Honesty -- is it the best policy?

Ethics is a huge problem today. One of the major reasons for the downfall of our economy is based on greed and bad ethical judgements. Greed based on personal gain from not being honest with your clients. In the world of mortgages it is easy to deceive to move a client forward but this will come back to haunt the person hopefully.

I believe in treating every client the same as I would treat my mother. Straight Answers with both sides of the coin shown. Risk is discussed and the decision is up to the client in the end. From this approach I have lost business because I was straight up with the client -- I would rather not do business than not have laid it all on the table.

Appraised value is a big concern right now. I discuss the pros and cons with clients about the risk of the appraisal process in the current declining market. Some appreciate knowing the ups and downs others only want to hear it will be "ok". I can't tell everyone it will be "ok" so they go to the person that gives them the warm fuzzy feeling -- some close others get burned. My clients know the risks and accept them -- they know the potential downfall up front.

As an originator my job is to give you the good bad and ugly -- not that 2 out of 3 items in that list are negative. I am not a pessimistic person but this is your home and life we are talking about lets make sure it is a good deal for you.

If you would like honesty as the best policy give me a call or contact me via my website at: http://www.new-hampshire-home-mortgage.com

Commitment

What is Commitment... not on a personal level but for your purchase?

Commitment is when the bank/lender has said yes and all conditions have been satisfied. This is when you know you have the loan... but don't completely relax.

The lender has the right to check your credit, income, assets, and employment status up to and including the day of closing!

As we tell all of our clients -- Don't Buy and Don't Apply. Buying items on credit cards can change your credit score... or applying for new debt. Whatever you want to buy for your new home will still be there AFTER you close!

For more home buying tips contact me via my website at: http://www.new-hampshire-home=mortgage.com

Turn Times

Pit Crews measure their success by how fast and efficient they can get their card in and out of a pit stop with a full service. Races are won and lost by the turn time.

What does this have to do with mortgages? Currently lenders are experiencing a high amount of production due to the lower rates and lower home prices. This causes delays. It is the originators job to make sure he/she knows the lenders turn times to be able to guide you with advice in regard to how long you should lock your rate with the lender. A 30 day lock is not much good if it takes the lender 18 days to review your file and another 7 to clear up any outstanding conditions as you won't have time to get the appraisal, title, etc... in to them in time. In that case you would need a 45 or 60 day lock. Lenders are requiring 3rd party verification of income and for many this is executing a 4506-T -- Request for Tax Transcripts through the IRS to make sure what you are showing for income is what you have declared with IRS through your tax filings. This takes time and the more lender utilizing this slows this process down. Originators should be able to see this obstacle coming up and guide you through the process.

For more information visit our website at: http://new-hampshire-home-mortgage.com

Live Large!

This is a quote from a paperback hero I had as a kid, I can't remember anything about the book except my hero never gave up, always won, and he Lived Large. Of course for him it meant life on the edge every minute. For the rest of us I don't think we have to go that far. But you need to live and enjoy the moment. My family planted our perennial garden this weekend in front of our home and I was struck by the joy of being able to learn about gardening with my family. All made possible by home ownership and it struck me that in my own way I am Living Large. Large in love for my family and the enjoyment we have in our yard.

The point is renting is good but there is something about pride of ownership that lets you Live Large.

Contact me via my website to find out how you can Live Large! at http://www.new-hampshire-home-mortgage.com

Purchases

Financing Options:

100% Financing USDA Rural Development -- Income and Geographic limitations down to a 620 Credit Score

96.5% FHA -- No Income Limits Purchase Price Limitations

1% Down Payment with New Hampshire Housing Finance Authority combined with FHA or USDA Rural Development

5% Down Payment Conventional Financing -- can be combined with a Reduced Mortgage Insurance for an additional 1% fee

Reverse Mortgage purchase for clients over 62 years old

YES we have your programs available! For more information contact us via our web site at http://www.new-hampshire-home-mortgage.com

Comparable Sales

What is the value of your home?

Is it the Assessed value that your town/city has your tax base at?
Is it the cost to replace on your insurance binder?
Is it the intrinsic value that you believe your home is worth?

The value of your home is based on what the market will pay for your home and is a snapshot in time based on what has recently sold in your area. What this means for you is that if your neighbor has the same house and just sold for $200,000 after being on the market for 6 months... chances are your house is worth $200,000, or is it? What if the neighbor had to sell to avoid foreclosure, or was going through a divorce and had to sell -- these are called distressed sales and need to be adjusted for. Our big problem right now is the VAST amount of distressed sales spread throughout our entire area and the LACK of sales. This makes it very difficult for lenders to determine a final value.

Just more information to digest in our ever changing market. Feel free to contact me via my website at: http://www.new-hampshire-home-mortgage.com

As a result of the Homeowner Affordability and Stability Plan (HARP), Evolution Mortgage LLC is participating and pleased to announce a new refinance option, known as the FNMA DU Refi Plus Program. This program allows more flexible loan terms on rate/term refinances to specifically identified loans.
Loans being refinanced under this program must have been sold to FNMA.

Features of the FNMA DU Refi Plus Program
• Maximum LTV as accepted by DU, up to 95%.
• Maximum CLTV as accepted by DU All existing subordinate financing must be re-subordinated. New subordinate financing is not permitted.
• Minimum credit score requirement is 620 on standard conforming limits; 680 on FNMA High Balance. A credit report must still be submitted. Minimum 48 months since a Bankruptcy; 84 months since either a foreclosure or multiple bankruptcy
• DU approve/eligible recommendations (without EA findings) will be accepted
• Primary, second home and investment properties are eligible.
• Eligible properties are 1-4 units, FNMA eligible condos, and PUDs (2-4s are not eligible on FNMA High Balance)• Qualifying ratios are determined by DU.
• The borrower(s) on the existing loan must be identical to the borrower(s) on the new loan. A new borrower may be added to the new loan, as long as the existing borrower(s) is retained.
• Mortgage insurance is not required if the existing loan does not require MI. Loans currently with MI are not eligible for this product.
• Loan amount may exceed existing loan unpaid principal balance only for payment of closing costs, prepaid items and lender fees.
• Borrower may receive up to the lesser of 2% or $2,000 at closing.
• The new refinance loan must result in a tangible net benefit to the borrower in either a) a reduction in the interest rate; b) a reduction in the amortization term; c) the replacement of an ARM or a Balloon/ Reset Mortgage with a fixed-rate loan or d) lower monthly payment that recoups costs within 60 months.
• Documentation requirements are per DU findings
• Property Inspection Waivers (PIW) accepted where allowed by DU, provided:
• Borrower certifies the home has not been listed for sale in the past 6 months and is not currently for sale
• Property county was not declared to be in a FEMA declared disaster county since last first lien lending transaction
• Last first lien lending transaction was not a purchase as an REO sale.

For more information about this exciting new option and if you qualify please contact me via my website at: http://www.new-hampshire-home-mortgage.com

Complex Transaction

A mortgage is a Complex Transaction -- not due the how but to coordinate ALL of the individuals to make a mortgage complete. The borrower, originator, processor, appraiser, home inspector, underwriter, title abstractor, title company processor, insurance agent, the lender's closer, the closing agent, the real estate agent for buyer/for seller, and the sellers themselves.

Many people to coordinate and make sure all are moving toward the same goal. The broker or originator is the person to coordinate with all entities to ensure this happens. So make sure you have a good relationship with your originator as they are your link to the process.

I look forward to being your "link" for more information please contact me at my website: http://www.new-hampshire-home-mortgage.com

Apri 9th Passover

As Easter approaches it is time to reflect on what is good in our lives and be thankful. To remember those that have passed and those that have been forgotten. To be blessed by a child's smile or the wisdom of our older generation. Time to be the people that we should be. To deliver on promises and not make excuses. Proud of what we do and how we do it.

I am a father of 3 girls and husband to my wife of 14 years and very thankful that I have been blessed with a loving family.

From our thoughts to yours. Enjoy your family this weekend.

for my contact information go to my website at: http://www.new-hampshire-home-mortgage.com

HVCC

Home Valuation Code Of Conduct... good or bad? This was not a law that was passed but a settlement between the state of NY and FNMA & FHLMC. This settlement changes how the entire property appraisal process works. Your broker will no longer order your appraisal report. The report MUST be ordered by the lender... but what happens if the lender does not like the property? Your loan must be taken to another lender and yes you guessed it, you need another appraisal. This starts to get expensive.

Brokers are cast as the evil Third Party Originators who have made a mess of the system. This is an easy scapegoat and in my opinion incorrect, what about the Ameriquests of the world? these were LENDERS that behaved worse than any broker. Companies like these have gone out of business so they can't be blamed -- hence the easy mortgage broker target.

For more information on how to best originate your loan contact me via my website at: http://www.new-hampshire-home-mortgage.com

USDA Rural Development

There is information out and about that USDA Rural Development is out of money... That is 100% correct! BUT lenders are still underwriting to USDA Rural Development guidelines knowing that funding is simply held up in Congress. Congress will be funding USDA but it is delayed. As for lenders it is still business as usual knowing that funding is on the way!

So yes we still have 100% financing through USDA Rural Development!

to find out if you qualify please contact me at my website: http://www.new-hampshire-home-mortgage.com

Change to FHA Refinances

FHA has changed the cash out refinance loan to value percentage... previously the percentage was 95%. It is now down to 85%.

What this means to you...

If you purchased a home then 1 year later took out a second mortgage to build a garage and your loan to value will be over 85% you will NOT qualify for a Refinance with FHA!

For more information about this significant change please feel free to contact me at my website: http://www.new-hampshire-home-mortgage.com

Treasure your Past, Plan for your Future, Live for Today!

The title of this blog "Treasure your Past, Plan for your Future, Live for Today!" is our company tag line. It means more than just a marketing gimmick. I firmly believe that you need to remember where you came from and your history as this helps define who you are or if you are looking to change, who you were.

Plan for your Future -- You have to do this because it is coming every day. Where do you want to go in life, what do you want out of life? Think about it, make a plan, and make it happen.

Live for today! Because nobody knows what the future brings you have to enjoy today! Be happy with what you have. It is the little things that make life special.

My outlook on life is very positive even in these uncertain economic times. I look forward to talking with you, please contact me via my website at: http://www.new-hampshire-home-mortgage.com

Great Home Improvements for Seniors

Some great Home Improvements for Seniors to be able to stay safely in their homes longer:

1) Levered Doorknobs
2) Grab Bars
3) Levered Faucets
4) Handrails on Stairwells both sides / Also on Steps
5) Grab Bars in Showers
6) Removal of Thresholds in doorways
7) Movable Shower heads
8) Bath & Bedroom on first floor
9) Widened Door Ways to accommodate Wheelchairs
10) Ramps for walkers/wheelchairs

All of these items make your home safer, easier to navigate, easier to live in, and more comfortable.

Many clients have used the proceeds of a reverse mortgage to pay for these improvements. Ask me how! I can be reached through my website at http://www.new-hampshire-home-mortgage.com

Reverse Mortgage Limits INCREASED!

HECM Reverse Mortgage Lending Limits have been increased to $625,500!!! If you were avoiding a Reverse Mortgage due to the value of your home being above the county lending limit this is GREAT news for you!

FHA/HUD has increased the lending limit to $625,500. For more information how this can help you contact me via my website at: http://www.new-hampshire-home-mortgage.com

Seller Paid Closing Costs

In this market Seller are paying for your closing costs... If you ask! Don't worry about what the seller owes or if it is a bank because you only get what you ask for. If you don't ask for the seller to help you pay the costs you will not know. It is a negotiating tool, use it!

For more information on how this will help you contact me via my website at:http://www.new-hampshire-home-mortgage.com

Return on Investment...

Do you buy a rate down or not? Rates are low... is it worth paying a 1/2 point to 1 point to buy the rate lower?

This depends on what your Return On Investment (ROI) will be. To calculate this have your principal and interest payment with out buying it down. Also you will need what your payment would be with buying it down. The next number you need is your cost to buy it down (your 1/2 to 1 point -- please note a point is 1% of your loan amount).

Subtract the lower payment from the larger payment.
Divide the points by the difference in the payment.
Divide this number by 12.
This is your ROI in years. You want this number to be as low as possible to have it make sense. The rule of thumb is between 2 - 4 years. But it will depend on you short and mid-term goals, your current equity position and/or liquid assets.

This may sound confusing but it is easily shown with real numbers. For a ROI calculation on your specific scenario contact me via my website at: http://www.new-hampshire-home-mortgage.com

First Time Buyers NOW IS THE TIME!

The government is now paying you to buy a home if you are a first time buyer... they are paying you in the form of a Tax Credit on your year tax returns. You could get up to $8,000 if you buy a home this year and qualify.

Now is the time to see if you can buy a home. What are you waiting for? Low Rates, Plenty of homes for sale, Motivated Sellers willing to help pay your closing costs... it doesn't get better until you remember that you can get up to $8000 on top of all that!

For more information see the line we have posted on our website: http://www.new-hampshire-home-mortgage.com

Rejoice and Live -- Reverse Mortgages can Help You!

A reverse mortgage will let you enjoy your golden years without worrying about the gold.

If you have a mortgage payment now you can get a reverse mortgage and not have a payment any longer.

Has your retirement account been hit with the economic downturn?

Do you need/want the security of a line of credit with no payments required?

Have your property taxes outpaced your fixed income?

Are medical bills or prescriptions too much and you are making difficult choices?

Are you looking to buy a second home?

do you want to give to your kids and see them enjoy their "inheritance"?

A Reverse Mortgage can do any of the above or any combo of the above.

For more information for yourself or your parents, please contact me through my website at: http://www.new-hampshire-home-mortgage.com

Remembering

I wanted to take this time to say goodbye to Dan Carey who passed away yesterday. Dan gave me my first job at the local corner market where I worked from age 14 through college and some after. I learned more from Dan than you can imagine.

Dan was one of the great men in this world and we are all worse off for his passing.

Matthew J Butt
http://www.new-hampshire-home-mortgage.com