I wanted to take the time to wish everyone a Happy New Year! Hopefully 2007' proved to be a great year for your and your family. We at Professional Mortgage Group hope 2008' boasts promising things again for you! Be careful this evening, "watch out" should you be traveling, please do not drink and drive and be safe out there!
We will see you again in the new year!
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
Monday, December 31, 2007
Friday, December 28, 2007
Does your pre-approval sound too good to be true?
Recently I dealt with a couple customers that were shopping around for a pre-approval. These customers were dealing with a hand full of lenders, some of whom were not shooting them straight. It is my opinion this was just done out of laziness! The borrower came to them, gave them their information verbally, and then lender issued either a verbal or written pre-approval. After shopping around she found that this particular lender had a much lower rate and a much higher approved purchase price. I took a look at her situation and this pre-approval she was counting on as her best deal just didn't seem right. It seemed too good to be true! I told this customer that if this deal is what she says it is, then she needs to take it! I would love to have your business and would value it, however I cannot offer you a better deal. Sure enough, this lender wasn't thorough enough in the pre-approval process and they were off base on the approval. She came back to us and we got the deal done. It wasn't the deal she initially thought she could get, but it was the best loan out there for her! Always remember, most lenders have the same basic products. The difference comes in the manner these products are delivered to the borrower!
This scenario happens quite often. If you really read the pre-approvals, you can see where there is room to wiggle out of them if some piece of the puzzle doesn't come back as expected. Unfortunately when a lender is lazy and issues a pre-approval letter like this, it wastes peoples time. In their eyes I guess they feel they will be able to lock down first dibs on their business. Worst case scenario for them is that they can't do the loan. However, worst case scenario for the buyer is that they are out the time and money it cost them to find this out the hard way instead of finding it out initially.
You can take what you want from this short scenario. Just use a little common sense in comparing quotes from lenders. If one is drastically different, do a little extra homework on the lender. Hammer down all the details to make sure everyone is on the same page! If you do this, it could and probably will save you some unnecessary hassle!
Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, Missouri Mortgage Broker"
This scenario happens quite often. If you really read the pre-approvals, you can see where there is room to wiggle out of them if some piece of the puzzle doesn't come back as expected. Unfortunately when a lender is lazy and issues a pre-approval letter like this, it wastes peoples time. In their eyes I guess they feel they will be able to lock down first dibs on their business. Worst case scenario for them is that they can't do the loan. However, worst case scenario for the buyer is that they are out the time and money it cost them to find this out the hard way instead of finding it out initially.
You can take what you want from this short scenario. Just use a little common sense in comparing quotes from lenders. If one is drastically different, do a little extra homework on the lender. Hammer down all the details to make sure everyone is on the same page! If you do this, it could and probably will save you some unnecessary hassle!
Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, Missouri Mortgage Broker"
Thursday, December 27, 2007
Mortgage Applications Drop!
Despite a significant drop in mortgage rates during the week ending December 21st; mortgage application volume actually fell 7.6%. The Mortgage Bankers Association reported an index rating of 603.8 from 653.8 in the previous week. What does this mean? MBA started tracking application volume on March 16, 1990 at an index value of 100; so a rating of 603.8 simply means that mortgage application volume is 6.038 times higher than it was when the MBA first started tracking this statistic.
This particular index was at its peak on May 30, 2003 with a rating of 1,856.7 when the housing boom was in full force. This survey simply provides a snapshot of mortgage lending activity among mortgage bankers, commercial banks and thrifts. Keep in mind this only covers about 50% of all residential mortgage lending activity. Of the mortgage activity surveyed 50% were refinance applications; this could mean an increase in credit usage as many homeowners are "tapping" their equity to rid themselves of dangerous credit card debt.
Why would this index be down when rates were relatively lower? That is the question that is puzzling wall street this morning. Many believe this is a sign that the housing problems are not on the decline as money may still be harder to come by. My personal explanation is simple. Most people have their minds on other items this time of year rather than worrying about their mortgage or purchasing a home. The holidays are a time for family, reflection, and relaxation; mortgages do not seem to slither there way in there during this time of year.
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
This particular index was at its peak on May 30, 2003 with a rating of 1,856.7 when the housing boom was in full force. This survey simply provides a snapshot of mortgage lending activity among mortgage bankers, commercial banks and thrifts. Keep in mind this only covers about 50% of all residential mortgage lending activity. Of the mortgage activity surveyed 50% were refinance applications; this could mean an increase in credit usage as many homeowners are "tapping" their equity to rid themselves of dangerous credit card debt.
Why would this index be down when rates were relatively lower? That is the question that is puzzling wall street this morning. Many believe this is a sign that the housing problems are not on the decline as money may still be harder to come by. My personal explanation is simple. Most people have their minds on other items this time of year rather than worrying about their mortgage or purchasing a home. The holidays are a time for family, reflection, and relaxation; mortgages do not seem to slither there way in there during this time of year.
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
Wednesday, December 26, 2007
Professional Mortgage Group, Inc.
I hope everyone had a very merry Christmas! I wanted to highlight some tangible benefits that our clients and business partners receive on a daily basis. Professional Mortgage Group, Inc. is truly committed to being the most professional and ethical lender in Mid-Missouri and the below attributes simply back what we are trying to build!
Buyer’s Guides: A “tell all” book about the lending process, programs and what can be expected when purchasing a home.
Educational Daily Blog: A daily dialogue on market news, lending news, local news and personal perspective on key items affecting real estate.
Continuing Education: A member of the Freedman Report (#1 market source for knowing when to float or lock your clients loans to ensure that they get the best possible rate), member NAMB (National Association of Mortgage Brokers), member of Mortgage Originator Magazine and many other “on-line” classes.
Ethical Disclosures: We were the first to roll out additional disclosures above and beyond our competition and our lenders to help educate and inform your clients of key mortgage components. (i.e. Net Tangible Benefit, Customer Copy & Certification, Home buyer’s Certification Course, etc.)
On-line Loan Status: Helps eliminate phone calls regarding the status of a particular client or property; updated “real time”!
Testimonials: I challenge you to find another local lender with the credentials and testimonials we have! WE BACK WHAT WE SELL!
Yard Signs & Financing Flyer's: We want to help move your inventory and have developed and unique way to do so.
Featured Realtor Page: We want to help you get recognized and sell properties, this “unique” tool helps us accomplish that!
Service Guarantee’s: We take these VERY seriously and back them up!
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker!
Monday, December 24, 2007
Merry Christmas!
Thursday, December 20, 2007
Underwriting Changes
Just when you think the mortgage mess is idling down and coming to some normalcy again yesterday comes along and hits you like a ton of bricks. I received an e-mail from a prominent lender in the Mid-West region yesterday around 3:41pm CST announcing a wholesale list of changes to ALL programs and we literally had an hour and fifteen minutes to "lock" our files or risk losing the ability to close the loan. Now this is nothing new to the mortgage broker, banking representative or any other lending institution, however it had been a period of time before anything like this had been seen. We are seeing even more strict guidelines on the Fannie Mae and Freddie Mac side, changes to Loan Prospector and Desktop Originator (decision engines for Fannie and Freddie), loan-to-value changes, debt-to-income changes, risk assessment changes and many many others.
So just when you think the mortgage market may settle down something like this hits and you must react in a timely, efficient and effective fashion for both your livelihood and your clients well being; although I must admit at times is extremely difficult! It is a very stressful time for me right now as I truly take my clients mortgage process very seriously and do not / will not jeopardize my reputation or ethical standards as a result of "last minute" guideline changes. What does this mean? Well simply put at times I must open my pocket book and lose money to fulfill my word and my clients expectations! Are others doing the same?
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
So just when you think the mortgage market may settle down something like this hits and you must react in a timely, efficient and effective fashion for both your livelihood and your clients well being; although I must admit at times is extremely difficult! It is a very stressful time for me right now as I truly take my clients mortgage process very seriously and do not / will not jeopardize my reputation or ethical standards as a result of "last minute" guideline changes. What does this mean? Well simply put at times I must open my pocket book and lose money to fulfill my word and my clients expectations! Are others doing the same?
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
Wednesday, December 19, 2007
20% Down Payment
In today's volatile mortgage market, some are thinking that it is best to go with the old fashioned way of buying a home. This is by putting 20% down. This avoids mortgage insurance and lowers your payment. The lender bears much less risk on an 80% loan, therefore a lower interest rate is given. With the way things have been lately, I definitely understand the logic behind such a view. However, I do not agree it is a wise choice. If you are very liquid and have the cash, it is no big deal. The reality is that most people are not in this situation! I read a very good article on Yahoo Finance today and I wanted to post the link below. I think this brings up some great points while keeping it short and to the point. Please read and feel free to post any comments you have on the subject.
Here is the link to the article.
http://finance.yahoo.com/loans/article/104047/Skip-the-20-Down-Payment
If this link doesn't work, just copy and paste it into your internet browser.
I hope this helps!
Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"
Here is the link to the article.
http://finance.yahoo.com/loans/article/104047/Skip-the-20-Down-Payment
If this link doesn't work, just copy and paste it into your internet browser.
I hope this helps!
Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"
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