Mortgage Finance & Happenings in Kosciusko County

USDA LOANS are no longer quick

Sat, 15 Dec 2012 06:25:08 -0800

The USDA Rural Housing Loan has always been a great way for young buyers to get into a home. But over the last year this loan program has become a lengthy process timewise.

Standard procedure for a USDA would be that we (Ruoff the Lender) would underwrite and approve a USDA mortgage loan for a client and then send the file to a USDA office and they would in turn review the file and then issue their loan committment. This is the Guarantee and you don't close without it.

Here in Indiana, we used to be able to send the file to whatever regional office of our choosing, which was always the one that had the least amount of files in order to get a USDA loan committment back in a 48 hour turn time.

Now they all go to one central location and are farmed out from there. The new turn times here in Indiana are running 3- 4 weeks, but you never know when it will arrive. This is really making a mess for buyers and sellers trying to plan ahead for possession day of closing.

Just curious if fellow lenders or Realtors in other states are experiencing these delays also?

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Secure online application for all of Indiana

Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

Ketchikan & The Liquid Sunshine Gauge

Sun, 12 Aug 2012 05:27:54 -0700

Did you know that the fifth largest rain forest in the world is located in Alaska? The Tongass rain forest(17 million acres) is located in the vicinity of Ketchikan which gets average annual rain fall of 12.5 FEET! Here's the 2 story rain gauge that the downtown area has erected. We were there in Sept. and if you notice the salmon on the upper right edge of the gauge it's at 168" with 3.5 months still left in the year.

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Secure online application for all of Indiana

Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

I don't need a License - I need a Badge

Sat, 11 Aug 2012 08:17:26 -0700

Just when I thought that mortgage lending couldn't get anymore stressful and cluttered with Freddie & Fannie guidelines, bank overlays, MI companies & the government red tape.

I just finished a whole new round of mandatory training for government compliance.

SAR - Suspicious Activity Report
AML - Anti Money Laundering
BSA - Bank Secrecy Act

I now am required by law to report you to big brother if you bring me any kind of suspicious bank statements with unexplained cash flow.

These now go along with already in place : USA Patriot Act

I'm thinking that I don't need a license, I need a Badge. And you just thought you could promise to pay the loan back??? It's a strange new world..

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Secure online application for all of Indiana

Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

Another End of the Month & Closings!!!

Wed, 01 Aug 2012 12:47:25 -0700

Having just finished another hectic cramming to get closings done for the end of the month made me pause to reflect on the scheduling of closings. Like with everyone else, when you have double the amount of closings on a particular day than average, everything is last second and everyone is calling everyone asking where is my HUD1, are we going to make it?

As the lender, I try to accommodate the closing time that is stated on the Purchase agreement as much as possible. Yesterday got me to asking myself, why does it seem that the majority of the closing dates on purchase agreements are for Fridays or the last day of the month?

I wondered if this was just my assumption or was truly the case, so I looked at the last couple of months of our companies closing calendar. I would consider my company a mid-sized lender who closes approximately 150-180 loans a month. those breakdown to a average of 5-8 closings per day on a typical Monday-Thursday work day and amazingly 20-30 closings on Fridays and the last day of the month. Katie bar the the door if the month ends on a Friday!!!

I'm guessing that is pretty universally done like this everywhere. Realtors are writing a purchase offer on say the 20th, 23rd,26th and they just figure "We'll ask until the end of next month to close". OR "We'll give them 4,5,6 six weeks to close"," so Friday the *?*?* it is"..

Just some food for thought & a tip for making the last days less hectic: Wednesday closings on the (say) 6th day of the month are so easy and relaxed for everyone. Closings on (maybe) Tuesday the 16th are a breeze!!!

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Secure online application for all of Indiana

Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

One Big Bison !!

Sat, 28 Jul 2012 06:45:06 -0700

On a recent visit to Yellowstone, as we came into the park from the northeastern entry very early in the morning. I came around a curve traveling at about 40 mph to encounter this guy strolling in the middle of the road. I was able to get stopped about 20 feet in front of him,glad we were not traveling any faster. One big Bison !!

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Secure online application for all of Indiana

Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

Tough Work Day

Wed, 18 Jul 2012 19:25:32 -0700

BUSY day on tap for Thursday. New loan application,loan closing & review settlement numbers for a Friday closing. All needs to be done by noon. Then have a annual company day out with local Realtors on the SS Lily pad for 3 hour cruise on beautiful Lake Wawasee. Gonna be a Tough work day!!

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Secure online application for all of Indiana

Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

3 Tips for Building your Credit Score from Zero

Mon, 09 Jul 2012 18:25:37 -0700

Most mortgage lenders today base the borrower's eligibility guidelines for credit on their personal credit reports " FICO score". But how do you build a credit(FICO) score when you have never had any credit and no one seems to be interested in giving you credit. That can be a real "Catch 22" dilemma. Here are 3 tips for getting your score off the ground and moving upward to where you can hopefully be credit eligible for a mortgage loan in 9-12 months.

1.) Starter Loan - Go to your bank that you have a savings or checking account with and request a small starter loan, $300 -$500 should do the trick. If you don't bank with someone, start there by opening a savings account. Make the term of the loan short, 6 - 12 months. The bank will ask for you to deposit with them, an amount equal to the loan that you can not touch while the loan is outstanding but that's okay, this is their collateral for non payment. This type of loan, is called an installment loan and scores better than revolving(credit cards) debt.

2.) Secured Credit Card - Again, basically the same concept as #1 about working with your local bank and they will require a deposit equal to the card limit. Whatever limit you get, only charge up to 30% of the limit per month on the card and pay it off every month.

3.) If your parents are nicely established with good credit, ask them to put you on one of their credit cards as an Authorized user. They would not even need to give you a card or allow you to access it, but as an authorized user it will go on your credit report also. *Word of caution here* This works both ways, Positive or negative. If you are not absolutely positive that they pay off the card every month, do not go this route or it could hurt your credit or ratios when it's time to buy.

I might note here that if you have any outstanding negative collections, judgements or unpaid debt, that needs to be your first priority.

Follow these steps and in a year or less the banks will probably release your security deposit and the credit that you have established will open more opportunities for you in both available credit and the interest rates that you are charged.

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Secure online application for all of Indiana

Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

20 Smart Phone Apps To Make Your Real Estate Business Mobile

Thu, 21 Jun 2012 19:58:54 -0700

I have been a Android owner for 2 years now. I bought it to primarily receive emails while on the go. Not until recently have I begun to educate myself on smart-phone apps that are available to make my job so much easier. Many of the best ones for my business are described below in the excellent blog post by Ron Arnold of Orlando. Thanks so much for these useful tools Ron.

Via Rob Arnold, metro Orlando full service, investor friendly & foreclosure Realtor (Sand Dollar Realty Group, Inc.):

In 2008 I acquired my first "smart phone," a Blackberry. While the phone was great for quick access to email and internet, it was not set up well for using applications (commonly called "apps"). Last summer I upgraded to a Droid Incredible and have since been literally blown away at how much this technology can simplify your business (and life in general) as well as increase your productivity.

If you are a business person on the go and don't have a smartphone, I can honestly say that you have no idea how much you are missing out by not having one. I used to say that I didn't want to be "that accessible" where people could just text or email me via a cell phone to get a hold of me. But I have since embraced this technology to the fullest extent. It is fantastic that I can respond to people quickly without them ever knowing that I am out of the office (or half way across the country). All the while making my business run seamlessly and keeping the customers happy.

Here are 20 of my favorite apps that I have found and a quick rundown of how they have improved my real estate business. These are not in any particular order. All of these apps are available on the Android phone and most are available on a Blackberry or Iphone. And best of all, every app listed below costs you nothing. They are all FREE to download and use.

1. YouMail.  This is an incredible app especially for being free. I used this for probably a year on my Blackberry and now on my Droid. It allows you to have customized voice mail responses depending on who calls you. It identifies the caller by their caller ID and responds appropriately. But best of all, it sends the recorded voice mail to you in the form of an email. Then you can play it back and decide if you need to reply right away or respond later or whatever. This has been such a major time saver for my business that I cannot begin to describe how much I love this app. It also gives you caller ID by name like a land line does, so you know who called you even if they did not leave a message.

2. Call confirm. This is a great app to prevent you from dialing someone by mistake. Like when you "pocket dial" or accidentally dial the wrong person. It pops up an additional prompt to verify that you actually are trying to dial the number.

3. Cam Scanner. With this app, you can take a photo of a piece of paper like a document or a receipt. The app will format it so that it fits into a square or rectangle shape. Then clean it up so that it is reasonably legible. Then convert it into a PDF document that you can email, upload onto the web, Google Docs, etc. It is easier to use than a regular scanner device but not great for small print or multiple page documents. Still very cool.

4. Dropbox. Similar to Google Docs. You download the Dropbox free software onto your PC and then drag any files you want and put them in your Dropbox folder. All your forms from contracts to leases to spreadsheets get uploaded onto the Dropbox website. You now have all your files available right on your smart phone and can share these documents with anyone who has email or internet access. Talk about having a mobile office right on your phone.

5. Files Anywhere. Allows you to assemble documents about any way you can imagine. Free fax feature allowing you to fax a document from your smart phone to any fax number. Similar to having an eFax account except that it is free. (Also available to download onto your PC.)

6. Flashlight. There are tons of different apps for this. The one I use actually uses the camera's flash function to light up anything you point it at. This is great for looking around inside dark garages, attics, and boarded up houses without having to go fetch a flashlight out of your car.

7. Bubble. There are a bunch of similar apps for this as well. Who needs a level tool when you have one right here on your phone for free? Might not be great for a general contractor but sure is great for hanging a picture or seeing if a floor has a slant to it.

8. Metal Detector. You can use this to find metal pipes beneath drywall or underground. Or use it to find that nail that you dropped in the grass. Pretty amazing.

9. Surveyor. Measure room distances or property boundary lines with a quick click of the phone. Might not be great if you need precise accuracy but is great for a quick estimate.

10. Tango. This is similar to the Iphone-4 app. But it allows people with an Android phone to also communicate with Iphones and vice versa. Basically it is a camera phone. It plays live streaming video in between the 2 phones. A buyer in California or England could literally watch a live video of me walking through a house in Florida while I point the camera at various places and they ask questions. This could revolutionize the real estate business especially for foreign buyers.

11. Where. This app uses the GPS on your phone to find gas stations, ATMs, movies, businesses, and restaurants. You can also use it to "check in" at a location, check traffic conditions, weather, and get online coupons. Or if you don't want to use the GPS, you can simply enter a name or address either by typing it or speaking it to the phone. Most phones have several apps like this including Yelp, Poynt, and Yellow Pages. "Where" is more all-inclusive giving you more options and that is why I like it best.

12. Evernote. There are many apps that can perform this function. Instead of having to carry around a bunch of post it notes, scrap papers, to do lists, grocery lists, etc. Input all the info right onto your phone and then scratch them off as they are completed. Or have this app remind you via an alert when it is time to do a certain task. I have it beep at me 3 times a day to make sure I return all my phone calls and emails. You can even sync it with software on your computer.

13. Voice Recorder. There are many apps for this function as well. Instead of carrying around a tape recorder or a Dictaphone device for this, you can speak right into your phone. Great for taking notes about a property for later use. Also great for recording conversations.

14. QR Barcode Scanner. QR = Quick Response. This technology has been around for years. Now they are connecting your mobile phone directly to websites. I have written some previous blog articles about how QR codes are the way of the future. Just think of the possibilities. Somebody could scan a barcode on a house flyer, a magazine ad, or a yard sign and instantly pull up photos or videos or whatever you choose to connect them to on the web. There are even free smartphone apps available to create these QR codes.

15. Google Earth. If you have never seen Google Earth on a computer, you don't know what you are missing. Satellite views of any property on the planet. Street view maps of almost any street in the USA. If someone calls you up and asks about a house, you can literally use this app to see a satellite view, street view, and even virtually drive down the street and look at the neighborhood all from your smart phone. When a seller calls me about their property, I immediately pull up Google Earth and start looking at their home and their neighborhood using this virtual reality app.

16. Smarter Agent Real Estate. Pull up detailed property information including photos directly from your smart phone. Works right off your phone's GPS function. You can stand in front of a house and get detailed information about it right from your mobile phone. Remember those "Talking House" devices that emitted a radio transmission from the house - well this is very similar except there is no audio and no additional cost.

17. Realtor.com. Similar to Smarter Agent but has info from the #1 Realtor® website. Also the websites Homes.com and Zillow have similar real estate apps for viewing real estate online via the GPS in your smart phone.

18. Google Translate. Translates about every language you can imagine. From Spanish, English, and French to Mandarin Chinese or Swahili this can translate either by entering the text or speaking directly into the phone. How cool is that?

19. Bump. Exchange contact information simply by bumping the phones together. No more stacks of business cards lying around. It can exchange photos and Facebook info too.

20. Financial Calculator. There are a bunch of apps that can do this function. The one I use has 8 calculators in one. Besides a standard calculator, it can calculate restaurant tips, mortgage payments, time value of money, compound interest, credit card payments, currency conversion, and more.

            Some other apps that at least deserve honorable mentions are Slydial, ConvertPad, Super Ruler, iHandyCaprenter, Magnifying Glass, Pandora, Compass, and Car Locator. When you have some time check all these apps out. If you use these apps to the fullest you can save yourself a tremendous amount of time and eliminate so many of the tools that can cost a small fortune to the average real estate investor. I am always looking for the latest and greatest apps. So if you come across one that you think is truly fantastic, please let me know so I can share it online for everyone to see.

_ _

---------------------------------------------------------------------------------------------------------------------

Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

407-389-7318 / 1-877-389-7318 www.SDRhouses.com   www.WeBuyHousesFlorida.com

http://webuyhousesfl.wordpress.com

Our firm also provides flat fee MLS listings, For Sale By Owner, and menu-based services in most parts of Florida including Orlando, Altamonte Springs, Longwood, Apopka, Kissimmee, Clermont, Casselberry, Sanford, Lake Mary, and Deltona.

We sell foreclosure, short sale, and bank owned REO house home throughout Central Florida and metro Orlando. Sign up for our free email list of foreclosure and great Orlando house deals.

We buy unrepaired sinkhole damage houses in Florida. www.SellSinkholeHouse.com

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Secure online application for all of Indiana

Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

New Mortgage Fee's to pay for Payroll Tax Cut Extension?

Tue, 13 Dec 2011 21:23:30 -0800

A new idea to pay for the extension of the payroll tax cut is now being tossed around Washington. Members from both parties & both houses have been promoting a fee that will be charged to banks for the delivery of every mortgage loan that is sent to Fannie Mae & Freddie Mac.

While it is not a certainty, the fee's discussed would be equal to about 1% of the loan amount, which by my guess would cost the average borrower a 1/4% on their rate for the life of the loan. I ask you, how long do you think your tax cut extension will last?

I'm reminded of wise words from Ronald Reagan - The nine most terrifying words in the English language are: 'I'm from the government and I'm here to help.'"

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Secure online application for all of Indiana

Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

Do you offer "Insured Closing" like the Title Company?

Tue, 22 Nov 2011 11:22:25 -0800

One of the most frequently asked questions that I get from Real Estate Agents when Ruoff is conducting the actual closing of a purchase transaction is: "Are your closings insured like the title companies"? But what exactly is a "Insured Closing" ?

Once a loan is cleared to close and scheduled, our closing dept. will send to the local title company ( who will be acting as the Closing Agent) what are called closing instructions. These are instructions for many things including but not limited to:

Line items to be on the HUD1
Necessary documents that will need signed by all the interested parties
Who gets what of the accompanying funds.

In Indiana, we dispurse funds at the closing table. In return or beforehand in most cases,the title company will send us a ICL or CPL.

When a title company sends us and ICL or CPL (Insured Closing Letter or Closing Protection Letter) they are “insuring” us, as the lender that their closing agent will disburse our funds and follow our closing instructions. THAT is the definition of an insured closing. The only “insurance” is that the loan is closing according to the closing instructions. Therefore, our closing of our own loan is definitely insured!!

Bottom line, our closings are as insured as any title company in the state of Indiana, as we have licensed Closers and we have our own ICL and our own Error and Omission policies.

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Secure online application for all of Indiana

Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

Buy more house & avoid monthly MI premiums

Mon, 20 Jun 2011 13:51:36 -0700

If you are like most home buyers who begin their home search, they start by deciding "How much house" they can afford on a monthly basis. Once you have arrived at that figure, you can then calculate how much the overall price needs to be in order to stay close to that number.

There are normally 4 costs within the monthly mortgage payment (unless you are putting down 20% or greater). Those 4 costs are:

Principle & interest of the loan amount
1/12 th of your Homeowners insurance into your escrow account
1/12 th of your property Taxes into your escrow account
Monthly Mortgage insurance premium

Most people have heard of the "Dreaded" Mortgage Insurance( MI), commonly referred to as PMI or Private mortgage insurance. But were you aware that you can pay a upfront single premium MI and be done with this requirement? It can be paid upfront by you, the lender or negotiated into your purchase as a seller paid concession. In certain instances, the premium can even be financed into the loan.

As a general rule the cost of Single premium mortgage insurance is equal to what 30 months of the monthly premium would be.

Example: A $150,000 loan (95%) would have a monthly premium of $74 for approx. 12 years , or until you achieved 22% equity.That would amount to over $10,000 in premiums. But a upfront single premium would be $ 2175 and you are done.

Without this cost added to your monthly payment, you could get alot more house or shorter term on your loan.

************************************************************************************************

Secure online application for all of Indiana

Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

748 FICO & Never borrowered a dime ?? Yeah ,you're good to go !!

Tue, 15 Feb 2011 22:26:22 -0800

With today's more stringent lending requirements, it keeps getting harder & harder to get many potential home buyers approved for a mortgage.

HVCC appraisal guidelines, income & down payment verifications are just a few of the many issues that can trip you up along the way in the process from application to closing.

But the one place that we know is good enough or not from the very beginning is your Credit score, commonly referred to as your FICO score. All lenders and loan programs are credit score driven. Within reason, if your credit score hits a predetermined number, then you will probably be able to get a home loan. It has been set up this way, so that a software program can pretty much approve or deny your application.

So many a prospective buyer will have a credit score that is too low to qaulify because they had a joint account with a ex-spouse ,that was suppose to pay but didn't. Sometimes a person would co sign for a family member to get a loan, never considering the negative consequences when they are late on payments.

Today I had a prospective buyer who inquired about getting a loan although he had never borrowed any money or had any credit issued to him in his name. In our conversation, as I am inquiring about anything and everything that might be a positive, he indicated to me that although he had never used it, he was put on as a authorized user on one of his mother's credit cards. A authorized user is just that, someone that has permission to use the card, but they are not liable for the debt. With that I pulled his credit report and behold. His mother had a $8000 high limit and only carried a monthly balance of around $400 and because she had been very timely with all her payments over the 38 months that he had been an authorized user, he was able to piggy back on her credit and get the positive benefits from this. His three credit scores were 730, 748 & 758. Amazing, but he qualifies for a FHA loan. He is in the process right now of negotiating the contract price for his new home.

Moral of the story is, don't be so quick to assume that you wouldn't qualify for a home loan.

Call me today to discuss how I might help you.

Greg Miller

Loan Originator

Ruoff Mortgage

gregm@ruoff.com

www.ruoff.com

574- 268-9033

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Secure online application for all of Indiana

Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

No - No's during the Mortgage loan process

Thu, 03 Feb 2011 14:56:20 -0800

So you just met with your Mortgage Loan Officer and they indicated that your credit looks good,your debt to income ratios are okay and your asset statements validate that you have the necessary funds to bring to closing. All that is needed now is the appraisal to come back with a certain minimum number and we can submit to Underwriting for approval.

Most people feel like their work is done and all they have to do is prepare to move. Don't let your guard down. You are still under the credit microscope until the time you sign your closing documents.

Here are 4 potential pitfalls that borrowers don't consider as an issue, but they are.

• Don't change employment - Even if you are 20 years in the same field and just moved to the employer across the street, unless you have a employment contract the lender will want 30 days of pay from this employer before it will count. They will request a verification of employment again within 5 days of the closing.

• Late payments - Do not be late on any of your current loan payments. This could sabotage your approval.

• Do Not add any additional debt. If you do, you will have to go through the Underwriting process again and will have to qualify with your new debt to income ratio. If you do not qualify, your approval will be rescinded.

• Do Not have any new inquires on your credit report This could delay the closing or potientially change your approval. Lenders are looking for new debt. 90 days same as cash is still debt.

Lenders now will do what is called a "Soft Pull" on your credit report within 10 days of closing. any of the last 3 above that changes, will need to be addressed. The stories I could tell of the scheduled closings that did not happen because someone wasn't thinking. So just wait until you have closed to buy the new furniture.

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Secure online application for all of Indiana

Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

Interest Rate is the Wrong Reason to Choose a Lender

Fri, 21 Jan 2011 13:06:28 -0800

This is a very well written from Philip Faranda. While of course rate is an important issue, it should not be your only criteria when searching for a lender. Do they have their own Underwriters that make the loan decision or is it sent elsewhere? What are your closing costs? When can I expect my loan to close? Are you dealing with a person across a desk face to face, or someone in a cubicle 1000 miles away? The old adage that the cheapest is not always the best is certainly true here.

Via J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY:

In the almost 400 transactions I have brokered since first being licensed in the 1990s, anytime there was a problem with the mortgage and the buyer was asked how they chose their lender, I cannot think of one instance where they did not say some variation on the theme that the bank was chosen for quoting the best rate.

In the almost 400 transactions I have brokered since first being licensed in the 1990s, anytime we noted that a mortgage loan officer did a great job and the borrower was asked how they chose their lender, I cannot think of one instance where they did not say a variation on the theme that the lender was a referral from a trusted source.

Now, since I can point to dozens and dozens of transactions where the lender stunk and they were chosen for their rate, and there were also dozens of great jobs by lenders who were trusted referrals, the correlation strikes me as very strong that choosing a lender based on rate alone is inadvisable. Disclosure: I was a loan officer from 2001-2005.

Sadly, the "best rate" is a myth. The factors that go into locking a mortgage rate include the down payment, credit rating, debt to income ratio, length of the loan, and a variety of other matters which makes quoting a prospective borrower a rate on the first meeting without a full application irresponsible at best. Published rates are based on assumptions that are so ideal that most borrowers either don't qualify or must pay higher costs to achieve.

Moreover, rates vary on a daily and often an hourly basis based on the bond market and other financial indices, requiring extreme personal attention and knowledge of the transaction process to assist the borrower in "locking in" their rate at the correct time.

Lastly and perhaps the most bitter irony of it all is that most consumers don't understand that the lenders all operate in the same market for money. If you walk into the corner bank, Banana Funding Corp at the mall, or log onto Fancyrates.com and ask pricing on their 30 year fixed conventional rate for a conforming loan with 20% down payment, you may get different answers when you ask what rate you'll qualify for. But here's the truth: conventional loans have been bought on the secondary market by Government Sponsored Entities (GSEs) such as Fannie Mae and Freddie Mac for the same prevailing market rates since the Beatles dominated rock music. The only variations have ever been the profit margin. What's that mean to you? Simple: within reason, you can negotiate your rate.

With those factors in play, the smart consumer should therefore find the best, most trustworthy, service oriented lender they can find, who will work hand in hand with the real estate brokers, appraisers, title and attorneys, and who will be able to troubleshoot and navigate obstacles as they arise. This not only ensures a smooth transaction, it shields the borrower from bait and switch moves, junk fees, last minute changes, and the lack of accountability that we all too often see in web-based bargain lenders that raise screwing up deals to a high art.

Imagine that. You choose you lender the same way you choose the agent, attorney, inspector and plumber: the best person for the job. The numbers take care of themselves because a true professional will always watch out for you.

Subscribe to J. Philip's Real Estate Blog by Email

We Are Westchester County & Metro New York Real Estate. Reach Phil at (914) 723-8900.

J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. Vice President, Empire Access Multiple Listing Service.

I am one of New York's premier short sale REALTORS, serving Westchester, the Hudson Valley & Metropolitan New York.

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Secure online application for all of Indiana

Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

Grand Haven Sunset

Sun, 28 Nov 2010 20:21:17 -0800

In my humble opinion,there is nothing more awe inspiring than a magical sunrise or sunset. Just as the sun begins to fall and the world seems to get quieter, do I really have a sense of God's creation.

Many times from the exact same vantage point, no two are the same. One of my all time favorite spots to view sunsets is at the pier at Grand Haven Michigan. As you can see from this photo, clear skies are not always the best for sunset viewing.

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Secure online application for all of Indiana

Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

I Don't care if the foreclosure is "As Is"

Fri, 26 Nov 2010 10:27:25 -0800

Foreclosures are plentiful everywhere and our area in Northern Indiana is no exception. I love working with certain Realtors that handle a lot of foreclosures. They understand how to market these homes and what it takes to get a transaction to the closing table.

As for the others that occasionally list a bank foreclosure, there is one particular item that seems to be an obstacle on a lot of transactions. That is the need to have the utilities all on for the appraiser. For some reason most agents think that because they put the little words "AS IS" on their listing or on the Purchase agreement, they don't need to turn on utilities. A few points for you to consider:

Legal definition: AS IS - adj. description of a condition in a sales contract in which the buyer agrees to take the property (e.g. house, horse, auto, or appliance) without the right to complain if it is faulty. However, the buyer must have had the right to reasonable inspection, so that he/she has a chance to find any obvious deficiency.

On the Indiana Purchase Agreement - Unless you noted in writing to the contrary (that your client signed) the below verbage is on there. "As is" does not exclude this..

The Bank : Unless you are marketing this home as cash only or a FHA 203k rehabilitation loan. The appraiser will need to document the condition of the mechanical's. Obviously, they can not do this without utilities. No complete appraisal - no loan....

Realizing that there are times when this is not possible. Like when the previous owner took all the faucets, water heater,light fixtures, etc. Then it is a complete waste of everyones efforts to not market it this way as cash or rehab. loans only. Even if you find a naive buyer and inexperienced agent, unless they are paying cash, this will be an issue 2 - 3 weeks into the deal, when the incomplete appraisal comes in.

If your client (bank) is adamant about not turning on utilities, deal with this in writing at the time of negotiations. Not simply stating "as is" because that doesn't mean that you will not turn on utilities. It means that you are not fixing anything.

If this issue is going to end up being a deal breaker, it might as well be killed at the beginning, instead of 3 weeks into the transaction. That's when everyone is blaming everyone.

As a agent on the buyers side, it would be advisable to have this specific conversation with the listing agent in order to confirm that will be handled.

Curious if any Realtors or loan originators here on AR have had to deal with this stalemate and how you handled it?

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Greg Miller
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NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

Counting the Blessings

Tue, 23 Nov 2010 21:20:35 -0800

While the economic climate has been challenging at best the last 3 years, it would be very easy to think of the negatives and what did not always go as planned. But as this Thanksgiving holiday approachs, it gives pause to reflect on all the blessings in my life and to reflect on the many things that I am truly thankful for.

First and foremost is God who is always there. He sustains me,loves me,comforts me & reminds to always be looking forward and upwards.

I'm thankful for a loving wife and family. That my family and I are in good health. Thankful that I live in the greatest country in the world & thankful for the brave men & women who defend her.

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Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

What's Going on with Mortgage Rates?

Mon, 22 Nov 2010 17:48:16 -0800

After reaching the lowest levels in decades, mortgage rates have shot higher over the past two weeks. There is not a simple explanation for why this happened, but looking at the many factors which are influencing mortgage rates right now will help to understand what's going on. In short, when investors look ahead, they see few reasons for mortgage rates to move lower and many possible causes for them to move higher. The major negatives for mortgage rates include stronger than expected economic growth, domestic and foreign opposition to quantitative easing, and concerns about lower foreign demand for US securities.

Beginning in late August, the Fed hinted that they would initiate a new stimulus program to purchase Treasury securities, which is known as quantitative easing. In the short-term, Treasury buying by the Fed increases demand for bonds, including mortgage-backed securities (MBS). In anticipation of this added demand, investors purchased MBS, which pushed mortgage rates lower.

After the Fed's official announcement on November 3, mortgage rates began to move higher for a variety of reasons. Stronger than expected economic data caused investors to raise their outlook for economic growth, which generally leads to higher inflation. In addition, there was substantial opposition to the quantitative easing program from other countries and from many US politicians and economists, meaning that the Fed will face strong resistance to an expansion of the program. Investors had viewed the $600 billion initial level as a first step which would likely be increased in the future. Stronger economic growth and opposition to quantitative easing has reduced the likelihood that the program will be increased.

The recent news has not been uniformly negative for mortgage rates. Current inflation levels remain extremely low. In fact, the Consumer Price Index data released this week showed that annual core inflation dropped to a record low in October. Bottom line, though, when mortgage rates reached such extremely low levels, it left them in a position to reverse direction very quickly.

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Greg Miller
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NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

Mr. Prospect "YOU STINK"

Tue, 09 Nov 2010 16:43:08 -0800

I just had a 40 yr. old married couple drop by the office for a preapproval. I made introductions and invited them back to my office. At first I noticed a slight odor but tried to dismiss it. The moment we entered my office and closed the door, it hit me. This was not a slight odor, this was a down right nasty,take your breath away stink. It was hard to compose myself and keep from choking.

Needless to say, I did a qualification in record time. "Sup rise" I was not able to help them.

After they left, we opened doors,lit candles & went through a can of Lysol. I have been dealing with the public for 35 years and this was without a doubt the most uncomfortable encounter EVER..

To put it in real estate terms, my office is now "Stigmatized". My co-workers will not come in my office. When I called the referring agent to follow up and THANK HIM, he was busy fumigating his office.

I'm curious to hear from others that might have had such a memorable encounter. Did you throw them out? Did you stick it out?

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Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

USDA Rural Development loans are back!

Sat, 29 May 2010 19:19:03 -0700

Gerry Suarez, posted this article yesterday. Great news for buyers using USDA Loans

Via Thomas Mortgage, Florida's FHA Loan Pro:

The USDA issued a memo yesterday, May 26, 2010, reauthorizing the issuance of conditional commitments for USDA loans. What that means is that your better lenders (the ones that usually close USDA loans while funds are waiting to be allocated) will immediately be able to continue closing loans. The amount that has been authorized is $2.5 billion and it's expected that new funding will be available from Congress before this is exhausted (there are currently a few bills, but HR 4899 is the most likely to pass quickly- possibly by today).

Do know this money comes at a cost. Per the memo, lenders are asked to call their state USDA coordinators to determine the amount of the guarantee fee that will be charged. This fee was 2% and it is generally accepted that it will increase to 3.5%. This means any loans, regardless of when the application was taken, that receive their commitment to fund from these new dollars will have the higher fee. I've spoken to a number of lenders and so far all are treating it as a legitimate "change of circumstance" that requires redisclosure of the good faith estimate and the truth in lending disclosures.

Also be aware there is a backlog of files that were not underwritten by USDA, This will likely result in delayed turn times from your USDA offices in the short term. Locally my office in Central Florida (Ocala for me- not Davenport!) is quoted 7-10 business day turn time.

Thankfully the increase in the guarantee fee will make the USDA Guaranteed Rural Development loan self funding- much like FHA. That means no more October delays and a much smoother future for the program, which remains the one of the last 100% financing programs in the country (VA is the only other one).

Gerry Suarez, Jr.

Your FHA Loan Pro!

Your FHA Loan Pro on Facebook

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Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

10 ways to murder your loan

Wed, 26 May 2010 10:53:52 -0700

It is a brand new world when it comes to securing a home loan. So when you begin the process, be prepared to get documents that you may think are silly,exercise patience you didn't know you had. But to simply ignore these changes because you have purchased several properties in the past, will leave you wondering what happened.

Here is a lighthearted article by fellow Rainer Alan May.

Via Alan May, Coldwell Banker Evanston, Illinois Realtor® (Chicago's Northern Suburbs):

Here's a handy list of 10 things you can do to kill your chances of getting a loan today.

1. The house just needs too much work.
This applies to REO's, foreclosures, and short sales... sure they're good deal, but the financing can be rough. Any broken windows, bad appliances, leaking roof, water damage, obvious mold, health or safety issues, structural problems and of course any liens.

2. Low Appraisal
Appraisal used to be a "rubber stamp"... those days are long gone and best forgotten. Today, appraisers are trying hard to "prove up" your purchase price... and standards have become tougher (good!). If the appraiser can't, in good faith, shore up your purchase price... they're just not gonna. Re-negotiations (post appraisal) are becoming much more common.

3. Borrower has too much debt.
Back in the day, large debt/income ratios were given a "blind eye"... no more. 35-40% debt ratios are the top end... the guidelines have become very tight... and if your buyer does qualify... make sure they don't make any large purchases just prior to closing, as many lenders are pulling credit just before closing... and if something has changed.... weee doggies, lookout!

4. Buyer is self-employed.
Lenders today are looking for 2 years of tax returns for those who are self employed. And they look at you cross-eyed if your income is declining. Real income will not be used (such as a Waiter who doesn't report all his tips)... they're going to be based on the income shown on your tax return.

5. Borrower has just started being paid by commission only.
In an effort to save money, some companies have switched their long term employees to commission. Lenders will not count commissions unless they can show a history of at least 2 years.

6. Your tax return doesn't match your IRS transcript.
Oh, this is a fun one. Used to be that you submitted a printout of your tax return, and the lenders just "believed" you. Sometimes they would pull a copy of the return for their files, but only after closing. Today, they are pulling transcripts prior to closing, and if they don't match up.. .(in other words, you "doctored" your printout)... that's fraud, and the deal is off, the loan is dead. (And keep in mind that lying on a mortgage application is a federal offense, punishable by time in your local penitentiary!!)

7. You can't get PMI.
Again, PMI (Private Mortgage Insurance) used to be a "given"... no more. There are only two or three PMI companies nationwide, and they are picky, picky, picky. It is possible, today, to be approved for your loan, and yet denied PMI. Your credit needs to be good... you need to have low debt, and the better your down-payment, the happier they are.

8. The condominium has issues.
Lenders are looking closer and closer at condo budgets, reserves and their general financial health. They're concerned about any pending litigation, and upcoming special assessments. Lenders have recently been pushing condo boards to increase their Fidelity bond... enough to cover at least 3 months of residents not paying their assessments. And they're taking a hard look at any owners (other than the developer) who owns more than 10% of the units.

9. You haven't allowed enough time for your loan processing.
All of these tighter guidelines are causing long approval times. The loan papers are often only good for 90 days or so... and if you get to that deadline, and have to rework the papers, that could cause a delay. If you're purchasing a HUD property... a delay could cost you the property entirely. Allow plenty of time for short-sale approvals, and even for standard mortgages. Realtors need to be hands-on with the lender and loan officers.

10. You don't have all the necessary financial paperwork.
Lenders are looking for more documentation than ever. They want to see Bank Statements, verification of large deposits or gifts, earnest money and rent checks. They may ask for letters of explanation on credit inquiries, missed or late payments, income fluctuations. Make sure to have all your ducks in a row.

ALAN MAY, Realtor®
Specializing in Evanston Real Estate and North Shore Real Estate
Coldwell Banker Residential Real Estate, 2929 Central Street, Evanston, IL 60201
847.425.3779 Cell: 847.924.3313 Email: Almay@aol.com
Evanston Real Estate & North Shore Real Estate

Do not copy the content of this blog, for use elsewhere, without first contacting the author for permission. Reblogging, when the button is available, is allowed. All other use is strictly prohibited without express permission from the author. This blog is tag-resistant... Do not tag me, I don't participate in tagging, no MeMe's, no BHAG, don't even think about it

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Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

New Life for USDA Funds? Congress is Trying

Thu, 15 Apr 2010 20:16:19 -0700

With everyone watching the countdown to the expiration of the USDA Section 502 funds, a glimmer of hope appeared today

Not one but two House Bills were introduced on the floor of the house today in hopes of keeping this program from fund depletion.

Hopefully they can speed this legislation through both houses and save this program from ceasing.

Below are the two press releases:

Apr 14 2010

Capito Introduces Bill to Continue Access to Home Ownership in Rural Communities

Legislation Would Increase USDA Rural Housing Loan Guarantee Program's Capital Reserve

Washington-Rep. Shelley Moore Capito, R-W.Va., the Ranking Republican Member of the House Financial Services Subcommittee on Housing and Community Opportunity, yesterday introduced legislation in the House Financial Services Committee to shore up funds for the U.S. Department of Agriculture 502 Rural Housing loan guarantee program. Capito's bill, H.R. 5003, The Rural Housing Improvement Act, would ensure that responsible families in rural communities continue to have access to the credit market to finance their homes.

"I have received hundreds of letters, emails and calls from my constituents, including home buyers and sellers, who are concerned that the 502 loan guarantee program will soon run out of funds," said Capito. "My legislation would continue to assist thousands of responsible, low to moderate income West Virginians who otherwise wouldn't h ave access to home ownership."

4/14/10: Kanjorski Introduces Bill to Save Rural Home Loan Guarantee Program and Preserve Access to Affordable Mortgages for America's Heartland

| Print |

Instead of Relying on Appropriations, H.R. 5017 Creates Permanent Self-Funded Program at No Cost to Taxpayers

WASHINGTON - Today, Congressman Paul E. Kanjorski (PA-11), Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, introduced H.R. 5017, the Rural Housing Preservation and Stabilization Act of 2010. This legislation ensures the continued access of low- and moderate-income rural households to affordable mortgages through the U.S. Department of Agriculture's loan guarantee program. The economic turmoil of the past two years has led to a significant increase in demand for USDA's Section 502 home loan program and federal funding has failed to keep up. To fix the problem, Chairman Kanjorski's bill makes the program self funded, enabling families living in rural communities to continue to access these much needed home loan guarantees at no cost to the taxpayers. Without Congressional action, the program will exhaust its federal funding within days.

"Many families have relied on the affordable rural loan guarantee program to buy their homes, particularly during these tough economic times, when other traditional lenders have turned their backs," said Chairman Kanjorski. "While the Section 502 program has for many years helped many rural homeowners to achieve the American dream of homeownership -- including in my Congressional District in Northeastern Pennsylvania -- more and more people have needed to use these guarantees during these difficult economic times. As a result, the program will soon run out of funding, stranding rural families who want to buy homes and unnecessarily creating turmoil for our rural housing markets. Rather than relying on ad hoc federal funding, my bill would transform the Section 502 program and allow it to pay for itself. This change will cost taxpayers nothing and ensure that families in rural areas can continue to access affordable mortgages. As our economy recovers, we cannot allow rural America to get left behind."

"I applaud Chairman Kanjorski for his leadership in taking on this issue and helping to ensure that individuals and families in rural areas continue to have access needed to home loan guarantees," said Congressman Barney Frank (D-MA), Chairman of the House Financial Services Committee. "This program has seen unprecedented demand in the last several years, and the Kanjorski legislation provides a positive solution to help to address the funding shortfall. I hope to bring up this bill for consideration in the Financial Services Committee as soon as possible."

"As a result of this program, I was able to purchase my first home which I have wanted all my life," said Virgie Spruiell from Bushkill, Pennsylvania. "I enjoy it every day and it is a blessing. I greatly appreciate Chairman Kanjorski's efforts to enable the program to continue so that other people can access these guaranteed home loans just as I did. It has had helped me tremendously."

The USDA's Rural Housing Service manages the Section 502 Single Family Housing Guaranteed Loan Program to provide a necessary source of mortgage credit for consumers in specified rural communities. Low- and moderate-income individuals and families in rural communities often have fewer mortgage credit options than those households in urban areas. The Section 502 program aims to fill that void and lower the costs of homeownership by giving rural areas access to a home loan guarantee program. To qualify for the program, borrowers must have good credit and have reliable incomes to sustain homeownership.

Demand for the Section 502 program has dramatically increased in the past few years as a result of the economic downturn. As a result, the program will soon run out of federal funding if legislation is not enacted. Chairman Kanjorski's legislation would permanently correct this problem by enabling the program to pay for itself. In order to pay for the Section 502 program, the lender would pay as much as a 3.5 percent upfront fee on the loan at origination. The Kanjorski bill also gives the Secretary of the Department of Agriculture the authority to assess an annual fee of 0.5 percent on the outstanding balance of the loan. As a result of these small fees to support federal home loan guarantees, rural America would continue to have access to affordable mortgages. Congressmen Ruben Hinojosa (D-TX), Paul W. Hodes (D-NH), Charles A. Wilson (D-OH), and Joe Courtney (D-CT) joined Chairman Kanjorski in introducing H.R. 5017.

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Greg Miller
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NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

USDA Funds Likely to last through the second half of May

Fri, 09 Apr 2010 21:01:37 -0700

The run of securing funds for USDA Section 502 loans has been a little slower than initially anticipated. Below is a snapshot of a bulletin that I received this week from one of our Investors. They have been tracking this as closely as anyone and their best guesstimate at this toime is that USDA funds will last into the 3rd or 4th week of May. Hopefully Congress will not let this program stall in the middle of this long housing recovery.

************************************************************************************************

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Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

USDA Loans vs. FHA Loans : Winner is USDA

Thu, 11 Mar 2010 13:23:36 -0800

The USDA Rural Development Guaranteed Housing Loan Program is the most under utilized mortgage loan product out there in my opinion. While the name may indicate "farm or farmland" to a lot of people. It is primarily intended for single family one unit homes located in smaller communities. Generally ones with less than 10,000 population, but in some cases up to 25,000. All of my Kosciusko county in Indiana is eligible. There are also income limits, but are very generous. Kosciusko county for example has limits of $73,600 for a family of 1-4, and $97,150 for 5-8 persons.You can check your area & income limits here:

The Highlights of this program are:

True 100% financing - no down payment required
No minimum cash contribution from borrower
No monthly mortgage Insurance (PMI or MI)
No Cash reserves
No maximum loan amount; Just income and repayment ability
Eligible repairs/ Rehab (up to $5000) can be added to loan amount and completed after closing.
No First time buyer requirement
No Recapture costs
Conventional type loan packaging with only a 2% (can be financed) Guarantee Fee.
Credits score minimum of 620
Can also be combined with a Mortgage Credit Certificate program
Competitive Interest rates ( typically within 1/8% of FHA)

Below illustrates how a typical USDA loan would compare to a FHA loan:

USDA FHA

Loan amt. $150,000 $150,000

Down pymt. $0 3 1/2% $5250

Required loan program fee 2% $3000 1.75% $2625

Amt. to Finance $153,000 $147,375

Term/ rate 30yr./ 4.875% 30yr./ 4.75%

P & I $806 $766

Mtg. Ins. $0 $67

Total pymt. $806 $833

If the USDA loan program is not available to you because of location or income limits, the FHA loan is still an excellent program. But if both are available to you, I would choose the USDA.

As you can see the monthly payment on the USDA loan is actually lower with no monies out of pocket. If you are in a geographical location that USDA is available and you qualify income wise, I highly recommend as a consumer to take advantage of this wonderful program. I also recommend that Realtors make your clients aware of this great product. They can keep their 3 1/2% to get started in their new home.

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Secure online application for all of Indiana

Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033

Indiana Mortgage Credit Certificate for First Time Home Buyers

Wed, 03 Mar 2010 11:00:35 -0800

If you're planning to purchase your first home, the Indiana Housing and Community Development Authority can help you put money back in your wallet or pocketbook with a Homeownership Tax Credit (also known as a federal MortgageCredit Certificate, or MCC).

Here's how the Homeownership Tax Credit works.

You obtain a mortgage through a participating lender.
In addition to your mortgage, you will receive a certificate that offers you a federal tax credit of up to $2,000 per year. A tax credit is more valuable than a tax deduction because it lowers your actual tax liability, rather than your taxable income.
The size of your Homeownership Tax Credit will vary based upon your mortgage amount(see below). On a $90,000 loan, you will receive a credit of 25 percent of the interest that you pay. For example, if your mortgage's annual interest rate is 6 percent, you will pay $5,400 in interest during the first 12 months and will receive a Homeownership Tax Credit worth $1,350. This averages out to approximately $112 per month.

Mortgage Amount Tax Credit Rate

$50,000 or Less 35%

$50,001 - $70,000 30%

$70,001 - $90,000 25%

$90,000 and more 20%

Income Limits have been raised this year and vary by county. In Kosciusko County the limits are $73,200 for 1 or 2 persons & $85,400 for 3+ persons.

This program was designed to provide the consumer with as much flexibility as possible, since it may be applied to all types of loans (fixed-rate, adjustable rate, conventional, FHA, VA, etc.). Federal law does not allow the mortgage credit certificate to be used in conjunction with a mortgage financed by IHCDA's low-interest 1st HomePlus. But, the mortgage credit certificate can be packaged with other competitive mortgage products, such as zero down payment USDA loans.

************************************************************************************************

Secure online application for all of Indiana

Greg Miller
Mortgage Loan Originator
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033