How to Pick a Trustworthy Lender

Right now is a scary time for borrowers. After the recent meltdown that shook the housing market, borrowers were left with a bad taste in their mouth of predatory lending practices. The good news is that the meltdown left only the strong to survive. Most lenders that endured the fallout are the ones who were engaged in ethical business practices and have active services to offer borrowers who need some honesty. Here is a little guideline when it comes to choosing a trustworthy lender.

When searching for a lender without any knowledge of the local businesses, it is always a good idea to get good referrals from people you trust. Friends, co-workers, neighbors or relatives are good examples of people who can direct you to trustworthy lenders. Once you come across a few lenders you could like to pursue, check them out on the Better Business Bureau’s website to see if they have any complaints or what kind of rating they received. Bank and Credit Unions also have safety ratings that can be checked to investigate a company.

One of the most important things to pay attention to regarding a lending company is their licensing and certificates. All lending companies are required to be licensed and if they are not, that means they are not legal to originate loans. The National Mortgage Licensing System and Registry (NMLS) has a searchable database to see if a company is licensed. NMLS is part of the SAFE Act of 2008 that requires all companies to have a criminal background and credit check. Certificates and education are just as important as licensing because any kind of certification, such as the CMPS or CRMS, indicates that the company has sturdy ties and dedication to the industry.

Once you meet with a few lending companies, it is important to ask the right questions to make sure you receive all the information you need to make a wise decision regarding your financial future. Make sure to inquire the following:

1.      How long they have been in business

2.      What experience they have with the particular type of lending service you need

3.      If they have ever had to buy back a loan

4.      What percentage of returning customers they have

5.      If they can accurately describe and explain the current industry trends and how they pertain to your situation

6.      If they can explain to you what all the fees on the Good Faith Estimate refer to

Never let a lending company charge you upfront fees as this is illegal. Follow these guidelines and you will be sure to find a lending company that you feel comfortable with and that will explain the entire process to you. Visit our website if you would like to learn more about our ethical business practices and if we can help you in your next real estate endeavor.

www.aapexfinancial.net

Mortgage Borrowers May Choose to Rent Instead of Buy-How Can this be Fixed?

According to a nationwide survey conducted by Fannie Mae, tainted mortgage borrowers will most likely be renting instead of buying in the next year. Less and less borrowers believe that it is a smart time to invest in a home and even more think it is a bad time to sell. Since the last survey conducted in June, 68% of borrowers think it is a good time to buy (down 2%) and a whopping 85% think it is a bad time to sell their homes.

Many borrowers are losing their faith in the housing market, driving them to choose renting instead of owning. Since Fannie Mae’s January survey, 45% of delinquent borrowers would choose to buy a home (down 11%) and 50% would choose to rent (up 10%). Delinquent borrowers feel safer renting even though most recorded thinking that rental prices will increase more than home prices.

Borrowers who have defaulted on their loans make up a large portion of the home borrowers today. In America, 42% of the population knows someone who has defaulted on a home loan. To narrow it down more, 63% of delinquent home borrowers and 58% of underwater borrowers know someone who has defaulted.  Naturally, the statistics get higher depending on what level of delinquency the borrowers are within.

Some borrowers are scared of defaulting on their loans because of recourse. Many borrowers, 51% in all, believe that lenders will pursue them for more assets than just their house if they are to default on their loan. Most borrowers feel that the risk is too high to buy another home and do not feel that it is a safe investment at this time. Due to these factors, it is predicted that this next year will consist of more renters than buyers.

What can real estate and mortgage professional do to help getting borrowers to buy homes? One approach, something that has been talked about and discussed before, is upping the customer service and reassurance throughout practices. A study was done that showed that borrowers put customer services above rates when it came to getting a loan. That means that the reassurance and help from a mortgage professional could be more important than the actual amount of money paid. If that is the case, then mortgage and real estate professionals could focus more on informing their customers and business clients about what is happing in the industry and make them feel like they are making the best financial decision instead of trying to pump out as many loans and sell as many houses as possible regardless of the final outcome for the borrower. It is a thought and something that the Think Big, Work Small guys seem to agree with. Check this out.......

Think Big, Work Small Video

Mortgage Delinquency-It's Improving

Delinquency rates on mortgages have been rising at an overall slow national rate but in the North East, they seem to be climbing significantly. According to TransUnion, in the states of NY, NJ, MN, CT, and DE the rate of over 60 days of past due delinquency has risen to 6.44% in 2010’s third quarter compared to 2009’s third quarter rating of 6.25%.

The North East may not be showing improvements but overall as a nation the US rates of delinquency have actually decreased during 2010’s second quarter to 6.67% compared to 2009’s fourth quarter rating of 7.89%. Many believe this is due to consumers becoming more responsible with their budgets and maintaining better control over their credit due to the economic downfalls that have overwhelmed our country. The two states that hold the level of lowest delinquency rate are North Dakota with 1.52% and South Dakota with 2.24%.

The national mortgage debt per borrower has also decreased since last year’s average of $193,121 to 2010’s average of $190,176. West Virginia holds the title for lowest mortgage debt per borrower with an average of $100,263 while the District of Columbia, California and Hawaii all lead the ranks for highest mortgage debt per borrower. The District of Columbia holds the number one spot with an average of $368,255 per borrower.

"All Spiced Up" Thanksgiving Recipes

Sausage, Apple and Cranberry Stuffing

1 1/2 cups cubed whole wheat bread

3 3/4 cups cubed white bread

1 pound ground turkey sausage

1 cup chopped onion

3/4 cup chopped celery

2 1/2 teaspoons dried sage

1 1/2 teaspoons dried rosemary

1/2 teaspoon dried thyme

1 Golden Delicious apple, cored and chopped

3/4 cup dried cranberries

1/3 cup minced fresh parsley

1 cooked turkey liver, finely chopped

3/4 cup turkey stock

4 tablespoons unsalted butter, melted

1.Preheat oven to 350 degree F (175 degree C). Spread the white and whole wheat bread cubes in a single layer on a large baking sheet. Bake for 5 to 7 minutes in the preheated oven, or until evenly toasted. Transfer toasted bread cubes to a large bowl.

2.In a large skillet, cook the sausage and onions over medium heat, stirring and breaking up the lumps until evenly browned. Add the celery, sage, rosemary, and thyme; cook, stirring, for 2 minutes to blend flavors.

3.Pour sausage mixture over bread in bowl. Mix in chopped apples, dried cranberries, parsley, and liver. Drizzle with turkey stock and melted butter, and mix lightly. Spoon into turkey to loosely fill.

Cranberry Sauce Extraordinaire

1 cup water

1 cup white sugar

1 (12 ounce) package fresh cranberries

1 orange, peeled and pureed

1 apple - peeled, cored and diced

1 pear - peeled, cored and diced

1 cup chopped dried mixed fruit

1 cup chopped pecans

1/2 teaspoon salt

1 teaspoon ground cinnamon

1/2 teaspoon ground nutmeg

1.In a medium saucepan, boil water and sugar until the sugar dissolves. Reduce the heat to simmer, and stir in cranberries, pureed orange, apple, pear, dried fruit, pecans, salt, cinnamon, and nutmeg. Cover, and simmer for 30 minutes, stirring occasionally, until the cranberries burst. Remove from heat, and let cool to room temperature. Sauce can also be served over cream cheese with crackers as a dip.

Gourmet Sweet Potato Casserole

5 sweet potatoes

1/4 teaspoon salt

1/4 cup butter

2 eggs

1 teaspoon vanilla extract

1/2 teaspoon ground cinnamon

1/2 cup white sugar

2 tablespoons heavy cream

1/4 cup butter, softened

3 tablespoons all-purpose flour

3/4 cup packed light brown sugar

1/2 cup chopped pecans

1.Preheat oven to 350 degrees F (175 degrees C). Lightly grease a 9x13 inch baking dish.

2.Bake sweet potatoes 35 minutes in the preheated oven, or until they begin to soften. Cool slightly, peel, and mash.

3.In a large bowl, mix the mashed sweet potatoes, salt, 1/4 cup butter, eggs, vanilla extract, cinnamon, sugar, and heavy cream. Transfer to the prepared baking dish.

4.In a medium bowl, combine 1/4 cup butter, flour, brown sugar, and chopped pecans. Mix with a pastry blender or your fingers to the consistency of course meal. Sprinkle over the sweet potato mixture.

5.Bake 30 minutes in the preheated oven, until topping is crisp and lightly browned.

Grown Up Mac and Cheese

4 ounces thick-sliced bacon

Vegetable oil

Kosher salt

2 cups elbow macaroni or cavatappi

1 1/2 cups milk

2 tablespoons unsalted butter

2 tablespoons all-purpose flour

4 ounces Gruyere cheese, grated

3 ounces extra-sharp Cheddar, grated

2 ounces blue cheese, such as Roquefort, crumbled

1/4 teaspoon freshly ground black pepper

Pinch nutmeg

2 slices white sandwich bread, crusts removed

2 tablespoons freshly chopped basil leaves

Preheat the oven to 400 degrees F.

1.Place a baking rack on a sheet pan and arrange the bacon in 1 layer on the baking rack. Bake for 15 to 20 minutes, until the bacon is crisp. Remove the pan carefully from the oven - there will be hot grease in the pan! Transfer the bacon to a plate lined with paper towels and crumble when it is cool enough to handle.

2.Drizzle oil into a large pot of boiling salted water. Add the macaroni and cook according to the directions on the package, 6 to 8 minutes. Drain well.

3.Meanwhile, heat the milk in a small saucepan, but don't boil it. Melt the butter in a medium pot and add the flour. Cook over low heat for 2 minutes, stirring with a whisk. While whisking, add the hot milk and cook for a minute or 2 more, until thickened and smooth. Off the heat, add the Gruyere, Cheddar, blue cheese, 1 teaspoon salt, pepper, and nutmeg. Add the cooked macaroni and crumbled bacon and stir well. Pour into 2 individual size gratin dishes.

4.Place the bread slices in a food processor fitted with a steel blade and pulse until you have coarse crumbs. Add the basil and pulse to combine. Sprinkle the bread crumb mixture over the top of the pasta. Bake for 35 to 40 minutes, or until the sauce is bubbly and the macaroni is browned on the top.

All recipes were gathered from allrecipes.com and foodnetwork.com. Enjoy your Thanksgiving Feast!

NAR Tries to Make Home Buying Process Easier

During their 2010 New Orleans conference, the National Association of Realtors addressed the problems potential home buyers have had qualifying for loans. Many lenders will not budge on certain regulations due to the fact they need to have the loans insured by FHA or bought but the GSEs. NAR has addressed FHA, Fannie Mae and Freddie Mac saying they are hindering potential homebuyers from being able to buy with strict limits on available credit. “These policies are delaying recovery both of the housing market and the larger economy,” said Vicki Cox Golder, President of NAR.

NAR also made a point of asking private lenders to lighten certain regulations regarding negative credit scores affecting future purchases and credit utilization. NAR claims to be trying to help the housing market by trying to elevate some of the restrictions put upon potential buyers while educating both its members and consumers about the industry’s regulations. NAR will be developing educational materials about the importance of good credit, how to find a fair and affordable mortgage and the overall importance of maintaining good credit.

Internet Marketing for Real Estate Agents

The internet is where everything happens now. It is where buyers look for homes and it is where sellers sell their homes. Internet marketing is a must, especially in the real estate industry. Here is a little checklist to make sure you are on the right track to successful internet marketing.

Blog

I cannot stress enough how important a blog can be. It is free, easily accessible and easily shared information about your business and community. There are many different hosts to choose from such as Google Blogger, Wordpress.com, ActiveRain and RealTown.

·        Use strong keywords that are relevant to your audience so you will come up in deserving searches

·        Use links to other helpful resources and Web sites

·        Use widgets for email signups, RSS, posting archives and links

·        Have widgets for other social media outlooks such as Facebook and Twitter easily accessible

Google Reader

This is a very valuable resource when gathering information for articles and feeds to send to your clients. This holds a database of informational Web Sites that you can subscribe to so when news is posted, you don’t have to visit each individual site.

Google Alerts

Alerts can be used to receive news by choice of once a day, once a week or as it happens. You can set up alerts on your industry, your own company or even your competition to stay ahead of the game.

Linked In

This is the business only related social media. Facebook and Twitter are very good media outlets and should definitely be used as well but when it comes to being business networking savvy, Linked In is the way to do it.

·        Participate in the Question and Answer forums

·        Build up your recommendations to become more credible

·        Make sure your profile and resume are 100% complete

YouTube

Video marketing is the new era of advertisement that is going to hit strong. Not many companies have joined the bandwagon yet but the ones that have are noticing a powerful outcome.

·        Make sure your videos are no longer than 2 minutes

·        Cover topics such as your community, local events, open houses and featured properties but do so in a way that isn’t selling to them but more informing them

·        Share these videos to your other social networks

WHO IS BUYING?

This is meant to be a helpful guide for real estate agents when working with potential buyers in the housing market. The following statistics are derived from NAR’s 2010 Profile of Home Buyers and Sellers which recorded responses from surveys conducted on recent home buyers who purchased between July 2009 and June 2010.

First Time Homebuyers                                                                                
Average age=30                                                                                 
Annual Income=$59,900                                                                                Married=48%                                                                                     
Single females=23%                                                                          
Single males=15%                                                                              
Unmarried couples=12%                                                                   

Repeat Buyers

Average
age= 49

Annual
Income= $87,000

Married= 68%

Single
females= 17%

Single
males=9%

Unmarried
couples= 4%

Keep us in mind when it comes time to Purchase or Refinance. We work closely with home buyers and agents to make sure the loans get closed.

Aapex Financial Solutions

http://www.aapexfinancial.net/

Why are we Building New Homes??

The Department of Housing and Urban Development has sent out some interesting statistics regarding this past October. The statistics are about new residential construction in regards to permits, new construction starting and actual home completions.

About 550,000 privately owned houses were permit authorized by the government, which is a .5% increase since September. About 406,000 of these permits were single family homes, which is a .5% increase since September. In addition, 519,000 new construction starts were issued in October, a decrease of 11.7% since September.

With all that in mind, there were 613,000 actual houses completed this past October. This sounds good until we realize that is a 3.2% decrease since September and a whopping 18.4% decrease since October, 2009. So why are we building more homes if the actual completion rate is dropping?

Sure, it says that new construction starts have decreased since September, but the fact of the matter is that they are still being produced in large numbers. The authorization permits are increasing yet actual completions are dropping steadily. The government is authorizing more homes to be built yet many are left as empty, unfinished shells only dropping the value of the neighborhoods they sit in.

This also brings up the unrelenting discussion about the homes that already stand unfinished or vacant. There are more than 19 million houses standing vacant in the US so why are we not paying attention to these houses? Perhaps we should spend more money and effort on home restoration instead of home building.

Keeping our Communities Preserved

The housing crisis has left families and communities in despair and without means to properly function within their neighborhoods. Run down houses, empty businesses and unkempt agriculture structures make up a large part of rundown communities throughout the US. What can be done to get these neighborhoods back into shape and their houses back on the market? Property preservation is a vital component and a booming industry considering all the work that needs to be done.

Recently, Congress passed a Continuing Resolution that will keep funding alive for government agencies such as the US Department of Housing and Urban Development. This will help to guarantee that low and very low income communities can continue to update and sell their properties.

It has been announced by the USDA that approximately 163 low income recipients will get funding to repair and improve their housing situation. This funding can also be combined with state and local funds and can be used on general repairs such as plumbing, weatherization, energy efficiency upgrades and other services that property preservation companies offer.

To some, 163 recipients may seem like peanuts considering the low income housing situation that is plaguing the US. That may be true but there are many grants and loans available to low income US residents for different types of repairs on various housing structures. Considering the current situation, any form of improvement upon the US’s housing situation is a step forward and should be looked upon as so. Current home owners should continue to keep their homes well maintained and sellers should look into the various ways to improve their homes current situation. The different types of loan and grant programs available through the USDA can be found at the following Web site: www.rurdev.usda.gov/programsandopportunities

Remember..........any refinances and purchases can be done easily and quickly through us at Aapex Financial Solutions http://www.aapexfinancial.net/

VA Loans

Around this time of year we think about our US Veterans. Many places of business honor them through offering discounts and specialty programs during their holiday period. One program that is available to Veterans year round is the Veteran Affair’s Mortgage Loan. This is a federal government secured loan through the Veteran’s Administration that offers many benefits for not only actual veterans but can include the following:

·         Reservists

·         National Guardsmen

·         Un-remarried spouses of the deceased

·         US Citizens that served for a US ally during WWII and their spouses

This program may only secure about a half of the actual loan but it features many benefits for those veterans that qualify with good credit, a sensible debt to income ratio, and intention to live within the purchased dwelling within a certain amount of time after closing. VA loans offer no down payment and fixed interest rates, regardless of the borrower’s history. Amortization periods can stretch longer than the traditional 15 to 30 year mark and there is no prepay penalties. Other benefits include closing costs only getting so high due to the limitations set through this program, the loan being assumable to new borrower, regardless if they are a veteran or not, and a very flexible forbearance program for veterans that come into some financial problems.



Why Some Real Estate Agent's Loans are Delayed at Closing

Real Estate agents work hard to get borrowers business and help them get their loan sent into a lender and off to closing the deal. Since the industry has been increasingly changing and becoming tighter as far as regulations go, agents need to make sure that their loan documents and selling practices are up to standards in order to make sure they close their loans without many hold ups.

According to FHA guidelines listed on http://www.fha-home-loans.com/, here are a few potential reasons why some real estate agent's loans may be delayed when it comes to closing time. Hopefully, this can be of some assistance in assuring that agent’s loans are submitted correctly in order to close their loans quickly.

·     Improperly signed documents- may cause a delay of 1-3 weeks

·     No pre-qualification of borrower for motivation- may cause delay of 2 weeks

·     Lack of returning client and broker/lender phone calls- may cause delay of 1-3 weeks

·     Agent transfers to another office- may cause delay of 1 week

·     Overall lack of communication with borrower- may cause delay of 1-4 weeks

There are many parties beyond the agent that are included in closing a loan such as the lender, Title Company, and home inspector. Even so, the borrower typically deals directly with the agent so making sure that the paperwork and overall loan process is tidy and easily transferrable from the beginning will almost always guarantee a faster closing in the end. This will result in the satisfaction of not only your borrower but all the other parties included in your closing deal that will also benefit from a quick and easy closing.

Having Trouble Making your Mortgage Payments? Avoid these Scams......

• Foreclosure Prevention Specialist

They find you in your darkest hour when it looks like you have no other options. They promise you that they will save your home and give you hope which deters you from seeking any real financial help. All they really are is a fake advisor who charges you a very high fee to run through a few financial papers that you could have done in the first place.

• Bait and Switch Method

You may be told that you can refinance with a favorable lower rate at a later time but that time never comes. Another bait and switch method could be they give you an initial agreement with a fixed low rate loan but the actual mortgage note at closing is not that at all but one with much higher fees and what is considered to be a balloon payment loan. Whatever the bait and switch method happens to be, it is not ethical business practices.

• Lease Buy Back

You will be offered to sell your house to an investor who will lease it back to you in attempts to rescue you from foreclosure. This is not what ends up happening in this situation. Instead, you will most likely not be able to pay the terms of this contract and the investor will walk all with all your property’s equity.

Please avoid these unethical business practices and talk to a real financial counselor or advisor such as the U.S. Department of Housing and Urban Development (HUD) or Homeownership Preservation Foundation (HPF).

If you are interested in refinancing your home for a lower interest rate or just want to keep up to date with important mortgage industry news, visit our website at http://www.aapexfinancial.net/

Broken Mortgage Products?!?!

This article from the Wallstreet Journal shows how not upholding certain standards and business practices is what got our housing industry in the dumps to begin with.

http://online.wsj.com/article/BT-CO-20101108-712803.html               



We pride ourselves on practicing ethical business practices with FHA underwriting standards. We have over 20 years of experience throughout multiple avenues of the mortgage industry and promise to always maintain these standards for all our partners and borrowers!

Fire and water damage, mold, toxins and other hazards wreaking havoc on your home or place of business? David Snell of Executive Restoration, a trustworthy home inspection company in Charlotte, NC, can help. Executive Restoration specializes in business and residential damage inspections, prevention and remediation and has a 24 hour hotline that can be reached at (704)545-0098.

www.executiverestorations.com 

Check out CNN Money for Latest Mortgage Industry News

CNN Money always keeps the public up to date with importnant mortgage industry news:

http://money.cnn.com/2010/10/29/real_estate/foreclosure_voting/index.htm

http://money.cnn.com/2010/11/02/real_estate/make_low_rates_work.moneymag/index.htm

Take this cool Foreclosure Quiz!

http://money.cnn.com/quizzes/2010/news/foreclosure_fiasco/index.html

Eastern Mortgage Summit and Expo!

The Eastern Mortgage Summit & Expo is set for Thursday-Friday, Nov. 11-12. It will be taking place at the Charlotte Marriott City Center, 100 West Trade Street in Charlotte, N.C. and will start at 8:00 on Thursday morning and end on Friday at 4:00. Special education courses, receptions and workshops will be going on throught the two day event and special guests include Scott Hudspeth from the "Mortgage Marketing Animals", Brian Stevens and Frank Garay from "Think Big Work Small", and Tim Quinlan, an economist for Wells Fargo. Package pricing is avaliable depending on which parts you want to attend and can be found at: http://www.mortgagesummit.net/schedule.asp