Let's play a game: Did my buyer's really say that? Let's hear a moment that you couldn't believe!!

Mortgage Manifesto uses Facebook

I want to know what you think…


Many companies and sales individuals are (and should) be using social media to promote themselves,and most importantly their buyers and sellers. By putting themselves 'out there', they are showing just what clients need and want… the human aspect of a sales person ( loan officer, real estate agent etc..). Social Media has been a way for everyone to really get to know each other. We have seen job markets begin to use it as your first impression, companies using for all sorts of information.

I work with two different companies and I saw those companies overlap yesterday that made my mind race. I work as social media marketing manager for Digi Tech Studios and a loan officer assistant with Prospect Mortgage. I truly believe in the power of social media and the numbers are there to prove it. I believe that people needed this to bridge the gap and to really get to know the power of our world. When you post on Facebook you have made it available for the world to share. Does this mean that you want it shared to the world? You have heard stories and I have shared stories of life inside the mortgage industry. I have talked about how to get prepared before even speaking to a loan officer or agent. I just never that I should go as far as to tell you that if you don’t want to the world, including underwriters to know what is going on in your life then please check the security levels of Facebook. It is there to protect you against everything and everyone! I remind you of this because I had a file submitted to underwriting for approval and the underwriter looked at Facebook for an approval.

This means I am adding another aspect to your mortgage preparation checklist.... Check your security levels.
If you don’t know here is how.. http://www.reclaimprivacy.org/



Now, I can see it both ways… You have made it public information by posting it on the web. An underwriter’s job is to evaluate risk. However, it is personal information in which you were sharing with your friends. You put yourself out there by not checking your security levels.



How do you feel about this?

Mortgage Manifesto uses Facebook

Taking a Seat Back in the Mortgage Manifesto

Sitting at the football game a few weeks ago; it was so crowded in our section that everybody limbs touched. It was probably because there was someone not assigned to that area that made us all pay. If you are a season ticket holder then you can claim your space by renting a seat back. The are there at every gave for you throughout the season. I thought of them as a way to weed out the people that were not suppose to be in that section. This could help the rest of us enjoy the game.  
The stricter guidelines are a way for the mortgage companies to weed out the homeowner's that aren't suppose to be there. As a new homebuyer you have to weed through loan officers, the loan officer and processing has weed through documentation,underwriters weed through the documentation to give a decision and the investors weed through the loans to find a solid one. NOW...  that is weeding in a trickle effect and this happens everyday in the mortgage industry. Which is another reason for the Mortgage Manifesto.

The hard part for everyone is that the untruthful loan officers and borrowers have made it all more difficult for all of us to trust our decision. I just ask that you not listen to the media and trust that you have selected a loan officer based on intuition or referral of a trusted party. The loan officers are trusting that you have given them truthful documentation. When they come back to you for more documentation then you need to know that everyone is just out there to try and show the investor that there is no doubt.

 I have mentioned this before and feel that this needed to be mention again in order for us all to have great experience. Trust you have made the right decision by following the rules and the loan officers guideline. In turn,  loan officer can help to fight your battle one piece of documentation at a time.

Taking a Seat Back in the Mortgage Manifesto

Never Knowing

I wanted to take a break and focus on a different aspect of the mortgage industry. Insider or not everybody has felt the turmoil of the encomony. I have used Jack Johnson's song “Never Know" from his album called In Between Dreams in 2005 as a comparision in this article. The song has such a great tune, but have you ever listened to the words?   As I was deciding what to write this song just came right in my head. I  had to go listen to the song and print the lyrics to share to all of you. I don’t know his thought pattern behind this song but I do know that it reminds me of what is happening in this nation with the mortgage industry and economy. It might just be me as I am consumed in this world, but you can be the judge. I have included in this document the lyrics below with a little switch to show my effects.


Never Know
------Jack Johnson ( his lyrics are before the dots and my thoughts/ replies are after) I would want to hear what you think???

I hear this old story before……………………………. The mortgage industry story is talked and heard about everyday.

Where the people keep killing for the metaphors……………….watching TV and listening to media night after night

Don't leave much up to the imagination,…………………..It stares us in the face right on the front page of the media

So I, wanna give this imagery back.............................. Many people has this imagery before it became more than just an image.

But I know it just ain't so easy like that…………………………… we are all struggling together

So, I turn the page and read the story again…………………AGAIN AND AGAIN, OVER AND OVER

And again and again

It sure seems the same, with a diff. name.................What bank today? What home forclosed?

We're breaking and rebuilding………………..The economy that we are living in now is ready for rebuilding and we have a long way to run.

And we're growing....................................Time never stops. Let's grow up and stand up.

Always guessing..................................What is going to change in the mortgage rates or guidelines today? Should we lock or not?

Never knowing………………………………….Who knew that the mortgage industry would end up this way

Shocking but we're nothing..................It is shocking watching the guideline changes because of what our enconomy has learned from simply trying to help people.

We're just moments

We're Clever but we're clueless………………. Thought we were being clever offering mortgages to help everyone.

We're just human.................................trying, working, succeeding and dying never the less we never know.

Amusing but confusing........................I don't see many people amused. It has become amusing and confusing to help strong occupants get mortgages. It is hoop after hoop for all of us to jump through.

Were trying but where is this all leading…………………….NEVER KNOWING! The fearless leaders are figuring out attempts to get us out of this.

Never Know.......................................... In the end is all of this going to help? What is this teaching everyone?

It all happened so much faster..............................mortgage industry always changes at fast paced but this cycle flashed right in front of my eyes.

Than you could say disaster………………………………… All this did end up to be a disaster and happened at a shocking rate.

Wanna take a time lapse....................................................Is there really time for this? Do you want to go back in time?

And look at it backwards………………. Would things have been done differently?

From the last one

And maybe thats just the answer................................Everyone is trying to win, keep up and not end up like the last one.

That we're after

But after all

We're just a bubble in a boiling pot………………… All of us scrambling to make our house payments and keep our houses.

Just one breath in a chain of thought......................Just little ants running around in the Powers heads

The moments just combusting...................................The banks, our neighbors, our employers, friends and family

Feel certain but we'll never never know

Just seems the same.......................All of these changes and we haven't seen much different as foreclosures are still at a high rate.

Give it a diff. name..................................................Seems like for once that many of us are in the same boat. Some trained in skilled jobs that thought it would be different for them coming out of school.

We're beggin and we're needing………………………………..We have been trying and looking for new solutions to get us out of this mess so we can breathe.
And we're trying and we're breathing..............................Too many skilled workers applying for the same jobs and not enough jobs left. The loan officers that are left in this industry have been brused from the ones that didn't want to play by the rules.

Never knowing

Shocking but we're nothing.....................We are something... don't forget that!

We're just moments......................What are we moments away from? solution? Is there one?

We're Clever but we're clueless......................Clueless

We're just human........................Do us humans have the answer?

Amusing but confusing

Helping, we're building……………………. It is time to take that approach in our life. If you haven't then stand up. It is great to see builders reaching out to help others in need when their business is done.

And we're growing................................................. We are hopefully growing together as a nation to help us out of this economy mess and the mortgage monster.

Never Know


Knock knock on the door to door................................You hope every day that you don't awake to that terrible knock on your door or knock in the face.

Tell ya that the metaphor is better than yours......................No longer about just leaving that corner office, but having to learn the meaning of life and family over again.

And you can either sink or swim……………………… we together have to make this decision

Things are looking pretty grim………………………..Trying to keep positive has become harder than ever
which means that strain and stress is everywhere.
If you don't believe in what this one feeding........................... Are the powers to be that we are suppose to trust feeding us the right information?

Its got no feeling.........................I am feeling alright? You?

So I read it again.......................Every day.. same story different day.

And again and again

Just seems the same........................... All you hear and have to explain. There are so many houses to sell and not enough qualified people.

Too many different names..............Names of friends and family lossing jobs and companies droping like flies.

Our hearts are strong our heads are weak………………We need to push for both.

We'll always be competing never knowing.............True!



Never knowing

Shocking but we're nothing

We're just moments

We're Clever but we're clueless

We're just human

Amusing but confusing

But the truth is

All we got is questions

We'll Never Know

Never Know.................As the world turns the answers come. Now, it is all just never knowing.

Never Know

Now listen again for yourself... http://www.youtube.com/watch?v=_j6ZEOXoNvw
 
Thanks Jack! Great Honesty!

Never Knowing

Sources of Documentation for Mortgage Loan

If you have gotten passed the general application process then you are ready to support your application with supporting documentation. The loan officer or broker that you have chosen is going to require certain documentation to get your file submitted. One of the biggest pieces of advice that I can give is to listen and follow directions. Certain documentation and ways of documentation are required for a reason and it just holds up the process to give us only half. Just remember that we are only following instructions called guidelines issued by the federal agencies. Below is a list of sources if you are unsure as to where to find certain pieces of documentation.




SOURCE FOR MISSING DOCUMENTS


Income


Pay Stubs/Earning: Statements this item can be provided by your current or ex-employer. Most employers keep records for three to five years.



1099: This item can be provided by your current or ex-contractor. Most contractors keep records for three to five years.



W-2: This item can be provided by your current or ex-employer. Most employers keep records for three to five years.



1040: Individual Tax Return This form can be obtained by filing Internal Revenue Form 4506. This form can be located on the Internal Revenue Service’s website,www.irs.gov/pub/irs-fill/f4506.pdf or call 1.800.829.1040.

You may also try to contact your Certified Public Accountant.



Corporate Tax Return: This form can be obtained by filing Internal Revenue Form 4506. It will be needed if you have 25% of more invested in the company. This form can be located on the Internal Revenue Service’s website,www.irs.gov/pub/irs-fill/f4506.pdf or call 1.800.829.1040.

You may also try to contact your Certified Public Accountant.



Rental Agreement: A licensed real estate agent should have copies of this document if they assisted you in renting your home. This information is also found on Schedule E of your tax returns. Schedule E form can be obtained by filing Internal Revenue Form 4506. This form can be located on the Internal Revenue Service’s website,www.irs.gov/pub/irs-fill/f4506.pdf or call 1.800.829.1040.

You may also try to contact your Certified Public Accountant.



Divorce Decree/Separation Agreement/Child Support Agreement: Your attorney or the court system in which the agreements or decrees were issued is the best sources for these documents.



Assets

Bank Statements/Cancelled Checks/Verification of Deposits Banks can provide 3 months average balance verification on bank letterhead and signed by an authorized bank employee. Proof of deposits can also be obtained by providing the approximate date and amount of the deposit.


Gift Letter: The best resource to obtain this document is the donor.



Stock Brokerage Statements: You may contact your broker for additional copies of your brokerage accounts. Be sure to include all pages. Profit and Loss Statement are two sources are your Certified Public Accountant or Accounting/Auditing Department. Balance Sheet the two best sources are your Certified Public Accountant or Accounting/Auditing Department.



Miscellaneous


Warranty Deed: The listing and selling real estate brokerage should have copies of this statement in their files. You may also try the closing attorney or escrow/title company.



Purchase and Sale Agreement: The listing and selling real estate brokerage should have copies of this statement in their files. You may also try the closing attorney or escrow/title company.



HUD-1 Settlement Statement: The listing and selling real estate brokerage should have copies of this statement in their files. You may also try the closing attorney or escrow/title company.



Profit and Loss Statement: The two best sources are your Certified Public Accountant or Accounting/Auditing Department. Balance Sheet the two best sources are your Certified Public Accountant or Accounting/Auditing Department.



Warranty Deed: The listing and selling real estate brokerage should have copies of this statement in their files. You may also try the closing attorney or escrow/title company.



Driver’s License: Contact the State’s Department of Motor Vehicles to obtain verification.

Sources of Documentation for Mortgage Loan

Get on the List

Have you ever tried to refinance or buy a house and had lenders everywhere calling you? I have been asked a many of times if we sell leads. The answer to that question is NO. When a lender pulls your credit then your name goes on a “trigger list” that can be sold to firms for companies to buy. It isn’t the mortgage companies doing this but the actual creditors. I suggest logging onto this website at least 48 hours before giving us permission to pull your credit. Here is a way for all you buyers to make sure that your name and information doesn’t get on that list…


http://www.optoutprescreen.com/

Get on the List

FHA changes in 2010

If you have spoken with mortgage lenders recently then by now you are familiar with the term FHA loan. They came around in the depression era to encourage people to buy houses and stablize the market. They have gained popularity in the recent years as it made the loans affordable with lower down payments, flexible guidelines and typically lower credit scores. This economy and all the recovery acts and protection acts have changed the way mortgages are done. It began with the conventional loans and this year FHA jumped in. They announced back in the Spring that there were going to be three changes this year. They have been experiencing rising defaults which sent the cash flow below the mandated levels.  They are hoping that these changes will  give borrowers a stronger equity position making them less likely to default. The #1 change was the increase in credit score. I want to talk about #2 change which covers mortgage insurance premiums.

These mortgage insurance premiums are required to insure the lender against default. There are two types of mortgage insurances that come with FHA loans. The upfront mortgage insurance and the monthly mortgage insurance. The monthly mortgage is required until you have owned the house for 5 years and gained some equity making the loan to value of 78% or less. The upfront mortgage insurance is refundable during the first 5 years of your home loan. You are able to finance the upfront mortgage insurance making your loan amount more giving you higher payments and less equity.

The new policy will  be for all loans taken after October 4, 2010. If you are planning on refinancing and currently have a FHA loan then please speak to a lender today. The changes include a decrease in the upfront mortgage insurance from 2.25% to 1% and the monthly will increase to .90% for Loan to value greater than 95% and .85% for loan to value less than 95%. It is slight changes but could impact your debt to income since the payment will be a little higher.

At this time I haven't heard the effective date for #3 change.... reducing seller concessions from 6%  to 3%.

FHA changes in 2010

Raleigh made it to Kiplinger's top 10 cities for raising families! Check it out.. http://ping.fm/7pgXq

Mortgage in the Raw: Mort Rates often change in opp direction as Fed changes due to the dynamics within the financial mkts.

Monday Mortgage in the Raw: Promissory Note is the legal evidence of the debt b/t the lender & you. It states terms, promise and signature.

Mortgage in the Raw... Simple Interest is interest computed on the balance of the outstanding principal only.

Embrace Life and Embrace the Low Mortgage Rates

Thinking about life there are many inventions that go uninvented and many ideas that pass by us. In passing I have heard that the average person thinks of a million dollar idea at least once a day. Did you know that the common Mayfly has the shortest life? They live only one day with only one goal. This goal is to mate and reproduce. In fact; the whole Mayfly population is counting on this for survival. This just shows you how we need to embrace life because time is precious.

Let’s take a moment and think about this in relation to your life. What is the message you need to reproduce? How are you leaving your financial picture? Do you know what your financial picture looks like with the change in economy? Have you written down to call about a refinance and haven’t done it? There are lots of questions to ask yourself. Change and uncertainty are the main reasons why most people let ideas pass. Don’t let uncertainty be one of the reasons that why you didn’t check it off your ‘honey-do-list.’

Listen to your mortgage conscience; take the time to answer these questions. The mortgage rates are at all time low. This is the lowest they have been since the 1950’s. Change and uncertainty are the main reasons why most people let ideas pass. Don’t let uncertainity be one of the reasons that why you didn’t check it off your ‘honey-do-list.’ Mortgage originators are there as your advisor and your teacher. Many mortgage companies offer free mortgage check ups to assist with this issue. You owe yourself and your family to hear any options that evaluate your current situation. This might not be life or death decision; but it is one that could affect your financial picture. You can help your family to save money for other life goals.

Remember: Successful people buy stock in themselves and it begins with knowledge

Embrace Life and Embrace the Low Mortgage Rates

AS You and Me (Assume)

AS You and Me (Assume)


The mortgage industry teaches me on a daily basis that I shouldn’t; and cannot assume anything. The industry has gotten burned because we believed everybody was truthful. Now, underwriting requires documentation, documentation, documentation and more documentation for every scenario. I watched another lesson learned yesterday in my own office. It was one of those simple scenarios that as a person of the industry caught all of us off guard. I found out that you do need to let everyone know to come to the home closing.

A loan officer came out of his office with a completely flabbergasted look late yesterday afternoon. He proceeded to tell me a story that literally shocked the pants off me. He had worked diligently on a file with a team of army men about as long as a classical piano concert. He had just gotten to the place where it is time to give the client some relief. This is the time when underwriting is officially done collecting documentation from them. As you might know from being on any side of one of these transactions; it brings a sigh of relief to everyone. Just at that moment he got a phone call from an agent that smacked him right in the face. It was the real estate agent letting him know that the borrower had left the state. It was due to close the next morning at 9am. Working on transactions everyday I thought to myself; why would you leave town without telling anyone? It is usually the very exciting part for the buyer.

I had to know how the story ended as I arriving in the office today. I was told that she thought that it would close on that preset closing date without her; and we would call her after a couple days to move in. She had a PLANNED vacation that she knew about for over a year. This is where I wondered was it our fault for assuming that she knew, or her fault for not letting someone know she had a vacation planned. My insider secret to avoid this Mortgage Manifesto is to let you know that North Carolina requires you to be at closing. It applies to both purchase and refinance transactions. If not, you will need a power of attorney, change the closing date, or plan for a mail away closing.

AS You and Me (Assume)

True Confessions

We all know what needs to be done in life; but, we find all sorts of reasons to put it off. Do you know what needs to be done to sell your house? If you are trying to sell your house in today’s market then you are going to have to go that extra mile. There isn’t any more time for putting off the inevitable. The fact is that there are more sellers than buyers; so, for most people it will take at least 60 days to sell. If you have hired a real estate agent then use them as a resource. They hold valuable statistics, experience and advice.

Maritz Research Staging Polls says: “63% of home buyers are willing to pay more for a house that is move-in ready.”

It is time to begin thinking like a buyer to ensure your house stands out in from the competition. Start by jotting down what you really liked about the house when you bought it. What are the items that you still love about the house? What are the first items that you notice? What is just okay and what is fabulous? What do you know needs to be repaired? Decide if there are renovations that need to be done before the staging or remodeling.

Clean out the clutter! Removing the clutter will make rooms look bigger and brighter; leaving room for imagination. Buyers want to visualize themselves creating their own memories. This means packing up those knickknacks, family photos and trophies. Take down fixtures that you want to keep. If a buyer sees it then they might want it. It might even be time to rent a storage unit. Buyers will open every cabinet and door; so, don’t over stuff them. In most situations a house has shown better with furniture; so, don’t pack up everything. You know are ready to begin touching up the paint, pressure washing and fixing those minor repairs.

Renovations: If you decided to renovate then keep in mind the neighborhood, style and price point. You want your renovates to stay in the middle to low price range. You don’t want to over improve for the neighborhood. Spend your money on the important items before you spend money on the design projects. Talk with your agent before making any upgrades. They will know what type of décor has been selling in your neighborhood. This keeps you on track and away from risky renovations that may not be attractive to your buyers. You want to concentrate on what gives you the most bang for your buck. The term that is used most is return of investment ( ROI.) (http://www.demesne.info/Improve-Your-Home/Improvement-ROI.htm) The areas like kitchen and bathrooms have proven to have the highest ROI. Removing the vinyl floors and countertops from your bathroom has been show to give you back over 100% ROI. Kitchens usually need to be updated to compete with others in that same price bracket. A good rule of thumb is to keep the upgrades under 15%. The other areas to think about are any unfinished areas, roofs, decks, windows and siding.

Home Staging: This is the act of preparing a home to sell with emphasis on presentation. It is just as important as the other processes because it touches on the buyer’s emotional side. This step is necessary if you want to sell your house quickly and for the highest possible price. Staging has proven to sell your house about 32% faster. You can choose to stage the house yourself or hire a professional stager. (http://stagingdivadirectoryofhomestagers.com/). A staged home benefits in every marketing, justifies your price and photographs better. Photography has become especially important with almost 95% of buyers using the Internet as the first impression. The first part of your house that the buyer will see when they arrive is the exterior. If the curb appeal makes a bad impression then your prospective buyer will carry that negativity throughout the house. Make sure the entrance way gives them a nice, bright welcome including a new welcome mat. It isn’t necessary to stage every room of the house but pay attention to the bigger ones. Family rooms and kitchen can have a lot to do with the resale value. Let the room breathe so buyers can envision themselves entertaining and spending time with the family. If there is a fireplace then make it the focal point. Use neutral colors with hints of color to draw the eye. This doesn’t have to be an expensive project. You can change the visual look of a room by an artful placement of mirrors, lighting, arrangement and colors. Another way to spruce up a room is wit simple upgrades like staining cabinets, knobs, changing out faucets, adding plush towels and slipcovers.
Good Luck!!

True Confessions

Taga Bike Takes Traveling to a New Level http://ping.fm/CBiI0

Adjusting to the New Reality

What is the common denominator between a root canal, colonoscopy, giving blood and obtaining a mortgage? If you are buying a house, then the answer is you. I read an article as I was finishing my morning coffee that reminded me exactly what I was trying to avoid by writing the Mortgage Manifesto. (http://www.msnbc.msn.com/id/37831562/ns/business-real_estate)

There is an industry joke that getting a mortgage is like having a root canal. It isn’t a joke but a way to describe the reality of the situation to borrower. The article by Bill Briggs actually commented this….

“Even for successful buyers with sterling credit, seeking a mortgage these days feels like a simultaneous root canal and colonoscopy.”

I will not give away the article or point out my previous articles. I just suggest that you revisit previous articles to avoid as many sticky messes as possible. There was a lot of truth in this article; however I did have one objection. It was the comment on lenders being part of the whining during the process because they don’t have underwriting experience. The article didn’t mention that all the guideline changes have tied up the underwriters with extra processes and paperwork needed for a single loan. The truthful part is it has become more difficult for the loan officer to go to bat for buyers when underwriters see no grey area and buyers resist sending the proper documentation. Industry changes have made the stress seem like it out weighs the reward of helping a new homebuyer get into a house. All of the guideline changes, endless documentation and running around in circles ends up making everyone irritated. The lender/loan officer just happens to be in the way of the fire.

Another article on www.cnn.com wrote that “1200 prison inmates, including 241 serving life sentences, defrauded the government of $9.1 million in tax credits reserved for first time homebuyers.” This type of fraud and lack of crosschecking is the very reason it has become so difficult to obtain a mortgage. You have to prove everything which means document, document, document. These rules apply to everyone no matter the size of the home, credit score, size of down payment or homebuyer status. The industry has been burned and we all have to suffer together. If you are in the middle of obtaining a mortgage then remember to bring your positive attitude because there is a big prize at the end of your journey.

“When you come to the end of your rope, tie and knot and hang on”- Franklin D Roosevelt

“The artist is nothing without the gift but the gift is nothing without the work”- Emile Zola

“If you change the way you look at things, the things you look at change”- Dr. Wayne Dyer

Adjusting to the New Reality

Ingenious Green Scarf Phenomean http://ping.fm/Vxkt7

Is it Natural Progression or Patience http://ping.fm/vdAfV

Mogo :: Blog – Stop The Pain of Overspending » Blog Archive » 10 Ways To Tweet Towards Savings!

Share our secrets with all your friends. Pass this around, Share, Tweet, shout it out... Mogo :: Blog – Stop The Pain of Overspending » Blog Archive » 10 Ways To Tweet Towards Savings!

Mogo :: Blog – Stop The Pain of Overspending » Blog Archive » 10 Ways To Tweet Towards Savings!

New Fannie Mae Requirements

As of June 1, 2010 Fannie Mae will require a 2nd credit report pulled on the actual day of closing prior to funding. This pull is to verify that the borrower's current obligations haven't changed. It was found that most foreclosures that resulted in the first 24 months was due to incurring new debt for the new homes. This is inevitably going to delay some closings. I encourage all buyers and sellers to keep their schedules open 3 days around the actual closing date. I cannot stress the importance of resisting temptation to buy anything for your home before funding.


If the credit scores drop more than 2% then it will have to go back to underwriting. If it drops below the allowed credit score then it will disqualify you form buying the house. Any new credit inquiries will have to be documented by writing letters. Simply applying for a credit card and not using it will force underwriting to add 5% of the high credit limit to the bottom line even if the card isn't active. If your debt to income ratio was tight then you could be turned down!

New Fannie Mae Requirements

Thought of the day: “A vacation is what you take when you can no longer take what you’ve been taking. ” ― Earl Wilson

10 Ways to Close on Time

First thing to remember is that mortgage professionals want you to close on time. They are on your side, part of your team and have the same goal. It is best to keep this maze in mind as you travel through the process.There is a lot of processes from application to closing. Just remember that all these processes take time. Every day and turn matters. There are right paths to choose.  Here are 10 ways to ensure that you stay on the path to avoid a delay in closing.


10. Appraisal comes in with no issues (low value or requirement of additional documents)- If not, it could cause for some restructuring of the file. Make sure that your lender is aware of any changes to the sales price.

9. Check your email regularly- Most communication and documentation is sent via email. Several days are lost if you are sent documentation and it doesn't get returned immediately. There are several people involved in your file at once so it is easier to tag everyone through email;

8.Know who you are going to use for homeowner's insurance and attorney at the time of application- The amount of taxes and insurance effect your monthly payment. Underwriting cannot clear a file without knowing all the facts. Attorney has to send off for title and that can take at least 5 business days.

7.Think of everything in 3 days-  Underwriting usually has at least 3 days to get back to you with a decision. Every piece of documentation has to get collected and reviewed.

6.Get approval conditions back- Just know that your files will have to pass back through the underwriter's hands after approval. Be sure that those approval items are back in the processor's hands in a timely manner. Most of the time final conditions are submitted all at one time. There shouldn't be a delay in time if you get them all in at once.  

5. Don't deposit money- Most of the time one of the last items needed is bank statements. This could be because a new one has come out before closing or we are in need of verification of earnest money. If there are any large deposits on the new statements then they will have to be verified too. This is why it is best to not deposit money.

4. Don't pack up all your documentation- Have your most recent statements, tax returns and everything in a folder. Don't lose this folder in the mix of all those moving boxes. I have heard way too many times that documentation has been packed away.

3. Don't make any last minute changes- loan amount, down payment etc.. This will only require the file to have to be reviewed again by underwriting. This opens the door for additional documentation to be requested.

2. Don't slack on initial documentation. -Follow the loan officer's instructions and make sure that all the document is correctly submitted the first time. If you need a reminder of things to be mindful before submission then flip back to my article on February 20th- Looking towards Homebuying (http://mortgageprospect.blogspot.com/2010/02/looking-towards-homebuying.html)

1. Don't kill the messenger- Don't get frustrated- Know that everyone has done everything possible to ensure that this closing is happens on time.  If you have followed my post on February 20th, the loan officer, processor and these 10 items then you have the best chance of closing on time.

10 Ways to Close on Time

Tax Credit isn't Over Yet

Reminding all buyers, sellers and agents... There is one more piece of the Homeownership and Business Assistance Act of 2009. The tax credit isn't completely finished as it has been extended to some military members. Eligible members include military and federal employee members of the uniformed services, foreign service members and employees of the intelligence community. If you qualify and and are purchasing a primary residence then you will have an extra year to take advantage. Theses members had to have served duty outside the US for at least 90 days during the period of Dec 31, 2008 and ending before May 1, 2010. This only requires one spouse  in a household to have been serving during this period.

If you qualify or know of anyone that qualifies then pass the word. They have to go under contract by April 30, 2011 and close by June 30,2011.

Call your lender or visit the IRS website for more details.

Tax Credit isn't Over Yet

Mortgage Manifesto: Time out to laugh

Mortgage Manifesto: Time out to laugh

Mortgage Manifesto: Time out to laugh

Time out to laugh

I have decided to take one of those breaks like I described in my profile to share a funny innovative marketing approach..The Swagger Wagon. I know this blog is usually all about mortgage information but I thought everyone needed a laugh. I needed to take a small break for a shout out to Toyota. If you haven't seen this video then you must.  The marketing team gets an applause for this ad. I mean and on top of that there has been 1.2 million to view it and I am chatting about it.

http://www.youtube.com/watch?v=ql-N3F1FhW4

Time out to laugh

Reticular Activator

Are you thinking to yourself what is Reticular Activator?  RA is the part of the brain that is constantly on watch for familiar, unusual, threating or problematic items. When it notices one of these it sends a signal to your brain to wake up. It keeps you in alert mode.

My son's name is Zane. When I named him this I didn't know anybody named Zane. Now I know everyone's cousin and neighbors that have this same name. When people hear that name their brain notices that it is usual and reminds them of the other people named Zane.

If you have decided to buy a house then it is curently happening to you. The homebuying process is an usual item to your brain. This means that your brain is in alert mode. You are going to hear it talked about by everyone and all of those people have different opinions. When you engage in these conversations then please think of me, your mortgage lender and real estate agent. These are the people that you have choosen to guide you down this path.  They are the professional of this matter and know your big financial picture. Treat this process as a learning experience and ask questions.

Happy Homebuying!!

Reticular Activator

Tribute to Mothers

Habits need to be learned early was something my mother always said growing up. It was in regards to anything as early as potty training to homework to college. I didn’t believe her and got into some of my own habits only to circle back and realize once again.. Mother’s know best!


I truly believe that most children don’t talk finances with their parents. They believe that MONEY and SEX fall into the same category. It is the category that parents don’t know or wouldn’t understand. If you are reading this as an adult that is getting ready to buy their first house then your parents probably helped you get this far. In fact they have been with you for most of the big milestones. Why wouldn’t you go talk to them about this next big move in your life? As a mortgage lender please remember to get into good habits of spending by knowing how much you can really afford. Listen to people, get advice, and most of all sit down with your mother. The good, the bad and the ugly just follows you down the road so get into good spending habits early.

Happy Mother’s Day!!

Tribute to Mothers

Time to renovate and turn those lemons into lemonade

I have noticed the rise renovation loans in today’s economic market. Homeowners are either staying in their current house longer waiting for the market to change or scared of their employment status. The others are allowing their homes to go into foreclosure allowing for more purchases that require improvements.

Renovation loans can be used for Purchases and Non Cash out Refinances. This allows you to purchase a property or refinance a property using the additional money for renovations, repairs and/ or additions. Just like antiques need polishing to sparkle so do those older homes. If you are considering purchasing a foreclosed home that needs work done then this loan is for you. Many of the foreclosures are lemons after the buyers have let them go for so long. They need your help turning them into lemonade.

There are many benefits regardless of the type of renovation loan you select but it does require some work from you and certified individuals. Renovation loans use the value after the improvements allowing you to borrow more money. It allows you to borrower up to 110% of the value where construction to perm loans are based on the completed value. These types of loans are based on a 30 year fixed rate mortgage so it is suitable for long term unlike a Home Equity Line of Credit.

I thought I would give you some basic information of a Renovation loan so you can see if it fits your needs. I would recommend contacting a lender for additional information.

There are two types of 203k loans and both have eligible and ineligible items. Which means your first step would be to figure out what you want done to the house. This will help the lender to figure out what type of loan and make it easier for you to find the right contractor and/or consultant.

203k Streamline- requires no consultant up and total costs cannot exceed $35k (including associated fees), intended for quicker, easier rehabilitation costs, borrower cannot complete there own work, You can typically occupy the property after close or live there during renovations and a single payment is paid to the contractor upon completion.

Consultant K- requires more extensive work such as items to the structure, major installs and requires more supervision. A minimum of $5k worth of work, up to 6 months of the Principal and interest payments can be financed to assist borrower who would otherwise be paying 2 house payments.

All repairs have to start 30 days after closing and are to be completed within 6 months. The funds are put into an escrow account and will be paid to contractors depending on the guidelines of your 203k loan.

If you are ready to head down that path then contact a lender today.

Time to renovate and turn those lemons into lemonade

"People often say that motivation doesn't last. Well, neither does bathing - that's why we recommend it daily."
- Zig Ziglar

Remember NOT to recycling pizza boxes. Go to earth911.com for what to recycling and how.

Short Sale: The Basics

A short sale is when a home is sold for less than the amount owed on the mortgage for the home. This occurs when the bank agrees to take less than the full amount due on the mortgage.

A seller does not have to be behind on a home loan to seek a short sale. If sellers wish to pursue a short sale, they must owe more than what the home is worth, demonstrate the house cannot be sold for the amount owed, and suffer from a legitimate financial hardship that makes the mortgage unaffordable.

The next step in the short sale process is to assemble a short sale package. This package will include such things as a financial statement showing monthly expenses, income documentation, bank statements, tax returns, a listing agreement, purchase agreement, an estimated HUD statement and a financial hardship letter.

If the home is sold as part of a short sale, there will be a difference between the amount owed and what the bank collects. This is called the shortage or the deficiency. Sometimes this deficiency may be negotiable. Some banks will seek a promissory note for the deficiency, meaning that the seller may be responsible to pay the difference between what the home sold for and what is owed to the lender. Some lenders might choose to file a collection or a judgment for the amount owed. The seller should be certain that any amount of debt, or release from debt, is received in writing. If the deficiency is forgiven, the lender can write off the shortage with the IRS, which means the seller may be responsible for paying taxes on the amount of the deficiency. However, the Mortgage Debt Relief Act of 2007 generally allows taxpayers the potential for relief from tax on mortgage debt forgiveness.

A short sale will affect the seller’s credit score. To minimize the effect on a credit score, sellers should avoid making late payments on their mortgage and work with the bank to report the sale in the best possible manner.

We are not a law firm, nor an accounting firm, nor a credit repair organization. For advice regarding potential tax liability or credit scores, please consult a tax attorney or an accountant.

Brian Morris

Senior Loan Officer

Prospect Mortgage

Cell: (919) 627-7077

Email: brian.morris@prospectmtg.com

Short Sale: The Basics

Your Communication is based on your Attititude. Your attitude determines your Results. Your results can be Excellent.

Mortgage Manafesto http://ping.fm/SmDfm

Knowing the differences between a Broker, Banker and Correspondent Lender…

You will hear the following terms when shopping for a mortgage. I have been asked about these terms a thousand times since I transferred companies recently. Those terms are broker, mortgage banker, and correspondent lender. Knowing the differences gives you a variety of options in the marketplace. I mentioned in a previous blog that choosing your lender comes down to the relationship that you build with the loan consultant. Just because I believe this to be true doesn’t mean that your need is the same.

Broker is an individual in the business of assisting in arranging funding or negotiating contracts for the client but who doesn’t loan the money himself.


Brokers to me are a lot like a basketball scout. They are either charged a fee or receive commissions for matching the team to the player. These fees are required to be disclosed. They have plenty of flexibility to shop around for the lowest rate but the fees might be higher. They are freelance agents and not employees of the companies. Many of services you see advertised online are brokers. Which is one of the reasons that this industry makes up around 50% of the lending world today.

Mortgage Banker is an organization that makes real estate loans that are then resold to investors. The mortgage banker's income derives from the fees it charges to originate and service the mortgages. Sale of the mortgages gives the mortgage banker more funds to use in making additional loans

These Banks are state licensed, have lines of credit to fund loans and their own employees. These employees are given rates sheets each day to show the cost of loans. Employees have little room to negotiate since they have to have money to keep the doors open. They still offer competitive rates and a wide variety of products. The difference is that all of those products come from the same institution. The perk is that you know the institution that is making the decision and can offer you outstanding customer service after closing.

Correspondent Lender is a lender who delivers loans to another (usually larger) lender against prior price commitments the larger lender has made to the correspondent.

These lenders have the option to hold your loan in their own portfolio or sell it to the secondary market. To me this offers you the best of both worlds. You deal with the actual decision maker for loans within their portfolio. You would deal with the same loan associate no matter the direction your loan needs to go. It is usually sold 2-3 weeks after closing since they typically have a smaller line of credit. They are usually sold to the larger lender (sponsor) in large lumps instead of one by one. The sponsor acts like the mortgage banker.

I am currently employed with Prospect Mortgage who is one of the largest correspondent lenders in the country. They state that the “business model was formed during the challenging market, so know what it takes to survive and meet customer needs during these tough times.” This business model has made them be able to service around 70 percent of the loans. http://www.myprospectmortgage.com/company_profile.asp

Knowing the differences between a Broker, Banker and Correspondent Lender…

Easter bunny http://ping.fm/Oixn7

Moving box meal in 20

If you just closed on your mortgage and the moving van has just left then I am sure the family is hungry. You ask yourself what to eat?…. You think of all the fast food you have eaten over the past week and decide you need something homemade. Then make a quick Szechuan Black Eyed Pea Salad. I have made it several times over the years. I discovered it in my Vegetarian Times Magazine. It is also great wrapped up in a tortilla.

It is the perfect combination of ingredients that requires little preparation and money. It only requires you to find the following items in the kitchen boxes ( I am sure that you have it labeled.)

Kitchen items needed: Cutting board, knife, can opener, bowls, strainer and forks.

Ingredients required:

2 – 14 oz canned black-eyed peas, rinsed and strained

1 medium green pepper (any pepper will work)

½ cup chopped red onion

1 jalapeno Chile seeded and finely minced

1 clove of garlic- minced

1 avocado- cubed ( 1 cup)

2 TBS Lemon Juice

¼ cup olive oil

3 TBS red wine vinegar

1 TBS Szechuan sauce

2 tsp sugar



Toss together black-eyed peas, bell pepper, onion, jalapeño and garlic in a large bowl. Toss avocado with lemon juice in a separate bowl (if you only have one bowl then you should be fine adding it all together). Add avocado mixture to black-eyed pea mixture.

Whisk together oil, vinegar, Szechuan sauce and sugar in bowl used for avocado. Add black-eyed pea mixture and toss to mix.

Last step: flip over that empty box and use as a table.

It is even healthy for you… Per serving (3/4 cup) 223 cal, 5G prot, 14 G total fat, 20 G carb, o MG chol, 438MG salt, 6G fiber, 3 G sugars
http://www.vegetariantimes.com/recipes/11122

Moving box meal in 20

Property Flipping Mortgage Manafesto of 2010

Property flipping is not the actual flipping of a house…. It is by definition a quick sale of a property for profit. These houses are usually ones that need renovations so they are sold for cheaper to the investor. These investors usually can do the renovations needed and then sale to a buyer for a profit. Unfortunately most of these homes are usually the ones in foreclosure.

Foreclosure: A legal process by which the lender forces a sale of a mortgaged property because the borrower has not met the terms of the mortgage.

There were many Investors taking advantage of this situation. They were fixing the minimum repairs needed to make a sale which made the Department of Housing and Urban Development (HUD) step in. In 2001 HUD saw what was happening and created a new guideline. There was now going to be a time limit the investor had to hold onto the property in order for the new borrower to obtain an FHA loan. During those times there were thousand of products out there to choose from, home values were appreciating and credit scores were higher.

The game and rules have changed since 2001. Today there aren’t as many products for consumers; there are more homes in foreclosure, depreciating values and lower credit scores. This in turn has made the FHA product a very popular one.

HUD saw the need for a temporary change so Secretary Shaun Donovan announced that they were suspending the 90 day flipping rule. They were setting a temporary waiver in place that was good for one year. This waiver would allow the quick resale of foreclosed homes where the activity is high. I read thought the guidelines and believe you should too. This waiver will help tons of people but it does have very strict conditions and guidelines to ensure that there are no predatory practices. Take a look at the HUD website for more details of this policy and to view the actual waiver requirements. (http://www.hud.gov/)

http://reitips.com/fha-property-flipping-waiver/ ( check out this great video)

Property Flipping Mortgage Manafesto of 2010

April Fool's Day

Watch out for all your friends and colleagues today. Today is April 1st or April Fools. I began reading some really good pranks online today.  I began wondering  like many of you how this celebration begin?  I mean today is the today that is celebrated by pulling pranks on people. In fact it makes you doubt everything today.

 I just read that pranks started centuries ago. The April Fool's day and name was probably began on April 1st after a poem.  This day is observed and celebrated in many different countries.  To me this just goes to show that we are out to celebrate/ observe anything especially when it had to be translated from the Dutch language.  http://www.museumofhoaxes.com/hoax/af_database/permalink/eduard_de_dene/


 There are funny pranks, mean pranks and just simple pranks. Remember it is named after pranks so be sure not to harm anyone. I remember growing up and my mom doing icecream with carmel sauce as mashed potatoes and gravy.A link for the above photo from Family Fun is listed below. It is another Fool for the kids that is suppose to look like Cashew Chicken Stir Fry. I read that today is a good day to propose to someone. If they say no you can say April Fool's and if they accept then you are ok! I am sure many of you have come out with some great pranks today. I  I would recommend watching out today but if you need a  good laugh or some ideas then just check out the  following website. I would love to hear about some good pranks.

http://www.museumofhoaxes.com/hoax/aprilfool/
http://familyfun.go.com/april-fools-day/april-fools-day-recipes/cashew-chicken-stir-fry-715005/

April Fool's Day

Breaking it up in Layman's terms

Rates, Mortgage Backed Securities.... what to do? Are you in the process of buying a house. If so, then I am sure you have heard these terms. The government is finally pulling out of mortgage backed securities at the end of the first quarter. The first quarter ends tomorrow, March 31st. The government bought mortgage backed securities in January 2009. This was something that had not been done in the past. They were due to pull out in May 2009 and then December 2009 so I believe the end is in sight. I don't believe that they are going to extend it again. In fact I heard that they might be selling them instead of being an investor. I don't see another large investor signing up anytime soon to keep our rates down.
If you do speak with your lender in the morning then you might want to weigh out the extended locks option if you are building a house or need a lock for 90-180 days. You have to ask your lender how long it would take to break even. Extended locks usually cost extra money depending on the lock terms. I don't believe that rates would climb higher than 5.5% but I do think they will start climbing up quickly.  I don't see the rates climbing even close to as high as they were in the 80's. Today is your day to take advantage.

Breaking it up in Layman's terms

Want a new appliance?

Calling all NC residents… Have you heard what is happening April 22nd –April 25th? It is the Cash for Clunkers

The NC Energy Star Appliance Replacement and Rebate Program has put millions of dollars to help stimulate the economy, cut energy and reduce greenhouse gas emissions. You will get a 15 percent rebate on top of the manufacturers offer on energy star rated appliances. You will be able to purchase different appliances but just not multiple appliances. The article states that a new Energy Star rated refrigerator uses half the electricity that the same refrigerator built before 1995 uses. That is a lot of money in your pocket too!

Check out the website http://www.energystar.gov/index.cfm?fuseaction=rebate.appliance_rebate&state=NC

Want a new appliance?

Swiss Cheese is the only item you buy holey

I want to start by saying that Swiss Cheese is the only item that is acceptable holey. Nobody wants holes in the ground, new house, shoes, groceries, tires or the home buying process. I have talked about the initial interview process for you and the lender but never about a complete application. As a lender it is important to roll up the sleeves and get all the personal information. The lender has one of the most important roles because if there is a hole in your application/ story then underwriting could decline it. It is sometimes all about the proposal. Everyday buyers get frustrated for us digging into their personal life but if we don't upfront then the file might not succeed. You have to remember that all information will have to be documented even if you have told your lender. There are a wide range of people that will pick up your file especially if your loan is sold. If the whole company missed a detail then it might not be able to be sold. Keep this in mind when you get that initial interview because ALL the details are very important.

A good example of the above situation would be if you have a house to sell, living at a temporary residence or aren't moving down at the same time as your spouse and are the main source of income. These details really do matter.

Swiss Cheese is the only item you buy holey

What does Value mean to you?

What does value mean to you? Have you ever thought about how value is communicated to you as a buyer? customer? friend? I read an article the other day that spoke about consumers being resource rich and time poor. I cannot think of a more true statement. If you watched the super bowl then you saw the Google commercial. I mean you can search anything. It is the first place to turn. In fact with an iphone you can now turn the lights off or turn it into a universal remote. Both of these examples are how companies are portraying resource rich and time poor. There are thousands of companies that are beginning to really catch on to this philosophy. If you have decided to buy a house or even thought about financing then I am sure you have already used your resources. It doesn’t mean that you have more time on your hands even if it is the biggest financial investment. I believe that a buyer should look at the value that a lender or agent can offer you. Value can mean different things to people but a company can truly give you value by offering choices and convenience.

If you didn't see the Google Ad then check it out http://bit.ly/b5RXZL

What does Value mean to you?

Listening to the professionals

Have you ever been told that everything is negotiable? I want you to think about this the next time you are in a real estate transaction. When we negotiate it is usually because we think it costs too much or need to save a penny. In real estate there are a lot of people with services that require payment. This list could include the seller, listing agent, buyer's agent, broker in charge fee, buyers, mortgage lenders, appraisers, attorney, all type of inspection consultants, and banks. All of these people have one thing in common with you and that is to support their family and pay their bills. All of these industries also have more involvement than any one buyer or even another part of the transaction can understand. We have to trust in this transaction that we are getting the best deal and you have hired the hardest workers to support you. In negotiated with people you don't always get their best work. You might get some money shaved off the top but you might also go to the bottom of their list. This in turn could cost you more money in the long run because it takes extra days to sell. If you are in a contingency offer and are locked in with your mortgage lender then it might cost extra money to extend your lock. Realtors and mortgage professionals devote hours of time to you. In today's market that takes some really awesome people that are worth every penny. I advise that you ask for clear communication and listen to what professionals can do for you rather than trying to get the best deal.

Listening to the professionals

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!