My New Blog

Hello again,

I wanted to let you know what I have seen in this turning market.

Thanks to the Lord for keeping me busy in this volatile market.

Truth be told, almost everyone I know in the business is working harder to get the same business or their numbers are declining.

Here are some tips that I want to share:

• Make sure you are getting qualified by a Loan Officer that is interested in you and the process not just the pay check.  How do you figure that out, ask them questions; don't just take their word for it.  For example, Do you see any problems lurking in my file etc.  It would not be a great situation if you got approved, got the contract and had to back out of it because you couldn't REALLY qualify.
• Pick an LO that is willing to work when you need the help- I have been getting calls lately from people who are not happy with the response time of their LO.  Many of my competition works 9-5 and when they are off the clock, they are off.  That is not the case with me.  I give all my clients my cell number and let them know that they can contact me. 
• Deal with a Loan Officer/Bank that is in the same time zone-  I have recently heard of some horror stories about closing at 9 am our time that are being funded by web companies in CA.  Please keep in mind that it is 6 a.m. there and you may not be able to contact anyone for 3 hours.  That is not what you want if you are in a bind or if an error was made.  This could be a very bad situation for all.
• Get your credit up as high as you can- This will help in several ways.  It will help your debt to income ratios, your chances for qualifying for a mortgage and it may help you to get a cheaper rate and cheaper PMI (if your loan is over 80%).  Feel free to email me (rbradly@capitalfmc.com) and I can send you some information about Credit Score calculating and raising your score.
• Make sure you have 3% down (or a gift for 3% down) plus closing costs.  In a nutshell, there are no 100% programs any more.  Please call me as I have some creative options that we can speak about- 610-825-2389.

I found this write up both interesting and encouraging.

Recently released statistics from the regional Multiple Listing Service, TREND, confirm housing growth for the second month in a row in Chester County. Sales in the county increased in March as compared to a month earlier while prices also showed slight gains, according to the Suburban West REALTORS® Association.

Total existing home sales – including single family, townhomes, condominiums and co-ops – gained 19% in March from February. While sales were down 28% from a year earlier, the month to month trends are starting to show growth after months of decline as the fallout from the jumbo loan crunch begins to ease.

Jim Ryal, 2008 Chairman of the Suburban West REALTORS® Association and a REALTOR® with Prudential Fox & Roach, REALTORS® commented, "In talking with REALTORS® throughout the market, there does seem to be increased traffic at Open Houses, calls to the office and general interest from the consumer. Part of this is the traditional spring market. However, the interest hasn’t dried up mostly because of continued low interest rates and the availability of affordable housing throughout the county."

According to Freddie Mac, the national average commitment rate for a 30 year, conventional, fixed rate mortgage was 5.97% in March, slightly up from 5.92% in February; the rate was 6.16% in March 2007 and 6.32% in March 2006. As of today, the average rate of a 30 year conventional mortgage in the Philadelphia area is 6.16%

"While sales may not be at the record levels they were two years ago, they are still strong. And as important, we are not seeing the significant price drops being experienced in other major markets," added Ryal.

The median existing home price for single family homes was $310,000 in March, down 1.25% from March 2007 when the median was $314,000. Overall, the percentage gain (19%) over the last four years (March 2004, 259,900 median price) continues to be substantial for the average Chester County resident.

Lawrence Yun, the chief economist of the National Association of REALTORS®, provided an optimistic forecast of the national market last week: "Existing home sales could start to show a sustained increase within a few months, unless there are some additional economic problems or excessive inflationary pressure," he said. "We’re looking for essentially stable sales in the near term, before higher mortgage loan limits translate into more sales in high cost markets. The wider access to affordable credit should increase sales activity notably this summer as pent up demand begins to be met."

Recently released statistics from the regional Multiple Listing Service, TREND, confirm housing growth for the second month in a row in Delaware County. Sales in the county increased in March as compared to a month earlier while prices also showed slight gains, according to the Suburban West REALTORS® Association.

Total existing home sales – including single family, townhomes, condominiums and co-ops – gained 27% in March from February. While sales were down 25% from a year earlier, the month to month trends are starting to show growth after months of decline as the fallout from the jumbo loan crunch begins to ease.

Jim Ryal, 2008 Chairman of the Suburban West REALTORS® Association and a REALTOR® with Prudential Fox & Roach, REALTORS® commented, "In talking with REALTORS® throughout the market, there does seem to be increased traffic at Open Houses, calls to the office and general interest from the consumer. Part of this is the traditional spring market. However, the interest hasn’t dried up mostly because of continued low interest rates and the availability of affordable housing throughout the county."

According to Freddie Mac, the national average commitment rate for a 30 year, conventional, fixed rate mortgage was 5.97% in March, slightly up from 5.92% in February; the rate was 6.16% in March 2007 and 6.32% in March 2006. As of today, the average rate of a 30 year conventional mortgage in the Philadelphia area is 6.16%

"While sales may not be at the record levels they were two years ago, they are still strong. And as important, we are not seeing the significant price drops being experienced in other major markets," added Ryal.

The median existing home price for single family homes was $200,000 in March, no change in comparison to the median price for the county in March 2007. Overall, the percentage gain (37%) over the last four years (March 2004, $146,000 median price) continues to be substantial for the average Delaware County resident.

Lawrence Yun, the chief economist of the National Association of REALTORS®, provided an optimistic forecast of the national market last week: "Existing home sales could start to show a sustained increase within a few months, unless there are some additional economic problems or excessive inflationary pressure," he said. "We’re looking for essentially stable sales in the near term, before higher mortgage loan limits translate into more sales in high cost markets. The wider access to affordable credit should increase sales activity notably this summer as pent up demand begins to be met."

Recently released statistics from the regional Multiple Listing Service, TREND, confirm housing growth for the second month in a row in Montgomery County. Sales in the county increased in March as compared to a month earlier while prices also showed slight gains, according to the Suburban West REALTORS® Association.

Total existing home sales – including single family, townhomes, condominiums and co-ops – gained 27% in March from February. While sales were down 26.5% from a year earlier, the month to month trends are starting to show growth after months of decline as the fallout from the jumbo loan crunch begins to ease.

Jim Ryal, 2008 Chairman of the Suburban West REALTORS® Association and a REALTOR® with Prudential Fox & Roach, REALTORS® commented, "In talking with REALTORS® throughout the market, there does seem to be increased traffic at Open Houses, calls to the office and general interest from the consumer. Part of this is the traditional spring market. However, the interest hasn’t dried up mostly because of continued low interest rates and the availability of affordable housing throughout the county."

According to Freddie Mac, the national average commitment rate for a 30 year, conventional, fixed rate mortgage was 5.97% in March, slightly up from 5.92% in February; the rate was 6.16% in March 2007 and 6.32% in March 2006. As of today, the average rate of a 30 year conventional mortgage in the Philadelphia area is 6.16%

"While sales may not be at the record levels they were two years ago, they are still strong. And as important, we are not seeing the significant price drops being experienced in other major markets," added Ryal.

The median existing home price for single family homes was $263,830 in March, a small decrease of 2% in comparison to the median price ($270,000) for the county in March 2007. Overall, the percentage gain (19%) over the last four years (March 2004, $221,000 median price) continues to be substantial for the average Montgomery County resident.

Lawrence Yun, the chief economist of the National Association of REALTORS®, provided an optimistic forecast of the national market last week: "Existing home sales could start to show a sustained increase within a few months, unless there are some additional economic problems or excessive inflationary pressure," he said. "We’re looking for essentially stable sales in the near term, before higher mortgage loan limits translate into more sales in high cost markets. The wider access to affordable credit should increase sales activity notably this summer as pent up demand begins to be met."

I wanted to add this article to my blog even though it is not Mortgage related.

I feel that this is a potential problem that could hurt any one of us, especially around tax time and the rebate season.

Please read and please remember do not give your personal info to just anyone.

http://finance.yahoo.com/taxes/article/104668/Don't-Fall-for-IRS-Related-Scams

As always, do not hesitate to call me, I can be reached at 610-825-2389.

Have a wonderful day,

Ron

I have been asked the same question over and over so today seems like a good day to set the record straight.

QUESTION:

The Fed cut the rate by 3/4s today; what do that mean for mortgage rates?

Actually, not much.  Mortgage rates are based on long term debt and the Fed rate deals with short term rates.  So in essence, they are not inter connected.

They work as opposites in many cases.

Rates went down in both markets today in response to the bleak outlook of the economy. 

Stocks fell, the Fed dropped it's rate and Mortgages are very attractive.  The exact opposite could happen tomorrow (although not expected)

I hope this helps!

Hello,

As I have mentioned before, FHA is an amazing product for the right people and is not perfect for everyone.

Conventional loans are generally the loan you want to be in.  Why, they are, for the most part, cheaper in the long run. 

When you are shopping for a loan ask the Loan Officer why they are suggesting the particular program to you.  Ask them if you qualify for a Conventional loan.  If the answer is NO, ask why!  The next step is FHA then Subprime. 

It is your right to get the answer, we work for you!

Have a wonderful day,

Ron

610-825-2389

Written by Ron Bradly Tuesday, December 18, 2007

I want to start out by saying that I love what I do!  Below will be a few examples of why my job is so gratifying.

The is a hierarchy of loans.  The best loans are made by Conventional lenders, next is FHA, then Sub prime and lastly, Hard Money.

I do whatever I can to get you Conventional then FHA, you get the idea.

Here are just a few examples of what we have in our pipe line this month (only FHA)

1) A gentleman called me for a quote, he had another quote from a competitor as well.  He was offered 8% on a 30 year mortgage from a sub prime lender.  I was able to lock this gentleman in at 6.375% for the same 30 year product.  Thus saving him over $175 per month and paying off back taxes and two credit cards.

2) I am refinancing a friend of mine who was put into a loan a year or so ago at 7% on the first and 9% on the second.  We just locked him at 6.25% on a 30 year fixed product.  He will be saving over $120 per month.

3) I did a loan for a friend of mine one year ago.  He went from a sub prime program to an FHA loan.  He was able to pay off over $40k of debt and help his situation out tremendously.  He has been paying 7.25% on a 30 year product.  He is now eligible for an FHA Streamline refinance.  This basically means without an appraisal and a full application, he can get the current rate which is much less today.  I will be able to take him for a 7.25 to at maximum 6.5%, again on a 30 year fixed.

The only people who do what I do who do not like FHA as an option are the ones that DO NOT have the ability to do FHA loans.  It is very hard to get licensed to be able to deliver FHA products to the public and most companies can and will not qualify.

I hope you get the idea that I like what I do and love saving people money!

Have a wonderful Holiday Season,

Capital Financial

FHA is a great program and it is not good for everyone. I will always try to get my clients approved with a Conventional product before looking into FHA.  Why you ask?  Conventional rates and programs will be cheaper in the long run and more beneficial to you, my client.  Once we get a decline, we can go the FHA route.

FHA offers great rates to people with not great credit.

Here are 2 scenarios that I want you to hear about.

1.  A couple came to me and they were in a lot of debt (over $50k) and they were struggling to pay their bills.  Their credit was not very good shape (right around 600) because of the amount of debt etc.  They could not qualify for a conventional loan.  We then, turned to FHA, did a Cash out refinance to 97% of the value of their home, got them a rate under 7% and away we went.

They have now paid all of their credit card debt off and are saving over $700 per month.  Their credit rating jumped up immediately (680 I believe) and now they can qualify for any Conventional Mortgage.

That was a WIN WIN for all involved.  Some Mortgage Reps would have taken them into the Subprime market and gave them a rate of 9-10% with a lower LTV and ultimately put my client in harms way.

2.  We keep hearing that the Industry is in shambles and that there are no loans for people with poor credit.  As you have heard me say before, they are just not telling the truth.

Just 2 months ago, I got an approval for a couple, through FHA, that had a 563 credit score.  The loan was for only 3% down.  The rate was also at 7%.  Does that sound bad to you?  I think it is incredible and proof that the media tells you what they want you to hear.

Please call me or send me an email if you have questions.  Again, the facts are not being told and I am here to help!