“I Am Shopping for the Lowest Interest Rate”

“I Am Shopping for the Lowest Interest Rate”

 stuart miles44445

Really, what a concept, as if someone is actually going to call and say they are looking for the highest rate.


I’m not sure what possessed me, but I happened to be driving home and took a call from a prospective home buyer. He immediately said, I am shopping around for the lowest interest rate. I told him, he had the wrong number, dumbfounded he hung up.


Within a moment or two he called again, he called back and asked, is this Joe Petrowsky, I told him it was and then proceeded to tell me that he was shopping around for rates. I again repeated that he had the wrong number. Again, he hung up.


Maybe 5 minutes later he called back. I gave him credit for his persistence. He said, OK let me do this again. He told me his name and that he had been referred and by whom. So, I asked him what did they said about me. He said some nice things.


He said, OK I’m done shopping, I’ll let you do that for me. I told him that I will be happy to work with him and let him know exactly what he can expect.


The next day we spoke on the phone, I pre-qualified him for a mortgage. I have also referred him to a Realtor, home inspector and mover. He apologized for yesterday’s calls and said that his friend was right, working with you is different.


I thanked him for his kind words. He is well on his way, focusing on purchasing a home, not shopping for rates, as he knows he will get the best rate available.


image courtesy of stuart miles/freedigitalphotos.net



“Inquiry Says POOR Credit, but Score is 675”

“Inquiry Says POOR Credit, but Score is 675”


I normally get 3-5 inquiries off my website every week. The information requested is very basic – name, phone number, email address, estimated mortgage amount needed, rate your credit and comments.


It always amazes me how many folks view their credit. Allen filled out the form, indicated that he was denied for a mortgage a year ago because of poor credit.


stuart miles008I called Allen, he really wants to own a home, but wasn’t sure that his credit had improved in the last year. I told him I wanted to run my own report and he gave permission. Just crazy, his mid credit score was a 675, which meant, as long as his income was sufficient, work history made sense, had a down payment, I could get him a mortgage.


I asked all the necessary questions, the bottom line, I was ready to pre-qualify him for a mortgage. I thought he was going to cry, he was hitting the ground every ten steps.


I have no idea how many prospective home buyers there are out there that have had a bad experience and have given up, have sufficient credit and income, but are afraid to ask for fear of being disappointed or denied.



There are many knowledgeable loan officers, that are ready, willing and able to assist anyone that wants to own a home, but isn’t sure they will qualify for a mortgage. Many more real estate sales can be made, if we ask the right questions. 


image courtesy of stuart miles/freedigitalphotos.net

FHA Needs to Lower Fees and MI

FHA Needs to Lower Fees and MI


Three times last week, someone didn’t qualify for an FHA loan because the fees, primarily the monthly mortgage insurance.


Dodd-Frank creates more regulations for appraisers

Dodd-Frank creates more regulations for appraisers

For these three different transactions the monthly mortgage insurance were as follows: $409, $361 and $212 and that amount stays in place for the life of the loan.


One of these transactions I was able to get done as a conventional loan and instead $361 being the monthly fee, it was just about half and will only be attached to the loan until there is enough equity to eliminate it completely.


The fees are way too high and should be reduced and be brought into line with rates for conventional and USDA loans. I can understand that mortgage insurance fees need to be charged, but these current rates are way out of whack.



image courtesy of stuart miles/freedigitalphotos.net

“Switching Loan Products in the Middle of a Transaction”

“Switching Loan Products in the Middle of a Transaction”
Sometimes a mortgage doesn’t work out the way it’s supposed to. So, is there a fix, a solution that can still work?
Amy called my office yesterday morning. She had just been denied by her bank for an FHA mortgage. The problem, the appraisal indicated a number of issue and repairs that were required and they wouldn’t do the mortgage.
stuart miles996After talking her off the cliff, I asked if she could get me a copy of the appraisal. She told me that it was bank policy not to share the appraisal. The reason she was told, she didn’t actually pay for it, she merely paid an application fee. To me, she paid for the appraisal, but that is another story.
I told her, I would see what I could do about getting a copy. I asked her if she had gotten a home inspection, she said yes, but that her purchase agreement indicated that the property was being purchased “AS IS”. Love these words.
The problem with this bank, they don’t do FHA 203 K loans. We could have just changed loan products, gotten a bid for the necessary repairs and include the repairs as part of the loan. We could use the same appraisal and move forward with the mortgage process.
I did a conference call with Amy and the Realtor to find out if we could get enough time to complete the mortgage process. The Realtor communicated back with me later in the day, that an extension can be gotten. I gave Amy a referral for a contractor that understands this 203K process and she has already made arrangements to get him into the home.
I contacted the bank and after being transferred to a number of different people spoke to the underwriter that had worked on Amy’s file and am making arrangements to have the appraisal transferred into our name, but in the meantime I was able to get a copy. I sent it to Amy, the Realtor and the contractor, so that everyone can be on the same page.
I’ll get the application done and she will be well on her way to owning the home she wants.
image courtesy of stuart miles/freedigitalphotos.net

“What Does Your Body Language Say About You?”

“What Does Your Body Language Say About You?”
My wife has taught me so much over the years about body language and what it means and what it says to others. NLP (neuro-linguistic programming) has long been described as body language.
I’ll share an example, when I get home at the end of a day and before I say one word, can my wife already know what kind of a day I have had? You bet, it is the unspoken language that we speak to one another.
Gail would always point out, my body language and the fastest way for her to do it, was to put a mirror in front of me, when I was on the phone. Yikes, I was often shocked and immediately realized what the person listening to me, must be thinking. It was a lot of work and a lot of personal training, but I mastered mybody language.
So, what is your body language saying to the world? Is it saying that people should want to do business with you? That you are trustworthy? That you are having a bad day? Add your own questions to this list, as the list can be endless.
One of the most important rules, when it comes to body language is your “SMILE”. How much does  it cost you to have a friendly, welcoming smile?
image courtesy of pakorn/freedigitalphotos.net

“New Idea, Purchase Market to Focus on Customer Service?”

“New Idea, Purchase Market to Focus on Customer Service?”
I was reading this article about real estate volume being down this year and that the focus is going to be on service. Are you kidding me, as this was a revelation? Since when hasextraordinary service become a new focus.
handshake tungphoto_freedigitalphotos.netUnfortunately, a focus on extraordinary service is not a priority for many, no matter what the business and when it is lacking, the amount of business, especially new business is lacking.
I was invited to lunch by a Realtor the other day. I hadn’t worked with him for a number of months. I could tell he had a lot on his mind and just came out with it. Can I start sending you clients again?
Can I ask a question, why did you stop sending me some of your clients? He told me that his office had an inside loan officer and everyone is encouraged to use that person. Being new to this company, I felt that I should now use this person like most of the folks in the office. OK, so what is the problem?
Joe, you already know the problem, the service is just ordinary at best and some of my clients just aren’t very happy, which kills future referral business. “One thing for sure, you have always made me look good and my clients LOVE you”
Extraordinary service should always be the only focus, not just another good idea.
image courtesy of tungphoto/freedigitalphotos.net

“Prospective Buyers Don’t Always Say What They Mean”

“Prospective Buyers Don’t Always Say What They Mean”
For the last couple of days I have been negotiating on a home that we are flipping. We got notification of the Realtor showing, the 44th to be exact.
There was lots of activity, home was priced right. We have the following ready for everyone that was looking at the home.
1) home inspection
2) septic report results
3) water test results
4) termite test results
5) radon results and survey map of the property.

Stuart Miles (9)After this particular Realtor showed the property, they commented that the buyer didn’t like property. To me, being told how someone really feels about the property, is never an issue. So, now he didn’t like the property why would he make an offer?
Fortunately we were in a good position as we were in a multiple offer situation. So here I am asking myself why does someone jump to the head of the line, that didn’t like the property.
Once the negotiations were completed I wanted to ask the question, but I have a sense that this person might have thought it might help with the negotiation process. Fortunately for me, it didn’t help, he still paid above asking price.
image courtesy of stuart miles/freedigitalphotos.net

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