Go With Your Best Option - Sleepless in Sturbridge

I met with a young couple, this morning, for my initial interview... as new buyers.

I asked them to bring me their questions... I upheld my legal obligation to explain 'agency' to them, and then answered all of their questions.  They had a lot of questions about the purchasing process.  How does it work, how long does it take, what is earnest money, will we need an attorney, what about inspectors?

Start to finish how long does it take from offer to close, when do we take possession... you get the idea... lots of questions... GOOD questions, this young couple had done their homework, they asked great questions, listened to the answers, absorbed them and understood them.

And at the end of our almost 2-hour meeting, they were well informed, legally disclosed, had an understanding of agency in Illinois, and how the process would work. They were a little glassy-eyed, and I could tell a bit overwhelmed.

They said "Wow... there's a lot involved in this process.  I didn't realize there was so much to do.  All we want to do is 'Buy a House', we had no idea it was this involved.  We're so glad to have chosen a knowledgeable Realtor. Someone we trust."

And I explained them that my job was to make sure that the process went smoothly, and they were fully informed all the way... no surprises (I hate surprises).

... and I thought to myself... you know... there really IS a lot involved in this process... and it really IS good to have a knowledgeable guide.

We do important work, don't we? God bless us all, everyone!

This is not a representation of a specific couple from this morning,
this is more a of an aggregation, a compilation, if you will, of many different buyers.

ALAN MAY, Realtor®
Specializing in Evanston Real Estate and North Shore Real Estate
Coldwell Banker Residential Real Estate, 2929 Central Street, Evanston, IL 60201
847.425.3779      Cell: 847.924.3313      Email: Almay@aol.com

Evanston Real Estate & North Shore Real Estate

Do not copy the content of this blog, for use elsewhere, without first contacting the author for permission.  Reblogging,
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I'm expecting controversy on this post....you can't see me, but I'm writing this fully "braced."

I am not passing judgment on this....but I've been hearing about some great loan modifications at unbelievable interest rates. The interesting thing is that the people getting them probably don't really NEED help to stay in their homes.

This week I was at a Christmas party with friends and ended up talking with a group of people who were all getting loan modifications. They were openly talking about "beating the system" and the great rates they had achieved....or hoped to. Apparently this is a trend in some of our neighborhoods.

The people I talked to were employed and solvent, but had higher debt ratios than lenders like and bad home values....were either upside down or close to even. They could not get a traditional refinance at an A+ interest rate. These "savvy" people were using the loan modification process to get 4%-ish interest rates on jumbo loans that they could not get on the regular market. Sure....they are sacrificing their credit scores, and they knew it. But one said "everyone's FICOs are taking a hit, so we are probably still better risks." Maybe that's true.

The best I heard was a 2% fixed rate for 5 years, then gradually getting to a 4.75% for the life of the loan....for a $950,000 loan amount and a property value of $750,000. That's a great refi!!!

I wonder how many of the success stories we hear claimed by banks are these refi-loan mods? And as one of my friends said "hey, a couple years ago the game was no-doc loans, now the game is loan mods....so we play the game in front of us." Wow....

 

Karen Fiddler
Broker/Associate
The Fiddler Realty Team/eVantage Real Estate
Lic # 01494165

www.searchfororangecounty.com

Serving all of Orange County, California Real Estate!
Buyer's Agents, Listing Agents, Short Sales, REOs, Equity Sales, Investors

SEARCH THE MLS HERE

RE/MAX of New England Teams up with Prospect Mortgage

to Better Service Clients in 2011

                                    Prospect to be the preferred mortgage lender for RE/MAX

 

Natick, MA - December 27, 2010 - RE/MAX of New England has recently entered into a new partnership with Prospect Mortgage, one of the nation's largest independent residential retail lenders. RE/MAX has signed a marketing agreement with Prospect Mortgage, allowing the mortgage company to be the real estate brand's preferred lender, increasing both companies' overall visibility through shared branding and messaging.

RE/MAX of New England's Executive Vice President and Regional Director, Jay Hummer, is confident that the partnership between the two companies will be beneficial to both businesses."Prospect Mortgage has a legacy of successful joint venture relationships with real estate companies, and is well respected in our industry," said Hummer.  "We are starting this New Year off with a trusted partnership that I'm confident will turn into a valuable business relationship for both RE/MAX and Prospect Mortgage."

Prospect Mortgage ranks among the top mortgage companies nationwide in closed loan volume with New England branches in Londonderry, NH; Warwick, RI; Connecticut branches in Trumbull, Branford and Glastonbury; and Massachusetts branches in Dartmouth, Wakefield, Newton, Boston, Andover, Worcester, and Raynham. Prospect has over 200 branches nationwide.  "We are a top ten FHA lender nationwide and number six in loans for residential purchases. In New England, we are among the top five purchase lenders," said Kevin Jenkins, Senior Vice President and New England Regional Manager for Prospect.

Prospect Mortgage is also a leader in renovation lending, conventional loans, and REO financing. Prospect processes, underwrites and closes all mortgage loans locally. It utilizes local appraisers and law firms in order to have experts with deep knowledge of local markets to assist in the closing home loan purchase transactions.

Backed by Sterling Partners, a leading private equity firm with $4 billion of capital under management, Prospect is based in Sherman Oaks, CA. Known for its proprietary systems in technology, marketing, sales management and recruiting, Prospect is focused on generating the fastest loan closings in the industry through its Perfect Loan Application initiative.

 

About RE/MAX of New England

Since its inception in 1985, RE/MAX of New England has grown to over 220 offices and nearly 3,000 sales associates throughout Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont, providing residential and commercial real estate. Read more about the industry at the RE/MAX of New England blog at www.remax-newengland.com and follow us on Twitter at @REMAXNE. The RE/MAX web site is www.remax.com. RE/MAX is proud to help raise millions of dollars and support charitable organizations like, Susan G. Komen For the Cure and Children's Miracle Network.

 

 

About Prospect Mortgage

Headquartered in Sherman Oaks, CA, Prospect Mortgage is one of the largest independent residential retail mortgage lenders in the United States. It is backed by Sterling Capital Partners, a private equity fund group with over $4 billion of capital under management.

 To learn more about Prospect, please contact Wendy Burdett @  Wendy.Burdett@prospectmtg.com, or reach me on my cell at 508-380-7697.  I am in the local Worcester MA branch. My office phone is 508 459 3621.  I have been in the mortgage industry for more than 26 years.

6 Tips For a Smoother Mortgage Transaction

After closing hundreds of mortgage loans I have seen the same basic issues pop up on many transactions.  Below are five things to keep in mind during (and before) your Mortgage process that may make things a little smoother for you or someone you know!

1. Don't Move Money Around Without Documentation During the loan application process, we will have to confirm your income and assets listed on the application you have submitted. Moving these funds can create confusion and ultimately result in a huge headache, indefinitely slowing the process down. If you must move money around remember that we will need to see bank statements showing where the money went and where it came from.   

2. Document Large Deposits and Deposit Cash EARLY One of the biggest enemies of a smooth loan transaction is the large deposit/ cash deposit. We will need to verify all sources of money for the transaction. This includes all large deposits into both checking and savings accounts. Be prepared to document everything. Keep records of everything.  Sometimes you may have a lump payout of a retirement account or sale of your baseball card collection. You may have a yearly bonus that is deposited. Save everything that is involved with those transactions. Your funds need to be in your account for 60 days in most cases so mysterious deposits don't cut it.  We need to show where most deposits came from. If you are depositing cash then it needs to be "seasoned" 60 days and not show on your current bank statement as a deposit .  Don't wait until your offer is accepted, deposit the money NOW.  

3. Don't Charge Up Your Credit Cards Or Make Large Purchases Many times credit documentation will expire during the loan process and new credit will need to be pulled.  If you have incurred debt since the initial application it WILL be counted against your debt ratios and you may no longer qualify.  If you have any pending purchases let your loan officer know.  This can be anything from buying appliances for your home to buying a new car when your lease expires.   

4. Be Sure To Have Letters of Explanation for EVERYTHING The current lending environment is one of document, document, document.  It may seem like we are asking for everything except your 5th Grade Report Card. Well, keep that too..  Letters of explanation make it easier to have your loan approved and you should have them ready for: any period of time where your income was reduced, bankruptcies, foreclosures, credit pulls in the past 90 days, property sold in the past year, name changes and frequent job changes.  There is nothing you can hide from an Underwriter.  They find out everything.  Giving letters of Explanation up front can turn a questionable loan into a solid one.

5. Be sure to keep updated copies of your Bank Statements and Paystubs.
You will be asked for them multiple times.  Make sure you have all pages of your bank statements each month and copies of every paystub.  It will make things less stressful for you later.  

6. Be Sure to Apply Early Our final step to making your mortgage process run smoothly is to apply early.  Don't wait until you have found a home and are ready to put in an offer.  We are thrilled that you found a home at 9:00 on Sunday Night and want to to put an offer in!  But if we are not immediately available then it seems like quicksand for you! Prequalifying early and getting your required documents in at the start of your process can make a tough mortgage alot smoother!  

If you are glued to your lender during this process and asking him every time you fill up for gas then you are moving in the right direction!  Asking questions during the process may seem like a pain, but those 5 minute conversations could save you MONTHS of headaches during your transaction.

* Mortgage News, Knowledge and No-Nos! *      * KEITH PENTZ *      * PROSPECT MORTGAGE *

Keith Pentz Senior Loan Officer/Certified FHA 203k Specialist Prospect Mortgage- Greater Worcester 324 Grove Street, Worcester, MA 01605 Apply 24/7 @ www.prospectworcester.com 774.232.1690 cell!