We're always looking for something to make the process easier, better, more efficient, faster. Whether it be ways to upload docs. You know, when I first got started in mortgage, it was nothing to get a FedEx package documents that was two inches thick in your hand, sorting through those and copying what you need and scanning things and, you know, mailing it back because you have a W-2 or somebody’s tax returns. So, it was a it was could be, you know, a nervous process. You have to keep up with all that. And now we're to, I never thought I'd see this day, but now you can take a picture with your phone and send those documents.

Carrie:

That's amazing.

Keith Busby:

For a long time, that was a no-no, because who knows what's going to be on that picture? And the backgrounds got to be just right and maybe blurry. But we finally got to a place where that's okay in most cases.

Carrie:

Yeah. Well, speaking of technology and, you know, keeping up with the trends or making the process easier, we do have the online application now. So, tell us a little bit about that workflow once the application has been submitted.

Keith Busby:

Sure. So, if someone finishes an application, if they have a just assume they have a loan officer that it's going to. All the loan officers have their own QR code that they can give to someone, which somebody uses that the app goes straight to them, to their pipeline and their mortgage software. Usually, we strive for within 24 hours, so 24 to 48 hours, we are trying to get that person on the phone that we've done the preliminary work on the application. We've looked it over to see what they say they want to do, and then we're getting in touch to make sure those pieces are in the right place. You know, like, “Here's what we're seeing. Is this what you're looking to do?” To iron anything out that may need to be changed. And then we go from there and try to get them that pre-approval. You know, a lot of people start early. They don't know the process and they start early. That's good. And then, you know, sometimes people get a contract for a house they want to buy and then start the application process. And then, so, it runs the whole gambit there. But either way we'll get them through it.

Carrie:

That's great.

Shea:

Keith, you've been real involved in different organizations within the community. And so, why do you think it's important to give back to the community?

Keith Busby:

Oh, I think it's important to know what's going on in the community. Definitely important to give back too. And by giving back, you can solve both of those. You can be, you know, being involved and helping lets you know what's going on.

Shea:

Being aware.

Keith Busby:

Right. You're aware of what's going on. So, you're you could be aware of the needs. And you know, we all have different skill sets and different things that we're passionate about during things that we like or that can do. And so, when you're involved, you see where you can help, where you can get involved to use your skills to this.

Carrie:

So, what organizations and causes do you most care about?

Keith Busby:

The ones we are the most involved in? I'm a big advocate for the STAR Center here in town, and I'll talk a little bit more about that in a second. But STAR Center. We love animals at my house. Dogs. We do a lot with the rescue and foster animals. And then we serve at our church. We go to Fellowship Church, my wife, Candace, and I. We serve on the usher team there.

Carrie:

That's great. Yeah, those are all wonderful causes.

Keith Busby:

Thank you. We enjoy all of them. We have a foster pup at home right now, that we've had a couple of months. And the STAR Center, they have the annual Black Tie & Boxing, which is a really big event. I participated in that twice, which was a lot of fun.

Shea:

And you participated twice because?

Keith Busby:

Yeah, well, I didn't get the desired result the first time, so I wanted to do it again. And part of that, they call it Fight Club and they get, you know, a certain amount, you know, 10 or 12 people from the community to raise money while they're being trained how to box. And then, you know, to have an opportunity to do that, kind of as part of the backstory, my favorite movie growing up was Rocky 4. That came out when I was a small, and I watched it countless times. So, when I got a chance, you know, the STAR Center does Black Tie & Boxing. I'm like, “So, I can raise money for this organization that I love and live out this childhood dream of putting on some American flag shorts and get in a ring?” You know, and that's no brainer. Yes, sign me up. So that was a big motivation for that to help the STAR Center. Learn how to box. I was, I was interested in it, but that's not something that we had in Chester County growing up. So, it was the first chance, you know, someone's going to teach me how to do it. So, it was just a win all the way around.

Shea:

And tell us how round two went?

Keith Busby:

Round two was the desired result. We had the win, round two. And then I guess most importantly, I got the win for the most fundraising.

Shea:

Yeah.

Keith Busby:

That was, that was you want to come out with the medal for the match win. But to know that you raised the most money and it's, you know, it's all the competition. So, the more money that anyone is raising is, all of the participants are seeing the totals go up. You know, everybody's seeing the total. And if one person's really bringing it in, that just helps others too. They want to do it too.

Shea:

And you had like a personal involvement with STAR Center too, right? Is that right?

Keith Busby:

I did yes, a couple. Now my uncle, Bob Campbell, he was involved in the STAR Center, but before he retired, he was involved in the STAR Center. So I knew, you know, he was one of my heroes for life. He's no longer with us. But I knew that if it was something he was involved in, it was a worthy cause. So then when I got that chance for the boxing, I jumped on it for him.

Shea:

That's great.

Keith Busby:

Great. And then they've since helped. This would be good to know. A lot of people don't know the STAR Center, what they do. They help anyone with any disability live their fullest, most normal life. And a lot of times that usually gets thought of as, you know, like maybe just someone that's in a wheelchair, some, like disability. But it's not necessarily just that. Like, I have another uncle that he's starting to lose his sight. And the STAR Center helped him recently. He's in his 80s. So, it's not just children, it's any age. So, the STAR Center helped him with new Meta Glasses so he can you know, he loves books. He always loved to read. So, losing his sight you know it's kind of put a damper on that. But through the Meta Glasses they got him signed up with Tennessee Free Library. So, he can get pretty much any book that he wants for free. And the glasses read it to him. They tell him everything he's looking at. So, they help, you know, of all ages and anything.

Shea:

Yeah.

Carrie:

That's wonderful. Well, clearly you work here at Leaders and we're pretty much known for helping our community. So why was it important for you to work for a company that is involved in the community?

Keith Busby:

Absolutely. I love working for Leaders for that reason, because everywhere you look, you see the Leaders name on, you know, any event, almost anything that is going on that needs money or help or time or anything in this town, you can almost guarantee Leaders’ name is going to be on the sponsor list. It's it all goes back just to the community involvement piece for me is like, if you're, you know, if you're involved, you're helping and if you're helping, I think that's what you should do - helping your community. And Leaders being so big on helping is a big piece for me that I love to, to work here for that reason, because we're not, you know, we're not stingy. We give back. And that's what I like.

Carrie:

We are boots on the ground doing it too.

Keith Busby:

Yes, absolutely.

Shea:

Or gloves on your fists!

Keith Busby:

That right, gloves on the hands.

Shea:

All right, Keith, so, what's some of the best financial advice you've ever been given?

Keith Busby:

Oh, that one. Couple of couple of things. Big one is want versus need. Which, and I, you know, anything I tell you is because I've really experienced doing it in the wrong way, too. I've learned most things the hard way. Especially when you're younger, you want a lot of things. You want the new golf club. I want this nice car. Those kind of things. I would say learn. Learn to give things some time and thought and just process. Be aware, “Do I really want this? Do I really need this or do I just want this?” And then, you know, set up a savings plan if you if you don't know and you're just thinking about something, just go ahead and start saving for it. And what I've learned a lot of times is, as you spend the time and you're saving that money, your thoughts start to change and you're like, “Well, I don't really I don't really need this. I like seeing that money grow. And if that money keeps growing, I could,” you know, it's kind of like you could drive, you know, I could buy Hot Wheels today, or if I can wait ten years, I could just get in the Corvette. So, you're better just to wait. Just seeing the big picture. Think about it long term. Just start putting the money away and, you know, just give everything a second thought. Just give it some process time.

Shea:

Buying a house or a set of golf clubs, you know, whatever it is, set some savings goals.

Carrie:

We are the Pocket Change Podcast. So, if you were to find some extra change in your pocket, what would you spend it on?

Keith Busby:

If I had to spend it on myself, not you know, I'd probably prefer to try to find my wife or a dog something. But if I had to spend it on me, the easy answer is something with a golf club. It's a side project of mine. I love working on golf clubs. I used to build kind of as a side business, I would build sets, regroup, redshift, anything people needed. And I still work on it. I don't really promote it as a business anymore, but I still do it at home, so I'm always working on my own stuff. So, something golf. Anything golf related.

Carrie:

That’s great.

Shea:

There you go.

Carrie:

All right. Well, thanks so much for joining us today, Keith, and telling us about what you do here at Leaders and your passion on the side.

Keith Busby:

Thank you for having me. It's been great.