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- Not All Bad News on the Mortgage Front:
Not All Bad News on the Mortgage Front:
- By Chris Kostoff
- Published 06/21/2008
- Real Estate Success
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Chris Kostoff
Chris Kostoff is the president and CEO of Mortgage Direct Corporation. He has been in the business for 11 years and all of his business is based on referrals. He was ranked in the Top 200 originators according to Mortgage originator Magazine 2006 doing over $78 million in loan volume. He resides in Coto De Caza with his wife Anne and 2 daughters Antonia and Brooklyn. He is a graduate of Vanguard University where he earned a BA in communications. In his spare time he enjoys spending time with his family, playing basketball and reading.
Most print ads and media outlets portray the mortgage market as bleak and simply put a mess. It is true that tougher underwriting guidelines and declining home values have caused things to slow down. Yet, many deals are being done and sometimes all it takes is a good loan package and a understanding lender. Just recently, I ran into a difficult situation that had potential. It's my philosophy not to over-promise so I told my client we'd work together on a solution and went to work for him.
From the beginning I told him that the transaction would be difficult for many reasons. First, they were doing a stated income loan and the home value was dropping fast due to some foreclosures in the area. Second, they wanted to combine their two mortgages into one as their first mortgage was an adjustable loan that was ready to recast.
I knew when that I submitted the loan to the lender that all my T’s need to be crossed and I’s dotted so I could paint the prefect picture for the underwriter to approve the loan.
Fortunately for him it was conditionally approved. The lender asked for business references from my client and wanted the appraiser to add additional comparable sales to the appraisal and a comment on the values in the immediate area. This added time and work but it gave us hope.
After a week or so of more paperwork, numerous phone calls and a lot of rapport building with the lender, my client is signing the final loan docs today. This homeowner got a fixed rate of 6.25% as his adjustable rate was set to move from 6.5% to 8.25%. They are excited about getting a low fixed rate in this difficult market.
Turn on the television, open the paper or hop on an elevator and talk to a stranger and you'll hear all the doom and gloom about the real estate market. The truth however is that deals are still getting done. They may take longer than the standard 30 day escrow and they may require a bit more communication with the lender, but they are getting done.
What this means to you is that you shouldn't buy the doom and gloom. You know your financial picture. If you're in a bind turn to a professional. Evaluate your current situation and your future needs. It's possible to make a change for the better, even in this market.
From the beginning I told him that the transaction would be difficult for many reasons. First, they were doing a stated income loan and the home value was dropping fast due to some foreclosures in the area. Second, they wanted to combine their two mortgages into one as their first mortgage was an adjustable loan that was ready to recast.
I knew when that I submitted the loan to the lender that all my T’s need to be crossed and I’s dotted so I could paint the prefect picture for the underwriter to approve the loan.
Fortunately for him it was conditionally approved. The lender asked for business references from my client and wanted the appraiser to add additional comparable sales to the appraisal and a comment on the values in the immediate area. This added time and work but it gave us hope.
After a week or so of more paperwork, numerous phone calls and a lot of rapport building with the lender, my client is signing the final loan docs today. This homeowner got a fixed rate of 6.25% as his adjustable rate was set to move from 6.5% to 8.25%. They are excited about getting a low fixed rate in this difficult market.
Turn on the television, open the paper or hop on an elevator and talk to a stranger and you'll hear all the doom and gloom about the real estate market. The truth however is that deals are still getting done. They may take longer than the standard 30 day escrow and they may require a bit more communication with the lender, but they are getting done.
What this means to you is that you shouldn't buy the doom and gloom. You know your financial picture. If you're in a bind turn to a professional. Evaluate your current situation and your future needs. It's possible to make a change for the better, even in this market.
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1 Response to "Not All Bad News on the Mortgage Front:"
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said this on 22 Jun 2008 5:05:29 PM CST
Great read ... I didn't know that. The media does make it seem like its all bleak. But then they love a tragedy, don't they!
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