Michigan Mortgage

But it’s not my fault!

Yesterday I had a scheduled call with a new prospective client. It was a script I hear often:

Client: “Here I am, minding my own business and making all of my payments on time and then through no fault of my own and because of all of these greedy banks, lying politicians, and people trying to get something for nothing, my house is worth half of what I paid for it. After two years of that, I decided it’s time to get what’s mine.”

My response…

Is mortgage processing excellence a thing of the past? It doesn’t have to be!

This week my team submitted a loan and the underwriter gave us a “clear to fund” on the first try! This has not happened in my office since 2007.

Face it, the loan processing business is tougher than it used to be. But it doesn’t have to frustrate clients. Two thoughts before I begin:

1. This post is as much for me as it is for all of us (processors, clients, underwriters, etc.).
2. This is something that I know my team agrees with and strives for every day. I am writing this as a result of my team making me believe that mortgage lending can be fun again. They are truly committed professionals. I am indebted to them. Thanks Kandice, Karen and Kim!!

How to achieve mortgage processing excellence…

How Long Does it Take to Close on a New Home Purchase?

Often, the process takes only three to four weeks. That said, we have to acknowledge that today there are factors that could cause the process to take much longer.

Let’s look at recent proof for this reality.

Home buyers who accepted a deal by April 30th had 60 days to close their deals by June 30th to qualify them for the home-buyer stimulus credit. If deals can be closed in three to four weeks, then why did Congress extend the home-buyer-credit closing date past the 60th day? There are a number of factors that made it necessary…

Successful Home Ownership III – When Does it Make Sense to Take the Plunge?

It’s easy to print the “regs” and find out from FHA or VA or Fannie Mae just what it takes for them to approve a loan for you. The rules and guidelines are very detailed but they’re understandable.

But did you know that I can approve a person whose gross (before taxes and all other withholdings) income is $60,000 per year for a $2500 house payment under the right list of conditions? That’s half the borrower’s income. The before tax income! In this case the person would have approximately $1200 left every month to pay all utilities, car insurance, life insurance, groceries, Christmas presents, etc. Not sure how this make sense, but FHA will do it – and with only 3.5% down.

Here are some helpful benchmarks to consider before trying to buy a home or make a move up into a more expensive home…

Successful Home Ownership I – “Qualify” vs. “Afford”

In my many appointments with hopeful homeowners to be and with those hoping to make a transition to another home or purchase a second home, I often draw a simple distinction between two words—qualify and afford.

The word qualify is my word. As the lender I need to make sure that I can “qualify” the borrower for the loan and ultimately the home that she wants.

The word afford is the customer’s word and is often ignored in the lending office. This is the process whereby the potential borrower determines what she is able to pay each month based on her income and other bills and lifestyle habits.

Let me give you an example of the conflict…

FHA Streamline Refinancing – Saves Many $100s!

FHA streamline refinances are easily done and right now (as of today’s date) fixed rates are available at 5% for a 30 year loan and 4.5% for a 15 year loan – possibly even better. Regardless of the interest rate the process for approval is a simple one requiring only the following data for a [...]

The loan we love today is spelled – F. H. A.

One of our favorite movies is “Dan in Real Life” The theme song in that movie is great its: “Let my Love Open the Door”

Today’s post is all about giving FHA the love it deserves.

So. . . let my LOAN open the door . . .

Despite the rise in FHA’s up front insurance cost to 2.25% of the loan amount – FHA loans continue to gain market share as the most popular loan for home buyers – and not just first timers either…

Should I Pay Points for a Lower Interest Rate?

Last week I received the following question from a client – I get it a lot so I thought I would publish my email response.

“We have been talking about the new build home loan and the topic of buying down the loan interest rate has come up. We were wondering if you have guidelines that can help make the decision if buying points is worth the up-front expense.

Thanks again, we appreciate your time and your advice.”