Change is Coming! Don't be Suprised!

In the mortgage world it seems that change is part of our everyday life especially in these times. Many times the changes are minor yet tedious and others have been very major and altering to the loan process. The latest change that seems to be taking place at most of the investors that I have been in contact with including our mortgage banking operation is the minimum credit score for an FHA loan is going up yet again. Travel back a couple of years ago and we have moved from No credit score requirements to 500 to 540 to 580 to 600 to 620 and now it is a minimum middle score of 640. So what does this truly mean for the average person that had a 620 credit score. It has been my experience when looking and analyzing individuals credit reports that this will not make a difference for the vast majority of home loan applicants. Someone that has a 620 score can generally pay a revolving account down or take care of a bad account and see a 20 point increase in the matter of 1 month. That being said there are also still ways to do a re-score of the credit report in 72 hours which I have utilized for clients in the past. This change will not make as big of a difference as most might think. It seems as though mortgage loan originators and real estate agents alike have grown accustomed to complaining about any changes to loan guidelines. That being said let's take a step back and look at it with a different point of view...
Without these changes we will see more foreclosures in the future or so the studies have proven. That being said with more foreclosures in a neighborhood we are seeing diminishing or stagnant property values due to these homes being in poor condition or with lower sales prices. The lower sales prices are coming from the banks dumping these assets. As a homeowner or potential homeowner it may be a little more difficult to get a home loan but these increased requirements will have a lasting effect on the overall housing market in a positive way. People that purchase a home are less likely to foreclose which brings stability to your neighborhood. Isn't that we are all fighting for is a stable home market?
It is my opinion that these changes will not hinder someone with a 620ish credit score from purchasing a home if they get in contact with a good mortgage professional and a savvy real estate professional. With the help of both they can still achieve the dream of home ownership with historically low interest rates and remarkable deals on current home prices.
If you are a real estate or mortgage professional ask yourself... Do you want stability in the housing market for years to come? Is this your career or is it a job? A career is a passion and purpose everyday with meaningful value. A job is a 9-5 with tasks yet no purpose long term and a job ends with instability... Instability in the market puts our long term careers in jeopardy because of people fighting for a job...

Top Loan Officer Study to Be Conducted

Danny Smith of In-The-Box Development is seeking 125 top producing loan officers to join his control group for a study in conjunction with MuRF Systems Inc. that will identify your strengths and weaknesses and help you produce even more. I have known Danny Smith for a number of years and believe others would find value in the assessment models that he has been using in the past and the in depth model that he is currently working on producing. Here is a copy of the press release:
AUSTIN, Texas (September 20, 2010) - MuRF Systems, Inc. has selected In-the-Box Development and Danny Smith to manage their nationwide Mortgage Loan Officer SMARTS project. In-the-Box Development/Danny Smith will be working with leders nationwide in the selection of 125 career loan officers to participate in the control group. From this control group, MuRF will develop the Mortgage Loan Officer Sales Marketing and Representative Traits Survey (MLO SMARTS). "I have been using assessments for 15 years to help build profitable and well-functioning teams that enjoy working together," said Danny Smith. "In 1992 I started looking at commonalities in loan officers and using assessments in 1995 to help pinpoint what made a good loan officer and what made an average loan officer better. This is going to be an incredible experience and I look forward to the end result and how we'll use the MLO SMARTS to improve funding levels, teamwork, and have some fun along the way." MuRF Systems, Inc is an industry leader in organizational and people development with more than 30 years of research backing up its tools. In-the-Box Development is owned and operated by Danny L. Smith. Danny has 26 years experience in mortgage lending with 15 years of specific experience building high producing retail and wholesale loan production teams. With the use of the MLO SMARTS, mortgage companies will have a pre- and post- hiring tool to assist in obtaining their best loan funding volumes. The MLO SMARTS tool will benchmark existing and candidate mortgage loan officers against the commonalities of top producers and places the individual into one of three categories. The employer will then have additional information to assist in the hiring of the individual and/or giving developmental suggestions for improving the skill level of individuals in loan origination roles. Inquiries into this limited participation project are welcome. Loan officers and managers that have loan officers they would like to be part of the control group should contact Danny Smith at danny@DannyLSmith.com or 512-773-6528.
Make It A Great Day!
Brad

ABC's Good Morning America at it Again

Well as I have been saying over and over again the media is just in it for the shock factor.... Good Morning America strikes again. This morning they had their "mortgage expert" on the program with some ground breaking news. Problem was everything that was covered was not ground breaking news but rather ground breaking myths and untrue. She started out by stating that you must have a 720 credit score to get a home loan. - UNTRUE Went on with you have to have 20% down to get a home loan - UNTRUE Loans were getting much more difficult to get to the point that the average person can not buy a home - UNTRUE I will give her credit though she got one part correct... It is a great time to purchase a home because the rates are at historic lows and the house prices are very much in the buyer's favor currently. If she was a baseball player I guess that batting .250 isn't bad but this is the real world and only getting 1 out of 4 facts correct to me ranks right up there with not knowing much of anything. That being said there are still programs available for 0 down home loans. Loan programs for people with credit scores all the way down to 600. And the average person CAN get a home loan. The media seems to report what gets ratings and that shock and awe along with doom and gloom these days. Do not get sucked into believing everything that is reported on television as "fact". Hope this will help to show real facts rather than made up media garbage. Visit my website at www.bradcorbin.com for other helpful information.
Brad

Bond Money

I just want to make everyone aware that there is bond money that can go hand in hand with an FHA loan that makes the net result to the buyer a possible $0 down situation. The bond program is for 5% of the sales price which can cover the 3.5% down payment requirement and 1.5% toward the closing costs. How can it be $0 down you ask... Well the seller can cover the rest of the closing costs that the bond is not able to cover as long as it fits in the 6% seller concession limits. If you are looking for an option such as this please let me know and I would be happy to help! The bond program is an exciting tool that can be utilized to purchase a home with little to no money out of pocket. For details on the bond money please send me a message! Have a Great Day!
Brad

FHA Loan Approved

We have received the approval on an FHA loan today with < 620 credit score! This is excellent news because many lenders are requiring a 620 credit score while we are still able to go down to a 580 credit score on our FHA loan products. That means that we can offer assistance to more buyers and help them achieve the homeownership dream. The best part is that we had very few conditions after the initial underwriting and we will be able to make the closing date on time! If you know someone that has been told "no" by another mortgage professional please tell them to not give up and that there could be another option. We would love to help them!
Brad

It's Friday and Our Team Had a Great Week

Here at the Brad Corbin and Kathy Volkman Home Loan Team we had a fantastic week! We closed two loans this week and look forward to the week ahead that will include another closing as well as scheduling some home buyer's seminars. We closed a VA loan which I wrote about in detail and then Wednesday we closed a buyer that was buying a 2nd home in the heart of horse country! The client purchased this home with 10% down and received a fantastic loan that met their financial needs. This customer can now enjoy the rodeo scene in Erath County! If you have loan needs please let me know and we would be happy to help you in any way!
Brad

VA Loans Still A Great Option

If you are a Veteran and have VA eligibility I have a great news for you... Not a lot of change from a year ago!!! We closed a veteran today with a fantastic low fixed interest rate today on a 30 year mortgage. VA does have it's own idiosyncrasies but they are all common sense and can be overcome. First VA requires a termite inspection as well as a septic and well inspection if you have a private water source. On the VA loan that we closed today the buyer chose to put 5% down however VA still allows for $0 down and $0 closing costs if you can get the seller to agree to pay all of your closing costs. Also another nice feature of the VA home loan if you are purchasing a lower priced home is that the seller does not have a maximum amount of seller concession such as the 6% rule on FHA loans! This is a great tool when you are looking for a No Down Payment and No money at closing option for home financing. Or as the program has been billed for years as a VA NONO. The lending landscape has changed immensely however some of the tried and true products that have been around for years are still thriving in the lending climate that we are currently in. Also this home in Erath County was on a private road and has an Ag Exemption which can be a deal breaker on other types of loans. This loan was in Stephenville, TX and made to two teachers. The real estate in Stephenville is still in high demand from the indications that we have seen. The main problems in this area seems to be some sellers are still priced too high but for any homes that are priced appropriately the market seems to be moving at a respectable rate. If you have any questions about home loans don't hesitate to comment and let me know!
Brad