Many times it would be easy, living in Southwest Florida to just lay back by the pool, soak in the 80 degree weather, and sigh, "it just doesn't get any better than this!"

Wel,l considering the difficulties of the last 3-5 years I've just got to tell you

it is getting better...much better...and we're being

Chase(d)

What do I mean by that, well let me tell you.

When I first arrived in Southwest Florida I marveled at times on Publics ability to identify the new "hot" areas. Back 15-20 years ago they were the anchor for a commercial plaza on the corner of Santa Barabara and Pine Island Road. On the surface it seemed foolish as there was literally next to nothing there, but they must have had marketing studies to support the move. Now fast forward...this area is one of the most vibrant and active areas in Cape Coral. Publics has continued to be first into growth markets, where the growth had not yet occurred or was just beginning.

Now we're being

Chased

For years it seemed odd to me that Chase didn't have much of a banking presence in Southwest Florida (if any). Even during the go go years I didn't really see or feel Chase anywhere. Seemed odd, but now it seems like Chase branches are going up everywhere; Colonial, College, Winkler, and elsewhere. All at once, quickly, and everywhere.

What are their studies telling them?

I don't know, but their actions certainly support a belief that Southwest Florida is moving in the right direction.

there's more

here's the headline from the local rag yesterday morning;

Jobs, housing making strides

Lee's unemployment lowest it has been in three years

HOME SALES...prices for the year and month end soar

We're on the move, in an extemely postive way. Maybe you'd like to come join us.

Just for a little tease, let's go back to the beginning. You know kicking back at the pool. Here's what the weather will look like today, and for the next few days;

today   80 degrees   Monday 81   Tuesday   80   Wednesday   82   Thursday   81

Right now are you screaming unfair! well

we're being chased by Chase

Come on down and join in!

USDA/Rural Housing "LOVES" Collier County!!!

Yes they do

No Doubt about it

and let's make something perfectly clear right now

USDA/Rural Housing is NOT limited to rural properties

Rural Housing is available wherever USDA determines it is necessary and that's ALL of Collier County

So, what's the big deal? check it out.

NO Downpayment required

competitive 30 year fixed rates

no prepayment penalties

seller contributions and gifts allowed

that's not all, that's just some highlights

there are some income restrictions

1-4 families   $83,750

5+  families   $110,550

there are some income exceptions

Also, this progam is not limited to first time homebuyers!

I know that you hear this, all the time, but it is a great time to be buying a home in Collier County.

there's LOW rates and LOW prices

Here's the deal; if you're prepared to buy your first home, if you're ready.

You've got a friend in Collier County

it's

USDA/Rural Housing!

In Southwest Florida, where I live, for the last 2-3 years at least an extremely large number of sales have been consumated by $$$$$ buyers, much to the delight of the Realtor World I may add.

Why so many cash Buyers you may ask?

I think that there are a few reasons;

1. you have your traditional cash buyers who don't want a mortgage and don't need one

2. some did it for convenience and timeliness, that being to complete the transaction quickly

3. others needed to pay cash due to the property quality. It needed work and the buyers in all likelihood would not be able to

    acquire a mortgage

I'm sure that there are other reasons, and I'm also sure that at this time some of those buyers

want some of their money back

but

can they get it?

maybe...maybe not

Let's take a quick look at this through the eyes of a lender. 

Even though there is no mortgage currently on the property it's going to be categorized as a

cash out refinance

and it's going to have its own unique guidelines. Also, beware that each separate financial institution is apt to have overlays, which in essence are their own regulations governing the transaction. Here's some basics

you'll need to wait 6 months from the original closing

you will pay an additional premium on the rate and/or points

you will need a good score

your loan to value will be limited to 75-80% (in most cases)

also the lender may restrict the amount of cash available regardless of the property value

Okay, so you paid $$$$$ and you'd like some back...can you get some

maybe...maybe not

Okay, you've decided that you want to buy a home, and you're going to need to acquire a mortgage. You know that they are going to want documentation up front, and you're the type of person(s) who like to be prepared.

here you go for starters...you will need

2009 & 2010 tax returns-all schedules

2009 & 2010 W2's

your most recent 30 days of paystubs

your most recent 2 months of bank/asset statements-all pages

note; if your bank statement says there are 4 pages and the last page is a worksheet/scratchsheet, provide all pages. the underwriter doesn't know what's on the last page unless he/she has it in his/her hand

a copy of your drivers license

a copy of your social security card

Have a complete package together and be prepare to hand it to the loan originator at the application, or before if you're looking for a real preapproval.

Be a serious buyer...put this information together now.

Now be prepared for the fact that you are not done providing documents. Here's why

First, the documents you provide may foster questions and/or requests for additional documentation.

Second, other information acquired by the lender through other sources; verifications, credit reports, etc. may/will foster the request for additional documentation.

A word of advise here...this will help tremendously

When additional information is requested provide it asap. Do not delay. Your delay slows the process, and sometimes creates doubt in the mind of the underwriter.

no whining; just do it. You're asking for $50-60-70,000 or more; whatever. The lender will not give you this loan unless you provide what they ask for.

that's a fact.

In today's market the lenders want to be satisfied that you have sufficient income, assets, and credit history to justify the loan. If/when they are satisfied you can close on the loan and purchase the home. If they are not satisfied you will not close.

So, you've decided to purchase a home.

Get your lenders package together...now would be good.

provide additional documentation as requested

that's it!

Okay what brought this on you may be thinking?

Yesterday I received a totally unsolicitated inquiry in regards to my interest in employment with a Chicago based mortgage company.

Here's the introductory line

Thank you for you initial interest in------------ -------.

 I had had not made any inquiries, had not had any contact, or did not have any idea who this company was, but being in an unusual mood I responded. Usually I just delete.

the response;

i don't recall ever expressing an interest.

in today's environment ethics is very important, and attempting to establish a relationship with a lie is not very ethical.

I received a correspondence from a VP stating no, I hadn't made any inquires, that they had found my contact information on Linked In.

I found it ammusing that he concluded by stating that if I knew of anyone who might be interested please refer them to the website.

Fat chance of that.

So, am I overreating or do you think, as I do that considering what has gone on in our industry over the last 5-7 years that we should be doing it the best we can, all the time.

Is this okay as it is just the normal course of doing business?

How about this one.

Why must I "unsubscribe" to all of the unsolicited information I have received from companies to which I have not subscribed?

At the very least there needs to be a change in verbiage.

how about;

click here to permanently delete these ------ that you never wanted to hear from in the first place.

Okay, maybe I'm living back in the dark ages, or maybe I'm not, for example;

I am currently utilizing a medium which reaches out to, you fill in the number, of people who access the Rain, of their own free will, either by membership, or clicking on the articles, as they are found on the net. There are also similar mediums.

I try to always be as truthful as possible, to give credit when credit is due, and to not abuse this system

So

is Truthfulness important, or isn't it?

YES

maybe

NO

If this is what is going to continue to come out of our Congress, maybe we should just extend their vacations, and let them all stay at home.Just a thought.

the essence of the bill is to include energy calculations in the mortgage underwriting process, thus improving lending standards

pleeeeease

Indirectly all costs are considered when underwriting a loan. But more importantly I would like to state

that Senators Isakson and Bennet have absolutely no qualifications to be able to make decisions as to underwriting mortgage loans and the quality thereof.

you know what this is...YUP

just some more self promotion while sponsoring useless legislation, that will do absolutely nothing to help our housing situation.

Now

the sponsors and promoters claim that the bill will create 83,000 jobs by 2020.

where do these numbers come from anyway? If we had created all the jobs which recent legisation claims to have created, everyone in the US would be gainfully employed, and unemployment would be at 0%...are you with me here.

the sponsors also claim that the bill will create $1.1 billion in energy savings by you guessed it, 2020.

from what I can see if this bill passes, 2020 could be a pretty good year. I wonder what 2012 will be like?

I don't know about you, but I'm really getting tired of all the useless legislation, self promotion, and the lack of success in solving our housing problems.

From an underwriting standpoint what this bill will do is expand the process, and turn down additional applicants. Now that should help, shouldn't it.

the SAVE Act

here's a few ways of looking at it.

save the paper (it's written on), save our time, save the BS

that's it, it's just

more worthless legislation

and I'm getting tired of that, aren't you?

I was just reading a post over on "Short Sale Superstars" posing a question about the claims that we make or the labels we attache to ourselves and the ethics and/or liability involved, if any. I mean I don't know about you, but I see people making claims as to their levels of expertise in particular areas that knowing and/or having done business with them I'd have to challenge.

okay, definition;

expert-  very skillful, one with great skill or knowledge in a field

Since my experience, over 30 years, is in the mortgage industry, I'll use some examples there.

Just awhile back, maybe a year or two government loans once again became very prominent as they were one of the few and/or only loans offering low downpayments, and flexible credit evaluations, at least by today's standards.

Every lender or loan officer was suddenly a government lending specialist. I used to tell potential clients to ask the specialist  (the lender/loan officer), if they just offered the loans, or if they had and are actually closing these transactions.

A sample question may be (to a loan officer);

how many VA? FHA? USDA? transactions have you closed in the past year?

you can adapt that question to address other areas of concern which are pertinent to your needs.

to a Realtor

how many short sales have you successfully closed?

how about your knowledge in a particular field.

is it all  just from the classroom or is it pratical, hands on experience, or both, or none?

here's a personal example;

I have been involved in mortgage lending with a focus on government loans for over 30 years, and have successfully closed millions in transactions.

Sounds boastful, but it is what it is.

try this one on for size, give it some thought

you may be an expert, when your previous clients are telling your prospects that you are.

Are there any ethics and/or liability problems by claiming to be an "expert" when most would say that you're not? Well, I'm neither an attorney, or judge and jury, but be careful out there. We, unfortunately, are a litigious society. People often sue at the drop of a hat.

So

are you an expert?

do you claim to be?

give it some thought

Well,

you caaaaan't have it!

well, maybe you can, or maybe you can't, and even if you can it may not be easy, and it could cost you

what is this all about, you may ask?

Many of my Realtor friends are extremely happy because most of their sales are cash. Cash continues to pour into Southwest Florida regardless of what the national press may report. Also the market is fairly strong, and we now are experiencing inventory problems. But that's not my point.

so what is my point, you may be wondering?

Here's the potential problem;

when a buyer pays cash they may avoid the hassle of getting a mortgage, but they create

a dead asset

they can't use that money for anything else, and it doesn't generate any interest. Worst than that

they may have difficulty recovering it if they need it, or it may be expensive.

Why?

because a cash out refinance has higher rates and/or costs and more restrictive guidelines.

let's start with the obvious;

if you do not credit qualify you will be in a position where you can either not be able to access the equity in your home or pay through the nose to acquire your own money.

that doesn't sound too good now? does it? well it's true.

next we have seasoning;

that means that there may be a waiting period before a mortgage lender will even accept an application for a cash out refinance. Usually that's at least 6-12 months.

last (at least for this posting),but not least;

it will cost you more;

Yup, there's a rate hike for a cash out refi.

you will pay a higher rate than you would have had you acquired a mortgage at the time of purchase.

So, what's the conclusion?

Think, before you put all of your cash into the purchase of a home.

What do you have left in reserves? or as mom always said

save some money for a rainy day

paying cash is not always a good idea.

sometimes yes, sometimes no; everybody's situation is different.

try not to put yourself in a situation where YOU'RE saying

I want (need) my money back!

My good friends at cnnmoney.com have rated Cape Coral, Florida as the second best place to retire out of the top 25. Now on the surface that may sound nice, but I've got to tell you sometjhing; based on their own info it's obvious

We're #1

got to be

here's their first bone of contention.

Marquette Michigan, yes get out your maps, is number one because and I quote

As lovely as it sounds to sip margaritas on the beach, doing it year round can get old.

Wrrrrrrrrrrong!

 i'll tell you a little secret. we have plenty of people who have been engaging in this, and similar activities since long before they retired, and they don't think it's getting old. not a single bit.

cnnmoney goes on to say that

with an average of 141 inches of snow per year, that there's plenty of white stuff (in Marquette)

 well, if you put it that way, i'll start packin now.

NOT!

In support of the Cape cnnmoney offers that

the Cape has 400 miles of canals, half of which have access to the gulf

and that

a newly renovated 1800 square foot home, with a pool, was recently bought for $145,000

it goes on to call the Cape

paradise for water lovers

you certainly wouldn't want any of that, right?

So, I demand a recount! Cause in this survey there's only one spot we should occupy

We're #1

don't believe it

come check us out

but i've got to warn you

you might decide to stay

In most cases when you bake a pie you use a certain recipe and you make sure you get all the ingredients correct, that would be those that you need and in the correct amounts.

well

A little while back I saw an article published by "constantly negative news," previously known as CNN. The gist of the headline was that a potential homebuyer with a 800 credit score was denied a loan. I'll touch on the lack of truthfulness in regards to the score in a minute, but my first bone of contention is

that a mortgage application is not approved or denied solely based on the credit score, that there are other ingredients. Should I mention that it is more than just a little irresponsible to insinuate that all that is necessary is a good score. I guess I won't.  

Mortgage Pie; basic ingredients

credit, income, assets, job stability, property quality

also at times there may be other ingredients necessary.

like pies, not all borrowers are the same.

Here's a simple statement, which in general sums up credit;

make your payments on time

In the CNN article they stated that the "self employed borrower" had an 800 score. He did have one of those but also a 760 and a third lower score. Lenders throw out the high and the low and use the middle. Shame on the writer.

income;

in todays marketplace you are going to have to substantiate that you have sufficient income, a track record of earning income at these levels, and prove that it is likely to continue at at least the current levels. For self employed borrowers the standards will be tougher.

assets:

you can still get low and no downpayment loans, but it is helpful when you can show that you have some cash reserves, or have saved funds, to at least make minimal downpayments.

I chuckle, inwardly, when I hear a potential buyer state that I paid x amount in rent, so i should be able to afford the same amount in a mortgage payment.

noooooooooo, not so fast.

when something broke previously the landlord paid to have it fixed, now as the homeowner you will.

develop a savings plan.

job stability;

to a certain degree this goes hand and hand with income, but continuous employment in the same industry is helpful, and if you recently changed from being a W2 employee to commission, or self employed you'll need some time.

property quality;

that's the security,

I don't care if the contract says "as is," it also says that it's contingent on mortgage financing, and we have our own rules on property quality. Here's a pertinent question

is the property mortgagable with the type of financing requested?

Okay, so there's the basics, now

mix, don't leave anything out

bake (process)

cool

and close.