John's Blog

I'm a Stats Junkie and What YOU can Do to Avoid It

John Parker - Texas Veteran Loan Officer — Sun, 10 Feb 2008 00:04:47 -0600

I admit it...I am A STATS JUNKIE...

No, I'm not addicted to Active Rain...I'm not addicted to Hittail.com, I'm not even addicted to Google Analytics...

I am addicted to Google Webmaster Tools...

If my wife thought that I had a mistress, her name would be Webmaster Tools...

Many of you never even heard of it...

Thinking of that, I have to ask you...Why haven't you?

I check it weekly...Without it, I wouldn't know that this week my website ranked #14 for the search term VA Home Loan, up from #45 two weeks ago or the fact that I went from #4 to #7 for Texas Vet Loan three weeks ago.

Do you know this information? Do you track your results? Do you know your future?

How I almost became a TV star! and why I'm not better than you

John Parker - Texas Veteran Loan Officer — Sat, 09 Feb 2008 23:16:08 -0600

Wow, I've been gone for awhile...I really don't have an excuse...

If you've been following the media, every mortgage company in the US is going out of business and there is a 30yr supply of homes for sale. To be honest, I don't watch the news...I stopped watching it when I started to think that the media is the tail of the country and it is wagging the dog.

For the last two months, I have been concentrating on my family first and working on my business and VA Home Loan website second. I've also been networking more and sharing more of my personal information with people I work with.

This last week, I was discussing real estate with a Dallas agent...He was telling me how bad his business was and how depressed he was.

I decided that I would pick his spirits up and let him on a little secret...A secret that only ONE other person on AR knows about...

How I, John Parker, almost became a TV star...

Most of you don't know this (except for one person on AR) but I am a HUGE motorcycle fan...I have eaten, breathed and talked about Harley Davidson motorcycles for most of my life...My parents tried to squash my motorcycle fetish when I was young by not buying one for me. I did what most 12 yr olds would do and got a paper route to save up money to buy my own motorcycle...Of course, once I saved up enough money they wouldn't let me actually buy one...So, I bought my first BMX racing bike in 1978...I road it, raced it and eventually ended up racing road bikes in Europe while in the military from 1988-1992...

Oh, wait...that doesn't have much to do with my motorcycle fetish except for the fact that I love riding on two wheels (I still love to ride my bicycle though)...

This whole post has to do with how I was almost a TV star...For that, you will have to watch a video that my family and I made a few years ago...

Here it is...WAIT, you need to know the story behind the video before that! A few years ago American Chopper decided they wanted to give out 4 bikes to people with the best 3 minute video...

Shortly after I sent this video in, it was judged against 10,000 other entries...I was 1 of TEN other people that were flown to Burbank to be interviewed for a weekend...After that weekend and about THREE months of waiting, 4 people were chosen to be the recipient of a custom motorcyce and to be the star of an episode of American Chopper on the Discovery Channel. I have become friends with all of the winners and we still email to this day.

The weekend that we were notified that we were notified that we didn't win, my wife cried for about two hours...I was seriously depressed for the next few hours...

Until...

Later that day, we were also notified that her sons father died in France AND the next day, my wifes brother also passed away.

In retrospect, I would like to say that you need to keep your life in perspective and don't get upset by things that may not be so important...

Remember, family comes first!

Senate Passes Mortgage Relief Bill

John Parker - Texas Veteran Loan Officer — Fri, 14 Dec 2007 14:17:30 -0600

I just received something interesting in my email inbox from the president of our mortgage company.

It seems that the senate just passed a bill that will lower the amount of funds required from the buyer of a home when using an FHA loan, so instead of 3% it will be 1.5%.

On top of that, it also will raise the maximum loan amount on FHA loans to $417,000.

The reason I feel this is important besides that fact that borrowers will need lower down payments is because both Fannie Mae and Freddie Mac have both imposed recent adjustments that will cause the rates on some loans to go up.

This will be huge for the industry if it happens especially if you are lucky enough to be an FHA lender.

Senate Passes Mortgage Relief Bill

John Parker - Texas Veteran Loan Officer — Fri, 14 Dec 2007 14:17:26 -0600

I just received something interesting in my email inbox from the president of our mortgage company.

It seems that the senate just passed a bill that will lower the amount of funds required from the buyer of a home when using an FHA loan, so instead of 3% it will be 1.5%.

On top of that, it also will raise the maximum loan amount on FHA loans to $417,000.

This will be huge for the industry if it happens especially if you are lucky enough to be an FHA lender.

What to do with a HUGE old website that doesn't work!

John Parker - Texas Veteran Loan Officer — Wed, 05 Dec 2007 23:11:36 -0600

I was looking at the traffic logs of my website today and I found the search query

"refinancing while in an active bankruptcy"

The article on my Dallas Home Loan was relevant when I wrote it a couple years ago but since times have changed I decided to look at this article and determine whether it was still useful.

After reading this old post, I realized that it was still pretty much true except for the fact that I suggested to readers that they may have to use a 2 or 3 yr ARM, which is kind of strange since I have always used FHA loans which I also suggested in the article.

This website has over 500 pages indexed on Google and almost 600 on Yahoo so it is hard for me to rewrite all of the pages. There are around 600 total pages

After looking at my traffic logs more, I realized that I was receiving search terms such as:

100% NINA rate

sub prime home loans with no down payment for credit scores above 500 in texas (thats a long one)

and

If I file bankruptcy Chap 7 can I get a mortgage.

Plus many more normal search query's...

That's when I realized that this old site of mine has a terrible design!

It was an experiment a few years ago that actually worked to get potential customers to inquire but three years later has a lot of traffic, many top 10 results but few loans lately.

It has paid for itself a thousand times over (I only spend money on hosting)

So, what are my options?

The first one is to put Adsense on all of the pages (with over 600 pages, that doesn't sound fun).

The second option is to design a new site similar to my VA Home Loan website based on the Joomla CMS which would probably take me out of the search engines because the URL's wouldn't match.

The third would be to design a new template with usability and transfer and rewrite all of the articles to the new design with matching URL's.

I could just leave it like it is...Old and ugly...

It's such an embarrassment since I have been marketing via the internet so long...

What would you do?

Texas Vet Loans are Green!

John Parker - Texas Veteran Loan Officer — Wed, 05 Dec 2007 21:10:58 -0600

Veterans from the state of Texas can be delighted of the fact that their Texas Vet loan program vigorously supports green issues.

The Texas Veteran Land Board has a history of the preservation of our geological reserves .

One of the ways that this support can be evidenced is in the superiority and energy proficiency of the Texas home loans that it approves.

Therefore, effective January 1, 2007, all new-construction homes financed through the Texas Veterans Housing Assistance Program (VHAP) must meet the U.S. Environmental Protection Agency's (EPA) guidelines for ENERGY STAR suitable homes.

What does this new policy mean to a veteran applying for a Texas Veteran loan through the VLB?

In literal terms, it means that each new home will need to understand all of the printed EPA guidelines for efficient heating and air .

This includes the completion of a Thermal Bypass Checklist by a approved Home Energy Rating System rater.

This ensures that the insulation and other interior air barriers are accurately installed.

The bottom line is that you will know that your new home will make the best use of the resources vital to keep your residence comfortable.

This not only helps preserve our natural assets, it can also save you dough on your yearly central heating and cooling bills.

When it comes time to buy that new home or change the one that you have, make sure you are dealing with individuals who know the wishes and the property associated with VA and Texas Veterans home loans and are receptive to our fragile environmental resources.

The Top Five Reasons Most People Fail at Pay Per Click

John Parker - Texas Veteran Loan Officer — Sun, 02 Dec 2007 17:26:48 -0600

Before you read this, please understand that that PPC is a science that take years to master.

I have been marketing on the internet since 1993 and I have worked with PPC campaigns for about 8 years.

There are MANY more reasons (I could write a book on it) that you can fail at PPC but these are what I think are the Top 5.

I have been running my current campaign for almost a year, it has been so successful that I have had to hire another loan officer to handle all of the leads for me (I take all of the phone calls).

It keeps us so busy that we only run the campaign for two weeks a months.

In fact I turned it off three weeks ago, and don't plan on starting up again until after New Years because we have enough leads to keep us busy until then.

1. Not researching keyword terms correctly

The #1 mistake that I see many mortgage and real estate professionals make is that they only use the keywords that they think will be searched for. When I started the PPC campaign for my current website, I had 20 keywords...After the proper research, the list soon expanded to over 700. I like Wordze but there are many others that provide similar results.

2. Using one ad and not split testing

While there is quite a bit of discussion about what types of ads work best, the truth is that you always need to have two of them running against each other at all times and keeping the best producer after a couple weeks, then adding another one and start testing all over again.

3. Sending visitors to the home page

This is a HORRIBLE, HORRIBLE mistake, whatever you do, NEVER send your PPC visitors to the home page. The page they land on needs to be relative to the ad they clicked on and it also needs to ask or the visitors contact information. You are trying to generate potential clients, you are not paying to provide information to them.

Here are two examples from my website. Which one do you think will convert better? Home Page or the Landing Page ?

4. Broadcasting your ad to the whole country

Did you know that most PPC networks allow you to choose which part of the country your ad will appear in? So, if you are a Realtor in Reno, don't show your ads in Denver!

5. Not using conversion tracking

If you don't use conversion tracking then you will go broke!

While it's great to get a lot of traffic to your website, you need to know what keywords are converting and which ones aren't.

I have a low traffic .07 cent keyword that converts at a rate of 50% while I used to have numerous high traffic $5.00 keywords that converted at 1%.

Conversion tracking lets you know which combination of keywords and ads give the best conversion rate and keep more of your money in your pocket!

My website was added to DMOZ!

John Parker - Texas Veteran Loan Officer — Sun, 02 Dec 2007 16:19:41 -0600

I just had to share my excitement with everybody

My VA Home Loan website was added to the DMOZ directory, the only reason I found out was because I was checking my Hittail stats and noticed a DMOZ editor had visited my website.

I ended up submitting my website to DMOZ twice, once about eight months ago and about two weeks ago.

The first time it was declined and I kept working on the site and decided to resubmit after I started receiving more search engine trafffic and my PR had went from 0 to 2...

In the Texas category, there are only 82 listings for mortgage companies...not very many for such a large state...

It makes me wonder what the editors at DMOZ are really looking for...

Taking Down an Internet...err Active Rain Predator

John Parker - Texas Veteran Loan Officer — Mon, 12 Nov 2007 00:08:20 -0600

Do you hate people that 'game' the Active Rain system?

Their bogs are nothing more than copy and paste sections of their websites or actually plagiarisms from other websites?

I do!

Really, I don't care about the points system here on AR but I do think that it does reward those who contribute unlike some of the other networking sites on the web...

What I truly despise are members that try to take advantage of the system...nothing makes me more angry (except for loan officers that try to bait and switch borrowers)...

If you read my post Why do you cheat on Active Rain?, then you would understand my frustration with the system...

I had a rogue loan officer that was copying and pasting bogus content on his bog in an attempt to help his main account gain points...

I emailed him on two occasions and asked him to remove duplicate material to make it fair to other members...he never responded...

You see, I am a newer member of AR, been here a month and I'm not sure how things work...However, I've started speaking with some of the AR members in my area that have been here for awhile and networking with them...

Finally, I asked one of the members what should be done about this rogue blogger...This member emailed another member who knew somebody, who knew somebody at AR...one of those "I know a guy who know's a guy who know's a guy" type things...lots of layers involved...

What did they do for me?

Well, they gave me an email address... and I sent an email...and a couple hours later a received a response...

What did the email say?

Well, to paraphrase...it said... We do not allow this and he will be given a choice to delete all of his accounts and blogs except for one...or they will all be deleted...

What you alway wanted to know about Veterans Day and were afraid to ask

John Parker - Texas Veteran Loan Officer — Sun, 11 Nov 2007 23:21:23 -0600

It's Veterans Day!

The banks are closed, schools are open and for the most part nobody thinks of it...it takes a back seat to Memorial Day because most people feel that they honor the same thing when in fact they don't...

Before I get into the difference, I would like to explain what I typically do the night before Veterans Day...well, I do almost the same thing the night before Memorial day...

What is that?

Well, what I typically do is find two or three military themed movies that I have in my DVD collection...In my collection, my wife and I have just about everything that you can think of...everything from The Deer Hunter to Full Metal Jacket...I have watched most of them hundreds of times because they all remind me of some experience that I had sometime in my military career...

This year, I decided to watch one movie that I hadn't watched in a year or so (Gardens of Stone) and a new movie that we picked up from Blockbuster (Home of the Brave).

The reason I picked these two movies is because they are about two totally different wars (Vietnam and Iraq) and they both deal mostly with life stateside during and after the characters war experience...Both of these films are not highly acclaimed but they are both realistic.

"Gardens of Stone"'s main character is a member of the Old Guard, they guard the tomb of the Unknown Soldier and bury war dead at Arlington cemetry...I relate to this movie because I was an Honor Guard member (they also conduct funeral details). This film deals with the main character's stateside life while in the Army before he goes to Vietnam and the events that take place after he is assigned there.

The next movie I picked was "Home of the Brave", it has some war scenes but it mainly deals with how the characters deal with blending back into civilian society after the Iraq war...I really liked this movie because it really deals with the personality changes that many veterans experience after being subjected to that environment and the how the adapt.

Even though I am a military Veteran, I am not a veteran of either of these wars...In fact, I am not a veteran of any war...The closest I came was working in the command post underground a few hundred miles away from Kuwait during Desert Shield and Desert Storm...yes, I got a medal for supporting it and others did too...

I also had some friends perish in Kuwait, Iraq and Afghanistan...I remember them on Memorial Day...and Veterans Day too...

In fact, I remember all of my military friends and all veterans on Veterans Day because that's what this day is about!

This is the day that we remember all veterans, whether they are living or not. Whether they have served in a war zone or not...

How does Squidoo work?

John Parker - Texas Veteran Loan Officer — Thu, 08 Nov 2007 22:19:26 -0600

OK, this isn't a post explaining how to use Squidoo...I am asking for some help...I've heard about it but never used it. I am sure that there are some SEO experts that could answer this question.

Is this a social networking tool or an SEO tool? Does it help establish the neighborhood of the RSS feeds and Blogs that you put on your Lens?

It's very confusing to me, but I am sure that there are others out there with the same questions.

I just signed up and created a lens for my Texas VA home loan website.

If you are experienced with Squidoo can you look at it and let me know if I am doing it right?

Why do you cheat on Active Rain?

John Parker - Texas Veteran Loan Officer — Wed, 07 Nov 2007 19:26:58 -0600

Let me ask everybody...

Why do you cheat on Active Rain?

Now, I'm not talking to all of you honest people...

I am talking about the Active Rain users that get 20,000 points in one month (under multiple user names)

On multiple accounts...

Why do these same people steal content from somebody elses website and post it on here as their own?

Why do they then post pages and pages and pages of this stolen content on multiple blogs under different user names in different cities?

Please tell me, why do you do this?

Oh, wait...You're not reading this because you don't respond to anybody elses blog...

Sorry about my rambling, I've just noticed a very disturbing trend...

Active Rain boosts Google Rankings

John Parker - Texas Veteran Loan Officer — Wed, 07 Nov 2007 16:30:06 -0600

OK, this is going to be short and sweet...

I have noticed that since I have been using Active Rain that my Google rankings have went up

I'm sure that it is probably because I am linking pages on here to my own websites...

I've also read posts by Tom Burris about Google Juice, I kind of took it with a grain of salt...

However, I use a tool called Hittail, Hittail allows me to see which search terms are being used to find my website and then advises me on which subject to blog about...

It's a very useful tool and it also allows me to conduct the same search to look at the results...

So today, I am looking through the search terms used to come to my website, the longtail term was

home loan officer in texas, when Google showed the search, the Top 2 rankings were from Active Rain...Tom Burris was #1 and my VA Home Loan page on Active Rain was #2...

then a couple of listings down was Tom's Dallasloanguy website...

How cool is that, two Active Rain pages actually ranking higher than Tom's real website?

This is actually not a new thing, I have noticed that Tom and I both have search rankings that are very similar for many terms whenever I do my daily checking...

Oh, and the tool I mentioned above, Hittail...it's FREE... http://www.hittail.com

Do you need you need to use the builders lender?

John Parker - Texas Veteran Loan Officer — Tue, 06 Nov 2007 14:44:13 -0600

I've been hearing this question a lot lately.

Homebuyers that we have pre-approved are coming back saying that the builder is requiring them to use the builders lender.

Well, they legally can't force you to use their lender but they can give incentives to use them.

This isn't a problem unless the builders lender doesn't provide the same programs.

I specialize in Texas Veteran Home Loans and many of the builders do not provide all of these programs.

Check out my blog post that describes this in more details and even discuss how to get a VA Home Loan and still get a great deal on your home.

Giving Your Home A Makeover

John Parker - Texas Veteran Loan Officer — Fri, 26 Oct 2007 00:57:21 -0500

You would probably be hard pressed to find a single person that loves every feature of their home. Most of us have a laundry list of things that we would like to be done to make the house perfect. But is it important to implement those plans?

Our homes are one of our most important investments. And the design and function of our home affects our lives every day. But in terms of investment potential, are we more likely to make money on our property if we remodel or move to a home that's a better fit?

Sometimes remodeling pays off and sometimes it doesn't. Almost always, the remodel represents a significant investment of money. No one wants to invest in something that won't pay off, but it can be hard to determine if your plans offer true potential profits. Click here and learn which improvements add value to your home

You can use some points to help you evaluate whether the remodel is worth it or not, or whether it will affect your home's resale ability. Here are a few points to consider.

Does it affect the curb appeal of the home?

Is your remodel going to make your house more attractive? If you were trying to sell your property, would it make people more inclined to stop and take a tour? Sometimes minor investments, like a fresh coat of paint on the front door, a few new flowering shrubs and a groomed front lawn are all you need to make the house presentable from the curb.

Will the remodel make your home competitive with your neighbors?

Is there something about your home that is lacking, that other homes have already? Maybe you need to add an extra bath. If you only have one bathroom when all the homes surrounding you have two or three, the remodel will definitely make your home more competitive with the those surrounding it.

Will the remodel make your home stand out?

Is there something about the remodel that will make your home distinctive from other homes? Emotions guide most buyers, and if they see features that are attractive, even upgrades from other homes, you property is more likely to resonate with them as being attractive.

Is your remodel going to add something people like or demand in houses?

Just like with clothing, there are parts of a home that become fashionable and parts that aren't. For instance, stainless steel appliances are far more appealing than old generic white ones. Think about trends and the length that it will be in place before you make final decisions about what to add to your home and how buyers may view it.

Renovating is something you do for yourself and your family to make your home more enjoyable, but it's also something you have to think of in terms of attraction to others. Depending on how long you intend to be in a home, unless the remodel makes the home more "sellable", it may just not be worth it. On the other hand, some changes add great value to your personal enjoyment of the home.

Remodeling your home can help you fall in love with your home all over again, and it can be a great long-term investment strategy. A good remodel can add years and dollars to your home.

If you're considering remodeling and would like to explore different financing options, feel free to contact me or simply reply to this newsletter.

Is Now the Time to Sell Your Home?

John Parker - Texas Veteran Loan Officer — Fri, 26 Oct 2007 00:52:49 -0500

If you have been thinking about selling your home, you might be a little bit deterred by the slow down in the real estate market. You may even be asking yourself if you have missed the opportunity to sell.

Before you decide that you are going to have to stay in your home longer, realize that there is never a right or wrong time to sell a home. Demand will vary, there are definitely peaks and valleys, but overall, there will always be buyers and sellers.

Before you get ready to put your house on the market, take the time to evaluate whether this is the right move for you. If it is, you want to prepare your house to sell quickly. Read here about how to improve the ability to attract buyers.

The following steps will help you with the decision making process.

Call Me First

You may think that you qualify for that "move up" home, but some home buyers have found themselves in uncomfortable positions. Before you go out shopping for new homes, call me. I will take the time to discuss your options, evaluate your buying potential, and help you become prequalified.

I will help you determine whether this is the right time to sell and also help you determine what your buying potential for a new home could be.

How Much is Left On Your Mortgage?

If you are like most people, you have a rough idea of how much you have left to pay on your existing mortgage. But it is better to get a truly accurate amount. Find out how much your pay off amount will be, so you can evaluate it against your potential sales amount.

What's Your Home Value and Selling Costs?

I can refer you to a qualified real estate agent to find out how much your home is worth. They will pull "comps" or sales prices for other homes in your neighborhood.

At the same time, the real estate agent can also give you a rough estimate of total expenses which include commissions, fees for attorneys, taxes, and expenses.

Deciding to sell your home is a big decision. Before you put your home on the market or start looking, contact me so we can make sure that it truly is the right time for you.

Are you afraid of VA Home Loans?

John Parker - Texas Veteran Loan Officer — Wed, 24 Oct 2007 23:16:24 -0500

Are you afraid of VA loans? Scared that the appraisal may come in low? Frightened that the loan process will be too slow? Worried about an out of state lender?

Since I became a preferred lender for the Military Housing Assistance Fund, I get to deal with selling agents in the many states that I work in. I usually receive a phone call from the selling agent before the contract is accepted asking me many questions and doubting my ability to close the loan on time or possible problems with the VA appraisal.

I take it slow and explain that a great deal of my transactions are VA or Texas Veteran loans and I refer them to my VA Home Loan website. It usually calms their fears and we close the transaction on time and everybody is happy.

I posted about Fast VA Home Loans on my blog and what you need to look out for if you receive an offer that involves a Veterans Home Loan, check it out and let me know what you think.

BTW, if you are one of the agents that receives a contract from one of my borrowers, please feel free to contact me!

This Assumption is Costly

John Parker - Texas Veteran Loan Officer — Wed, 24 Oct 2007 02:20:36 -0500

In the mortgage and real estate business, making assumptions can
lead to costly mistakes. One assumption we make is that good
service will lead to referrals, or that the best time to solicit a
referral is at the end of the sale. This assumption can be just as
costly to your business as any paperwork error.

Maybe you think there's a logical foundation for waiting till the
sale is complete to solicit referrals. When the sale is finished,
the client has experienced your entire service and is the basis
for referring others. Or maybe you think that clients only give
referrals when the complete service is rendered.

This business theory is a myth. A home sale is a process with many
steps, and you deliver quality service all the way throughout it.
You have multiple opportunities to create an impression, and your
client will discuss your performance with friends and acquaintances
- provided you have laid the foundation for those referrals.

Set the Stage for Referrals

It's easy to establish a foundation for referrals - but it takes
more than simply asking for it. You need to educate the client -
teach them what to expect in the home buying process.

Clients remember what they read, not just what they hear. Using
materials makes your information visible and improves retention.
My materials are part education, part customer service, and part
referral request. I put together a package with mortgage options,
brochures and cards.

I let the customer know just how important their mortgage is to me,
and how important their referral is from the start. And this
process has really paid off.

If you want to see how simple it is, view my introduction letter below:
Borrower Into Letter

By planting the seed to referrals early in the process, it keeps
my service top-of-mind to the client - they refer more people to
me and sooner. Set the stage for referrals and your business won't
suffer from assumptions.

I would enjoy hearing how you set the stage for referrals in your
business.

About Me

My service focuses on providing clients with a stress-free lending
experience and helping real estate agents build loyal clients. I
understand what's involved with rendering quality service that
stimulates referrals and builds client loyalty.

If you're searching for ways to increase your referrals and improve
client loyalty, contact me to learn how my strategies can help make
a difference.

Until then, all the best!

John Parker
"Helping Agents Build Loyal Clients"

Stop trying to steal my client! HELP!!

John Parker - Texas Veteran Loan Officer — Tue, 23 Oct 2007 23:32:17 -0500

For the last couple days, I have had the unfortunate opportunity dealing with a Realtor that "knows it all", and thinks that she is "doing what is best" for her client, actually MY client.

One of my websites http://www.va-home-loansonline.com/ gets quite a few prospective homebuyers coming to it on a daily basis. They fill out the form for us to contact them or call us because we get quite a few veterans in the state of Texas that have a hard time finding a loan officer that wants to help them get a VA loan. We then refer them to realtors around the state.

Three weeks ago, my team received a phone call from a veteran who didn't want to go through a lot of hassle. He wanted us to get him approved for a loan and to also help him find a realtor. After checking his credit and running down all of the options, we found that he qualified for a Texas Veteran home loan and his rate would be 5.49%, we were charging 1% origination and no junk fees, we weren't even charging the typical 1% Participation Fee. He is a disabled veteran and doesn't even have to pay the VA Funding Fee. Over and over, he told us that he didn't want a hassle and that he felt safe doing business with us.

The only problem was that he lived in a different part of the state and I didn't know any agents in that area, so what did I do? I contacted a local agent that I do business with to place the buyer through her referral network. She works for a larger company that has offices all over. The referral was sent over with a copy of my pre-approval letter and instructions not to try switching the buyer to another lender.

Well, what happened next was absolutely crazy. The new buyers agent decided that she needed to tell the buyer that a Texas Vet loan was not in his best interest and that she had a lender that could get him a conventional loan with much better terms.

She then called my agent and complained that she shouldn't have to pay a referral fee to her because they were in her town and should have come see her in the first place. She also explained that she gets paid more if she gets the buyer to finance with her mortgage company (they don't do government loans).

What happened next was that we received a call from a buyer almost suffering a panic attack because this realtor was doing exactly what he didn't want. We spoke for awhile, calmed him down and explained why this was the absolute best option for him.

Then, I called the realtor who referred them to this agent and told her what was going on. She was kind enough to email her broker and the receiving agents broker about how she didn't feel the referral was appreciated and that something needed to be done.

The buyer is sticking with us and fired the agent! Oh, we also received their executed purchase contract today! Serves her right!

I do quite a bt of business in this area and could have been a good source of business for this agent.

So, tell me...Is it standard to bite the hand that feeds you?

How to Improve Your Credit Score

John Parker - Texas Veteran Loan Officer — Fri, 19 Oct 2007 00:11:27 -0500

How to Improve Your Credit Score

One of your most important assets is something you may not even think about much - your credit score. Your credit score affects your ability to purchase a home or refinance. But even if you don't plan to purchase or refinance in the near future, you should still consider the importance of your credit score and keeping it in good shape.

Your credit is used to determine what types of loans or credit can be extended to you, whether you will receive approval for a loan, and what interest rate will be extended to you. The better your score, the more appealing the mortgage type and the interest rate.

Understanding Your Credit

Three privately held national companies collect information about your credit - Equifax, Experian and Trans Union. Credit scores are based on a scoring system called the FICO model, which ranks credit on a scale of 300 (lowest score) to 950 (highest score). The higher the credit score, the less probability of an individual defaulting on a loan. So, lending organizations prefer borrowers that have higher credit scores.

Credit bureaus collect information, beginning with identifying characteristics, such as name, address, social security number, your employer, etc. They also collect information on debt and payment history on a variety of loans - credit cards, student loans, car loans, and consumer loans. In fact, most companies or businesses that extend loans supply the credit agencies with payment information.

This information is compiled along with any previous history of collections, information about tax liens, judgments and bankruptcies. Another important piece of information that is gathered is any inquiries for new credit - any applications for credit cards or new loans.

Consumers and their credit information is protected under federal laws. As an example, your credit score can not by affected by such factors as race, religion, gender, marital status, age, nationality, or whether you receive forms of public assistance.

Building Up Your Credit Score

A healthy credit score can speed up the mortgage process, while an unhealthy (lower) credit score can indicate a pattern of risky behavior that could result in a collection or possible bankruptcy. Fortunately, your credit score changes over time; if you have poor credit, you can work on your credit habits to improve your overall score. Click here for more information on how you can improve your credit score.

You should check your credit score periodically to make sure that the information gathered is accurate. In fact, the Fair Credit Reporting Act requires that the three major credit bureaus provide a yearly credit report on request. You can order your credit reports online by visiting http://johnparker.cmail1.com/l/266191/l//www.archive-post.com/JPark/Ezines/Borrower/John%20Oct_07%20brwr.html/www.annualcreditreport.com or by calling 877-322-8228.

If you search online, you'll find a number of credit report offers - most of them claiming "free credit reports", "free credit scores" or "free credit monitoring". These services are not part of the legally mandated free annual reporting program. Almost all of these services actually have some kind of product or service they sell at a fee. Consumers should not have to pay for services that are freely offered.

Your credit score is a vital part of your financial portfolio. If you are looking for ways to improve your credit and would like some advice call me.

Heard the Latest Mortgage Industry News?

John Parker - Texas Veteran Loan Officer — Fri, 12 Oct 2007 01:15:08 -0500

While there's a lot of buzz about the mortgage industry right now, you may be surprised to know the vast majority of people can still get a great home loan with a great rate.

It's true the problems in the sub-prime market "loans for those with poor credit" have led to a tightening of guidelines for conventional home loans. That's why it's more important than ever to maintain good credit. If you have solid credit and you're able to fully document your income, the good news is that mortgage interest rates are very attractive.

What's the best way to stay on top of your finances right now? Here are a few tips:

Loans with Great Rates Still Exist

Even though there's trouble in the sub-prime market, lenders haven't stopped lending money to people with decent to good credit and a stable financial situation.

Know your mortgage

Understanding what kind of mortgage you have and the terms you've accepted is crucial. For example, if you have an adjustable-rate mortgage that's about to expire or your initial fixed rate is about to become adjustable - it's important to call me as soon as possible.

Just because your mortgage rate may be adjustable, however, doesn't necessarily mean that you must refinance right away. Depending on what your rate adjusts to, you may be safe to stick with your ARM until the market settles down a bit. On the other hand, it may make sense to refinance into a fixed-rate mortgage. I can explain where you stand and what makes sense to do next.

Take care of your credit

In today's market, some people can't qualify for a loan because of poor credit. Avoid the pitfalls by paying your bills on time.

Keep an eye on your monthly spending and credit card statements. Try to only put on your credit card what you can pay off that month. This helps pay off your card sooner and eliminate the possibility of digging yourself into a hole of debt. If you have credit card debt that is weighing you down, Discover how to pay off balances fast!

Despite the fact home loan options today are more limited, mortgages are still available and rates are still historically low. By maintaining good credit, you can get a great deal and stay atop of the curve.

Did Your Mortgage Payment Sky-Rocket?

John Parker - Texas Veteran Loan Officer — Thu, 11 Oct 2007 23:55:24 -0500

Oh, for the days of extremely low interest rates. Mortgage interest rates plummeted during the early years of the decade. In fact, from 2003 to 2005, interest rates were at an all-time low. It was the perfect time to take out an adjustable rate mortgage (ARM).

This adjustable rate mortgage made it possible for many buyers to get into a home, and it also allowed homeowners to save thousands on their first years of a mortgage. But all good things come to an end. With higher interest rates, many homeowners are seeing the fixed-rate introductory period of their ARM expiring.

ARMs Can Be Complicated

There are several options, with varying dates of expiration for the initial low fixed rate interest. But they all have one feature in common: in time, the fixed rate of the mortgage expires and homeowners are faced with a new mortgage payment that adjusts to current interest levels. For many, this can mean that their mortgage payment suddenly adjusts up several hundred dollars.

Even if you can afford the increased payment, with an adjustable loan you aren't guaranteed that your payment won't increase again with the next jump in interest rates. Many homeowners find themselves in a precarious position if rates increase, which could mean financial disaster.

Solutions for Expiring ARMs

With a simple refinance, you can get a fixed rate loan - a mortgage payment that you know will stay the same over the life of your loan. Read the most frequently asked questions about fixed rate mortgages.

Best of all, you can use your years with an adjustable rate loan to your credit advantage, and you may have built equity in your current home that you can apply to your new fixed rate mortgage.

Having an adjustable rate mortgage doesn't mean that you have to stay with a mortgage payment that is sky-rocketing. There are many solutions that will make your mortgage more affordable than ever.

Contact me for more information about refinancing your adjustable rate loan.

Marketing that isn't Pestering

John Parker - Texas Veteran Loan Officer — Thu, 11 Oct 2007 22:07:26 -0500

Studies show it takes 7 to 12 impressions before people act on their intentions. How can you stay not top-of-mind? How do you effectively keep marketing to the same prospects without becoming a pest?

Part of the answer is to create & send newsletters that are content-driven. Nobody likes being solicited repeatedly from the same establishment. If you drive newsletters filled with valuable information, information your prospects will appreciate, then you'll stay visible and they will remember you when it's time to buy.

Read the different content strategies listed below and judge which ones fit your newsletter best:

Tips & Ideas
If you want to become recognized as an expert, this is your best strategy. Helping prospects to solve their problems quickly transfigures you from a stranger to becoming their friend.

Insider Information
This strategy is excellent if you farm a specific neighborhood. If you keep apprised of developments with neighbors, businesses and schools around the neighborhood, families will appreciate learning about it from you, especially if they don't have the time to seek out the details.

Information from other Sources
Do you have a network of relationships with other professionals who serve the community, i.e. interior decorators, home improvement specialists, landscapers, etc.? If so, you can supply families with valuable referrals. And if you secure special discounts from your network, you can pass it along to the neighborhood.

Success Stories
If you're the type who doesn't like to toot your own horn, this strategy is for you. You can creatively describe the quality of your service by using an actual client's story, without it being perceived as boasting. Think of it as a press release with a touch of flair.

Innovation in Progress
Are you the type to purchase the latest gadgets? Prospects who innovate constantly in their business or at home will appeal to this strategy. Even without buying every gadget known to mankind, usually you can find research online, like product and tech reviews, and compile the information and forward as a product review.

Learn from Others
Sometimes you'll learn your best content strategies from watching what others do. If you work in an office with other Realtors®, at your next sales meeting request that everyone bring their newsletters to share with each other.

Prospects don't want to be constantly solicited. When you deliver content, they'll appreciate your helpfulness and it becomes easier to include items that promote your business. Read here for some quick promotional ideas to include in your newsletter

Look at every newsletter and mailing you receive and notice which writers get and keeps your attention. Discover what bores you and what you end up reading and responding to. Always take the best things you like, adapt it to your style and leave the rest.

Do you know which content strategy is my newsletter? Hit reply and tell me which one you believe it is.

Is your website doing it's job?

John Parker - Texas Veteran Loan Officer — Mon, 08 Oct 2007 11:13:29 -0500

Are you making sales monthly from people who surf your website? Everybody has a website, and you may occasionally get some leads, but are you are letting your most effective tool evaporate before your eyes?

Studies by the National Association of Realtors® prove as high as 77% of home buyers surf the Internet to research properties. But surfing doesn’t help you unless you are capturing it. Just like when you host an open house, your goal is to capture traffic and convert it into leads. Is your website doing the same thing?

Here are 3 simple ideas for improving your website and capturing more traffic:

Update Regularly. If you’re not a tech expert, hire one or check out a site you can build on your own. You don’t have to spend a fortune, but you do have to be twenty-first century savvy. The Internet is a home buyer’s first stop.

Offer Information. To generate future business, offer more than listings. You need to offer information that makes the reader want to surf your site and give you their information so you can stay in touch. Give away reports on the local area, for instance, offering the school scores for the neighborhood schools and links to their websites. But before giving away the report, request their email address and permission to send your newsletter monthly.

Provide a Newsletter. Newsletters are great sources of information about communities and neighborhoods. Make your newsletter even more effective by combining it with your website. Buyers will subscribe to it, get it delivered via email – saving you postage, plus provide that frequent contact so when they are ready to buy, they contact you.

Adding these ideas is a start to turning your website into a lead machine. But also consider your site’s design.

With good site design and traffic capturing strategies you could be enjoying more leads and sales. The Internet is continuing to grow, and with it - home buyers searching for properties.

If you have a website, I’d be interested in reading it. Tell me your site’s address and I’ll check it out.

Can You Afford Your Dream Home?

John Parker - Texas Veteran Loan Officer — Mon, 08 Oct 2007 11:02:42 -0500

With demand dropping in the real estate market, now is the perfect time to get a great deal on a home, especially if you are considering stepping up into a bigger, more luxurious home.

When the market is soft, it is tempting to jump into the market, hoping for a great deal. And there are some great deals to be had out there. Unfortunately, some people may find the temptation so great that they get in over their head.

Deciding How Much is Too Much

If you are considering looking for a new home, take some time to calculate just how much you can afford to spend. Chances are you have already searched on the Internet. You may have checked out some of the mortgage calculators and tried to figure out how much you can spend monthly before the "ouch" factor raises its head. Read here about 7 tips every home buyer should know before they buy.

But unfortunately those kind of calculators do not really take into consideration all the critical information necessary to make a decision. Many of the calculators base their recommendations on outdated criteria for mortgage calculation.

The old standard for mortgage planning was that total amount of monthly mortgage payment (including taxes and insurance) be 30 percent of your total gross monthly earnings. And many mortgage calculators still use that same criteria.

Times Have Changed

When this standard was developed, a mortgage was the primary debt for consumers. Nowadays, mortgages are rarely the only debt consumers carry. Most of us have credit card debt, car payments, personal loans, etc. If you have all this debt and stack on a mortgage payment, you could end up drowning in financial obligations.

You can modify the original formula factor in your obligations. First, add up all your monthly payments. Then take a look at some of the other monthly expenses associated with the home you are considering - home owner association dues, utilities, etc.

Next, take a look at your monthly gross income. Take that amount and multiply it by 30 percent. Subtract your other monthly debts from this amount, and you have the amount you can afford to pay for a mortgage, plus taxes and insurance.

Do not panic if it suddenly looks like you cannot afford as much as you had hoped. There are a number of mortgage options that make it fairly easy to stay within your budget.

These strategies for calculating your debt give you some basic ideas of what you can afford, and keep you from getting in over your head. The best way to truly understand your buying ability is to contact me so we can discuss your options.