The Mortgage Loan Process

If you are a first time home buyer or even if it has just been a long time since you were in the market to get a mortgage, the process can seem intimidating. The news is filled with doom and gloom about the mortgage and housing markets. So many companies that were here last year have gone out of business or been sold. And, who can you really trust anyway?

I'll give you several ways to ease your mind about this decision. First, you must understand that, in this world of 24 hour news, sensationalism is key for news organizations to survive. If a story doesn't grab attention immediately than it is more than likely going to be lost in cacophony of all the other "news" stories. So, when the housing market slows (like it inevitably would) and investors lose some of the enthusiasm for high risk loans (like they inevitably would) the only way to make the story last is to blow it completely out of proportion to how it affects normal everyday people's lives. And if some companies pay the price by going out of business or get hurt by unfounded rumors that the media itself starts, so much the better for the news outlets.

I'll give you two clear examples: 1) Countrywide was faced with confidence questions mearly on a media rumor that it had extreme liquidity issues. This was incorrect information blared out by many media outlets and thank goodness that other large lenders stepped in to reaffirm the public's confidence in a major mortgage lender before permanent damage was done. 2) Stories have gotten so ridiculous that I saw an article blaming the sub prime crisis for slow auto sales. If you can figure that one out, please let me know...especially since the auto market has been slowing for the past 4 years! So, take your hysterical news with quite a few grains of salt.

Next, where did all the mortgage companies go? In this free market the strong companies survive and the weak or dishonest companies disappear when the market slows down. This is actually a good thing. It is better for the consumer and it is better for the strong companies. We are here because we are good at what we do.

And that brings me to the final point of who you can trust. You should ALWAYS work with a reputable company. A reputable company should be able to produce statements and names of satisfied customers. A reputable company should come highly recommended by people in the real estate industry like Realtors and title companies. And finally, a reputable company should be able to answer your questions competently and in such a way that you understand the whole transaction.

You will find the process easier and more enjoyable if you keep your ears closed to doom and gloom reporting, understand that strong companies survive market downturns and do business with someone you can trust.

Your comments are welcome!

Brought to you by Professional Mortgage Group, Inc. in Columbia, Missouri.

Foreclosures

Everyone knows now that the high times that buyers, builders, lenders, realtors, and investors have experienced the past few years is long gone. Now the market is in a downswing and these same people are scrambling to stay afloat. Hopefully you didn't get caught up in the madness and think you were immune to losing money! As an investor / lender I want to take this time to discuss the investing end of things. Not all is bad if you positioned yourself correctly!

By this I mean you stayed safe with your investments and you didn't jump in head first. If you were smart, you are primed to take advantage of the rise in foreclosures. Banks are not in the business of holding on to property. You can take advantage of this. Your options are to negotiate with struggling homeowners (if you can) and try to make it a win-win for both, negotiate with banks, or wait until the home hits the courthouse steps. Either way there are deals to be had. You can do some quick work to the home and flip it or pick up some nice investment homes to rent. Just don't get emotionally attached to a property and pay more than necessary and only spend what is necessary to improve the home. Keep in mind what price ranges are moving in Columbia and stay within these brackets. If you are flipping, why buy a home that you will have to hold on to forever due to the slow market!

Remember you are a smart investor! If you weren't you would not have the liquidity to be able to shop right now! You would be cash strapped like so many others! Just follow a game plan , start small, and be smart and you should be fine.

Please keep in mind that real estate investing and flipping houses is not for everyone. Talk to some people who have done it. Don't just read a "Get Rich Quick" book and think you are an expert! Happy Hunting!

Brought to you by:

Professional Mortgage Group, Inc.

"Your Columbia Missouri Mortgage Broker"

Mortgages in Columbia, Missouri

Well we have seen and heard plenty of bad news lately concerning the current state of the housing market both from selling property and being able to obtain financing to purchase a property. Hopefully this blog will shed some light on the good things that have been taking place over the past couple of months.

First, both banks and brokers are still doing loans. Just like anything else the good lenders will still be in business after this mortgage valley is over. That's good news for both homeowners and borrowers. In the past borrowers have been taken advantage of by unethical and "shady" brokers. This slowdown in the housing market should weed out those "bad seeds" and let the good brokers who take pride in their clients financing do what they do best, which is letting the clients needs come first. Professional Mortgage Group is such a broker! We will be here for you when this mortgage slowdown turns. We have and will continue to put your needs first from our Buyer's guides, Service Guarantee's, On-line loan status, and superior communication. To our explanation of the Good Faith Estimate, Loan Documents, Payment, Rate and "Unknowns" Professional Mortgage Group will set the expectations so your mortgage process goes smoothly.

Second, mortgage loans are still available. Yes, some programs have disappeared and yes others have been modified but a good portion of programs are still out there. This blog will hopefully shed light on the current "highly used" programs that are still available.

- 100% Financing (Yes this program is still readily available for both borrowers with excellent and fair credit)

- Stated Income and Asset to 95% LTV (Yes, if you have at least a 680 score and are putting 5% down you can get a conforming loan without having to verify income or assets.)

- USDA (Yes, the Rural Development program is still alive and well.)

- MHDC (Yes, the Missouri Housing program for first time home buyers is still readily available.)

- N/O/O (Yes, purchasing investment properties is still fairly easy to get done.)

- Student Housing Program to 100% LTV (Yes, this program is still out there for "enrolled" students.)

- Sub-Prime Loans (Yes, these loans are still available for individuals with less than perfect credit.)

- Jumbo Loans (Yes, these loans are still readily available and fair market rates.)

Hopefully this will shed some light on the current state of the mortgage market. With all of the media giving bad news concerning this area of the economy there is and will continue to be areas that are good. Professional Mortgage Group, Inc. is here to answer your questions and give you honest and ethical mortgage advice!

Brought to you by:
Professional Mortgage Group, Inc.
Your Columbia, Missouri Mortgage Broker

Featured Agent

Professional Mortgage Group, Inc. is beginning a new weekly blog segment titled Featured Agent. This week we would like to feature Brooke Sydenstricker McCarty with Weichert Realtors. Brooke is an agent who goes above and beyond the call of duty. We recently had the opportunity to work along side Brooke during a closing and she not only made every step of the sale smooth but she also brought to the table a very refreshing sense of enthusiasm. When Brooke entered the closing room she had a personalized binder for our clients with information about the newly purchased property. This personalized binder contained; tax information, warranty information, and contact information for all parties involved. During the closing Brooke also had a house warming gift for our new clients. From the beginning Brooke returned phone calls promptly, always responded to emails, and was willing to help out in any way necessary. These are the agents Professional Mortgage Group, Inc. likes to work with and this is the way we conduct our daily business. Thank you Brooke for being such a professional and taking so much pride in your work. We look forward to working with you again in the near future. Congratulations Chris and Elizabeth on your new home!!!


Brought to by Professional Mortgage Group, Inc.
Columbia, Missouri
573-777-1198
www.pmg-inc.net

It's Great To Be In The Mortgage Business

Now, I know that headline got your attention. The surprising thing is that it is true. Now is the perfect time to be in the mortgage business, but only if you are professional, knowledgable, and have positioned yourself stratigically to succeed. We at Professional Mortgage Group have done all three.

You may ask how I can say this is a good time to be in this business. Well, the simple ugly truth is that it has been too easy for unqualified, unprofessional brokers to be in business. I'm talking about the mortgage brokers who didn't return phone calls, were unethical to their clients, and were not much of a partner to the Realtors that supplied them with referrals and were still able to stay in business. Those types are being left behind on a daily basis along with the lenders who allowed them to flourish. I say good riddance to the bad apples.

As all of the mortage market debacle unfolds (as with any market correction) you will find that those left standing are the quality brokerage companies that did and still do business the right way. I'm proud to say that when the dust has settled, Professional Mortgage Group will be there.

So, I say again that it is a great time to be in the mortgage business at least for those of us that do things the right way! Always work with someone you trust.

Your comments are always welcome.

Brought to you by Professional Mortgage Group, Inc. in Columbia, Missouri.

Lender Pre-Approvals

I recently received a question on one of my past blogs regarding lender pre-approvals and commitments. This made me realize that I need to update our readers on this process and how it has been affected by today's turbulent market!

You can look back into our blog archives to read the full post, but here is a quick summary.

Pre-qualification -
After reviewing the nuts & bolts of the transaction and if a lender has a loan
program that can accommodate the applicant and their goals, they are
pre-qualified.

Pre-Approval -
After we verify all necessary information and everything checks out, we can
issue a pre-approval letter to the borrower and realtor. These letters are
contingent on certain details and it means they will have a loan if all are met.

Commitment -
Once we submit the file to the lender, we are issued a formal loan
commitment. This commitment will have a list of conditions that must be
met in order for them to offer a "clear to close". Once this "clear to close" is
issued we can close your loan.

Please keep in mind conforming programs and rates are stable and can be locked far in advance. These loans will not run into the issues I will list below. I will primarily focus on sub-prime loans because they are much trickier and are the cause for most of the headache closings or broken real estate contracts!

Now that I have refreshed your memory on the differences, lets talk about some things that can happen in today's turbulent market. As a broker we offer a pre-approval based on the programs that are available through the lenders we use and the current market rate. Notice I said "current". This is of course what is available the day we pre-approve you! With the market the way it is, programs and rates change daily! There have been times where a program is available one minute and gone the next. There are some scenarios where there is only 1 lender that can loan on a particular borrower. If this lender cuts the program, goes bankrupt, or ups the rate drastically due to increased risk in the market there is nothing we can do about it. If this occurs, the pre-approval can become worthless! We are unable to lock a sub-prime loan until it is actually "cleared to close" and this is something many people do not understand. Your sub-prime rate is floating until we can clear the file and lock. Unfortunately market conditions can change and it can negatively impact some people.

I bring all of this up because if any of these scenarios take place, the broker takes the blame. As brokers we must meet with each client and make all of this clear. Borrowers need to know the current market conditions and what can happen. Now I have only mentioned extreme cases, but these are the ones that make the news or get borrowers and realtors in a frenzy! Brokers are looked down upon and are thought of as giving "false" pre-approvals and that is just not the case. I cannot speak for all brokers and their practices, but more times than not it is out of our control. We take the application and provide a pre-approval based on the tools we are given on a given day. Then if things go bad and something can't be verified, a program changes, rates jump up, or a lender goes bankrupt the deal can be dead. All of these events can turn a one time commitment and soon to be done deal into nothing! From the outside it is easy to say that Broker X lied and said I was good to go and had a commitment. In reality they did have a commitment or pre-approval, but circumstances arose that had to be dealt with and this is what will bring the Quality brokers to the top! How one deals with adverse situations in this business is what sets them apart!
You can now see that brokering loans in today's market can be tricky and as always do your homework and go with a broker that has a track record of success. They will know how to deal with tough circumstances and get you the loan you deserve!

Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, Missouri Mortgage Broker"

The Mortgage Market in Columbia, Missouri

I have been asked time and again over the last few weeks for my evaluation of the Columbia, Missouri housing market. So, in light of recent weeks events both locally and nationally, I have decided to express my view on the LOCAL market situation.

First, after speaking with numerous Realtors from various agencies, I have determined that this is perhaps the worst housing slump Columbia has experienced in the last 10 years. Why? Initial indications show that Columbia has not grown at the pace previously indicated by city officials, therefore all of the housing build-up (i.e. developments, new construction, condos etc.) have simply been over kill. We have an abundance of inventory especially on homes in excess of $250,000. Both buyers and sellers have been accustomed to a significant percentage of appreciation over the past few years and that has slowed and to some extent even reversed as builders and sellers are slashing prices to unload inventory. Current buyers have homes to sell before they can begin to purchase and the buyers who do not, have a plethora of homes to choose from. What we have in Columbia is a stagnant housing bubble!

Second, to add to the problem rates were trending upward, housing slowed and mortgage delinquency soared. The next thing you know 128 lenders have closed their doors and many others have a severe strain on liquidity and capital. Even the nations largest lender (Countrywide) has experienced the stresses from the current state of the mortgage market. Why? Because in the past the sub-prime / secondary market was hungry for loans and profit. It seemed they would allow loans to be made to anyone with a heartbeat (580 100% financing, Stated Income Stated Asset, No Doc 100%, Seller Carry backs etc.) and they are surprised when delinquencies rise? The secondary market rode a wave for several years and now is experiencing the wake of that wave crashing. Yes, some of this burden does lie with the lenders/brokers and yes this industry has been hit hard recently but Professional Mortgage Group is here to do business the "right way".

What will it take for this housing trend to be reversed? Well we are seeing it, new construction permits are down (10 year low), listing inventory has been slowly decreasing, the feds have realized the problem is not just going to go away and have lowered the discount rate .50% . Hopefully in September they will reduce the key federal funds rate by at least .50%. If listing inventory goes down, if rates go down, the mortgage market stabilizes, and the non-ethical lenders close their doors; a housing rise will, hopefully, be triggered by the end of 2008. Yes, I think it will take that long to reverse the Columbia, Missouri market. Perhaps builders, lenders, agents and city officials have learned something from this halt. The good companies in any profession will be here to reap the rewards!

Professional Mortgage Group of Columbia, Missouri is dedicated to timely service, ethical and honest mortgage advice, superior communication and a knowledgeable staff. We WILL weather the storm and be here to serve you in the future.

Your comments are welcomed

Brought to you by Professional Mortgage Group, your Columbia, Missouri Mortgage Broker!

Quarterly Event

I wanted to thank everyone for attending our 3rd quarter appreciation function last night. We had a wonderful turnout over 45 people! A special thanks goes out to D. Rowe's owner David Rowe for hosting such a special function, the facilities, food and service were great. Professional Mortgage Group has strived and will continue to educate both our referral partners and clients on the best mortgage products available to them with their interest considered not ours! Thank you to all who attended with a special thanks to the following agents and partners.
- Tim Kuchta: 3D Realty
- The Baker Team: (Angie, Willene and Jill)
- Sean Matheis: Century 21 Advantage
- Dennis Lynch: Remax Boone Realty
- Meaghan Kingdon (Gaslight Realty)
- Archer Title
- LandAmerica Commonwealth
- Central Missouri Real Estate
- Weichert First Tier Realtors
- Travis Kempf (Plaza Real Estate)
- Debbie Netemeyer (Plaza Real Estate)
- Jessica Crane (Crane & Crane Real Estate)

We look forward to this continuing tradition and business relationship with you all! Thanks for continuing to support Professional Mortgage Group and Columbia, Missouri!

Professional Mortgage Group
Your Columbia Missouri Mortgage Broker

Professional Mortgage Group Goes To The Lake

We are expanding our sphere of influence in Mid-Missouri. Yesterday our team went down to the Lake of the Ozarks to introduce ourselves to many of the Realtors down there. Our reception could not have been better!

Obviously, over the last few years the lake has not been well served by professional mortgage brokers. This has been true of many cities and areas of Missouri. Our enthusiastic welcome down at the lake just shows that doing things the right way is still the best way to grow a business. We look forward to expanding our connections and helping our new Lake of the Ozarks Realtor partners do business with the confidence our friends here in Columbia have come to expect.

Thank you Lake of the Ozarks for your hospitality!!

Any comments are always welcome.

Brought to you by Professional Mortgage Group, Inc. based in Columbia, Missouri

PMG

We at PMG are constantly taking strides to improve the way we do business. We formed this company to fill a niche in the Columbia, MO mortgage market. There is a void in the market for a mortgage company that conducts themselves with the utmost professionalism and our goal was to change that. Since opening our doors in October of 2006, it seems we have introduced new ideas every month! First, it was just our professionalism and expertise that we had to offer. Second, we introduced our Buyers Guide's for our clients and realtors. You can download a copy of this guide at www.pmg-inc.net. This guide gives the buyer a step by step guide through the home buying process. Realtors are provided these to offer a "value added" resource to their clients as well. Third, PMG has put on home buying seminars which will probably run again in the winter months. This just builds on our Buyer's guides. It gives prospective clients a way to learn first hand the answers to their questions. PMG also offers service guarantees to clients and realtors. This lets them know what they can expect from PMG. Last but not least, we just recently introduced our "Loan Status Tracker" on our website. By using a secure password, clients and realtors can check the status of their loan at all times! This has been a hit! Real time updates are an exciting addition to the services we offer.

This is just a quick sample of some of the innovative tools PMG has introduced and there will no doubt be more to come. Be sure to check back to see what PMG has to offer next!

Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"

What is Annual Percentage Rate (APR)?

Well, the above question requires comments on two fronts. First, what is APR and second what factors determine the APR?

Let's address the first question; what is APR? By definition the Annual Percentage Rate can be all or one of the following.

1) The cost of credit that consumers pay, expressed as a simple annual percentage.
2) The interest rate reflected as a yearly rate, taking into account points and other fees.
3) The cost of credit as a yearly rate. The percentage results from an equation considering the total amount financed, the finance charges, and the term of the loan. Usually not the same as the interest rate.

Believe or not the list could continue but my personal definition is as follows. "The rate at which the borrowed money costs you with certain closing costs included (i.e. underwriting, processing and courier fees etc.)"

Now let's address the latter question; what factors and/or fees are included/affect the APR? The following fees ARE normally included in calculating the APR.
* Points- both discount and origination
* Pre-paid Interest
* Loan processing fee
* Loan underwriting fee
* Document Preparation Fees
* Private Mortgage Insurance

The following fees are SOMETIMES included.
* Application Fee
* Credit Life Insurance

The following fees are normally NOT included.
* Title/Abstract fee
* Escrow fee
* Attorney fees
* Notary fees
* Home Inspection fees
* Credit report
* Appraisal fee
* Recording fee
* Transfer taxes

The calculation of the APR varies per lender, why? Because as you can see from above different fees can be used to determine the APR. Some lenders will leave out important/necessary fees to skew the actual cost of credit. It is important for you as the client to compare Good Faith Estimates (GFE) and determine whether or not you are getting a good loan at a fair/market cost.

Your Comments Are Welcomed!

Brought to you by Professional Mortgage Group.
Your Columbia Missouri Mortgage Broker

Mortgage Lender Games

Does anyone else feel like we are watching a big game of Lender musical chairs? Only in this game they take away about 3 chairs after every stop. Do they really expect the public to believe that they didn't know they were playing a giant game of hot potato or pass the trash with these loose standard sub prime loans?

All of the responsible originators are just taking a deep breath and hunkering down until the lenders sort things out. We are making our borrowers aware that all loans are in turmoil now. Along with that information we reassure them that things won't always be this loopy. We also don't forget our Realtor partners either. Without actually working in this lending environment, they don't necessarily understand that a product that exists this morning may go out the window by the afternoon. Education of everyone in the process about the current situation is necessary. If something catches our borrowers or our Realtors off guard then we haven't done our job as lenders.

Be professional, be active, be successful.

Your comments are always welcome!

Brought to you by Professional Mortgage Group, Inc. in Columbia, Missouri

Professional Mortgage Group has teamed Up!!

Professional Mortgage Group, Inc. has partnered up with Freddy Spencer and Century 21 Advantage on the marketing and sale of the Jenne Hill Project.

We are involved in weekly meetings with Century 21 Advantage discussing everything from our marketing campaign to our barbeque we are having for anyone interested in purchasing one of these amazing properties. We encourage all of our realtor partners to attend this barbeque. This is one night you will not have to cook dinner after your long work day. We will have food and drinks along with a Bounce House for the kids.

The Century 21 Advantage/Professional Mortgage Group barbeque will be held on August 23rd from 6:00-9:00 p.m. Our team of brokers will be on site taking loan applications with same day loan approvals.

Freddy Spencer and his Team have been great to work with from the beginning. His staff is very knowledgable and professional. We truly value all of our partnerships and we truly look forward to financing every unit of Jenne Hill.

We hope to see everyone out at the BBQ August 23rd. Call or email for more details.

Brought to you by Professional Mortgage Group, Inc.

Columbia, Missouri.

http://www.pmg-inc.net/

573-777-1198

YOUR Mortgage- Take It Seriously!

I just want to touch briefly on a couple points that we have harped on before, but hold much importance. When you are dealing with your lender selection, your mortgage application, your mortgage selection , or your mortgage payment you should be very attentive! Make sure you are on top of things at all times. Many times, people don't realize the importance of these things and they pay for it later. Lets look at each aspect:

Lender Selection

• Choose a lender that comes highly recommended
• Meet your lender in person if at all possible. If they wont do this and go over all disclosures, you should keep looking.
• Ask to see testimonials or for references. These are nice to see, although I doubt they will provide anything that isn't positive. Take it for what it is worth and make your own judgment. The word on the street is the most valuable.
• Is your lender knowledgeable and do they have the experience to back it up?
• After meeting them in person, choose a lender you trust!

Mortgage Application:

• Make sure you provide all pertinent information up front. Don't try to hide any details because they will be uncovered and it could totally change your product, rate, or your approval!
• Make sure you wait until after your loan has closed to make any major purchases or job changes. Believe it or not we have had a handful of people spend their money needed or reserves or changed jobs right before closing and it greatly affected their loan! This is just not worth it. If you know a major change is going to take place, let your broker know up front. Why waste your time and theirs if it can be avoided! That new Big Screen or Car can wait a couple weeks!

Mortgage Selection

• Make sure you know your financial goals and make this known to your lender. Your lender can then select the product that best fits your needs. Maybe you know you are moving in exactly 5 years. If this is the case, you may want to select a product that gives you a lower payment for this time period. If you know this is your final house, you would more than likely choose a more secure product! Everyone's situation is different and the different mortgage products all have a place.
• Ask if you have a pre-payment penalty.
• Any other questions, just ask. Who cares if you think it is a stupid question! Better to ask now instead of regret it later!

Mortgage Payment

• After your loan is closed you have your wonderful monthly mortgage payments. Don't underestimate the importance of these. I have dealt with 2 cases recently where clients could not obtain the financing they greatly needed to better their financial situation due to late payments! This is the #1 thing that will kill your credit score. What do you think lenders will scrutinize most? That's right, your mortgage history. Makes sense doesn't it? They are looking to lend you money and they can easily see your track record for mortgage repayment. You will get severely hit on your interest rate or you will lose the ability to borrow all together!
• This is your single most important payment so treat it that way. If your situation changes and you can't afford it, don't try to figure it out. Put you home for sale immediately. If you get that job or raise you need then great, take your home off the market. Don't be stubborn and ruin you financial history if it can be avoided.

From this you can see how critical this all can be. If you skip the first few steps, you could find yourself strapped with a uncomfortable mortgage situation and it could cost you. Just do your homework, ask the right questions and everything will be fine!

Brought to you by Professional Mortgage Group Inc.

"Your Columbia, Missouri Mortgage Broker"

Know Your Lender

With all of the "shake up" in the mortgage market right now it is critical that you deal with a lender you can trust! Since the mortgage market crash, 109 wholesale lenders are no longer in business and several more are teetering on the verge of not having enough liquidity to fund any future loans. Programs are changing daily as I witnessed just last week. A lender introduced a new 1-Year ARM loan and the very next day closed the program. If the loan was not locked , they would not honor any approvals. Fannie Mae and Freddie Mac are also adjusting their approval engines to more strict guidelines. They are wanting to see an established pay history over time and are wanting more in reserves. Stated income and stated asset programs to 100% loan-to-value (ltv) are all but gone. In fact, Argent formerly one of the largest sub-prime lenders is only offering 95% and under financing. Countrywide Sub-Prime Wholesale is no longer entertaining 100% ltv financing for borrowers.

The Sub-Prime market has also adjusted their rates significantly upward to help increase their margin on products for housing the riskier loans. In connection with this they are also increasing the QC (Quality Control) measures to help detect fraud! The mortgage market as a whole is in the worst slump in 16 years. New construction building permits are down, new construction home marketing is up, financing concessions are seen on almost every deal (i.e. increased realtor commission, giving away Plasma TVs, paying ALL closing costs etc.) and builders are slashing prices to hopefully decrease their inventory of homes, which also is at an all time high. Existing home sales are down, they are trying to compete with new construction and thus chopping prices which in effect are killing home values across the nation. Overall home sales in the Mid-West market are down almost 46% from the previous year!

What does all this mean? You need to get with a lender that knows the market, watches the market (i.e. rates, programs, guidelines, bonds, etc.) is honest, prepares you for the unknowns, and has references and testimonials! The market is littered with lenders who simply do not know their trade. We at Professional Mortgage Group, Inc. go above and beyond what our clients expect time and time again! We have satisfied strategic partners (i.e. Realtors, financial planners, bankers etc.) that continuously send us business. Why? Because we do things the right way. We offer constant continuing education, we hand deliver our well-known "Buyer's Guides" to help home buyers with all of the questions that arise throughout the mortgage process, we developed "loan tracker status" on our website to help both our clients and their Realtors track the "real time" status of their loan, we are rolling out a realtor forum during the winter months to help get some feedback and educate local housing individuals on the mortgage and lending market, we developed our "Service Guarantee" for both realtor and clients, we have testimonials and surveys to prove how well we do things and we do this all because we think it SHOULD be done! Your business, your home , and your well-being are why we are here!

Your Comments Are Welcomed!!!

Brought to you by your Columbia, Missouri Mortgage Broker

Professional Mortgage Group, Inc.
"The Industry Professionals"

Subprime Fallout

We are still feeling the effects of the subprime mortgage market fallout. Lenders are still tightening the standards and requirements for loan approval. Unfortunately, I believe that they may have now gone too far in overreaction to the defaults in the subprime market.

Some lenders are taking the extreme action of cutting off all alternative lending. Some have tightened the standards to ridiculous levels. In fact, at one lender if you had the documentation and credit score to qualify for an alternative loan you would be able to qualify for a standard one! All this goes to show that the lenders are currently spooked and not thinking before they act.

The subprime mortgage market was ripe for correction. Lenders had become too lax in standards and a change was needed. However, the thing that lenders seem to be forgetting is that the alternative lending and subprime loans were created to fill a need. The need for these types of loans has not gone away. We just need the lenders to take a deep breath and run the numbers the way they did when they first developed the alternative products.

I'll keep you posted to the changes as they happen.

As always, any comments or questions are welcome!

Brought to you by Professional Mortgage Group, Inc. in Columbia, Missouri.