Chris Montz's Blog

Does the word RATE LOCK mean anything?

Chris Montz (Network Funding, LP) — Thu, 18 Dec 2008 21:40:20 -0800

This week has been NUTS..... yes rates are the lowest they have been EVER.... but people lock a loan and then the rates drop then they want that lower rate.... do they not understand what rate lock means? Bad thing is if you dont try to get them the lower rate they will leave and go somewhere else... where has the loyalty gone? We cant help that the market is SO volitile that they can range a .5 - 1% in a matter of days if not hours.... yet people remember the last commercial they see.... What people dont understand is when we lock a loan we have a commitment from that investor that your guarenteed that rate for say 30 days.....no more no less....but people seem to only care if its benefiting them.... what about the investor if the rates go up? Should they come back to you and say..." hey you locked in at 5.00 but the rates are now 6 so you will have to pay this higher rate now." How much you think that dog will hunt? People still take for granted credit and lent money..... i have a customer that was locked at 5.25 last week.... well when they rates got to 4.5 he is freakin out.... but ALL year i told him and everyone else... when the FEDs have cut rates the 30 yr rates go up..... except for this time... and only reason they didnt is because the goverment and pimpco bought up a bunch of mortgage backed securities....same thing that happened in jan....its a phase...I try to get my clients the best rate and advise them what to do but the way this market is you cant tell what to do..... if you look at the bonds trading all year it looks like a heart monitor... up down up down.....people need to get with something they are compforable with and stick with it because you can NEVER truely get the best rate.....This is why i am thinking about charging a committment fee up front of say 500.00... this money will be gave back at closing but if they jump ship then i use it to pay the appraiser, credit report, and title company along with my time. Maybe having some skin in the game they will stay with you and close the loan... we will do everything we can to get the rate reduced but sometimes it cant happen.....give me your thoughts

Will 4.5% rates on mortgages help?

Chris Montz (Network Funding, LP) — Mon, 08 Dec 2008 20:50:23 -0800

As many of you may know the news and lobbiests are talking about the government may make rates go down to 4.5%. First of all what has dropping the FED funds rate down to 1% did to help? Prime is at 4% now and the market is still struggling. The main problem is that lending issues..... people that used to could get a loan cant now.... truth is some of those that cant buy now never should have been able to buy.... but one thing i think they need is more 100% loan options.... even people with good credit have to put down 5% on most loans now, and even 3% on FHA. Another problem I have been having in some areas is appraisal issues.... lower rates wont help that. The credit market drying up is what is causing alot of this...investors dont want all these risky loans anymore due to fall out. I do think that rates being down in the low 5's will help start a refi boom, but how does this help people in trouble? It dont! Most people that need the lower rates wont be able to get them because they have had lates on their mortgages now and wont qualify.....The talk about the 4.5% money is a mortgage coupon that will be used for purchases mainly... not refi's. So all these people that have been wanting to wait on rates to get to 4.5% are playing Russian Roulette because in this volitile market you can get too greedy and miss out on the lowest rates in a long time! Tell me your thoughts...

Credits for Links on websites....from AR

Chris Montz (Network Funding, LP) — Mon, 24 Nov 2008 23:52:27 -0800

I put my links up on 2 of my websites and i have yet to recieve any points for them... anyone know what may be the problem with them?

Do what you say....

Chris Montz (Network Funding, LP) — Sun, 23 Nov 2008 19:48:06 -0800

Just to show you the power of follow up... i had a client i was referred abotu 6 weeks ago that is supposed to close next week on a 1.9 million dollar purchase....He had decided to go with his bank because they promised him a certain deal he wanted to stick with who he had used to before... which is fine.... well they over promised and under delivered.... they told him they could do a loan for him putting 15% down at most 20% down... well they came back 3 days before closing telling him now he has to put down 35%... thats ALOT on 1.9 million....I had been following up with him about once a week just checking to see if all was good then he calls me this week saying he may need my help... then friday he told me its yours make it happen!.... so if i hadnt followed up with him i may not have had a shot at this.....so the moral is in this market... FOLLOW UP even if they say they are going somewhere else because alot of banks and lenders are doing this to people then most people never allow pride to not call you back... also the time to close had been messed up by the other lender.....

Do what you say....

Chris Montz (Network Funding, LP) — Sun, 23 Nov 2008 19:38:58 -0800

Just to who you the power of follow up... i had a client i was referred abotu 6 weeks ago that is supposed to close next week on a 1.9 million dollar purchase....He had decided to go with his bank because they promised him a certain deal he wanted to stick with who he had used to before... which is fine.... well they over promised and under delivered.... they told him they could do a loan for him putting 15% down at most 20% down... well they came back 3 days before closing telling him now he has to put down 35%... thats ALOT on 1.9 million....I had been following up with him about once a week just checking to see if all was good then he calls me this week saying he may need my help... then friday he told me its yours make it happen!.... so if i hadnt followed up with him i may not have had a shot at this.....so the moral is in this market... FOLLOW UP even if they say they are going somewhere else because alot of banks and lenders are doing this to people then most people never allow pride to not call you back... also the time to close had been messed up by the other lender.....

Do what you say....

Chris Montz (Network Funding, LP) — Sun, 23 Nov 2008 19:38:16 -0800

Do what you say....

Chris Montz (Network Funding, LP) — Sun, 23 Nov 2008 19:30:06 -0800

Just to show you how follow up pays of in our business i will tell you about an experience i have recently had.... I had a client i was referred about 6 weeks ago. He had decided to go with his bank he already had talked to about his loan before me. Well i continued to follow up with him and low and behold the bank over promised and are under delivering....They promised him a certain rate and a certain loan to value and now they have increased his rate 4 days before closing along with his down payment.... he was told he can put 15% down and now he has to put 35% down....this is a 1.9 million dollar loan....so now he has decided to come back with me and let me do his loan for him... moral is always follow up even if they decided to go elsewhere because in this market alot are promising the world just to get the business in the door and then they change it on you.....

Times like this defines our soul....

Chris Montz (Network Funding, LP) — Wed, 19 Nov 2008 21:18:18 -0800

Today i was listening to my Breakfast with Todd (Todd Duncan) and his topic today was about courage. He talked about hard markets like this will define ones soul. You will have to dig deep in your soul and find the courage to fight to stay in the game and find out who you are. When times are tough like this can help define the person you are.....Be couragous and keep your focus ...this market has broke alot of people and i REFUSE to be broken!

Gas down why arent goods?

Chris Montz (Network Funding, LP) — Wed, 19 Nov 2008 21:08:15 -0800

Well the big reason for inflation the past year or more has been due to cost of gas to ship and make. Now that oil has come down $100 a barrell the past 2 months or so i havent seen any reduction in goods..... whats wrong with this picture? I think this is just another myth for people to make more money

What makes a good loan officer?

Chris Montz (Network Funding, LP) — Sun, 16 Nov 2008 22:20:47 -0800

I want to ask all the realtors out there what they look for in a good loan officer. I would think good communication, closing on time, and getting the customer a good deal are the main things, but I want to clarify this with realtors across the country and make sure there isnt a way i can better my services. Please give me your feedback so i can tweek things if i need to....

Extreme Home Makeover is the best....

Chris Montz (Network Funding, LP) — Sun, 16 Nov 2008 22:13:28 -0800

I am sure alot of you have watched the show "Extreme Home Makeover"....I think this is one of the best quality and good spirited shows on TV these days.....Most Tv has gotten son dramatized and away from doing good its nice to see people doing good for others.....Has anyone ever been a part of this show? What about Habitat for Humanity? I would be interested in volunteering for those next time they are in my area..... give me some feedback if you have been a part of those... tell me your thoughts

Lay Away back?

Chris Montz (Network Funding, LP) — Sat, 15 Nov 2008 22:39:47 -0800

You can tell things are getting tight in the economy if stores are bringing back lay away..... not sure if you have noticed but KMart and Sears have brought it back for Christmas.... Seems like we are going back to old school credit huh?

Will Santa come see you this year?

Chris Montz (Network Funding, LP) — Thu, 13 Nov 2008 20:56:52 -0800

It is going to be interesting to see this Christmas of what Santa brings people this year.....With the market like it is i am sure things will be alot different....Have you seen that some stores are bringing back layaway? Looks like the lack of credit is going to make Christmas be slim this year.... maybe this will teach us all to go back to what Christmas is really about... you know?

Wild day today.....

Chris Montz (Network Funding, LP) — Thu, 13 Nov 2008 20:35:16 -0800

Did anyone ride the roller coaster again today? The stock market started out this morning down below 8000 on the DOW due to the low earnings of Wal-Mart and Intel along with poor economic news. Then by mid day the stock market made a massive rally by day end jumping up 900 points. Due to all this in the market it killed the Bonds.....they dropped over 40 basis points on the day. The jobless claims numbers also had a big impact as they jumped 32,000 to reach 516,000... the highest level in 7 years. This market is so unstable if you have anyone sitting on the fence they need to be having their loan watched carefully because, today i had a client that has been needing to getg 5.875 to even qualify and I encouraged them to lock because i was scared it may jump up and sure enough when they said go ahead... i locked it and no more than 2 minutes we got a reprice......the market can change that fast..... that is why you need to be working with professional loan officers that know the market.

Is the US economy the next Enron or Healthsouth?

Chris Montz (Network Funding, LP) — Wed, 12 Nov 2008 21:50:20 -0800

Ok guys here is a real mind job for you....if you have noticed in the past year and a half the economy has faultered. Why? Well the credit market has tightened so much that people cant buy on credit. I think that the last 15-20 yrs our economy has been inflated by the credit market and not true dollars earned being spent. Think about it... the national savings rate is -1%, people just dont save anymore and are all living above our means. People live on credit and now look what is going on in the market. I think our numbers in the economy isnt true because look whats happening now when the credit market more or less is gone. Credit industry really got started back about 20 yrs ago when Reagan was president. All lending went to financing 100% more or less and people has been making payments the rest of their life. You have 100% loans on homes which used to be 10-20% down, you have furniture places and appliance stores doing the no payments for 1 or 2 yrs, then people operating businesses on credit.....To me this is like the Enron and Healthsouth scandels and its been done by the government. These places inflated their stocks to make it look like they earned more than they did and look what happened to them...I think we have all been dooped... we are slaves to credit and now its becoming extinct....tell me your thoughts....

Government loan forgivness and Credit.... how it effects you

Chris Montz (Network Funding, LP) — Wed, 12 Nov 2008 21:23:59 -0800

The question I have seen asked alot lately is will short sales effect your credit? Normally a short sale does show as account settled for less than amount due, but with all the things going on in the market and governement forgiveness of loans, how will this effect your credit? In the new bill thats been passed i saw where it said in certain areas they will write the loan down to make it affordable if you are trying to refinance and cant due to the market. In the new bill the HR 3221 they have a provision in there saying they can write the loan down and if you sell it and dont net any money they will forgive the debt..... well if the governement is pushing this so much will they push the credit agencies and underwriting guidelines to change as well? Some people cant help the market they are in and the loans they were talked into so how will they get out of this if the market wont allow them? I think its unfair to harm peoples credit in certain situations. Tell me your thoughts....

Oil Companies Step UP......

Chris Montz (Network Funding, LP) — Tue, 11 Nov 2008 23:14:56 -0800

As many of you know the auto industry is following suit in the money crisis..... I think the oil companies should step up and help not the Government..... The oil prices had a big effect on alot of the SUV market and there are so many of those out there now..... they should start a financial source for buying cars.....

Just one more round Adrian.....

Chris Montz (Network Funding, LP) — Tue, 11 Nov 2008 21:58:22 -0800

From the famous Rocky movies, Just one more round Adrian....The real estate and mortgage market now days is like a Rocky fight..... all of us need to be like Rocky and refuse to go down and win the title.....Just remember the last ones standing in this market will come out smelling like a rose in the end.....One thing about the real estate market people will always be buying homes and always be needing loans......we all need to stick it out and see how we win in the end...

What will Modifications, Short sales, and reworks do to you credit in this market?

Chris Montz (Network Funding, LP) — Tue, 11 Nov 2008 21:49:08 -0800

As many of you may know foreclosures are one of the main topics in the real real estate industry right now. Many lenders are starting to help people keep their homes by doing modifications of some sort. The new bill passed by Bush called the HR 3221. This bill has many ways to help homeowners keep their homes. My question is if someone does a shortsale or a short refi how will this effect their credit. Some people in a declining market or just cant sell their house may need to do a short sale due to the market and since they cant afford it..... well if they had good credit before they did this would it hurt their credit? I dont think its right if it does.....tell me your thoughts

What is loyalty to some people?

Chris Montz (Network Funding, LP) — Tue, 11 Nov 2008 00:18:25 -0800

I had a client the last few days that was referred to me as a mortgage referral. I met with this guy 3 months ago and spent 2 hours with him talking about options on buying a home. Then yesteday... on a SUNDAY I got a call from him because he was ready to get some numbers and get pre-approved because he found a house. With the relationship and detacation i have for this realtor i met with him and spent 3 hours with him and his wife on a SUNDAY.... everything seemed great... then at the end of the conversation he tells me he is shopping me with 2 other lenders... which is fine....then he calls me today saying he is going with the other 2 lenders.... why? better rates? no.... better closing costs? no....it was because i was too laid back and no pressuring enough to want his business.....what is up with that? because i took the extra time to educate and not sugarcoat everything i am too laid back? I pointed out the possible problems that may come up and i get the shaft for that? Someone PLEASE help me understand!

Who is in your BOOK OF WHO?

Chris Montz (Network Funding, LP) — Mon, 10 Nov 2008 23:53:13 -0800

Do you have a Book of WHO?

The Book of who is your core 100 people you know and do business with. You should start you a database or referral book tha has any and every kind of job title you can think of..... with this book you have a good quality contact for anyone that needs something. You need to become a trusted referring machine..... and with this book you market to this book all the time.... Dont let people in your sphere of WHO and dont allow any non quality people in it...... If someone in your group isnt fitting the mold then get them out.....This book should also include famous people you know too.... the WHO you know mentaility is what you need to build any business on.... you know they say its ALL about WHO you know..... Use this and you will be suprized how the pay off will be.

Oil vs Inflation.....The price we truely pay for black gold!

Chris Montz (Network Funding, LP) — Fri, 07 Nov 2008 11:28:27 -0800

I am sure many of you have noticed the roller coaster of the oil prices and how it has made the cost of goods go up. With our world soley dependent on oil what are we in for? Its funny how 35 yrs ago my grand father was in the oil business and he told me some guy had invented a carborator that would make a V8 engine get close to 100 miles to the gallon.... hmmmm wonder what happened? It disappeared! Some oil company bought the patent on it and made it disappear..... We have the technology to get this kind of milage but we dont do it.... so who is to blame? Greed i say... .oil even makes any and everything shipped, produced, grown, and anything else you can think of increase... therefore this makes the inflation increase to cover the cost to ship and produce.... now that the oil has dropped alot have you seen goods come back down? NO... what goes up dont always come down...... this is a messed up economy... we are slaves to it

Hello neighbor....

Chris Montz (Network Funding, LP) — Thu, 06 Nov 2008 22:10:01 -0800

This is a follow up on the blog i wrote earlier about house warming parties.... instead of inviting family and friends you can invite the peoples new neighbors...... how better to get settled in the neighborhood than have a party? What you can do is do a 10 up 10 down invite to the close neighbors of the clients new home..... this will get you new leads with those people and also make your clients feel right at home.....I can be one to tell you even i dont know most of my neighbors....and i have lived here for almost 4 yrs....sad huh? try this and tell me how you do...

Welcome home!

Chris Montz (Network Funding, LP) — Thu, 06 Nov 2008 22:05:07 -0800

You ever wonder a way to get more direct leads from a client after they buy a home? I have started this not too long ago, house warming parties. The way i do them is i tell my purchaser to get me a list of 15-20 of there closest friends and family. I address them and send out the invitations for them and host the part for them.... I usually partner up with the Realtor on this. I then come up with a door prize and have a raffle type ticket they fill out with there contact information on it.....the card will have name, address, email, phone numbers, and if they own a home or not. Then that creates 15-20 leads for you to add to your data base... then u market to it and call thanking them for coming to the party.... then start them on a drip campaign in email or mail. I have gotten at least 2 transactions from each one i have done....this puts you above and beyond anyone else and helps you build a relationship with the realtor and clients...... you should try it!

100% loans......

Chris Montz (Network Funding, LP) — Thu, 06 Nov 2008 20:04:47 -0800

I have heard of them but never used a USDA loan but i am about to check them out. The USDA and the VA are the only 2 100% loans i know of on the market right now.....These loans seem to be a cross between a MY Community and a FHA loan....They seem to have income and location restrictions, but hey its a 100% Let me know if anyone has had good or bad luck with these.