Cash / Mattress Money is a Deal Killer

- Cash / Mattress Money is a Deal Killer-

AHEAD OF THE CURVE ARTICLE BELOW

Below is a list of my top programs that should be in every agents resource
folder:

-FHA closed on time: [http://www.realestateloans.com/fhadonewell.pdf]
[http://www.realestateloans.com/fhadonewell.pdf]
www.realestateloans.com/fhadonewell.pdf

-100% Rural Development: [http://www.realestateloans.com/usda.pdf]
[http://www.realestateloans.com/usda.pdf] www.realestateloans.com/usda.pdf

-$100 down for HUD owned homes:
[http://www.realestateloans.com/100hudhome.pdf]
[http://www.realestateloans.com/100hudhome.pdf]
www.realestateloans.com/100hudhome.pdf

-Deferred maintenance homes:
[http://www.realestateloans.com/uglyhomes.pdf]
[http://www.realestateloans.com/uglyhomes.pdf]
www.realestateloans.com/uglyhomes.pdf

-100% pre-approval to closing ratio:
[http://www.realestateloans.com/concierge.pdf]
[http://www.realestateloans.com/concierge.pdf]
www.realestateloans.com/concierge.pdf

-VA 100% financing:  [http://www.realestateloans.com/va.pdf]
www.realestateloans.com/va.pdf

-Home Buyer job protection mortgage:
[http://www.realestateloans.com/rainydays.pdf]
www.realestateloans.com/rainydays.pdf

CASH IS KILLING DEALS:

I recently had a borrower call me and state she deposited $6000 into her
bank account from an unsecured loan. Without telling the Realtor or myself
she used this money for the contract deposit. Some form of outside monies
has been interjected into four of the last ten deals I've done and the
borrowers did it after reading
[http://gilkerk.realestateloans.com/condominiums/2009/05/07/i-need-to-make-a-home-loan-application-help.html]
my home purchase introduction link which clearly states that cash and large
deposits should be avoided.

Why isn't cash allowed into a transaction? It's the borrowers money right?
Several obvious reasons: Patriot Act/Banking Laws, Drug Money, Cash
Laundering, Straw Buyer considerations, Under the Table Seller Concessions,
Realtor or Loan Office contribution, Unsecured/unreported loan, Gift from
an unacceptable source, etc..

Loan officers and Realtors should never allow or encourage customers to
deposit or use cash for ANY part of the transaction nor turn a blind eye if
they know a client is borrowing money from credit cards or personal loans.
This type of mistake will certainly cause problems and create needless
tension. Now more than ever, loan files are being looked at with a fine
tooth comb. More and more careful verifications are being done a day before
closing- be prepared and don't let your deal die for dumb reasons.

Remember, FHA case numbers follow these loans. If one underwriter declines
a loan, the disposition will follow that loan. Realtors and Loan Officers
must work closely to prevent problems from day one.

Please call me at (847) 873-7295 to discuss nuances. Here to help you get
homes financed.

Is your loan officer less responsive than you'd like? Cut yourself free
from bad service, poor communication and start enjoying incredible support
today.

Could your team use an updated presentation to get agents up-to-speed on
loan program changes? Lending is a huge part of transactional business,
consider  scheduling my lunch and learn for your team.

Gil Kerbashian

Mortgage Lending Since 1997

Gil's Loan Answer Hotline: (847) 873-7295

Posted by gilkerk ( General, FHA, Lender Gossip, Government Home Loans, Home Loan application, VA, Home Appraisals, Credit Scores, USDA Loan, Credit Repair, Tax Credits, Refinance, Downpayment, Homeownership, Housing Bottom, Closings, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Mortgage Interest Rates, Treasury, Federal Reserve, Fannie Mae, Freddie Mac, Housing Recovery, TARP, FHA Appraisals, FHA Appraisers, HUD Owned Homes, Fannie Mae 105%, Fannie Mae Refi Plus, HUD Homes, HUD Foreclosures, McNeil Financial Group, Lake in the Hills Mortgage, McHenry Home Loans, Home State Bank IL, Harris Bank IL, realestateloans.com, mcneil financial group, (847) 458-8700, Integra Mortgage Schaumburg Illinois, Mortgage Buydowns, Mortgage Modifications, 2-1 buydown, FHA 2-1 Buydowns, Consumer Financial Protection Agency, Mortgage loan application, mortgage application, fnma 1003, HVCC, 203ks, fha 203ks, 203k, Donald Brewer, Gil Kerbashian, Crystal Lake IL Teachers, Northwest Suburbs Il, Northwest Young Scholars Foundation, Home Affordable 125%, FHA Gift Letter, (847) 794-5000, OFAC, Condominiums, Allied Mortgage Capital Corp, Allied Mortgage ) :: Permalink :: Trackbacks (0)

FANNIE MAE'S NEW DEBT TO INCOME RATIO'S

Ahead of the Curve
For Active Real Estate Marketing Professionals...
Fannie Mae has implemented the new debt to income ratio for borrowers in conventional loans: Starting December 1st or thereabouts for most lenders, conventional loan total debt to income ratio's have been brought down to 45%. Up to this point the average TDTI has averaged in the low 50's.
NOW: 45% is the guideline for borrowers that put down 20% or more. For conventional loans with less than 20% down the ratio is restricted to 41%. Please see my above article on debt to income ratios for clarification of what a DTI is.
Why is this change important to real estate professionals? You have pending offers, pre-approvals and deals in the pipeline that currently have ratios above 45%. These deal may have problems closing. Take a moment to inquire about these offers or pre-approvals and make sure the home buyers will be able to close.
Please call me at (847) 873-7295 to discuss nuances. Here to help you get homes financed. 

Posted by gilkerk ( General, FHA, Lender Gossip, Government Home Loans, Home Loan application, VA, Home Appraisals, Credit Scores, USDA Loan, Credit Repair, Tax Credits, Refinance, Downpayment, Homeownership, Housing Bottom, Closings, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Mortgage Interest Rates, Treasury, Federal Reserve, Fannie Mae, Freddie Mac, Housing Recovery, TARP, FHA Appraisals, FHA Appraisers, HUD Owned Homes, Fannie Mae 105%, Fannie Mae Refi Plus, HUD Homes, HUD Foreclosures, McNeil Financial Group, Lake in the Hills Mortgage, McHenry Home Loans, Home State Bank IL, Harris Bank IL, realestateloans.com, mcneil financial group, (847) 458-8700, Integra Mortgage Schaumburg Illinois, Mortgage Buydowns, Mortgage Modifications, 2-1 buydown, FHA 2-1 Buydowns, Consumer Financial Protection Agency, Mortgage loan application, mortgage application, fnma 1003, HVCC, 203ks, fha 203ks, 203k, Donald Brewer, Gil Kerbashian, Crystal Lake IL Teachers, Northwest Suburbs Il, Northwest Young Scholars Foundation, Home Affordable 125%, FHA Gift Letter, (847) 794-5000, OFAC, Condominiums, Allied Mortgage Capital Corp, Allied Mortgage ) :: Permalink :: Trackbacks (0)

Gils Enews: Credit Scores

This weeks topic:
 
- Credit Scores -
 
(thank you to the agents that emailed topic suggestions last week)
 
Please email me your topic suggestions. Driving around dropping off fliers wastes gas, time and paper. Help me keep it Green, Clean and Current.
 
Update on current purchase transaction turn times:
FHA: 5 days to underwrite. (still time to close for the $8,000)
Conventional: 4 days to underwrite
FHA rehab: 15 days to underwrite
 
Gil's current loan closing performance stats:
100% ytd pre-approval letter to closing record
100% ytd rate quote to rate delivery accuracy record
97% ytd on-time closing record
89% ytd purchase to refinance loan ratio
Years of reliable and trusted service for purchase money financing.
 
What are some current loan process concerns right now?
1. Funds to close verification from buyers (no unsourced deposits allowed)
2. Debt to income ratios
3. Horrible loan pre-approvals on down-leg transactions
4. Low credit scores
Below is a list of my top 9 programs that should be in every agents resource folder: 
     Fast closing flyer:  www.realestateloans.com/fhadonewell.pdf  
    100% Rural Development:  www.realestateloans.com/usda.pdf  
    $100 down for HUD owned homes:  www.realestateloans.com/100hudhome.pdf  
    Deferred maintenance homes:  www.realestateloans.com/uglyhomes.pdf  
  Pre-approvals that close:  www.realestateloans.com/concierge.pdf  
  VA 100% financing:  www.realestateloans.com/va.pdf

My personal email for questions: gilkerk@yahoo.com
 
 
Ahead of the Curve
For Active Real Estate Marketing Professionals...
 
New Credit Score Requirements: Credit score requirements are now lender to lender specific. Due to default rates with certain lenders and secondary market requirements some lenders have been pushed to increase credit score requirements for their mortgages. You may want to proactively monitor your buyers to make sure they are matched with lenders that have an appetite for their credit score.
 
Recently, I've started seeing the introduction of three to four Tiers for FHA loans: 620, 640 and 660. You will see 660 minimums with a few lenders that have been hardest hit with mtg defaults and low FHA score card results. Some lenders are also overlaying the higher scores to protect their future FHA score card.
 
As most of you know, conventional lenders have already instituted risk based pricing on conventional loan programs. Risk based pricing is tiered towards both down payment and credit score. Prime rates are offered at scores starting at 720. You will see rate/fee increases when the score goes down in 20 point increments. 700-719 pricing, 680-699 pricing, 660-679 pricing, 640-659 pricing and so on down to the 620-639 floor.
 
Please take a look at the above flier on credit scoring. I'm supporting my Tier one agents and their buyers with credit score inhancement and rescoring.
 
 
Is the lending process burning you out? Is your loan officer slower than you'd like? Cut yourself free from bad service, poor communication and start enjoying incredible support today. Call if I can assist.
 
Could your team use an updated presentation to get agents up-to-speed on loan program changes? Lending is a huge part of transactional business, consider  scheduling my lunch and learn for your team.
 
Win over your listing presentations and let your listings professionally present themselves with a year of free TALKING HOME TOUR TECHNOLOGY. Call to sign up today. See the above flier for details.
 
 
 
Gil Kerbashian
Mortgage Lending Since 1997
Gil's Loan Answer Hotline: (847) 873-7295

 
 

 

Posted by gilkerk ( General, FHA, Lender Gossip, Government Home Loans, Home Loan application, VA, Home Appraisals, Credit Scores, USDA Loan, Credit Repair, Tax Credits, Refinance, Downpayment, Homeownership, Housing Bottom, Closings, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Mortgage Interest Rates, Treasury, Federal Reserve, Fannie Mae, Freddie Mac, Housing Recovery, TARP, FHA Appraisals, FHA Appraisers, HUD Owned Homes, Fannie Mae 105%, Fannie Mae Refi Plus, HUD Homes, HUD Foreclosures, McNeil Financial Group, Lake in the Hills Mortgage, McHenry Home Loans, Home State Bank IL, Harris Bank IL, realestateloans.com, mcneil financial group, (847) 458-8700, Integra Mortgage Schaumburg Illinois, Mortgage Buydowns, Mortgage Modifications, 2-1 buydown, FHA 2-1 Buydowns, Consumer Financial Protection Agency, Mortgage loan application, mortgage application, fnma 1003, HVCC, 203ks, fha 203ks, 203k, Donald Brewer, Gil Kerbashian, Crystal Lake IL Teachers, Northwest Suburbs Il, Northwest Young Scholars Foundation, Home Affordable 125%, FHA Gift Letter, (847) 794-5000, OFAC ) :: Permalink :: Trackbacks (0)

Northwest Young Scholars Foundation : Spelling Bee

 
Crystal Lake IL:  The Northwest Young Scholars Foundation is coordinating a Northwest Suburbs Regional Spelling Bee for 7th and 8th grade students. This wonderful family and community event is scheduled for the first quarter of 2010.  

We at the NWYSF expect to promote this not-for-profit event and its sponsors to approximately 20,000 community leaders, parents and children through internet and print.  We would like your organization to become a sponsor of this very unique and worthwhile event. Families and teachers from all over the area will have an opportunity for their 7th and 8th grade student’s to compete and win an educational scholarship.

It’s for the kids but we want to bring value to our sponsors too. You, as a scholarship and event sponsor, will be highlighted on all literature and advertising for this event. But it’s more than advertising: When you attach your name to a community event such as this you will be building incredible Goodwill.

All of our staff and support personnel will be volunteering their efforts to this event so none of your sponsorship dollars will go to administration expenses. 100% of your sponsorship will be directed to the students solely.

Your contribution will positively impact our local children while promoting you as a community leader and a thoughtful advertiser. Because we are a full volunteer organization, the educational sponsorships are very affordable with three levels to choose from: Platinum sponsorship is $1000, Gold $500 and Silver $250.

Please take a moment to consider this worthwhile event and call us today to secure a level. Remember, all your dollars go to the children. We need your support today so that we can start executing the remainder of the events activities.

Gil Kerbashian and Donald Brewer

Directors 

Gil Kerbashian (847) 873-7295

Don Brewer (847) 217-7126

We are currently seeking Prounouncers and other volunteers to help us with this wonderful project.

 

Posted by gilkerk ( General, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, McNeil Financial Group, Lake in the Hills Mortgage, McHenry Home Loans, realestateloans.com, mcneil financial group, (847) 458-8700, Integra Mortgage Schaumburg Illinois, Donald Brewer, Gil Kerbashian, Crystal Lake IL Teachers, Northwest Suburbs Il, Northwest Young Scholars Foundation ) :: Permalink :: Trackbacks (41)