Club Chaos Agents - All Things Hollish, Wacked, and Jacked

Well, I know I had updates at the bottom and had to post the 11:30 am update up top, since it was great news... not sure what to do with this update now... but this is an update from about 30 minutes ago...

11/19/11  12:10 am

Update : 10/18/11 @ 11:30 am - The test showed blood flow to Jaime's brain. A small step that buys him more time for God to continue working a miracle. Keep praying everyone. Need Jamie to now come out of his comma.

(Please play this as you read)

Not sure where to begin... I probably don't know many of you now, since I really haven't been on Active Rain in 2011 and because AR has grown tremendously with new faces.... and many of the older members are either gone or not on as much. So I am not sure what has been mentioned on AR. But for anyone that knows Missy Caulk, her son Jamie was in a serious car accident on Thursday. I don't know the details, except what has been mentioned on facebook. Missy has a special place in my heart, because I have gotten to know her over the years and she is just an incredible giving person that shares so much of herself. We haven't met in person, but have talked on several occasions, and I consider her like family, like an older sister. She was one of the first 20 people or so that I got to know when I first joined AR in October 2006. And because of AR and Facebook, I have gotten to know parts of her family throughout the years.

This was an update from Missy herself late Friday night. 

"Please continue to pray for my son Jamie. He is in vanderbilt trauma unit. He is Intubated and needs to wake up. Bad car wreck. He has no movement at all now. When he arrived at trauma was awake. Then crashed. They brought him back and Intubated him. He has had no sedation since 2:00 but is not waking up. We are praying for a miracle."

Update from Matthew Caulk of about 24 hours ago - "The latest update is Jamie had a catastrophic stroke caused by a very rare chain of events including the way he was born. At this point we need a miracle or Jamie is going to progress and be brain dead rather quickly. Love everyone so much for all the prayer and support now. God can, has and will heal Jamie, my personal belief is Jamie and Jesus are working out those details this very moment in the Kingdom."

Matthew, Jamie's brother, had shared the song below on FB.... and about 30 minutes ago, I heard this song, the one that I mentioned above, on Pandora. And it kind of sounded like Jamie's song at first... so I ended up listeing to the whole song. Very touching.... as I listened to the song above, it reminded me on how we have many roads ahead of us, that are unknown. In this case, we want Jamie to come back on one of these roads, leading back to his family. And I just wanted to put this out there, asking for your thoughts and prayers for Jamie and the Caulk family... That Jamie comes back to us.... Please dig deep down, because I have always felt AR as a family in one way or another. Thanks

ps.. sorry if this might have been a litle jumpy, just lost for words. And for those that might not know, Christa Caulk Stewart here on AR is her daughter, who is married to our own Bob Stewart... who I have gotten to meet on several occasions. Just awesome people....

Here is a quick story from the local paper - Jamie Caulk seriously hurt in crash

10/17/11 - 10:00 pm - I followed up with Bob and just got a text from Bob.... The doctors will be doing a test in the morning to determine if Jaime has any blood flowing to his brain. The doctors say he will need a miracle to survive... thanks

 10/18/11 - 12:15 am -   Matthew Caulk just gave me a quick e-mail update... Not wanting to give negative news, but apoparently the doctors are pushing them to make a decision.. the doctors will be meeting in the morning to see if Jamie is getting any blood to the brain.  Matthew is just thankful for all the support that you all are showing, which has given them hope, more hope, in staying strong... thanks everyone.... 

Here is Jamie who is the anchor for the Univeristy's school news.

Visit msnbc.com for breaking news, world news, and news about the economy

 Missy had shared this about 45 minutes ago.

Active Rain has changed so much since I first started in October of 2006. I remember the membership to be around 6,000 or so. Now it's up over 213,000 people. Many of you might not know who I am because my blogging has slowed down considerably in 2011 and so has my overall participation. Several reasons... I have been writing for 4 1/2 years. My first 2 years, I was writing like 30 blog posts a month. And as many of you know, it can be time consuming when writing, reading, and commenting.  Also, I love mortgages, helping those with questions, and to educate them. But mortgages in general are just boring. I just hit my 19 year anniversary 3 weeks ago. I love comments like the next one, but I have to be on here like 24/7, paying it forward, writing good stuff, and so much more. I just got burnt out.

Just the other day, I had a consumer call me from California who found me online and said, "you write some very good stuff. I have been reading your posts on The FHA Expert and a few on Active Rain." He then asks me a question and told me that 3 other lenders said it can't be done. I said that they are wrong, that it's allowed by HUD/FHA. Hey, I just always prided myself in putting good quality content out there that is easy to understand. But I just haven't done as well in recent years for several reasons.

Good news though.... I can take what I have learned in blogging, thanks partially to Active Rain and several of its members, and put it too good use. I have been working on a project for myself, a web site all About Philadelphia.

The general description :

At MyPhillyAlive, I want to share the excitement that the City of Philadelphia resonates. Sharing the passion within, from the people of Philadelphia. At MyPhillyAlive, I'll be talking about restaurants, fun bars & the city night life, the history of Philadelphia, Philly attractions & events, the arts, sports, and much more. I want people to add their experiences regarding Philadelphia, even if they are from out of town.

On top of it all, I will also be doing social media. Teaching those the basics, about blogging, the major social media platforms, how to engage, some tools, and reviewing the business's or individual's social media plan. I will also be doing this for my current company regarding mortgages. And I will still help regarding mortgages, but I am excited about keeping my passion going in blog posts when it comes to Philadelphia, especially the history of Philadelphia.

So...  this is where I have been, since I haven't been on Active Rain in the last 3 months or so. Here is a link to my facebook fan page : MyPhillyAlive - My web site will be live in about a week.You can also find me on Twitter @MyPhillyAlive .

Thanks, Jeff

Realtors should know basics about Mortgages in New Jersey– Especially FHA Mortgages

When it comes to realtors giving in depth advice about mortgages, it does crawl under my skin. Some of you know this, and some of you disagree with me.  Some realtors think a realtor should go as far as to pre-qualify a buyer. One reason from a realtor was that he could do it better than many of the loan officers. Sure, there are bad loan officers and good loan officers. I can make the same statement in regards to realtors, and in most other professions. But lets put all of that aside, because that is not what this post is about.

So why do I bring this up then? I will say that a realtor needs to know the basics when it comes to mortgages. They are suppose to be knowledgeable when showing homes, right? How does one usually buy a home?  Usually with a mortgage. And in today’s mortgage arena, there are really only four types of mortgages.

Conventional Loans – easiest of all appraisals and what is required.

FHA Loans – appraisal issues are not as strict as the rumors that say FHA is harsh. Maybe back in the day, prior to 2002. The VC sheet was even dropped from the appraisal almost a decade ago. Broken doors, cracked windows, cracks in the foundation,  chipping and pealing paint, and mold are usually the biggies.

USDA Loans – people need to be aware that not only does the lender underwrite the appraisal, but that the USDA needs to review the appraisal.

VA Loans – in between conventional and FHA requirements.

Each mortgage is different, and some are more lenient than others when it comes to appraisals. But here is the part that a realtor should focus on. Many sellers and listing agents want at least a pre-qualification letter from the buyers mortgage company. It makes total sense and is not unreasonable. The pre-qual letter should state what kind of mortgage it is, right? Well, if my pre-qualification letter says that the buyer has been pre-qualified up to x,y,z; with a FHA mortgage, then that means that buyer is getting a FHA mortgage.

Here is the dilemma or issue at hand. I know of a buyer getting a home with a FHA mortgage and the sales agreement was written as an ”as is” purchase. Which means that the seller will do no repairs. Well, the house is not only a mess, but several things are wrong with it. The main issue is that it has mold, and they knew about this because there was a previous buyer, in which that transaction fell a part. Secondly, there are like eight electrical outlets that needs covering and an electrical box. Anyone with little experience regarding FHA mortgages would know that this would need to be addressed and fixed prior to settlement. Regarding the mold issue, the realtor said FHA doesn’t get worried about mold issues. The other issue is that the buyer is using a friend as their realtor who really only does commercial deals. So you can see why that realtor didn’t even pick up on these “red flags”, even though the house is being sold “as is”.

Here is a picture showing you one of the outlets. You tell me what you think.

As you can see, not only does the box have to be covered, but that the wires are exposed.

Conclusion : Realtors should know the basics about mortgages, especially FHA mortgages, since this is about 40% of all mortgages in today’s real estate transactions. In some areas, FHA mortgages are even 50% or higher in specific markets.

Let’s try to look at this another way. Would a buyer really want to buy the property if it has some major issues? Shouldn’t a realtor be focused on the condition of the property prior to listing it? If the realtor sees some potential “red flags”, and they aren’t sure, wouldn’t it be wise to call a few lenders to find out. As a sales person, shouldn’t that person know his or her product? If selling a home, not only knowing the condition of the home, but understanding the basic appraisal requirements for the basic mortgages?  Just some food for thought. Because I have always said, “the stupid question is the question not asked if it has been thought about.”

So in my honest opinion, realtors should know the prime basics of mortgages in New Jersey. The primary focus should be on appraisal issues.

I thought Inna Hardison was spot on, regarding regarding Klout and what your number means, especially as a realtor. I see many people focusing on this, especially some realtors... and I share the same opinion as Inna. Besides, if you spend too much time online, socializing with Facebook & Twitter, this is just one main way of increasing your score. It still doesn't mean that you are an expert at real estate. And in my opinion, with most businesses out there. #justsayin

Mortgage 101 in New Jersey – Getting to know the borrower’s wants and needs

In today’s delicate world of mortgages in New Jersey and any where else, getting a mortgage not only takes understanding, but patience. I am still finding many loan officers trying to fit that round peg into that square hole. Let me explain….

I currently have a client whose realtor got him to talk to her loan officer. This loan officer has my borrower pre-qualifed for about $35,000 more than I do. How can there be such a difference?

Before I get into the differences, let’s try and establish a pattern of questions that should be talked about, when a loan officer interviews a borrower.

• What mortgage payment in New Jersey would you feel comfortable with, to include your property taxes and homeowners insurance. Please give me an honest and realistic amount that you would not want to exceed.
• Secondly, what areas would you prefer to live in. This is very important, because it comes down to the different property tax amounts. Depending on why you would want to live in that town or neighborhood, would help determine your monthly mortgage payment because of the property taxes.
• My next question would be the type of property that you would want to purchase. Whether it would be a single family dwelling, a townhouse, a condo, etc. This helps me determine your payment as well, because there could be association dues or PUD fees based on the type of property and location.

In my opinion, I consider these 3 questions to be the most important that should be asked in the beginning, besides their name, credit scores, credit history, and income information. I actually get to those sets of questions next.

So, with that addressed now, let’s get back to my story.

My borrower wants to live in one of two places, because one of his main focuses is to be in a good school system. Keep in mind, they have 1 child at 8, another at 1, and one on the way. How do I know all of this? I got to know my borrower.

Now, the areas that they are interested in, the property taxes run about $6,000 a year on $180,000 properties. This other loan officer has them pre-qualified at $200,000, but using property taxes of $5,200. To be realistic, if buying a $200,000 home, the property taxes average around $7,000 a year. As you can see, this could become a huge issue for the borrower when shopping for a home in their respective areas, to later find out that they don’t qualify based on higher taxes. But it gets better.

In my very first question, I asked what mortgage payment that he would feel comfortable with. If I used the $200,000 property, even at the unrealistic property taxes of $5,200, he would be about $117 over his comfort zone regarding the mortgage payment. With the correct property taxes, not only does he not qualify for a mortgage, but his monthly nut would now be about $267 more than what he would be comfortable with.

Conclusion : In my 18+ years in the mortgage business, even after the government tightening down on loan officers with their licensing requirements since the beginning of 2011, I keep seeing these basics get over-looked more than they should.  It shouldn’t be about who can pass a test, even though the test itself is only about 30% mortgages directly. But about asking the proper questions and preparing the borrower.

I have a borrower right now who has a 617 credit score and that their current loan officer is telling them that they need a 620. Once they get that 620, they can close. Settlement was suppose to be June 30th and he keeps saying it will be soon. yet when I reviewed their current credit, it doesn’t mean the credit guidelines. I wrote about this example that happens more than it should. Please read - Your credit score is more than just a number -

Hey, it’s a dog-eat-dog world out there. I know it’s easy to trust someone when they say such words as : “trust me”, “no problem”, I promise”, “I guarantee”, etc.  Who do you trust?  Get to know your loan officer, listen to how they talk, and how confident they sound. Not just the sales words that one might use. I call these words The Red Flags of mortgages.   If you listen close enough, you can sometimes hear someone contradict themselves. Just food for thought.

Shopping for Mortgages & Shopping for Interest Rates Smartly

You now want to buy a home and need a mortgage. You would think it would be easy to call around to mortgage companies and ask, “What is today’s interest rate”. Sounds simple, right?  Au contraire mon frere…. On the contrary.

There are a few misconceptions that many have when shopping for interest rates.

• That all lenders have one basic rate to offer

• That big lenders or big banks have better rates than smaller lenders and can give discounts

• That referrals will get you a better interest rate

All lenders have many different types of interest rates, which is dependent on many different factors. The end result, all rates should be relatively close, as long as you aren’t being deceived or that your rate will be baited and switched. Why should interest rates be the same or very close? Because we all get the rates from basically the same place, which are dictated by investors on Wall Street.

Larger Banks/lenders vs smaller lenders – I just heard from a potential client shopping for a mortgage that her realtor told her that BofA can give her discounts on the rates. First off, this coming from a realtor that is speculating. This is a blanket statement, because again, way too many factors involved when determining interest rates.  Food for thought… Just because a bank or lender might be servicing your loan from the get go, doesn’t mean that is how they can offer lower rates. In reality, even that bank or lender that is servicing your loan, has sold bits and pieces of it to other investors. Big Bank A might own 70 percent of your loan, even though they are servicing it, yet two other investors might own the rest of the loan. Hence why some foreclosures were becoming difficult at times, trying to determine who owned how much of the primary mortgage.

When it comes to getting a referral from a friend, co-worker, realtor, etc; one just can’t assume that all will go well and that you will get the best deal.  I have three new stories just from the last several weeks that would make you cringe. Story A – My sister referred me to a friend of hers after hearing of her most recent mortgage story. Back in December, this couple tried refinancing and was promised an interest rate of 4.5 percent. After about 2 months, they finally found out that this loan officer never locked in their interest rate. And this was a referral from a friend. Just recently, they got another referral from someone at their church. I happened to get the call 3 days later and after reviewing the different cost sheets, I was about $5,500 more in total costs. But wait, the other loan officer was very misleading in what they estimated. This person didn’t calculate their 30 days of interest in the pay off, was $100 lower per month on the property taxes, only escrowed 3 months worth of taxes when I estimated 5 months, and two other items. All of these items aren’t lender related, but 3rd party estimates. After it was all said and done, I was about $48 off. Yet this person had an interest rate that was 1/8 percent lower in me. And guess what, there was one important question that wasn’t asked by the other loan officer, in which carried a pricing penalty from any lender/bank for this particular loan.

Many different factors involved when shopping for a mortgage or shopping for an interest rate

Goals – What are your goals, for the next 3, 5, 7, and 10 years. This could help a good loan officer determine if you should pay points or not, or what mortgage program to put you into.

Credit scores- Your credit scores are a huge factor when it comes to determining your interest rate and or the penalties because of your credit scores, aka fico scores. – Understanding credit scores – Read the series at the bottom

Interest Rate Lock-In Period- Such an important detail that is usually not mentioned to borrowers when shopping for that all almighty interest rate. How long is my interest rate good for and when can I lock it in should be talked about. I once lost a deal to another loan officer who was beating me out by 1/8% and $500, but found out that he couldn’t lock his rate in until the appraisal came back. This could be a difference of 3 to 7 days, and interest rates could get worse. Besides, the loan officer in a few days could just raise the rate an 1/8% and say that rates got worse, but did they? Key Point – You need to shop on the same day, because rates change daily, sometimes twice in one day.

Loan Amount – Believe it or not, the size of the loan amount will have some impact on your interest rate. All lenders have a basic profit margin that needs to be met on each loan. The lower the loan amount, the more points it may require or a higher rate that pays more premium back to the lender.

Size of down payment – This holds more true for conventional loans, because Fannie Mae and Freddie Mac have pricing hits depending on how much you put down and what your credit scores are. Please read : Conventional pricing hits

Conclusion – One size does not fit all. It might seem simple, like when buying a new television, as long as you know the model that you want. Then all you have to do is pick the 3 nearest stores and see who has the lowest price. As you can see, when shopping for an interest rate, there is a lot more involved. Something that I have witnessed 3 times in the last 2 weeks are borrowers that weren’t locked into their rate and then rates changed on them. The moral to this story is that any loan officer can bait you with a little better rate at first, if they aren’t going to lock you in at time of shopping or mortgage application. 

Lastly, just because one has advertised a low rate, doesn’t mean it’s true. All of the factors that I mentioned above need to be found out before offering any such rate.

On another note, I have included some very important articles below that should help you better understand the mortgage shopping process.

For more info regarding shopping for interest rates and shopping for mortgages, please read :

• I want the same interest rate my friend got

• Locking in interest rates – Knowing the facts

• Low interest rates published on the internet

• All Mortgages should cost the same – by : Ken Cook

• Finding the best interest rate

• Mortgage Advertising can be very deceptive

• The myths about Zero point mortgages vs paying points

• Shopping for mortgages

Mortgage Market Report - Interest Rates hit historic low for 2011

As of yesterday, mortgage interest rates were hitting historic lows for 2011. Today was the key focal point if rates were to continue to go lower based on non-farm payrolls and on unemployment.  As of this morning, the news is reporting that non-farm payrolls only increased by 54,000 in May, significantly less than 150,000 increase that the economists had been expecting. Regarding the private sector, private employers only added 83,000, instead of the 180,000 that was anticipated. And unemployment rose from 9.0% to 9.1% the month prior.

Depending on your credit scores, the type of mortgage, your down payment, and your loan amount, interest rates yesterday were from 4.375% to 4.875%. As of right now, the FNMA 30 year 4.0% coupon is up 41 bps at $101.22 and the US 10 y T-note is up 59 bps at $101.38.

Summary : What does this all mean for today?  That interest rates should be getting even better today. Another reason for the MBS’s and bonds getting better is because it looks more attractive for those countries overseas such as China, who look for good investments.

For those of us that keep track of this information, I had been advising clients to wait until today’s news, even though rates were the best that we had seen for 2011.  I will be locking in several borrowers today that will be closing in the next 10 to 30 days. Yes, there are a few indicators that could even drop rates a little more for next week. But in my experience, no matter how one might tend to read the markets and those indicators, just a small hiccup could reverse all of these gains. And what goes down, will go up, but ‘when‘ is the question. Some so-called experts will tell you to float cautiously, but with interest rates literally dropping about 3/8 of a percent just in the last two weeks, it’s my opinion that it would be a huge gamble to lose these excellent gains.

For more news like this, you can always go to the www.fhaloansfhamortgages.com