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primary residential mortgage: Your Loan Is Approved, Now Please Don't Change Anything! - 05/03/11 06:44 PM
During a typical 30-day escrow period, there is ample opportunity for a potential home buyer to unwittingly sabotage his or her deal.  Until the keys are in the buyer's hands, there are still several things that can cause a deal to unravel, even at the very end.  Let's take a quick look:
Credit Issues:
These days, a buyer's credit is monitored until the end.  Not only will the lender find out if a new account is opened, but also if anyone else even inquired into the buyer's credit after the lender's credit inquiry.  If the new furniture will require financing, best … (3 comments)

primary residential mortgage: RatePlug Is Expanding To Los Angeles And Orange County - 04/17/11 05:07 PM
RatePlug will soon be offered in LA and Orange County.
The Internet? Is that thing still around?  The internet has obviously helped our businesses grow, but it also has created some frustrating moments. Keeping a client's attention has become far more difficult due to the ease that information is available on-line. With just a click of the mouse, a potential client can find someone else to provide your services.
By now, most everyone has heard of RatePlug, a recently developed lender sponsored (as in free to you) program that combines property listing information with current mortgage payment options. Having mortgage … (4 comments)

primary residential mortgage: Rate Vs. Price Reduction...And FHA Loans...Tick Tock Tick Tock - 04/06/11 05:44 PM
The FHA mortgage insurance premium increase date is fast approaching.  Today is April 6th and you must have an FHA case number assigned prior to April 18th to avoid the increase.  Read more: FHA To Increase Mortgage Insurance Premiums.
HOWEVER!!!!! The FHA Connection, the online engine that lenders use to access FHA case numbers, etc, is not available on the weekends.  So, April 15th is the actual date!!!  Is your lender aware of that or does he/she say things like, "my processor handles those kinds of things, they'll take care of it Monday."
I wrote this a couple weeks ago...
I … (0 comments)

primary residential mortgage: Buyer Has An Accepted Contract, Now What? - 03/29/11 02:26 PM
As we all know, it is a full documentation lending world these days.  Aside from the "known" paperwork required to even get pre-approved, there are some other items that prospective homebuyers should be ready to provide once they are actually in escrow.
Credit Card Information for the Appraisal Order:  
For Conventional and FHA loans, appraisals are ordered online through appraisal management companies' websites and must be paid at time of ordering.  Real estate agents may also pay for their client's appraisal, but a credit card will still be required.  VA appraisal fees are paid at closing.
Proof Earnest Money Deposit … (6 comments)

primary residential mortgage: The Blame Game Is Tiresome, Don't Be That Guy! - 03/25/11 02:07 PM
Every real estate transaction involves a number of people.  The real estate agents, the title company, the escrow company, buyers, sellers, the lender, etc.  We are all supposedly on the same team. 
Unfortunately, some members of "The Team" are quick to point out other member's shortcomings, especially if things start going south.  They forget that we all have the same goal: close the deal. 
If you make a mistake, own up to it, apologize, and find a solution.  I try to partner with industry professionals who share this same concept.  The "blame game" is tiresome - don't be that guy!   
 
… (8 comments)

primary residential mortgage: Can You Get A Home Loan Today? - 03/21/11 07:09 PM
Changes in the housing and mortgage industries have prompted many people, including the media, to wonder: Can you get a home loan today? The answer is simple: Yes!Despite the negative headlines over the past year, there's actually plenty of money available for loans. However, mortgages must make sense in today's terms - not the looser standards permitted by lenders several years ago. What does this mean to borrowers today?  Lenders have returned to a pre-2000 mindset - a kind of "common-sense lending" that seeks long-term success versus short-term profits. That means lenders need documented evidence that a borrower is creditworthy and … (0 comments)

primary residential mortgage: Buying A Home Should Be Fun! - 03/15/11 07:40 PM
Unfortunately, the process can also be very stressful. Here are a few things to keep in mind when looking for a home that can help the process go a little smoother and hopefully keep it fun.
Firstly, find a real estate professional with whom you connect. Home buying is both a financial and emotional commitment and it is critical that the real estate professional you choose is not only highly skilled but also a good fit with your personality. 
Just as important is to find a competent mortgage loan officer, someone that keeps up with the ever changing mortgage market.  Someone … (0 comments)

primary residential mortgage: You Can Wait, But Don't Shoot The Messenger - 03/13/11 08:47 PM
My post: FHA Mortgage Insurance Increase...Have You Refinanced Yet? seems to have driven the point home that now is the time. Remember, lenders will be compensated differently after April 1st, 2011, than they are now and word is that we will lose flexibility in pricing. No flexibility, higher rates. Period.
I wrote a post last week, FHA To Increase Mortgage Insurance Premiums, and I mainly focused on the effect that the increased annual FHA mortgage insurance premium (paid monthly) will have on a buyer's housing expense for FHA case numbers assigned on or after April 18, 2011.
For a purchase … (2 comments)

primary residential mortgage: Please, May I Pay Mello Roos? - 03/13/11 08:38 PM
Have you ever heard of Senator Henry Mello or Assemblyman Mike Roos?  In 1982, they co-authored the Community Facilities District Act, otherwise known as Mello-Roos.
After Prop 13 was passed in 1978, which limits the ability of local governments to use property taxes to construct public services and facilities, i.e., infrastrusture, new ways to fund public improvements needed to be found. 
Mello-Roos are a special property tax on real estate imposed on owners within a Community Facilities District to help develop infrastructure in newly developed areas.  These areas are very common in Southern California.  This infrastructure includes:
Streets Water Sewage and drainage … (2 comments)

primary residential mortgage: Divorce And Your Credit - 03/13/11 08:20 PM
Not the most fun topic, but chances are you know someone who is facing the challenges of divorce. Going through this process can be emotionally and financially difficult especially when real estate is involved.
Failing to address important credit issues, however, will only make things worse. Remember, a divorce decree does not absolve credit contracts or relieve responsibility for any and all debt incurred during the marriage. The following is a proactive plan to maintain healthy credit both during and after a divorce.Know Your Credit: Obtain copies of credit reports from all three bureaus right away (Experian®, Equifax, and TransUnion®). Organize … (7 comments)

primary residential mortgage: Rate Vs. Price Reduction...And FHA Loans - 03/13/11 08:10 PM
I wrote a post late last year regarding one of the possible disadvantages of waiting to buy called Rate Vs. Price Reduction.  It was short but sweet so here it is:
"Since the Fed's Mortgage Backed Securities purchase program ended, the markets have seen much more volatile price swings...and rates overall are off their lows.  For potential buyers who are waiting to see if home prices come down a little more, that means the wait could cost more money in the long run.Here is an example: Let's say a home buyer finds a home that he likes for $400,000.  The buyer wants a better deal on … (0 comments)

primary residential mortgage: RatePlug, An Additional Lender Provided Tool - 03/13/11 07:56 PM
The Internet? Is that thing still around?
The internet has obviously helped our businesses grow, but it also has created some frustrating moments. Keeping a client's attention has become far more difficult due to the ease that information is available on-line. With just a click of the mouse, a potential client can find someone else to provide your services.
By now, most everyone has heard of RatePlug, a recently developed lender sponsored (as in free to you) program that combines property listing information with current mortgage   payment options. Having mortgage information directly on your listing allows homebuyers to view rate and payment … (0 comments)

primary residential mortgage: Before You Read Too Much Into The Title, Remember That Rates Are Still FANTASTIC! - 03/04/11 07:57 PM
Finally, I have your attention.
Investors continued to closely watch the events in the Middle East, but there were few new developments there during the week.  As a result, this week's important economic data had the greatest influence on mortgage rates.  Daily rate volatility was high as investors reacted to the major economic reports, but mortgage rates ended the week essentially unchanged. 
Stronger than expected economic data during the week caused investors to prepare for the possibility that the economy is growing more rapidly than expected.  Weekly Jobless Claims dropped to the lowest level since May 2008, and mortgage rates … (7 comments)

primary residential mortgage: Mortgage Rates End Lower On Middle East Unrest - 02/25/11 07:20 PM
Unrest in the Middle East caused investors to seek relatively safer investments such as bonds.  As a result, mortgage rates ended the week lower.
The violence in the Middle East reached a much greater level this week, as Libyan leader Gadhafi fought to retain control.  Uncertainty about whether the violence will spread to other nations produced a "flight to safety", which means that investors shifted funds from risky assets such as stocks to relatively safer assets such as bonds. 
Higher demand for bonds, including mortgage-backed securities (MBS) helped mortgage rates improve.  Also as a result of the unrest in the … (2 comments)

primary residential mortgage: FHA Mortgage Loans With A FICO Of 500...Really? - 02/24/11 04:36 PM
One of the latest and greatest loan programs being pitched to anyone that will listen is an FHA purchase-money mortgage for buyers with credit scores as low as 500.  I know that this program has been around for a while, but the "big banks" are actually advertising it now.
BEWARE of any lender that tells you "no problem" for the lower credit scores.  The guidelines regarding derogatory credit are typically pretty strict and people with a credit score in the low 500's have that score for a reason.
We have our FHA Choice product which allows credit scores down to … (2 comments)

primary residential mortgage: FHA Mortgage Insurance Increase...Have You Refinanced Yet? - 02/23/11 03:06 PM
I wrote a post last week, FHA To Increase Mortgage Insurance Premiums, and I mainly focused on the effect that the increased annual FHA mortgage insurance premium (paid monthly) will have on a buyer's housing expense for FHA case numbers assigned on or after April 18, 2011. 
For a purchase price of $200,000 the increase will be about $40 per month.  For a purchase price of $400,000 the increase will be about $80 per month.  For a purchase price of $600,000 the increase will be about $120 per month.
Regardless of interest rates, people will always purchase homes.  Maybe not as … (0 comments)

primary residential mortgage: FHA To Increase Mortgage Insurance Premiums - 02/15/11 02:56 PM
I wrote a couple posts in August and September regarding HR 5981, a bill that was passed allowing HUD to increase the amount of the annual mortgage insurance premium for FHA insured loans.  On August 12, 2010, President Obama signed it into law, Public Law 111-229 (see Mortgagee Letter 2010-28).
Here are those posts: Changes To FHA Mortgage Insurance Premiums and FHA Mortgage Insurance Increase...And Decrease 
The law allows HUD to increase the annual mortgage insurance premium (paid monthly, known as MIP) up to 1.55% for properties with FHA case numbers assigned on or after October 4, 2010.  As of September, HUD was only … (2 comments)

primary residential mortgage: Mortgage Rates Higher This Week On Inflation Concerns - 02/04/11 03:18 PM
Inflation concerns hit bond markets this week.  Despite soothing comments from Fed Chief Bernanke, stronger than expected economic growth and higher commodity prices raised investor fears that future inflation may increase.  As a result, mortgage rates moved higher during the week, especially in the last two days.
Global economic growth has been picking up, particularly in developing countries, which has increased the demand for commodities.  Many developing countries already have had to deal with rising inflation, and readings in Europe have moved higher recently as well. 
In the US, Fed officials tend to focus on core inflation (which excludes food … (0 comments)

primary residential mortgage: FHA Tidbits - 01/26/11 04:14 PM
I was asked the following questions regarding FHA insured financing this past week and thought that the answers were worth sharing:
Q: Are modular homes treated in the same manner as manufactured homes?
A: Fortunately, no. Modular construction is also a factory-built home, but is treated the same as stick-built housing.

Q: Can the Upfront Mortgage Insurance Premium (UFMIP) be paid in cash or must it be financed into the loan?
A: The UFMIP must be either entirely financed into the mortgage or paid entirely in cash.  Along those same lines, a seller concession may be used to pay for … (0 comments)

primary residential mortgage: The Value Of Being Seen In Social Media - 01/23/11 10:12 PM
Wow! The Carlsbad CA branch of Primary Residential Mortgage hosted a CA Department of Real Estate (DRE) accredited continuing education seminar Thursday, The Value of Being Seen in Social Media, and what a success it was! 
The event was endorsed by the North San Diego California Association of Realtors (NSDCAR).  We had over 180 Realtors and other industry affiliates attend (that's right, we invited other lenders - we are all in this together!). 
"Kevin, thank you for inviting us to your class yesterday!  We have dabbled with social media in the past, but have been missing the tools to get to … (2 comments)