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?
“Co-Signing a Mortgage”
I was contacted by a client of mine a few years ago. He called to discuss his daughter’s request to have him co-sign a mortgage for his daughter. I asked a number of questions and based on the answers, I recommended that he not co-sign the mortgage. He asked if it would be OK if he had his daughter call me, even though I knew the conversation wouldn’t be pretty, I told him sure.
I seemed like within a few minutes the daughter called berating me to attempting to talk her father out of co-signing the mortgage. I told her I understood, but even went as far as attempting to talk her out of the purchase.
I don’t remember the exact numbers, but she made about the amount of what the mortgage payment was going to be. He told me that her boyfriend, was going to pay rent, which would make up and shortfall. I then asked her, what if the boyfriend moves out. The conversation didn’t last too much longer.
The father was convinced to co-sign and the “S**t” eventually hit the fan and the father’s credit got hammered. Fast forward to now, he wanted to buy a condo in Florida and there is no way to get him a mortgage. He is going to end up buying a trailer in a park and has to pay cash.
The bottom line, in certain situations co-signing a mortgage for someone can be OK, but the math has to make sense and second, the goal should always be to get the co-signer off the mortgage as soon as possible.
image courtesy of master isolated images/freedigitalphotos.net
“Fees Charged by Fannie Mae & Freddie Mac?”
When the bailout was done for Fannie and Freddie, immediately when that was done, both increased the fees that consumers paid on their mortgages. All these fees resulted in higher rates to the consumer.
Fannie and Freddie have paid back all the bailout money and much of their profits are now going to the Federal Government coffers. So, why are these excessive fees still being charged? I can understand that both companies need to raise fees to raise additional revenues, but that has already been accomplished.
Fannie/Freddie had 3 years of losing money and every other year they were profitable, so they both have had decades of profitability at much lower fees that are being charged. This is just another way for our Government to tax the consumers, it is time to stop.
Both agencies need to be privatized and gotten out of the Government clutches.
image courtesy of david castillo dominici/freedigitalphotos.net
“Offering to Pay Closing Costs Draws Attention”
I felt like I was being interrogated. I have been in the house flipping business for many years and as part of each marketing piece, I offer to pay closing costs. I just see it as me separating myself from all the other properties that are on the market.
This guy identified himself as a prospective home buyer, but wasn’t calling me about any particular property, he wanted to understand about my offering to pay for closing costs. How often do you offer to pay for closing costs? Do you offer to pay closing costs for everyone or only certain buyers? I immediately decided I was not going to answer the questions.
So very quickly, I decided to take over the questioning. So, share with me who I am speaking with? He answered Tom. Tom who? It is Tom for now. Well Tom, I don’t see this conversation going anywhere, so unless you are willing to answer the information I need, we really don’t have anything to talk about. Click, he ended the call.
It was obvious that Tom or whoever he was, was not a buyer, but rather someone looking for something, but must have been disappointed. Too bad, I have a home that I just put on the market.
image courtesy of chanpipat/freedigitalphotos.net
“Some Lenders Plan on Only Doing QM Mortgages”
Here is a news flash: They keep saying that there are fewer real estate sales happening throughout the US. There are many reasons, but what do we do about it?
Here is another news flash: There are many folks out there that want to buy a home but are getting turned down by many of the banks. Many would make really great homeowners. Most have sufficient income and down payments, but not the credit scores.
I have done three mortgage applications this week, all of which have been turned down by banks that have decided not to drop their credit score requirements and choose to follow strict QM guidelines.
I have talked to many of the LO’s that work for these institutions and they are very frustrated as they can’t help these potential buyers and fortunately for us, their clients are being referred to us and we are able to get mortgages to these clients.
I am closing a loan for Rosemary on Friday. I had worked with her for a couple of months, getting her credit scores just above 600. She had been denied for a preapproval, but no one ever discussed working with her to fix some credit issues.
She was paying $1650 rent and her mortgage payment is going to be $1312 she is on cloud 9. She keeps say how elated and thankful she is.
There are many Rosemary’s out there that want to buy homes, but they don’t know that they can. Send me all of the Rosemary’s you know and I will coach them, so they can buy a home.
image courtesy of digitalart/freedigitalphotos.net