Cash due at closing

August 2, 2007 by Leave a Comment

EDITORS NOTE:  This post has been updated here.   With all the changes HUD created with the 2010 Good Faith Estimate, they are no longer a practical tool for mortgage originators and actually, no where on the GFE is there a place showing "funds for closing".   Please skip this post and read the one linked above.

Your closing date on your new home is a couple of days away, your feeling a little case of the jitters…the last thing you want to deal with is to be surprised with what funds are due at your signing appointment with the escrow company.   

Here's how you can clear up the funds to close issue:

  1. Your Mortgage Professional should provide you with a "fine tuned" Good Faith Estimate 5 or more business days before closing for review.   Check out the amount due for closing and if you are being credited for the earnest money deposit and any funds you have provided to the lender.   Also verify if any credits to you are reflected by the seller.   If you are unsure at all, ask–don't assume.   This is the best time to make any adjustments, if needed.
  2. Verify with your Mortgage Professional if the GFE is factoring in your earnest money deposit.
  3. Your Mortgage Professional should obtain an estimated HUD-1 Settlement Statement from the escrow company 2 days before closing to review it for any corrections or modifications.   
  4. You may want to request seeing a copy of your estimated HUD-1 Settlement Statement prior to your signing appointment.   Currently this is not standard practice.   
  5. Bring a copy of your Good Faith Estimate with you to your signing appointment.   The lender fees shown in Section 800 of the HUD should be close to those shown on your Good Faith Estimate.

What if there are errors?  Try not to panic. Depending on how much time there is prior to the scheduled funding, the lender may be able to redraft loan documents if needed.   80% of our loans our funded within our own credit line so unless it involves someone having to be re-approved for a higher loan amount, loan documents can be emailed fairly easily to the escrow company.   Often times, it could just be correcting a few documents and not the entire loan package.

The closing table can be an emotional time.   It's in your best interest to have as many of the details worked as far in advance as possible.   If you have questions or concerns, speak up.  This is not the time to be bashful.   This is your mortgage and one of the largest financial transactions you will make in your lifetime…be responsible and take action.

Filed Under: Escrow and closing

Latest Telephone Scam

August 1, 2007 by Leave a Comment

I often work from my home office.  For a while I was getting deluged with phone calls from people with foreign accents telling me that I had applied to obtain a mortgage from them!   I quit answering the phone when I don’t recognize the number or if the number is blocked.   The calls dwindled.

Here’s the new twist on the same scam…I’ve received a couple of these calls now.  The person says they’re from the “National Debt Center”.   They go on to say that they represent many of the credit card companies you have debts with (it’s not hard to name a few of the big players and get lucky with guessing a card you may actually have).    

Until this afternoon, the phone number was blocked…I just filed a complaint with the Do Not Call site.   We are on the DNC list and still get these obnoxious calls.   When I informed this caller that we’re on the DNC, she slammed the phone down.   Other times, this only seems to be a mental game to callers.   

They can sound pretty convincing…they’re crooks.  Don’t fall for it.  The area code from this caller was 113.   Look out.

Filed Under: Predatory Lending

Larry Cragun’s Magnificent 7 for July 2007

August 1, 2007 by Leave a Comment

Mag7

Larry has such dedication (not to mention wit, style and knowledge…you really should check out his blogs) to review consumer related real estate content month after month to award his Magnificent 7.   I’m honored to have Joe Buyer and the Lending Treehouse of Horrors: Part 2 included along with the following July’s nominees:

Condo sellers – review rules and bylaws by Teresa Boardman

How to use interest only loans to your advantage when planning your finances by Dan Green

Don’t hire an agent who lets you shoot yourself in your foot by ARDELL

New appreciation for the sandwich generation by Lisa Dunn

10 lessons learned by moving last week by The Housechick

Property flipping by Teresa Boardman

Thanks, Lar!   

Filed Under: Weblogs

My Recent Interview by Todd Carpenter

August 1, 2007 by Leave a Comment

Last week Todd Carpenter, who is indeed one of the lending pioneers of blogging, interviewed me at REMBEX Blog Fiesta.   I am very flattered to be interviewed by Todd and to be associated with the great real estate bloggers he’s featuring on his site.   The interview is more about why I blog…Todd’s introduction sums it up:

"Rhonda Porter is an example of why I think traditional media has seen it’s best days. As a mortgage professional, there’s nothing more annoying than watching the nightly news stumble through a story about the industry. It seems like they never get a story completely right. An industry expert can offer insight and understanding for a particular niche that no general reporter could ever hope to. For this reason, I believe an Army of Davids like The Mortgage Porter will eventually change the way most people get their news."

To read the interview, please click here.   

Filed Under: Interviews

Your mortgage payment may be going up

July 31, 2007 by Leave a Comment

Last week we received a postcard from our friendly tax assessor informing us that our assessed value increased 14% over last year.   When I owned my first home, this news would probably excite me.   What it really means is that our mortgage payment is going to increase.

Your note rate determines the principle and interest portion of your mortgage.  However, property taxes and home owners insurance can and do change…count on it.   Your mortgage company received the same notice about your property taxes, too (this is one reason why you pay the "Tax Service Fee" when you obtain a mortgage).   

Our new assessment is effective for our 2008 real estate taxes.   Once this rolls into place in the beginning of the new year, our mortgage company will contact us and may offer the following options, after reviewing our escrow account:

  1. Increasing our mortgage payment to cover the difference in the account.
  2. Allow us to pay the difference in a lump sum.

We will most likely opt to have our payment increased.   

Please do be aware when you’re buying a home, that even if you have a fixed rate mortgage, the taxes and insurance are not "fixed".   If you currently own a home in the Pacific Northwest where our values are still strong, be prepared to have your mortgage payment increase in 2008.   

And for those of you who are squeaking by making your mortgage payment, this is even more reason to put away your credit cards and to have your credit reviewed by a Mortgage Professional in the event you need to restructure your current financial position (do this at least 6 months before you need to refinance so you have a chance to make any corrections or improvements to your credit).   Don’t wait.

Filed Under: Credit Scores and Reporting, Financial Planning, Mortgage, Seattle

It’s so nice to meet you!

July 29, 2007 by 6 Comments

Laptophello_2

Fact is, most of my clients, I never meet face to face.   Odd isn’t it?  I’m caring for   one of their largest financial transactions and it’s all handled via email or phone calls.  I could be standing in line at the grocery store next to someone who I don’t know (or recognize) yet I’ve seen all their financial information…credit scores, bank accounts, retirement portfolio, collections, etc.  if I facilitated their mortgage.

I think when people find me from the internet, they want to make sure that I am "for real" and not some cheesy photo on a web site.    When clients are referred to me from their friends and family, they trust that their friend or family member had a successful experience working with me and they seem to not have the need to see me.   Let’s face it, we are all very busy people and coordinating two or three schedules to coincide can be a small miracle.

The other day, I met a very nice couple during their lunch hours.   It was a refreshing reminder to me of why I should meet with clients face to face.  Not just so they can see me, I enjoyed getting to know them better on a more personal level.    However, sometimes when we have days ticking away on a newly composed purchase and sale agreement and the luxury of time is nil, we may not have the option of trying to schedule a "sit-down" consultation.   Finding the time to complete a loan application, review your good faith estimate or a credit report while sitting across from each other may seem challenging. 

A few months ago, I added a new feature to my mortgage practice that allows me to show my clients what I’m viewing on my computer right on their computer(s).   If a couple are in different locations and cannot travel to the same spot at the same time, we can arrange a virtual meeting to review all of the important documentation and planning that is required in the mortgage process.   It’s very convenient for todays busy schedules.   Imagine this, you’re sitting at your computer at work, home or where ever and your spouse is on their computer:  both of you viewing what I have on my computer.  Together we could be reviewing good faith estimates, credit reports, various reports analyzing possible mortgage structures…you name it!   

The problem is, I’m not using this tool as much as I should be!  So I thought I should put it "out there" to let you know this is available and is a great resource that I want to share with you.   Ask me about it. 

Filed Under: Tech/Tools of the Trade

Pike Place Market Blog Tour USA

July 25, 2007 by Leave a Comment

Excuse me, can we ask you a question…. (sent from my Treo)

Filed Under: Seattle, Weblogs

Live at Zillow

July 25, 2007 by 1 Comment

Ping pong anyone? (sent from my treo)

Filed Under: Weblogs
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