Paul McFadden Mortgage Loan Officer Bellevue Washington Home Loans

Hi all: It's another fabulous evening here. Will it ever end?

I was just reading what books our President is taking on his vacation this year. One of the ones he's reading is John Adams by David McCullough. I too am reading this right now and hightly recommend it. What's remarkable is how our first three Presidents were also involved in our independence; Washington, Adams and Jefferson. What an exciting time to live in.

Other books I've enjoyed lately were by Garrison Keillor, Senator Frank Church's son, "Waiting" ( a book about two young boys who were exiled in China during the Mao years), Three Cups of Tea (about building schools in Afghanistan) and a book about the memoirs of a boy soldier in Africa. I have to remind myself to read more industry specific books too so throw in "Never Eat Alone" by Keith Ferrazzi and "Becoming a Person of Influence" by John Maxwell.

What's on your bookshelf? I wouldn't call myself a voracious reader but try and read something everyday. To me, reading is something we should always be doing. You? Have a nice evening!

Hi all: I'm increasingly inspired by people in my network who give and then give some more. It seems like I'm being attracted (and they to me) to people who are major givers.

What about you? I'm curious what you're experiencing. One of the reasons I love my company so much is the team concept where everyone helps. Granted, there are always a few who keep to themselves. But, generally, my company is doing great because it attracts good, giving people.

Tell me your stories. One of my friends started a "Pay it Forward" group locally. Needless to say, it has grown tremendously and it's exciting to watch. The mantra "How can I help you" is alive and well. I'm personally excited about so many many of us wanting to give. Have a great weekend!

Good afternoon! Once again, we are blessed with absolutely fabulous weather here. This is the nicest summer I can ever remember here in Seattle.

I just finished reading a chapter from Keith Ferrazzi's book "Never Eat Alone". To find out more, go to www.nevereatalone.com. The chapter I was reading was about differentiating yourself in the marketplace. Let's face it, it's getting more and more competitive every day. Keith Ferrazzi's point is you need to stand out.

I often get the question "How are you different?" And I would hope I answer it to my potential clients satisfaction. In my business, some loan officers have positioned themselves as FHA loan experts, for example. This is a start.

Here is what Keith Ferrazzi suggests we do to take our business to the next level.

1) Become an expert in your field. Take the time to read up on your industry and meet with others you deem to be successful to learn from them.

2) Be interesting. Be well versed on a wide variety of topics and offer opinions if appropriate. Keith Ferrazzi related how he often speaks to college kids and, invariably, after his speech they will approach him about his talk. The problem is very few people go beyond the pleasantries and discuss what they actually heard. Be interesting and interested in others.

3) Always be learning. The top people in their fields are always attending seminars, etc. Their breadth of knowledge makes them a person's trusted advisor.

4) Define your niche and stick to it. If you're the FHA loan pro, then be that. I know another loan officer who does a lot of jumbo loans. He is known for that.

5) Have patience. Rome wasn't built in a day. It's all about relationships. And relationships take time to develop.

6) Stay healthy. Let's face it. What we do is a grind sometimes. It's important to take time away to read and reflect before hitting the bricks again.

7) Stay up-to-date with the latest technologies. I'm not saying become a Twitter or Facebook expert. It may not be your cup of tea. But be aware of the new trends. Some of our clients are into this stuff.

So how are you doing? Candidly, I'm on my way. Is there more I can do? Definitely. Will I embrace everything Keith Ferrazzi talks about? Maybe not. But I'm committed to my business and good things are starting to happen. Maybe that's the answer to the question of "how are you different?" Perhaps our passion makes it so! Have a great day!

Good morning! I hope you're enjoying your weekend. I was thinking this morning where my business comes from. It is local. Yes, I can loan in 14 different states and I know some loan officers can loan in more than that. My question is how effective is that? I'm sure I'll get some responses here.

If you're a realtor, chances are you've kept your business local as it is such a hands-on business. For the rest of us, I would argue it's the same. In fact, I would challenge you to look at all the deals you've done this year and see where they came from. In my case, the only out-of-state loans I did were to people who lived in this area with second homes elsewhere.

Why do I like to keep it local? One, I can meet my borrower face-to-face. I like this. We all need to answer the question "how are you different?" I think by adding the personal touch, we can do this. Two, we know our local market better than some other market in timbuktu (I hope I spelled that right!).

So my question to you is your business local? Have you defined where and how your business operates? Let me know if you get a free moment. Thanks!

Good morning: I as well as alot of you here may have noticed that Adjustable Rate Mortgages (ARM's) are suddenly back in vogue. Why is this?

Rates for ARM's have come down into the mid 4's or below for a 5/1 ARM and even less for a 3/1 ARM. Compare this to a 30 year fixed rate of closer to 5.25% and you can see why people might be interested in having a lower payment.

This wasn't always the case. In fact, as recently as a couple months ago, ARM's and 30 year fixed rates were virtually the same. The difference? ARM's adjust with an index (LIBOR in many cases) and that has floated down. Contrast that with 30 year fixed rates which are tied to the 10 year treasury which rose over the last couple months.

So is an ARM for you? Is this a good thing that they're back? It depends. The old rule of thumb was that you needed to ask yourself the question "how long do I intend to stay in my home?" If the answer was for 5 years or so, an ARM often made sense. You should ask yourself the question again. If you're o.k. with an ARM that may adjust up or down in 5 years or so, it might be a good loan for you.

How do I feel about this? I think it's a good sign that the lenders are offering these products again. Sixteen years ago we bought our house and got a 30 year fixed mortgage. We also had the option of an ARM. I believe its important for the customer to have choices. Right now I have two borrowers who will probably do ARM loans for 5 years. In both cases, they're refinances. They will be saving quite a bit of money by doing this.

On the purchase side, it may mean more borrowers qualify if the rate is lower. Is there a danger of returning to the fast and loose underwriting, etc. that got us in the mess we're in? Absolutely, although keep in mind that everything is fully doumented these days and lending guidelines, appraisals are more cumbersome than ever!

So I am personally excited about being able to offer more loan products to my customers. But I'm cautiously optimistic. I don't think anyone wants to return to the day where everyone was approved. Sure, it was good for our pocketbook but what a mess it created. I'm curious what you think of ARM's and their potential return. I realize I may have started a firestorm! Have a great day!