Washington Mortgage Planner-straight up mortgage advice and commentary

Hi all: I received a call from a recruiter yesterday who found me here. Their offer was attractive but I said no for now. I might revisit the issue down the road if my company, for any reason, doesn't  make it.

Here's why I said no. The grass isn't greener-it's the same color! I've noticed that people who hop around often don't really build any customer loyalty. I see it frequently in the car business; it seems like car salespeople are always going after the next better opportunity. I haven't been in the mortgage business that long (2 years) so can't say I've seen a lot of job hopping but I'm sure it's there.

The way I look at it, every time someone goes to a new place, it's like starting over. That's why I said no. What I'm trying to do here is build a long-term brand. I think it's best to stay put for that reason. I'm not saying I wouldn't consider a fantastic opportunity. It's just that the grass is the same color on the other side of the fence! Have a great day!

Paul

Hello all: I was talking to a managing broker of a real estate company and she said they're working overtime because of a new state law that addresses "distressed properties". Basically it has the realtors running scared right now because they don't want to list a property that may fall under the "distressed property" definition. Up here, most of these properties would be ones deemed to be inadequate meaning they can't be sold as-is, etc. The penalty could be that the sale is reversed if the property is deemed distressed.

I have a feeling that we're near the end of the down cycle. Afer all, there can only be so much bad news before the market starts to correct. In the Seattle area, we've been somewhat immune to what has hit the rest of the country hard. But don't be mistaken. Business up here has been challenging and slow for some time now. I wonder if the distressed markets tag will be like the delining markets tag that was quickly removed from our side of the equation. I'm curious if your neck of the woods has similar tags as distressed properties. In the mean time, hang in there and you'll all be rewarded. Take care.

Paul

Hey all: I was given a great article today written by a staffer for the New York Times. It was about how he finally decided to buy after all these years. It was written on 5/28/08 and he referenced his own formula rather than the classic one of throwing your money toward nothing. Anyway, it's a great read. I highly recommend it and would suggest you make copies and distribute to all your clients, associates, etc. Have a nice night!

Paul

Good morning! I was thinking about how many potential buyers I've talked to this past year who are interested but seem to have a tough time pulling the trigger. I understand economic uncertainties and I think a lot of folk are feeling the pinch of higher gas and food prices. However, I also think many buyers are trying to time the market for that perfect price, interest rate, etc.

The media certainly hasn't helped much. They project home prices will continue to decline. Here's what I'm seeing up here in our beautiful corner of the world. I'm seeing from 6-12 months inventory depending on the neighborhood. I'm seeing reduced prices with motivated sellers. I'm viewing low interest rates (below 6% for a 30 year fixed mortgage O.A.C.). In other words, it's a fantastic time to buy. In the words of Brian Buffini, it's the best time to buy in the last 15-18 years.

My feeling is people will continue to wait a little longer in spite of the positive trends mentioned above. It's human nature. When a person is ready to jump back in, it will probably be because everyone else is jumping in too. By then it will probably be too late. Prices will have started rising again, interest rates will be higher, and there will be very little to look at. It's possible it might be a little bit easier to get a loan although it's not too bad right now. You just need to know where to look.

So timing the market, in my humble opinion, doesn't work. Those of you contrarians out there should be jumping in now. Remember that real estate is a buy-and-hold venture. With everyone that has happened the last couple of years, the opportunity is now. I expect it to go on a little longer but probably not past this year. Have a great day!

Hey all: Friday I got a call from a longtime friend of mine who was looking to buy a second home. The problem was their debt ratio was way high and they're self-employed. In the old days this would have been a stated income loan as he's been very successful for many years. Nowadays it's more of a full. doc. loan where the loan officer needs to know how to get the deal done.

The first thing we had to do was pay down the debt which it appears my client had the wherewithal. Then we have to talk to the creditor to make sure they can report the new balance owing sooner as opposed to later. This is important as their offer expires by June 19. If the creditor agrees to report now, we'll repull my client's credit score (rapid rescore) and we should be good to go. The rest of the loan works as they're putting 10% down and their credit scores are over 700.

I have a good feeling about this one. But only because we took the time to figure out a solution. The original mortgage person seemed stymied by the whole situation. And she'd been in the business for a while. That's why I think it's so important to work with a pro. who can look at every angle. The loans are out there but not every one is a piece of cake. A mortage or real estate pro will know what to try in order to make it work. Whether it's fixing credit and rapidly rescoring, knowing about Nehemiah gift programs, or sourcing down payments through lines of credit, a mortgage professional will know all the ideas and most up-to-date loan programs.

So stick with the knowledgeable real estate pro. You'll know. It will become clear to you they know what they're doing. Have a nice night!