Nashville’s Wonderful 4th of July Celebration
Posted on | July 2, 2009 | No Comments
If you have never made the trip to Downtown Nashville to enjoy the music, celebration and fireworks on the Fourth of July, I highly recommend you take the entire family to the Riverfront Park this weekend. I was hesitant because I’m not real found of being in crowds but my wife and I have gone for the last several years and it’s something we don’t want to ever miss.
It’s a great place to meet your family and friends and just relax and enjoy the evening. Once the fireworks start, accompanied by the awesome Nashville Symphony, it is a non-stop entertainment festival for the eyes and ears! We park over by the stadium and walk across the pedestrian bridge to the Riverfront. If you can go, you will not be disappointed. Take an umbrella because there is a chance of rain this year but hopefully the show will go on!
When Not to Buy a House
Posted on | June 22, 2009 | No Comments
Everybody is talking about how now is a great time to buy a house since there is the stimulus plan that let’s you get up to $8,000 back on a tax credit as well as rates that are still historically low. However, as much as that seems to be great advice, there are times that buying a house id not the right time. Here are just a few.
Do not buy a house if:
- You think your job is in jeopardy
- All your friends are buying a house
- You don’t have down payment money & don’t qualify for assistance
- The payments are more than you are comfortable with
- You’re counting on room mates to help you make the payments
Being comfortable and ready to make the house payments as well as pay for any needed or additional repairs is an important part of owning and maintaining property. Don’t buy a house until you are ready to make the commitment.
Short Sales Can Take a Long Time to Close
Posted on | June 19, 2009 | No Comments
So I’m talking to a Realtor last week who tells me about a client that wants to purchase a short sale property because they need something quick. They did not understand the nature of a short sale because, most of the time, they are anything but quick! In fact I have been working with several borrowers for so long now on short sales that the recent rate increase has reduced the amount of home they qualify for. How long you may ask; six and eight months!
Most banks and mortgage companies do not actually “own” the loan, they simply service it. This means they have to go back to the owner or investor and make the deal through them. This takes time as sometimes the owners are in other countries. On top of this you have second loans associated with properties that have to be in the mix as well and many people who extended second are loosing a lot of money right now as well so they aren’t really thrilled about loosing any more. Add the shear amount of homes that are seeking to go through the process and it simply boils down to time.
Having a Great Real Estate Team
Posted on | June 15, 2009 | No Comments
I have worked with some great Realtors, some good Realtors, okay Realtors and some not so great Realtors and I’m sure there have been some Realtors that don’t think I’m that great either. Sometimes it comes down to personalities or the way you do the work. Real Estate is a business and we all tend to do business with the people who operate like we do. That’s why, in most cases, if you like your loan officer, you will like the Realtors he or she does business with and visa versa.
We work well together because we know each other and can trust what the other one says and does. We have mini teams that work to get you the best deal possible within the market at the time; be it the mortgage market or the real estate market. Just think if you could play basketball with any NBA team of your choosing. To get on the court with these guys would give you the best possible chance of winning that you could have. That’s what picking a real estate team can do for you when buying or selling a home.
Modifying your Home Mortgage
Posted on | June 11, 2009 | No Comments
Now that interest rates are on the rise and the economic situation stays somewhat the same, people are having less and less options when trying to reduce their monthly mortgage payment. If you are having a hard time paying your mortgage but have managed not to be late thus far, you can contact your mortgage service provider and ask for the department that takes care of current loan modifications.
Once you have the right person on the phone initially they can talk to you with just you loan or account number. However, there are some things they will ask you to get ready to send them via fax or email so make sure you listen and write down everything they require. This normally includes tax returns, copies of recent pay checks or your current unemployment letter, bank statements and profit and loss statements, if you are a small business owner.
It is a process so the sooner you get started the better. Just remember, these people deal with a large number of customers who are all in very stressful situations so please be nice and courteous when talking or emailing them. They are trying to help even if, in the end, they might not be able to. They are the middlemen between you and the investor who actually owns your loan so don’t shoot the messenger.
The Time it Takes to Close a Loan
Posted on | June 4, 2009 | No Comments
There used to be a couple of things in times past that you would hear loan officers say. One was, “If you can fog a mirror, we can give you a loan!”, and we all know where that has taken us. The other is, “We can close a loan within a week.” which no longer applies in most cases. The reason it takes longer to close most loans is simple; they are all full doc loans with full disclosure and the appraisal process is now a separate process that can take forever!
When we can close a loan it will already have an appraisal and the client has given us all the documentation along with an appraisal that can be easily transferred. Other than this scenario, loans take at least two to three weeks to even think about being closed. If you could sit with a processor and underwriter and see how many times they touch each file to order, clear and calculate you would be amazed they turn the loans as quickly as they do. While loan officers are the fuel, it is all the people that work on the backend that make up the engine that allows your mortgages to get processed, underwritten and funded. These people are amazing at what they do and deserve more credit than ever given.
The Length of a Short Sale
Posted on | June 1, 2009 | No Comments
Short Sales from the outside looking in would seem like a very direct way for a seller and a bank to agree together to sell a property. However, from the inside looking out, it is not that simple. Many bank owned properties are actually owned by other entities and are merely serviced by the bank. That means the bank or Mortgage Company gets to keep the money when you are late but the interest on your loan goes to the investor. If the original investor packages your loan up with a bunch of other loans and sells them to another investor, then it can take some time to trace and find out who really owns your loan. Add to this that a foreign bank could have bought your loan and there is yet another step that takes even longer to figure out and you can understand why it take a few months to figure out if the short sale will work or not.
Right now I have several clients who have waited as much as 5 months to get an answer back from a bank. I know of two others that have waited over 9 months for an answer on their offer to purchase a short sale property. Unfortunately, there is no short term solution for getting answers back any quicker at this time. It takes time a effort to find the owner on every loan so if you decide to make an offer on a short sale, just know it could drag on. On the positive side, I have seen many that come back and close within two to three months but you don’t know going in if yours will be a fast turn around or slow.
The Time Crunch for a Loan
Posted on | May 27, 2009 | No Comments
It’s an interesting time for those of us who have been in the home loan business for awhile. It wasn’t that long ago you could bring a loan in on Monday and get it closed by Friday of the same week. There are times that is still happening but it is farther and fewer between. Part of the reason for this is good for the consumer and good for the lenders; though as loan officers it’s hard to see or acknowledge that sometimes. Because of the looser regulations and restrictions of the past, many people got themselves over their heads and into mortgages they didn’t understand and in time couldn’t pay. This same lack has led many lenders to go out of business or have to sell out to competitors; ultimately leading to the mortgage crisis we are still going through today.
To counteract this trend, regulators, investors and lenders alike have had to reenact many old guidelines and even tighten them further, which make the processing of the loans that much harder and time consuming. Some have also had to trim their staffs so when many loans come through their systems there are not enough personnel to process the loans. Fortunately, we have been able to hold onto our staff and still have processors and underwriters that have worked for this company for over 30 years. With that said, the processing is taking longer so everyone involved in the process needs to allow for the process to take place. If you plan ahead and know what documents you need and give them quickly then loans are being closed almost as fast as they used to be.
Have a Great Memorial Day Holiday!
Posted on | May 22, 2009 | No Comments
Memorial Day is a very special holiday. Most people just appreciate the fact that we get another paid day off work. However, this is a day that we get to thank those who are still with us and those who have since past on for their sacrifice and bravery for us and our country.
This is not a day to be judgmental or political but one of unity for our country. It doesn’t matter whether you are a Republican, Democrat or Independent; whether you are straight or gay or what color your skin or where you choose to worship, if you choose to worship for there are fallen soldiers; male and female of all the associations listed above and more who have fought for your right to be an American. This my friends, is a day of thanks, an opportunity for you to tell those you know that have served how much you appreciate their sacrifice. If you don’t know anyone personally, then offer up good thoughts and prayers. On this day, we can be and should be nothing else but Americans, united as citizens in a wonderful and vast country. With that said; Have a Great Memorial Day weekend!
Need a 203K?
Posted on | May 18, 2009 | No Comments
203K’s are getting harder to find these days as lenders struggle to get loans underwritten and closed. However, there are some companies that are actually flourishing and the 203K is a good part of their overall mix of loans. These companies are looking forward at what can be done with the bank owned properties (REO) and foreclosure properties as well as HUD and just renovation of a home you have instead of selling and moving up to a larger house. All of the scenarios can be accomplished with a 203K loan.
If you are not familiar with this type of FHA loan it is simply a way to finance your upgrades and renovation into an existing loan. There are certain requirements that have to be met and it normally has a little bit higher interest rate and some additional fees for inspections, etc. and is overall way more inexpensive then trying to renovate on credit cards! If you are interested in this type of loan, call New South Federal Savings 615-269-9444 and ask for Taylor. Find out if this is the loan for you!
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