Kevin Hancock - The Hancock Mortgage Team's Blog

Legacy Group Merges with W.J. Bradley Capital

Thu, 02 May 2013 12:07:05 -0700

Legacy Group Merges with W.J. Bradley Capital

May 1, 2013

DENVER, May 1, 2013 /PRNewswire/ -- W.J. Bradley Mortgage Capital, LLC (W.J. Bradley), a privately held mortgage banking firm, today announced that the principals of Legacy Group Lending, Inc. (Legacy) of Bellevue, Washington, and its nearly 300 loan originators and employees have joined the company. With the addition of Legacy's 23 branch locations, its operations center, and nearly $150 million in monthly loan origination, W.J. Bradley has taken a significant position in the Pacific Northwest market and has further expanded its share in the Western region.

"We've been searching for the right partner in the Pacific Northwest for some time; the production capability and strong reputation maintained by the Legacy Group and its employees makes Legacy an ideal fit for us," said William J. Bradley, founder and CEO of W.J. Bradley. "Having similar values and like-minded leadership presents a cultural synergy that compliments our combined operational strength, and we're confident that, together, we're well-positioned for exponential growth."

"Early in our discussions with W.J. Bradley, we recognized the integrity from which this company operates, and the fit between our two groups was a natural one," said Scott Rerucha, CEO of Legacy. "Joining W.J. Bradley offers us access to a robust platform -- incredible technology and infrastructure, expanded loan products and programs, enhanced servicing support and improved pricing -- that supports our growth strategy, as we expand throughout our key regions with accelerated speed."

In 2012, W.J. Bradley originated $6.4 billion in residential mortgage loans and the Legacy Group originated $1.6 billion. Based on combined production volumes for 2012, as listed in Mortgage Executive Magazine's Top 100 Mortgage Companies list, W.J. Bradley will be the fourth largest, non-bank mortgage company in America.

About W.J. Bradley Mortgage Capital, LLC

W.J. Bradley Mortgage Capital, LLC is a residential mortgage banking firm, founded in 2002 and headquartered in Centennial, Colorado with centralized fulfillment operations in Salt Lake City, Utah. In 2012, W.J. Bradley originated more than $6.4 billion in residential home loans. With more than 80 branch locations throughout the United States, the company is licensed in 28 states and currently operates with more than 1,500 professionals.

About the Legacy Group

Founded in Washington in 2007 as Legacy Group Lending, Inc., the company grew quickly by prioritizing client relationships with realtors and consumers. With 23 branch locations throughout Washington, Oregon, California, Hawaii, Colorado and Arizona, the Legacy Group was ranked on the Puget Sound Business Journal's "fastest-growing private companies in the state" and Seattle Business Magazine's "best places to work" lists in 2011. In 2012, the Legacy Group originated more than $1.6 billion in residential home loans.

SOURCE W.J. Bradley Mortgage Capital, LLC

/CONTACT: Bill Campbell, Campbell Lewis Communications, bill@campbelllewis.com, 212-995-8057

/Web site: http://www.wjbradley.com

Washington - USDA Eligibility Areas - Boundary Adjustment

Thu, 06 Sep 2012 13:29:33 -0700

This is a note that I received earlier today for the Washington USDA office:

"Rumors are flying about the eligibility areas being changed. At this time, we are reviewing the eligiblity areas. We cannot discuss any potential changes. Any changes that may occur will be announced at least 30 days prior to the effective date."

Please let me know if you have any questions.

Thanks!

Kevin Hancock

Loan Officer
License # MLO-108328

at

360.698.6478 office
206.849.6326 cell
425.283.4642 fax

kevin.hancock@legacyg.com

How do I buy a home? Step 2

Wed, 01 Aug 2012 16:25:04 -0700

Step 2. Pre-approval – This can be done along with your initial consultation, or it can be done at a later date.

2-a. The first step toward pre-approval is to fill out a loan application. This can usually be done either in person, over the phone, or online through your lender’s website.

It is not necessary to have an answer for every single question on the application, but it is critical to fill out the application as completely and accurately as possible. Getting all of the information on the application can save a lot of stress later in the process.

If you are going to do the application in person or over the phone, typically you will want to plan on at least 30 minutes to complete it. If you run out of time, the application can be saved and completed at a later date.

Applications done in person, at the lender’s office, typically take a little bit longer because the circumstance usually results in more question and answers. An in-person consultation can be highly beneficial to the Borrower, especially if it is a joint application (husband and wife, for example) and both Borrowers would like to be involved in the mortgage planning process.

2-b. Once the application is near completion, your Loan Officer will use the information you have provided to pull a copy of your credit report. A mortgage credit report consists of information gathered from all three Credit Bureaus (Equifax, Experian, and Transunion). As a borrower, you will typically have a different score with each Bureau. These scores range from 350 to 850, with 850 being the best possible score. For the purpose of pre-approval, the Loan Officer will use the middle of the three scores. Credit reports are typically valid for 90 days, at which point they will be updated for accuracy. This is why it is very important to monitor and maintain your credit throughout the home-buying process. Never neglect your credit or make late payments because “my score has already been checked”.

2-c. The next step toward pre-approval is providing the documentation requested to the Loan Officer. Once the Loan Officer has reviewed all of the documentation to accurately determine your income and asset levels, they will be able to issue your pre-approval. Once the Loan Officer completes your pre-approval, you will want to make sure that you review the terms (puchase price, loan amount, payments and closing costs) so that you know how you want your Real Estate Agent to write your offer.

Kevin Hancock
Loan Officer
License # MLO-108328

at

360.698.6478 office
206.849.6326 cell
425.283.4642 fax
kevin.hancock@legacyg.com

How do I buy a home? Step 1

Tue, 24 Jul 2012 16:21:13 -0700

Are you inexperienced or unfamiliar with the Real Estate Buying Process? Here is a step-by-step breakdown on how things should progress throughout the Real Estate Purchase process:

Step 1. Initial Consultation – The first step in the process is to meet with a mortgage lender to discuss your goals and needs. This is a great opportunity to get all of your questions answered regarding financing and buying real estate. It is also the time where your lender will get to know more about you so that they can begin the process of determining which loan program will best suit your needs.

Some of the questions the lender may ask would be:

What do you do for a living? How long have you worked there?
Do you get paid hourly or salary?
Do you have any down payment funds available? Do you plan on receiving a gift from your parents?
Do you have funds available to pay the closing costs for a purchase transaction?
Have you looked at your credit recently? Do you know approximately what your scores are?
How much do you currently pay for rent?
How much of a monthly mortgage payment will you be able to make comfortably?

If you already know that you don’t want to have a monthly payment higher than $xxx.xx, now is a great time to let your lender know. Based on your needs, the lender can give you a good idea of what price range you will be looking at and what your estimated payments will be for homes in that price range.

If you have any situations in your life that are outside of the ordinary, now is the best time to let your loan officer know. This may include items such as a past Bankruptcy or Divorce, or possibly trust income or inheritances of interest in real estate. The more information you give the lender, the easier it will be to help you.

This is also the time when the lender will discuss with you the supporting documentation that will be needed. They may list the items verbally, e-mail them, or hand you a hard copy of the list of items that apply to you specifically.

This is also a great time to educate yourself about which home loan programs are available. Some of the programs commonly available to first-time homebuyers are FHA, VA, USDA, House Key (in Washington State), and Conventional loans. Your loan officer can advise you about which of these programs you qualify for, and the differences between the different programs.

Kevin Hancock
Loan Officer
License # MLO-108328

at

360.698.6478 office
206.849.6326 cell
425.283.4642 fax
kevin.hancock@legacyg.com

Honoring Memorial Day

Fri, 25 May 2012 11:42:41 -0700

"And I'm proud to be an American,
where at least I know I'm free.
And I won't forget the men who died,
who gave that right to me." -Lee Greenwood

It's spring cleaning time - FHA Streamline refi explained

Fri, 11 May 2012 11:16:04 -0700

It's spring cleaning time. Time to root through the garage and reduce clutter

The faithful faminly television that got you through the entire series of "Seinfeld"?

See ya.

The squeaky treadmill covered in cobwebs? Out the door.

The old motorcycle that you've been planning to fix up for the past five summers? Maybe keep that one.

Since you cant really put your FHA mortgage payment up on Craigslist, do the next best thing - reduce your payment with a new FHA streamline refi.

Starting June 11, the Federal Housing Administration is quitely offering a chance for FHA homeowners who obntained ther current mortgage bfore June 1, 2009, to refinance at a much lower fee.

The idea behind the move is to encourage homeowners to qualify for today's low interest rat4es, which equals lower monthly payments. In theory, this fulfills the FHA's goal of fewer loan defaults.

Also, the upfront mortgage insurance premium for an FHA stramline refi is dropping to 0.01 percent of the loan value, or $1 for every $100,000 in value.

The best part? There is no appraisal required, which means a mortgage can be underwater and still qualify for lower payments.

Lending professional goes beyond mortgages

Fri, 30 Dec 2011 15:13:58 -0800

Zero-down INVESTMENT purchases for individuals who already own a primary residence?

Thu, 18 Aug 2011 20:32:33 -0700

I posted this blog on Active Rain for the first time almost a year ago. As far as I know, only 4 people read the blog. Since then I have heard many other ideas for fixing the housing market, but obviously none of them have worked.

So I decided to update and re-post to more groups in the hopes of getting a better conversation going about how to solve our national real estate problems.

I think that allowing a streamlined refinance process for people with good to excellent credit is a great idea. It might even work if the big banks/investors could be encouraged to disregard their individual overlays and allow it to happen. What would be the harm in finding a way to get people out of ARMs, PayOptions, Balloons, and even sub-prime loans if they have excellent credit at this time? Would it be easy? No! Possible? I think so.

It seems that many of the measures that the government has taken to try to stem the tide of foreclosures and declining Real Estate values (HAMP, HARP, FTHB credit) have been aimed at the people that are having trouble keeping up with their payments. While this make sense at first (why not help the people that are in trouble?), the results seem to show that these are only temporary "Band-Aid" fixes to the issue, or there are too many stipulations to allow them to be effective.

The temporary nature of such measures seems to be counterproductive to what the true goal should be, which is stability in the market.

Think about it: the "boom and bust" cycles that our economy has been experiencing over the last decade, starting with the dot-com craze, have resulted from a lack of stability in the markets. In order to pull the economy out of the recession that followed .com madness, interest rates were dropped to historic lows, which resulted in the housing bubble. Once the housing bubble burst, world economic panic set in, which may be leading to what many are already forecasting as the next asset bubble in the Bond Market (http://tinyurl.com/2cwbymm) due to investors searching for safe investments which have driven interest rates to new historic lows.

Our economy seems to be less and less stable every day. But if you believe, like I do, that housing is one of they key pillars of our economy, then stabilizing the housing market could help promote wellness throughout the rest of the economy.

So what is my idea? I believe that if we could move a long way toward stability by finding a way for current homeowners with good credit to purchase more homes at existing market prices.

This would be beneficial for 2 reasons:

1. Purchasing homes without selling would help to reduce inventory. If I want to buy a new home, but I have to sell my current home to do so, their is no effect on inventory, and in fact inventory temporarily increases if I have to sell my home first. But if I can own 2 homes instead of one, I reduce the standing inventory. This also makes practical sense because realistically, who is going to buy all of the homes that are being foreclosed around the country every day? If more people are unemployed today than yesterday, and more homes are foreclosed, doesn't it stand to reason that inventory will continue to grow?

2. Purchasing homes at today's low prices would allow homeowners to improve their balance sheets by taking advantage of today's discounted prices, resulting in a kind of Dollar-Cost Averaging.

For example, a homeowner currently owns 1 home, which they purchased for $250,000 in 2006, and it is now worth $200,000, they would be -$50,000 on the transaction. If they could turn around today and purchase the exact same house right next door for $200,000, their average purchase price would be $225,000. They would still owe $450,000 on what is currently $400,000 worth of real estate, but they would be able to generate some cash flow by renting one of the properties, ideally at a market rent that would cover their new mortgage payment. If I am correct in my assertion that such a program could help to soak up inventory and also reduce the amount of strategic foreclosures, then logically housing values should begin to increase over time.

If 2 years from now, those homes increase in value to $235,000, the individual would own $470,000 worth of real estate for which they paid only $450,000, which would be a gain of $20,000. If they had just stayed put in their original home, they would still be -$15,000. Another way of looking at it is that if they stay put, they need the market to improve by 25% in order to break even, but in the new scenario they only need it to improve by 12.5%. These effects could be magnified if the individual purchased 2 new homes instead of one.

Why is this important? Because by improving an individuals balance sheet, you increase their actual wealth. When you increase their wealth, they are more likely to feel confident getting back to the business that will actually pull us out of this recession, rather than just continuing to throw money at the problem. Because this proposal is entrepreneurial in nature, you would allow people to once again control of their own destiny, and provide an incentive for people to be responsible with their credit rather than feeling like victims whose only resort is to bail on a bad investment.

Of course people have the option of pursuing this strategy right now, but there are many things that stand as obstacles that could be removed.

Solution #1: What if we had a program to waive rental management history requirements to use rent to qualify for new purchases for individuals who agree to hire a property manager and take a weekend course in rental management?

Solution #2: What if people could receive subsidized interest rates if they agreed to some form of recapture tax for profits gained down the road? You could even have a limit of one or two properties that could be purchased. One for singles, two for joint filers? Maybe it would be based on the number and/or values of properties currently owned, or when the homes are purchased.

Solution #3: What if additional properties could be purchased with no down payment or mortgage insurance for qualified purchasers? If a bank or distressed seller owns a property, there should be a formula for figuring out a way to mitigate default risk to the banks and investors and maybe even keep them from losing more money, unlike a typical short sale or foreclosure.

Solution #4: What if financing options could be specifically designed to allow a reasonable chance for the new owner to generate positive cash-flow. This could be done with a combination of rate / amortization / price options. The goal would be to get the new owner a payment for a rental property that won't cost them money to own. They would not be entitled to windfall profits if the market recovers rapidly, but obligations could gradually reduce so that if the buyer owns the property for 10 or 15 or 20 years, they would be entitled to profit from appreciation. My vision is something similar to my understanding of the "Habitat for Humanity" program that already exists.

These programs could sunset after a reasonable amount of time was given to get us back no track. As housing recovers, confidence improves, and the whole economy begins to improve.

Of course I don't have all of the answers, but I think this is the type of thinking that is necessary in order to turn things around in this country and get us back on track for growth. I know this is a long post, but I encourage anyone who has any more ideas to post a comment. I have a lot more thoughts on the subject that I would love to brainstorm, but I really need to get back to work.

If you know why this absolutely won't work, please let me know as well. I am going to start this as a Members Only post, but I would like to make it public after a little more fine tuning.

Thanks for reading!

Step 10 in the 10-Step Homebuying Process

Tue, 19 Jul 2011 14:36:45 -0700

Step 10. Closing - Now that all of your documents have been signed, the Escrow Closer will send your original documents package to the office of the Lender's funding department. The Escrow Closer knows who this is because it is designated in the closing instructions. Once the Lender's office receives the documents, they will review the package to make sure that it is complete and that no signatures were missed during signing.

The whole closing process generally takes most of the day, and can only be completed on a day when the Federal Reserve and the local County Government offices are open, which excludes holidays and required County furlough days.

Upon approval by the lender, the Warranty Deed and Deed of Trust are delivered by the title company to the County courthouse for recording. Verification of recording is given to the escrow closer who then disburses funds to the Seller, Listing Broker, Buyer's Broker, and any other parties to the transaction. Once the Deeds have been recorded with the County, the Buyer's agent will be authorized to deliver keys to the Buyers so that they can begin the process of moving into their new home!

Congratulations! Now that you have completed the home purchase process, you are ready to enjoy all of the benefits that homeownership provides. If you have any questions, you can always contact your loan officer or Realtor - they will be happy to assist you!

Kevin Hancock
Loan Officer
License # MLO-108328

at

360.698.6478 office
206.849.6326 cell
425.283.4642 fax
kevin.hancock@legacyg.com
Please visit our new website at www.hancockmortgageteam.com

Putting the "Fun" in Funding Fee

Fri, 03 Jun 2011 17:39:31 -0700

PUTTING THE "FUN" IN FUNDING FEE

If you have ever considered using your VA Home Loan Benefit, you may have heard about the "VA Funding Fee". There are a lot of rumors and misinformation about who pays the funding fee, and where it goes, but we hope to clarify things with the help of the VA Lenders Handbook (http://www.benefits.va.gov/warms/pam26_7.asp) and the VA Regional Loan Center in Denver, CO.

In order to defray the cost of administering the VA home loan program, some veterans must pay a funding fee to VA at loan closing.

The VA lender must verify the status of any veteran who may be exempt from paying the funding fee, determine the amount of funding fee owed by any non-exempt borrower, and collect the appropriate amount for payment to the VA. The funding fee may be paid from loan proceeds or cash from the Borrower.

Congress may periodically change the funding fee rates to reflect changes in the cost of administering the program, or to assist a certain class of veterans.

Persons who are exempt from paying the funding fee are:

•· Veterans receiving VA compensation for service-connected disabilities (there is no 10% minimum requirement, but compensable disabilities less than 10% are rare)

•· Veterans who would be entitled to receive compensation for service-connected disabilities if they did not receive retirement pay.

•· Veterans who are rated by VA as eligible to receive compensation as a result of pre-discharge disability examination and rating.

•· Veterans entitled to receive compensation, but who are not presently in receipt because they are on active duty.

•· Surviving spouses of veterans who died in service or from service connected disabilities.

If the veteran's exempt status cannot be verified prior to loan closing, the funding fee must be remitted as if the borrower was not exempt. If it is later determined that the veteran borrower was exempt from the funding fee, VA will refund the funding fee. It is also advised that the veteran contact the VA RLC to request a refund if it is later determined that the veteran is entitled to compensation retroactively to a date prior to loan closing.

If it is determined that the Veteran Borrower is not exempt from paying the funding fee, the fee is determined by applying the appropriate percentage (derived from the VA Funding Fee Tables) to the Borrower's loan amount.

The most common funding fee is 2.15% for active-duty/first-time use, but there are 3 major factors that contribute to determining how to apply the Funding Fee tables to each Borrower's situation. The first question is whether the Borrower was a member of the Regular Military or the Reserves/National Guard. The second question is whether or not the Borrower will be making a down payment. The third question is whether or not this is a first-time use, or a subsequent use of the VA home loan benefit. In all scenarios, funding fees currently range from 0.5% to 3.3%.

NOTE: I ORIGINALLY WROTE THIS ARTICLE FOR KITSAP NAVY NEWS (http://kitsapnavynews.com/blog/dispelling-the-va-home-loan-funding-fee-commentary/633/), BUT I THOUGHT IT WOULD BE SUITABLE TO POST HERE ON AR AS WELL.

For more information about VA guidelines, please contact your mortgage lender or consult the VA Lenders Handbook. We look forward to serving you!

Kevin Hancock
Loan Officer
License # MLO-108328

at

360.698.6478 office
206.849.6326 cell
425.283.4642 fax
kevin.hancock@legacyg.com
Please visit our new website at www.hancockmortgageteam.com

Step 9 in the 10-Step Homebuying Process

Wed, 30 Mar 2011 20:01:47 -0700

Step 9. Signing - The buyer and seller will be contacted for signing appointments to sign and review the appropriate documents. In the State of Washington, the buyer and seller will sign separately. This is a different process than you may experience in a "table funding" state. The buyer's closing funds are deposited with escrow when the closing papers are signed.

The signing will typically take place at the office of the escrow company that is being used for your transaction. The selection of the escrow provider is dictated by the purchase and sale agreement between you (the Buyer) and the Seller.

If the escrow company does not have a local or convenient office location, they may dispatch a "mobile notary" or "mobile signer" to meet you at a more convenient location, such as your lender's office or your Realtor's office. We do not recommend meeting for signing in a public place such as a coffee shop, as there may be too many distractions to allow you to have a comfortable experience.

It is typically a good idea to confirm the location (address) of the office for the signing appointment, as some escrow companies have more than 1 office within a short distance of one another. Make sure that you know how to get there, as well as any special parking arrangements that need to be taken into consideration. Punctuality is very important because the Escrow closer who is handling your signing appointment may have multiple appointments scheduled for the day. It is very important to be ready for your appointment at the allotted time.

It is up to you decide if it is appropriate to bring children with you to your signing appointment. It is often helpful for you to be able to focus on the documents you are signing to make sure that you are comfortable and have the opportunity to ask questions. Older children may be able to entertain themselves quietly, and babies may be able to sleep through the appointment, but small children or toddlers are often bored and can become disruptive during the signing process. The closer will always work to accommodate your needs in a polite and professional manner, but it may be in your best interest to arrange for child care.

We recommend that you block 2 hours of your schedule for your signing appointment. This should give you plenty of time to review your loan documents and ask any questions that you may have for the escrow closer, your loan officer, or your Realtor.

It is important for you to bring a valid photo ID (typically a drivers license or Military ID) to your signing appointment. The escrow closer will take copies of your ID to include with the document package for Notary and verification purposes.

The actual signing appointment will typically take place in a private office or conference room, free from distractions with plenty of room to spread documents, pass them around for signing, and keep them in order. The closer will typically give you a brief summary of the information contained in each of the forms that you will sign at closing. Documents are somewhat standardized, and contain a fair amount of "jargon", but the closer can usually summarize each form relatively quickly.

***Please note that if you intend to read every word of every document you sign, it could take 3-4 hours to get through the loan package. Special arrangements can be made to allow you to review the documents before arriving for your signing appointment. Please contact your loan officer and escrow closer for more information.

Once all of the documents are signed, your escrow closer will notarize the necessary documents, and provide you with a copy of all of the documents that you have signed. Assuming that there are no further questions or concerns at this point, you will be ready to proceed toward the final step in the process, CLOSING!

Kevin Hancock
Loan Officer
License # MLO-108328

at

360.698.6478 office
206.849.6326 cell
425.283.4642 fax
kevin.hancock@legacyg.com
Please visit our new website at www.hancockmortgageteam.com

Step 8 in the 10-Step Homebuying Process

Mon, 28 Feb 2011 14:37:10 -0800

Step 8. Loan Documents to Escrow - Having the Mortgage Documents sent to escrow is a major step in the homebuying process. The loan is fully approved at this point, so there isn't much left to "stress" about. This is the point where it becomes possible to determine, with the help of your loan officer and Realtor, the exact closing date for your home purchase. You can then start making plans for moving trucks and be ready to arrange things like utility hook-ups and forwarding of mailing address.

The loan documents are delivered to the escrow closer to prepare final statements, escrow instructions and documents for the transfer of ownership. Once the closer has worked-up the documents, they will send a copy of the preliminary settlement statement to your Loan Officer for review.

The Loan Officer's job is to make sure that their intentions for the details of the loan closing have been communicated through the closing instructions and accurately reflect all deposits made by you (the buyer) up to this point. This will typically result in a remaining amount needed to close, but it may also yield an amount of deposits to be returned if the seller is paying your closing-costs.

Once the Loan Officer has reviewed the HUD, and made any corrections if needed, they will contact you to review the figures. The Loan Officer may not tell you the exact amount of funds needed or the form required (typically a cashier's check or wire instructions) because that is usually communicated directly by the escrow closer when the signing appointment is made. Once they Loan Officer has reviewed the figures with you, they will give the Escrow closer the go-ahead to contact you and schedule a signing appointment.

It is possible that there may still be some "Prior to Funding" conditions for your loan. The escrow officer will tell you when they set up the signing appointment, what last minute items might still be needed. These are usually easy items, like a new pay stub or an updated bank statement. Nothing to get alarmed about, but definitely things that you will want to bring with you to signing so as not to delay your closing.

Coming next... step 9: The Signing Appointment

Kevin Hancock
Loan Officer
License # MLO-108328

at

360.698.6478 office
206.849.6326 cell
425.283.4642 fax
kevin.hancock@legacyg.com
Please visit our new website at www.hancockmortgageteam.com

Step 7 in the 10-Step Homebuying Process

Wed, 09 Feb 2011 15:21:55 -0800

Step 7. Underwriting and Approval - Once your lender's processor has received the necessary appraisal, title, and insurance documents, your file will be submitted for underwriting.

Underwriting is usually handled outside of your loan officer's office (to avoid conflicts of interest between loan officers and underwriters), although the underwriter may contact the loan officer if there are any questions during the underwriting process.

If your file is "clean", straightforward, and well documented, your loan may be approved for documents right away. Often times there are details for which the underwriter will require additional documentation, called "conditions". Sometimes there are only 1 or 2 conditions, and sometimes there are 20 conditions. It just depends on how complicated your loan file is and how detailed your income and asset documentation are. The better the detail, the easier it is for your loan officer and his or her processor to packaged your file for a fast underwriting approval.

The key to getting conditions cleared is a quick response to your loan officer for any additional information requested. This could be anything from a letter of explanation to a copy of a canceled check. It is important to respond quickly because the sooner the conditions can be re-submitted to the underwriter, the fresher it will be in their mind when they go to review. If the underwriter has to wait several days to review the condition, they will have to spend additional time getting re-aquainted with your file.

Once the underwriter is satisfied that all conditions have been satisfied, and the loan has been structured and disclosed in a compliant manner, they will issue the final approval. This approval will authorize your loan documents to be drawn by the "doc" department!

Kevin Hancock
Loan Officer
License # MLO-108328

at

360.698.6478 office
206.849.6326 cell
425.283.4642 fax
kevin.hancock@legacyg.com
Please visit our new website at www.hancockmortgageteam.com

Step 6 in the 10-Step Homebuying Process

Tue, 25 Jan 2011 14:12:01 -0800

Your file has been ordered out, but your lender isn't sitting around waiting for the appraisal...

Step 6. File Processing and Pre-Underwriting - Once the file has been ordered out, your loan officer and his/her processor will continue working on your file to make sure that everything progresses smoothly. During this part of the process, it is important to respond quickly to any requests for information or documentation.

You may be asked to update information in your loan file including your most recent pay-stubs and bank statements. They will also work to document things like your earnest money deposit, down-payment gifts received, and verifications of rent and employment.

They will also work to confirm who you wish to use for your Homeowner's insurance. You can use any company you wish, and there is no additional cost added to the insurance premium by the lender. The lender will request an Insurance Binder from the provider you choose, and the coverage will be determined by you and your insurance agent. The lender will require that insurance coverage meets minimum requirements, but your insurance agent will be familiar with these requirements.

Please let me know if you have any questions.

Thanks!

Kevin Hancock
Loan Officer
License # MLO-108328

at

360.698.6478 office
206.849.6326 cell
425.283.4642 fax
kevin.hancock@legacyg.com
Please visit our new website at www.hancockmortgageteam.com

Step 5 in the 10-Step Homebuying Process

Mon, 17 Jan 2011 16:56:05 -0800

Step 5. Ordering of Appraisal, Title, and Escrow - Once the inspection is complete and the decision to proceed has been confirmed, it is time for your Loan Officer to request your Appraisal, Title, and Escrow services.

5-a. The Loan Officer will order the property appraisal on your behalf. The appraisal is not ordered directly, but rather contracted through a third-party called an Appraisal Management Company (AMC).

The Loan Officer will most likely request a cash deposit so that the funds are available to pay the appraiser as soon as the appraisal is delivered. Lenders request deposits because the appraiser needs to be paid whether a transaction closes or not. A Loan Officer is personally liable for any appraisals ordered for his or her clients, so it is important to make sure they receive deposits so that they are not financially responsible in the event that multiple transactions fail to close.

5-b. Title insurance is ordered from the company designated by the Buyer (you) on the Purchase and Sale Agreement. An Owner's Title Insurance Policy is purchased by the Seller to cover you as the Buyer. A Lender's (or Mortgagee's) Title Insurance Policy is purchased by you as the Buyer to cover the lender who will be providing the financing for the purchase.

Before closing a Preliminary Commitment for Title Insurance (title report) is provided to the Buyer and the Lender. It is important for you to review the title report to make sure that there are no items of record that will impair your intended use of the property. If you need assistance, your agent or an attorney can help you understand the title report.

The Lender will also review the title report to make sure that it's lien position for the new loan will be in first lien position and that there are no other matters that would affect the marketability of the property.

5-c. The Escrow service is also ordered from the company designated by the Buyer (you) on the Purchase and Sale Agreement. It is common for the Escrow and Title to be provided by the same company, but not exclusive.

Kevin Hancock
Loan Officer
License # MLO-108328

at

360.698.6478 office
206.849.6326 cell
425.283.4642 fax
kevin.hancock@legacyg.com
Please visit our new website at www.hancockmortgageteam.com

Step 4 in the 10-Step Homebuying Process

Wed, 12 Jan 2011 19:29:11 -0800

You've been pre-approved, and you're Real Estate Agent has helped you make an offer on a new home. It's time for your Home Inspection!

Step 4. Home Inspection - Once you have a home under contract, we always recommend that you hire a licensed and bonded home inspector to inspect the property on your behalf. The cost of the inspection is not typically considered a closing-cost, so it will be your responsibility as the buyer to provide a check for payment as soon as the service is complete.

You will want to attend the home inspection if possible, so that you can walk around the property and get a feeling for issues of the home's condition that may not be obvious to the untrained eye. If the property is in disrepair, this will give you an opportunity to re-negotiate the terms of the contract with the seller. Conversely, if the home is in excellent condition, the inspection will give you the piece of mind that you have made a good decision to purchase.

The home inspector can also identify areas of future concern, and may even offer advice on how to properly maintain the property once the purchase has closed.

Kevin Hancock
Loan Officer
License # MLO-108328

at

360.698.6478 office
206.849.6326 cell
425.283.4642 fax
kevin.hancock@legacyg.com
Please visit our new website at www.hancockmortgageteam.com

The greatest compliment we can receive is the referrals of your family and friends...

Step 3 in the 10-Step Homebuying Process

Thu, 06 Jan 2011 19:41:05 -0800

Step 3. Home Search - You and your Real Estate agent are now ready to go and search for a home. First-Time Homebuyers often wonder if they need to use a Real Estate Agent, especially if they have friends or relatives who they feel can guide them through the process.

We always recommend working with a Licensed Real Estate Agent for many reasons, but here are 4 of the biggest:

•1. You want a professional to guide you through the transaction. Friends and family are great, but they don't have the experience, tools, or legal knowledge necessary to ensure that your best interests are protected.

•2. You can't access the information in the Multiple Listing Service (MLS) on your own.

•3. Your agent will write and present offers on your behalf.

•4. As a buyer, you aren't even responsible for paying for the services of your agent. Buyer's agents are paid by property sellers.

Once a specific property is identified, your Real Estate Agent and Loan Officer will work together get your offer presented to the seller. A good loan officer will communicate with your Real Estate Agent directly to make sure that your best interests are being represented with any offers written on your behalf. The Loan Officer can also provide a Pre-Approval letter to your Real Estate Agent to directly match your offer and give you the most negotiating power possible.

Once an offer is accepted, your Purchase and Sale agreement will be "signed around" and submitted back to your loan officer to continue the purchase process.

Step 4 coming Monday!

Kevin Hancock
Loan Officer
License # MLO-108328

at

360.698.6478 office
206.849.6326 cell
425.283.4642 fax
kevin.hancock@legacyg.com
Please visit our new website at www.hancockmortgageteam.com

Step 2 in the 10-Step Homebuying Process

Wed, 05 Jan 2011 16:53:49 -0800

Step 2. Pre-approval- The 2nd step in the Home-buying process is Pre-approval. This can be done along with your initial consultation, or it can be done at a later date.

2-a. The first step toward pre-approval is to fill out a loan application. This can usually be done either in person, over the phone, or online through your lender's website. Here is the link to our online application.

Applications done in person, at the lender's office, typically take a little bit longer because the circumstance usually results in more question and answers. An in-person consultation can be highly beneficial to the Borrower, especially if it is a joint application (husband and wife, for example) and both Borrowers would like to be involved in the mortgage planning process.

2-b. Once the application is near completion, your Loan Officer will use the information you have provided to pull a copy of your credit report. A mortgage credit report consists of information gathered from all three Credit Bureaus (Equifax, Experian, and Transunion). As a borrower, you will typically have a different score with each Bureau. These scores range from 350 to 850, with 850 being the best possible score. For the purpose of pre-approval, the Loan Officer will use the middle of the three scores. Credit reports are typically valid for 90 days, at which point they will be updated for accuracy. This is why it is very important to monitor and maintain your credit throughout the home-buying process. Never neglect your credit or make late payments because "my score has already been checked".

2-c. The next step toward pre-approval is providing the documentation requested to the Loan Officer. Once the Loan Officer has reviewed all of the documentation to accurately determine your income and asset levels, they will be able to issue your pre-approval. Once the Loan Officer completes your pre-approval, you will want to make sure that you review the terms (purchase price, loan amount, payments and closing costs) so that you know how you want your Real Estate Agent to write your offer.

Visit again soon to learn about Step #3

Kevin Hancock
Loan Officer
License # MLO-108328

at

360.698.6478 office
206.849.6326 cell
425.283.4642 fax
kevin.hancock@legacyg.com
Please visit our new website at www.hancockmortgageteam.com

The greatest compliment we can receive is the referrals of your family and friends...

Step 1 in the 10-Step Homebuying Process

Tue, 04 Jan 2011 15:04:19 -0800

Step 1. Initial Consultation - The first step in the process is to meet with a mortgage lender to discuss your goals and needs. This is a great opportunity to get all of your questions answered regarding financing and buying real estate. It is also the time where your lender will get to know more about you so that they can begin the process of determining which loan program will best suit your needs.

Some of the questions the lender may ask would be:
1. What do you do for a living? How long have you worked there?
2. Do you get paid hourly or salary?
3. Do you have any down payment funds available? Do you plan on receiving a gift from your parents?
4. Do you have funds available to pay the closing costs for a purchase transaction?
5. Have you looked at your credit recently? Do you know approximately what your scores are?
6. How much do you currently pay for rent?
7. How much of a monthly mortgage payment will you be able to make comfortably?

If you already know that you don't want to have a monthly payment higher than $xxx.xx, now is a great time to let your lender know. Based on your needs, the lender can give you a good idea of what price range you will be looking at and what your estimated payments will be for homes in that price range.

BASIC INFORMATION:

One Months most recent pay stubs for all borrowers
2009 & 2008 W-2's for all borrowers
Complete Personal Tax Returns for the past 2 years - All pages/ all schedules
Bank Statements for past 2 months - All accounts, all pages
Investment Statements (including IRA's, 401(K) and TSP if applicable) for past 2 months - All accounts, all pages
Homeowner's Insurance Information (Agent's name / phone#)

IF APPLICABLE: Please disregard items that don't apply to you

Copy of Divorce Decree
Official Order of Child support (paid or received )
Copy of Bankruptcy Discharge and schedule of creditors (if Bankrupt within the last 7 years )
Copy of the Promissory note(s) on all current mortgages
Rental Agreements for all investment properties
Tax statements and insurance statements for investment properties
Copy of current mortgage statement(s) to verify escrows
Landlord info for Verification Of Rent if borrower is currently renting
Documentation for any other income sources- call if you need clarification
2010 Award letters for Social Security, pensions, Military disability, etc.

IF SELF EMPLOYED:

Complete Business Tax Returns for the past 2 years - All pages/ all schedules and K-1s
Most Recent YTD Profit and Loss statement
Copy of 2 years business license

FOR VA LOANS:

Statement of Service (Commander's Office) for active duty, OR DD214 (member 4 copy) for non-active duty
Certificate of Eligibility (if you have it, otherwise we can request it on your behalf)
Copy of Note and Deed of Trust for VA refi
VA Disability statement, if applicable, reflecting percentage of disability

This is also a great time to educate yourself about which home loan programs are available. Some of the programs commonly available to first-time home-buyers are FHA, VA, USDA, House Key (in Washington State), and Conventional loans. Your loan officer can advise you about which of these programs you qualify for, and the differences between the different programs.

Stay tuned for Step 2!!

Kevin Hancock
Loan Officer
License # MLO-108328

at

360.698.6478 office
206.849.6326 cell
425.283.4642 fax
kevin.hancock@legacyg.com
Please visit our new website at www.hancockmortgageteam.com

The greatest compliment we can receive is the referrals of your family and friends...

The 10-Step Homebuying Process

Tue, 04 Jan 2011 14:51:38 -0800

There is much agreement in the Real Estate circles that 2011 will be a year of increased homebuying. According to a recent article on Fortune.com, "In November (2010), the share of home purchases by first-time buyers surged to 37.2% from 34.4% the previous month, according to a monthly survey by Campbell/Inside Mortgage Finance, which tracks mortgage and housing industry trends."

The website of the National Association of Realtors says that "Existing-home sales are projected to rise about 8 percent to 5.2 million in 2011 from 4.8 million in 2010″.

Mike and I thought this would be the perfect time to educate or remind homebuyers how the home purchase process works from the Lender's perspective. If you are one of the millions of Americans that plans to buy a new home this year, or you are just curious, we encourage you to read each installment in our 10-Step Homebuying Process Series, and let us know if you have any questions or feedback. Step 1 will be posted shortly, with subsequent installments posting daily.

We look forward to working with you!

Legacy Group Silverdale Secret Santa

Thu, 23 Dec 2010 13:37:01 -0800

I couldn't resist posting a picture from yesterday's Secret Santa festivities here in the Silverdale office:

What a great group to work with! I made out like a bandit - my secret santa got me some really cool camping gear!

Christmas Cheer from the Housing Sector

Wed, 22 Dec 2010 14:54:55 -0800

A little Christmas cheer from the housing sector:

Existing Home sales numbers arrived for November at 4.68M, better than expectations, as well as a nice pick up from October's numbers of 4.43M. Additionally, the inventory of unsold home declined to a 9.5 month supply, a good drop from the prior months 10.5 month supply.

Encouraging news, as it shows that sidelined buyers are starting to dip their toes in the water - and with rates still relatively low, combined with affordable home prices, it remains an incredible time to buy!

(The Christmas Tree in the Legacy Group Silverdale Office)

I'm a Celebrity

Thu, 14 Oct 2010 15:17:30 -0700

I'm a celebrity now... although I don't consider myself a "foreclosure expert". I was quoted in a great article written for the local paper though. Check it out:

http://www.kitsapsun.com/news/2010/oct/13/hang-onto-your-paperwork-foreclosure-experts/

Kevin Hancock

Loan Officer

License # MLO-108328

360.698.6478 office

kevin.hancock@legacyg.com

Please visit our new website at www.hancockmortgageteam.com

Is History repeating itself... AGAIN?

Tue, 21 Sep 2010 21:18:35 -0700

I just read an article in Time Magazine that literally left me shocked. I could not belive what I was reading. I can't paste the entire article here in my blog, but I am going to take some key excerpts for you to read before clicking the link to the article at the bottom of this post.

The article that I read is titled "The Long haul: the US Economy", and was written my Thomas McCarroll, William McWhirter, and Richard Woodbury. Obviously our economy is not in great shape, but I think you will be surprised by what you learn from the following excerpts:

"Nothing in memory has prepared consumers for such turbulent, epochal change, the sort of upheaval that happens once in 50 years."..."In a normal rebound, Americans would be witnessing a flurry of hiring, new investment and lending, and buoyant growth. But the U.S. economy remains almost comatose a full year and a half after the recession officially ended. Unemployment is still high; real wages are declining."..."The current slump already ranks as the longest period of sustained weakness since the Great Depression."...

"That was the last time the economy staggered under as many "structural" burdens, as opposed to the familiar "cyclical" problems that create temporary recessions once or twice a decade. The structural faults, many of them legacies, represent once-in-a-lifetime dislocations that will take years to work out. Among them: the job drought, the debt hangover, the defense-industry contraction, the savings and loan collapse, the real estate depression, the health-care cost explosion and the runaway federal deficit. "

"How to fix the broken parts of the economy has not only become a central issue of the presidential campaign but is also likely to stand as Topic A for much of the (future). Quick fixes will not work, a point that many Americans seem to be accepting."

"America's structural burdens have hit home most profoundly in terms of jobs. The U.S. workplace is "in a profound, historic state of turmoil that for millions of individuals is approaching panic," according to labor consultant Dan Lacey, publisher of the newsletter Workplace Trends. Official statistics fail to reveal the extent of the pain. A comprehensive tally would include workers who are employed well below their skill level, those who cannot find more than a part-time job, people earning poverty-level wages, workers who have been jobless for more than four weeks at a time and all those who have grown discouraged and quit looking."

This article continues on with much of the bad news that we have heard over and over again in the last few years. Why am I bothering to repeat it you ask? Because this article was published in Time Magazine on Sep. 28, 1992. Yes, you read that correctly, almost 18 years ago.

link to the original article: http://www.time.com/time/magazine/article/0,9171,976602,00.html

I was motivated to go and look this up after Barry Habib referred to it at a public mortgage market event I attended in Bellevue, WA. He gave only a small excerpt, and I couldn't believe that something so closely resembling our current situation could have been written so long ago. I had to go to the TIME website and search it out in the archives, but there it was. I think it is a fascinating article and I wanted to share it with as many people as possible. I highly encourage you to read the entire story because there are many more statements that seem as though they could have been written yesteday or last year.

I think it is critical for us to understand that as much as we may feel like the "sky is falling", and "this time it's different", we have been down this road before. Obstacles that seem insurmountable will be overcome. Real Estate values will recover.

Makes you think, doesn't it...?

Kevin Hancock

Loan Officer

License # MLO-108328

360.698.6478 office

kevin.hancock@legacyg.com

Please visit our new website at www.hancockmortgageteam.com

The NEW RULES for a Smooth Loan Approval

Wed, 04 Aug 2010 20:44:42 -0700

When we meet with a client, one of the many pieces of information we give them is a one page sheet titled "TIPS FOR A SMOOTH LOAN APPROVAL".

This is a list of helpful tips to ensure an effortless loan process. These DO's and DON'T's will help avoid any delays with your loan approval.

Because of what is known as the Fannie Mae Loan Quality Initiative, we are going to make some changes to our previous verbiage. The reason for this is that FNMA is now requiring that a new credit report be pulled just before closing to ensure that the Borrower's credit "situation" has not changed since the beginning of the transaction. I guess they were finding that it was common for Borrower's to take on new debt before their mortgages closed, which contributed to higher rates of default. They are not requiring that new credit scores be issued (which could have really been an issue due to the complexity of the scoring models), but rather requiring a non-scored report with updates on all of the trade lines.

What we have been told is that underwriters are looking not only for new accounts, but for existing accounts where the balance and/or monthly payment has *changed* since the original report used for underwriting was pulled. Some loan officers have said that it should only be an issue if an account balance increased, but I am sticking with changed at all because I can see a scenario where an underwriter would say "where did they get the money to pay that account balance down by $5,000?", which would open a whole new can of worms.

Because of these changes, here is the new list of rules for Smooth Loan Approval:

DON'T use any credit accounts in a way that will result in a change of more than $100 from what shows on

DO continue making you mortgage or rent payments

DON'T make any major purchase (car, boat, fur, jewelry, etc.)

DO stay current on all existing accounts

DON'T apply for any new credit (even if you seem pre-approved)

DO keep working at your current employer

DON'T pay off charge offs/collections without a discussion with us first

DO keep your same insurance company

DON'T buy any furniture

DO continue living at your current residence

DON'T close any credit card accounts

DO call us if you have any questions

DON'T take out another loan

DON'T start any home improvement

DON'T finance any elective medical procedure

DON'T open a new cellular phone account

DON'T pay off any loans or credit cards without discussing it with us first

If you encounter a special situation, it is best to mention it to us right away so we can help you determine the best way to achieve your goals.