“YES, You have to Source Large CASH Deposits”

“YES, You have to Source Large CASH Deposits”

Anyone in the mortgage business will cringe when we are told “we deposited $25,000 in cash last week”. Of course I need to ask where this money came from, “it was a gift from my parents”. You can’t be doing stuff like this as it creates all kinds of problems, including Big Brother is watching.

Sure, we know that cash deposits are done all the time, there are all kinds of Federal laws and agencies that take notice when large deposits happen. Sure we know that this was done with all go intension, but I can’t do a pre-qualification at this time, as we need money to purchase, but these cash dollars can’t be sourced.

Fortunately, waiting a couple of months isn’t an issue, as they do not have a property in mind. A couple of months from now, they will be handed the pre-qualification.

Would you have done anything differently?

Image courtesy of Vichie/freedigitalphtos.net

“This was One Way to Get to Know the Neighbor”

“This was One Way to Get to Know the Neighbor”


“I know it’s been a while since we spoke, when you flipped the house next to me. However the reason why I am writing to you is, because I am getting ready to sell my house at 40 cedar street and I have to give it a fresh look before selling, I did like the work that your contractors did, and I was wondering if you can put me in contact with the contractor for an estimate.”

I let Angela know that our contractors work exclusively for us, but gave her a couple of referrals. We also discussed a new mortgage for her once she finds another home.

The property we purchased was a two family that had a unique situation pertaining to the garage. There was a two car garage, one owned by us and the other by Angela. The problem was the roof needed to be repaired and we couldn’t replace just half of it. I contacted her, introduced myself and told her that we purchased the property to renovate and resell.

I let her know that I wanted to repair the entire roof and it wouldn’t cost her a penny. Immediately suspicious, she wanted to know the catch. No catch, we would handle the cost. We did not want to put the home on the market with a garage that would have made the property look bad to potential buyers.

During the renovation process she had sent us a handful of prospective buyers, unfortunately none of them worked out but we found a buyer when we did the open house.

With any home that we have ever renovated we believe getting to know the neighbors is always a great idea. There is no one better at that than Gail.

Image courtesy of salvatorevuono/freedigitalphotos.net

“I’m Self-Employed; I’ll need a Mortgage in the Future”

“I’m Self-Employed; I’ll need a Mortgage in the Future”

There are a number reasons some folks have difficulty getting a mortgage. Credit challenges are right up there, too much debt to be able to qualify especially when there are student loans, even the other extreme of too little or no credit and self-employed individuals.

We are in the 4th quarter of 2015, the time that decisions need to be made as to what the tax returns are going to look like and time to address future borrowing needs. Most everyone that files a tax return wants to pay the least amount of taxes possible that is for sure. But there is a tradeoff when it comes to the need to borrow money.

So many self-employed folks I speak with have difficulty understanding the problem. They constantly say how they bring in an abundance of income but that’s not the problem. I will immediately ask, “What was the net that you actually paid taxes on?” That is the number that we need to go by and along with it, an item or two we can add to that income.

I coach clients all the time to make sure the numbers look right and to make sure they can qualify for the mortgage that will be needed. There is going to be a tradeoff, show little income and not qualify for a mortgage or qualify for much higher interest rate where the net income doesn’t matter.

This quarter is the right time to work with a knowledgeable mortgage lender to make sure the income numbers will work for the mortgage that will be needed in the future.

Image courtesy of tungphoto/freedigitalphotos.com


“It Closed!!”

“It Closed!!”

A couple of months ago a Realtor called saying she couldn’t find a lender to do a mortgage for one of her clients. She was representing both sides of the transaction, which immediately presented a challenge.

Based on what she told me, it sounded like a loan I could get done but wanted to speak directly to the buyer. Sure enough, we had a shot at getting this loan done. It took 6 weeks and yesterday Carl became the proud owner of a new home.

This was the comment from the Realtor:

Awesome!! So thrilled for Carl, he is the nicest guy. Thank you to all of you who made this crazy sale happen.

I like to think that anyone that wants to own a home will be able to, with our help.

Image courtesy of stuartmiles/freedigitalphotos.net

“These Last Minute Closing Conditions Just Drive Me Crazy”

“These Last Minute Closing Conditions Just Drive Me Crazy”

We received an updated approval and the underwriter has some questions for the appraiser in regards to the driveway on the report. The appraiser wrote the following comment: “driveway- very uneven with cracked macadam”, now underwriter wants the appraiser to advise if this needs to be fixed if it’s a safety issue.

The lender has had the appraisal for a few weeks, so I inquired as to why this question was not asked when the appraisal was received. Their answer was one that I have heard many times. “We don’t review the appraisal until we know everything has been signed off”. OK, but everything else was signed off over two weeks ago, the only thing the lender was waiting for was a paid homeowner insurance policy receipt.

Most of us in the mortgage business have experienced last minute conditions like this that will only piss everyone off, especially me. How does any of this make sense?

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“Fortunately I Get a Lot of Big Hits”

“Fortunately I Get a Lot of Big Hits”

I wish I was successful 100% of the time but that’s not realistic, but that doesn’t mean I’m not going to give 100% effort to get a mortgage done. It took 3 months, but when you can save clients over $2000 per month the results are very gratifying.

Dear Joe

Words can’t express how grateful Pat and I are for helping us out of a big mess. When others turned us down you stepped up to the plate and hit a home run! Our phone is getting lots of cob webs on it from lack of calls from collectors. I won’t miss them.

You were a pleasure to work with and when we got stressed, you walked us through it.

If there is anything we can do for you, please don’t hesitate to ask.

Again, thank you so much.

Best Ralph & Pat

I let them know that a referral from time to time would always be appreciated. Who do you know, that could use my help?


“Blogging Can Keep You on Top”

“Blogging Can Keep You on Top”

I spoke to a relatively new real estate agent the other day. I had met with her about a year ago shortly after she was licensed. One of the topics we discussed was blogging, one of my favorite topics. She told me that part of her training was in the area of social media, especially Facebook. She told me that was one way she was coached on reaching out to family and friends.

OK, so you have let you friends and family know what you do, so I asked her what that had accomplished and she quickly let me know, she couldn’t make a living going that route. So, what is next? She wanted to talk about blogging as she had been reading many of my blogs on Linkedin.

She asked me if I ever ran out of things to write about. Not a question I haven’t been asked before and I told her NO, Every day there are things going on that I can write about. I started asking her how her day went and what she did.

She told me that her day was spent looking for a property for a customer she met while waiting in line at the grocery store. After asking her a number of questions she said she was starting to get the idea. I gave her a few mortgage suggestions, but could see she was still hesitant.

I love to blog and fortunately there are a number of blogging sites that I get to share my blogs on including Activerain, Linkedin, WordPress, Twitter, Facebook, the Patch and a handful of smaller sites.

What Advice would you have given her?


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