| Mortgage Minute Newsletter From Sam Thompson, Senior Mortgage Advisor Oct 2007- Vol 1, Issue 18
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Quick Links
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| Who we are. |
 Our Corporate Campus in Mt. Laurel, NJ
PHH Mortgage is one of the top ten originators of retail residential mortgages in the United States. We offer you unsurpassed service, a full range of programs at competitive rates, and the smoothest mortgage experience in the industry. In 2006 alone, PHH Mortgage provided $41 billion in mortgage financing for American homes, and every day we help more people fulfill the dream of home ownership. PHH Mortgage operates out of two main facilities in Mount Laurel , NJ and Jacksonville, FL - employing a combined total of more than 5,200 team players.
We've received numerous awards, including
Best 100 Places to Work in IT (Computerworld), Top 25 Companies that
Care, Training Top 100, and more. And, we were recently ranked #1 by
Inside Banking for our reliable closings and accurate Good Faith
Estimates and we constantly recieve 98%-100% "I would recommend"
ratings from buyers AND realtors in post-closing surveys.
CALL US SO YOU CAN SEE HOW WE DO IT! |
| Dear Sam, | ||
Hey listing agents, let me help the other agent's Buyers close Your Deals!
If
the buyers for your listings are having trouble closing, encourage the
Buyer's Agent to call us to help! We can close quick, in a couple of
days if you need us to! WE LOVE FAST CLOSINGS!
We just closed a VA LOAN in 11 days and
didn't break a sweat doing it. Our processors are really good and can
save your buyers a lot of aggrevation and money with better products
and closing conditions.
Get
us involved! Many listing agents already do and they are happy they
did! Just tell the Buyer's Agent that if they are having problems,
call me to save it for them and YOU!!
And, why not tell any agents that submit an offer with a pre-approval letter from a lender you do not know (or that you do know and you know better!) that
you want us to give them a price check so the closing will be smooth
and easy. Do this for your peace of mind and your pocketbook.
Sam Thompson
PHH Mortgage
Senior Mortgage Advisor ' The FHA and VA Guy '
843-230-7929
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What to expect at closing.
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FHA LOANS - Back in Style and ready to save the housing industry AGAIN!!
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Low "A"
paper rates, very low PMI, only 3% down that can be paid by the seller
with a grant program make this the best deal in the industry besides VA
for the borrower with little or no money!
Did someone say no money needed? Yes, no money from the buyer.
There are several non-profit programs out there that allow for some type of assistance to the buyer. Nehemiah is one of the largest non-profit organizations that allows the seller to give money for the down payment and closing costs. This program is approved by FHA which is part of HUD. Nehemiah can basically get a consumer into their dream home with no money out of pocket. FHA states that you must have 3% of your own money into the deal. And FHA typically asks for 2.25% as your down payment, which is included in the 3% total. This means that you would need to pay an additional 3/4%. But FHA also allows you to receive a 100% gift that can be used for both your down payment and closing costs. This gift can come from either a family member and or a non-profit organization. Nehemiah, AmeriDream, Genesis and other non-profit organizations that we work with allow for the seller to contribute up to 6% of the purchase price which can be applied towards the buyer's down payment and closing costs as mentioned above. They charge a flat fee for this service that can be paid by the seller, buyer, or even the lender. You can also combine that 6% with the seller contributing another 6% as seller contribution. What takes place is that the seller gives the non-profit organization the money which turns around and gives that money to the buyer as a gift. These gift funds can be for first time home buyers and even repeat buyers. There is no income limitations or geographical restrictions. And the best thing is that you don't even have to repay the money, hence the reason why it's called a gift. Overall, the only thing that needs to happen is to be approved by us for the FHA mortgage and for the seller to contribute the funds. And what is great about FHA is that they allow for 6% seller contribution. Another reason on how you can get into your dream home with no money out of your pocket. Between Nehemiah and the seller contribution, you could be in that house with as little as zero money. The easily recognized HUD symbol shown has given confidence, trust, and hope to first-time home buyers over many decades. HUD programs have enabled millions of people to fulfill their dreams of home ownership and enjoy a richer and fuller life. The HUD symbol signifies that discrimination based on race, color, religion, sex, family status, or disability is prohibited. Why are FHA loans such a vital force in home ownership?
Want to know the
really sad part? Thousands of people who were talked into doing a
subprime loan over the last few years with mortgage brokers who were
not FHA approved, could have gotten a great fixed rate FHA loan and
might not be in trouble right now with their adjustable high interest
rate loan!!
When using the Nehemiah program or any other non-profit companies in conjunction with FHA financing, underwriters discretion -- they will usually want to see a little cleaner file because you usually won't be investing any of your money into the transaction. They usually want to see little better credit scores, closer to 600. Now, you can have lower credit scores, as long as your credit history has been in good status in the last 1 to 2 years. The reason for this is because there have been more foreclosures recorded who have used these types of programs.After reading all of this, you might ask, what's the catch? All of this sounds too good. One negative aspect of FHA financing is that there is a maximum loan amount allowed in each county. Those loan amounts can be found here. https://entp.hud.gov/idapp/html/hicostlook.cfm
WE LOVE FHA AND WOULD LOVE TO HELP ALL OF YOUR BUYERS GET INTO AN FHA LOAN! WE HAVE SPECIAL GOVIE TEAMS FOR YOU THAT KNOW THE REQUIREMENTS SO YOU DO NOT HAVE TO MAKING YOU THE HERO FOR RECOMMENDING US!
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| When you are Green, Prospecting is Critical |
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That's not the way to prospect for new clients! If
you are new in sales, regardless of how well you know your stuff or how
friendly you are, you can't make any money until you get some
prospects. So, it is recommended by the experts that you spend 90% of
your time prospecting for clients. In other words, if you work 8 hours
a day, you should spend 7 hours and 12 mins trying to meet prospects
either on the phone, in person or via mail (snail or email). If you
work 10 hours a day you should spend at least 9 hours and so on.
8-9 AM email only - 4 contacts
9-11:30 AM phone (find a lunchmate) 4 contacts 11:30-1:30 PM lunch (popular restaurants) 2 contacts 1:30-3 PM phone 5 contacts 3-5 PM networking in public places 5 contacts 5-6 PM email only. (if needed to hit your 20/day goal)
And stop wasting time talking to all of those mortgage guys coming around asking you for a deal!
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Weekly Tip - Business Card Prospecting
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 Are you handing out your business cards?
The business card is probably the
most inexpensive way to get your advertising in front of people and
should be a part of your normal daily prospecting. Leaving your
business cards on desks, on countertops or just handing out to people
you meet can come back as a referral several months or years out. But
the thing that most people don't think about is that even if people
throw them away, they have to look at them and think about you for that split second before the toss.
And by having your friendly face and name in their mind, you'll improve
your chances of getting a call for the effort, when the opportunity
presents itself.
Keep in mind that you can solicit friends and family to help you hand out your cards too. These people might run across people in their travels that are talking about real estate which might give them a chance to hand out your cards too. Especially now that housing and mortgage stories are in the news every day, you know that conversations at the water fountain are coming up. So why not give them something to say about you too? Tell them about your recent successes and experience and how to sell you. Give them something good to say about the market too! Tell them that rates are great and expected to drop again and that housing is priced right in a buyers market so the time is right despite the negative news from other parts of the country. Tell them to fight back against Kramer and the other talking heads on TV with their opinions about the housing market! Tell that our market is doing fine and they don't have a clue what is going on here! Even in the worse market in the country, the good houses sell quick! And give them something to say about your brand too that can help leverage your net worth. Tell them about the things your brand can do to help them buy or sell their home in attracting good, qualified buyers from throughout the country. And, don't forget to leverage your mortgage advisor!
Tell them that if they are
considering a move or real estate transaction, they ought to call Sam.
He will take great care of you and will make sure that you do what is
right for you and your family!! You can hand out some of my cards
too! :)
For anybody referred to me, I'll
always promote you and help them see that you are the best choice for a
great realtor too. Let's help each other this way.
And don't forget to do these same things when you are prospecting too! Don't be shy because if you do, they might end up with another realtor! |
| Weekly Mortgage Market Commentary | ||||||||
| Don't let the financial markets squash your clients and your transactions!
Stay informed by reading my new daily "Daily Rate Lock Commentary" or
just call me to find out what is going on! If you want to be included
in this distribution, just call or email me. Remember, knowledge is
power and the more educated you are in your industry, the higher quality buyers
you are going to attract and that means easier closings, bigger houses
and more money in your "hip national bank!" And since rates are still
climbing, call us to get your clients in our 90 day rate protection as
soon as possible!
 Rate Lock Advisory - Sunday Sep. 30th
This week brings us the release of only three monthly economic reports for the bond market to digest. The first report of the week comes late tomorrow morning when the Institute for Supply Management (ISM) will post their manufacturing index for September. This index gives us an indication of manufacturer sentiment. Analysts are expecting a small decline from the 52.9 reading last month to 52.5 this month. The 50.0 benchmark is extremely important because below that level means more surveyed executives felt business worsened than those who said it had improved. This data is important not only because it measures manufacturer sentiment, but it is very recent data. Some economic releases track data that are 30-60 days old, but the ISM index is only a few weeks old. If we get a smaller than expected reading, I expect to see the bond market rally and mortgage rates fall further tomorrow morning. The next release is Thursday when the Commerce Department will post August's Factory Orders data. This manufacturing sector report is similar to last week's Durable Goods Orders release, but includes orders for non-durable goods. It can usually impact the financial markets enough to change mortgage rates if it varies from forecasts by a wide margin. Current forecasts are calling for a decline in new orders of approximately 2.5%. An unexpected rise could drive mortgage rates higher, while a weaker than expected reading should push them lower Thursday. The Labor Department will post September's Employment report early Friday morning. This report will reveal the U.S. unemployment rate, number of new payrolls added and average hourly earnings. These are considered to be very important readings of the employment sector and can have a huge impact on the financial markets. The ideal scenario for the bond market is rising unemployment, falling payrolls and a drop in earnings. Weaker than expected readings should help boost bond prices and lower mortgage rates Friday. However, stronger then forecasted readings could be disastrous for mortgage pricing. Analysts are expecting to see a slight increase in the unemployment rate to bring it to 4.7%, an increase in new payrolls of approximately 100,000 and a 0.3% increase in earnings. Overall, look for Friday to be the big day of the week, but tomorrow may also bring changes to mortgage rates. The bond market will close early Friday ahead of the Columbus Day holiday and will reopen Tuesday morning. This may create additional volatility in the markets as investors move to protect themselves over the long weekend. If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers. |
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Let me know if I can take an application for you anytime! And,
please let me know if you like the format of this email service. I
hope you are reading these so you can stay up on your profession and so
you can make more money too!
Also, I am available to do a "Hit the Ground Running Workshop" with
any agents interested in learning tons of things they can do to help
them succeed in Real Estate. I need at least 5 agents, brand new or experienced,
looking for some motivation to put this on for you that will take 2-3
hours, depending on your involvement! These are designed to be
interactive so you can learn more about yourself and so you will walk
away with a stronger sense of self-confidence too.
If you don't get at least 10 great ideas that can really help your business, I'll take you to lunch and give you a few more!
What are you waiting for? Gather support with 4 of your collegues and call me today!
We'll guarantee your closing date.
We're so confident that we will close when you say so, that if we
don't, we will reduce your interest rate by 1/8 of one percent for the
life of your loan.*
We offer FREE pre-approvals to qualifying homebuyers! With a mortgage pre-approval, you can shop for the home of your dreams with confidence. You'll know just how much you can afford and increase your negotiating power. **
We take pride in being a lender you can trust. As our mission states, "we promise to treat customers like family." We take this oath seriously, and our goal is to provide you with the superior service you deserve - guaranteed.
* Approved, conventional, purchase loans only. Closing date to be mutually agreed upon between customer and bank, and customer must provide all required documentation. Timely request for payment under guarantee is required. ¹Inside Mortgage Finance, Copyright 2006 |
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I hope you have a great week this week in real estate. Call me if I can help you with that!!
Sam Thompson - 'The FHA and VA Guy' 843-230-7929
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