Another reason not to pre-pay the mortgage
I have read (change that to skimmed) the article that is
referenced here. It really does not get into the tactical (what to do) part of the solution. However, it does bring home the point that paying off the home as fast as possible is not really the best long term option for most people.
Take a look at this link. Mr.
Stenbeck does a good job of summarizing the salient points of the article. Of course, there is a link to the article if you feel the need to read it yourself.
http://www.behindthemortgage.com/behind_the_mortgage/2007/04/home_equity_as_.htmlThanks!
John
Labels: Mortgage Planning
Tough times for applicants...
There is a great post on
Mortgages Undressed.
Here is what Larry
Cragun has to say:
I realized today just how much the implosion of the subprime world has affected our business. Everyone is running and hiding. Few are willing to take any chances. Things that used to be easy decisions are difficult. No one at the lender level is willing to take any chances. The days of getup and go have got up and went. It reminds me of a poem: How do I know my youth is all spent? My get up and go has got up and went.This state of affairs has important implications for you the borrower. Expect no favors and no exceptions. Additionally you should go overboard to prove how worthy you are to borrow. Give no crap to anyone asking for anything, just to(sic) it and to(sic) it right.If you are requested to give bank statements give copies of all pages front and back.
Do it fast. Do it thoroughly, Do it all. Otherwise your loan will drag out and no one will have any sympathy for your state.No one is moving fast so you move fast to help compensate.That is great advice. There is an impact on EVERYONE regarding the
subprime fallout and I have noticed it in my loans that I am trying to process. I had a loan turned down yesterday because they felt that the property values were declining in the area. I want to call them up and say "No kidding? They are declining or are flat everywhere", but this is all the reason they need to deny the loan. So, make sure your application is TOP NOTCH and is an easy approval.
Labels: Buyers, Subprime
On a personal note...
Posting here has been a little sporadic. The reason for that is that I have been finishing my MBA course work. I completed my last test on April 3rd! Praise the Lord!
I think I am going to advise the
Professional MBA department to offer counseling to people that are completing their
PMBA's on "re-entering" their family's' lives, since my family has seen me only
scarcely for the last 2.5 years.
On another personal note, I have accepted a new job with a different firm. Actually it is a total career change. I will be working as a Project Manager for
Colite International. They manufacturer signs (but not yard signs...they make the big ones that go on top of buildings and places like that). I start on April 16
th. This position, based on the description that they gave me, matches well with the loan process. It also is in line with my education and will allow me to use my MBA in an effective way
I still intend to keep posting on this blog. While this is a career change, real estate and mortgages (and the personal finance and planning that surrounds them) are really a passion for me. On the up side, the past 6 years has been a real joyous occasion for me and I have loved the people and getting to help them. On the down side, the income has been a struggle. The inconsistency and the lack of enough money to provide for my family has prompted me to take a different path.
However, I still intend to do home loans for people on the side. Of course, they would have to understand that I have a full time job, and I will help them after work or on the weekends. But from my point of view, if I do not NEED the money to make the ends meet, it will fun and enjoyable again, and that should translate for the customer into a great experience. David
Rucker, the owner of
Sturkie Mortgage, has agreed to let me still run some loans through the company. So, if you, or anyone that you know, is in need of a home loan, I can still help, albeit in a somewhat reduced capacity. Of course, since my availability will be reduced, I will lower the cost of doing the loan for the client.
That's it. As I said before, I still intend to post on this blog about real estate and I intend to keep up with everything. I just need to make a move that will provide better for my family.
Labels: Personal
