Darrell's Blog - Integrity Mortgage Update

Marketing to the Better Half

Integrity Mortgage Funding — Fri, 11 Dec 2009 07:52:20 -0600

Don't Leave Spouses Out of the Equation

Marketing guru Faith Popcorn, who is considered a trend expert, posed this insightful question to an audience in San Francisco back in 1999: "Since men and women are obviously different, why do we continue to market to them in the same way?"

Let's take Faith's concept a step further: When meeting with a couple, why do we typically engage one partner in the relationship in conversation, when we know the deal is an important financial transaction involving both partners? Aren't we opening ourselves up to problems by not marketing to each one?

How many times have you built a rapport with one person, only to have their spouse take that away by sending their business elsewhere? Chances are we've all had this happen. And we have no one to blame but ourselves.

One survey indicates that 58% of all women feel disrespected by their Financial Advisors. Other studies state that more than 80% of the time, the initial point of contact in financial transactions is with the man in a couple. In the remaining 20% of cases, when the woman is your first point of contact, do you generally continue to maintain a relationship only with that woman, or do you reach out to the second party to ensure that you've cemented an agreement with both of them to work with you?

Use this script in the future to ensure that you don't leave yourself open to problematic circumstances:

"Mrs. Jones, I have had the privilege of speaking with your husband, Mr. Jones. I'd like to make sure that you are also well educated on the decision the two of you are about to make. How do you feel about conducting a conference call between the three of us? That way, you will not have to repeat any of the crucial information to him during dinner tonight."

You will often get a response along these lines:

"Actually, he leaves those decisions up to me. I am the numbers person in the relationship, but thank you for offering."

At the very least you've demonstrated that you are courteous, thoughtful, and concerned about keeping all involved parties well informed.

Let's discuss other ways to WOW clients and provide unique customer service!

Six Tax Breaks Every Homeowner Should Know

Integrity Mortgage Funding — Wed, 09 Dec 2009 07:54:27 -0600

Benjamin Franklin once said, "In this world nothing can be said to be certain, except death and taxes." More than 200 years later, this certainly holds true. And while being a homeowner won't add years to your life, the modern tax code has a number of benefits certain to make your tax bill lower. The following are a few ways your CPA or Tax Preparer can help you save:

Take an interest in your mortgage interest – Statistics show that only about half of homeowners claim this valuable deduction. Make sure you're one of them. On average, qualified American homeowners save about $2,000 per return by deducting mortgage interest. And when added up over the life of the loan, this can make a big difference in your retirement savings. This is a huge break that renters don't get! So take advantage of it.

Don't forget about the points – Points paid to refinance your home are also fully deductible throughout the life of the loan. For example, let's say in February of this year you refinanced your home for a new 20-year loan (or 240 months) and you paid $3,000 in points. By the end of this year, you can write off $125.00 for those 10 months (March through December). Beginning next year, of course, and each year thereafter, you can write off the full $150.00 until the points have been fully deducted. It's important to note that buyers can also deduct mortgage points that are paid by the seller, as long as the cost basis of the property is reduced by the amount of the seller-paid points.

Old points are as good as new – Unamortized points from old refinancing are deductible in the year of a new refinance. Using the above example, let's say rates dropped again and you refinanced again in February of the next year and paid $2,400 in points. The remaining balance of the points on the old loan, $2,875, is fully deductible – plus the money you could deduct for any qualifying mortgage payments made toward the new points.

Sell Your House – While points are not deductible for sellers, you can exclude as much as $250,000 in gain ($500,000 on a joint return) when you sell your primary home (your principal residence for two of the last five years). If you don't qualify for the two-year rule, you can get a partial exclusion if the sale of your home is the result of either qualifying changes of employment, health reasons, or other unforeseen circumstances.

Casualty deductions – Floods, forest fires, hurricanes, earthquakes and other natural disasters can be devastating, especially to homeowners. Ask your CPA how you can take deductions on casualty losses, even if you collected insurance. In addition, if the President declares your area a disaster area, you have even more options.

New $8,000 tax credit for first–timers – The government has created a temporary monetary incentive, a tax credit for first-time home buyers (that's anyone who hasn't owned a home in the last three years), as a tool to stimulate the housing market. The tax credit (not a tax deduction) will be 10% of the purchase price of a home, up to a maximum of $8,000.

There are, of course, income limits to qualify for this incentive, and other important details, but give us a call, and we'll see if you can take advantage of a tax gift that even Ben Franklin could appreciate.

Remember, this, or any article you might read on your own, should never serve as tax advice. Always consult with a qualified CPA or Tax Preparer before making any tax decisions. If you need a referral, email or give us a call at 678-648-5626, and we'll be glad to give you the names of the reliable professionals we work with on a regular basis.

Reaction To Latest Fed Speech

Integrity Mortgage Funding — Tue, 08 Dec 2009 13:59:31 -0600

The latest edition of CNBC’s Squawk box featured CNBC’s Sr. Economist Steve Liesman’s response to Monday’s Fed forecast.

In his analysis, Mr. Liesman repeated Fed Chairman Ben Bernanke’s statement that inflation could go lower and offered a realistic view of the current job rate. The real jobless rate is closer to 17% and that will continue to substantially impact our economy. He did however state that the Fed sees inflation going “there way” and that the latest forecast gives the Fed room to be wrong in their assessment.

For more information on how this impacts the local real estate market, email dwalters@integritymtgonline.com.

Testimonials: How to Market Success

Integrity Mortgage Funding — Fri, 04 Dec 2009 07:51:59 -0600

Testimonials are not about bragging or tooting your own horn. Sharing your successes with your client base and associates is an essential part of growing your business and your reputation within the community. And a great way to do this is by utilizing testimonials in your marketing efforts. Not only do testimonials get attention, they can also create a sense of confidence in the idea of doing business with you.

The following are a few simple steps for gathering positive feedback from your clients:

When clients thank you for completing a phenomenal deal, ask them to write a testimonial for you about their experience.
If they're too busy to write it themselves, write it for them. Then have them simply approve and sign it.
Make sure you secure their permission to use the testimonial in your marketing efforts.
Create a file with as wide a variety of testimonials to draw from as possible.

Now it's time to leverage what you've gathered. Dr. Robert Cialdini, best-selling author and nationally-recognized researcher, has analyzed data on this topic and has discovered that the biggest and best testimonials are not always the most persuasive when it comes to increasing business.

Instead, Cialdini suggests that finding the right testimonial, one that your clients can strongly relate to, is much more effective in creating confidence. Cialdini believes that by obtaining testimonials from an array of clients, you'll create a diverse collection of simple, yet effective marketing messages that will hit the specific bull's-eye for each and every potential client.

For example, let's say you were to use a testimonial as part of a direct-mail flyer to first-time home buyers and, in your testimonial, your satisfied clients wrote about how you helped them build the retirement home of their dreams. Although your clients may have raved about your ability in that transaction, the message doesn't fit the specific needs and desires of a first-time borrower. Instead, select from your library of testimonials something that addresses the well-known fears of the home-buying process and how you were able to solve them. Something more like this:

"I was nervous about buying my first home, unsure if I could make the leap from renting to owning. But, thanks to John Real Estate Agent, I'm finally living the American Dream."

Email or call me at 678-648-5626 for more marketing tips!

What is a Credit Freeze?

Integrity Mortgage Funding — Wed, 02 Dec 2009 09:04:23 -0600

Identity theft is now passing drug trafficking as the number one crime in the nation–with more than 15 million victims every year. Rather than lie awake at night worrying and wondering if your identity has been stolen, you can actually take a simple step to protect yourself...it's called a credit freeze (or, sometimes, a security freeze).

Here's How It Works. When someone tries to open an account in your name, they'll be stopped in their tracks. That's because one of the first things a creditor will do before opening the account is pull a credit report. By having a credit freeze in place, creditors aren't able to pull your credit report. And, since very few lenders will issue credit without first seeing a credit report, identity thieves can't open fraudulent accounts using your name. However, when you want to apply for credit, you can temporarily lift the freeze using a PIN... thus, allowing your legitimate application to be processed.

The Flip Side. It's important to remember that when the freeze is active, you'll have to lift the credit freeze before you can purchase a car, get a new credit card, or refinance a mortgage. For most major purchases, this won't be much of an issue. However, a credit freeze can be problematic if you want to open an instant credit card with a store.

To learn more about these issues and to find out if your state allows credit freezes, visitwww.ConsumersUnion.org/finance/creditfreezeinfo.htm.

Happy Thanksgiving

Integrity Mortgage Funding — Thu, 26 Nov 2009 09:26:27 -0600

We have so much to be thankful for with clients and partners like you. This Thanksgiving, as you're gobbling up goodies with your friends and family, just know that we're extremely grateful to be a continuing part of your success. Have a wonderful holiday from Darrell Walters and Integrity Mortgage Funding!

Strategic Equity Management

Integrity Mortgage Funding — Wed, 25 Nov 2009 07:58:42 -0600

There are several reasons why purchasing a home is preferable to renting one. Rent payments go directly into the pocket of a landlord, while mortgage payments result in the accumulation of equity and the eventual ownership of the property. The tax advantages of home ownership are also significant since mortgage interest is tax deductible.

Ironically, these two benefits do not always work well together! Financial planning expert and best-selling author, Douglas Andrew, has revealed some surprising misconceptions as well as some innovative strategies in his book, Missed Fortune 101. Andrew explains that most homeowners believe that paying down their mortgages quickly and increasing their equity is the best investment they can make. However, doing so results in a decrease in the tax benefits available since the loan is paid off sooner, causing the interest deductions to disappear.

As an alternative, Andrew suggests that homeowners obtain a fixed-rate, long-term mortgage. Rather than putting down a large down payment or paying extra principal, he recommends placing these funds in a carefully chosen investment vehicle that will earn a higher rate of return. By using the tax benefits of the interest deductions and the compounding of interest on the investment account, homeowners have the potential to earn a higher rate of return. In addition, should an emergency need for cash arise, the investment account will be much more liquid than the equity of the home.

Total Quality Control: Set Goals that Lead to Improvement

Integrity Mortgage Funding — Fri, 20 Nov 2009 07:35:31 -0600

The concept of KAIZEN®* is based on ideas developed by Japanese industries, which date back to the 1950s. This system for optimizing production melds together ideas from both Eastern and Western cultures, and embraces the philosophy of implementing common sense, low-cost forms of improvement. It takes into consideration all members and facets of a company, and how each plays its part in reaching Total Quality Control.

While breakthrough ideas are based on rapid change and the development of new systems, KAIZEN® principles are geared toward recognizing what resources you have at hand, and making better use of them. The KAIZEN® process is soft and gradual, and a team or support group evaluates each level of change step-by-step.

According to Masaaki Imai, Founder and Chairman of KAIZEN® Institute, you should regard how you currently do your job as the worst way to do it, and seek to make gradual and consistent improvement. "In order to improve you must first perceive the need for change, and then recognize the problems and work to solve them," Imai states.

Rate your current activities on a scale of one to ten (ten being best), and determine what goals you should set to improve your current system. Circle the number that best applies for each category listed below.

Review your notes, and decide which areas could use the most improvement. How does this affect your company's production overall?

Email or call me at 678-648-5626 if you'd like to brainstorm on improving the way you do business.

* KAIZEN® is a registered trademark of KAIZEN® Institute, Ltd., recognized in the United States and throughout the world. All rights reserved.

Google Maps Help New Homeowners Find Their Way!

Integrity Mortgage Funding — Wed, 18 Nov 2009 09:42:10 -0600

Google™ released a new localized service in March of 2004. Many relocated homeowners have used this search feature to get to know their new neighborhood.

Simply visitwww.maps.google.com and enter the type of service or business you are looking for, followed by the city or zip code you are targeting. Google's robust search engine will provide a list of results within seconds. The results will include local information about neighborhood business listings, maps, directions and useful web pages derived from a variety of sources. This makes getting to know a new neighborhood fast and easy. If you out on the road, you could also use Google Mobile which provides driving directions and contact information for your local searches.

Example searches: Italian restaurants, coffee shops, movie theaters, pet groomers, libraries, video rentals, grocery stores, etc.

If you are looking for a mortgage professional that is committed to providing exceptional service, look no further! My team and I continually monitor rates for our clients and always work toward our clients’ long-term goals. Email or give us a call at 678=648=5626 if you would like to discuss loan options with a trusted advisor.

*Google is a trademark of Google Inc. All other company and product names may be trademarks of the respective companies with which they are associated.

The Weekly Review - A Strategy for Success

Integrity Mortgage Funding — Fri, 13 Nov 2009 10:11:54 -0600

In today's business world, information comes at you rapidly and from all directions. It's far too easy to become overwhelmed and find yourself in a reactive rather than a proactive mode. How can you regain a sense of balance and control?

Each week, as work winds down, make an appointment with yourself to assess how you've been doing. David Allen, the best-selling author of Getting Things Done, calls this a weekly review, which he believes is critical to achieving the results you desire.

The weekly review is more than a chance to step away from the distractions of the office, it's also a time to catch anything that might have otherwise slipped through the cracks. Schedule an uninterrupted block of time every week, and use it to evaluate and process your activities.

Allen suggests that you begin by collecting everything that belongs in your inbox. Gather all loose papers, scribbled notes, and audio memos that you haven't been able to transcribe. Empty your mind by writing down all the things that you haven't dealt with yet.

The next step is to process your inbox. If an item doesn't require action, trash it, file it as reference material, or add it to yoursomeday - maybe list. If an item does require action, go ahead and complete it if it takes two minutes or less. If it requires more than 2 minutes, then delegate it or defer it and create reminders so that it won't be occupying your thoughts.

Review your deferred and someday-maybe action lists. Mark off all completed tasks. Integrate selected actions into your plans for the coming week. Schedule any next steps, such as meetings, in your calendar as needed.

Check over your waiting for lists. Are your delegated tasks getting done? Do you need to send out follow-up reminders?

Go through your projects. Remember, any tasks that require more than one step qualify as projects. Assess their progress. Do you need to rethink the stages involved? Determine what the next actions are.

Review last week's calendar. Examine the notes. Are there any follow-up activities that you've neglected? Sort these steps the same way, deciding on the next concrete action. Look over the upcoming week's calendar. What do you have to prepare?

Now that you've regained control of your working environment, take a little time to be creative and bold. Shift from the micro to the macro. Brainstorm. Capture as many off-beat ideas as you can. When the ideas stop flowing, get up, stretch, and look at those wild musings. Are they worthwhile? Take them back to your inbox and determine if they are actionable or not... Don't forget to schedule your next weekly review!

If you have other management tips, please give let me know!

The New Home Buyer Tax Credit

Integrity Mortgage Funding — Thu, 12 Nov 2009 08:24:52 -0600

The November 11^th edition of the CNBC’s Squawk box featured a discussion by Richard Smith, CEO of Realogy, regarding the extension and expansion of the buyer tax credit and how it will impact the real estate market.

Mr. Smith has an interesting viewpoint as to the changing real estate market. Check out the video and let me know your thoughts about how the tax credit and other changes will impact our real estate market.

Also, if you would like more information regarding the latest home buyer tax credit and extension, please call me or email at dwalters@integritymtgonline.com.

Happy Veteran's Day

Integrity Mortgage Funding — Wed, 11 Nov 2009 08:12:32 -0600

To all of our armed forces and their families, thank you for all the things that you have done for our freedom and liberty. I hope that you have a very blessed Veteran’s Day from Darrell Walters and Integrity Mortgage Funding.

Time Blocking - Putting Balance Back into Your Life

Integrity Mortgage Funding — Fri, 06 Nov 2009 11:21:54 -0600

Have you ever had your day end and wonder where it went? Have you ever been frustrated by how reactive you have been to "emergency" situations that significantly reduced your productivity?

Many of us have experienced this to an excessive degree in our business practices. One of the greatest ways to eliminate the reactive state we find ourselves in is to practice the art of Time Blocking. Time Blocking is about scheduling your day with purpose, making sure the things you need to get done DO get done. This applies to work and personal activities. Remember, the more proactive you are with your day, the less reactive you will be.

Dedicate yourself to the following exercise for 2 weeks. Each morning, start off by blocking your entire day in ½ hour increments. The result might look something like this:

8:30 - 9:00 Check emails and voice mail
9:00 - 9:30 Return calls
9:30 - 10:00 Prospect for new business
10:00 - 10:30 Staff meeting
10:30 - 11:00 Check voice mail and return calls
11:30 - Noon Strategies new business planning
Noon - 12:30 Return calls
12:30 - 1:00 Break for lunch
1:00 - 1:30 Return calls
1:30 - 2:00 Meet with client

The key to this type of planning is to check your voice mail and email each hour and return messages promptly. The reason is simple: If you let too much time lapse before you respond to your client, it will tear you away from your time blocking schedule. The temptation to check the red light blinking on your phone, or respond to that electronic voice saying, "You've got mail," will be too great to resist. Remember, time blocking is about commitment. The more you live your days proactively, the more work you will get done.

Homeowner's Insurance: Put the Right Policy In Place

Integrity Mortgage Funding — Wed, 04 Nov 2009 09:05:06 -0600

In order to obtain a home loan, a borrower is usually required to have a homeowner's insurance policy in place. Experts agree that the most important question homeowners should ask when shopping for a plan is the A.M. Best rating of each company. New companies pop up all the time, and homeowners need to be informed about what a company can offer in terms of protection against potential risk.

Consumers should also become familiar with the liability portion of their policy. ACV (Actual Cash Value) policies pay claims based upon the depreciated value of the item or items lost. However, replacement cost policies will pay the full cost required to actually replace the items.

To ensure that the right amount of insurance is purchased, homeowners should obtain an appraisal every five years or so. If additions are made or remodeling takes place, homeowners will need to revisit and possibly upgrade their plan as well.

Experts say there are several important mistakes homeowners should be especially careful to avoid. The first is being dishonest on an application. This is absolute grounds to reject any claim. Secondly, if the property contains a detached structure - such as a guest house, a barn, a workshop, or a garage - be sure to include each one on the insurance policy. Finally, do not over-insure. Homeowners can save a little money by insuring only those items and structures that need to be replaced.

Email or call me at 678-648-5626 for a referral to a local, professional insurance agent.

Remember...Daylight Savings Time!

Integrity Mortgage Funding — Fri, 30 Oct 2009 08:10:26 -0500

Remember to set your clocks back one hour as Daylight Saving Time will end on Sunday, November 1st. And when you adjust your clocks the night before, you'll be right on time Sunday morning!

If you or someone you know needs assistance with a purchase or refinance loan, please email me or call 678-648-5626.

Information Marketing - Giving to Receive

Integrity Mortgage Funding — Thu, 29 Oct 2009 08:31:53 -0500

Information marketing infuses free information about a product or service along with the regular sales pitch. Unlike the decoder ring in abox of Cracker Jacks, info-marketing provides the free prize before any purchase has taken place. It appeals to consumers much more, because they don't feel as though they are being approached by a pushy salesperson. For this reason, info-marketing can be a great vehicle for cementing new relationships.

Here are some examples of information marketing that will inspire the potential client to think of you as a credible resource, even before they meet you in person.

The How-to-Sell-Your-Home Booklet
Real Estate agents can place an ad in the Real Estate section of the local classifieds offering the public a free booklet on how to sell their home quickly, which includes personal techniques that work. This will attract FSBOs and other potential sellers. People greatly underestimate the complexity of selling a home, and through info-marketing the Real Estate agent can become a knowledgeable resource. This is a terrific conduit for establishing new relationships.

The How-to-Diversify Document
Financial planners can place an ad in the Business section of the local paper, offering a booklet that educates consumers on how to properly diversify their portfolio, explains what dollar cost averaging is, and clarifies the difference between fee-based financial planners and transactional-based financial planners. Providing information through free literature encourages the consumer to call for a personal appointment to go into more detail. This also works well in radio spots, by adding a friendly voice to the equation.

The Tax-Law Pamphlet
Certified Public Accountants can offer a free pamphlet on tax law changes, tax ramifications for Living Trusts, and the laws that govern Estate Planning. This provides a great opportunity to become a Trusted Advisor right out of the gate, and start the relationship with a level of deep respect.

Another great way to distribute info-marketing is to make it available through your website. Make sure your prospects fill out a form that allows you to capture their contact information. Make it clear that the information they requested will be delivered by email, so their correct email address is required for fulfillment. Then you can add them to your regular marketing campaigns.

Let me know if you have any more creative ideas for info-marketing strategies!

Take the Stress Out of Moving

Integrity Mortgage Funding — Wed, 28 Oct 2009 17:29:39 -0500

Moving can be very exciting...but it can also be a bit of a pain as well. Besides packing and unpacking, there is a long list of details to be handled. Things like choosing a mover, connecting utilities, getting Internet and cable service, or subscribing to newspapers or magazines in a new area can be quite a chore. And if you forget to connect one of the utilities you could be stuck in your new home for several days without that much-needed service.

To ease the stress of moving and to schedule new connections for all of the utilities in one convenient location, simply go to http://www.whitefence.com/.

Here you can quickly compare prices for movers, phone, electricity, television, or high-speed Internet. Just select the services you wish to compare. For example, phone, cable, and electric. Or, enter your address on the home page, hit search, and within seconds, a list of services and prices available in that area will appear.

Next, click on the service of your choice to view details and pricing or comparison shop by choosing three providers. Once you determine the provider, select the service plan, complete the requested information, enter the connection date, and within minutes a confirmation will be sent to you.

If you want to change your current provider, simply hit the icon for phone, cable, or Internet, select "switch provider," complete the requested information and a list of providers in the local area will appear. Choose the new provider and the service will be changed.

Additionally, on the site you can complete a change of address form, subscribe to local newspapers, and order magazine subscriptions.

Moving to a new home should be enjoyable and exciting. Using this tool can help remove a bit of the stress of moving and will also help save valuable time.

This is just one great resource to help new homeowners on the Internet. If you or anyone you know would like to make the dream of homeownership a reality, just email or give us a call 678-648-5626. We will review your financial situation and get you pre-approved for the perfect home.

The Art of Database Management: Meeting Customer Relevancy

Integrity Mortgage Funding — Fri, 23 Oct 2009 08:14:08 -0500

It's important not to assume to know what is relevant to your clients. You must ask intelligent questions, run reports on this information, and then proactively meet your customers' relevant needs. This completes our analysis of Bill Gates' quote regarding managing information, and brings us full circle.

We've talked about gathering information. Here are some things that you can do to BUY BRAIN CELLS! Remember, marketing is about being in the forefront of your clients' thoughts, and the only way you can buy their brain cells and make them work for you is by marketing to what is important to them. That is why we strive to ask questions that give us these insights.

If you know your client doesn't have a college education fund set up for their children because you took the time to ask that question, then you could turn around and recommend a 529 Planthat would allow them to establish a tax-deferred account to put those funds in place for their children's future educational needs. Things like this put you far ahead of your competition, and you become your clients' friend and confidant.

Another suggestion is to have your personal assistant send out some item of relevance to members of your database every month. If you've gathered information intelligently and you know what your clients' hobbies are, use it for this type of communication. Let's say your assistant finds an article on herbal remedies that work effectively on children under ten years of age, and you are in the midst of the cold and flu season. Run a report to identify the clients in your database who have children under ten years of age. Send them a copy of the article via email, with a quick note that says, “I saw this article and thought you might find this information interesting. I certainly hope that you and your family are well.”

This will have a tremendous impact on your clients' opinion of you. Don't you think you will be the first person to pop into their mind when they overhear a co-worker saying they need a professional who offers the services you provide? This is what customer relevancy is about: BUYING BRAIN CELLS. Remember, your marketing doesn't always have to be about your vocation. Believe it or not, in many cases your vocation isn't evenrelevant to your client. They just want someone they feel comfortable with.

Think about the way you shop for products or services. If you wanted to buy a new pickup truck, there's a good chance you could go to 4 or 5 locations within a 30-minute drive of your home and purchase the exact same truck. But you will buy the truck from someone you trust. This is human nature. People are shopping for someone they can trust; someone they like to work with. They also like to be the shining star, the person that is “in the know,” who refers your good service to their friends and family!

Mortgage Interest Rate Myths

Integrity Mortgage Funding — Wed, 21 Oct 2009 07:54:12 -0500

This may come as a shock to many borrowers, but it's absolutely true. Mortgage interest rates are not set by the Federal Reserve and, contrary to popular belief, mortgage rates are not directly tied to the yields of US Treasury bills, bonds, or notes – including the 10-year Treasury Note. That's right. Despite what you might hear in the media, mortgage interest rates are actually set by lending institutions, and are based solely on the performance of mortgage-backed securities.

For years now, the media and inexperienced loan officers everywhere have suggested that the 10-year Treasury Note, a government-backed security, is directly tied to mortgage interest rates, that the two are separated by a specific interval – which is simply not true. The graph on this page, which shows interest rates for 30-year fixed-rate mortgages and the yield for the 10-year Treasury Note for 13 months, clearly demonstrates this fact.

At a quick glance, yes, it's easy to see why the mistake is made. As you can see, for 11 out of the 13 months recorded in the graph, the yield of the 10-year Treasury Note and interest rates for 30-year fixed-rate mortgages did follow a somewhat similar long-term path, despite obvious short-term divergences. However, take a closer look at the drastic change that occurs from January through March 2008. What's interesting about this graph is that, during this period, the Federal Reserve had cut interest rates six times, from September 2007, to March 2008, and yet mortgage rates were actually higher in March 2008 than they were a year before. Not only does this demonstrate that the yield of the 10-year Treasury Note is not pegged to mortgage interest rates, it also reveals that mortgage interest rates are not set by the Fed either.

Stop being misled. If you or someone you know is thinking about buying or refinancing a home, email or give us a call at 678-648-5626. We'll give the facts you need to make a truly informed decision

The Art of Database Management: Reporting and Managing Information

Integrity Mortgage Funding — Fri, 16 Oct 2009 07:35:33 -0500

The second part of Bill Gates' famous quote from Business at the Speed of Thought deals with the subject of reporting and managing the information you've gathered. The unfortunate reality is that many people have databases full of useful information, but they simply don't use the information effectively. Many people think of a database as an electronic Rolodex®, when it is really so much more than that. A database is a living, breathing, proactive platform that can generate predictable results and keep bringing in new business for you.

The only way to turn your data into useful information is through reporting. The more you know about your customers, the more you will be able to market to their relevant needs. In Part II of this series (Gathering Information), you were provided with a list of questions to ask your client.

Let's look at the question of "What are your hobbies?" and see how we could use that information to create a better relationship with our clients. Wouldn't it be terrific if you had notes on all of your clients, and knew if they were fans of the Atlanta Braves, Tampa Bay Buccaneers, or Cleveland Cavaliers? If you knew that information and could run a report listing all the people who fall into those categories, you could send those groups of people a congratulatory email whenever their team wins big, and connect with them on their level.

If you knew the timeline up front when a client stated they were expecting an increase or decrease in pay, or any expected change in their financial situation, you could run reports on that information and proactively be ready to service them. Wouldn't this constitute terrific service? Don't fall prey to the never-ending cycle of gathering information over and over again and doing nothing with it. Remember, stagnant data does nothing to help you build your business. You need to be able to compile intelligent reports and use them effectively.

I like to use drop-down menus in my database management software because, for reporting purposes, it is extremely important that the data you input is consistent. If you list some of your clients as "Bucks Fans," some of them as "Buccaneers Fans," and the rest as "Tampa Bay Fans," then your statistics would not be correct if you ran a report on how many "Buccaneers Fans" you had in your database. But, if you use a drop-down menu that allows you to select one option that is consistent (e.g., "Tampa Bay Buccaneers Fan") then you will have consistent results as you run your reports. This is called normalizing your database, and it solves a lot of these problems.

How Much Money Should You Borrow?

Integrity Mortgage Funding — Wed, 14 Oct 2009 08:50:08 -0500

While it might be tempting to borrow whatever amount of money your lender is willing to give you, it's important to think carefully about how much you'll actually need to borrow in order to purchase a new home. From the down payment to taxes to insurance and interest rates, there are many factors to consider when making this important, life-changing decision.

Contrary to popular sentiment, there is no standard formula for accurately calculating the specific dollar amount you should borrow when purchasing a new home. Many websites do offer special borrower calculators that claim to factor in important variables, and yet final results vary vastly from one site to the next. Other websites offer general rules of thumb, suggesting that you should never borrow more than 2 1/2 to 3 times your gross annual income, or that 28%, 32%, or even 40% is the maximum amount of debt you should ever take on.

And, while these insights may be helpful as you begin thinking about the overall borrowing process, meeting with a reputable loan professional and getting yourself pre-approved (not pre-qualified) is really the only way to know the exact amount of money you can and should borrow. By getting pre-approved, you not only increase the chance of finding the perfect house for your needs, you also become a "cash buyer", instantly increasing your bargaining power.

As a mortgage professional, I see my role differently than a traditional loan officer. While my job is to match you with the best mortgage available for your specific needs, I feel that it's also my duty to make sure it's the most responsible product as well. After all, what if something unforeseen or unexpected were to occur? What if you have an accident or you lose your job?

Whether you choose to work with me or not, be aware. A lender will often offer you the maximum amount of money that you qualify for, whether you actually need the full amount or not. Because of this, it's vital to sit down with a professional you can trust to figure out your complete financial picture.

If you or someone you know could benefit from this type of free consultation, email or give me a call at 678-648-5626. I would be happy to assist you!

The Art of Database Management: Gathering Information

Integrity Mortgage Funding — Fri, 09 Oct 2009 20:54:44 -0500

Most of us are sales people when you get right down to it. Our job is to sell our services - and ourselves - as we strive to add more clients to our existing book of business. The unfortunate fact is that most of us are in such a hurry to sell our services that, in the process, we forget to do the most important thing relative to sales.

Remember the quote from Bill Gates? The most important thing we can do is gather as much information as possible and understand what our customers need. From there, we can construct a presentation that has a high probability of giving them exactly what they want and hitting the bull's eye.

We've all heard of The Golden Rule, "Do unto others as you would have them do unto you."

I prefer to consider The Platinum Rule™ which states, "Do unto others the way they would want you to do unto them." The only way to accomplish this is by asking intelligent questions up front when speaking to clients and making a better effort to understand them. Here are some examples of questions you should be asking clients at your first meeting:

What are your hobbies?

Do you have a clearly defined investment strategy?

Would you consider your investment strategy to be conservative, moderate, or aggressive?

How old do you want to be when you are financially independent and completely debt free?

Do you currently have a college fund set up for your children?

What is most important to you about the relationship you are seeking with someone in my profession?

What is your preferred form of communication during this process?

If you had honest answers to all of the questions listed above, on every one of your clients, wouldn't you stand a better chance of being able to provide them with what they need, thereby ensuring they will be clients for life? Wouldn't they also refer more of their family, friends, and co-workers to you?

Avoid Changes to Your Financial Profile During the Loan Process

Integrity Mortgage Funding — Wed, 07 Oct 2009 07:32:30 -0500

Once your loan package has been sent to the lender, there are a number of things you should avoid doing that will change your financial picture, especially now that underwriting guidelines have become strict. Remember, the lender is looking for stability and consistency. If you want the best interest rate, keep that in mind. Here are a few things to consider:

The lender is looking to see what your source of down payment is.

Your lender will most likely ask you to provide proof of yourliquid assets. This includes bank statements for checking and savings accounts, verification of investments, and any other liquid assets. Some of the things they ask for may seem trivial, but keep in mind, if you are planning a move to a new home, it's important to have all documentation readily available. If the lender asks for cancelled checks or deposit receipts to meet certain conditions, you want to be able to find these things quickly to avoid delaying the closing of your loan. Make sure your paper trail is easy to document, and don't move money from one account to another.

Major purchases tip the scales against your favor.

Avoid making any major purchases. You might be thinking about purchasing new appliances for the new home. This is not the time to do it. Avoid making any major purchases on jewelry, appliances, furniture, vacations, or anything with a significant price tag.Buying or leasing a car can make a negative impact on the way the lender views your financial status. This is a big ticket item that dramatically affects your debt-to-income ratio. You may feel you have room in your budget to purchase a new car, and think this is a worthy investment if you are looking for a home that will mean a longer commute for you on a daily basis. But by tacking a car payment onto your existing debt, you reduce the amount that you will qualify for in a home loan. A $400 a month car payment can reduce your approved loan limit by as much as $50,000. Think about doing this after your loan is approved if you really need it.

If you have to change jobs, you may be asked to document why this change occurred.

If you are changing jobs to increase your income, that's a no-brainer for the lender. If you have an erratic work history to start with, another job change may make it look worse for you.If you are an hourly wage employee, most likely a job change will have no effect on your ability to qualify for a loan. If you have a track record of a consistent amount of overtime or consistent bonuses over the last two years, the lender views this favorably. If you change jobs, there is no way of knowing if the new employer will pay overtime. Many do not! If you work on a salary + commission or straight commission basis, it has a dramatic effect on your stability. If you are considering starting your own business, again, this is something to consider after your loan is funded.

Email or call me directly at 678-648-5626 for a free consultation.

The Art of Database Management: Working Smarter

Integrity Mortgage Funding — Fri, 02 Oct 2009 08:39:57 -0500

The relationship you develop with your customers, combined with the personal information you are constantly collecting, can be a goldmine for future business. The fact is most business professionals spend a significant amount of money marketing to people they don't know in an effort to procure new business.

Wouldn't it make more sense to go deeper with your existing clients – to really understand their needs – and spend your marketing dollars on people you already have a relationship with?

In Bill Gates' book, Business at the Speed of Thought, he states:

"How you gather, manage and use information to serve the needs of your customer will determine whether you win or lose in your business."

This is a terrific definition of database management. Database management is about gathering information about your customer so you have an understanding of their relevant needs. From there, you can proactively structure a plan to give them exactly what they want.

Have you ever provided excellent service to a client only to have them turn around and use the services of one of your competitors without even giving you the opportunity to make a bid for their business? When this happens, it happens for a reason. The fact is, your client had a need and you weren't there to fulfill it for them, probably because you didn't even know they had a need.

We now have the ability to run reports and analyze the information you have about your customers. You can then use that information to put yourself a step ahead of the competition. By proactively serving your clients' needs and interests, you will no doubt become more successful.

Shopping for the Right Mortgage

Integrity Mortgage Funding — Wed, 30 Sep 2009 09:03:51 -0500

Finding a mortgage that's right for you should be easy. But there are often many different programs to choose from, as well as a myriad of ways to structure the loan in terms of the amount, term, payment, rate, closing costs...the list of options may seem endless.

However, because there are so many options available, it's important to seek advice from an experienced mortgage professional who has your best interest at heart. The first step in determining which program is right for you is to ask yourself the important questions listed below. These questions can also help you confirm that you've chosen the right mortgage professional as well, because he or she should be asking you the same questions before trying to put any mortgage in place:

How long do you anticipate living in your home?
Do you expect any changes over the next few years, such as expanding your family or having children go off to college or even move away?
Do you expect any changes in income due to promotions, relocations, retirement, inheritance, or pensions?
Are you expecting a change with regard to your investments?

When it comes to investment strategies, are you conservative, aggressive, or somewhere in between?

The reason these questions are so important is that different loan programs will offer specific benefits that will appeal to borrowers at different stages of life. What one homeowner might find desirable might cause another to reach for the Rolaids®.

In the end, be sure you are given a complete picture of exactly how much your mortgage will cost you over the period of time you anticipate having the loan in place. This is the single most important factor you should consider when shopping for a mortgage. Not only does this data illustrate the bigger picture of your financial goals, it allows for adjustments should things change a little sooner than expected. A good timeframe for this projection is anywhere from three, five, or even up to seven years.

When shopping for a mortgage, you should always evaluate your choices carefully and consider how they will fit in with your long-term financial plan. Answer the important questions listed above and email or call me at 678-648-5626 for a free consultation. Together, we'll find the program that's best for you.