We had a client referred today from a real estate agent who had been driving a buyer around for 3 weeks. The buyer was prequalified by a local bank loan officer.
The client said the loan officer had called and said they needed to have a sales contract today and to lock today because the program that allowed the client's credit score was going away today.
The agent asked if we could help, because they could not find a property today. They have been looking steadily for 3 weeks, but had not found a property yet.
We talked with the client to understand what the situation was. Their credit score had been 612. They were looking for a Rural Development loan, 100% purchase. They had followed their loan officer's advice to improve their credit, while they looked for property.
Our loan officer asked questions about their employment, their income, their debts. Satisfied that maybe we could help, she pulled credit.
The 612 score was gone, dropped.
The client has failed to tell us about a $500 car payment that actually put their debt ratio well over 65%. The client's husband is just out of bankruptcy and will not qualify for the loan.
The fact though is that the client was never qualified. The program that ended today, that supposedly allowed Rural Development loans below 620 credit scores, did not matter. The client's debt ratio was too high, yet the previous loan officer had issued a prequalification letter. Based on that prequalification, the agent and the hopeful buyer had spent 3 weeks looking for homes.
BTW, the advice given to the client to improve their credit - pay off an old tax lien. The client borrowed from a finance company to pay the lien. The lien has not updated, but when it does it will probably reage the reference and further lower the score.
As it is, the new finance company debt has already lowered the score.
And no underwriter has reviewed the file.
This loan officer has wasted the agent's time and gas and has left the client in worse financial shape with bad advice.
What is a real estate agent to do?
What is a buyer to do?
This was a loan officer from an established bank.
Pick your loan officer well. Require that your loan status be fully explained and you know what has been done, what still needs to be done, and why are we waiting?
Here is a checklist with some information that I hope will help:Homebuyer Help
The NAMB has announced that it will testify before Congress Thursday, October 8, at the House Subcommittee on Housing and Community Opportunity.
Expected time is 2pm. Some of the major points in the prepared statement are:
The statement points to findings from "A 2005 independent study conducted by economists at three major universities concluded that broker-originated mortgages are less costly to the borrower than lender-originated mortgages."
The NAMB prepared statement does not mention lender paid premiums. This is an developing issue in which regulators are threatening restrictions that I think will limit consumer choice and make mortgages more expensive. This issue is still in the comment phase with the Federal Reserve. I understand that the NAMB comment is expected in November.
Here is a copy of the the prepared testimony.
Here is a link to hear the testimony.
The NAMB is working hard in the face of massive new regulation and legislation. Their efforts to boost our industry and to protect the consumers access to affordable home financing is worthy of our support.
I was reading a book on astronomy recently and found it difficult to visualize all the various relative 
motions of the Earth, Sun, Moon, other planets and stars. When I went outside to try to work the motions out, skywatching became much more than interesting. It has become a new hobby.
Seeing the moons of Jupiter is probably what hooked me. When I first saw the planet, I had only guessed it was a planet because of its brightness and its appearance in the telescope. I had heard that the moons were visible, but did not see them the first night. So I did not think it was Jupiter.
Checking the next night though I saw the 4 visible moons. Wow! Neat!
There they are. Watching them rotate from night to night is just too much.
This is a photograph, off the Internet, of Jupiter and its 4 Galilean moons, not my own picture. But it is exacly what can be seen. The moons change positions each night.
I have found Mars, in Gemini. Identified numerous individual stars. Seen Venus. Mercury and Saturn are in the east sky in the morning. I have seen one of them, not sure yet which. I think Saturn, but will watch for confirmation as it moves daily.
Each night and morning there are new things to see and to observe.
We have had several days of rain and heavy clouds which have limited my viewing, (See Julia Odom's post My buyer's house is flooded) but the clouds seem to be leaving this morning.
So a great night to watch the sky. Can't wait.
It is time to visit the Clarence T Jones Observatory, right here in Chattanooga. A place I have never been.
My favorite radio station is the local NPR affilitate, WUTC. The news, the music, the features just make my 
day, every day. They play the absolutely best music and with great variety. The news I count on is from WUTC, both local and national.
This month is their semi annual fund raiser and it is being conducted in conjuction with their
25th year celebration.
Public radio has long been a consistent and reliable source for balanced and indepth news coverage. Every program is flat up to date. I always learn something new about the bigger stories, but also about the important stories that are not front page.
With so much concern now about the profitability of for-profit news outlets, especially newspapers, the public stations may offer the best business model.
Funding for news is a real concern, especially in light of the free, easy access to news on the Internet. How will it be paid for in the future? Listener supported stations may give the best solution for coverage and information that is indepth and broad.
Add in the music, local news, features. Public radio provides a big bang for the buck. You can make a contribution or a pledge here.
WUTC - one of the great benefits of living in Chattanooga.
Encouraging news on home sales from Zillow and from S&P/Case-Shiller.
Median list price reported by Zillow - Equal number homes listed above and below.
|
Area |
Month to Previous Month |
Quarter to Previous Quarter |
Median List Price |
|
US |
-0.4% |
-0.4% |
$219,000 |
|
Tennessee |
Even |
-2.3% |
$169,900 |
|
Chattanooga |
Even |
-5.7% |
$149,900 |
|
Cleveland |
-1.1% |
-6.3% |
$149,900 |
|
Georgia |
Even |
Even |
$179,900 |
|
Dalton |
Even |
+3.9% |
$129,900 |
"The S&P/Case-Shiller Home Price Indices measures the residential housing market, tracking changes in the value of the residential real estate market in 20 metropolitan regions across the United States."
This index has been tracking the steady decline of home prices since the peak in 2005-2006 to the present. The quarterly decline in home prices from the 2nd Quarter 2008 to the 2nd Quarter 2009 was 14.9%. The positive sign though is that the 2nd Quarter 2009 shows an increase over the 1st Quarter 2009.
This is the first reported increase in three years, and as such is significant. The question remains though if the increase is a function solely of the incentives for home purchases: the tax credit, the historically low rates, and bargain prices. Is this sustainable?
Here are the percent changes from the S&P/Case-Shiller report for the two closest metropolitan areas.
|
Metro Area |
June to May Change |
First Quarter 2009 to Fourth Quarter 2008 |
June 2009 to June 2008 Change |
|
Atlanta |
1.5% |
0.5% |
-13.7% |
|
Charlotte |
0.7% |
0.9% |
-9.6% |
Senator Bob Corker spoke to local REALTORS® this week that extending and expanding the tax credit is a possibility in the upcoming session, but the real issue is if the results of the stimulus are enough to end the price declines that have hindered the normal functioning of the market.
Foreclosures remain a problem as also unemployment. These combine with other factors to keep inventories up and the number of potential buyers down.
These positive numbers though indicate the stimulus is producing the intended results of increases sales, reduced inventories, and as shown here stable or increasing home prices.
 |
|
|
The right Home Loan for you. American Acceptance Mortgage. Chattanooga, TN. Conventional and government home loans and mortgages in Tennessee, Georgia, and Alabama. Purchase, refinance, renovation.
Home purchases and home refinances for Tennessee, Georgia, and Alabama. The right real estate loan for you. That is 
what American Acceptance Mortgage is all about. Each mortgage loan officer at American Acceptance is focused on providing the service you need. I have over 20 years experience as a mortgage loan officer. We have been making mortgage loans in Chattanooga, TN since 1994.
We know real estate finance. And we provide top service to each locality in our 3 state service area of Tennessee, Georgia, and Alabama.
Purchase Loans - We offer loans designed to keep your down payment low. These include conventional, FHA, VA, and Rural Development loans. We participate in the FHA approved down payment assistance programs and other nonprofit grant programs. By offering loan programs from several top national lenders, you can be sure that you can get the best approval terms around. Our promise is to get you to the closing table on time and with no surprises. We have real estate agent contacts in every area and can recommend agents that provide you with excellent service.
Refinance Loans - Understanding your refinance objectives is critical to obtaining just the right loan terms. Making certain that your goals are achievable before we even begin the process saves time and money. Working with me means that you will be fully informed at each step of the process.
Construction Permanent - With builders finding construction lines getting tight, experienced construction permanent lending is needed to get you your new custom home. We offer construction permanent loans through 5 different national lenders. This means that you get to choose the best options for you - fees, draws, construction interest, permanent lock in terms.
FHA Renovation - In today's market, you may find that a renovating your home is a good option. With an FHA renovation loan you get excellent terms. Also the FHA loan amount calculations typically allow you to receive more money for your renovations, meaning that you may very well get all the work you want.
If you are interested in a government loan, FHA, VA, or Rural Development, go to an experience lender. We have offered government loans since 1994. Our lender relationships and experience will make a difference for you. We close many loans that others cannot.
We are experienced with HUD foreclosures, and working with other foreclosure companies.
Relocation is made smooth with our local contacts and use of internet technology - secure online applications, toll free fax number, secure website user accounts, daily status reports, and the informative lock recommendation. Your move will be the happy experience it should be, because you will not be worrying over the financing of your new home.
Local focus - you can find ready resources to learn about the local communities in our service area.
Credit repair - You will not find better credit consultation anywhere. If you need professional assistance to repair your credit, you will know exactly what they need to do for you. For the most part you and I can work through credit issues. We even offer a service to help you build a credit file from scratch.
American Acceptance Mortgage, Inc
Home Office
I am active with the Red Bank Lions club and have served serveral terms on the board of my church, the Chattanooga Community Kitchen, and the Episcopal Commission of South East Tennessee. I am active with the Chattanooga Chamber of Commerce, and serve proudly as one of their ambassadors.
Currently, I am a committee chair with the Women's Council of Realtors, a member of the Chattanooga Association of Realtors, the Home Builders Association of Southern Tennessee, the mortgage brokers association,and the mortgage bankers association.
My goal is to WOW you.
We specialize in FHA, VA, and Rural Development mortgage loan programs. We offer these programs along with the traditional conventional mortgage programs. We are experienced FHA lenders, with proven results in credit repair and credit building. We take pride in serving our customers and have developed excellent reputations and relationships with our lender partners.
My real estate agents know they receive my full commitment and the commitment of my staff. I stay fully accessible. I return phone calls. I tell the truth. My clients and partners are kept fully informed of the status. My experience both as a mortgage loan officer and as a mortgage lender helps me to identify potential loan approval issues early in the process. This allows my clients to have right expectations about their home financing transaction. I know the financial goals of my clients and work hard to develop a lasting relationship with them.
Recently I have become involved with the Chattanooga Office of Multi Cultural Affairs. This is a group of local 
professionals from government, private, and industry entities who are working to educate consumers and businesses about discrimination and minority opportunity. I am very excited about this effort as a way to increase home ownership potential in Chattanooga.
Credit repair and credit building have become increasingly important in today's market. We have demonstrated results for many of our clients in helping them improve their credit histories without using for fee credit repair companies. In fact, we have been helping our customers with their credit for several years. In today's market, good credit management can have a significant impact on loan approval and loan terms. We are credit management experts, and we take the time to review, explain, evaluate, and advise.
FHA home loans have always been a specialty of our company. Even when FHA was losing market share to subprime and Alt A mortgages, we were closing FHA mortgage loans. Other brokers steered borrowers into subprime loans. We worked with borrowers to get an FHA home loan approved. We gained considerable processing experience with the art of manual underwriting and full documentation. Processing can make all the difference in getting a loan approved.
We are closing FHA loans that other lenders cannot. We prove that every day.
We put technology to work for you. This makes your loan process smooth. You know the status. You have the information. You can make the informed decision. Lending is local. We use technology to give you local service - right where you are.
"Richard is a professional and I would recommend him to anyone needing sound advice about their mortgage." BH Chattanooga, TN
"This is my first purchase. We just had a baby last year. And we are so excited. Richard has keep us informed of the status with daily emails. He always makes sure that we know what to expect next. On top of that, during the loan, my wallet was stolen. Richard came in over the weekend to help with all things I needed to do about indentity theft and to notify the charge card companies and the credit bureaus. He really helped." CK East Ridge, TN.
"My loan went well, really quickly. But there was a problem with the lender taking the appraisal. Richard stayed in touch continuously. I always new what was next. He worked with the realtor and with the appraiser and got the loan done. Even going to another lender, he kept my rate and still closed quickly. " RH Chattanooga, TN
"Richard is one of the most professional and knowledgeable broker/bankers I have had the pleasure of working with, it is refreshing to see his commitment and dedication to our industry." ST Nashville, TN
"I needed to purchase the salon where I worked. It was a great opportunity. Richard told me what needed to be done, but another lender kept making promises. Those promises were never kept. Richard was patient. He told me to keep working with the other company as long as I thought things were going to go through. He would keep my loan ready if I needed it. Well, I needed it. Now I have my salon and it is going well. Richard knew how to get it through." Cleveland
"Richard has been great to work with. I love it when my clients take charge of their advertising campaigns and want to be personally involved to really make it their own. He worked hard to personalize his commercial and has worked to keep his website up-to-date. Thanks Richard for making it easy to work with you and being a man of integrity. If you're interested in making your dreams come true and having financial freedom, Richard is the man to talk to to!" GH Chattanooga, TN
"Richard works hard for my buyers. I know that. He calls me before I call him most of the time. I love the daily updates. He sends weekly articles about changes and other news. I really feel like I know the status. And when something comes up, I know he is giving me the right information. That really is important to me." LP, Chattanooga
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
