Communication is still the key!

May 17th, 2010

I recently had a conversation with a borrower about what the best way to communicate with her throughout the pending loan process. She was quick to share that email was the best way to keep in touch with her. Others have shared that they prefer a once a week call to their cell phone with an update. Each may have a preferred manner of communication, but the common denominator here is to communicate!

In the mortgage lending business, the absolute key to maintaining a successful business is to establish a system of clear and consistent communication with all parties involved. This system must allow for the clients as well as the many service providers and internal support personnel the opportunity to update and keep the related parties abreast of the process.

The loan process can become fairly systematic at times, and the people who deal with loans everyday may not believe an update is warranted on every file. Contrary to that thought, we believe that the client must be updated and kept closely involved throughout the process. Our feedback has been consistent. For almost 20 years that the “We Walk You Home℠” system has been in place, communication remains the key to keeping the client well informed, and tied to the process in such a way that they feel they have been “walked through” the process.

It seems that it may be human nature at times to only want to notify someone when one has “good news” to report. However, the key to a successful “service business” of any kind is excellent communication with the client, no matter what the news.

This may be a good time to take a look at your own businesses and evaluate your communication efforts, and remind yourself that communication, and a system in place to do so, is still the “key” to a successful operation.

Tags:
Posted in Uncategorized | No Comments »

The Art of Negotiating a Real Estate Transaction

March 4th, 2010

Putting together a RE deal today takes the cooperation of all parties. I think it probably always did to some degree, but in today’s changed real estate/mortgage environment, never before has my experience dictated that everyone involved try to look at the “deal” from each other’s point of view. The “Golden Rule” has long been the best standard to operate from personally as well as in the business world, and today is no different.

I was asked today if the market was a sellers, or a buyers in our local economy in southeastern New Mexico. I believe that answer is likely pretty similar throughout the Southwest. In today’s market, if the property is priced fairly, meaning based on the square footage, and comparable amenities and location, then it should bring a fair market value and sell within a 60 to 120 day period. Now certainly, that could be argued depending on relative factors on a specific property or community. However, after the past 2 years in this “fascinating” market, most in the industry are claiming that buyers and sellers are beginning to come together and agree on a price better now, than in the recent past.

Cooperation from both parties, buyers and sellers, is essential. Each must make a concerted effort to understand the others’ needs and wants regarding the final product. By allowing yourself to see the transaction from the others’ point of view, you may be able to better facilitate the sale, and ultimately create a more smooth real estate transaction.

This facilitation can be achieved in a number of ways, but one is to have the buyer pre-qualified prior to seeing the home. Having your buyer already in a position of negotiating a price and term will move the transaction light years ahead. In addition, if the seller would spend some time looking at their home as if they were considering buying it, and making a list of the items they would like to see fixed, or an allowance provided for, would limit some of the surprises, and emotions from comments made during the negotiation stage.

Whether buying or selling real estate today, get some professional RE assistance, and take a look at any offers from both sides of the transaction. Treat people the way you would like to be treated, and be reasonable throughout the negotiations. Maybe some of these hints will put you in a position of getting your property moved in a smooth and efficient manner.

Tags:
Posted in Uncategorized | No Comments »

The “Window of Opportunity” to Refinance may be closing…

February 12th, 2010

What’s some of our favorite ways to say it, “I’ll get around to it”, or I’ll have more time next week”?  Whatever it is, we need to make the commitment to our family finances to check our overall mortgage situation soon. We have been told by many experts over the past couple of months that interest rates on mortgage loans will likely be moving up.  However, instead we have seen them remain fairly stable at these historic lows.

Early this week, Federal Reserve Chairman Ben Bernanke made comments to the point that the government would soon begin to reduce the support provided in the Treasury market allowing interest rates to move back up to a more realistic level.  This statement was the first of its kind and lends itself to the idea that if we don’t move soon we could miss the “window of opportunity” that exists today.

Interest rates on mortgage loans are extremely low.  You can find rates in the 4.5% to 5.25% range today for residential mortgage loans in the 15 to 30 year term.  Some experts have indicated that when the government reduces its support in the market that we may see these same rates increase by 1 to 1.5%.  This difference can make approximately $150 per month difference in your house payment on an average loan size of $150,000.  I don’t know about you, but that difference can make me move a little quicker to review my mortgage situation before it is too late.

How do I check my rate or mortgage situation?  A simple phone call to your local mortgage expert is the answer.  Have available your last mortgage statement, so you can share your balance and present rate. Don’t forget to consider the possibility of any cash needs you might need and share that at the same time. This may be the “stimulus” we’ve all been hearing about.  Take the time today to check this out before the interest rates make their move.

Posted in Uncategorized | No Comments »

Why “Credit Repair” has a new public image

February 3rd, 2010

“Credit Repair” is taking on a whole new face in today’s real estate marketplace.  In the past, most of us thought of “credit repair” as a service provided only to the “bad credit” consumer.  The pictures in our mind probably vary from the recently fired gentleman who can’t pay his bills to the irresponsible student who blew off his school loans back in college days.  As we watch the guitar-toting groupie on television commercials promoting free credit reports, we have come to realize that this service may actually be “main stream”.

Many of you may have thought if I ever need that service, I will really been in a pinch.  Contrary to popular belief, this service is putting Americans in homes.  Credit repair has become a tool to assist consumers to get their financial house in order.  This service is giving a whole new avenue to the American dream of owning a home.

We see clients everyday at PrimeSource Mortgage who come in and have average credit that will sign up for this very affordable service, and in less than 90 days are prequalified and shopping for a new home.  This service also gives the buyer much more confidence in the whole buying experience.  When you are pre-qualified (which is a whole other subject that I will share next time), you place yourself in a position of positive negotiations.

The next time you are ready to consider purchasing a home, or you become aware of a family member or friend considering the same, get your credit checked and don’t be afraid to try this incredible service to put yourself back in the game of purchasing a home.

Posted in Uncategorized | No Comments »

Our 18th annual Conference – Blog entry #1

January 30th, 2010

Welcome to my information corner.  My intent for this blog is to provide the reader with significant content.  I will provide up-to-date information pertaining to various areas of the mortgage industry, but also some specific information related directly to our company, PrimeSource, as well as bits of information that can benefit the consumer directly.

Last weekend, PrimeSource Mortgage, Inc. held their eighteenth (18th) annual conference.  There were over 120 participants attending including most of the branch owners from our 35 offices around the country, as well as some of their Realtor referral partners.  The conference was a monumental success, and considered our best ever.

The conference included some incredible speakers including Dr. Steve Greene, Dean of the School of Business at Oral Roberts University, Greg Frost, one of the largest mortgage producers in the country, and several other industry leading speakers.

During the conference, many of the changes occurring in the mortgage industry were discussed at length.  The overwhelming perception that was derived from the weekend was the fact that with 75% fewer loan originators in the marketplace, the “survivors” are now positioned beautifully for the return of the origination market in 2010 and 2011.  Optimism returned to an all-time high as the conference was drawn to a close.

I would like to personally thank each of the speakers and participants at this year’s conference for their commitment to excellence.  I look forward to the difference each of you made in each other’s lives.

Posted in Uncategorized | No Comments »