Trade Shows

I recently attended two events here in Columbia. One, the Home Show, was a disappointment. The other, the Columbia Chamber of Commerce Business Expo, met my expectations.

So, what were my expectations and why did one disappoint where the other did not? When I go to these types of trade shows, I have one goal in mind. I want to network. I want to get face to face with as many professionals that I would like to work with or who might want to work with me as possible.

This leads me to why the Home Show disappointed and the Business Expo did not. I have worked as a vendor at the Home Show in the past and I remember vividly how packed the Hearnes Center would be both in vendors and the general public. This year there had to be less than 90 booths and very little of the general public walking around.

I will be generous and grant that I purposely went during a low volume time as far as the public attendance goes as I was there primarily to talk to the professionals showing there. But the lack of vendors was astonishing! This used to be Mid-Missouri's premier event for those involved in the home building and real estate industries.

Having been disappointed overall, I would like to say that I did have a few good conversations with several people. But, I will have to do some serious evaluation on whether it will be worth my time to attend next year.

The Business Expo was a great event this year, as we said yesterday on this blog. The turnout was good, and the opportunities for networking with professionals were many. I will be definitely be going back next year.

What do you think? Am I thinking the right things about these two events or am I wrong? Please let me know!

Business Expo

After visiting the 2007 Columbia Business Expo, there was a lot of business opportunity of networking. It was the best turn out I have ever witnessed. As a mortgage broker, I had the opportunity to meet new business partners and visit with current partners. The experience is worth the $5 to attend. I am already looking forward to next years turnout.

Columbia is a great community to have these type of functions. It gives business owners and potential clients a chance to interact face to face.

Pre Qualification, Pre Approval, Committment Letter

I get questions from every direction about the differences between Pre-Qualification, Pre-Approval, and a Commitment to Lend Letter. Now, understand, different brokers use different criteria for what defines these three things. Lenders too. But as a buyer or seller, think of these three "Letters" as different degrees of approval.

A Pre-Qualification is basically the initial step in BEGINNING to put the finance wheel in motion. With my company, we consider an applicant Pre-Qualified when we have taken either a phone or face-to-face interview and gotten the nuts-and-bolts of the transaction. Borrowers Information, Credit, Employment, Income, Property Information, Down Payment (if any), etc. After reviewing this information, if a lender has a loan program that can accommodate the applicant and their goals, they are Pre-Qualified. Which leads us to the next level in the approval process.

A Pre-Approval is issued when we have taken all of the information above, we VERIFY (through written documentation) that what our applicant has told us is, in deed, true and accurate. We will gather and verify recent pay stubs, recent bank statements, etc. If all this information checks out, at this point a Pre-Approval Letter may be issued to a seller or realtor. This demonstrates that with the information I have verified regarding the applicant, this applicant is Pre-Approved for a home loan, for a specific amount. On this Pre-Approval, you will see 2 amounts. One being the purchase price of the home, the other is the amount of the loan. I always list conditions associated with the Pre-Approval. These conditions are things that are still to be determined, not yet verified, or things beyond the brokers control. Examples might be:

1. All employment and credit information to remain unchanged



2. Acceptable appraisal supporting a value of at least $xxx,xxx.xx



3. Clear 24 month chain of title history



4. Evidence of Flood Insurance, if applicable



5. Evidence of Homeowners Insurance



6. “Clear to Close” issued from lending institution

In short, by issuing a Pre-Approval Letter, I am stating that everything the broker and lender knows, and has verified, about the applicant, tells us that we can loan for this transaction. The next stage is to document the collateral (the property) used to secure the loan. This requires the applicant to not only select a property, then order all appraisals, inspections, and insurances that protect the home.

When all of the documentation regarding the APPLICANT AND THE PROPERTY has been documented, verified, signed off by the underwriter, and APPROVED. Then a Commitment to Lend Letter may be issued. A Commitment to Lend Letter states that everything has been agreed upon with the lender, and the only thing left to do is begin the closing. This letter can legally bind the lender to make this loan. Therefore, lenders make sure that everything thing is in place and double checked before the extend this type of commitment. After which, the loan will be funded and funds dispersed to the respective parties.

The differences in these letters is, more times than not, an target for confusion between buyers and sellers. I hope this information helps you see the importance of a "quality" Pre-Qualification, Pre-Approval, or Commitment Letter. If you have any comments or questions from your own experiences, please make a comment.

1st Quarter Realtor Function Recap!

We at Professional Mortgage Group, Inc. really appreciate our referral partners! Our goal was to start this year off with a Bang! We held our 1st Quarter Referral Partners Function at Village Wine & Cheese on Thursday Feb. 22nd. The event was a Wine Tasting with
hors d'oeuvres. It was a great evening and we really enjoyed thanking our Realtors and other referral partners for their business. This is one way we like to give back and at the same time meet new partners. The following is a list of the attendees we would like to thank:

Jason Nowlin - Remax Boone Realty
Michelle Nickles - Remax Boone Realty
Christine Lacey - Remax Boone Realty
Bob Curnutte - The Prairie Group
Pat Curnutte - The Prairie Group
Cindy Neff - The Prairie Group
Tom Bradley - Bradley Marketing
Debbie Netemeyer - Plaza Real Estate
Tim Kuchta - 3D Realty
Gary Pfau - The Jones Team
John Sorenson - The Jones Team
Chris Weinerich - Century 21 Advantage
Sharon Chitwood - Centruy 21 Advantage
Jennifer Stoker - Century 21 McDaniel Realty
Pam Socha - House of Brokers
Sue Franklin - House of Brokers

We will be having another function at some point. Be on the lookout in the 2nd Quarter for information on this event!

Thanks again to all who attended and who send us business! We wish you all the best for your business in 2007!

The Professional Mortgage Group, Inc. Team
Columbia, MO

Is That Spring In The Air?

The weather looks like it might have turned toward spring like temperatures. This is good news for all real estate professionals in general and in Columbia specifically. I've heard from some of my realtor contacts that interest in home shopping is picking up as the weather warms. In fact, several have written contracts over the last week.

• As we start to gear up for the year it is easy to overlook some important things that make life easier for everyone involved in the transaction:
• Remember to have your clients prequalified so that they can look for and get in an appropriate home for their situation.
• Contact a mortgage professional often to discuss current rates and trends.
• Educate your clients on the purchase or selling process.
• Deliver the kind of service and professionalism you would expect if it were your transaction.
• Communicate often with clients...even the most sophisticated needs to be reassured that they have chosen the right professional.

It really is as simple as that! Doing the small (very important) things will set you apart from the competition and bring success. Good luck and much business to all!

Getting Past Procrastination

We all do it. We can all think of things that need to be done...and the sooner the better. It happens in all seasons of the year. You say things like "This year I'm going to start to exercise/diet/take a class/mow the grass/review my finances/develop a will/etc. The list goes on and on. Yet, things just seem to get in the way. Even though you know that these things that need to get done are important, deep down you want to put them off as long as possible. Logical? No. Human Nature? Yes!

The truth is procrastination is a habit, and a bad one at that. But, this time of year is the best time to make sure you accomplish some of those things that really should be done. It's cold out so there are no pressing golf games to attend. The kids are in school, so no pesky vacations that need to be taken before we "buckle down" to work. In fact, as far as most things financial go, this is the one time of year that you have collected all of your financial information to complete your tax forms.

As you are looking at the various forms that were sent to you last month, check out how much interest you paid on your mortgage. Is this the time to consider refinancing? Maybe. If your credit is better now than it was when you took your mortgage out, it is probably worth the time to sit down with a trusted advisor and look at your options. Or, maybe that house is feeling a little cramped. Now would be a good time to review if you can finally afford that dream home for which you've always wished. The point is you have most of the work already done...why let Uncle Sam be the only one who benefits from your organization of information.

It is always hard to break a bad habit. Hard, but not impossible. Don't let procrastination make you pass up or delay getting the benefit of the one time of year where your finances are at their most organized.

Be Up Front With Your Broker!

The reason I am writing this post is because I recently dealt with a buyer who was not up front with me and it ended up wasting my time, two real estate agent's time, and the sellers time! Not to mention they didn't get the house they really wanted!

It should go without saying, but always be up front and honest with people. This is always the best way to go about your business. These customers thought they could work the system and everything would be OK. I am not going to go into detail, but the customers told one little white lie that led to another. As we started verifying things and asking questions, things just snow balled from there. They scrambled to cover their missteps until they had nowhere else to go. They were caught and that was that. Things like this are eventually going to come to the surface. It is just a matter of time. Loans have been underwritten for many years and checks and balances have been put in place to catch these things. Don't think you are coming up with some new plan that hasn't been tried before. We don't tolerate this and neither do the lenders we use. We will not go along with your story. We do things one way and that is the right way!
You can even be prosecuted for trying to commit such acts. It is simply not worth it!

A good mortgage broker has a variety of products at his finger tips that can deal with most situations. Had this customer told us the entire story up front, the loan could have been completed with ease! Instead the customers chose to withhold information. This caused the loan process to drag on and on, which allowed time for their financial situation to change. As I mentioned the customer didn't even plan on doing any of this. They thought it was better to go with their story instead of being honest. This is something that makes the broker look bad, when in actuality it is all on the borrower! All real estate agents and sellers see is that a closing date is missed or the terms of the deal have changed. They don't know the story and what new hoops have been created from the clients lack of honesty!
Luckily for the borrower, we caught what they were doing before the lender did. We put an end to it and the deal was dead.

This is just one example of what can go on. Remember, this is rare and most buyers are honest and this is never an issue. However, It really struck a nerve with me and I wanted to mention this. It all sounds so simple, but just tell your broker the full story up front and you will be placed with the appropriate product from the start! Many buyers have heard mortgage "myths"and feel a simple thing like being self-employed will keep them from getting a loan. Don't assume these things and try and get creative. Professional Mortgage Group has programs that can help.

Just ask!

Brought to you by your friends at:

Professional Mortgage Group, Inc.

Columbia, Missouri