Jeff Rickard

     This is a great time to be a first time home buyer.  Prices are right, FHA rates are low and down payment assistance from the Colorado Housing and Finance Authority (CHFA) is easier than ever to get.  That is why my business and the business at Universal Lending is BOOMING.  

     So what is the problem?  The mortgage industry.  All the fall out from the past that actually has brought FHA and CHFA back from the dead is now bringing other players into the mortgage decision process.  This time it is the companies that provide mortgage insurance, at one time a mortgage service that was taken for granted is now part of the decision process. 

     If you are doing a 100% conventional CHFA loan in a declining market (almost all of the front range), such as My Community or Home Possible you now need to supply the mortgage insurer the following: the loan application, credit report, income documentation, sales contract and appraisal for their review. 

     What does that mean?  Best case scenario -more time (4-5 days as of today).  Worst case scenario - they say no.

     It appears that we will be able to go to $362,790 on FHA loans without a price hit.  The FHA increased limit for most of the front range is now $406,250.  So, if you are over the $362,790 you will experience increased cost to get that loan.  That cost is still undetermined but best guess is that it will be between 2.5 - 4 points.  WOW! 

Continued from Monday February 25th. ( Remember I am going to go through the exercises from The Seven Minute Difference to develop a story of how my service is different from my competitors)

Part 3 of finding and developing a story that differentiates me from my competitors.

The next step is to define your target client clearly and easily.  According to “The Seven Minute Difference”: you can build stronger skills and grow your business more effectively when you are able to concentrate your efforts on the tasks that best suit the business you want to have.  The business you want to have is directly dictated by the clients you have. 

So, lets define my ideal client.  Now in my case you have to understand that I serve 3 types of clients.  The first is borrowers.  The second is referral sources such as Realtors, builders, financial planners, accountants, etc., but Realtors make up 90% of my referral business.  Third is human resource managers who do my House$mart program.  Continue Reading »

Rates are going through the roof and the old standards of forecasting rates are no longer accurate.  What is going on?  The following is an explanation that is given by FNMA to their vendors:

The Capital Markets Sales Desk has fielded a large number of calls from customers simply asking,  “What’s going on?  Why is the mortgage market trading lower every day?”  The following are reasons that could help explain why mortgages are struggling and why current market conditions are so volatile: Continue Reading »

Continued from Monday February 25th. ( Remember I am going to go through the exercises from The Seven Minute Difference to develop a story of how my service is different from my competitors)

Part 2 of finding and developing a story that differentiates me from my competitors. 

     The next step in the process is differentiating yourself through your core convictions and strengths.  Your purpose in life ties to your core convictions about your life and work, and the strengths you draw from those beliefs.  Our core convictions about work must match our personal values.

     How do we determine our core convictions?  The first step is to state what you consider your strengths.  Continue Reading »

     There are new loan limits for FHA as part of the economic stimulus package offered by Washington.  This is big news because FHA is a 3% down payment loan and at this point they are not really changing down payment requirements due to the declining market.   The limits in the front range will increase from $308,370 to $406,250.  The limits are different by cities and counties but the $406,250 represents most of the front range.  Boulder is at $460,00 and Eagle County is $729,750.

     There is a big “however” though, which is just because the government announced it does not mean the investors and mortgage companies are prepared to offer it.  We anticipate that we will have investor support by next week but we also anticipate (rumors from investors themselves) that there will be price hits for the increased loan amounts.  In other words it will not be regular FHA pricing it will be increased interest rates.  

When it comes to your credit score, luck, unfortunately, has nothing to do with it.  Now, more than ever, it is important to work on attaining and maintaining a good credit score.

What is a good score?  For mortgage purposes this would be a minimum of 680, especially if you have less the 5% down.  That’s up 60 points from the 620 that was acceptable only 6 months ago.  Anything below that could now cost you hundreds of dollars each month. 

We all probably have a pretty good idea of how to maintain an acceptable credit score.  However there are a few things borrowers do on a monthly basis that may not help and could actually hurt your credit score.  These actions may seem like good ideas but in reality are not healthy for your credit score.  Continue Reading »

     This is a question that I am asked constantly and with the changes in the mortgage industry “as much as you want” is no longer the answer.  There is a “Credit Crunch” and an “Affordability Crunch” going on today.  In the old days it was banking practice to say you could afford 2 - 3 times your annual income for a home.  In the last few years that “New Normal” was expanded to 5-6 times your annual income, and then we would let you artificially inflate your income.  No wonder we are in a foreclosure nightmare! Continue Reading »

Continued from Monday February 25th. ( Remember I am going to go through the exercises from The Seven Minute Difference to develop a story of how my service is different from my competitors)

Part 1 of finding and developing a story that differentiates me from my competitors. 

The first step is to define what I like and don’t like about the mortgage business.  Continue Reading »