Jeff Pearl

Glengarry Glen Ross (1992) – A film about a real-estate office and its strict incentives for its salesmen to close leads, leading to corrupt behavior.

First prize for salespersons is a Cadilac El Derado, ( do they still make those?) 2nd prize is a box of cheap steak knives, 3rd prize is being fired.

Has anyone ever seen this movie? Why does it sound like it could be a true story in todays market and real estate atmoshere? Has anyone else noticed an increase in agents being more rude, pushy, and unethical during 2011? Just saying!

http://www.imdb.com/title/tt0104348/

Jeff Pearl / REALTOR

jeffpearlhomes.com

(703) 727-4876

RE/MAX Distinctive is Licensed in VA, MD, and DC

Equal Housing Opportunity Provider

FHA may need to rase it's mortgage insurance premiums again if econmy slows. FHA reserves have fallen 45% in the last year. The program is mandated by Congress to keep a certain % of reserves. In other FHA news, FHA received Congressional approval to expand its loan limits in high cost areas to $729,750.00. The change is not official until printed in the Federal Register. FHA monthly mortgage insurance costs for borrowers doubled in the last year to help the agencies reserve fund.

FHA borrowers with credit scores of 620-639 must now meet additional requirements. Borrowers must have 25% or less payment shock over their current housing expense, 3 months of payment reserves from own savings, and not more than 45% debt and payment ratio. FHA loan rates for borrowers with credit scores between 620-600 are priced slightly higher that credit scores above 660. Investors are continuing to strengthen mortgage security quality in light of deliquency and default factors.

MORTGAGE ACTS and PRACTICES DISCLOSURE

This communication is provided to you for informational purposes only and should not be relied upon by you. RE/MAX Distinctive Real Estate Inc. is not a mortgage lender and so you should contact any lender of your choice directly to learn more about it's mortgage products and your eligibility for such products.

Jeff Pearl / REALTOR

jeffpearlhomes.com

(703) 727-4876

jeffpearlhomes@gmail.com

http://youtu.be/8giYyUaP15U

Copy and Paste above link into your browser for a good laugh! ( 2 minute video) How many buyers like this have you worked with? Unfortunately, this is exactly how many people think.

Points of Interest for You and Your Clients

Legislators passed restoring the FHA high cost loan limits to $729,750, however conventional loans through Fannie Mae and Freddie Mac will remain capped at $625,500. This is a big help for those buyers who will not qualify for the tough non-conforming guidelines. This move will create additional sales in those upper price ranges. The changes will need to be published in the Federal Register before they can be official.

MORTGAGE ACTS and PRACTICES

DISCLOSURE

This communication is provided to you informational purposes only and should not be relied upon by you. RE/MAX Distinctive is not a mortgage lender and so you should contact ________________ or any lender of your choice directly to learn more about its mortgage products and your eligibility for such products.

And how many contingencies does your lender pre-approval letter depend on?

I plan to attend another lender workshop in Fairfax VA tomorrow evening in order to keep up with the changes in the industry, and to see first hand what some of my favorite loan officers actually do to pre-approve buyers. I like to know, that when I submit an offer for a buyer, that the lender letter is as strong as possible. And I want other agents to know, and to remember that the buyers I am showing their listings to are pre-approved with a strong lender letter. Sometimes that is more important to a seller than a higher offer with a weak lender pre-approval letter.

"Agency (Fannie Mae and Freddie Mac)automated loan approvals also provide home value estimates. If the actual appraised value exceeds the agencies estimate by over 20%, the lender may require a desk review of the appraisal to confirm a solid valuation. Agency automated systems also review appraisals reports for deficiencies.

Cash reserves are a big deal for non-conforming loans over $625,500. These loan programs may require 6 months of payment reserves for loans up to $1 million and 12 months payment reserves for loans over $1 million. They may also require up to 6 months of reserves for the payments of any additional properties owned. If the mortgage payment is doubling, “payment shock”, reserves can go to 9 months for up to $1 million and 15 months for loan amounts over $1 million. Recent sales news implies that the upper priced property market has slowed since the $729,750 limit expired in October. There are legislative negotiations going on now about extending that limit in high cost areas like the metropolitan region.

I am holding a “Loan Application Workshop” in my office this Tuesday evening November 15^th from 6PM-8PM . I will be following the standard application (1003) from start to finish with helpful information on each section. I will explain documentation of income, credit, assets and liabilities and tie in the current lender requirements for conventional and government programs. This workshop will prepare a home buyer to make a successful mortgage application towards a home purchase. Realtors and perspective buyers are invited to attend and an RSVP is requested."

Jeff Pearl / REALTOR

RE/MAX Distinctive / 703-727-4876 / jeffpearlhomes.com

Equal Housing Opportunity Provider