Archive for February, 2012

Did Someone Say “Recovery”?

Friday, February 24th, 2012

A revival in the housing market must occur for the overall economy to fully recover. Based on my professional experience, this might be the year. 2012 is off to a good start: The sales staff at our bank has seen an uptick in mortgage applications, and all my real estate colleagues have noticed an increase in inquiries, walk-ins, home showings and offers.

Check this out: A real estate agent friend called me last week and asked me if I could be at his office at 6:30 pm to qualify one of his customers. The day before my appointment, he called again to ask if I could meet another customer at 7:15 pm and a third at 8 pm. Of course, I agreed, and indeed, three new potential homebuyers were pre-approved.

So why are people coming off the sidelines now than the previous three years? Here are some contributing factors:

• Record low rates: A lower mortgage rate means lower payments, making loans more affordable.
• Low home prices: Home prices are hovering at 2001 levels, 30 percent lower than their high point in 2006.
• Potential homebuyers are finally “getting it.” It takes time for people to digest the latest trends and recognize it’s a great time to buy a home.
• Warm winter: Home sales usually decline in the winter because snow hides landscaping and building defects. The potential for hazardous weather conditions can also prevent home buyers from shopping. However, in the Northeast, this winter has been warm, with little snow and without any major storms.

So maybe, we are actually seeing a recovery. Maybe, 2012 will be the year people cite as an end to the Great Recession. “From your mouth to God’s ears,” as my Grandma used to say.

Posted by Carey Hollander

Posted in mortgage market | No Comments »

An Affair to Remember

Thursday, February 16th, 2012

Valentine’s Day – Love is in the air. Flowers, candy, romantic dinners – all memorable ways to celebrate your relationship with your significant other.

It may be easy to create memories with a personal relationship, but what makes a business relationship memorable?

When buying a home or refinancing your existing one, you often establish a close relationship with your loan originator. An experienced originator focused on your needs, with open communications, can make the process smooth and worry-free.

In any relationship, communication is the key, and this is especially true with business relationships. The mortgage process has become more intricate and uncertain in the past year, with grueling documentation requirements and a volatile economy. Loan originators should set proper expectations upfront to ease this process for you.

When initiating a mortgage application, you should get a checklist of required documentation from your originator as a useful overview and to ensure a complete understanding of the process.

Documents such as pay stubs and bank statements will always need to be updated with the most recent information since the mortgage process can take 30-to-60 days. By reviewing the dates of current ones, your originator can calculate when updated versions will be available and communicate that with you.

As your originator learns of milestones achieved during the loan process, you should be informed as well as notified about any changes in the timeline. Despite the difficulty of predicting the finalization date (with the exception of purchase settlements), failure to share information with you every step of the way can damage the relationship.

An attentive and communicative originator will make your mortgage experience “An Affair to Remember.”

Posted by Dan Ranck

Posted in Client relationships | No Comments »

Reverse Mortgages Demystified

Saturday, February 11th, 2012

As more baby boomers enter their retirement years, many of them are either struggling financially or are forced to alter their lifestyle. If a senior citizen owns a home or condo (compliant with HUD standards), then a reverse mortgage could provide the ultimate security blanket.

Reverse mortgage loans are based on the equity in the recipient’s home and do not require any monthly payments. The debt increases over time (compared to a traditional mortgage where the debt decreases over time); the minimum age to qualify is 62; and the home must be occupied as the primary residence. Seniors can choose from three different loan options:

1. Lump sum: One large payment to the homeowner at a fixed rate.
2. Line of credit: Monthly payments given to the homeowner at a variable market rate.
3. Combination of 1 and 2

Because there are no monthly payments, a reverse mortgage can provide needed cash for almost any reason including home improvements, medical expenses or nursing care. Even if there is an existing mortgage on the property, a borrower can refinance to replace the traditional mortgage and its monthly payments with a reverse mortgage without any payments. In all cases, the homeowner will continue to pay property taxes and insurance.

In fact, a senior can even purchase a home using a reverse mortgage. The typical reverse buyer is downsizing and wants to buy the new home without paying cash or taking out a traditional mortgage. In a reverse mortgage purchase, buyers can keep at least half of their assets intact without any monthly mortgage payments.

Before obtaining a reverse mortgage, seniors should consult with their attorney, tax advisor or local Agency for Aging.

Posted by Carey Hollander

Posted in reverse mortgages | No Comments »

Dan Ranck for President?

Thursday, February 2nd, 2012

Let me first make it clear that I am NOT declaring my candidacy for President of the United States. This is not a campaign speech. I am not seeking the endorsement of a billionaire real estate mogul.

However, here a few interesting facts about me:

• I have created jobs.
• I have reduced and eliminated debt.
• I have strengthened the economy.
• I have fueled the housing market.
• I have improved the lives of lower, middle and upper-class Americans.
• I have helped Americans save money.

Not to be conceited, but some presidents and presidential candidates cannot make the same claims.

So, should I toss my hat in the ring? I think not.

But as a loan originator, my primary focus is working with clients to improve their current financial situation or lifestyle so they find themselves in a better place when my job is done.

This includes helping renters fulfill their dreams by becoming home owners while still increasing their net worth for the future. When homes are purchased, jobs are created, the economy is strengthened, the housing market is revived, and lives are improved.

Working with existing homeowners to reduce their current mortgage interest or leverage their equity also creates jobs, reduces or eliminates debt, strengthens the economy, improves lives and encourages saving money for a rainy day.

So with loan originators contributing so much to an economic recovery, why does the government seem, all too often, to inhibit mortgage lenders and ultimately reduce opportunities for prospective homebuyers and owners?

Ask the candidates.

Maybe I should re-think my opening statement…

Posted by Dan Ranck

Posted in Uncategorized | No Comments »