Just a thought of a the day....

I just want you to think about a quote from one of my favorite books as you walk around today...

"Perceptions are not of things but of relationships. Nothing, including me, exists by itself- this is an illusion of words. I AM a relationship, ever- changing."-Notes to Myself, Hugh Prather

This is great to always remember but especially in the mortgage industry. It is ever changing and involves relationships of all kinds.

Just a thought of a the day....

Why Real Estate Agents?

I had a great meeting with an awesome team of Realtors today. I will go into detail about them later in this blog. My meeting was to review the new good faith estimate and HUD settlement statement. It made me realize in this meeting that if Realtors have that many questions then what about the buyers? Just like any industry it has it own verbiage and I consider agents a part of this industry. What I realized is that real estate agents are going to be especially important for all buyers. Real Estate Agents are out trying to learn so you can have one more reference in your transaction. It is also where teamwork and a clear communication line cycles around again. It is great to know a group of agents, builders, attorneys and lenders that work together. You have to remember that in most cases a group of people work good together because they all know how to clearly communicate which helps in those sticky situations. They are all there for you to lean on and ask questions. It seems from my past experiences that if one party is frustrated then so are all parties. I do want to point out that just because they are a team they still have you in common. This means that agents can only help you if you give your lender permission to openly speak to them about you. They don't see good faith estimates automatically even though they are a huge part of the transaction. I would suggest that you let your lender know that you would like your agents to have copies of your good faith estimate. Opening this line of communication for you will make your transaction that much better. That awesome team of Realtors that I can recommend in the triangle area of NC is Go Realty. You have some of the most experienced, highest energy ,best personalities and best social networking sites in the area. They are truly there to help you! I will go into some details about the new GFE ( good faith estimate) and HUD settlement statement in my next blog. I hope you will stay tuned.

Why Real Estate Agents?

Rates, Rates, Rates

What is the rate? That is the term that you hear everyday from a buyer. This is the term that I believe every buyer believes they need to ask on the initial interview. As a lender you are a financial advisor but not a psychic. We keep you up on what the market is doing but predicting the rates is time consuming and challenging. Mortgage Rates primarily reflect the performance of the U.S. bond market. Rates fluctuate daily and are affected by many factors. Rates are not the first item of a business that a lender wants to speak to you about as it is based off several factors. This means the interest rate is based off that loan product, loan to value and FICO. In fact most lenders want to know you so you should be prepared for a preliminary mortgage application of your financial picture. Going into this mini interview you should know your story and points to talk about.... Self employed for less than 2 years, have another house to sell, collections, judgements, type of loan of interest, your work schedule. Do you know how much house you want to buy? Have you told your lender your expectations? Have you gotten most of your questions answered? As you know by now the theme of my blog is good communication. This starts at "Hello" and helps to form a good relationship. We want you to be sure that we have answered all your questions along the way as this is going to be one of the biggest financial transactions that you are going to make.

Rates, Rates, Rates

Choosing a Mortgage Professional

We are in a market where the mortgage companies have become more streamlined than ever especially with the recent RESPA changes that took effect in January. I had a first time homebuyer come in the office and ask what can you do different than your competitor. I said to be honest it comes down to who you like best and can trust. The mortgage industry is effected by the world and is watched by investors and the government. In this market there isn't much that is negotiable for you other than your experience. One part of your experience that you can help is frustration because of unclear communication. If you have been reading my blogs then you should have noticed my common theme.. clear communication. I would ask for that upfront. The other part of your experience is the person. A personality is hard to change so when you find someone you relate to or even understand then I would move forward. You have to work with this person for several weeks or months. Your experience is also based on your point of view. You can choose to think of a mortgage professional like a vendor or lasting relationship. A vendor is someone who promotes or exchanges goods or services for money. A relationship is when two or more parties have an interest in common and benefit from each other. A mutual dealing between people or parties. You can think of a mortgage professional as a vendor since they are getting money out of the transaction. I would choose to form a lasting relationship that you both can benefit from for life. People form relationships based on trust so this also means that you trust that your mortgage professional is doing the best they can do for you. This takes you further than saving a $100.

Choosing a Mortgage Professional

Looking towards homebuying

I promised you all in the last blog those insider secrets.... This includes the #1 goal... a guarantee you close on time. I can say that with Prospect Mortgage that we can guarantee your loan package to the attorney's office 3 days in advance. It takes teamwork to guarantee this as there is a timeline that must be met. This means your help too! I have been in several predicaments where we needed documentation the day of closing and I hear I don't have that, don't know or it is packed up. I have compiled a list of items to stay clear of we you are searching for a home. This is for new and experienced homebuyers. You have to remember that guidelines have tightened up so the experience for everyone is new. I work with my builders in the industry and the process on new construction can take up to 4-6 months if you are starting from the beginning. This means that more than likely your credit report will have to be pulled again and documents will have to be updated again before closing. Just remember to always talk to your lender. We are your financial advisers during this process and are on your side.

1. Don't move assets. We have to verify any large deposit which means that if you keep moving money around then we need every statement. This can pose a problem if we weren't originally going to use that as one of your assets.

2. Don't change jobs. We have to verify that you are still employed at least 10 days before closing. We will need consecutive updated paystubs. It could also pose a problem if the chunk of your income was being counted from commissions. We have to have a full 2 year history on commissions to be able to use the income.

3. Don't open new credit. Like I mentioned before we might have to pull new credit during the process and most rates and products are based on certain credit scores. This means stay away from buying large appliances and furniture for the new house before talking with your lender

4. Don't pack up all your financial documents and computer. These should be the final items that you carry with you. We might need updated information or one last document to verify something for underwriting.

5. Don't' consolidate bills and don't go delinquent on bills.

6. Don't buy, lease or co-sign on an auto. Lenders look at debt to income ratios. These large payments just like the large appliances can impact your monthly debt to income ratios and prevent you from qualifying.

7. Don't deposit any large sums of money. We have to verify any large deposits. Cash deposits are usually hard to verify. This means don't take the money that your brother borrowed and deposit it 60 days before you apply for a mortgage and defiantly not during the process. We have to verify earnest money checks and usually that means updated statements along the way. If you do then please save receipts.

8. Don't hide anything upfront from your lender. Would you hide information from your attorney if they were representing you? Not everybody has the same story about their life. Lenders base your original story on how they structure the loan. This is one of the most important parts of the process. Having to restructure a loan in the middle of the process is difficult on everyone.

This is the best advice that I can give you to ensure that your loan closes. We will find out everything as the loan proceeds and it is just best to be upfront. I would love to hear if this helped you out there.

Looking towards homebuying

Clear mortgage communication is key!

The Mortgage industry is one of the biggest conversations for people today. The Mortgage industry due to the economic crisis has really put the loan officers, assistants, underwriters and processors in a tail spin. It isn't the one that you are reading about in the newspapers. Most of us got in this job to help buyers obtain a wonderful result... A HOUSE. The reason that I wanted to startwriting this blog was to keep buyers up on the actual mortgage process. The fact is that buyers are aware of what they hear and read. They aren't prepared for the roller coaster process that results from all the changes in the industry. I want buyers to know what to do and not to do before they find that dream house. This is also why my successful mortgage team has just left one of the biggest financial institutions to join Prospect Mortgage. The underwriters have so much red tape to get through that they have forgotten about the buyers emotions and closing dates. The internal operations cannot change their process quick enough to keep up with all the changes. I know for me that really helping buyers and making them happy is one of the reasons that I want to continue in this industry. This sounds like an easy outcome but one that has been set on the back burner as the industry has adjusted with the changes. It is what everyone is being told is happening but the process is just harder on everyone. I believe the best way to do this is clear communication. Communication is going to be the key to success in the mortgage process. This should result in smiles and after all they do say that a smile uses less muscles. The best compliment that can be received is a satisfied customer.

Clear mortgage communication is key!