Archive for December, 2007
Picture worth a thousand words?
Here is a chart showing new home sales since 1991. See the same trend I do? You could probably add a few months to the chart and rename it “New Home Prices” with a different scale to the left.
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Read More..>>FICO Score Risk Adjustments
Recently several of our investors have adopted Fannie Mae’s “risked based pricing” adjustments which increase the cost of a mortgage based on the borrowers credit score and loan to value. FNMA was using some risked based pricing for loans with lower credit scores but until recently was fairly limited. Essentially this means if you [...]
Read More..>>The Coming Housing Boom
We have a pretty active client survey system in place (thanks to Softvu and Mortech) to find out the status of potential purchase mortgage clients we have not converted. When queried about their status, an increasingly larger percentage of these are telling us two things;
I would like to buy a home but I have to [...]
Read More..>>What is a Pre-Approval?
A pre-approval is the process by which a mortgage lender gathers your income and asset documentation, determines the down payment amount and reviews your credit to make a decision regarding your qualification for a mortgage. Pre approval letters communicate that the loan officer has obtained the initial documentation required and that the borrowers qualify for [...]
Read More..>>Bait and Switch?
I’ve been hearing from different sources recently the claim of “bait and switch” in the lending industry. Unfortunately, it’s almost always lenders pointing fingers at other lenders. Banks point at brokers, off-line lenders point at on-line lenders, local lenders point at out of state lenders, independent lenders point at builder controlled lenders etc. [...]
Read More..>>Are All Mortgage Lenders’ Rates The Same?
Not necessarily. One lenders rate/point/costs option may be significantly better then another’s for a variety of reasons such as:
• The overall cost structure of the company producing the loan. In other words, their overhead might be higher or lower than a competitor.
• Incentives paid by the investors that [...]
What’s behind my home mortgage rate quote?
Home Lending Mortgage rates are a function of mortgage backed securities that are traded on Wall Street. Loan officers receive pricing updates many times a day from their secondary department or directly from the lenders that will be buying the loans. It is not uncommon that one particular investor will update the rates they [...]
Read More..>>Our version of “how to shop for your mortgage”
You’ve just signed the contract on your new home. You and your Realtor have looked long and hard for the perfect home and have negotiated a fair price. Your next step? Choosing your mortgage loan. Believe it or not, your decision on the type of financing and specific lender may have a larger impact on [...]
Read More..>>“Local” Lender?
We occasionally talk to potential clients that tell us they are going to use a “local lender”. We understand the clients need for a high level of “comfort” in their lender. When we are not chosen as the lender I see it as our inability to communicate to the potential client why we are [...]
Read More..>>Where is RMC Vanguard Mortgage Corporation?
Where the heck is RMC Vanguard?
Well, that’s easy. In 2006 we were in Maumelle, Ar. We were also in Bonney Lake, Wa., Lolo, Mt., Stuarts Draft, Va. and Jamaica Plain, Ma. Of course you could also have found us in Los Angles, Seattle, Houston, Miami and Chicago along with 1127 other US [...]
