Michael Rohde

"You can't get a close done in 30 days" I've been told. This statement has been made to me time and again from some of my friends at some of the larger bank owned mortgage companies. I want to share some quick tips that can help move things along smoothly and eliminate heartburn at the closing for your clients, real estate partners and you.

I know that getting a loan done in 30 days or less can sometimes be a daunting task. There are many factors to consider as to why the lending process can get bogged down. I'm a mortgage lender in Tucson Arizona and thus have been in one of the five or so states with the highest numbers of foreclosures and short sales. Those aren't normally 30 day transactions are they? Although Tucson suffers from the same ailments troubling many other cities it's not hard to speed up the process on the loans that are not shorts and REO's.

These steps may seem redundant but like anything else worthwhile in life, repetition becomes practice.

1. Take a complete and I mean complete application. Get phone numbers, addresses, two year work and residence histories, REO section complete, child support etc.

2. Documentation: If you have been an LO for a while, you know what you need, GET IT FROM THE BORROWER. When in doubt get it anyway. In this market of extreme documentation, get what you know you will need, don't push it off till down the line. That's when problems can happen.

2. Make note of any special circumstances as soon as you know about them. Don't pass it off and hope your processor will catch them. Handle them up front.

3. Develop an excellent rapport with your clients. Be up front with them and let them know that through the process we will most likely need a few items that may not be known up front and that you'll let them know as soon as you know what else is needed.

4. Inform your Realtor partners when you see red flags on a file up front at the pre-qual. This is not a popular one because some of our agents don't like to know the details, they just want it done. Truth is times have changed and if your agents are like that, you can get in some hot water by trying to please them, leaving the details out then getting that one condition that bites you near closing. Your agent would have rather known before that moment I can assure you. Point out the problems.

5. Make it easier for your underwriter to get comfortable with your file. Supply all your explanations that you know you will need, derog credit, job gap, credit inquiries, special job circumstances, special pay circumstances, etc. as fast as you can. Whether a mortgage broker or banker, underwriters like complete files. The more complete on their first look the more likely they are to give you a favorable decision assuming your file merits one.

The Realtors I work with know that I am a little cautious. Maybe that's not a good thing to some but at the end of the day I only work with agents that understand that I can't just plow a loan through with wreck-less practices, be a yes man and cross my fingers that my 579 score borrower with the 5 jobs in two years, an 8 month job gap in between, a gift for down and $5 in the bank is a no brain er. We gotta talk!

With tighter practices we can still close loans in 14 days to 30 days for clean complete files. More is required of us than ever before but the end game is completing what is asked in the most timely way possible for our clients, referal partners and ultimately us.

Good Luck out there,

For information on how I can help your buyers or sellers contact me:

Michael A. Rohde

SR. Loan Officer

Sunstreet Mortgage LLC

520-971-6353 Cell

Mrohde@sunstreetmortgage.com

I was reading a post a colleague of mine wrote and it reminded me of something that happens all to often in lending. That darn Investment Property/ Primary Residence/ Second Home game. You know the one I'm talking about, the client is going to buy a home that is to close to their primary residence to be a legitimate owner occupied property or they are going to move into it after they fix it up but in reality they are not going to do that they just want to avoid paying higher rates or fees or they are stepping down in square footage and value to a fixer upper and moving into that home and will sell their other home later, yes that game.

Here is a solution: JUST PAY THE POINTS! Truth is a lender is guilty of fraud for knowingly representing a properties use for something other than what it is really intended to be used for. If you are flipping a property or your client may be flipping a property then use the highest rate you can to avoid paying any points if possible but if you are holding it rental income for several years have your lender factor how long it will take to recapture your costs compared to the reduction in rate for paying points.

Second solution is to factor the points into the deal. On investment property the seller can pay up to 2% of a buyers closing costs. Since you are negotiating a deal, try to negotiate the points as well. Ask the seller to pay the 2%. It's a real help and may take some of the pressure off you to play the game. The game of investment property/ Primary Residence / Second Home. That's one game I can do without. I hope you can too.

Call me for help relating to any home lending questions.

Michael Rohde

Sr Loan Officer

520-971-6353

mrohde@sunstreetmortgage.com

Here's the scenario: You have a listing for sale and unfortunately not too many prospects coming to look at the home. Your seller comes to you and asks why no one is calling and what you plan to do about it. Could you have missed something in your interview with the seller. It's not really your fault.

Most Realtors have basically placed Seller Carry Back Financing on a shelf because lenders all but buried that option. In fact Fannie Mae guides use to prohibit the use of seller carry back financing relegating it to the evil sub prime lending channel. Times have changed and this option is on the table with some lenders.

So do yourself a favor and ask your sellers or potential sellers if they would consider carrying back a piece of the mortgage. The worst they can say is no but if they are willing to carry back some amount in the form of a second mortgage at a nice rate of return you will be the person behind the curtain there to solve their problem.

For more information on what to ask your seller or next listing appointment e-mail or call me.

Michael in Tucson

Michael A. Rohde

Sunstreet Mortgage LLC

520-971-6353

mrohde@sunstreetmortgage.com

I read a lot of information relating to how the housing market is still tumbling down and as many in Real Estate have said, "it's all local". We really don't know where the bottom is until we have lifted off towards recovery.

There is nothing wrong with being a realist on the subject. I know that there are a new wave of foreclosures coming, I know the Government isn't going to continue to buy up Mortgage Backed Securities forever and I know that unemployment is a variable whose impact we won't be able to gauge yet.

With all that in mind I am still an optimist. Home prices in Tucson have started to show signs of stabilization in the lower price ranges particularly under $200,000. The next wave of foreclosures will get absorbed just like the current wave has been. Our listed homes have declined to around 6000 or so.

There are more indicators that point to a recovery in the housing sector than in a lingering depression. Time is always the determining factor. Given enough time, we will get off the bottom. I think we already have.

What can I say, I am an optimist.

Mike Rohde

If you're a REALTOR today is like any other weekend day, it's time for your Open House. As a lender I sit open houses from time to time. Sometimes it's with agents whom I have worked with that may have a hot listing, and sometimes it's with a newer agent who would really like to have me there to answer questions of potential prospects coming through.

One of the major mistakes I see when I go to a newer or even sometimes seasoned agent's open house is the fact that they are uncomfortable asking everyone who walks in the door to sign the book. They will just let a prospect walk through and say to them, "Let me know if you have any questions". When the prospect finishes their walk through they start heading toward the door, of course without prodding there are usually no questions. Then the agent will say, "Thanks for stopping by" as they wave.

It is imparative that you make them sign in. You are taking your valuable time and effort to set up the open house with the sole purpose of hopefully using that lure to catch a prospect who is not tied to another agent and is perhaps looking to buy or sell a home. Prospects know, or if they don't you will educate them, that you are not there to just hang out. Think of not signing in like using a fishing net without the net. You can't catch any fish that way unless they just jump in the boat.

As a lender sitting that open house, I like to send thank you cards, just like you do, to the prospects who come by. Nothing may come of it but I will never know if there is nothing but a blank sign in sheet or only the names of agents who have stopped by to preview.

Some quick suggestions if you are shy or uncomfortable asking prospects to sign in at your Open House:

1. Meet the prospects at or near the door when every possible.
2. Have your sign in book at or as near the door as possible and ask that they sign before entering.
3. Explain to the prospect that the seller wants to have a record of all traffic into their home. You can use this to take pressure off you and put on the seller. That prospect may appreciate your diligence when you eventually sell their house. (They may have one to list, you don't know yet)
4. Continue to ask your questions, but do ask, don't just let people wander around if you have time to ask questions (Remember fish don't jump in the boat very often).

Remember, the reason you are there is to promote that home and the fact that you can show any other home requested. Some people won't like a stronger approach but they were never going to buy anyway. But more than 50% will buy or sell a home within the next 12 months. Use the net, it works better.

Good Luck out there.