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Minnesota Mortgage Blog

Why Real Estate Agents Care About Preapprovals!!!

February 2nd, 2012 7:09 AM

Lets face it time is your money. The more clients you can manage, the more successful you will be. Actually, let's modify that: The more serious, qualified clients you can manage, the more successful you will be. If you are spending time with prospective homebuyers who turn out to be unable to qualify for a home loan, you are wasting your time and losing out on income.

Protect Your Time and Resources
Working with preapproved buyers is the best way to ensure you are putting all your energy into clients who are likely to follow through – and who are capable of following through – on a purchase. Having a trusted mortgage lender partner who provides free preapprovals to all your prospective buyers is crucial to ensuring you are focusing on the right clients and managing your time in a way that will maximize your profits.

Prequalification vs. Preapproval
There is a big difference between prequalification and preapproval. With a prequalification, the lender makes a cursory examination of the prospective borrower's finances to estimate how much money the client may qualify for. Preapproval, on the other hand, is actually an extensive process during which the mortgage lender examines the client's debt, income, savings, assets and credit report to ensure the borrower can repay the loan. In essence, preapproval states that the prospective buyer is qualified for and would definitely be approved for a loan. Buyers who take the time to go through the process are serious buyers; buyers who are preapproved are qualified buyers. These are the people you want to spend your time helping.

Making Your Offer Count
In addition to ensuring your client can purchase a home, preapproval also helps you guide them to the homes they can actually afford by letting you know what their budget will be. Plus, an offer from a preapproved client will be taken much more seriously by sellers, as they can see that the buyer is qualified for and can receive the loan to follow through on the offer. The mortgage lender provides the client with a letter stating the dollar amount the client is preapproved for, which you can add to the purchase offer.

Getting Preapproved
I offer free preapprovals to any prospective homebuyer who is serious about buying a new home. As a professional loan originator, I can work with our mutual clients to review their assets and debts, explain their options and help them decide on a price range they can afford and that they are comfortable with. It is my goal to provide our client with information to help them make an informed decision, and to help ensure you are focusing on the warm leads that will turn into homebuyers.

A great way to maximize your time and capture leads while they're hot is to invite your trusted loan originator partner to your open houses. The preapproval process can start immediately and you can see which attendees are serious about purchasing in the near future.

Call me today to discuss how I can help you maximize your profits and grow your business by ensuring you are dealing with preapproved, serious buyers.

Take Care,

Jamie Larkin - Mortgage Advisor

jamie@jamielarkin.com

Posted by Jamie Larkin, Mortgage Advisor on February 2nd, 2012 7:09 AMPost a Comment (0)

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Protect yourself against identity theft!

January 19th, 2012 7:35 AM

What is identity theft?

Identity theft occurs when someone uses your personal identifying information, like your name, Social Security number or credit card number, without your permission, to commit fraud or other crimes.

How can you find out if your identity was stolen?

The best way to find out is to monitor your accounts and bank statements each month, and check your credit report at least once per year from each of the three major credit bureaus. You can request a free credit report at www.annualcreditreport.com.

You can minimize your risk of becoming a victim of identity theft by making it more difficult for identity thieves to access your personal information. Here are some tips from the Federal Trade Commission to help protect you from becoming a victim.

Shred financial documents and paperwork with personal information, before you discard them.
Protect your Social Security number. Don't carry your Social Security card in your wallet or write your Social Security number on a check. Ask to use another identifier, if possible.
Don't give out personal information on the phone, through the mail or over the Internet, unless you know whom you are dealing with.
Never click on links sent in unsolicited emails. Use firewalls, anti-spyware and anti-virus software to protect your home computer; keep them up-to-date.
Don't use an obvious password like your birth date, your mother's maiden name, or the last four digits of your Social Security number.
Keep your personal information in a secure place at home, especially if you have roommates, employ outside help or are having work done in your house.
Purchase an identity theft insurance policy to recover stolen funds or to pay for legal and/or other fees associated with recovering your identity.

By using these simple tips as a precaution you can greatly reduce the chances of having your identity stolen. Be sure to share them with your friends and family!

If you are looking to refinance or purchase a home in MN or WI please contact Jamie Larkin at 651-484-1474 or apply online today!

Posted by Jamie Larkin, Mortgage Advisor on January 19th, 2012 7:35 AMPost a Comment (0)

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Temporary Payroll Tax Cut Continuation Act of 2011 ...

January 12th, 2012 7:11 AM

1) Statement of FHFA Acting Director Edward J. DeMarco Regarding Implementation of Guarantee Fee Increase

"On Dec. 23, 2011, President Obama signed into law the Temporary Payroll Tax Cut Continuation Act of 2011. Among its provisions, this new law directs the Federal Housing Finance Agency (FHFA) to increase guarantee fees charged by Fannie Mae and Freddie Mac (the Enterprises) by no less than 10 basis points from the average guarantee fees charged by these companies in 2011 on single-family mortgage-backed securities.

This requirement is effective immediately, meaning that the average guarantee fees charged in 2012 need be at least 10 basis points greater than the average guarantee fees charged in 2011 and that this increase be remitted to the U.S. Treasury, rather than retained as reserves by the Enterprises. The law also requires FHFA to determine a schedule for guarantee fee increases over a two-year period that must satisfy other requirements of the law.

To begin implementation of these requirements, today I am directing Fannie Mae and Freddie Mac to announce before year-end to their seller-servicers that, effective April 1, 2012, the guarantee fee on all single-family residential mortgages shall increase by 10 basis points.

In early 2012, FHFA will further analyze whether additional guarantee fee increases are appropriate to ensure the new requirements are being met. FHFA will announce plans for further guarantee fee increases or other fee adjustments that will then be implemented gradually over the two-year implementation window, taking into consideration risk levels and conditions in financial markets. FHFA will monitor closely the increased guarantee fees imposed as a result of the new law throughout its effective period, which ends Oct. 1, 2021."

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.7 trillion in funding for the U.S. mortgage markets and financial institutions.

2) Why should this concern the mortgage business and you?

Basically for the first time the government is now for the 1st time diverting funds from fannie and freddie via a .10 higher guarantee fee to pay for general government expenses. So what is meant to limit the cost to taxpayers will end up being passed on to new borrowers by via interest rates.

Other points of interest.....

Fannie Mae, Freddie Mac and the FHA currently back more than 90 percent of loan originations this past year

The raising guarantee fee will not be used to offset risk of loan default.....as it is intended to do.

This sets a bad precedent on how the government is going to raise revenue through effectively taxing fannie and freddie loans.

What happened to the plans to reverse the trend and reduce the governments involvement in the mortgage business this year? This plan will only expand their role.

Take care,

Jamie Larkin CRMS, MMS

www.jamielarkin.com

Licensed Mortgage Professional

Posted by Jamie Larkin, Mortgage Advisor on January 12th, 2012 7:11 AMPost a Comment (0)

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Boosting your homes value in the kitchen

January 12th, 2012 6:02 AM

Picking the right upgrades can help set your home apart and above the competition in a hotly contested real estate market. Moreover, kitchen upgrades are the sorts of improvements that you and your family will benefit from and enjoy, given that the kitchen serves as the nexus for many families. You cook in your kitchen, you eat there, you talk there, and you even play there, so why not make it the best it can be?

When you pencil things out, the numbers of a kitchen upgrade are quite compelling in terms of adding value to a home while giving you upgrades that you will enjoy throughout the use of your kitchen. A major kitchen upgrade with a budget of $57,500 can recoup 66 percent of its cost when the home is sold, according to Remodeling magazine's "2011-12 Cost vs. Value Report." If you want to give your home a competitive edge while adding to its enjoyment, here are some great kitchen improvements to consider:

A professional-style sink that helps you prepare food in addition to cleaning dishes. Many options offer features such as removable trays for cutting food and racks for knives and other cutlery so that you can chop veggies and quickly clean up.
A hands-free faucet you operate by tapping it with your arm or elbow. This is a great way to prevent cross-contamination by keeping hands that have been cutting food from spreading germs to your faucet.
A pot-filler above your stovetop. This lets you fill up cooking pots while they sit on your range, which obviates the need to toddle back and forth across the kitchen balancing full pots while trying not to suffer a major spill.
A kitchen island that incorporates both a sink and electrical outlets along with the extra countertop, drawers and cupboards. This gives you additional workspace that you can truly use for food preparation.
A kitchen wine cooler to properly store your wine collection so that it is at the right temperature and well preserved. This will motivate you to collect and reserve unique bottles to highlight special occasions.
New countertops that buck the dominant trend. Sure, granite has been the trendy counter material, but there are some new options, such as recycled wood, bamboo, recycled glass, and unique tiles, that not only give your kitchen a custom look, but are also friendly to Mother Earth.
Kitchen cabinet replacements that focus on functionality. Don't just go for looks. Add kitchen cabinets that deliver storage and organization features that emphasize efficient use of space and that truly improve your kitchen efficiency.

Posted by Jamie Larkin, Mortgage Advisor on January 12th, 2012 6:02 AMPost a Comment (0)

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Setting sales goals in 2012

January 5th, 2012 5:56 AM

Generating sales success revolves around setting strategic goals. You might have a solid idea of what you want to accomplish. Don't be satisfied with reacting to events, or having only vague ideas of what you want to do.

Instead set out a strategic plan that identifies what you want to accomplish in your work, while taking care to outline the key objectives and milestones that will get you to your strategic goals. By doing this, you are plotting a course to your success.

Let's take a look at the key elements that should go into your goal-setting:

Be specific. You need to write down a very precise, exact goal that you want to accomplish; do not settle for a vague idea. Make sure to concisely describe the objective you want to attain, and try to attach some form of measurable "metric" that you can use to clearly quantify your success. Examples would include, "I want to increase my sales volume by 20 percent over the next three months," or "I plan to develop 20 new prospects in the Southeastern territory by April."
Set ambitious goals. It's one thing to set a timid goal that you know you can accomplish, but if you truly want to grow, you want to push yourself out of your comfort zone. Set something audacious. By setting something aggressive and not easy to achieve, you will push your personal and professional growth. Tough goals force you to strive and dedicate yourself to accomplishing them. This isn't to say you should be unrealistic, but don't be afraid to be a little uncomfortable.
Set firm, thoughtful deadlines for your goals. When it comes to being specific about your goals, make sure that you carefully consider the timeline required to get you to your goal. Whatever deadline you set must be written at the same time, but you want to balance your ambition with some realism. Think of the milestones that will get you to your goal and how long they will take. Just make sure to resist the temptation to pad your timeline.
Commit yourself. All your careful advance work of setting up specific, ambitious, thoughtful goals will go out the window if you do not truly take your goals to heart and commit yourself to accomplishing them. Harness that ambition you used when outlining your goals and leverage it to drive the process. Don't let stumbling blocks undermine your commitment. Instead, constantly remind yourself of how you will enjoy or benefit from the payoff of accomplishing your goal.
Regularly track your progress. A good way to reinforce your commitment is through tracking your progress. If you live by the old saying that "what gets measured, gets managed," then you will be on a straight path to attaining your goals. If you indeed outlined a measurable, quantifiable goal, then you'll be able to regularly monitor your work to accomplish that goal to ensure you are on track. And, if you observe that you are slipping, you'll be able to quickly address whatever is undermining your efforts and steer yourself back on course.

Finally, make goal-setting a regular exercise. Set a regular schedule for outlining your next set of strategic goals, and you will put yourself on a trajectory for constant achievement.

Posted by Jamie Larkin, Mortgage Advisor on January 5th, 2012 5:56 AMPost a Comment (0)

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I've Moved Companies!!

January 3rd, 2012 6:35 PM

I am pleased to announce that I have recently joined American Mortgage & Equity Consultants, Inc (AMEC, Inc.). I will remain working at the same office location in White Bear Lake and my phone number has not changed. However, please update your contacts with my new e-mail address jamie@jamielarkin.com .

American Mortgage & Equity Consultants Inc is one of the fastest growing and most progressive companies in the area which enables me to provide the best products, rates, service and support available. My goal is to continue delivering outstanding service and a more robust product line to my customers.

I want you to know that I will continue to maintain my commitment to creating a lending experience that is enjoyable, creative, and worthy of your endorsement of me to your family, friends, and coworkers. I will continue working hard to earn your business, and I want to personally thank you for your loyalty and support.

If you have any questions you may reach me by phone at: 651-484-1474 or by email at: jamie@jamielarkin.com.

Thank you,

Jamie T. Larkin, CRMS, MMS

Mortgage Advisor / Manager

Office: 651-484-1474

Fax: 651-484-1468

Cell: 612-306-3004

Email: Jamie@JamieLarkin.com

Web: www.JamieLarkin.com

NMLS # 285234

CRMS -Certified Residential Mortgage Specialist ™

MMS – Minnesota Mortgage Specialist ™

American Mortgage & Equity Consultants, Inc.

4511 Allendale Drive

White Bear Lake, MN 55127

Posted by Jamie Larkin, Mortgage Advisor on January 3rd, 2012 6:35 PMPost a Comment (0)

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FHA Anti Flipping Waiver Extended Through 2012

December 23rd, 2011 3:56 PM

Released 12-22-2011:

FHA Extends Waiver of Anti-Flipping Regulations Through 2012:

In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Acting Federal Housing Administration (FHA) Commissioner Carol J. Galante will extend FHA’s temporary waiver of the anti-flipping regulations.

With certain exceptions, FHA regulations prohibit insuring a mortgage on a home owned by the seller for less than 90 days. In 2010, FHA temporarily waived this regulation through January 31, 2011, and later extended that waiver through the remainder of 2011. The new extension will permit buyers to continue to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. It will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

The extension is effective through December 31, 2012, unless otherwise extended or withdrawn by FHA. All other terms of the existing Waiver will remain the same. The Waiver contains strict conditions and guidelines to prevent the predatory practice of property flipping, in which properties are quickly resold at inflated prices to unsuspecting borrowers. The Waiver continues to be limited to sales meeting the following conditions:

· All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.

· In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the Waiver will only apply if the lender meets specific conditions and documents the justification for the increase in value.

· The Waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

For FHA technical support, please contact the FHA Resource Center at: www.hud.gov/answers Search our online knowledge base & find answers to our most commonly asked questions. You can also get email technical support at: answers@hud.gov or phone FHA toll-free between 8:00 a.m. & 8:00 p.m. ET (5:00 a.m. to 5:00 p.m. PT) at: (800) CALLFHA or (800) 225-5342. Call FHA TDD at: (877) TDD-2HUD (877) 833-2483).

Posted by Jamie Larkin, Mortgage Advisor on December 23rd, 2011 3:56 PMPost a Comment (0)

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Planning Your Estate with a Revocable Living Trust

December 16th, 2011 4:34 AM

No one ever wants to consider estate planning. (Mulling over your mortality doesn't posses much appeal, as a rule.) However, properly ensuring that your loved ones will benefit from your estate while having to deal with as little trouble as possible is critical.

One key estate planning document you should consider is a revocable living trust (RLT). An RLT is akin to a will in that it describes and controls how your estate goes to your beneficiaries, but it differs from a will in many ways.

A primary difference is probate. A will essentially dictates to whom your estate should go to upon your death and how, but wills are typically held up in the process know as probate. Probate allows a judge to review and confirm the will, to ensure that that your last wishes are indeed being carried out to your specifications, and then your assets are moved to your beneficiaries. In some states, that process can last as long as two years and can require your beneficiaries to pay statutory fees before some assets, such as real estate, can be transferred to them.

But an RLT avoids this. An RLT is established by a person referred to as the grantor or trustor, and is managed by someone called the trustee, who is often the grantor, but not always. The trust could have multiple co-trustees, such as a husband or wife, or even an institution. A successor trustee is also established. This is the person who will manage the trust when the grantor dies or becomes unable to manage the trust due to some incapacity.

That is an important element to an RLT, because unlike a will, your beneficiaries are taken care of by an RLT even if you do not pass away. If, for example, you were rendered comatose, your loved ones would still be taken care of. Because of this RLTs are worth considering not just in cases of classic "what will happen in the event of my death" types of estate planning, but even for young married couples with children, and other individuals who have people depending on them.

This is another difference between an RLT and a will – the trust holds your assets while you are alive. When an RLT is established, you "fund" the trust by putting your assets into the trust, but you still have full control of your assets while you are alive and have your faculties. You are simply now controlling them as a trustee of the trust.

If you were to pass away, the assets are already part of the trust, and can then be transferred to your beneficiaries without having to go through probate. This is also helpful if children are involved. The trust can be set up in such a way to administer how they are benefited by the estate, so that the assets can't be squandered or mismanaged. This also helps you avoid the need to establish a guardianship or conservatorship.

There are other benefits to an RLT, as well, such as being able to get the full benefit of estate tax exemptions, and keeping your estate out of the public view that would otherwise occur in probate. That said, RLTs are typically more expensive to establish than drawing up a will, because they involve more planning.

If you're interested in learning more, make sure to contact an estate planner who can take you through the steps of establishing an RLT in greater detail. Making informed decisions about how your estate is managed might be a tough task to face, but you'll rest easy knowing that you did.

Posted by Jamie Larkin, Mortgage Advisor on December 16th, 2011 4:34 AMPost a Comment (0)

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10 Home Holiday Projects

December 8th, 2011 11:20 AM

As winter weather and quickly fading sunlight bring an end to exterior home projects and landscaping, homeowners must turn their attention to the inside of their homes. While the holiday hustle and bustle might seem like a difficult time to schedule in any household projects, it's a great opportunity to address smaller scale home maintenance and repairs that don't gobble up too much schedule space. Here are 10 great ways to keep the home humming in fifth gear during the holiday season:

Consider wrapping your hot water heater tank to help keep water temperature high and drive down your utility bills. Make sure to get proper instructions on how to install, and pay close attention to all safety requirements.
Similarly, get some duct tape and pipe insulation from the local home store and wrap your hot water pipes. Not only will you save money, but you won't have to wait all morning for your shower to warm up.
Inspect and clean your laundry appliances. First, unplug them from any outlets. Then start with the washer by disconnecting the water hoses and see if the fiber or rubber washers need replacing. Disconnect the vent hose from your dryer and clean any built-up lint.
Clean underneath your refrigerator, and clean off its coils, and change your fridge's water filter if it features water dispenser.
Inspect the grout on your kitchen and bathroom tiling around sinks, showers and tubs and clean and repair where necessary.
Remove the drains from your sinks and clean them thoroughly. Also, remove the lower, u-shaped "trap" under your sinks and remove any clogs. Similarly, remove showerheads and any removable faucet heads and soak them in vinegar to clean off mineral build-up.
Tighten things up by going from room to room with flat-head and Phillips-head screwdrivers, as well as some Allen keys, securing any loose hardware on furniture, cupboards and similar fixtures.
Have any banged up wooden furniture? Sanding down and re-finishing dings and scratches is something that can be accomplished out of the way and on a manageable scale. Make sure to do any refinishing in a well-ventilated area.
As the season winds to a close, make sure to take down any holiday lights. If you staple your strings of lights to your home's exterior, make sure to fully remove the staples with a pair of pliers to prevent them from rusting and spoiling your home's trim.
Make sure to mulch any Christmas trees and similar decorations, such as wreaths and garlands. Most home stores and tree sellers provide mulching services, and your city or county trash service might do so as well.

Jamie Larkin - Minnesota Mortgage Specialist

Posted by Jamie Larkin, Mortgage Advisor on December 8th, 2011 11:20 AMPost a Comment (0)

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Opening Doors with the Right Questions

December 5th, 2011 10:40 AM

While it's tempting to think that sales is chiefly concerned with presenting and making a case for what you have to offer, that's not the case. If anything, you want the client to do most of the talking. The goal is to fully understand the client's situation, what the client needs, and the challenges that the client faces. This will help you frame a sales offering that will perfectly address the client's circumstances.

The way to get all that information is ask open-ended questions. By focusing on questions that get your clients to explain the how's, why's and what's of their wants and needs, you will put yourself in a much better situation to get their business. Your goal is to build a constantly growing list of questions that get the client to open up:

What is your end goal? What are you hoping to accomplish, or what problem are you trying to solve?
What is your company's overall strategy?
How does your goal fit your company's overall strategy and situation?
Could you describe your current situation?
Are you facing any key market shifts or challenges?
What factors about the current economy most worry you?
Have you identified any possible new opportunities in your marketplace you are hoping to leverage?
Have you tried other offerings? What was the outcome?
Are you looking at other solutions? Which ones are they? Why?
Have you quantified where you stand in terms of your goal using metrics such as money saved, hours gained, market share acquired, and where do you stand?
What have you determined in terms of how the solution will fit into your business process?
What is your timing for this project; do you have a deadline?
What is your evaluation process, and how can I best conform to it?
How do you prefer to receive presentations, both in terms of content and time consumed?
What is your budget for this project?
Who, in addition to yourself, will make this decision? Can I meet with them?
When would you like to set our next meeting?
How does this project affect you as an individual and your department?

Remember that when you ask your questions, the goal is to get your clients talking. Never assume you know what they are going to say. Let them fully answer, and don't be afraid to ask additional questions that help them further clarify their situation. The more they explain, the more they will help you tailor an offering that is bound to get them to finally give you the ultimate answer of, "yes, you have my business."

Posted by Jamie Larkin, Mortgage Advisor on December 5th, 2011 10:40 AMPost a Comment (0)

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