Justin Williams - Loan Officer

The Beautiful Thing about FHA loans

FHA loans are truly unique because every Loan is different There are guidelines that we follow in submitting the loans but the bottom line is that every loan submitted gets a chance to be looked at by the overall big picture.

The Big Picture

Myths are out there that the Underwriters are out to find ways in turning down every loan out there thats not picture perfect. This is far from the truth, the underwriters are just trying to grasp the big picture on every loan and determines the customer ability to repay the loan.

For the loans that are difficult or have a lot of "Headache" issues like previous collections, financial hardship, inaccurate credit discrepancies, there are certain KEY elements that underwriters will need to help approve the loan.

• Credit Explanation Letters: - These letters help paint the big picture for the underwriters to determine the overall credit picture. These letters range from explaining the past 90 day inquiries to collection accounts.

My Story

After reviewing and probing a client about her past collection accounts, I ran her application through my automated approval decision.

The loan came back approved but with the following stipulation, A credit letter explanation regarding the past collection accounts.

When I told my client about writing one up, she replied back "Why? I couldn't pay off those medical bills at that time so it went into collection, its simple" "...besides I already explained this to you, why do you need it in writing?"

As you can tell I was completely shocked at this point......

Help Me Help You

Just like in the movie "Jerry Maguire" Jerry the sports agent calls out for help from his client Rod Tidwell to help Jerry be successful in turn making Rod Successful.

Like Rod though, often our clients have high expectations and are particularly pertinacious.

As an expert in the business, we are your passport in getting your loan approved to the Underwriters. We are your voice, support and ammunition.

How can we help you if you don't help us?

Help Me Help you by....

• Address any financial hardship - We are not here to offend you by bringing up past credit mistakes. Help Me by providing as much information regarding these past events and this will Help You by showing the Underwriters that you were accountable for the mistake but have learned from it and correct it as of now.

• Displaying a proven track record - If you don't have any current trade lines that you can show as part of your repayment ability track record, then Help Me by gathering data to be used for Non-Traditional Credit trade lines like your phone bill or cable bill. This will Help You show the underwriters that have a proven ability to repay loans.

• Providing as much as you can - There is an old saying in underwriting the more proof and documents you can deliver the better. If we are trying to overcome a debt to income ratio borderline by showing that your auto loan is being paid from another party, Help ME by gathering as much documentation to show proof of this, this will Help You speed up the loan process quicker and not delay it further.

If you ask me "Show me the Money" I will show it to you after you "Help Me Help You" :)

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As always thanks for checking out my blog, feel free to leave a comment and have a great day!

Just-In-Time's Loans

Back when times were normal

Rewind about two decades ago and we were accustomed to double digit interest rates on mortgages. Now a days people will cry FOUL if they were ever quoted a double digit rate on a mortgage. Back then though it was completely normal.

There was no such thing for 100% financing (For the average home buyer) People were accustomed to SAVING up 20% to put down on the house.

Again, now a days you tell a future home buyer you ask the home buyer to put 20% down, they will laugh and will find another lender.

It was the NORMAL back then for that frame of mind. It was an actual good frame of mind, to have 20% invested into your house, maybe not the double digit rate but if you had 20% invested in your home, you will be trying your hardest to keep your payments on time.

Un-Forseen events causing more renters recently

With the increase in foreclosures and more homeowners that can't afford to stay in their current homes due to financial hardship, job loss or mortgage payments. People are resorting to renting once again or even staying with family and friends while they try to get back on their feet.

It's not the end of the world

So you find yourself back at square one either renting or staying at a family/friends house. It's ok, it's not the end of the world.

Michael Jordan once said "If you're trying to achieve, there will be roadblocks. I've had them; everybody has had them. But obstacles don't have to stop you. If you run into a wall, don't turn around and give up. Figure out how to climb it, go through it, or work around it. "

Things happen and although we may not like it, it will happen. There may be humility involved, disappointment, or even fear which is all normal. Take it in stride, things happen for a reason and look not at the past but to look forward and focus at the present and future in mind than going backwards.

Believe it or not, there is light at the end of tunnel and heres how and the steps to get back on your feet.

Re-claiming your future home ownership

Just because you don't have a mortgage payment to maintain, you still have to make sure your finances and credit is in good shape.

• Making Rent on time - Just because when your rent it doesn't get reported to the credit bureaus, it does not mean to start SLACKING on making payments on time. When you apply for a new mortgage, Lenders often look at your ability to repay the loan by examining your last 12 month rent history.

• Extra Cash Flow - So you gotten some extra cash flow coming in now due to either downsizing to a lower payment than your used to or even renting free with your family, don't waste your extra income source by thinking its more for you to spend. Be smart and start putting the extra income to a savings account and start by building your Reserves and Assets which are critical to applying for a future loan.

• Foreclosure Impact - Don't let the "F" word deprive you of all hope. If you had a foreclosure, its in the past and a mistake we can learn from. This is the most crucial time to start building a consistent track record of ability to repay a future loan. Don't wait and start making timely payments now! In little as 12 months paid on time payments can secure you a new mortgage in no time.

• Bankruptcy Impact - You just filed a chapter 7/13 bankruptcy and feel like you washed out all your outstanding debts, don't become over zealous and start racking up new credit lines, you went into bankruptcy for a reason and need to practice a new "B" word...."BUDGETING". Learn from your mistakes start off small with a few low limit credit cards and build a track record.

• Do your homework - Analyze the main reason why you got yourself in this position in the first place. Was it because of an Adjustable Rate Mortgage? A no documentation loan ? Divorce ? Job loss ? Pin Point the exact weakness that made you lose your house and find a solution to fix it for the future!

The Future

Don't view this is a closed door, as the saying goes "As one door closes another door opens" things happen for a reason, and learn from your mistakes and take advantage of it for your future judgments and actions. Best of luck in getting back on track and hopefully you will be once again a future homeowner.

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As always thanks for checking out my blog, feel free to leave a comment and have a great day!

Just-In-Time's Loans

My Earth Day Support

Well to help celebrate this Great day called Earth Day, I wanted to share a tip to all of us in the Real Estate Business. Even though this tip may be small, any effort to help with Eary Day's Main Vision will help tremendously!!

Before I share my tip, I wanted to recap what Earth Day is all about.

Earth Day Vision

definition from www.earthday.net :

Founded by the organizers of the first Earth Day in 1970, Earth Day Network (EDN) promotes environmental citizenship and year round progressive action worldwide.

Earth Day Network is a driving force steering environmental awareness around the world.

Earth Day is the only event celebrated simultaneously around the globe by people of all backgrounds, faiths and nationalities. More than a half billion people participate in our campaigns every year.

Our mission is to grow and diversify the environmental movement worldwide, and to mobilize it as the most effective vehicle for promoting a healthy, sustainable planet. We pursue our mission through education, politics, events, and consumer activism.

Heck Earth Day is so popular even our friend Google supports it with this picture here on the Google's search page found today.

My Earth Day Idea to help promote "Green Awareness

Everyone of us involved in Real Estate knows how monstrous paperwork can be involved on a daily transaction. Even the closing paperwork involved scares the living day lights out of trees every day.

How many times have we waste paper by printing out documents, faxing documents to produce more documents, receiving fax confirmations etc.

Let's start using E-fax by E-faxing documents to our e-mails which in turns turns the fax into a PDF document you can easily e-mail or save.

If you don't have an E-fax you can sign up FREE for a fax number and if you want a local or toll free fax number you can upgrade. Sign up for an E-fax located here

Let's go paperless!

My solutions

• A customer wants something faxed - I ask for an e-mail address, so I can E-fax myself and send them the pdf
• I E-fax myself to prevent future paper trails and unnecessary storage so I can Recycle the paper I will not be using

These small solutions with E-fax can make a big difference, lets go paperless, lets go green!!

Have a Great Earth Day!!

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As always thanks for checking out my blog, feel free to leave a comment and have a great day!

Just-In-Time's Word on the Web

Is there a strong military presence in your area?

I grew up as a Navy brat in Virginia. My father is a retired Command Master Chief in the Navy, the highest rank you can get being enlisted. So I respect the Military, The area I live in has a strong military presence.

I am located in the Hampton Roads area in Virginia, Hampton Roads is the world's largest naval base. The Navy owns 36,000 acres and more than 6,750 buildings in the area. There are some 108,000 Navy and Marine Corps personnel stationed in the area, and the Navy employs more than 41,000 civilians.

There are more than 23,000 retired Navy men and women living in Hampton Roads, and approximately 118,300 dependents of active duty, and civilian personnel. The total Hampton Roads Navy community numbers some 318,000 people. The military brings in over $11 billion into the local economy annually.

What does having a strong military presence have to do with Real Estate?

The obvious fact is there is a lot of military relocation coming and going in this area. We locals like to joke because it's rare to see a local that calls them a native to Virginia Beach.

So we have a lot of the military constantly buying and selling houses, the perfect companion to this is the perfect financing for military personnel and their families.

Va Mortgage - What is it - Who Qualifies

The Department of Veterans Affairs (VA) guarantees loans to help qualified veterans, reservists, and active-duty service members to finance their homes. Refinance or Purchase.

The VA loan allows veterans 100% financing without private mortgage. A VA funding fee of 0 to 3.3% of the loan amount is paid to the VA and is allowed to be financed.

You can apply for a Certificate of Eligibility by filling out a governmental form called the VA Form 26-1880, Request For a Certificate of Eligibility For Home Loan Benefits.

Check with your lender if you don't know if you cant find your certificate, they can quickly process your request and find out if you are eligible for a VA mortgage through a system called ACE

VA Mortgage Highlights

Many lenders are restricting LTVs and LOAN amounts right now with FHA and VA loans. Check with your local lender to see what their guidelines are.

VA is Still alive and kicking with my company as many lenders are tightening up

• No Minimum Credit Score still for VA Mortgage (Check with your lender, my company still validates this)
• 100% Financing still
• 100% JUMBO FINANCING still (We are the only lender in this area still has this!!!)
  
• NO PMI
• Flexible income, debt and credit requirements to help borrowers qualify
• Down payment and closing costs that may be funded by a gift, grant or secured loan (DAP still accepted and with our company can still accept up to$40,000)
• Rates are usually lower

I just rate locked a $629k VA Jumbo loan at 5.5% Friday, don't overlook VA rates :) *check with your lender for rates*

Don't overlook VA mortgages

So I always ask my customers if they are VA eligible first, because VA is still alive and kicking and pretty much the only true 100% program out there still.

Don't forget just because FHA might be hot right now, VA Mortgages should not be overlooked.

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As always thanks for checking out my blog, feel free to leave a comment and have a great day!

Just-In-Time's Loans