Tennessee Surety Bond?

[rwhelton]

Ok so I live in the most ridiculous state now that I understand their surety bond guidelines.........

Beyond that, how hard is it going to be for me to get a bond to proceed opening a company.

673 fico
$30,000 Cash Assets verified
No previous BK's
9 years experience in the business

Are these other companies worth shopping with because they claim to have 17 agencies to place your bond business with?

My local insurance company has already denied me.....

[Admin]

rwhelton,

It is difficult to state whether you qualify for the bond, as you did not say which state the bond is for or the amount they are requiring of you. This would be similar to trying to figure out if someone is approved for a loan when you do not know the amount or what it is for.

What you listed so far looks good, we could have you approved in any of the 50 states after verifying some additional information. You can obtain an approval and rate information immediately online at the following link: Mortgage Broker Bond Quotes.


Believe it or not, applying with multiple agents can be a problem for you if not done properly:

1) Some bonding companies will decline an applicant if they receive the same application from more than one agent. They feel the applicant must be in a desperate situation, which is something they do not want to write. Therefore, if you submit to multiple agents, you must keep an open line of communication regarding what bonding companies each agent is submitting to.

2) Many agents do not review a file prior to submitting to a bonding company. They simply submit your application to every bonding company they are appointed with (I call these agents "Paper Pushers". This might sound like a good idea at first, but when you look into this deeper, you find great flaws in the procedure. For one, bonding companies tend to reply slower to these agents, as they write a small ratio of their submissions (If they have 16 bonding companies, then the surety only has a 1 in 16 chance of writing the business). However, the larger problem involves your personal credit. Some bonding companies will pull their own credit report, even if the agent submits one with the application. This could result in numerous credit inquires, which could severely nulllower your score.

A good agent will review the file and send it only to bonding companies that would be interested in writing that specific applicant. This will decrease credit pulls to a minimum. Our agency pulls soft credit reports only, which does not effect credit. In most cases we approve the bonds in house under our own authority (an ability smaller agencies or insurance agencies that write bonds seldom do not have). In other words, most our applicants will not have a single credit inquiry after obtaining a bond through our agency.



The fact that your local insurance agency denied you actually means little. They most likely do not have diverse enough markets in order to properly place your business. Use the link above, it will bring you to a mortgage broker program that is exclusive to our agency.

[rwhelton]

Thanks for all the information, sorry if I didn't specify the state clearly or the amount. I'm looking to get bonded in Tennessee in the amount of $90,000 under their crazy wording required.....

From a risk standpoint, is it going to hurt me seeing as how I just sold our house, living in a rental, while our custom home is being built. Estimated to close on May 31, 2006?

I could bring a co-borrower along with some more assets if that would strengthen the application but that co-borrower will not have the experience in the industry that I have.

So I would have some assets and the experience, co-borrower would have more assets...

Any thoughts.....?

[Admin]

Thanks for all the information, sorry if I didn't specify the state clearly or the amount.

Whoops. It appears I should have read the title of your post!

I'm looking to get bonded in Tennessee in the amount of $90,000 under their crazy wording required.....

Tennessee is one of the worst states to obtain bonding in. The bond form does not have a cancellation clause, a must for most bonding companies these days. The amount of the bond is also on the high end in comparison with other states.

From a risk standpoint, is it going to hurt me seeing as how I just sold our house, living in a rental, while our custom home is being built. Estimated to close on May 31, 2006?

Most bonding companies will want to see home ownership for a bond of this size, but we still should be able to place the bond for you at a good rate without it.

I could bring a co-borrower along with some more assets if that would strengthen the application but that co-borrower will not have the experience in the industry that I have.

There is no need to do so quite yet. If we have difficulties obtaining an approval we will explore other options.

Any thoughts.....?

You should be in good shape. However, you can not obtain an approval online for the state of Tennessee. It is one of the few states that applicants must apply by fax using the following link: mortgage broker fax applications.


Let me know if you have any other questions.

[iSureties]

Spam alert

[Admin]

Got it, thanks!

Unfortunately, we have had an increasing amount of spam as of recent. We've been doing our best to delete as they pop up, but it might be time that we modify user registration to weed out more spammers.