Matthew Watts

Michigan Rural Development Loans: Interest Rate Update

I find that the first hurdle a First Time Buyer faces is getting their paperwork together. I am not sure why, but honestly this simple task dissuades many people when they start to apply. Perhaps following this list and having it ready at the outset will help the process seem smoother.

Last two years of W-2s or Tax Returns. If you can't find them, you can always contact your employer, your tax preparer, or the IRS for a copy.

Most recent month of pay stubs. 1 month worth...the most recent available.

Most recent 2 Months of bank statements. If you don't get paper statements, you can print your online statements, but you will need to take them to your bank to get verified and stamped.

Most recent 401k statement. (If you have one.)

Copy of your driver's license and social security card. The Patriot Act requires us to check these.

Have these items ready to go before you look for a loan officer and DO NOT trust anyone that will try to quote you a payment or interest rate before they even see your basic documentation! That means they are making promises with no intention of keeping them, a true professional will verify your documents and approved you before making an guaranties.

For More Information- Call Today or Visit Our Website:

810-953-4266 or www.iconmortgagelending.com

I thought it would be helpful to provide an online copy of the Borrower's Bill of Rights. This is a form that is required of a lender to provide to a borrower when they apply for a mortgage. If a borrower sees it at all, it is normally at the end of a big stack of paperwork and it is rarely read to them. Below you can peruse at your leisure.

"BORROWERS BILL OF RIGHTS"

1. You have the RIGHT to shop for the best loan for you and compare the charges of different mortgage brokers and lenders.

2. You have the RIGHT to be informed about the total cost of your loan including the interest rate, points, and other fees.

3. You have the RIGHT to obtain a "Good Faith Estimate" of all loan and settlement charges before you agree to the loan or pay any fees.

4. You have the RIGHT to know what fees are nonrefundable if you decide to withdraw your loan application.

5. You have the RIGHT to ask your mortgage broker to explain exactly what the mortgage broker will do for you.

6. You have the RIGHT to know how much the mortgage broker is getting paid by you and the lender for your loan.

7. You have the RIGHT to ask questions about charges and loan terms that you do not understand.

8. You have the RIGHT to a credit decision that is not based on your race, color, religion, national origin, sex, marital status, age, or whether any income is derived from public assistance.

9. You have the RIGHT to know the reason if your loan application is turned down.

10. You have the RIGHT to receive the HUD settlement costs booklet "Buying Your Home"."

You've probably met me face to face and don't even realize it. If not, you've certainly seen my cards pass through your office in the last six years. I'm the guy that was in your office with a smile, a free pen, and a Rural Development (RD) loan flyer. I'm here again to tell you why you need to find yourself a great RD loan officer to refer client to.

RD eliminates the most common deal killer. "Cash to close" kills more deals than anything, I am certain of that. Whether it kills deals in process or stops potential buyers from proceeding, the money a buyer has to bring to the closing table is the biggest obstacle in Michigan. RD eliminates this by allowing your borrowers to finance closing costs even above normal LTV guidelines. We don't need concessions to achieve stress-free financing for buyers.

RD has no down payment requirements. RD sees other ways to protect their own investment, but for most Michigan borrowers these requirements are not an issue. The last 100% financing available is Rural Development.

RD is set up for a first time home buyer. First time buyers ARE our market right now. They control our business, or at least mine. RD truly is for first timers. RD understands limited credit history- something FHA and Conforming just don't seem to get. Fannie loves someone overextended to the max that has never really paid a bill. TONS of credit elicits approvals with other financing. Why do we have a crisis again? Oh, yeah.

RD would rather see someone that isn't in a position of failure. Buyers that can't seem to qualify elsewhere because of this, but want to own a home...they will fit with RD.

RD is available in far more areas than you realize. I know it seems weird but look at Fenton. Fenton is a huge town with far more "metropolitan" area than Flint, yet everything in the 48430 qualifies. Really anywhere except inside Flint and downtown Grand Blanc qualifies. Go Fig!

RD has the absolute best interest rates. I've had Realtors tell my buyers that I could not deliver on the rate I quoted; only to have the buyer laugh all the way to the bank. I've had to show Realtors how I could deliver and end up with undying allegiance.

This is about the buyers, thought. FHA, Fannie, Freddie, MSHDA are like jokes next to RD. Granted, RD only finances certain geographical areas, but they dominate the areas they finance.

The final word. Try it once and you won't go back. Non-believers become believers. Find yourself a good RD loan officer and try them out. Your clients deserve to know what a great deal they can get, and MORE IMPORTANTLY those buyers that got turned down by Dort Federal, Citizens, and Mclair deserve to have a chance at financing that doesn't rely on their archaic guidelines!

For more information: Call Today or visit our website:

810-953-4266 or www.iconmortgagelending.com

Proceed with Caution: The weirdest part of talking to people about their loan experiences is that people usually are more particular about their Realtor than their Loan Officer. In reality, your Loan Officer is responsible for ten times more than your Realtor, especially in a foreclosure transaction.

They will be digging through every aspect of your life; they are exposed to some of your most sensitive information. They are responsible for organizing the entire transaction from open until close. Most importantly, this is the person that represents you, and your application to the powers that be, so you need to believe in them to portray your strengths and represent you well.

This is also a good time to realize that cheaper rarely means better. A good bit of advice I would give anyone...choose wisely, make sure your Loan Officer is making as much as your Realtor, and demand excellence.

Interview with a Vampire. No, it's not that bad. Actually the vast majority of bad loan officers and bad lenders are out of business or are being sued, but you need to do a thorough interview with anyone you may hire to represent you. Always ask the following questions.

How long have you been in business?

How many loans do you close each month?

Have you done a foreclosure purchase before? How many?

What type of loan is your specialty? This should be one or two, not many.

Where do you get your clients from? Someone that gets referrals from Realtors and other professionals, may be better than someone that just answers the phone at a bank...just and opinion.

How do you get paid? How much will you get paid? Someone that dances around this...whew you'd be hard pressed to convince me to use them for anything.

What do I need to pay at closing time?

If what I need to bring to closing changes, who will be responsible for paying it? Why?

When will you lock my rate, how often will you update me? *This is important because a foreclosure purchase will usually take close to or more than 30 days to close and fund. It is generally impractical to lock a rate for more than 30 days, and any good loan officer will update you when rates change and give you the option to chose when to lock while advising you based on market trends.

Are you available to me outside of banking hours? Most of you are working people, and the banking system is setup during to function 9-5. It is important to have contact info and know that your loan officer is available to answer your questions at any time, otherwise you will end up a very frustrated individual. It is best to test this theory right out of the gate by calling after hours and expect your loan officer to either answer the phone or call you back within an hour or two.

The final word is to keep a positive attitude, recognize that most likely the effort is worth the reward, demand excellence from those you pay and pay those you demand excellence from.

For more information, go to our website or call us today:

www.iconmortgagelending.com or 810-953-4266