National Financial Reform Act to Make Credit Scores Available to Consumers

If the President signs the Financial Reform Bill as is, consumers will have access to not only their credit reports free of charge, but their scores as well. Once per year you can get a free copy of your credit report from the credit bureaus or a sponsored site like www.annualcreditreport.com . You may soon be able to add your scores to your report for free.

I believe this is a step in the right direction to keep the agencies that govern our lives transparent and in full disclosure of those whom they have control over. With so much collusion going on in our government and our financial infrastructure happening behind closed doors, transperency has never been more important to us.

-Brad-

WWW.HeritageHomeLoans.Org

Don’t Know All The Answers

  Do you pretend that you know the answers at work when you really don’t?  If you have, then you know it takes a lot of energy to pretend to know when you don't.  And most people can see right through the veneer of what you’re saying, usually because there’s no substance behind it.

  People pretend they know answers when they don’t for varied reasons.  Some people are insecure about looking foolish or stupid.  Some people want to be respected.  Some people want to be seen as problem solvers.  Whatever your reason for pretending to know more than you do, though, it’s a good idea to stop participating in something that can undermine your credibility with others when they find out you don’t really know what you’re talking about. And in our business, credibility is sometimes the most important thing we can convey to our clients. This makes them feel comfortable doing business with us and builds trust in our relationship.

  Use your energy instead to find the answer to what you don’t know.  Start by admitting it:  Say simply, “I’m not sure what the answer to that is, but I’ll try to find out.”  Then follow through with your promise of looking into it.  Or accept graciously the information others are likely to offer you when you admit up front you don’t have all the answers.  You’ll find that this takes less energy, is more rewarding, easier – and will give you the reputation you desire as someone who knows how to find out whatever needs to be known. We have all heard this but implementing it into our everyday life and business is the trick. One trick I would suggest is to get a smart phone with a reliable internet connection, like a Blackberry, Palm, or iPhone. This way, you can find the answer quickly and it shows your clients that you are prepared and dedicated to your service.

“If it is not right do not do it; if it is not true do not say it.” -Marcus Aurelius

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How to Conquer Your Shyness and Feel Comfortable Around New People

Even the most successful people have moments when they feel shy and uncomfortable.  For most of us, meeting new people is difficult, and making conversation with someone we’ve just met can feel like getting a tooth pulled.  The good news is you can overcome and control your shyness.  Here are some strategies for becoming the life of the party – or at least not the wallflower:

Explore the causes.  Shyness is usually caused by excessive self-consciousness, a negative self-image, or excessive preoccupation with yourself – or a combination of all three.  When you’re feeling shy, analyze your thoughts and emotions to find out what’s holding you back.  You’ll be better able to address the problem when you understand what’s behind it.

Underline your own strengths.  Instead of thinking about what you can’t do in social situations, remind yourself of what you’re good at.  Most of us usually don’t have trouble talking about subjects where we feel confident and experienced.  Focus on these areas instead of any flaws you think you may have.

Focus on other people.  Ask questions that let other people talk, and encourage them to open up and share their opinions.  You’ll be less worried about saying something wrong, and you’ll probably find enough common ground on which to build a real conversation.

Practice greeting people.  Make a point of saying “hello” to the people you see every day – the bus driver, the barista at your coffee shop, your coworkers, and so on.  Once you get into the habit, you’ll find it easier to smile and offer a friendly greeting to the people you meet in social situations.

Look your best.  You don’t need a complete makeover, but you’ll feel more confident if you know you’re presenting yourself well.  Work with someone you trust on wardrobe and groom

ing issues.  Don’t overdo it – just be sure you’re appropriate for the occasion.

Good Luck out there!  -Brad Patshkowski-

WWW.HeritageHomeLoans.Org

   June 6th is National Cancer Survivors Day

I have had several friends and family diagnosed with cancer in way way or another. Some did not make it, some did, and others are living with it. Chances are someone you know is a cancer survivor, “survivor” defined as “anyone living with a history of cancer – from the moment of diagnosis through the remainder of life.”  Sunday, June 6 is the 23^rd annual National Cancer Survivors Day, a worldwide celebration of life held in hundreds of communities throughout the U.S., Canada, and other participating countries.  It was the brainchild of Richard Bloch, a co-founder of H&R Block and cancer survivor himself, who wanted to demonstrate that a diagnosis of cancer is not an automatic death sentence.

 The non-profit National Cancer Survivors Day Foundation (www.ncsdf.org) supports hundreds of hospitals, support groups, and other cancer-related organizations that host National Cancer Survivors Day events in their communities by providing free guidance, education and networking.  Its primary mission is to educate the public on the issues of cancer survivorship in order to better the quality of life for cancer survivors.

Visit www.ncsdf.org to learn how to honor these survivors and better their lives.  -Brad Patshkowski-

WWW.HeritageHomeLoans.Org

Tax Credit Fever!!!

  So...the end of June is fast approaching, and the last of the buyers who wanted to take advantage of the First Time Homebuyer and Move Up Buyer Tax Credits are praying that their loan funds before the 30th. I have a few questions, and some advice from the perspective of a Lender.

First...Advice:

1. As a Buyer or Realtor involved in a transaction where a tax credit is involved, be very diligent in your correspondence with the lender. As the end of the month nears, some Lenders may run into a capacity issue when trying to fund all these loans at the same time. This may cause delays in funding that could push the closing until after the 30th, hence negating the tax credit eligibility. Not to mention the amount of paperwork that has to be filled out, reviewed, reviewed again, funds wired and deeds recorded. If it is a domino transaction where the purchase is contingent on the sale of a home, then you have to make sure you are talking to both Lenders and agents involved to make sure there are no delays.

2.  If at all possible, try to get your clients in to sign early. Most Lenders will take fundings on a first come first serve basis, especially in this unique circumstance. We usually try to prioritize fundings on a need basis, but in this situation this will likely be impossible since everyone needs the same things on the same days.

3.  If your buyer was depending on the USDA Rural Development Program to purchase their home, and were not able to get it done before USDA funds ran out, USDA has had an injection of money from the federal government to keep the program afloat. However, there have been some changes in the program that have to be followed in order to fund loans under the new guidelines including an increase in the Guarantee Fee and new Commitment Letters need to be issued before a Lender will fund the loan. So again, eluding back to my first advice, contact the Lender and make sure everyone is on the same page to prevent delays.

Next...Questions:

1. What do you all see as possible ramifications of a purchase getting delayed past the June 30th cutoff date where the buyers may have borrowed their down payment from a family member with the caveat that they would be paid back after they received their tax credit? Your answers could be legal, personal, or business related.

2.  Do you think the Govenrment should have extended the credits at least until the end of the year instead of stopping them in the middle of what is historically the bussiest time for home sales?

3.  What do you see is going to be the trend in home sales beginning August?

I truly believe this is a time for us as Agents and Lenders to really show what we are made of and take advantage of an opportunity to show our clients how hard and well we work for them. If we do it right...I think that referrals should naturally follow.

Good Luck out there!!!  -Brad Patshkowski-

WWW.HeritageHomeLoans.Org

                                           The Loan Process

So, you have applied for your loan and now you are sitting by the phone wondering, "what is going to happen next?"  A lot of people, don't really know what goes on when they apply for a loan.  Well let's demystify the process so you can walk away from the phone and enjoy your life!

First thing is you have found a Loan Officer you like, or were referred to by your Agent, and have gone through a full Loan Application, usually called a 1003 (Ten-O-Three).  You have disclosed every piece of vital information you have and feel comfortable enough to proceed with the loan process.  Here is what happens next:

1. You will be asked to sign disclosures such as a Borrower Authorization Form which is used as permission to pull your credit.  The Officer may or may not go over the details of your credit report with you.  I make it a point to make sure the information enclosed is accurate and up to date before my clients leave my office.  This prevents hang ups later in the loan process.

2. Your loan is then polished and usually submitted through an automated underwriting engine, either through Fannie Mae's Desktop Underwriter for Conventional and FHA/VA Loans, or a lender specific website.

3. The approval comes back and a Good Faith Estimate and truth-In-Lending form are sent out to the Borrower (s) with the terms and estimated closing costs of the loan within 72 hours of the application.

4. Assuming the home has been chosen...the Title Report, and Appraisal are ordered and an Escrow account is opened. The Appraisal usually entails a deposit by the Lender.

5. After an appraisal and title search are completed, the loan file is then submitted to the lender for underwriting for approval.  Any conditions that need to be fulfilled are then requested at this time. i.e. check stubs, account information, verification of employment etc...

6. The client is notified of the condition of their loan and asked for any final documentation needed to close the loan.  Then Closing Documents are ordered and all pre-close conditions are satisfied.

7. Documents are prepared by closing company and funds are allocated in Escrow.  When this is finished, an appointment is made with the borrower to come sign documents.

8. The Escrow company sends the completed package to the Lender for final review.  The Borrower has a three day rescission period where the transaction can be voided at the borrower's request.

9. The Lender does one last verification of employment before releasing the funds to the Escrow company.

10. Escrow pays all liens and releases all funds to proper agencies and sends loan fees to the Lender.

                                                        The End! Happy Home Ownership!                                                 

**This is merely an overview of the loan process...if I have missed something important, let me know and I will include it at a later date.  Just don't be too critical, Thanks! Heritage Home Loans

                                                                    How Does Your Credit Rate?

I have done some research as to who in this country has the best and worst credit scores, and I think the outcome will surprise you.  And since I am in a I pose these questions to you.  First...what state do you think has the best credit scores of its residence?  Before you look, give me your answer.  Nope, not that one...not that one either...to find out, go to Credit Report Info and look for yourself.

Secondly...why do you think this is the case?  Is it location, industry, or some other environmental factor I have not thought of?  Give me your thoughts and happy raining!

http://www.heritagehomeloans.org

                                                 Get Your Own FREE Credit Report

In today's world...the most important thing you can do for your financial well being is always staying on top of your personal credit situation.  It has never been easier to stay abreast of changing credit, and fix problems that may occur before they become a factor in your credit "worthiness".  With the availability of credit information on the web...and a slew of other credit monitoring services available to the common consumer...there is no reason you should be left in the dark when it comes to information which is so vital to your well being.

So...you are probably wondering how to go about doing this.  Lucky for you I have done some research and here is what I have found.

One of the most common ways you can get a hold of your credit report for FREE is by opting in to any number of websites who offer your personal credit report.  These sites include freecreditreport.com, annualcreditreport.com, experian.com, transunion.com, and equifax.com.  (I would normally link sites I use as resources, but due to the lack of shown ethical standards of these companies, I don't feel right about linking directly to them, sorry.)  You fill out some general information and you can receive your report in a version that is consumer friendly.  The kicker is this...you can not get your FICO score without paying for it.  Now, this is really not a bad deal.  The reason we need to utilize these sites is to correct any changes that are made and make sure the personal and account information is true. 

The other option is Costco.  Yes I said Costco.  For a fee of around ten or fifteen dollars, you can get a copy of your credit report with scores.  I have seen the reports given by Costco and I must say I was impressed.  I compared the report to a Tri-merge report I pulled on one of my customers and the accuracy was surprising.  I would endorse going the Costco route over the Internet for several reasons...but if you just want the info, the Internet is a good way to go.

There is one caveat to using these sites though that needs to be addressed.  When you register for the service...you are likely put on a mailing list for any number of companies who utilize credit bureau's to locate potential customers.  But, there is a silver lining.  Once you have registered to get your credit report, preferably only one credit site...register at www.optoutprescreen.com. This will take you off all lists of companies which use credit bureau information for mailing campaigns.  And the best part about this is your credit score will improve by as much as 20 points in some cases just by registering.  The credit agencies view this as you taking control of your financial portfolio and give you credit by increasing your scores...BONUS!

http://www.heritagehomeloans.org

                                                           What Is PMI and Why Do We Need It?

What is PMI?  PMI is "Private Mortgage Insurance".  This is extra insurance that lenders require to be purchased when the borrower's loan, compared to the value of their home is more than 80% of its value. 

Why PMI? PMI allows more flexibility for potential homebuyers to get more home faster, and for less of a down payment, say 3% or 5%.  PMI insures the lender in case of default from the borrower, which frees up funds which would normally not be available to some homebuyers due to credit, reserves, or other factors that determine a borrower's strength.

Does Every Loan Have PMI?  Most all residential mortgage loans in one shape or another have PMI, whether it is paid by the Borrower, or the Lender.  Government loans such as FHA and VA do not have the same requirements as Conventional Loans.  Since they are secured by the U.S. Government, they can be higher risk, but not need as much insurance protecting the Lender from default.     

How Do I Cancel PMI?  As of July, 29^th, 1999 under the Homeowner's Protection Act, PMI can be canceled only when the mortgage has been paid down to at least 80% of the purchase price or the homes appraised value, which ever is less.  In addition to the value requirements of canceling PMI, the Borrower must not have been 30 late on any mortgage payment for a full year before their request for cancellation, and not 60 days late for the prior two years.  PMI automatically cancels when the loan amount is paid down by 78% of the original amount, or an appraisal is done to determine the value of the home compared to the outstanding loan amount is under 80%.  In addition to automatic cancellation, PMI is terminated completely when the loan reaches the midpoint in its amortization schedule, which for a thirty year mortgage, would be the 180th month.   

Who Cancels My PMI?  Under the Homeowner's Protection Act, the lender must annually send a statement concerning the condition of the loan, and the options for canceling PMI.  This includes the potential cancellation date, phone number, and address where the customer may contact to proceed with PMI cancellation.  

For more information on PMI and ways it helps our industry, go to

http://www.privatemi.com/

http://www.mgic.com/

http://www.hud.gov/

http://www.heritagehomelaons.org

This information was reported by Ryan Fuller, out of the Reality Times publication in Washington. 

Spokane Washington is in Spokane County. The Spokane County area is predicted to be in the top 10 areas for growth [ real estate appreciation ] this year nationwide. Inventory has risen from sustained hisoric lows of around 1600 homes non contingent to 2445 today. As a result purchasers have been enjoying the increased market selection. 

Not too shabby for the middle of somewhere Washington huh? 

Bradski

http://www.heritagehomeloans.org