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
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. Read the rest of this entry »
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?”… Read the rest of this entry »
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.
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. Read the rest of this entry »
With interest rates so low on secured and unsecured debt… it’s tempting for clients to borrow money from credit cards, lines of credit, or IRA loans in order to fund their earnest money escrow deposit and/or their full down payment for the purchase of a home.
Before you do this, PLEASE check with your lender. Many loan programs do not allow for borrowed funds to be used as a down payment source. Gift funds are usually OK… but funds cannot be borrowed. Read the rest of this entry »
An FHA loan is a government backed security which allows an entire spectrum of borrowers to get into their primary home for less than 20% down.
Contrary to popular belief, an FHA loan is NOT just for low income housing projects, buyers with bad credit, or borrowers who make very little money.
In fact, you can still take advantage of an FHA loan regardless of the amount of money you make, where you are going to live, or what your credit score is. I’ve done FHA loans for clients with 640 credit scores and 820 credit scores. I’ve done FHA loan for individuals living on a fixed social security income of $1,700 a month, and I’ve done FHA loans for investment bankers making $40,000 a month. Although the current FHA structure only allows for a max loan amount (in Los Angeles County) of $729,750.00, I’ve done FHA loans for clients in both Compton and and Beverly Hills.
An FHA backed loan is truly is a great product for any client seeking to put down less than 20%… Read the rest of this entry »
Today is a pretty good day. One of the hardest loans I’ve ever gotten approved is signing loan documents today.
Thanks to an FHA backed loan which was fully underwritten and poses limited risk to the bank; a client with 3.5% down, very troubled credit, and $100 in her checking account gets to own a house by Friday.
It took three months, a very understanding realtor, the continued patience of all parties involved, and a $35,000 gift from the clients family… but in the end, the deal closed.
The first step was to get a gift from the family large enough to pay off all of the clients unsecured debt. By paying off a total of $10,000 in credit card debt, and closing the correct accounts, we were able to raise the clients credit score by over 100 points. This alone made the underwriter feel much more confident about the deal.
Second, we showed that the client made more than enough money to service the debt of the new house. We explained that the borrower had not been a good saver due to her student loan obligations and unsecured credit card debt which had recently been paid off in full.
I feel good that it’s a solid loan that was fully underwritten, poses little risk of ever going into foreclosure, and allows a young lady to become more financially secure. Furthermore, the client now gets to keep more of her earnings due to the tax benefits of owning versus renting.
Today is a pretty good day.
Have you ever wondered why it’s really difficult to get in touch with your lender at the end of the month?
In the mortgage business, both for purchases and refinances, closing on deals always seem to get pushed to the end of the month. There is no perfect explanation, it’s just the way it works.
I’m sure it has something to do with commission cycles, and lenders wanting to close out as much business as possible before the 1st of the month. I also have noticed that Realtors generally don’t mind if a purchase transactions closes a few days late, but the mental hurdle of closing a “month” late is just too much to handle. Closing in a different month than Realtors intended, even if it’s only by a couple of days, really seems to drive them nuts.
I have actually had deals that ran three weeks late to close due to an array of borrower and lender issues. However, if the deal was delayed from the 5th of the month, till the 25th of the month, I rarely hear a complaint from the parties involved. However, with the flipping of the calendar page, the perception of being “late to close” changes dramatically. Without fail, if I have a deal that is suppose to close on the 28th, but get’s delayed till the 2nd of the following month, I can always expect a call on the 1st of the month from the Realtors on both sides, the escrow agent, and the clients. Kind of funny. Read the rest of this entry »
Here I am, trust your lender.com, a new blog from an industry insider talks about the good, the bad, and the ugly of the current state of mortgage lending.
A ten year originator of loans for two different banks and two different brokers, half of which are now gone; Scott hopes to inform the masses about what currently makes the industry tick.
What is a point? What is an APR? What is a mortgage broker? What isn’t my lender telling me? Why can I never find those magic rates in the 4.00% range that I see advertised on late night television? Why does the closing statement I sign at escrow look nothing like what I was quoted by lender at the beginning of the process? What can I afford in a monthly payment? Should I buy a new home? Should I sell my existing home? What is Private Mortgage Insurance? Who is the FHA, Fannie Mae, and Freddie Mac? Why is my first payment different than my last payment? Should I refinance my loan? Can I refinance my loan? Should I modify my loan? Can I modify loan? Who is The FED, and why should I care? What is Obama and the administration really doing to help the lending markets? Was I taken advantage of on my last loan? If so, what can I do?
These are the types of questions and concerns that will be addressed in this blog. From time to time I will probably stray off topic and get into one of my general rants about taxes, the Federal Government, the California State Government, and/or general business follies.
Enjoy.
