Archive for August, 2016

August 19th, 2016

Do not settle reminder - handwriting on a napkin with a cup of cSome of us have been in the real estate business long enough to remember the “pre-internet” way of doing things. A number of us jumped in with both feet as the new age of doing business and searching for homes took shape – we grew with it and adjusted our business models to accommodate. We have online home loan applications, blogs, mobile apps, and secure modes to upload documents and communicate. Others, still today, hang on tightly to those “good old days” when things were slower paced and seemingly easier. While we were early adopters and embraced the new way of doing things, our team does battle on a daily basis with some of the technological advancements that were supposed to make it easier for everyone – how consumers shop for homes and calculate home mortgage payments online not being the least of them.

It’s no secret that most consumers begin their search for a home loan online. There isn’t a shortage of resources available for consumers to use to start the search process – the challenge here is perception vs. reality about the true value most of these websites offer.

As a Real Estate Professional, you are promoting your company’s mobile connectivity. You may also have a marketing profile with other sites that will provide leads to your team. All of these things are great opportunities and Fairway can add to your marketing platform with a product called HBM (Home Buyers Marketing) – yet another way for you to offer your clients a mobile application that is password protected, contains all of the available listings in the area in real time, and is free! I use it as a mobile application, but it can also be used on my desktop; and the mapping function is great if I need to get value ideas for clients considering a refinance. The client data is safe and not subject to public marketing.

Nothing replaces the wisdom and resources available through true mortgage and real estate professionals; however, a tool such as HBM is just another way to stay connected with your clients. Check out my app by clicking and use my VIP code of 6128168525. Let me know what you think!



You Just Need to Get it Done – The Right Way!

August 12th, 2016

Residential Home Blueprints

We counsel home buyers and home owners every day regarding home purchases, refinances, and home improvements. We do our best to arm you with all of the information you need to make an educated decision about the home buying process.

This week, I spoke to a client who had passed up two homes prior to coming to us for a home loan because both of them had repair costs that couldn’t be managed after closing. The need for home improvements or construction costs are things clients often encounter when making the decision to stay put or buy a new home. “What improvements should I make or shouldn’t I make,” or “what improvements will need to be made in order to make this home work for us now and in the future?”  These are excellent questions, and we want you to ask them, but we don’t want you to miss out on a great home because you didn’t know the available options.

We often hear clients say, “I can get that done a few years from now when I’m able to save more money,” or “I’m not sure this home will work because it needs a new roof, siding, or a kitchen or bathroom remodel.” We have answers to these woes, and many others that are expressed every day regarding home improvement needs.

It’s not necessary to say no to a home, or to wait and hope that you will have saved enough by the time that roof really needs replacing. There are construction and rehabilitation options for nearly every loan type, and we are happy to discuss those options and help formulate a plan that works for you!

Just get it done – and do it right from the beginning. Don’t wait, or hope, or let it go. We’ve seen too many people pass by homes that would have been just right because they weren’t given the option to finance repairs. Explore your options – we’re here to help!

Housing remains the bright spot in our economy – let’s dispel the myths and keep it rolling!

August 5th, 2016

don't knowAccording to Keeping Current Matters, more than half of consumers don’t know the basics about qualifying for a mortgage. They may be making decisions based on inaccurate information about down payments, credit scores, and qualifying ratios.  This is our opportunity to educate them about what is possible!

There is a belief that a consumer needs at least a 750 credit score to qualify for a loan, and there are some who believe that score needs to be at least a 780. I am not sure where this belief has come from, so let’s get the word out so consumers know the facts. Per a closed loan survey done by Ellie Mae over the past twelve months, ending in May of this year, 54.9% of the loans that closed had credit scores between 600 and 750. The average FICO score, broken down by all loans, was 724 – for conventional loans the score was 754, for FHA loans it was 686 and for VA it was 707. Ellie Mae said, “Part of the reason FICO scores are creeping up is because people with lower FICO scores are afraid to apply for a mortgage that they could get if they applied.” This is something I had not considered.

Consumers are also confused with DTI (debt to income ratios). They should understand what the ratios mean, and not disqualify themselves without speaking to a professional. The same closed loan report from Ellie Mae also showed the average back-end debt ratios as follows: all loans averaged 38% DTI – conventional at 34%, FHA at 41%, and VA at 40%. Our max DTI runs 45% for most programs, and goes higher with compensating factors. Read the rest of this entry »