Dropping Mortgage Rates!

Mortgage interest rates have been slowly declining for some time now and this week has been the lowest they have been in quite some time! With that being said, we are getting more calls regarding refinancing. (NOTE: Please refer to another recent post that touches on what to consider when contemplating a refinance. ) Most of these calls are from people that either need to withdraw cash from their home or people who need to get locked into a fixed rate and escape from their ARM.

When considering cash out make sure you look at the deal from all angles. What are your goals? Will this new loan help me meet that goal? Do I really want to amortize a particular debt over 15, 20, even 30 years? Will my situation be different if I consolidate or are the same variables still in place for me to run up the debt again? These are all crucial things to think about, especially in this market. People who have been using their home as a piggy bank are finding out the hard way that it isn't as easy anymore!

ARM's are the hottest topic right now. Many are resetting now and others have a few years left. It is a no brainer to refinance into a fixed loan if yours is resetting now, but what do you do if you have a couple years left? This is a tougher question. You can do 1 of 2 things. Hold tight and take advantage of the super low rate for the remainder of the term or refinance and take the low rates that are available NOW! Neither option is wrong. Your situation will dictate what is right for you. If you are unsure, just think about what rates are now and how much lower you think they could get? Lower rates are possible, but I can't imagine any drastic rate cuts.
You will be sick if you get burned with raising interest rates in 2 years when you could have locked in at 6% or 5.875% now! All because you waited to take advantage of your 5% ARM rate. Rates could be the same in 2 years or they could be higher! Nobody knows. By no means do I pretend to be someone who can forecast rates. These are just things to consider while you are trying to decide what action is best.

Just realize that regardless of all the negative press out there, the mortgage market is still alive and kicking. Rates are good and there are numerous products to fit your specific need. While the industry has had a bumpy ride and has tightened up this past year, don't get the impression that you cannot get a loan! As long as you are working with a lender that you trust and is known for doing quality work, you will be taken care of and placed with a great product!

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

Columbia Missouri Market Statistics 3rd Quarter

Well the 3rd Quarter Sales Numbers are in for Boone County Missouri and the figures are a little surprising for one area and not so much for the other. First, sales of existing homes are VERY good and sales of NEW/NOT LIVED IN are not so good. I will highlight some of the key statistics below for you to look at and ponder over.

3rd Quarter 2007' vs 2006'

• Sales of new construction homes were down 33 units and $6.667M in volume from 2006'
• Sales of existing homes were up 32 units and $6.630M in volume from 2006'
• Total 3rd quarter units were only down 1 unit from 2006 and only $36,937 in volume

Additional Comments:

The Southwest area continues to be the "hot" area and has been for quite some time followed by the Northeast which continues to be a viable section for growth. As per past posts regarding this subject my opinion has not changed; Existing sales are really carrying this market and new construction is hurting Boone County and in a big way! Although it seems prices are beginning to stabilize (given YTD prices of $175,390 vs. $175,814 for 2006') there is still a plethora of new construction homes on the market. However the market is still down significantly from the "hay day" of 2004' and 2005'.

YTD 2007' vs. 2006'

• New construction numbers are down 150 units and $30.1K in volume from 2006'
• Existing home numbers are up 20 units and $6.52M in volume from 2006'
• Total YTD numbers are down 130 units and $23.6M in volume from 2006'

Additional Comments:

Of the three 3rd quarter months August proved to be the best and July the worst, so if you take those figures to heart and apply a little logic perhaps Boone County and in particular Columbia may see us coming out of this "slump" in 2008'? Only time will tell but the numbers are leading me to think this way although I still predict the "new construction" figures to be hurting but hopefully not to the extent they have the past two years.

NOTE: All figures were supplied by the Columbia Board of Realtors (Residential Single-Family Sales By Month)

Brought to you by Professional Mortgage Group

Your Columbia Missouri Mortgage Broker

Go Tigers!

We at Professional Mortgage Group, Inc. want to congratulate the University of Missouri Tiger Football Team for their vicorty over KU and their Big 12 North Division Title! Good luck in the Big 12 Championship versus Oklahoma and we hope to see you in New Orleans playing for the BCS National Championship!
Also good luck to Chase Daniel in his quest for the Heisman Trophy! Please go to
http://mutigers.cstv.com/sports/m-footbl/daniel/index.html
and vote for Chase. Every little bit helps!

Go Tigers!
PMG, Inc.

Your credit score. Are you on top of it?

We all know that your credit score is vital to your home loan process. With this being the case we have touched on this topic several times in our daily blog. I don't want to beat a dead horse, but after working with a few customers recently this topic is fresh on my mind.

Do not take your credit lightly. How your credit score is computed is very complicated and nobody really knows the exact formula. Everyone's report is different and it is tough to predict how a given event will specifically impact your report. With this being the case, all we can do is give you a few pointers. By no means is this the gospel when it comes to credit reports, but it should get you on the right track. Aside from the items I am about to list, it is a good idea to go to www.myfico.com, www.annualcreditreport.com, and other valuable sites to read about credit and check your report free of charge once a year!

1. Make all your payments on time or within the given grace period. Always be aware when you are nearing a 30 day late. If you are getting close, don't risk it. Call and pay by phone, online, or FEDEX. Whatever it takes so that you don't have a 30 day late. It just isn't worth it!

2. Absolutely take all precautions when the above rule applies to your mortgage! DO NOT miss this payment. This will devastate your score and the products you will qualify for. 1 30 day late can really hurt!

3. If you receive a collection call, get on top of it. I'm sure everyone has had at least 1 medical bill slip through the cracks. Many people are stubborn thinking, insurance should have paid that and just ignore it. Don't do this. Get on the horn with insurance and the collector! Take the time to figure it out. If you owe it, just pay it because they will not let it go. It will eventually end up on your report as a collection and it is best to nip it in the bud early! Always make sure you get a paid receipt on company letterhead to show this is paid and has a zero balance. This can really come in handy if you find out down the road it never was updated on your credit report.

4. I never recommend co-signing for a loan, but if you do be careful. Always stay on top of this. If you get a divorce, make arrangements to get off any notes since it will be tough to monitor. I see these situation go bad all the time and it can really hurt!

5. Never go over limit on your credit cards! Even if you pay on time every month, an over the limit account hurts your score.

6. Try to stay at no more than 50% useage on your credit cards. This means if you have a $5000 limit, don't carry over $2500 on the card. This is a highly over looked part of the credit scoring process. They want to see that you are not maxed out or close to it!

7. Tax liens or judgments. Obviously you don't want these and if they come about, they are many times the result of a crisis. However, take the appropriate measures with the IRS or collector who placed the judgment to wipe them out as fast as possible. These must be paid off in many loan scenarios and of course damage your credit. Tax liens also come with hefty interest and penalties!

8. Try to avoid the credit counseling services that offer to reduce your monthly payments etc.. I have not seen where these help and they report on your credit report that you are working with a company like this. This is also not good.

9. If you do file bankruptcy, make sure you follow up with all your creditors afterwards and make sure your accounts are reporting properly. If it was included in your bankruptcy, make sure it shows as such. I always seem to see accounts linger on peoples reports that are inaccurate. By doing this, it is much harder to rebuild your score!

These are just a few tips for the most common blips we see on credit reports every day!
If you are trying to repair your credit right now, I know it is a painful process! Nobody seems to be willing to help and it can be grueling! Once you are in a hole, it is easier said than done to payoff these items! Just stay focused and follow up repeatedly with creditors to make sure they report your account properly!

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

Adapting to Change

The "mortgage meltdown" has made it's dent in the housing community from mortgage lenders, banks, title companies, realtor's, appraisers, home store retailers and others it certainly has left a mark. Has I stated in a previous post H.R. 3915 is a good thing! To the individual or lender that does not do things the right way; then look out you will have to adapt or be out of business. But to those of us that continue to educate the market, our partners and clients now is our time to shine and grow! With that being said I thought I would talk about things we (Professional Mortgage Group) will implement January 1, 2008 to help educate potential home buyer's and refinance individuals.

1) Net Tangible Benefit Worksheet: I personally believe you will have a hard time finding a "broker" with this type of "screening" in place. Many of the direct lenders already do this and have for quite some time (years). However, PMG will make sure that their clients continue to receive the benefit they deserve from their refinance or purchase transaction and this is just another step to stay ahead of the curve.

2) Customer Copies Certification: Professional Mortgage Group has and will continue to do this, however we will now require the client to sign a form stating that they have been explained all documents in there entirety and been given a copy of those documents.

3) HUD Guide: This is a pamphlet that is given out or mailed to clients by the actual lender. However, PMG will now give this directly to the client as well. Just another way to educate the borrower and help do things the "right way".

4) Home Buyer's Education Course: Any first time home buyers will be required to take an on-line education course, regardless of whether the lender requires it. We have found these to be VERY informative to the client and will make this a mandatory feature moving forward in 2008'.

5) A "Unknown" Certification Sheet: Unfortunately when purchasing a home or refinancing there are some "unknowns" going into the transaction; for instance, what is the insurance premium, what are the pro-rated taxes, cash-to-close, recording fee, etc. By having the client sign this "informative" form they will be better prepared for the closing. Professional Mortgage Group currently does something similar, however will now implement a certification sheet to solidify their professionalism.

Hopefully you will see PMG as an innovator of professionalism in an industry that desperately lacks this. Thanks for your continued support and we will keep you updated on any future changes!

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

Mortgage Loan Process

The mortgage loan process is something we are asked about everyday and many of you already are aware of. However, I wanted to post this as a reminder to those that do have questions. Remember all of this is available in PMG's "Buyer's Guide" available at http://www.pmg-inc.net/.

Mortgage Loan Process (Purchases)

Step 1. Getting prequalified for a loan with PMG

A. Application – this document will have you provide your financial information to PMG for processing your request
I. Full Name
II. Current Address (and previous if in current for less than 2 years)
III. Date of Birth
IV. Employment information
V. Income information
VI. All assets owned by you
VII. All debts owed

B. Credit report is pulled by one of our brokers and examined for loan programs for which you qualify

C. You supply documentation (as discussed later) for statements in application

D. We receive pre-approval from a lender and let you and your realtor know immediately the price range at which you qualify

E. Pre-approval letter is then created by us and given to your realtor for leverage in your negotiations with potential sellers


Step 2. Work with your Realtor to find a home in your price
range.

Step 3. Sign preliminary disclosures with your broker

A. Good Faith Estimate – This document will give you a good idea of the costs from all parties involved to get you into your new home


B. Lender Servicing Statement – This document lets you know the likelihood of your loan being sold to another lender after closing

C. Disclosure Notices – Various disclosures required by law to be give to potential borrowers outlining rights and responsibilities of the various parties

D. Truth-In-Lending – This document gives you an idea how much the credit will cost you as you pay it back to the lender

E. Borrower’s Certification & Authorization – This document has you certify that you are who you say you are and authorizes PMG and the lender to receive financial information from others who do business with you, i.e. to get bank statements, verifications of employment, etc.

F. Tax Return Request – This document allows the lender to request a copy of your tax returns to verify income if they are ever audited

G. Mortgage Loan Origination Agreement – This document explains your broker’s part in the transaction and lets you know how PMG makes it’s income


Step 4. Getting to closing

A. PMG Orders An Appraisal – These are required by lenders to verify that the property is worth the amount you are paying for it

B. PMG Orders Title Insurance – This is to insure that clear title to the property is given to you and the company is usually chosen by the seller as they traditionally are the ones paying for it

C. You Provide Property Insurance – You need to insure the property against loss and provide proof of doing so prior to closing

D. Your Realtor Orders Home/Pest Inspection – This should be done for your peace of mind regardless of whether or not required by the lender

E. The Lender Orders A Flood Plain Determination – This is required of all home loans to determine if you need to purchase flood insurance.


Step 5. At a Closing with a PMG Broker

A. All parties, both sellers and buyers, sign documents transferring property ownership to you – your PMG broker will be there with you to explain any process on which you have questions

B. All loans the sellers have against the property are paid in full

C. The warranty deed and deed of trust are recorded to notify the general public that you now own the property

D. CONGRATULATIONS! You now own your new home!

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

HR 3915 Bill

In light of the recent mortgage "meltdown" and the emergence of H.R. Bill 3915 I thought I would give my thoughts on several issues. First, I have read Bill H.R. 3915 in it's entirety and have also viewed the amendments and the actions taken. This bill brings to light, in my opinion what should have been done long ago, a mortgage broker registration process (Kansas already adopts this philosophy) and continuing education for mortgage originators. These of course are the major additions and again in my opinion the "smarts" of the bill. There are of course many other concepts behind this bill most of which are just added paperwork to an already paper ridden process. For instance, adding additional verbage to the Truth-In-Lending (TIL) statement. With this being said I will know educate you on what Professional Mortgage Group has adopted from day one to aid the borrower in making an educated decision concerning their mortgage loan.

1) Professional Mortgage Group brokers already participate in an "in-house" continuing education course. This includes some but not limited to the following; ethics and training courses via virtual teleconferences, publications (i.e. Mortgage Originator, Scottsman Guide, NAMB, MAMB, and others), and courses by Mortgage News Daily and Todd Duncan ( a well known mortgage ambassador and educator).

2) 99.9% of our clients meet with us in person to review loan programs (including the advantages and disadvantages of each) and to sign "initial" disclosure papers. Our clients are completely aware from day on the mortgage process, the "unknowns" (i.e. homeowners insurance), and receive a copy of their disclosures in case any future questions arise.

3) Our clients are also given a "Buyer's Guide" to further educate them on the mortgage process and what to expect when buying a home. This material includes FAQ's as well as some of the documents requested and potential loan programs, just another way PMG, Inc. is staying ahead of the curve and H.R. Bill 3915.

4) Our clients are also given "service guarantee's" which outlines what they should expect from PMG, Inc. and what is expected from them. Again, all expectations are set at the initial appointment.

5) We have creditability; meaning 99% of our business is from realtor's, financial planners, past clients, and attorneys. We have testimonials and surveys to back our claim that we do our job "the right way"; no surprises, fair fees, market rates, honest advice, an ethical and unwavering customer service! We return phone calls, we deliver bad news, we help people understand their credit and help them through the process of becoming homeowners. IN GENERAL WE EDUCATE AND CONSULT OUR CLIENTS ON WHAT'S BEST FOR THEM; NOT WHAT'S BEST FOR US!!!!

H.R. Bill 3915 bring it on, we already go above and beyond what our legislators say we need to do. We are one step ahead of them and will continue to be ahead of the curve on delivering a quality mortgage experience!

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

Refinancing

In light of the recent activity we have received concerning refinancing I thought I would shed some light on things you should consider when refinancing your home. I have spoken on this subject before but it has been some time ago and felt the need to address it again.

First, what are you looking to accomplish by refinancing? Are you wanting to lower your overall payment, payoff outstanding creditors (debt consolidation), hoping to shorten your term (i.e. 30 year to 20 year), do you need cash for home improvements or college tuition? You need to be honest with yourself on what your ULTIMATE goal is! Assume "the sky is the limit" and let the mortgage professional cater to what you are trying to accomplish. Unfortunately in our industry we have guidelines to follow, however if you are with the right mortgage professional they should be able to provide you a quality home loan product that meets your needs and goals.

Another question you should have thought about when considering a refinance is; how long do you plan on staying in the property? This plays a major role in the product and type of loan we put you in. Are you planning on retiring in this home, do you want to sell and move in 1 year, 2 or 5? You need to have a realistic idea of what your tenure will be in this property.

Again there are other things to consider but I thought I would address a couple of the more serious one's first.

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

Homeowners Insurance Part II. Lower your premium!

In a post last month we discussed Homeowners Insurance. We focused on the parts of the home insurance policy and how it works. Today's post is part 2 of this segment. As we mentioned last time, you get what you pay for so don't focus solely on price. While this is true, there are ways to keep your premiums as low as possible. Everybody wants to keep their house payment low and escrowing your insurance premium plays a part in this.Some people bounce around from company to company searching for the lowest price at their renewal date. I am not a big fan of this. You don't develop any loyalty here and this could come back to haunt you if you have a large claim. Many times there is a reason why 1 company is drastically cheaper that all the others. State Farm, Allstate, etc. have been pricing their business for a very long time and have it figured out. You'll find a company that comes out with a super low price one year and then they run into financial trouble. You want your insurance company to be financially sound. After all, you are counting on them to be there for you. With this being said it is ok to shop occasionally, especially if you think your price is getting out of hand. This will keep them honest.Here are some tips on keeping your home premiums down:

1. Multi-Policy Discount - Insure your auto, home, and life insurance together. By doing this you will earn a multi-policy discount.

2. Raise your Deductible. - Go with a $1000 deductible. This keeps your premium down. Just make sure you are comfortable with the $1000. Also see what a $500 deductible costs .The larger the home the more difference it makes, therefore a higher deductible may not always make sense. Home claims are fairly rare and usually if something is claimed , it is a high dollar amount. Therefore, the $1000 is small relative to the damage.

3. Home security system - By having an alarm you are eligible for a discount. It is best to have a full-reporting alarm to maximize the discount you receive. Keep in mind the cost of the alarm is more than what the discount will save you. If you already want an alarm, just realize this helps justify the price you pay for it.

4. Affinity Marketing Discounts - Ask your insurance company if they offer any Affinity Marketing discounts. Liberty Mutual is the leader in this field as they offer over 8500 different group discounts. In Columbia The University of MO Alumni Association and Missouri Credit Union are big ones. BMW and Onstar are a couple others. If your are a member or affiliated with these companies you can get a discount through Liberty Mutual. Met Life is another company that does this and there may be others, just ask. This can save you up to 15% on top of any other discounts you already receive!

5. Loyalty counts - I mentioned loyalty earlier. Some companies offer loyalty discounts or loss forgiveness programs for your years of continued coverage. Ask what programs they have in place.

Keep all of these things in mind when looking to improve your premium. If you are looking to buy a new home, here are a couple things to be aware of that can potentially cost you money and give you a headache!

1. Location of the nearest fire hydrant and fire station. - If you are in the city limits this won't be an issue. If you are not, then pay attention. If you are over 1000 feet from a hydrant or over 5 miles from a station, you will pay significantly more for home insurance! Some companies won't even insure you!

2.Dogs - If you own a Pit Bull, Doberman, German Shepard, or other dangerous breed you may have some issues obtaining home insurance.

3. Prior claims on the residence - If the home has a history of water problems or claims,you will want to know. If it does have a history, you should make sure it has been corrected. You will need special approval and with some companies this can affect your future rates. Insurance companies have different rating policies, so get all the information available to help avoid surprises in this area. Hope all of this information helps!

Your comments are welcomed!

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

For Sale By Owner

I thought I would share with you "For Sale By Owner" individuals or otherwise known in the lending world as "FSBO" what Professional Mortgage Group can bring to the table in helping you sell your home. Although we (PMG) recommend using a real estate agent at least you can see that you are not alone in helping market your home.

1) ADVERTISING?
We will provide a PMG yard sign with colored flyer's. These flyer's include payment options, possible financing incentives (i.e. city assistance or down payment assistance) and all the information about your home. AT NO COST TO YOU!!!!

2) WHAT LOANS ARE BEST SUITED FOR YOUR HOME?
What loan product does your home qualify for? Which are best to advertise? What will the buyers closings costs/down payment be? Should you use this to negotiate?

3) AND MOST IMPORTANTLY....... DOES THE BUYER QUALIFY?
It only takes about 30 minutes for us to determine if a buyer can qualify for a mortgage loan. Many realtor's refuse to work with borrowers that have not begun the "pre-approval" process. Why should you be any different? Don't wast a lot of time on a contract with a buyer that cannot qualify because of credit issues.

4) ALSO.........................
- Post your listing on our company website / blog ...... free!
- Sample purchase contracts and legal documents ...... free!
- Contacts to appraisers, homeowners insurance agent's, title offices, etc. ..... free!
- Excellent referral program and continuing education from our staff!
AND ......... IT'S FREE!!!!!

"So, what's in it for PMG?"
Well, this is truly a win-win situation for you and me. I'm willing to provide these services in order to attract qualified buyers that I can work with. By combining our resources you and I can reach our goals.

There's no contract to be signed, no fee to pay, and no obligation to either party. I'll supply you with a handful of business cards for your potential buyers. They can contact me for their pre-approval and I'll return them to you as a qualified buyer ready to make a formal offer on your home.

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

Home Buying Seminars

Home buying seminars are a great way to get in front of potential buyers and educate them about the process they will go through in order to purchase a home. Professional Mortgage Group, Inc. have done these in the past and have recently been approached by 2 different real estate agents to assist in their upcoming seminars. This can definitely benefit all parties involved. The agent and lender can gain business they may not normally get and the buyer learns valuable information!

Professional Mortgage Groups staff will have a booth with business cards, flyer's, promotional items, applications and most importantly our "Buyer's Guides" on hand (you can download a copy of this from our homepage www.pmg-inc.net\. These guides outline the entire process, what to expect, and answers to many Frequently Asked Questions! We have had a great reponse to these guides and they bring an added bonus to any home buying seminar we help with.

Our next seminar:
Host : Peak, Dye & Assoc., Inc. in Mexico, MO
Location: Mexico United Methodist Church Fellowship Hall.
Date & Time: November 13th @ 7pm Appetizers start @ 6:30pm
To Sign up: 573-581-1363

If you are an agent and thinking about putting one of these on, let PMG know. We would be happy to assist in putting on a great event for potential buyers!

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

Great Time To Be A Homebuyer!

I thought in light of all the negativity surrounding the housing market I would elaborate on why potential and future homeowners need to buy in this market. Most of the "stigma" surrounding the housing slump is completely media generated; and to some extent rightfully so. Housing inventories are at all time highs, mortgage delinquencies are rising, foreclosures are up and in some areas over 300%, and sub-prime ARM resets are not at there peak yet. However, with all of this being said now is a great time to buy a home and the following paragraphs will explain why.

Interest rates are still at ridiculously low levels; yes historic lows! I know we have all heard this time and again but it is rare to get a 30 year fixed rate mortgage for 6.125%. I believe most people take these GREAT rates for granted. Your buying power from a mortgage standpoint cannot get much better.

Housing inventories are at all time highs! You have a plethora of homes to choose from; want a 3 bedroom 2 bath range on an unfinished basement on the north side of town, here you go! The market is flooded with first time home buyer options, middle-end homes and high end homes with differing styles, sizes and concepts in each area. You should be able to find a home you love at a price you can afford.

The best part about being a buyer in this market are the prices that have been associated with purchasing real estate! Builders are sitting on more inventory than they are accustomed to and therefore have been slashing prices to unload their homes. For instance, in Columbia Missouri and more specifically Boone County Missouri "new" homes sales are down an average of $27K. Sellers of "existing" homes are also extremely motivated as the marketing/sale time of these homes has dramatically increased and to counteract this they have been cutting prices.

What are the three key items that effect whether or not it's a time to be in the home buying stage? Interest rates, Inventory and prices; hopefully this has shed some light on how these factors are aligned for you to become a homeowner.

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

Standard Lending Practices

In light of all the turbulent times in the mortgage market, I want to talk about some standard lending practices Professional Mortgage Group, Inc. (PMG) puts into action each and every day. Mortgage Broker's have caught a lot of flack recently for the actions of a few unethical brokers out there. With this being the case, it just makes PMG's set of standard lending practices stand out rather than these practices being the norm for the industry!

PMG's Standard Lending Practices include:

1. We take your application in 1 of 3 ways. Online through our secure application, in person, or over the phone.
2. We promptly process the application and get back with you to discuss options and figures. If for some reason we cannot loan to you, we discuss why and give you pointers on what you need to work on to get where you want to be.
3. A PMG introduction letter and business card are mailed to the prospective borrower.
4. If our customer wants to use PMG, we personally meet with every client and sign disclosures for the loan. All product features, fees, rate, and possible hurdles to overcome during the loan process are discussed in detail. PMG wants no surprises for our borrower!
5. Once you have chosen PMG, a service guarantee is given to the borrower and an real estate agents. This lets you know what to expect form PMG!
6. Your loan is updated on www.pmg-inc.net where you are given a login and password to track your loan. As updates are made, you are emailed the change in status.
7. Phone calls are also placed to the borrower and their real estate agent (if applicable) to keep everyone up to speed.
8. Once the loan is ready to close and we have the HUD, we call and discuss all the details of the loan and what to expect at closing. This way the closing is just a formality! Nobody wants MAJOR questions or issues to be arise at the closing table. This is something to get out of the way prior!
9. PMG makes every effort to attend your closing. If it is a purchase transaction, please know we will be present (unless it is a long distance closing). This makes for a better closing for everyone! If there is a question that comes up or wasn't addressed prior, we are there!
10. Lastly, PMG tracks your loan. We will contact you if it is ideal to refinance or if your ARM is expiring. If only all lenders did this, the problems of ARM's resetting now would not be so severe!

Our goal in implementing these practices is to obtain a "Client for Life"! It is just unacceptable to conduct business in any other way than putting your client first!

It is our hope that these tough times in the industry will weed out anyone who doesn't conduct themselves properly. The ones left standing will then be there to reap the rewards!

Brought to you by:

Professional Mortgage Group, Inc.

"Your Columbia, MO Mortgage Broker"

Fed Action

In light of the Federal Reserve slashing the Federal Funds Rate and Discount Rate 75 basis points in less than 60 days, I thought I would dispel the myth that mortgage rates are dropping as well. The Federal Reserve acknowledges the need for "liquidity" in the market place. Why? They know that unless banks, wholesale lenders, retail lenders and others have the funds to lend then regardless of what mortgage rates are there is no chance of a housing recovery! The government is trying to give lenders "money to lend". The largest factor behind the "credit crunch" is the fact that lenders had little to no money to lend to qualified borrowers. Typically, wholesale lenders use mortgage lines of credit to fund certain loans and when the "credit crunch" hit these lenders had their lines pulled. Therefore, the Federal Reserve is trying to push money back into the financial market place for lenders to lend, for buyer's to access and the end result would be for the housing inventory to decline thus bring values back in line.

Don't get me wrong mortgage rates are GREAT! However, do not be fooled that The Federal Reserves actions are to ultimately lower mortgage rates. The problem is not that rates are high, they are just the opposite and it's not like there are no homes to choose from again it's quite the opposite as inventory of unsold homes have never been higher. The financial market's have a "credit crunch" and they (Feds) are trying to reverse this. In fact, it's a great time to be a home buyer right now you have a plethora of homes to choose from at discounted prices and unbelievable rates to boot!

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

FED Update

As previously reported the FED cut the Federal Funds rate and the discount rate by .25%. The stock market shot up and back down again upon this and some other financial news. Mortgage rates have not really changed, nor do I expect them to adjust significantly either way. Rates are already very low. Buyer's just lack confidence in the market and are holding steady, taking a wait and see approach. Unless "prime" is adjusted, don't expect and big changes. These changes are all done to help improve liquidity for the large banks/lenders. While this may be a bummer if you were waiting for a big rate drop, don't worry. All steps are good steps toward bringing stability back to the market!

Be sure to check back for any updates.

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