I thought you might enjoy this spoof on the Redfin 60 Minutes interview from a few weeks ago. The only piece this bit is missing is the 6% Agent…it’s funny regardless.
Hat tip to Larry Cragun of Real Estate Undressed for sharing this video.
My first interview on iTunes
May 26, 2007 by 2 Comments
Recently I was interviewed by Jeff Chasin of Blogging for Mortgage Brokers with fellow mortgage bloggers Brian Brady of America’s Most Opinionated Mortgage Broker and Morgan Brown of Blown Mortgage. Although the interview is intended for Mortgage Professionals who are considering blogging… I think the information is relevant to any real estate professional who has been wondering about whether or not a blog is for them. To download via iTunes, click here or you can click the link under press and interviews.
Funds for closing when you’re buying a home
May 23, 2007 by 1 Comment
Whenever you are buying a home utilizing a mortgage, your lender is going to need to know where your funds that will be used for the down payment and closing costs are coming from. And in most cases, they will want the funds to be “seasoned” (statements showing the funds have been in your account for a two month minimum).
A lender wants assurance that the borrower has enough funds for closing and ideally, enough savings when all is said and done after closing, to have a cushion (2-6 months of your proposed mortgage payment aka “reserves”). Typically a lender is looking for 2 months of asset account statements. If large deposits are shown on the statements, the lender (or underwriter) may will require to have the large deposits explained and possibly documented. Many people have their paychecks go into their bank account and, like the tide, out goes the money. What ever is shown as ending balance is what the lender will use for your loan application and approval purposes.
Depending on the mortgage program you’re utilizing for your financing, different types of funds for closing may or may not be acceptable. Here is an example of some traditional funds allowable for closing:
- Checking and savings accounts
- 401(k)s and other retirement accounts
- Stocks, Bonds, Mutual Funds, etc.
- Income Tax Refund
- Seller closing cost credit (varies depending on program and loan to value)
- Gifts from family (depending on loan program)
- Proceeds from the sale of property (real estate or other)
- Inheritance
- Sale of personal property
Cash on hand (also referred to as “mattress money”) is a no-no. If you’re planning on buying a home in the next 3-6 months, you’ll want to get your dough into a bank account where a “paper trail” can be established of your funds.
With today’s automated underwriting and all of the available mortgage programs, more or less documentation may be required from the lender. The above list is only a sample. The requirements for your personal financing may be different. It’s important that regardless of what funds you’re planning on using for your down payment and closing costs, that you discuss it with your Mortgage Professional.
If you are considering buying a home located anywhere in the State of Washington, I’m happy to help you with your mortgage needs, including reviewing your down payment options.
Related Post: Qualifying for a mortgage: Funds for Closing
EDITORS NOTE: This post was last updated on April 11, 2011.
You don’t need to demolish your old Seattle home…recycle it!
May 22, 2007 by 1 Comment
The other night, I actually watched something on the local news that did my heart 
some good! A local man noticed that a beautiful old Seattle home was destined to be torn down. He contacted the owners, bought it and moved it to a vacant lot until the foundation can be poured. What a great alternative to demolishing a wonderful Seattle home. In my neighborhood of West Seattle, over 25% of the homes were built before 1930 and it seems as though every day I notice a nice Tudor being tagged to be torn down only to have a townhouse, multifamily or single family monstrosity replace it. Our property values have outgrown our historic values.
According to the article in the Seattle Times, this was inexpensive (as compared to buying a similar house without plans of moving).
- The demolishing of his existing home (okay…so one house was demolished…haven’t seen any photos to see what that property once looked like) and the pouring of the new foundation cost approx. $150,000.
- The typical cost of moving the home is est. at $35,000 – $50,000.
- The developer/seller agreed to sell the home for $1.
Nickel Bros. is who was hired to move the home from this story. I visited their website and they have "listings" of homes that need to be "adopted" or they will be demolished.
HGTV filmed the move of the Phinney home in Seattle…it must have been amazing to see the old beauty rolling down the street!
Patches Pal Picture of the Week!
May 20, 2007 by 1 Comment
I cannot believe how lucky I am… I’ve been selected to be the JP Patches Pal Picture of the week. Pinch me, Gertrude!
Check it out…after this week, there will be a new Patches Pal Picture.
How am I paid?
May 20, 2007 by Leave a Comment
This is a follow up to a question that I was asked the other day from a reader who asked:
"First of all, are you like a real estate broker, in addition to your specialist title? Are you a consultant /broker or just an educational resource? What is your fee for consultation?"
I answered the first part to her question on an earlier post. Leaving me the question of how I am paid.
To begin with, I’m not paid hourly nor do I charge a fee for my consulting advice…some days I wish I were paid that way! Mortgage Professionals/Loan Originators are paid when a transaction (purchase, refinance, second mortgage) closes and the loan funds. So it’s very possible for a Mortgage Professional to spend hours, sometimes months, with a client advising them on their credit and/or creating a mortgage strategy and not get paid one penny! I can accept not getting paid if a client is waiting to buy a home until the time is right for them…it does sting to have a client obtain financing elsewhere after investing a lot of time and effort into them. This happens to the best of Mortgage Professionals. I do my best to make sure that I’m working with clients who appreciate my time and advice and are as committed to me as I am to them.
Back to the big question of my compensation. Loan Originators are paid a couple different ways. They may be paid by the consumer in the form of points, or by the lender as a rebate. How the mortgage is priced, with points or without, will impact how the LO is paid. It is the consumer’s choice on how they want their mortgage priced, with or without points. A Loan Originator is going to be paid for their services either way.
I am paid a percentage of the loan amount. Depending on the loan size and the difficulty or ease of the transaction, my income can range anywhere from a couple hundred dollars to around 1% of the loan amount divided by half and less the fees I pay towards our processing. For example, if the loan amount is $200,000, the fee would be $2000 divide it in half (half to me and half to my employer, Mortgage Master), my portion would be less than $1000. Again, each loan is unique and may be priced accordingly and each Loan Originator is extremely different with how they may price their mortgages…the sky just might be the limit for some.
Over the top technology
May 18, 2007 by 1 Comment
A hat tip to Tony at The Mortgage Cicerone for passing along this amazing, and a bit scary, information. The GPS in your cell phone allows you to be tracked and with today’s satelite technology, you can be located and viewed at any time! I love technology as much as the next person…but is this too much?
Click here to visit the site…checking cell phone number locations is free!
Question of the day: Just what DO you do?
May 17, 2007 by Leave a Comment
I received this question in an email yesterday…it’s priceless.
"First of all, are you like a real estate broker, in addition to your specialist title? Are you a consultant /broker or just an educational resource? What is your fee for consultation?"
First of all, I am not a real estate broker. I am a Correspondent Lender and I am a Certified Mortgage Planning Specialist (CMPS).
As Correspondent Lender, we fund a majority of our loans in our credit line. We process, underwrite, prepare loan documents and fund a majority of our loans at our office located in King County, Washington. Since we’re taking the upfront risk, we receive better pricing than a typical broker. The loans are sold to lenders after closing. We also have the ability to broker mortgages when necessary. Typically a brokered loan is going to be a mortgage that is too unique to be in our credit line (such as subprime or alternative mortgages). A brokered loan may have more fees than one closed as a Correspondent. There are more "Mortgage Brokers" than "Correspondent Lenders" out there…it’s expensive to be Correspondent (but worth it)!
My DFI License "title" of 510-LO-32047 is also something that will be earned (officially ofter the exams take place starting next month). Mortgage Brokers in the state of Washington are required to become licensed (as Correspondents, we’re not quite banks and not quite mortgage brokers, so we fall into this new state law). What this means to the consumer, if the work with a Licensed Loan Originator is that they have:
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Passed an extensive exam.*
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Cleared a background check from the FBI and DFI.
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Must continue their education by means of clock hour course requirements.
If someone is working with a Loan Originator who does not have a license, such as a banker or credit union LO, they have not met (nor are they required to meet) the above requirements. (*Again, the exam will not be available until next month).
To be a CMPS, you must pass an exam consisting of 100 questions (different from DFI’s test) and are held to additional ethics beyond what other loan originators strive for. A Certified Mortgage Planning Specialist has gone through extensive training on mortgage planning and is doing so voluntarily in order to distinguish themselves over the rest of pack of Loan Originators knocking at your front door for a chance to sell you a mortgage you can’t resist. The CMPS designation is beyond what is required to be a Mortgage Professional.
An education resource is what every Mortgage Professional (regardless of what we call ourselves) should be! This is my favorite part of the question I was emailed. And I’m very flattered that this is how she interpreted me. In my opinion, a Mortgage Professionals first responsibility should be to make sure the consumer fully understands the mortgage process and what their options are so the borrower/buyer can make an educated choice as to what their mortgage will be. Sometimes, that choice might be to wait a few months once some credit issues are cleared up or more funds are in hand. There may be no mortgage involved at all.
How am I paid? That will have to be a new post! Stay tuned.
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