St. Louis Real Estate - Where is my 4.75% Rate I was Promised??

Filed under: Mortgage News

If You’re Holding Your Breath for 4.75% Interest Rates, You’d Better Read This First 

 The last few weeks in the mortgage industry have been a flurry of activity to say the least.  Mortgage Professionals have had little chance to dial out and reach our clients.  With all the incoming questions about refinancing or picking up the pace on finding a new home and take advantage of great rates, it’s all we can do to keep up with the inquiries.  (No complaints mind you-can I get a Hallelujah?)

The persistent question is, however, “Where is the 4.5% rate I’m hearing about?  Can’t I at least get 4.75% rates?” 
Answer:  “YES!” 
Addendum:  “It’s gonna cost you to get it”

Case in point, I had a long standing client call to tell me that a bank affiliated with his insurance company called to offer him a 4.375% 30-year fixed loan, with $0 closing costs.  He was going to take the deal over my offer of 5.25% 30 year fixed with $0 closing costs.  I called him back immediately and told him if he could truly get that deal, he should SIGN the paperwork NOW!!  I couldn’t offer him the same deal and if they were serious, it wouldn’t last long.

I offered him one last bit of free advice.  He was, after all, a good client and I couldn’t help but look out for his interests.  “Get a Good Faith Estimate” I told him.  I’d be happy to look it over with you and review it for you at no charge.  Just to make sure you’re getting what you deserve.  His credit is stellar, assets in fine shape, loan to value low.  He ought to get a great mortgage…he’s earned it.

He called me three days later to say he saw the GFE and it included $6,000 of (supposedly free) closing costs rolled into his loan.  His rate in writing on the GFE was now 5.375%. 

Rolling closing costs into the new loan is not uncommon.  Portraying it as “no cost” to the client is misleading.  Unless the bank is paying or the Mortgage Professional is paying, the borrower is going to pay for closing costs over time included in the new loan.  Hint:  Always verify the APR statement or Truth In Lending to check this.  If you don’t know how to evaluate what you’re really paying, ask an experienced Mortgage Professional to explain it.  It’s important.  (As a gesture of good will and thanks for my client’s continued business, my original offer was to cover his closing costs out of the commissions I was being paid from the lender.)   

Quoting someone a 4.375% is also acceptable, so long as it’s explained what it will cost to “purchase” that interest rate with discount points.  At the very minimum, it must be explained that this is a BASE rate.  Each and every change in the “standard” conventional loan process COSTS THE BORROWER in interest rate.  These are called pricing “add on’s” and they can hurt.  Increasing my client’s loan amount, for example as this bank did, raises the loan to value and costs a bump up in interest rate.  His closing date was going to be 60 days away.  That sort of delay also COSTS THE BORROWER in interest rate.

Unfortunately, advertised rates are not the final rate you will get, once all the factors to suit your INDIVIDUAL needs are put into the equation.  You must have a Mortgage Professional who will look at your whole situation and offer you options on what will suit your objectives.

Bottom line is, we weren’t looking at an “apples to apples” offer.  And it didn’t turn out to be what he’d been promised.

Result?  He’s still my client and my offer at 5.25% with $0 closing costs (for real) turned out to be a pretty darn good deal for him.

Having a Mortgage Professional who will give you the most HONEST answers is critical, especially today.  It’s important to know that person is working in your best interest.  Even if it means telling you to take the competitor’s deal when it serves you.  There are so MANY variables in today’s mortgage market, even the most savvy borrower can’t keep up with them. 

In today’s lending environment, staying abreast of underwriting changes is as challenging as keeping up with the tax code.  Even more difficult to be realistic.  Make certain you work with someone who is constantly informed and can educate you.  Uneducated mistakes will cost you not just at the closing table, but for the life of that loan.  Feel free to browse my website at www.LoansByAprille.com to find useful information such as this at your fingertips.  Or contact me directly at (314) 363-3913 or Aprille@LoansByAprille.com to get answers to your questions.

Posted by Aprille Trupiano   |   Read More   |   Your Comments Are Welcome!   |   02.03.2009

Let’s say THANKS!

Filed under: In General

Xerox has partnered up and is sending postcards (and goodie boxes) to our troops abroad.It costs you nothing but about 5 minutes of time to THANK and ACKNOWLEDGE the men and women (many of whom we know and care about) who are representing our country.  

THIS IS NOT A POLITICAL STATEMENT IN ANY MANNER, NEITHER EXPLICIT NOR IMPLICIT.  

Whether you agree or disagree about any war, keep in mind, the PEOPLE who are abroad are what’s important. Take a minute and let them know we are grateful for every hardship they face each and every day - often without respite (there IS NO VACATION when you are deployed). Say thank you for the sacrifices they (and their families) make and that we appreciate that they are someone who is doing what they do simply because they GAVE THEIR WORD AS THEIR HONOR to do so. With no expectations of glory. 

Notice that these postcards are designed by children. They are designed by future generations who one day may or may not agree with all of our country’s policies and behaviors - more importantly, they are the HOPE that we have that one day we will not need to send so many postcards to soldiers fighting abroad!! 

I’ve already sent two and will send one each day as long as Xerox is willing to keep the site going. Please join me in sharing some human kindness and generosity. (If you are hesitant, I invite you to check out the link “From the Troops” and then decide)

www.LetsSayThanks.com

Aprille Trupiano
Mortgage Banker
First Integrity Mortgage Services
Direct:  (314) 363-3913
Office:  (314) 878-7900

Posted by Aprille Trupiano   |   Read More   |   Your Comments Are Welcome!   |   12.06.2008

St. Louis Real Estate - Mortgage News

Filed under: First Time Home Buyer, For Buyers, Relocation Buyer

Spreading the Good News . . . The bond market is alive and well! 

A very IMPORTANT change is going on and it is great news for our Realtors and clients. That news has a direct impact on why interest rates have been drastically falling.

There has always been a correlation between the bond market and the stock market.

In traditional times money would flow into or out of the stock market. When investors pulled money out of the stock market it would flow into the bond market. As money flowed into bonds interest rates would drop. We lost this ying and yang system for some time because money was placed in the cash markets instead of bonds. 

The bond market has now returned as an off-set to stocks. That is why with the decline in stocks money is now headed to bonds and your interest rates are declining.

NOW IS THE TIME TO BUY A HOUSE! 

Aprille Trupiano
Mortgage Banker
314. 363.3913
Aprille@LoansByAprille.com

www.LoansByAprille.com

Posted by Aprille Trupiano   |   Read More   |   Your Comments Are Welcome!   |   12.06.2008

St. Louis Real Estate - Mortgage Underwriting

Filed under: First Time Home Buyer, For Buyers, Relocation Buyer

So what’s the big deal about In House Underwriting?

Certainly you’ve heard the term “underwriting”.  But does it mean anything to you other than a nameless, faceless, omnipotent force that determines the future of your loan?

Underwriters are real live people who assess your credit history, the probability and ability you present to repay your loan successfully, and the value of the property as a worthy collateral asset for the funds the lender will loan you. 

When choosing a lender, a very important question to ask is:  “Where are your Underwriters?”  You see, most underwriters are miles and miles away in another city, working on loans that have no faces or real people attached to them.  While they may be good at doing their job, they often just check off the list of what’s needed without even considering the human element because it’s just one of the many loans they have to move through the system. 

In-house underwriters understand that you are a real person whose financial future and whose family’s peace of mind are at stake.  Being just a few steps away from my actual desk, I often ask my in-house underwriters to assist me when working with my clients before even sending them the full loan package.  This insures that if there are any challenges, those are addressed and managed at loan application, NOT the day before closing.  They expertly and quickly answer not only my questions, but my clients’ and my Realtor partners’ questions also. 

Having an in-house Underwriter allows your Mortgage Professional to be your champion in dealing with the uncertainties that the current lending climate can bring.  It gives us direct access to the person who has the final say, which gives you extra peace of mind that when it’s got “final approval” on it, there’s not a shadow of a doubt.  In-house underwriting equals NO HASSLES and ON TIME closings.

 So…In House Underwriting…it’s a BIG DEAL!

 Just ask Kathi S, who had this to say just this month about her loan process with us…

“I was blown away when I found out Aprille had gotten the loan approval back 10 days ahead of schedule, more than two whole weeks before closing. Thank you Aprille!”

Aprille@LoansByAprille.com
www.LoansByAprille.com

Posted by Aprille Trupiano   |   Read More   |   Your Comments Are Welcome!   |   11.20.2008

St. Louis Real Estate - 100% Financing

Filed under: For Buyers, Mortgage News

100% Financing an urban legend?  No way…it’s still available!

There IS 100% financing.   MHDC funds, organized and funded by the Missouri Housing Development Commission, offers the First Place program.  Currently, there remains over $11million dollars available to Missouri residents who qualify. 

How it works:

• First Place program supplies the 3% down payment funds at closing for the Buyer.
• Simple application process - you apply through your trusted mortgage professional.
• Funds are disbursed in the form of a second mortgage on the property.
• Applies to first time homebuyers and qualified veterans.
• First Place loan is a 30 year fixed rate mortgage.
• It’s used in conjunction with FHA, VA, USDA loans and is Fannie Mae qualified.

So what’s the catch?

• Not all lenders are approved (so you’ll need to ask up front).
• The interest rate is set by the government (right now, that’s a good thing).
• There are maximum income levels and maximum purchase prices (check with your lender).
• You must live in the home for a period of five (5) years (or repay the balance at sale).
• It’s a loan and not a grant - however, it’s still forgivable after five (5) years.
• There may likely be other tax ramifications (ask your tax expert).

So what’s the message to you?  There are still many options available if you are serious about buying a home right now.  It’s a fabulous time to purchase your new home and get a great deal.  The question is…what are YOU waiting for now? 

For more information on the MHDC loans, you can go to the website at http://www.mhdc.com/ or you can contact your mortgage professional directly.   I’m also available to answer your inquiries at Aprille@LoansByAprille.com  or (314) 363-3913. Once you’re pre-approved for MHDC funding, call your Realtor and get out there house hunting!

Posted by Aprille Trupiano   |   Read More   |   Your Comments Are Welcome!   |   11.03.2008

St. Louis Real Estate - Your Credit Score

Filed under: For Buyers

If you’ve had your head in the sand about dealing with your credit, now is the time to stand and face the music.  More than ever in recent years, it is imperativethat you manage your credit history and credit scores attentively and responsibly.  Today, a 700 is the same as 640 used to be.  Remember, that is your MID score requirement, not the high score.  It’s necessary to collect all three for an accurate assessment.  As it stands, nearly all lenders require a minimum of 620 for conventional loans and a minimum of 580 for government loans like FHA and VA.  And the bar keeps raising as we go. Here is just a snapshot to get you started and if that’s not enough, join us for a webinar with Credit Resolution Guru, Ron Marchiani Wednesday, October 22nd at 6:00pm.  Details are at bottom. 

Facing the Music - Find Out What’s in the Report

• The three major credit “repositories” (bureaus) are Equifax, Experian and Trans Union Corp.
• Requesting a report from each should cover your complete credit history (reports can be requested online: www.equifax.com , www.experian.com , www.transunion.com ).
• You are entitled to one free credit report per year.

Don’t Take Their Word for it - See if Somebody Goofed

• Most financial information, such as a credit card payment history, is sent directly from creditors’ computers to the three repositories’ computers.
• Data transfer still involves human input, including information gathered from courthouse files, for example.
• Simple recording errors or mistaken identities could result in a mistake on the credit report.

Be a Vigilante - Request Corrections

• Credit bureaus are obligated to investigate complaints and correct errors.
• Consumer vigilance is important, nonetheless, because the bureaus are not as diligent as we would hope.

Start Doing the Dance - Get Ready to BUY or REFINANCE!

• Do things to offset your credit if it’s less than ideal.
• Opt out of credit card offers at 888-5-OPTOUT - this will raise your score.
• STOP making inquiries or allowing anyone else to make inquiries 60 days before you are ready to buy.
• Make sure your Mortgage Broker is not running the credit over and over.
• Don’t be late on payments - one month can cost you down the road!!
• Pay off all recent small collections - especially medical and utilities (let the old ones sit or you could reactivate a dormant account and actually hurt your credit more).
• Start putting money in the bank - 100% financing is no longer available, although FHA still allows 97% and many 95% loans.
• Build good credit while you’re working on resolving old credit issues.
• Pay down high balance credit cards (your debt to credit ratio should not exceed 40%).
• DON’T cancel all your credit cards. Keep the three or four oldest ones and maintain good payment histories and low balances to continue good credit reporting activity.

Plan for your Future - Get the Right Home Mortgage

Count on your Personal Mortgage Professional for smart financing options and the expertise to help you achieve your goals.  Your home mortgage should be part of your overall financial planning picture, not just something you do “for now”.

Don’t Procrastinate - Call your Personal Mortgage Professional EARLY in the process to:

• Buy a new home.
• Refinance your home to pay off high interest debt, make improvements.
• Eliminate Private Mortgage Insurance (PMI) and increase monthly cash flow!

For more indepth information, some great overview booklets can be found here:

http://www.myfico.com/crediteducation/brochures

http://www.consumerfed.org/topics.cfm?section=Finance&Topic=Credit%20Scores%20and%20Reporting 

If you’d like to join us and learn more about your credit, how to evaluate it and how to improve it, please join us.

Date: Wednesday, October 22, 2008
Time: 6:00 pm, Central Daylight Time (Special Realtors ONLY Session begins at 5:30pm)
Meeting Number: 615 784 337
Meeting Password: credit

Please click the link below to see more information, or to join the meeting.
——————————————————-
To join the online meeting (you must be in front of your computer)
——————————————————-
1. Go to https://meetings.webex.com/meetings/j.php?ED=5638742&UID=0
2. Enter your name and email address.
3. Enter the meeting password: credit
4. Click “Join”.
——————————————————-
To join the teleconference only
——————————————————-
Call-in number (US/Canada): 1-650-429-3300
Toll-free dialing restrictions: http://www.webex.com/pdf/tollfree_restrictions.pdf
——————————————————-
For assistance go to http://www.webex.com/go/ppusupport
——————————————————-

WHAT DO YOU THINK? TAKE OUR POLL.

Do you think the mortgage lender is getting TOO strict on credit now?
( polls)

Posted by Aprille Trupiano   |   Read More   |   Your Comments Are Welcome!   |   10.21.2008

St. Louis Real Estate - Financial Meltdown

Filed under: Real Estate News

“Too weird for words”…that’s our financial world right now.

As a result, Chicken Little is running wild!  And he is providing fuel for every single media outlet in this country.  “The sky is falling, the sky is falling…”  Well, unless you’re willing to live in a bomb shelter that your grandparents or great grandparents built and eat canned goods for the next 12-18 months, you would do well to be calm in the face of this storm that we’re in today.   Because let’s face it, the storm’s hit and the fan is blowing at high speed.

So let’s talk reality about the financial marketplace.  What are some fundamental truths that most people aren’t aware of today?  Consider that historical studies show that the Dow Jones typically experiences a sharp and sudden drop every 4.3 years.  The last one we had in the US was in 2001, so we are 2.7 years overdue.  The S&P 500 historically experiences a sudden drop of similar magnitude as we’re seeing every 10 years.  We haven’t had one since the crash of 1987, making us 10 years overdue.  What we are experiencing, while painful and frustrating, is not unexpected for those who understand the marketplace.  What IS unexpected is the fact that it this occurrence coincides with all of the backlash of the real estate failures we are seeing.

I will not waste time pointing fingers or laying blame.  There aren’t many who are without responsibility in this mess.  However, what I will highlight is the element at the HEART of our circumstance that can have the most effect at an individual level.  That is, unequivocally, consumer sentiment.  This is the only thing that we as individuals can affect personally…put our minds on the positive and move forward with life.  While unemployment has risen, it is still nowhere near the 9.0 and 10.8 percent levels of our worst recessions as a nation.  Nor is it at the average recession level of 7.6 percent.  We are at 6.2 percent in the St. Louis metro area.  That means that 93.8 percent of us do have work and we can continue to give 100% when we are fortunate to be able to go.

In the long run, if consumer sentiment continues to drop and panic continues to rise in our hearts and minds, we as individuals will only perpetuate what has befallen us.  Spending tightens up because people are afraid-afraid to lose their jobs, afraid to run out of gas (which is at a new low of $80/barrel by the way, eyes on the pumps), afraid to lose their houses.

Panic is infectious and it is paralyzing. The media has done a fine job of spreading the virus.  But let’s face it, no matter how the fat cats on Wall Street have squandered or mismanaged, we as individuals still have work to do, mortgages to pay, families to raise and nurture.  No matter what gas costs, we have to buy it to do the things in life we need to accomplish each day.  No matter what milk and eggs cost, we have to buy them to feed our children.  And we will.  Because that’s what we do.  I’m not playing Pollyanna; I have the same worries and concerns, the same bills to cover each month.  Yet I say that we are resilient.  The United States has had 10 recessions throughout history and, on average, they’ve lasted 10 months, on one occasion it lasted as long as 14 months.

What to do?  No sense complaining, losing sleep, worrying.  Know that the nation will take care of itself.  We have more resources and opportunities to restructure and rebound from the financial situation of today than in any other era in which such tribulations occurred.  Be concerned for yourself.  Take actions to make sure your future is secure.  Review your financials with your financial planner (or your spouse/partner) and create a strategy for rebuilding.  Give 110% at work and make yourself so valuable if a staff cut should come down the pike, you’re not on the short list.  Eat well, perhaps just less extravagantly.  Your health is important.  Spend normally, just more wisely.  It will stimulate the economy and support your communities.  Love your children and teach them courage and faith, not fear and scarcity.  It will be your legacy to them and their future.  The rest is all temporary.

Posted by Aprille Trupiano   |   Read More   |   Your Comments Are Welcome!   |   10.11.2008

St. Louis Real Estate - New Face, New Voice

Filed under: Mortgage News

Greetings…
I’m Aprille Trupiano and I’m excited to be a part of the St. Louis Real Estate Voice community!

In today’s volatile financial market, it’s important to have expert advisors supporting your most important decisions. Along with the other professionals on the St. Louis Real Estate Voice, I look forward to contributing to those decisions for you and your family.
As a Mortgage Banker, I approach each and every consultation with my Borrowers bearing the same principal in mind - to provide sound information that is relevant to my clients’ future. I am not interested in “closing the deal” today to get you a loan that will “just do”. Today more than ever, you have to know how your financial decisions will impact you tomorrow. I am committed to securing you a mortgage that will serve your needs today as well as protect you and your family in the future.
Call me at (314) 878-7900 or email me at Aprille@FirstIntegrity.com  to get a complimentary copy of my Special Report, “How to Select a Personal Mortgage Consultant and Why Having One is Important to Your Future”. There’s no fee for the report, but being misinformed can be very costly.

Posted by Aprille Trupiano   |   Read More   |   Your Comments Are Welcome!   |   10.06.2008