6 Critical Indicators of a Mortgage Professional

How do you know when your dealing with a true mortgage professional? Not a loan originator, loan officer, mortgage consultant, broker or any other host of names that are given to individuals involved in originating mortgages these days. But a true, ethical, honest and educated mortgage professional. Well, hopefully some of the tips below will help educate you as a consumer in the mortgage environment and what to look for in choosing someone to be your representative in getting the best mortgage possible for you!

1) Does he/she speak fluently and without hesitation?
More often than not when an individual is "dancing around" questions it usually means they are trying to cover something up. For obvious reasons you do not and should not have to deal with this. Choose a mortgage professional that answers your questions head on and with confidence. I say this because if the individual speaks, thinks, and acts like a professional and gives you honest feedback then this should always be taken as a plus! Its not the end all be all because we all know there are some great speakers out there.

2) Do they possess the Lending Integrity Seal of Approval?
This is a designation not required by most states but is encouraged. Basically, its a seal of approval by the NAMB (National Association of Mortgage Brokers) which signifies the completion of 6 hours of continuing education annually (2 of those hours in ethics), 3 professional business references, a background check, and a signed commitment to abide within a stringent code of ethics.

3) Do they have testimonials to back their claims?
The old saying holds true "If you do one good thing 1-5 people will hear about it if you do one bad thing 25-50 people will hear about it." Why do I say this? Doing things the right way, at the right time and with the right tools is crucial. It takes a lot for someone to actually show their appreciation by writing a testimonial and greatly adds to the individuals creditability as a solid mortgage professional.

4) Do they provide a complete and accurate set of disclosures?
Do there GFE's (Good Faith Estimate) include everything you will see at closing? Have they left off the recording fee, appraisal, title charges etc. I cannot tell you how many times I run across this on a day to day basis. Look for someone who discloses everything to you up front! At least that way you know what to expect and who is doing things the right way and who isn't. Do they have a privacy disclosure, truth-in-lending, patriot act, mortgage origination, etc. A true representation of disclosures should be approximately 22-28 pages. Watch out for individuals who disclose significantly less than this.

5) Do they have the knowledge and tools to make float and lock recommendations?
I am not one for recommending doing business with the company with the absolute lowest rate. However, I do understand that this is a crucial piece of the puzzle but just one piece of the puzzle. Understanding what effects mortgage rates, the market, and technical indicators is an attribute that cannot be duplicated. A true mortgage professional will be able to recommend decisions that will greatly impact your rate and hence your payment and interest charges. Do not do business with someone that simply goes off of "gut" decisions rather someone who has an enhanced knowledge and system in place to make recommendations and the instruments as to why.

6) Do you trust them?
I know this one is a little remedial however it is probably the single best indicator in whether or not you should do business with them. Like life trust is earned and not deserved. Have they done the right things to make them earn your trust? Were they recommended by someone you trust and whose opinion you value? If you do not trust them or value their recommendations, opinions and insight then you should turn to someone whom you do trust.

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

Boone County Missouri 2nd Quarter Stats 2008

If you remember just a week or so ago I posted the 1st quarter numbers and to say the least they were not good. So rather than babble on with needless chat I'll just give you the figures and let you form your own conclusions.

APRIL 08 vs. APRIL 07

• Down 35 units or 9.5%
• Down $5.65M in volume or 9.3%
• New construction was down 1 unit and $698,736 in volume

MAY 08 vs. MAY 07

• Down 26 units and $5M in volume
• New construction was down 15 units and $2.65M or 14.6%

JUNE 08 vs. JUNE 07

• Down 59 units or 11.4%
• Down $10.7M in volume
• New construction was down 22 units $4.99M in volume or 29.7%

2nd Quarter 08 vs. 2nd Quarter 07

• Down 123 units
• Down $21.57M or 8.8%
• New construction was down 39 units and $8.56M or 38.2%
• Existing homes were down 84 units and $13M in volume or 6.6%

1st 6 mos 2008 vs. 1st 6 mos 2007

• Down 205 units
• Down $34.2M in volume or 9.1%
• New construction was down 78 units and $14.97M in volume or 18.5%

Brought to you by Professional Mortgage Group, Inc.

Your Columbia Missouri Mortgage Broker

Project RESTART

I have been searching online today trying to find something positive to blog about. I finally found this article on CNN Money.

Project RESTART is a program in the works that its founders hope will help revive the mortgage market. When I see anything like this, I am all ears! Mortgage Backed Securities are the key component in todays market. These are formed when mortgages are packaged together and sold. If nobody is buying, we have big problems. Mortgage rates go up and this only causes more problems in a market that is already spiraling downward!
Well buyers are very sparse these days and this programs goal is to try and change this!
In the past lenders packaged loans as these securities and sold them. This allowed them to become more liquid. Due to many of these performing poorly, interest fell off and liquidity problems arose. Lately this power has mostly shifted to Fannie Mae and Freddie Mac. This is because they provide the majority of mortgage funding these days. Investors obviously feel more comfortable buying MBS's that are packaged through these 2 companies. Due to these factors, it is no wonder why they are under such a strain! This program hopes to shift some confidence back to solid lenders who package MBS's. This is necessary to get the market back to normal. The program plans to do this by making these investments more transparent and understandable for investors. To make it simple, in the past you just purchased an bundle of mortgages. With the new format, you can select the risk pool of mortgages you buy. Lower risk means a lower return and vice versa. It makes perfect sense. Will it work? Only time will tell. Whatever happens, it is refreshing see that people much smarter than I am are working hard to fix this mess!

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

"Hot" Weather Seems to have "Cooled" Off The Buyers

There are many things in life that are left to uncertainty. However, one thing at least in the real estate community that remains a truism even today is the fact that most real estate markets are VERY cyclical. What do I mean? Take for instance the extremely hot, almost unbearable weather the Mid-West has had the last 7 or so days. Obviously in my profession I am surrounded by real estate professionals such as appraisers, title companies, inspectors, realtors and other colleagues. It seems with the hot weather smoldering around a lot of our buyers have disappeared. Now I'm sure this can be partly attributed to other factors such as vacations, waiting for further prices decreases, children's athletics, and rising prices at the pump. But things have continued to go up and down in this industry with one week being very busy to the next not so much.

The key is never getting too high or too low. Professional Mortgage Group, Inc. has been very steady from January 1 to the present. However, that's not to say there haven't been lulls. The good news is the lows have been followed by highs. Many of the realtors I have contacted have confirmed my suspicion that the hot weather has seemed to keep buyers on the sidelines. Like I have stated in earlier posts I have been impressed with Columbia's resilience!

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

Money Magazine's Top Places To Live

If you received our Newsletter yesterday, you may have already read about this topic. We featured a link to this story. I wanted to summarize this list and how Columbia compares.
Columbia used to be featured on this list. I do not recall the last time we were featured, but it is clear we are no longer. Now this doesn't mean Columbia is a bad place, it just shows we have been standing still while others have passed us by.

Topping the list is Plymouth, MN. Here is how Columbia stacks up in a few categories.
Plymouth, MN Columbia, MO
Median Income: $111,631 $64,131
Sales Tax 6.65% 7.55%
Job Growth 7.89% 6.32% (lower than any city in the top 10)
Some College Ed. 83.3% 79.5%
Median Home Price $288,950 $150,000
Crime 2 / 28 5 / 33 (Among the highest)
(personal crimes/property crimes per one thousand)

Here is how we stack up against the averages of the top 100 Places to Live.
Median Income: $93,075 $64,131
Sales Tax 6.60% 7.55%
Job Growth 18.72% 6.32%
Some College Ed. 73.7% 79.5%
Median Home Price $291,949 $150,000
Crime 2 / 25 5 / 33
(personal crimes/property crimes per one thousand)

To view the article click here
To view how Columbia compares in all categories click here.

So as you can see Columbia does lack in some areas, but we are not way off. The most glaring issues are our job growth and crime. As far as crime, keep in mind we are comparing this area and all the others to the best of the best. So we are probably in pretty good shape. If we can just lure some new businesses to Columbia to stimulate the job market, we will be moving in the right direction. With such an improvement many other positives will come to this community!

Brought to you by:
Professional Mortgage Group, Inc.

VA Approved!

I am happy to say that as of Friday July 11th Professional Mortgage Group, Inc. has officially been approved through the Department of Veterans Affairs. Yes, that's right we can and will deliver our same great service, knowledge and ethical advice to our veterans out there! This is a new product line for us that we have not had since our inception so we are very excited about having the ability to work with another customer base that we have not been able to in the past.

In connection with this we (Professional Mortgage Group, Inc.) have also begun the process of getting our Lending Integrity of Seal Approval through the MAMB (Missouri Association of Mortgage Brokers). Basically, this is a true seal that is only issued upon completion of 6 hours continuing education, professional references, back ground checks and application diligence. Hopefully sometime within the next 30 days we will be the first mortgage broker in Mid-Missouri with this designation.

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

Something Positive Please!

If you have been paying attention to the news and this blog lately, you have no doubt noticed a common theme. Negativity! We follow all of the industry news very closely and the economy has been topic #1 lately. The problem is that all the news that I have read has been bad. Rates going up, Indymac collapsing, gas prices increasing, Fannie and Freddie bailout, etc.. It goes on and on. This on top of all the Housing Slump talk. Don't get me wrong, I know it is bad out there and we are going through a very very tough time. However, I also know that there is a lot of good news out there as well. Since we are in Columbia, Columbia is what I want to focus on. Our numbers are down, but I have talked to several different Realtors and they are still having solid years. Same goes for Mortgage Lenders. We are all down off of our high times, but things are still steady for the ones who are on top of their game. Our June was a record month for us and after a slow start around the Holiday, July seems to be shaping up just fine! I am sure many of you have success stories to tell. I know we all like to hear positive comments rather than negative! It is human nature! Who wants to be in the dumps all day long!
This blog is meant to be interactive. You can remain anonymous if you want, but please post a comment on any positive news you have to offer! We welcome the feedback and I am sure all of our readers will to! Also be sure to click through to our complete blog page and vote for your opinion of the Columbia market.

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