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The Key to Closing with a Mortgage in Today's Market

I received this from our new Mortgage connection Mike Smalley of Waterstone Mortgage.  Most people don’t realize how important a “Go To Bat” mortgage association has become in the past year.  Deals have been lost more than we would like to admit due to the big brand banks not being able to get it done.  Underwriters have created new rules almost daily and we are about to see the FED’s stick their noses in the mix to make it even more impossible.  Mike has a great track record with CBR over the past 30 days and we are encouraged by his get it done attitude. Please read below.

Happy Monday Peter!

Today is the 24th day of 2011 and I hope this e-mail finds you doing awesome and on track to exceed all of your 2011 business and personal goals. I know it has been a while since my last "Minute". This is mainly because I want to only send out material that I feel is 100% useful to you and your business. Therefore, there will be times I send one out per week or times where a few weeks pass between my "Minutes".  My team and I are excited about every opportunity to work with you and your clients this year. Please let us know how we can help! Here's your update...

10% Down, NO Monthly PMI!?!

Yes, Waterstone Mortgage Corp. has various ways to help your buyer afford more home by NOT having to pay PMI each month. With interest rates on the rise, this type of loan structuring is DEAL SAVING!!! Check this out, too: for certain buyers, we can structure a loan with as little as 5% down with NO Monthly PMI. *These types of loan structures are for Conventional loans. Please call for more details or if you have any questions.

97% Financing on a Conventional Loan?!?

Yes, this too has become available just recently. HOWEVER, this is more sizzle than substance. Let's face it, the rate will be worse than an FHA rate and the monthly mortgage insurance is higher than an FHA loan. Moreover, this loan is only for the most qualified borrower (i.e. 720+ credit score and a low debt to income ratio). Therefore, we will not look much at this loan unless it is someone who needs minimal down (3%) on a loan amount between $350k and $417k.

Nevertheless, this is evidence that lending in Florida is slowly becoming more relaxed due to the market beginning to be more solid than the previous few years.

Seller Paid Rate Buy-Downs?!?

We have been hearing a lot lately of getting sellers to contribute extra money to the buyer towards buyer's closing cost in order to "buy-down" the buyer's interest rate to help the buyer qualify and / or be more comfortable with the payment. Although there are times this makes sense, the current interest rate market is not in line for this tactic to fully work its magic. Instead, your seller should look into paying for the buyer's mortgage insurance all up-front at closing which will hands-down help the buyer qualify for more home and / or feel more comfortable with the payment. *This goes hand-and-hand with the "No Monthly PMI" loan mentioned earlier. Please call me for all of the details.

*URGENT* THIS SECTION IS A MUST READ

Why 40% of the Loan Originators you know will not see 2012...

I do not know if you are aware or not, but April 1st, 2011 marks a game-changing day in the Mortgage Profession. On this day, it is scheduled that per the Federal Reserve AND the Frank - Dodd Bill that Loan Originators will have their compensation regulated (drastically cut). This means Loan Originators will have to do more work for less pay. However, what is ironic is that it does not regulate what the actual lender can make. This just regulates what the lender can pay its employee. This would be like the Federal Government telling you that your Broker can make 3% but you cannot make more than 1% on your listing. This regulation, on top of new licensing requirements, is expected to force more Mortgage Professionals out of the industry at one time than in any other time in known recent history. Waterstone Mortgage Corp. has been preparing for these changes for the last 18 months. We are positioned to survive, thrive and grow market share in 2011. As you and your colleagues see Mortgage Loan Originators you use / refer leave the business, please know you can turn to us to help you and your buyers. As you hear of Mortgage Loan Originators you know whose employer no longer pays them what they are worth and / or gives them the support that they deserve, let them know you know of a local lender who does BOTH and will be more than happy to talk to them about joining our team. 2011 is going to be a crazy year and Waterstone Mortgage Corp. promises to be there every step of the way to support you, your buyers and anyone else you know!!!

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