Last day of the month…

A few loans funded just before the monthly cut-off, several loans didn’t fund and will move to closing in May.  Unfortunately it looks like low appraisals are threatening to kill two of my larger deals that I thought were done and in the bag.

Overall I funded $3,000,000 in loans for the month of April and hope to fund close to $4,000,000 in May.

My goal is to get to point where $5,000,000 in monthly fundings is the norm, not the exception.

At $5,000,000 a month I feel I will have all the perks of being a top producer; however, at this work load I would still be able to give my clients the individual attention they deserve.

To be honest, once the last loan for this month funds around 11 a.m., I’ll be taking the rest of the day off to catch up on some personal appointments.  The negative side of being a commissioned employee is that at months end, I tend to neglect my health, my personal paper-work, and my family… this is the part of managing my career that I’m still working on.

As always, if you need information on starting a new loan for the purchase or refinance of your home, contact me at  TrustYourLender@gmail.com

Financing a short sale or REO-

One of the common errors buyers make while looking for a ‘deal’ on property in today’s market is to assume that buying a short sale or REO property is going to get them the most home for their money.

While there are definitely deals to be had in the shorts sale and REO market, the challenges of obtaining these properties is sometimes not worth the savings.

Additionally, traditional sellers and listing agents know that they are competing with these non-traditional types of sales.  Therefore, most properties that are being sold by traditional sources will also be priced competitively. Continue reading »

What is a point?

A quick update on conforming, 30 year fixed rate mortgages under $729,750.00

Rate right now rates are hovering at 5.250% at NO points and approximately 4.875% at 1 point.

This rate takes certain credit assumptions and qualification factors that vary from bank to bank.  For example, Bank A may offer their very best rate to clients who have a credit score over 740; while Bank B will extend the same great rate for any borrower with a credit score over 680.  Some banks even treat a 30 year fixed mortgage as a pass / fail type of situation; if you qualify for the loan regardless of whether your credit score is 680 or 780… you get the same rate.

A question I get a lot is, “Why are your rates so much higher than the 4.50% I keep hearing about in radio and television advertisements?”… Continue reading »

Quick Tip #2 – Great news…

As of today the conforming loan limit in Los Angeles and Orange County was increased to $729,750.00

This means that you can get conforming rates and the best pricing available on loan amounts up to $729,750.00

Although this was announced months ago, and the FHA had already updated these loan limits; most banks didn’t role out the increase to loan limits until today.

Are you a real buyer?

One of the many points I will try to address through this blog is that buyers should only be working with a lender they can trust.  However, trust is a two way street and must also be earned by the client.  A question that all house hunters should be asking themselves is  “Am I a real buyer”?

What I mean by a ‘real buyer’ is as follows.  Are you the type of buyer who is going to find a local real estate agent to work with, apply for a loan,  and also get your lender all the documentation they need up front in order to get a loan approval?  Are you the type of buyer who is going to actually make an offer if you find a property you love?  Furthermore, are you going to be committed to that deal and work towards closing escrow?

For reasons I have yet to precisely identify, people like shopping for houses without any intention of actually buying a property.  This leads them to shop for a loan which they have no intention of ever obtaining.  All this work combines to create a sluggish, and even overwhelmed real estate buying process.  This bogged down system penalizes those buyers who are serious about home ownership.  Continue reading »