I Will Not Do Your Loan Unless You Consult With "My Preferred Agent" - 10/31/09 09:02 AM
Even if you have been working with your favorite real estate agent for the last 9 months, even if you have already looked at 20 homes with your favorite agent, even if you have already had the home builder install your favorite colors and appliances, I will not do your loan until you call Tommy T Thomas over at Big Builder Incorporated and speak with one of his agents. Now you do not have to buy one of Tommy T's homes but you do have to go look at one and let the sales agent check your contract with the home … (12 comments)

Closing Points, Origination Points, Discount Points ... What are points? - 10/29/09 10:38 PM
"I'm not paying any points!"
Well, okay then. I guess you're paying cash because everybody who borrows money from a broker, lender or bank (regardless of their misleading advertisement) pays points. Simply defined the word points means a percentage. What they are a percentage of is the next question. And, in this case, they are a percentage of the loan amount.
For example if we are talking about $100,000 and we say "one point" we mean "one percent" or $1,000 (one thousand dollars). If we say "two points" we mean "two percent" or $2,000 (two thousand dollars).
Since we know what … (35 comments)

Rate, Price, Costs - Today is Awesome - Is tomorrow too late? - 10/28/09 05:44 PM
I watched in amazement for the last 48 hours as 30 year mortgage bonds reached their lower resistance point. I suppose we always have the greastest hopes that the reversal from down to up will result in an incredible jump sending mortgage rates into the basement. When lower resistance on mortgage bonds is coupled with sinking employment a flat dollar, a drop in the stock market and fuels along with excess housing industry, you could have Goofey and Pluto as president and vice president and interest rates would STILL go down!
That's what happened today. I watched all day and called … (2 comments)

How To Help The Loan Go Smoother and Faster - 10/27/09 05:26 PM
It's easy to complain about how long it takes a loan to close - even loan officers do it. The truth is if everything is in order and the property is acceptable the loan should close within 21 to 30 days of the receipt of all documents by the lender. This is not 21 days from application date nor is it 21 days from contract date. It is exactly as stated: 21 to 30 days from the date a full application is received.
The tug-of-war between agents and loan officers can be turned around if both remember to stand on the … (7 comments)

Interest Rate and Annual Percentage Rate (APR) - What you need to know. - 10/27/09 02:38 PM
Every loan officer who has done their job for more than a week or so has heard the question. Some loan officers avoid it altogether by simply not sending the Truth In Lending (TIL) until they absolutely are required by law to do so. Why? Because in the top left corner in prominent font is a number that confuses almost every borrower and non-financial insider - the Annual Percentage Rate (APR).
The APR disclosure requirement was sort of a good idea when it came out back in 1968 when there was pretty much just one type of home loan: a 30 … (1 comments)

When Should You Get Pre-Approved For A Purchase Loan? - 10/25/09 10:13 AM
This one kind of goes along with "When Can We Close?" from a couple of years ago and another "How Long Does It Take To Close Today?" from a few weeks ago. It is further inspired by feedback from many agents and clients over the last many years.
First it is important to understand the difference between a pre-approval, an approval and a clear-to-close. That explanation is given here at "Pre-Approval, Approval, Conditional, Cleared - What the ____?!" Let me augment that by saying you, the home buyer, have a lot of power over how certain your pre-approval is.
Pre-approvals are … (6 comments)

Pre-Approval, Approval, Conditional, Cleared - What the ____?! - 10/24/09 01:49 PM
Ancient Mortgage Proverb: No deal is ever 100% certain until the loan is completely paid off.
There exists a chasm in communication, familiarity and point of view between agents and loan officers. Sometimes we try to act like it does not exist and we really wish it was not so. I know this chasm exists, just as you do for many reasons, because I have had real estate agents - very good agents - try to convert to loan officer at my companies and I have seen this chasm immediately appear. Sales are fairly and generally black and white, go or … (67 comments)

The Little Things We Say (That Make The Other's Blood Boil) - 10/20/09 09:53 PM
"If you don't have anything nice to say don't say anything at all." This could also be titled "The Therapeutic Effects of Active Rain."
I'm sure you have heard it - so have I. A few of you (notice I did not say us) can actually even practice it. My sister, Dr. Carla Northcutt - she can do it and does. Most of us cannot respond with kindness to every single jab no matter how seemingly innocent or accidental. In writing for emails or blogs an additional layer of "mis-communication" can present itself in the form of no audible or visual … (8 comments)

What Does FHA Say About Foreclosures in Credit History? - 10/18/09 05:27 PM
Here are the facts about FHA and foreclosures on credit:
If there is a foreclosure on the borrower's credit (any of the borrowers) it must be at least 36 months previous in most cases. There are a very limited number of instances which would allow a foreclosure to have been within less than 36 months (from application date) and the lender may continue to underwrite the application even though it may have not been approved by the Automated Underwriting System (AUS).
Those events are pretty much limited to:
Death or serious illness of a wage earner.
Yes, that's it. HUD 4155.1 … (3 comments)

Marietta, Georgia - Today Show's Top 4 Pick In America - 10/17/09 09:36 AM
Looking for a great place to live with some of the best values in America? Look no farther because I am sitting in it right now keyboarding this post to you! On October 6th NBC's Today Show with Al Roker highlighted Marietta, Georgia as the number 4 place in America to buy a home and get the most "bang for your buck".
I happen to agree with them because I live here, have lived here my entire life except a little college stint, and I am very actively involved in my community and lending here. During the boom builders constructed some … (1 comments)

Finance Challenge: Reserves - the right amount, the right type, the right timing - 10/16/09 09:31 PM
So you have the down payment - sourced and seasoned just like it needs to be. All saved up, stored away nicely in the bank for the last 60 days, and ready to be invested into a home. The closing costs are there, too, and all perfectly documented for the last two months. Great job! Your down payment and closing costs are in order. This is something to be proud of!
It's always something that needs to be covered right up front. When the loan officer is taking the application and they know what it requires for down payment and the … (6 comments)

Construction To Perm: What is it? Who needs it? How do you get it? - 10/15/09 09:48 PM
You have probably guessed a construction to perm has something to do with, well, construction. You would be correct. In fact it is the term for a type of bank loan. In this case it is bank financing of the construction of a home. If the term perm is confusing it's really quite simple: this loan will financing the construction all the way up until the permanent loan. In other words it's a construction only loan. Sort of.
Construction to perm (CP) loans also will finance the land on which the construction is occurring. If you are an investor stop right … (13 comments)

Hear Me Clearly: First Time Homebuyer's Must Qualify and Offer NOW! - 10/15/09 10:27 AM
By NOW! I mean if you have not called a loan officer to get qualified, found a property and made an offer you're dangerously close to missing the First Time Home Buyer's Tax Credit. I know what you hear in your mind, "it's good through the end of November." You would, of course, be correct in so saying. Your correctness would be equivalent to leaving New York City for a trip to Tokyo to see your best friend's wedding which happens at 5PM your time and you are getting on a jet at Noon your time the day of the event. … (7 comments)

I Found Me! (At my new job) - 10/14/09 05:07 PM
While for the last several years I have been blogging as partner and "President" of a busy but small mortgage lender licensed in Georgia, Florida and for a time North Carolina things have changed mightily over the last few weeks. Many of you knew I was considering mothballing my Novation Mortgage and indeed had spoken to some about various opportunities around the industry.
Early on in the change process I decided if I were to continue with my experience in the mortgage industry it would be at Regional Director or above or good old Loan Officer. Several people contacted me through … (5 comments)

The First Time Buyer's Credit Has NOT Been Extended (yet) - 10/14/09 08:44 AM
I have seen a blog post and it has been reposted that gives the impression the federal First Time Home Buyer's Tax Credit has been extended for 12 months. Actually it has not yet been extended. Only the house has voted on a resolution titled "The Service Members Home Ownership Tax Act of 2009" which does provide for an extension of 12 months for veterans or service members who spent 90 or more overseas during calendar year 2009.
As everyone knows for a resolution to become a law it must also be passed by the Senate which sometimes adopts the House … (5 comments)

Hey Builders - Let Me Make "RESPA" and "Fair Trade" Clear To You - 10/13/09 10:23 PM
Some years ago I had an agent to whom I referred a lot of business ... seriously a couple every month. She got in with "Dr. Morton" on their close-out list and we were moving a couple of units per month to clients I had generated with my advertising. Suddenly it became a problem for MY BUYERS whom I had created as clients with my efforts and my free training classes to use my mortgages and "Dr. Morton" decided they would no longer honor their closing cost contribution unless the buyer used their preferred/inhouse lender.
Woah.
I'm not that great of … (5 comments)

My Town: Marietta, Georgia - Cobb County - 10/12/09 06:47 PM
Fifty years ago this past August I was born in the same hospital where decades later my children would be born and I would say good-bye to both of my parents. I remember when there was no Interstate highway, only six government high schools and the fire department was all volunteer. That was before my fellow Cobb County residents Ty Pennington, Travis Tritt or Julie (Julia) Roberts were born.
The seat of Cobb County is Marietta. I was, in fact born in Marietta and that is where I currently live. As a side note I live in the home my parents … (18 comments)

How Long Does It Take To Close "Today"? - 10/06/09 03:24 PM
Ask ten mortgage people that question and you will likely get ten different answers. In fact ask me on ten different files and you'll get ten different answers! Just a few weeks ago I easily closed a refinance in eight days and a purchase in 13. Yes, 13 days. Can it happen today? I don't know - we'll have to try it and see! I am currently working on a closing with Lane Bailey that has been going for well into six weeks. In fact it has been in underwriting over two weeks. To blame it on underwriting would be wrong. … (37 comments)

 
Ken "Yes You Can" Cook (Ken Cook, Brand Strategist) Rainmaker_large

Ken "Yes You Can" Cook

Marietta, GA

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Ken Cook, Brand Strategist

Address: Marietta, GA, 30062

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