David Doerr's Utah Home Loans BLOG

Twitter and Twikini

David Doerr (Wells Fargo Home Mortgage) — Mon, 01 Jun 2009 00:04:49 -0500

If you are looking for a Twitter client for Windows Mobile, might I suggest Twikini. It is the best mobile client for Twitter that I had tried. You can download a free trial copy at www.trinketsoftware.com/Twikini, and if you are a blogger, you can even get a free copy if you blog about it. Nice!

Here is a screen shot:

Utah Home Run Grant

David Doerr (Wells Fargo Home Mortgage) — Fri, 20 Mar 2009 12:15:49 -0500

Governor Mike Huntsman finally signed into law the "Home Run Grant" that had passed the legislature last week. By doing so, the State of Utah is providing $6,000.00 for the purchase of any never occipied home. The grant can be used for down payment, for closing costs, or to buy down the rate.

The UHC has assembled a small FAQ on the grant that I am posting below...please feel free to contact me with any questions.

What is the $6,000 Home Run Grant?

The Home Run Grant is a mortgage assistance program that grants $6,000 to home buyers who purchase a newly-constructed, never-occupied primary, single-family residence in Utah. The Home Run Grant is funded by the Housing Relief Restricted Special Revenue Fund, established by Utah Governor Jon Huntsman, the Utah State Legislature, and Utah Housing Corporation.

When is the Home Run Grant program being launched?

Governor Jon Huntsman signed Senate Bill 260 on March 19, 2009 to authorize Home Run Grants.

Who is eligible to receive a $6,000 Home Run Grant?

Home buyers must meet the following income restrictions:
- Single person, $75,000
- Married couple, $150,000
- If more than one unmarried person is taking title to the Eligible Home, each such single person is subject to the $75,000 income limit.
Home buyers must occupy the purchased home as a primary, permanent residence no later than 30 days after closing.
If home buyers need a mortgage loan to purchase the home, the loan must be a fixed interest rate, amortizing mortgage loan with a term of 30 years or less. Cash buyers can also qualify by contacting Utah Housing Corporation directly.
The Home Run Grant Program is effective for home purchases closed after a Home Run Grant Commitment has been issued for that specific transaction. Unfortunately the funds may not be used for homes purchased without the Home Run Grant Commitment.

How does a home buyer get the Home Run Grant funds?

To get a first-come, first-served written commitment for the Grant, home buyers must:

- Enter into a written contract to purchase a newly-constructed, single –family home.
- Contact a lender to obtain final underwriting approval for any needed financing.
- Have their mortgage lender furnish required documentation to Utah Housing Corporation for the Grant.
- Utah Housing will reserve the $6,000 Grant for 30 days.

What homes can be purchased with a $6,000 Home Run Grant?

Homes must be recently-constructed, single-family residences that have a Certificate of Occupancy or a Final Inspection. They cannot be previously-occupied. Eligible property types include single-family detached homes, condominiums, planned unit developments (PUD), twin homes, town homes and manufactured homes permanently affixed to a foundation.

How does a home buyer apply for a $6,000 Home Run Grant?

Home buyers should tell their home builder, realtor and mortgage lender that they want to apply for a Home Run Grant. Mortgage lenders are the key link between the home buyer and the Home Run Grant. The mortgage lender assists the home buyer to provide necessary information to secure the grant from Utah Housing Corporation. The home buyer does not work directly with Utah Housing Corporation (unless it is a cash buyer).

What type of loan can home buyers use to purchase the home?

If home buyers need a mortgage loan, it must be a fixed interest rate loan with a term of 30 years or less. Loans may be obtained from any lender qualified to make mortgage loans under Utah law. Examples of qualifying loans include:

* Conventional

* FHA, VA, or Rural Housing

* Utah Housing Corporation’s FirstHome and FirstHome Plus

What mortgage lenders can assist homebuyers to secure a $6,000 Home Run Grant?

Any mortgage lender qualified to make mortgage loans under Utah law can assist home buyers to secure the Home Run Grant.

Do I have to be a first time home buyer to get a Home Run Grant?

No. Home Run Grants are available to all home buyers who meet the income restrictions of $75,000 for singles, $150,000 for couples and, if more than one single person takes title, the $75,000 limit applies to each such single person.

Can the $6,000 Home Run Grant be combined with the new $8,000 federal tax credit?

Yes, if a home buyer is a first-time home buyer and meets the independent criteria of both the federal and Home Run programs, they may take advantage of both. The $6,000 Home Run Grant is available to both those who are first-time home buyers as well as those who previously owned a home. The $8,000 federal tax credit is available only to first-time home buyers.

How many Home Run Grants are available to home buyers?

A total of approximately1,600 grants are available. Each grant is $6,000. Only one grant can be used for the purchase of each home. Home Run Grants are distributed on a first-come, first-served basis to qualified home buyers. The approximate number of remaining grants will be posted on the UHC web page at www.utahhousingcorp.org.

How are Home Run applications submitted?

Home Run applications are submitted through a home buyer’s mortgage lender. Home buyer applications cannot be made directly to Utah Housing Corporation unless the Buyer is paying cash for the Home.

Is the Home Run Grant taxable?

The Home Run Grant may be taxable as income under federal and state tax laws. UHC has requested a ruling from the Internal Revenue Service (IRS) about whether or not a Home Run Grant will be taxable. UHC does not give tax advice and home buyers should review the ruling and other pertinent tax information in connection with the preparation of their 2009 tax returns.

If I have additional questions, who do I contact?

David Doerr at American Lending 801-798-8711 www.amlend.com/david

Google and Google Alerts...

David Doerr (Wells Fargo Home Mortgage) — Fri, 20 Mar 2009 12:03:35 -0500

Aside from the percieved invasion of privacy that Google may be perpetrating in its information gathering, I think they are amazing, from Google Docs to Gmail to iGoogle. I may be behind the curve a bit, but I just found a cool way to keep track of any topic on the internet, where ever it may arise. Google has a service called "Google Alerts"

It is a web search tool that you can iput certain search terms, and whenever something is updated on the internet with a specific phrase, or even a general topic, you are sent an email with a link to the web page. I have been using it to track the progress of the "Utah Home Run Grant" and I have an alert set up for my name, so anytime anyone posts something about me, or my namesakes, I am alerted.

You can check out google alerts here http://www.google.com/alerts

What does the Stimus bill mean to your community?

David Doerr (Wells Fargo Home Mortgage) — Tue, 10 Feb 2009 14:55:15 -0600

I love this country, I am an American! I spent 2 years in Brazil, I saw hyper-inflation first hand, I don't want any part of it. I am glad we have a system that can control things, but I am also leary of too much intervention and too much pork in my diet.

I suggest you check out...

www.stimuluswatch.org.

it shows where the dollars are going to be spent, and if I were West Virginia, I would be a little mad, 1 project? One big questions i have is why so much money in Puerto Rico?

Lets hope we all get that 4.5% rate everyone has been waiting for.

So, you are paying your mortgage... what can this "bailout" do for you?

David Doerr (Wells Fargo Home Mortgage) — Mon, 01 Dec 2008 14:38:18 -0600

So, you are paying your mortgage... what can this "bailout" do for you?

Last week, Secretary Henry Paulson announced that the Federal Reserve Bank was going to purchase a large amount of Mortgage Backed Securities(MBS) to inject some much needed liquidity and capital to the banks holding these bundles of notes. The impact was felt immediately on the mortgage market, rates for fixed rate mortgages plummeted on the injection of dollars into the system, dropping the 30 fixed rate by as much as 1%. Just today Chairman Bernanke re-iterated this today in his speech before a group of business leaders in Austin, Texas which caused an initial knee jerk reaction and sent the pricing of MBS skyrocketing and causing the effective yields (interest rates) to fall.

It is time to do a mortgage check up, see where you stand and see if these lower rates can help you refinance, purchase a new home, or even an investment property.

Provo-Orem rated #1 in Job Growth

David Doerr (Wells Fargo Home Mortgage) — Mon, 22 Sep 2008 15:46:26 -0500

According to the Milken Institute Provo-Orem has been rated the #1 Metro area for job growth in the entire USA. That is great, the economy here is slowing just like it is all around the US, but it is nice to see that Provo/Orem is still creating jobs and having people move into the area. Provo-Orem is followed by Raleigh-Cary, NC (follow the link to read about it from my friend Tracy), Salt Lake City, UT, Austin-Roundrock, TX, with Huntsville, AL rounding out the top 5.

Utah has 2 of the top 5 places people are moving to to look for jobs in the country, and I am excited by the possibilities. With the continued job growth, the real-estate market is beginning to pick up, and homes are being sold. Right now rates are tremendous, and are expected to get better in the next few months. If you are thinking about moving to Utah, please give me a call before you talk to a Real Estate Agent, being pre-approved for a loan now is more important than ever, since credit standards are tight, it is better to know exactly what you need to do to buy the home of your dreams rather than waste a lot of your time looking at things you cannot qualify for.

Contact me and let me submit your loan for a no cost pre-approval.

Why do we quote the MSM?

David Doerr (Wells Fargo Home Mortgage) — Thu, 14 Aug 2008 11:57:50 -0500

This morning I got an email from a great friend and colleague of mine aboiut the housing market in Texas, Mississippi, and Utah. My friend is in Texas and Mississippi buying properties, getting a great deal, and doing a lot of good. He knows those markets well. Even though my friend has lived here in Utah in the past, and has visited here recently, he is a little out of touch with the market, and tried to quote the Deseret News as a source of good information on the current state of the housing market here in the great state. This is the response email I sent him.

"When will you stop quoting MSM for "facts" The des news is nothing but a sensationalization of numbers to make things seem worse than they actually are, Jasen Lee is a REPORTER, he has no market experience, someone with 30+ years of experience in Real Estate should know better than to ask a hair dresser for a appendectomy, I am not yet "bullish" on the housing market in Utah by any means, however what it doesn't tell you is that a majority of the houses in the foreclosure "pool" were spec homes that have never been lived in, that they were all over 500K, and a majority were over inflated anyway. St. George is right on, but I hate the "Provo/Orem" moniker, it should read Utah County, and that should be split into 3 areas at the least, North, Central, and South. North County is filled with Spec homes; empty never lived in homes, over inflated values in Cedar Hills, Alpine/Highland, and Saratoga Springs. Central County, Provo/Orem and PG/Lindon are very stable, and have seen growth and appreciation, and South County is growing like crazy, Mapleton, Spanish Fork, and Payson are all doing very, very well, I have a developer looking to start a 144 unit development in South County in the next couple of months.

Things could be much much better, too many people are scared to buy in the affordable area, 300K and below, because the MSM keep propagating that the "sky" is falling. Rates are still excellent; homes fewer than 300K in Utah are appreciating at a 10% rate even right now, do you realize that a foreclosure rate of 1 on 472 is .021% not 21, but .021. That means slightly over 2 in every 1000 homes is in some stage of foreclosure, 2 in 1000, and we both know that being in foreclosure could mean a lot of different things, NOD filed, short sale, etc.

Builders like Ivory, Fieldstone, Richmond American, and Tuscany are giving tremendous deals on new homes to get rid of the land. In the 150-200K range, in SFR's, not town or condo, there is a scarcity of properties, one of my agents was looking for a home for a client and she found four in Orem TOTAL, four active listings, it is simple econ 101. "

Now is a good time to get Pre-Approved for a loan, not just prequalified! Whether you are moving in, or moving up, give me a call and let's get you iinto a home.

Blogging, what is it good for?

David Doerr (Wells Fargo Home Mortgage) — Thu, 10 Jul 2008 13:37:20 -0500

Absolutly SOMETHING! Hu waaaaaaaah.

What has happened to me, have I lost my desire to Blog, or am I one of the lucky few loan officers to still be busy and I don't have the time to chip away at the keyboard? I actually think it is a combination of the two. I have been very busy on the loan side of things, and very busy on the life side of things to be able to think about blogging.

Blogging relieves my stress, I can rant and rave about things, I can get something off my chest, I can offer some sound advice to the masses. So, here and now, I pledge to make at least 1 blog post per day: To develop my business, to develop my life, and to develop my character.

For those of you looking for the "Fraud Alert" post...

David Doerr (Wells Fargo Home Mortgage) — Tue, 15 Apr 2008 14:43:31 -0500

The generous host of this blog, Active Rain, has given me the option of editing the comments, or not reposting the entire post, due to contact from a yet to be named source. I do not have the time to go through 1200 comments and decide what needs to stay or go.

I will once again re-itterate that you should use your 700+ credit score wisely, the state of Utah has recently passed, and signed into law, laws specifiacally prohibiting "borrowing" someones credit score to purchase property. No money is to change hands unless it is disclosed on a HUD1 and no money is to be wired from an account other than your own to close a transaction. There are plenty of legal ways to invest in Real Estate, and make a hefty profit from it, if you have any questions about whether something is legit or not, please feel free to contact me.

Please review the latest newsletter from the Utah Division of Real Estate, and see if the story at the bottom of page 14 sounds familiar. I have seen this attempted over and over, I do not know where these people learned these techniques, but they are fundamentally flawed.

I thank everyone for their input, and I hope that I can continue to provide a place for people to vent frustrations.

Please feel free to contact me with any questions,

Mortgage Fraud Indictments

David Doerr (Wells Fargo Home Mortgage) — Tue, 11 Dec 2007 21:50:40 -0600

It has been a long time coming, and finally the State of Utah and the Utah Mortgage Fraud Task Force along with the Federal Government has made indictments against: Bradley Kitchen of Provo, David Bolick of Sandy, Steve Cloward of Orem, Ron Clarke of Provo, Jeffery David Garrett of Provo and Rebecca Ann Hadlock of Saratoga Springs. They were indicted on four counts of mail fraud, nine counts of wire fraud, one count of conspiracy to commit mail fraud. Each count could carry a maximum sentence of up to 20 years in prison and $250,000 in fines. The U.S. Attorney's Office seeks the forfeitsure of $7.5 million each from Kitchen, Bolick, Cloward and Clark; $6 million from Garrett and $4.5 million from Hadlock. Read the full story here.

I have personally know about the potential charges against Mr. Clarke for over a year. I am somewhat of a "Real Estate" geek, and I always admired a few of the 'heavy hitters' in the area, Mr. Clarke being one fo them. He sells a lot of high end homes, and I cannot understand the greed involved in the types of fraud he is allegedly involved with, and throwing everything away for a few dollars. If true it is sad.

More on Mortgage Fraud

David Doerr (Wells Fargo Home Mortgage) — Thu, 06 Dec 2007 12:24:34 -0600

It has been nearly 200 days since my last post. I guess I am one of the luck ones, I have been occupied with other things in business that have kept me from having the time I need to devote to blogging actively.

I see some of the comments made on my post Fraud Alert!!! and I am happy to see that there is an awareness of the misguided reality that has been led by the individuals heading some of the "investment" organizations here in my state. I know these businesses have bled across america and are now infilltrating unsuspecting neighborhoods as we speak. I emplore everyone to investigate their investments thouroughly, to question unusual rates of return, and to be vigilent in reporting activity that is not acceptable to the approriate authorities.

10,000 points and counting...

David Doerr (Wells Fargo Home Mortgage) — Tue, 05 Jun 2007 12:42:02 -0500

When I started "hanging out" on active-rain about 2 months ago, I never imagined that I would have 10,000 points. I will say that being on this networking site has been very educational to me, and has been a help to my business. I love coming on and reading about the successes and the failures, it helps me find new ways to grow my business, and things to avoid. I appreciate all the wise counsel that is spread, and I look forward to having many more blog posts that I can get feedback on.

Mortgage Fraud - Why?

David Doerr (Wells Fargo Home Mortgage) — Thu, 24 May 2007 21:33:31 -0500

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I feel that I work in an industry that affords me the opportunity to make a difference in peoples lives. I have been given great power, and with great power comes great responsibility. I have a responsibility to police my industry from the scum that prey upon innocent naive people trying to make a quick buck. I hate hearing stories from people about investors stealing equity by inflating values, so much so that a normal person cannot own a house. It is human nature to want to make money and do it with ease and simplicity, but how can one honestly think buying a house for 500K one month, and selling it for 600K the next month, and then a third sale to yet another investor for 700K a month later is legit? Capitalism is one thing, but creating value is another. These people can say "The appraisal is legitimate, the value is there." but where did the value come from? It came from the three other houses that the investment company owns that has been sold merry go round style amongst themselves to inflate the values of all three of them, making them "perfect" comps. Who is left holding the bag, the lenders in the end have it all thrown back on them, they own a house that last "sold" for 1.4 Million dollars that is worth 750K.

How does that effect all of us????? Higher rates and higher fees on our loans. If you know of anyone committing fraud, please have the guts to turn them in. We all pay the price for a few bad apples and that isn't fair.

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100% No Doc Commercial Loans!

David Doerr (Wells Fargo Home Mortgage) — Wed, 23 May 2007 00:18:50 -0500

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So, if you have any deals that you would like me to look at or if you have any questions or want more information, please give me a call at:

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Meeting new agents. Getting to know the people that we work with. - Utah County Home Loans

David Doerr (Wells Fargo Home Mortgage) — Tue, 22 May 2007 23:53:03 -0500

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I have been making more of an effort in the last few weeks to meet and interact with more of my peers. I am always looking for new referral sources, and I figured that if I wanted to get more, and better referrals, I needed to meet more Realtors^®, to get to know them in their element, and demonstrate my knowledge of the industry. Sterling Capital has joined the Utah County Association of Realtors, and we are sponsoring a luncheon once a month for the Central Utah County Real Estate Tour. It has been tremendous to provide lunch for various Agents and field questions about loan programs and the state of the mortgage industry with the recent sub-prime woes. We are also working on doing the same luncheon for both the South and North County tours as well. I am excited at the prospect of meeting more of my peers, and networking a lot more.

I love the Real Estate industry!

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"Movin' on up..." not quite like George and Weasie, but hey, #25 isn't bad. - Utah Home Loans

David Doerr (Wells Fargo Home Mortgage) — Fri, 04 May 2007 00:36:58 -0500

Honestly, I cannot believe the meteoric rise I have experienced on Google in the last few days. Monday night, I did a search for "Utah Home Loans" and I scrolled through the results not expecting anything and when I came across my name and Active Rain Profile at #39, I thought to myself "That's cool." So I made a few tweaks to my profile and added a couple of blog entries to try to maximize my AR exposure on the 'net and tonight, when I performed the same search "David Doerr - Utah Home Loans - Active Rain" was up 14 spots to #25. I felt like a pop star rapidly rising the charts with a hit single.

Riding the high that I was on from seeing my results rocketing toward the top, I decided to narrow my Google search a bit, I added "Provo" to the front end of my search to see what would happen, low and behold my Active Rain Profile is #1 in the results, followed by my Active Rain blog at #2, and my company, Sterling Capital, at #5, the only 2 results between my company and I was Provo City's website, nothing to do with mortgages or home loans. AWESOME!!!

Not more than 2 weeks ago if you would have searched for "Provo Utah Home Loans," I would have been no where to be found. I don't know if this is going to be a boon for my business, but I am hoping that I can continue to find interesting things to BLOG about. I want become the trusted advisor in Utah County and to a larger clientele here in Utah. I thank all of you for reading my BLOG, and thanks for all the clicks, every one counts!

David - Mortgage Broker - Sterling Capital - Provo Utah Home Loans - Utah County Home Loans

David Doerr - Utah County Home Loans - Utah Home Loans - Utah Mortgage

David Doerr (Wells Fargo Home Mortgage) — Thu, 03 May 2007 01:02:59 -0500

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I love my job as a loan officer, I have chosen a profession that is truly rewarding, I enjoy giving people the opportunity of home ownership, guidance in purchasing investment properties, and buying commercial properties. I love talking to people and helping them understand the importance of the tool they now own. I don't just sell loans, I try to give sound financial advice.

How do you know if a Loan Officer is a PROFESSIONAL? - Utah Home Loans

David Doerr (Wells Fargo Home Mortgage) — Tue, 01 May 2007 14:23:11 -0500

Recently I have been surfing Blogs seeing what Real Estate Agents are saying about lenders, and whether or not a Real Estate Agent should be involved in a clients financing. I have read numerous posts about the evil Loan Officers who are stealing money from the borrowers, putting them in "predatory loans," and how the Loan Officers purposely hold up closings to inconvenience the Agents and the Buyers. While I agree with little of what is said on the Agent side, I can see where it is frustrating to not work with a professional Loan Officer, someone who communicates clearly, and delivers above what they promise.

Purchasing a home is the largest financial transaction of a person's life, it is far too important to place into the hands of someone who is not capable of advising them properly and troubleshooting the issues that may arise along the way. You may ask, how does one know if you are dealing with someone that is a professional? The answer is simple, ask a few questions.

There are FOUR QUESTIONS A LENDER MUST BE ABLE TO ANSWER. IF THEY DO NOT KNOW THE ANSWERS TO THESE QUESTIONS, advise your clients to, RUN, NOT WALK, RUN TO A LENDER THAT DOES!

1) On what are mortgage interest rates based?

The correct answer is Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury Note. While the 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions. DO NOT work with a lender who has their eyes on the wrong indicators.

2) What is the next Economic Report or event that could cause interest rate movement?

A professional lender will have this at their fingertips. Email me, ddoerr@sterlingcapital.net, and I can send you a copy of the latest Mortgage Market Guide Daily update. If you would like to be added to my email distribution list, please include "MMG Newsletter" in the subject line.

3) When the Federal Reserve Chairman Bill Bernanke and the Federal Reserve Board "change rates", what does this mean; and what impact does this have on mortgage interest rates?

This answer may surprise you. When the Fed makes a move, they change a rate called the "Fed Funds Rate" or "Discount Rate", the rate at which banks loan each other money. They have an impact on: credit cards, Home Equity Lines of Credit (HELOC), auto loans and such. On the day of a Fed move, Mortgage rates most often will actually move in the opposite direction as the change. This is due to the dynamics within the financial markets in response to inflationary pressures. For more information and explanation, just shoot me an email with your phone number and I will be happy to answer any questions you may have.

4) Does the LO have access to live, real time, mortgage bond quotes?

If a lender cannot explain how Mortgage Bonds and interest rates are moving in real time and warn you in advance of a costly intra-day price change, you are talking with someone who is still reading yesterday's newspaper, and probably not a professional with whom to entrust your home mortgage financing. Would you work with a stockbroker who is only able to grab yesterday's paper to tell you how a stock traded yesterday, but had no idea what the movement looks like at the present time and what market conditions could cause changes in the near future? No way!

Have your clients be smart, have them ask questions, and get the RIGHT answers!

More than likely, this is one of the largest and most important financial transactions your clients will ever make. They might only purchase a home four or five times in their entire life. I do this every single day. It's their home and their future. It's my profession and my passion. I am ready to work for their best interest as you are

If you would like a Copy of these questions to hand out to your Clients, I can email you a copy in .pdf format so you can print them and hand them out, or email them to your clients to be green!

Sadly, Utah #1 in mortgage fraud - Utah Home Loans

David Doerr (Wells Fargo Home Mortgage) — Fri, 27 Apr 2007 01:41:53 -0500

Utah is #1 in mortgage fraud, and I work in Utah as a mortgage broker, Tuesday I met with the President of the Utah Division of Real Estate, Derek Miller, and its chief fraud investigator, Dee Johnson, it was sad to hear that Utah is again #1. MARI provided the data to our DRE on fraud; however, the report did include one statistic I was not expecting. The report stated nearly 70% of the fraud was committed by people outside of the DRE's jurisdiction. What does that mean? It means that nearly 70% of the fraud is being committed by bank LO's and the general public: Not mortgage brokers, not appraisers, and not real estate agents. I suspect a few of the guilty had previously had licenses, but I am sure that is the exception not the rule.

Bottom line, my industry is cleaner than I though, but it still has a long way to go.

One last post... - Utah Home Loans

David Doerr (Wells Fargo Home Mortgage) — Tue, 24 Apr 2007 23:35:45 -0500

I had the pleasure of attending the Utah Division of Real Estate Caravan today. The Division presented three speakers on various subjects including Mortgage Fraud and it's consequences. If any of you know me, you know that I am a passionate individual, if I get somehting in my craw, I will let you know about it. Utah is #1 in mortgage fraud, this is not a good thing. It gives my profession a black eye. However, one statistic stuck out to me today, 67% of mortgage fraud is committed by people outside of the Division of Real Esate's jurisdiction. What does this mean? The vast majority of mortgage fraud in Utah is being committed by non-licensed individuals, be this bank LO's or the general population. I know some of this is done because of ignorance, but I also know of too many companies within the state that have taught people how to commit fraud by placing notices of interest on properties, that inflate appraisals, that strip equity and leave straw buyers in a learch when their usefulness is through.

If you are in the business and you see something henke, please, please report it to the DRE in your state, it is our job to make our industry the cleanest possible.

"The biggest mistake I ever made was selling my first two houses..." - Utah Home Loans

David Doerr (Wells Fargo Home Mortgage) — Tue, 24 Apr 2007 22:46:19 -0500

I heard this today from the bookkeeper in our office. She was lamenting the fact that she had sold two homes in Texas years ago rather than rent them out. She knows she missed out on an opportunity to builder wealth, retain an asset and have someone else pay for it. We offer a unique service at our brokerage, we will find you a property, we will finance the property, and then we will manage the property for you. Our sister company Stonebridge Real Estate offers the Real Estate services, the finding and the managing. I can offer 100% financing for investment properties. We can show you how to build wealth with taking little to nothing from your pocket.

Call me right away!

Should Real Estate Agents import themselves with buyers financing? - Utah Home Loans

David Doerr (Wells Fargo Home Mortgage) — Mon, 23 Apr 2007 23:48:33 -0500

As a mortgage guy, I must say a couple of things. 1) I sell the financing, you sell the property. 2) As a mortgage broker I know the TRUE financial situation, you don't. 3) I don't tell my clients to go to another realtor because they will only charge them 4 points to list their house instead of 6, nor should I, it is none on my business.

That being said, I know there are unscrupulous loan officers out there providing less than ideal financing, and you do have a fiduciary duty to your clients to protect them from "bad" loans, but unless you know the entire situation, how do you know it is a bad loan. You can suggest to your clients to shop around, I am prepared for that since I am a professional. I hate it when I am scraping the bottom of the barrel on a loan I have worked on fixing credit issues for a year and a realtor says to the client I know a guy that is here in my office maybe he would be easier to use him. Then my phone calls stop getting returned and I am out a loan I worked very very hard to get.

The thing I tell all the agents I work with is that I recieve a significant amount of leads in their area that have never had contact with an agent, and that I need referal partners in their area; I hope that we have a smooth easy transaction so I have someone I can count on to send my leads to.

We all rely on referal partners and to steal a transaction from a potential lead source is stupid in my opinion. You never know how many potential clients may or may not be sent your way depending on your actions.

I don't mean to be harsh, but I think this must be said.

Thanks to Tony Gallegos for pointing me towards a great blog with this very idea posted. I will provide the link so everyone can read the brilliance!

http://www.mortgageporter.com/reportingfromseattle/2007/04/when_are_you_ob.html

If I could get everyone to visit one site and research... - Utah Home Loans

David Doerr (Wells Fargo Home Mortgage) — Mon, 23 Apr 2007 23:14:42 -0500

It would have to be http://www.hsh.com/. It is a invaluable tool when researching mortgage loans. It gives realistic rates, not rates driven by brokers vying for your business by cutting their rates below what they can actually give because HSH does not sell leads to mortgage companies.

I just read their article Is a 'Credit Crunch' Coming to the Mortgage Market? I feel it a must read for all Real Estate Professionals.

My mortgage philosphy... - Utah Home Loans

David Doerr (Wells Fargo Home Mortgage) — Sat, 21 Apr 2007 23:34:39 -0500

The philosophy on mortgage is simple, I am of the school that would rather have money in the bank as a safety net than equity in my home. This would be the case I relay to my clients, but as a finacial consultant I preface my remarks with "My philosophy is..." and end it with "...this may not be for you, it is up to you to decide." I also try to help them look at their overall financial goals and so the mortgage they choose is the best fit for them.

I suggest reading Missed Fortune 101 by Doug Andrew, although I do not agree with Mr; Andrew on everything he suggests, I believe his philosophy on mortgage is right on.

Investing in Real Estate - Utah Home Loans

David Doerr (Wells Fargo Home Mortgage) — Thu, 19 Apr 2007 23:53:06 -0500

There was an interesting article today on CNN Money. The basic idea of the article was that investing in the stock market out performed investing in Real Estate during the last 20 years roughly 13% to 9% nationally. While the percentages may very well point in the direction of the stock market, lets point out a couple of things that that eluded the author of this article.

First, although investing in Real Estate yields a less of a return in the long haul, in the short term, especially with good research and a little common sense, the yield is definitely greater.

Secondly, investing in Real Estate, especially residential rental and commercial rental properties, yields an investment that has, in most cases, little to no cost. The interest is paid by a third party, and the gains can be put immediately to use obtaining more properties via 1031 Exchange. Capital gains tax is deferred until the property is sold and cashed out. Where else can you have a $300,000.00 dollar asset and it cost you little to nothing to own.

Third, leverage, because of the size of the investment, Real Estate outshines the market. Let's say you have $10,000 dollars to invest. You decide to invest it in the market and you do phenomenal, 15% gain over 5 years. You would have roughly 21,200 dollars. If you bought an investment property for $100,000 and put that 10% as a down payment, and the growth rate was a 3.5% national average, your $10,000 investment would turn into a house that is worth $118,800, or $28,800. That is $7,600 dollars more than investing in the market. Plus you get the added tax break of depreciation, and you get to defer your capital gains tax by retaining or 1031 exchanging your rental property.

I am a big proponent of diversifying your portfolio, low risk, high risk, Real Estate, Bonds, Mutual Funds, etc... but don't forget to see all sides of an issue and please, please don't trust most of what is written by a journalist on the internet, have a trusted advisor that you can talk to and have them help you whip up a plan of strategy to make yourself wealthy. It drives those of us in the industry crazy when someone who has never purchased a home starts arguing with those of us who have done hundreds of transactions about the direction the industry is headed because they read an article on Yahoo! about the impending demise of the mortgage industry all together.

Financial literacy is the greatest weakness in this country's children, let's solve it.