Welcome back to Dave Porter of loanDepot. Whether you are in the process of buying a new home, refinancing, or just shopping the market, you have a choice to choose a lender that works best for you. Dave Porter is a veteran mortgage lender who has been in the business now for four decades. What makes Dave good at what he does you might ask? Dave is a puzzle master who thinks out of the box and continually comes up with solutions that go above and beyond to exceed the needs of his clientele.
Dave, hello and welcome back. First of all, I would like to thank you for being an active content contributor to LocalsGuide. Every month you provide our readers with insightful articles, tips, and insights into the world of mortgages. Thank you.
You are most welcome. I do this because I want to educate and empower my customers. The LocalsGuide is an excellent way to share my knowledge and help folks navigate the mortgage process. I welcome any reader to suggest topics they would like covered.
Dave, secondly, I want to thank you for all the help you have offered me even though I have never worked directly with you as a client. Whenever I have had questions on refinancing and lending, be it on the East Coast where I have family or outside the country, you have been a great advisor to me. Thank you.
My pleasure. I was happy to address your questions and connect you with someone who could help. I am fortunate to work for a company that has knowledgeable, caring professionals in every state.
Dave, I´m not sure everyone that is reading this article knows how extensive your experience is. Please tell us a little bit about your background and degrees of certification and training that set you apart.
This is my 40th year in lending. Along the way I have held a variety of roles. I have been a loan officer, training manager, branch manager, regional manager, and several other roles. I am currently a Sales Manager for loanDepot here in southern Oregon. I have a collection of designations from the National Association of Realtors and the National Association of Home Builders.
I am well-educated and have earned designations in green and energy-efficient building, real estate marketing, and aging in place.
Dave, I am continually amazed at your creativity. Please say more.
My creativity is in marketing and problem solving on loan files. I have fun with marketing so it’s not stuffy. I advertised in a wine magazine with a wine and mortgage pairing: “Conventional loans and Chardonnay,” for example. I also advertised at the Medford airport: “It’s PLANE and simple. Dave Porter delivers FIRST CLASS customer care. Our goal is ON TIME closing of your loan.”
My real creative skill is in how I look at loan files. Recently I had a borrower who wanted a lower payment which would require a larger down payment. I advised them to consider another option: going with a lower down payment and using the rest of the cash to buy down the rate. Consider this: in that particular situation, for every $10,000 in down payment the mortgage payment was only reduced by $48 each month. What I suggested was to use that money to pay discount points to lower the rate. The result in that specific situation was to reduce the monthly mortgage payment by $126. So, in terms of bang for your buck, paying down the rate versus adding more money down makes a big difference. Almost 3 to 1 in terms of impact. The impact is bigger than just the monthly payment. When I did an analysis comparing a $300K loan at the lower rate or the $290K loan at the going rates, the $300K loan at the lower rate resulted in over $22,000 in less interest paid over the life of the loan.
In another situation, I was dealing with a retired borrower with limited income but a large IRA. We set up automatic deductions from the IRA and those withdrawals could be counted for income.
I did a loan for a veteran on a home that was overall in good shape, but the water heater was on borrowed time. I was able to use a VA Energy Efficient Program and finance the water heater without the appraisal accounting for it. We loaned more money than the appraised value to buy a new water heater.
It is terrifying to imagine that the questions that we do not know to ask can have long-lasting impacts on our life. Please say more.
Not all lenders are the same. Some lenders have their own “overlays,” in other words, they add their own additional underwriting standards to loan programs. I had a borrower come in one day who had waited the seven years after his Chapter 7 bankruptcy and now wanted to buy a home. He had gotten the advice to wait seven years from a lender that didn’t offer Federal Housing Administration (FHA) loans, which only require a two-year waiting period from bankruptcy. In another case a couple proclaimed that it had taken years but they now had the required 20% down to buy a home. What a crime that another lender had given them poor advice.
They could have purchased far earlier with an FHA loan for only 3.5% down or conventionally with only 5% down.
Dave, in your day-to-day work life you see people making deeply impactful life choices. What is your view of the consequences of these choices and how do you work to advise and support your clients for the best possible outcomes?
I had a psych professor in college that said “No action is an action.” I’ve seen people able to buy a home with a monthly payment near what they pay in rent and yet never take the chance on buying a house.
Not all years have been good for real estate appreciation but let’s use a pretty average 10% for conversation’s sake. A $400,000 home purchased today would equate to $40,000 in appreciation just one year later. The renter didn’t even get a holiday card from the landlord. But the landlord made her/his appreciation.
Dave, taking the same questions above but making it more personal, what have you done in your own life to take ultimate responsibility and ownership of your financial freedom?
Home ownership can help provide stability for a family. It’s hard enough for kids these days without adding the additional stress of moving and changing schools every few years. My wife and I and our children have moved, but on our terms and not a landlord’s. I appreciate the appreciation we are gaining, and we have put our home now in a trust. Our family compound is a legacy for our children and their children.
Dave, please give us an overview of your services with loanDepot.
I can assist those looking to finance condominiums, manufactured homes on land, single family homes, duplexes, triplexes and fourplexes. I can help in both refinance or purchase transactions. loanDepot offers a wide array of mortgage products, including fixed or adjustable-rate loans and a variety of terms from 10 years to 30 years, and just about every loan program including the Oregon Bond, which not all lenders can offer.
Federal Housing Administration (FHA) requires a low down payment and one of the most flexible programs in terms of credit score and qualifying. The loan limit for Southern Oregon is $420,250. Veterans Administration (VA) loans are amazing and often offer a “zero down payment” option. And there is no size limit on the loan. I’ve done $1,000,000 VA loans before.
Additionally, we offer conventional loans with a loan limit as high as $647,200. Jumbo loans of up to $2.5 million are also an option.
What states are you licensed to work in?
I can serve clients in Oregon, Washington, California, Idaho, and Arizona. Additionally, I can refer clients to other reputable sales managers in the other states not listed.
Dave, what do you see happening with rates? Should we anticipate them going up anytime soon?
When I started lending in 1982 the rates were 17.5% with an Annual Percentage Rate (APR) close to 18.347%. Certainly, the loan amount you can qualify for is impacted by the interest rate. Rates have been going up slightly over the last few months. It really is important if you are thinking about buying or refinancing, to explore this NOW. There is way more room for rates to rise than fall. I’m suggesting to my clients to lock in their rate.
In your experience what are the best moves you see savvy mortgage clients making?
I was working with a young single man wanting to buy his first place. He wanted to grow his real estate portfolio. I suggested he purchase a duplex with minimum down. A couple years later he rented out both sides and purchased another duplex with minimum down. If you have a $500,000 property and owe $400,000 or $40 on it, the appreciation will be the same. It’s based on the value not the equity. If you can manage the monthly payment, leveraging real estate can be a fortune builder.
Dave, you have been providing loans for a long time, what keeps you going?
It’s true, I’ve been in mortgage lending a long time. I don’t want to retire; I like helping folks and figuring out solutions. And besides, grandkids can be expensive! The great reviews fuel me. I’m proud of my FIVE-star status on Zillow reviews. Read them for yourself: https://www.zillow.com/lender-profile/DAVESPORTER/.
As an example, here’s a recent customer comment: “After several bad experiences with other lenders trying to get an approval I was beginning to lose confidence in buying a home. I put in one last application to Dave Porter on a recommendation. The experience working with Dave and his team was incredible. They moved mountains to get me and my fiancé into our new home and we couldn’t be happier!”
Dave, we now know more about you but tell us about your company, loanDepot.
I could have worked just about anywhere and was offered some proposals. I choose loanDepot because people that I know and trust work there and the marketing tools are exceptional. One distinct advantage is that loanDepot is the second largest non-bank mortgage company in the nation. This provides us very competitive rates and programs. I also love the technology they offer. When reviewing a conventional loan, the Automated Underwriting System displays both Fannie Mae as well as Freddie Mac options for comparison. Sometimes a loan is approved by one and not by the other. Having both options can save the transaction—and time. We are also alerted to appraisal waivers, otherwise known as property inspection waivers. These are often offered to those buyers with a strong down payment, good credit.
This advantage can also save time and money for homebuyers. And we can verify income and assets digitally which can save time and hassle.
On a recent file we were able to digitally verify the purchaser’s employment and assets. The Loan-to-Value was low and so we received a property inspection waiver (no appraisal required). Basically, the file was ready to close; we simply needed the title report and homeowners’ insurance policy. That was an ideal situation. Usually there is a great deal of paperwork required, but the technology can be a game changer.
It is very easy to reach you. Please tell us more.
One of my keys to success is my availability. It is critical that I can be there for my clients and the Real Estate professionals I work with when they need me. I know that my quick response time has saved transactions. I work evenings and weekends. I am thankful that my family is supportive of my availability to my clients.
Dave Porter, NMLS# 483876
344 E Main, Ashland
This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Loans are subject to credit and property approval. Other limitations apply. Rates, terms and availability of programs are subject to change without notice. State disclaimer: loanDepot.com, LLC NMLS ID 174457. www.nmlsconsumeraccess.org Licensed by the OR Division of Finance and Corporate Securities, Mortgage Lending ML-4972.| WA: Licensed by the WA State Department of Financial Institutions, Consumer Loan Company CL-174457. | ID | CA: Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act CRMLA 4131040.