John Sweet, The Belmont Expert Realtor, has partnered with the Avery Group at Roy Wheeler Realty Co. They will now work as a well oiled machine in the Belmont area of Charlottesville, VA. This will be a powerful partnership, delivering superior service and information to the Belmont residents.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Showing posts with label Announcements. Show all posts
Showing posts with label Announcements. Show all posts
Thursday, February 5, 2009
John Sweet Partners with The Avery Group
John Sweet, The Belmont Expert Realtor, has partnered with the Avery Group at Roy Wheeler Realty Co. They will now work as a well oiled machine in the Belmont area of Charlottesville, VA. This will be a powerful partnership, delivering superior service and information to the Belmont residents.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
February 5th, 2009 Morning Market Update
"Bonds are having another volatile morning on the heels of more bad news on the labor front. Initial Jobless Claims reached the highest level in 26 years. In addition, while Productivity in the 4th Quarter was better than expected, Output in the 4th Quarter declined by the largest amount in 26 years.
In other news, the Senate voted to include a $15,000 tax credit in the new stimulus plan in hopes of revitalizing the slumping housing market. The stimulus bill is still working its way through Congress after being voted on in the House last week, and its impact still remains to be seen.
Overall, Bonds have drifted significantly lower since peaking on January 9th. If tomorrow's Jobs Report is as bad--or worse--than expected, Bonds could rally on the negative economic news. Therefore, I recommend floating ahead of the Jobs Report, but I will let you know if we need to shift gears."
Brought to you by:
Leonard Winslow
Gateway Bank Mortgage
690 Berkmar Circle
Chrlottesville, Va 22901
(O) 434-220-3409 (F) 434-220-3429
(M) 434-760-2580 email leonardwinslow@gwfh.com
www.emortgageware.com/leonardwinslow
In other news, the Senate voted to include a $15,000 tax credit in the new stimulus plan in hopes of revitalizing the slumping housing market. The stimulus bill is still working its way through Congress after being voted on in the House last week, and its impact still remains to be seen.
Overall, Bonds have drifted significantly lower since peaking on January 9th. If tomorrow's Jobs Report is as bad--or worse--than expected, Bonds could rally on the negative economic news. Therefore, I recommend floating ahead of the Jobs Report, but I will let you know if we need to shift gears."
Brought to you by:
Leonard Winslow
Gateway Bank Mortgage
690 Berkmar Circle
Chrlottesville, Va 22901
(O) 434-220-3409 (F) 434-220-3429
(M) 434-760-2580 email leonardwinslow@gwfh.com
www.emortgageware.com/leonardwinslow
February 5th, 2009 Morning Market Update
"Bonds are having another volatile morning on the heels of more bad news on the labor front. Initial Jobless Claims reached the highest level in 26 years. In addition, while Productivity in the 4th Quarter was better than expected, Output in the 4th Quarter declined by the largest amount in 26 years.
In other news, the Senate voted to include a $15,000 tax credit in the new stimulus plan in hopes of revitalizing the slumping housing market. The stimulus bill is still working its way through Congress after being voted on in the House last week, and its impact still remains to be seen.
Overall, Bonds have drifted significantly lower since peaking on January 9th. If tomorrow's Jobs Report is as bad--or worse--than expected, Bonds could rally on the negative economic news. Therefore, I recommend floating ahead of the Jobs Report, but I will let you know if we need to shift gears."
Brought to you by:
Leonard Winslow
Gateway Bank Mortgage
690 Berkmar Circle
Chrlottesville, Va 22901
(O) 434-220-3409 (F) 434-220-3429
(M) 434-760-2580 email leonardwinslow@gwfh.com
www.emortgageware.com/leonardwinslow
In other news, the Senate voted to include a $15,000 tax credit in the new stimulus plan in hopes of revitalizing the slumping housing market. The stimulus bill is still working its way through Congress after being voted on in the House last week, and its impact still remains to be seen.
Overall, Bonds have drifted significantly lower since peaking on January 9th. If tomorrow's Jobs Report is as bad--or worse--than expected, Bonds could rally on the negative economic news. Therefore, I recommend floating ahead of the Jobs Report, but I will let you know if we need to shift gears."
Brought to you by:
Leonard Winslow
Gateway Bank Mortgage
690 Berkmar Circle
Chrlottesville, Va 22901
(O) 434-220-3409 (F) 434-220-3429
(M) 434-760-2580 email leonardwinslow@gwfh.com
www.emortgageware.com/leonardwinslow
Wednesday, October 15, 2008
Rate Lock Advisory
This week brings us the release of seven economic reports that are of interest to the mortgage market. The week also gets heavy in quarterly earnings releases for companies, which could cause significant movement in the stock markets again. The earnings results could affect bond trading as investors move funds into stocks if the reports are good. The other possibility is that the earnings reports would generally disappoint, meaning investors may move funds out of stocks and into bonds as a safe-haven. The latter would be good news for the bond market and mortgage rates.
The bond market is closed tomorrow in observance of the Columbus Day holiday and will reopen Tuesday morning. The first pieces of data come Wednesday morning, which are two of the week's more important releases. The first is September's Retail Sales report. This data is very important to the markets because it measures consumer spending by tracking sales at retail establishments in the U.S. S ince consumer spending makes up two-thirds of the U.S. economy, any related data is considered to be highly important. If we see weaker than expected readings in this report, the bond market should respond favorably and mortgage rates should drop. However, stronger than expected sales could fuel a stock rally and push mortgage rates higher. Current forecasts are calling for a 0.4% decline in sales.
September's Producer Price Index (PPI) is the second report of the day. This index measures inflationary pressures at the producer level of the economy and is also considered to be of high importance to the markets. Analysts are expecting to see a decline of 0.3% in the overall index and a 0.2% rise in the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. A larger than expected increase could fuel inflation concerns in the bond market and push mortgage rates higher. But, weaker than expected readi ngs should lead to lower rates, especially if the sales report doesn't give us stronger than expected results.
Also scheduled for release Wednesday is the Fed Beige Book during afternoon trading. This data details economic conditions throughout the U.S. by region. It is relied upon heavily by the Federal Reserve during FOMC meetings when determining monetary policy. If it reveals stronger signs of inflation from the last release, we could see mortgage rates revise higher shortly after its 2:00 PM ET release.
Thursday morning also brings us two economic releases. The first is September's Consumer Price Index (CPI) that measures inflationary pressures at the consumer level of the economy and is one of the most important reports that the bond market gets each month. Analysts are expecting to see a rise of 0.1% in the overall index and an increase of 0.2% in the core data reading. A larger than expected increase in the core reading coul d raise inflation concerns in the bond market and push mortgage rates higher Thursday. However, a smaller than expected reading should ease inflation concerns and lead to lower mortgage rates.
September's Industrial Production data is the second release of the day and will be released mid-morning. It gives us an indication of manufacturing strength by tracking orders at U.S. factories, mines and utilities. It is expected to show a 0.8% drop in output from August's level, meaning that manufacturing activity fell sharply. A smaller than expected decline or an increase in output would be negative for bonds and mortgage rates while a larger drop should help push mortgage rates lower, assuming that the CPI shows favorable results.
The remaining two reports are both scheduled for release Friday morning. September's Housing Starts is the first, but is the week's least important piece of data. It gives us an indication of housing sector st rength and mortgage credit demand, but usually is not a mover of mortgage rates. It is expected to show a decline in starts of new homes last month. If it varies greatly from forecasts, we could see the bond market have some reaction to the news, but probably not enough to cause much movement in rates.
The last report of the week is October's preliminary reading to the University of Michigan's Index of Consumer Sentiment late Friday morning. This index measures consumer willingness to spend and usually has a moderate impact on the financial markets. If it shows a sizable decline in consumer confidence, bond prices will probably rise. It is expected to show a reading of 69.0, down from September's final of 70.3.
Overall, I am expecting to see a fair amount of movement in mortgage rates this week, but mostly the latter part of the week. The key reports are Wednesday's PPI and Retail Sales reports and Thursday's CPI data. But as we saw last week, we certainly don't need factual economic releases to see mortgage rates move. I am thinking we may still see plenty of volatility in the stock markets that may affect bond prices also. Accordingly, please proceed cautiously if you have not locked an interest rates yet.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
The bond market is closed tomorrow in observance of the Columbus Day holiday and will reopen Tuesday morning. The first pieces of data come Wednesday morning, which are two of the week's more important releases. The first is September's Retail Sales report. This data is very important to the markets because it measures consumer spending by tracking sales at retail establishments in the U.S. S ince consumer spending makes up two-thirds of the U.S. economy, any related data is considered to be highly important. If we see weaker than expected readings in this report, the bond market should respond favorably and mortgage rates should drop. However, stronger than expected sales could fuel a stock rally and push mortgage rates higher. Current forecasts are calling for a 0.4% decline in sales.
September's Producer Price Index (PPI) is the second report of the day. This index measures inflationary pressures at the producer level of the economy and is also considered to be of high importance to the markets. Analysts are expecting to see a decline of 0.3% in the overall index and a 0.2% rise in the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. A larger than expected increase could fuel inflation concerns in the bond market and push mortgage rates higher. But, weaker than expected readi ngs should lead to lower rates, especially if the sales report doesn't give us stronger than expected results.
Also scheduled for release Wednesday is the Fed Beige Book during afternoon trading. This data details economic conditions throughout the U.S. by region. It is relied upon heavily by the Federal Reserve during FOMC meetings when determining monetary policy. If it reveals stronger signs of inflation from the last release, we could see mortgage rates revise higher shortly after its 2:00 PM ET release.
Thursday morning also brings us two economic releases. The first is September's Consumer Price Index (CPI) that measures inflationary pressures at the consumer level of the economy and is one of the most important reports that the bond market gets each month. Analysts are expecting to see a rise of 0.1% in the overall index and an increase of 0.2% in the core data reading. A larger than expected increase in the core reading coul d raise inflation concerns in the bond market and push mortgage rates higher Thursday. However, a smaller than expected reading should ease inflation concerns and lead to lower mortgage rates.
September's Industrial Production data is the second release of the day and will be released mid-morning. It gives us an indication of manufacturing strength by tracking orders at U.S. factories, mines and utilities. It is expected to show a 0.8% drop in output from August's level, meaning that manufacturing activity fell sharply. A smaller than expected decline or an increase in output would be negative for bonds and mortgage rates while a larger drop should help push mortgage rates lower, assuming that the CPI shows favorable results.
The remaining two reports are both scheduled for release Friday morning. September's Housing Starts is the first, but is the week's least important piece of data. It gives us an indication of housing sector st rength and mortgage credit demand, but usually is not a mover of mortgage rates. It is expected to show a decline in starts of new homes last month. If it varies greatly from forecasts, we could see the bond market have some reaction to the news, but probably not enough to cause much movement in rates.
The last report of the week is October's preliminary reading to the University of Michigan's Index of Consumer Sentiment late Friday morning. This index measures consumer willingness to spend and usually has a moderate impact on the financial markets. If it shows a sizable decline in consumer confidence, bond prices will probably rise. It is expected to show a reading of 69.0, down from September's final of 70.3.
Overall, I am expecting to see a fair amount of movement in mortgage rates this week, but mostly the latter part of the week. The key reports are Wednesday's PPI and Retail Sales reports and Thursday's CPI data. But as we saw last week, we certainly don't need factual economic releases to see mortgage rates move. I am thinking we may still see plenty of volatility in the stock markets that may affect bond prices also. Accordingly, please proceed cautiously if you have not locked an interest rates yet.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Rate Lock Advisory
This week brings us the release of seven economic reports that are of interest to the mortgage market. The week also gets heavy in quarterly earnings releases for companies, which could cause significant movement in the stock markets again. The earnings results could affect bond trading as investors move funds into stocks if the reports are good. The other possibility is that the earnings reports would generally disappoint, meaning investors may move funds out of stocks and into bonds as a safe-haven. The latter would be good news for the bond market and mortgage rates.
The bond market is closed tomorrow in observance of the Columbus Day holiday and will reopen Tuesday morning. The first pieces of data come Wednesday morning, which are two of the week's more important releases. The first is September's Retail Sales report. This data is very important to the markets because it measures consumer spending by tracking sales at retail establishments in the U.S. S ince consumer spending makes up two-thirds of the U.S. economy, any related data is considered to be highly important. If we see weaker than expected readings in this report, the bond market should respond favorably and mortgage rates should drop. However, stronger than expected sales could fuel a stock rally and push mortgage rates higher. Current forecasts are calling for a 0.4% decline in sales.
September's Producer Price Index (PPI) is the second report of the day. This index measures inflationary pressures at the producer level of the economy and is also considered to be of high importance to the markets. Analysts are expecting to see a decline of 0.3% in the overall index and a 0.2% rise in the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. A larger than expected increase could fuel inflation concerns in the bond market and push mortgage rates higher. But, weaker than expected readi ngs should lead to lower rates, especially if the sales report doesn't give us stronger than expected results.
Also scheduled for release Wednesday is the Fed Beige Book during afternoon trading. This data details economic conditions throughout the U.S. by region. It is relied upon heavily by the Federal Reserve during FOMC meetings when determining monetary policy. If it reveals stronger signs of inflation from the last release, we could see mortgage rates revise higher shortly after its 2:00 PM ET release.
Thursday morning also brings us two economic releases. The first is September's Consumer Price Index (CPI) that measures inflationary pressures at the consumer level of the economy and is one of the most important reports that the bond market gets each month. Analysts are expecting to see a rise of 0.1% in the overall index and an increase of 0.2% in the core data reading. A larger than expected increase in the core reading coul d raise inflation concerns in the bond market and push mortgage rates higher Thursday. However, a smaller than expected reading should ease inflation concerns and lead to lower mortgage rates.
September's Industrial Production data is the second release of the day and will be released mid-morning. It gives us an indication of manufacturing strength by tracking orders at U.S. factories, mines and utilities. It is expected to show a 0.8% drop in output from August's level, meaning that manufacturing activity fell sharply. A smaller than expected decline or an increase in output would be negative for bonds and mortgage rates while a larger drop should help push mortgage rates lower, assuming that the CPI shows favorable results.
The remaining two reports are both scheduled for release Friday morning. September's Housing Starts is the first, but is the week's least important piece of data. It gives us an indication of housing sector st rength and mortgage credit demand, but usually is not a mover of mortgage rates. It is expected to show a decline in starts of new homes last month. If it varies greatly from forecasts, we could see the bond market have some reaction to the news, but probably not enough to cause much movement in rates.
The last report of the week is October's preliminary reading to the University of Michigan's Index of Consumer Sentiment late Friday morning. This index measures consumer willingness to spend and usually has a moderate impact on the financial markets. If it shows a sizable decline in consumer confidence, bond prices will probably rise. It is expected to show a reading of 69.0, down from September's final of 70.3.
Overall, I am expecting to see a fair amount of movement in mortgage rates this week, but mostly the latter part of the week. The key reports are Wednesday's PPI and Retail Sales reports and Thursday's CPI data. But as we saw last week, we certainly don't need factual economic releases to see mortgage rates move. I am thinking we may still see plenty of volatility in the stock markets that may affect bond prices also. Accordingly, please proceed cautiously if you have not locked an interest rates yet.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
The bond market is closed tomorrow in observance of the Columbus Day holiday and will reopen Tuesday morning. The first pieces of data come Wednesday morning, which are two of the week's more important releases. The first is September's Retail Sales report. This data is very important to the markets because it measures consumer spending by tracking sales at retail establishments in the U.S. S ince consumer spending makes up two-thirds of the U.S. economy, any related data is considered to be highly important. If we see weaker than expected readings in this report, the bond market should respond favorably and mortgage rates should drop. However, stronger than expected sales could fuel a stock rally and push mortgage rates higher. Current forecasts are calling for a 0.4% decline in sales.
September's Producer Price Index (PPI) is the second report of the day. This index measures inflationary pressures at the producer level of the economy and is also considered to be of high importance to the markets. Analysts are expecting to see a decline of 0.3% in the overall index and a 0.2% rise in the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. A larger than expected increase could fuel inflation concerns in the bond market and push mortgage rates higher. But, weaker than expected readi ngs should lead to lower rates, especially if the sales report doesn't give us stronger than expected results.
Also scheduled for release Wednesday is the Fed Beige Book during afternoon trading. This data details economic conditions throughout the U.S. by region. It is relied upon heavily by the Federal Reserve during FOMC meetings when determining monetary policy. If it reveals stronger signs of inflation from the last release, we could see mortgage rates revise higher shortly after its 2:00 PM ET release.
Thursday morning also brings us two economic releases. The first is September's Consumer Price Index (CPI) that measures inflationary pressures at the consumer level of the economy and is one of the most important reports that the bond market gets each month. Analysts are expecting to see a rise of 0.1% in the overall index and an increase of 0.2% in the core data reading. A larger than expected increase in the core reading coul d raise inflation concerns in the bond market and push mortgage rates higher Thursday. However, a smaller than expected reading should ease inflation concerns and lead to lower mortgage rates.
September's Industrial Production data is the second release of the day and will be released mid-morning. It gives us an indication of manufacturing strength by tracking orders at U.S. factories, mines and utilities. It is expected to show a 0.8% drop in output from August's level, meaning that manufacturing activity fell sharply. A smaller than expected decline or an increase in output would be negative for bonds and mortgage rates while a larger drop should help push mortgage rates lower, assuming that the CPI shows favorable results.
The remaining two reports are both scheduled for release Friday morning. September's Housing Starts is the first, but is the week's least important piece of data. It gives us an indication of housing sector st rength and mortgage credit demand, but usually is not a mover of mortgage rates. It is expected to show a decline in starts of new homes last month. If it varies greatly from forecasts, we could see the bond market have some reaction to the news, but probably not enough to cause much movement in rates.
The last report of the week is October's preliminary reading to the University of Michigan's Index of Consumer Sentiment late Friday morning. This index measures consumer willingness to spend and usually has a moderate impact on the financial markets. If it shows a sizable decline in consumer confidence, bond prices will probably rise. It is expected to show a reading of 69.0, down from September's final of 70.3.
Overall, I am expecting to see a fair amount of movement in mortgage rates this week, but mostly the latter part of the week. The key reports are Wednesday's PPI and Retail Sales reports and Thursday's CPI data. But as we saw last week, we certainly don't need factual economic releases to see mortgage rates move. I am thinking we may still see plenty of volatility in the stock markets that may affect bond prices also. Accordingly, please proceed cautiously if you have not locked an interest rates yet.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
700 Billion Dollar Bailout for who??
So Congress passes a seven hundred billion dollar bailout...but who is going to benefit from this "bailout"? It appears the bill is more designed to jumpstart a struggling world market and not individual homeowners. Foreclosures are rising, short sales are becoming more prominent, more homeowners are looking at ways to afford their payments and reduce their debt, and stocks continue to struggle. All in all, not good. What we are waiting for is a trickle down effect. We will probably see the government give money to banks to encourage lending between banks. This should increase confidence and make banks more willing to lend again. Hopefully, this extra capital will become available to people trying to make their payments, ease the burden, but only time will tell...
700 Billion Dollar Bailout for who??
So Congress passes a seven hundred billion dollar bailout...but who is going to benefit from this "bailout"? It appears the bill is more designed to jumpstart a struggling world market and not individual homeowners. Foreclosures are rising, short sales are becoming more prominent, more homeowners are looking at ways to afford their payments and reduce their debt, and stocks continue to struggle. All in all, not good. What we are waiting for is a trickle down effect. We will probably see the government give money to banks to encourage lending between banks. This should increase confidence and make banks more willing to lend again. Hopefully, this extra capital will become available to people trying to make their payments, ease the burden, but only time will tell...
Friday, September 26, 2008
Credit Scoring Part II
Part II: The Five Factors of Credit Scoring
There are five factors that comprise the credit score. They are listed below in order of importance, just as an underwriter would look at the score:
· Payment History: 35% impact. Paying debt on time and in full has a positive impact. Late payments, judgments and charge-offs have a negative impact. Missing a high payment has a more severe impact than missing a low payment. Delinquencies that have occurred in the last two years carry more weight than older items.
· Outstanding Credit Balances: 30% impact. This factor marks the ratio between the outstanding balance and available credit. Ideally, the consumer should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home.
· Credit History: 15% impact. This marks the length of time since a particular credit line was established. A seasoned borrower is stronger in this area.
· Type of Credit: 10% impact. A mix of auto loans, credit cards, and mortgages is more positive than a concentration of debt from credit cards only.
· Inquiries: 10% impact. This quantifies the number of inquiries that have been made on a consumer's credit history within a six-month period. Each hard inquiry can cost from 2 to 50 points on a credit score, but the maximum number of inquiries that will reduce the score is 10. In other words, 11 or more inquiries in a six-month period will have no further impact on the borrower's credit score.
Remember, a computer that's not taking any personal factors into consideration calculates these scores. When a credit report is generated, it is simply today's snapshot of the borrower's credit profile. This can fluctuate dramatically within the course of a week, depending on the individual's own activities. The borrower should be made aware of this when they enter into the loan process, and know that it's not in their best interest to go out on a shopping spree. They need to make sure they are not creating a negative impact on the score while the lender is reviewing their file.
Secondly, it is often beneficial to compile a tri-merge credit report. This provides scores from the three credit bureaus, Experian®, TransUnion®, and Equifax. The lender should be provided with this rounded profile because these three scoring systems can vary in their results. The lender is going to look at the middle score and throw out the other two. In many cases, this works to the borrower's advantage.
Stay tuned for Credit Scoring, Part III: Dealing with Challenges
written by Leonard Winslow, a Mortgage Loan Officer, of Gateway Bank Mortgage, INC. for The Avery Group Real Estate Blog
There are five factors that comprise the credit score. They are listed below in order of importance, just as an underwriter would look at the score:
· Payment History: 35% impact. Paying debt on time and in full has a positive impact. Late payments, judgments and charge-offs have a negative impact. Missing a high payment has a more severe impact than missing a low payment. Delinquencies that have occurred in the last two years carry more weight than older items.
· Outstanding Credit Balances: 30% impact. This factor marks the ratio between the outstanding balance and available credit. Ideally, the consumer should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home.
· Credit History: 15% impact. This marks the length of time since a particular credit line was established. A seasoned borrower is stronger in this area.
· Type of Credit: 10% impact. A mix of auto loans, credit cards, and mortgages is more positive than a concentration of debt from credit cards only.
· Inquiries: 10% impact. This quantifies the number of inquiries that have been made on a consumer's credit history within a six-month period. Each hard inquiry can cost from 2 to 50 points on a credit score, but the maximum number of inquiries that will reduce the score is 10. In other words, 11 or more inquiries in a six-month period will have no further impact on the borrower's credit score.
Remember, a computer that's not taking any personal factors into consideration calculates these scores. When a credit report is generated, it is simply today's snapshot of the borrower's credit profile. This can fluctuate dramatically within the course of a week, depending on the individual's own activities. The borrower should be made aware of this when they enter into the loan process, and know that it's not in their best interest to go out on a shopping spree. They need to make sure they are not creating a negative impact on the score while the lender is reviewing their file.
Secondly, it is often beneficial to compile a tri-merge credit report. This provides scores from the three credit bureaus, Experian®, TransUnion®, and Equifax. The lender should be provided with this rounded profile because these three scoring systems can vary in their results. The lender is going to look at the middle score and throw out the other two. In many cases, this works to the borrower's advantage.
Stay tuned for Credit Scoring, Part III: Dealing with Challenges
written by Leonard Winslow, a Mortgage Loan Officer, of Gateway Bank Mortgage, INC. for The Avery Group Real Estate Blog
Credit Scoring Part II
Part II: The Five Factors of Credit Scoring
There are five factors that comprise the credit score. They are listed below in order of importance, just as an underwriter would look at the score:
· Payment History: 35% impact. Paying debt on time and in full has a positive impact. Late payments, judgments and charge-offs have a negative impact. Missing a high payment has a more severe impact than missing a low payment. Delinquencies that have occurred in the last two years carry more weight than older items.
· Outstanding Credit Balances: 30% impact. This factor marks the ratio between the outstanding balance and available credit. Ideally, the consumer should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home.
· Credit History: 15% impact. This marks the length of time since a particular credit line was established. A seasoned borrower is stronger in this area.
· Type of Credit: 10% impact. A mix of auto loans, credit cards, and mortgages is more positive than a concentration of debt from credit cards only.
· Inquiries: 10% impact. This quantifies the number of inquiries that have been made on a consumer's credit history within a six-month period. Each hard inquiry can cost from 2 to 50 points on a credit score, but the maximum number of inquiries that will reduce the score is 10. In other words, 11 or more inquiries in a six-month period will have no further impact on the borrower's credit score.
Remember, a computer that's not taking any personal factors into consideration calculates these scores. When a credit report is generated, it is simply today's snapshot of the borrower's credit profile. This can fluctuate dramatically within the course of a week, depending on the individual's own activities. The borrower should be made aware of this when they enter into the loan process, and know that it's not in their best interest to go out on a shopping spree. They need to make sure they are not creating a negative impact on the score while the lender is reviewing their file.
Secondly, it is often beneficial to compile a tri-merge credit report. This provides scores from the three credit bureaus, Experian®, TransUnion®, and Equifax. The lender should be provided with this rounded profile because these three scoring systems can vary in their results. The lender is going to look at the middle score and throw out the other two. In many cases, this works to the borrower's advantage.
Stay tuned for Credit Scoring, Part III: Dealing with Challenges
written by Leonard Winslow, a Mortgage Loan Officer, of Gateway Bank Mortgage, INC. for The Avery Group Real Estate Blog
There are five factors that comprise the credit score. They are listed below in order of importance, just as an underwriter would look at the score:
· Payment History: 35% impact. Paying debt on time and in full has a positive impact. Late payments, judgments and charge-offs have a negative impact. Missing a high payment has a more severe impact than missing a low payment. Delinquencies that have occurred in the last two years carry more weight than older items.
· Outstanding Credit Balances: 30% impact. This factor marks the ratio between the outstanding balance and available credit. Ideally, the consumer should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home.
· Credit History: 15% impact. This marks the length of time since a particular credit line was established. A seasoned borrower is stronger in this area.
· Type of Credit: 10% impact. A mix of auto loans, credit cards, and mortgages is more positive than a concentration of debt from credit cards only.
· Inquiries: 10% impact. This quantifies the number of inquiries that have been made on a consumer's credit history within a six-month period. Each hard inquiry can cost from 2 to 50 points on a credit score, but the maximum number of inquiries that will reduce the score is 10. In other words, 11 or more inquiries in a six-month period will have no further impact on the borrower's credit score.
Remember, a computer that's not taking any personal factors into consideration calculates these scores. When a credit report is generated, it is simply today's snapshot of the borrower's credit profile. This can fluctuate dramatically within the course of a week, depending on the individual's own activities. The borrower should be made aware of this when they enter into the loan process, and know that it's not in their best interest to go out on a shopping spree. They need to make sure they are not creating a negative impact on the score while the lender is reviewing their file.
Secondly, it is often beneficial to compile a tri-merge credit report. This provides scores from the three credit bureaus, Experian®, TransUnion®, and Equifax. The lender should be provided with this rounded profile because these three scoring systems can vary in their results. The lender is going to look at the middle score and throw out the other two. In many cases, this works to the borrower's advantage.
Stay tuned for Credit Scoring, Part III: Dealing with Challenges
written by Leonard Winslow, a Mortgage Loan Officer, of Gateway Bank Mortgage, INC. for The Avery Group Real Estate Blog
Thursday, September 18, 2008
First Ever Video Walkthrough Tour by The Avery Group
The first video walkthrough tour by The Avery Group. This is a home we have listed in Gordonsville, VA. 19408 Lovers Lane.
I have some work to do to get this all perfected, but it is coming along and before you know it, video walkthrough tours will be a permanent part of Avery Group listings!
I have some work to do to get this all perfected, but it is coming along and before you know it, video walkthrough tours will be a permanent part of Avery Group listings!
First Ever Video Walkthrough Tour by The Avery Group
The first video walkthrough tour by The Avery Group. This is a home we have listed in Gordonsville, VA. 19408 Lovers Lane.
I have some work to do to get this all perfected, but it is coming along and before you know it, video walkthrough tours will be a permanent part of Avery Group listings!
I have some work to do to get this all perfected, but it is coming along and before you know it, video walkthrough tours will be a permanent part of Avery Group listings!
Monday, September 15, 2008
Avery Group to Start Video Tours of Homes!
With the addition of a Sony Full HD 1920x1080i Handycam to the Avery Group, we will start doing video walkthroughs of homes. This should be a serious step up from the old fashioned Virtual Tours. Especially since Virtual Tours are, more often than not, glorified slideshows. This should give more information and more detail of a home than still pictures stitched together. This will be a huge step forward for the technology that is already incorporated in the Real Estate Practices of the Avery Group. The first tour should be ready by the end of this week and we will be walking through 19408 Lovers Lane. I will keep you posted...
Avery Group to Start Video Tours of Homes!
With the addition of a Sony Full HD 1920x1080i Handycam to the Avery Group, we will start doing video walkthroughs of homes. This should be a serious step up from the old fashioned Virtual Tours. Especially since Virtual Tours are, more often than not, glorified slideshows. This should give more information and more detail of a home than still pictures stitched together. This will be a huge step forward for the technology that is already incorporated in the Real Estate Practices of the Avery Group. The first tour should be ready by the end of this week and we will be walking through 19408 Lovers Lane. I will keep you posted...
Tuesday, September 9, 2008
A Lender's Views on the Short Sale, Foreclosure
I was speaking with a mortgage loan officer today about the short sale, foreclosure, and mortgage "crisis" and his point of view was so interesting, I got him to put it in writing so I could share it. Here it goes:
FANNIE MAE AND FREDIE MAC TAKE OVER:
"The government is spending our dollars again"
"The mortgage companies have caused this debacle"
"The loan officer is a cheat and thief"
"My Realtor made me do it"
"It wasn’t explained to me"
"ITS NOT MY FAULT"-----------BALONEY
Lets put the blame where it truly belongs. It was and is the general public who is at fault. More specifically all those poor little folks who are having their homes taken from them because they can’t make their payments because they bought more than they should have, never paid their bills on time and want to have everything handed to them on a silver platter. SORRY you have been screwed blued and tattooed. In other words you deserve what you got or are getting. Grow up. Learn to pay your bills on time; learn to be honest about how much income you make, disclose the proper income on your tax returns... In my 20 years I have never seen more people think they deserve to have a home and therefore it should be handed to them. How any times have you wondered how your friend who has all the expensive toys yet works with so you know what they make, yet they can buy the 500,000 home. Guess what they don’t have that home now do they. And guess again who is paying for it one way or the other. That’s right, YOU ARE. Whose fault is it? Not mine. It comes down to Greed. Greed of the homeowner for wanting the mansion, GREED of the Realtor for wanting the commission, GREED of the loan officer for making the sub prime loan for the commission, Greed of the investors you wanted more income and GREED of the bond traders that gave the loan officers the guidelines.
I may sound harsh and unfeeling, it some ways I am, but in others I want to show the compassion to the hard working folks that have worked for what they have and take pride in that. Those hardworking folks that are having there homes taken because of the dishonesty of others should be helped, those people that are having there homes taken due to a loss of job or medical reasons should be helped, but the greedy home owners, they have gotten what they deserve.
Leonard Winslow, Mortgage Loan Officer
Gateway Bank Mortgage, INC.
Wow, those are some powerful words. Let us know what you think by posting comments!
Charlottesville Real Estate
Avery Group
Forest Lakes Real Estate
Charlottesville Real Estate Blog
FANNIE MAE AND FREDIE MAC TAKE OVER:
"The government is spending our dollars again"
"The mortgage companies have caused this debacle"
"The loan officer is a cheat and thief"
"My Realtor made me do it"
"It wasn’t explained to me"
"ITS NOT MY FAULT"-----------BALONEY
Lets put the blame where it truly belongs. It was and is the general public who is at fault. More specifically all those poor little folks who are having their homes taken from them because they can’t make their payments because they bought more than they should have, never paid their bills on time and want to have everything handed to them on a silver platter. SORRY you have been screwed blued and tattooed. In other words you deserve what you got or are getting. Grow up. Learn to pay your bills on time; learn to be honest about how much income you make, disclose the proper income on your tax returns... In my 20 years I have never seen more people think they deserve to have a home and therefore it should be handed to them. How any times have you wondered how your friend who has all the expensive toys yet works with so you know what they make, yet they can buy the 500,000 home. Guess what they don’t have that home now do they. And guess again who is paying for it one way or the other. That’s right, YOU ARE. Whose fault is it? Not mine. It comes down to Greed. Greed of the homeowner for wanting the mansion, GREED of the Realtor for wanting the commission, GREED of the loan officer for making the sub prime loan for the commission, Greed of the investors you wanted more income and GREED of the bond traders that gave the loan officers the guidelines.
I may sound harsh and unfeeling, it some ways I am, but in others I want to show the compassion to the hard working folks that have worked for what they have and take pride in that. Those hardworking folks that are having there homes taken because of the dishonesty of others should be helped, those people that are having there homes taken due to a loss of job or medical reasons should be helped, but the greedy home owners, they have gotten what they deserve.
Leonard Winslow, Mortgage Loan Officer
Gateway Bank Mortgage, INC.
Wow, those are some powerful words. Let us know what you think by posting comments!
Charlottesville Real Estate
Avery Group
Forest Lakes Real Estate
Charlottesville Real Estate Blog
A Lender's Views on the Short Sale, Foreclosure
I was speaking with a mortgage loan officer today about the short sale, foreclosure, and mortgage "crisis" and his point of view was so interesting, I got him to put it in writing so I could share it. Here it goes:
FANNIE MAE AND FREDIE MAC TAKE OVER:
"The government is spending our dollars again"
"The mortgage companies have caused this debacle"
"The loan officer is a cheat and thief"
"My Realtor made me do it"
"It wasn’t explained to me"
"ITS NOT MY FAULT"-----------BALONEY
Lets put the blame where it truly belongs. It was and is the general public who is at fault. More specifically all those poor little folks who are having their homes taken from them because they can’t make their payments because they bought more than they should have, never paid their bills on time and want to have everything handed to them on a silver platter. SORRY you have been screwed blued and tattooed. In other words you deserve what you got or are getting. Grow up. Learn to pay your bills on time; learn to be honest about how much income you make, disclose the proper income on your tax returns... In my 20 years I have never seen more people think they deserve to have a home and therefore it should be handed to them. How any times have you wondered how your friend who has all the expensive toys yet works with so you know what they make, yet they can buy the 500,000 home. Guess what they don’t have that home now do they. And guess again who is paying for it one way or the other. That’s right, YOU ARE. Whose fault is it? Not mine. It comes down to Greed. Greed of the homeowner for wanting the mansion, GREED of the Realtor for wanting the commission, GREED of the loan officer for making the sub prime loan for the commission, Greed of the investors you wanted more income and GREED of the bond traders that gave the loan officers the guidelines.
I may sound harsh and unfeeling, it some ways I am, but in others I want to show the compassion to the hard working folks that have worked for what they have and take pride in that. Those hardworking folks that are having there homes taken because of the dishonesty of others should be helped, those people that are having there homes taken due to a loss of job or medical reasons should be helped, but the greedy home owners, they have gotten what they deserve.
Leonard Winslow, Mortgage Loan Officer
Gateway Bank Mortgage, INC.
Wow, those are some powerful words. Let us know what you think by posting comments!
Charlottesville Real Estate
Avery Group
Forest Lakes Real Estate
Charlottesville Real Estate Blog
FANNIE MAE AND FREDIE MAC TAKE OVER:
"The government is spending our dollars again"
"The mortgage companies have caused this debacle"
"The loan officer is a cheat and thief"
"My Realtor made me do it"
"It wasn’t explained to me"
"ITS NOT MY FAULT"-----------BALONEY
Lets put the blame where it truly belongs. It was and is the general public who is at fault. More specifically all those poor little folks who are having their homes taken from them because they can’t make their payments because they bought more than they should have, never paid their bills on time and want to have everything handed to them on a silver platter. SORRY you have been screwed blued and tattooed. In other words you deserve what you got or are getting. Grow up. Learn to pay your bills on time; learn to be honest about how much income you make, disclose the proper income on your tax returns... In my 20 years I have never seen more people think they deserve to have a home and therefore it should be handed to them. How any times have you wondered how your friend who has all the expensive toys yet works with so you know what they make, yet they can buy the 500,000 home. Guess what they don’t have that home now do they. And guess again who is paying for it one way or the other. That’s right, YOU ARE. Whose fault is it? Not mine. It comes down to Greed. Greed of the homeowner for wanting the mansion, GREED of the Realtor for wanting the commission, GREED of the loan officer for making the sub prime loan for the commission, Greed of the investors you wanted more income and GREED of the bond traders that gave the loan officers the guidelines.
I may sound harsh and unfeeling, it some ways I am, but in others I want to show the compassion to the hard working folks that have worked for what they have and take pride in that. Those hardworking folks that are having there homes taken because of the dishonesty of others should be helped, those people that are having there homes taken due to a loss of job or medical reasons should be helped, but the greedy home owners, they have gotten what they deserve.
Leonard Winslow, Mortgage Loan Officer
Gateway Bank Mortgage, INC.
Wow, those are some powerful words. Let us know what you think by posting comments!
Charlottesville Real Estate
Avery Group
Forest Lakes Real Estate
Charlottesville Real Estate Blog
Tuesday, August 26, 2008
Short Sale in Charlottesville
Not too long ago, we took a listing for a woman, for confidentiality we will call her "A". She had a home in the city of Charlottesville and was falling behind on her payments. We took her listing and proceeded with a short sale. Come to find out, her loan was for $90,000 more than the market value of the home. There is no way this house every got an appraisal for that much over what the home was worth, especially since it didn't have a HEAT SOURCE!!! By the way, homes without a heat source should never approve for a mortgage, especially a mortgage with a value greater than the market value. Anyway, we were able to sell her house, prevent foreclosure, save her credit AND get a great deal to an investor.
What's the point you ask? Well, there are a couple. One - there are options out there for people looking to prevent foreclosure. Two - in my opinion, any time you help people you are doing a service for the community. In this case, we helped one lady save her ability to follow the American Dream and borrow money when needed. We also got an investor, whose plans for the house will be great for the neighborhood as a whole, the right price to move in.
What's the point you ask? Well, there are a couple. One - there are options out there for people looking to prevent foreclosure. Two - in my opinion, any time you help people you are doing a service for the community. In this case, we helped one lady save her ability to follow the American Dream and borrow money when needed. We also got an investor, whose plans for the house will be great for the neighborhood as a whole, the right price to move in.
Short Sale in Charlottesville
Not too long ago, we took a listing for a woman, for confidentiality we will call her "A". She had a home in the city of Charlottesville and was falling behind on her payments. We took her listing and proceeded with a short sale. Come to find out, her loan was for $90,000 more than the market value of the home. There is no way this house every got an appraisal for that much over what the home was worth, especially since it didn't have a HEAT SOURCE!!! By the way, homes without a heat source should never approve for a mortgage, especially a mortgage with a value greater than the market value. Anyway, we were able to sell her house, prevent foreclosure, save her credit AND get a great deal to an investor.
What's the point you ask? Well, there are a couple. One - there are options out there for people looking to prevent foreclosure. Two - in my opinion, any time you help people you are doing a service for the community. In this case, we helped one lady save her ability to follow the American Dream and borrow money when needed. We also got an investor, whose plans for the house will be great for the neighborhood as a whole, the right price to move in.
What's the point you ask? Well, there are a couple. One - there are options out there for people looking to prevent foreclosure. Two - in my opinion, any time you help people you are doing a service for the community. In this case, we helped one lady save her ability to follow the American Dream and borrow money when needed. We also got an investor, whose plans for the house will be great for the neighborhood as a whole, the right price to move in.
Short Sales Becoming Common in Charlottesville
Myself and my group (the Avery Group) have been working short sales for a while now. We have successfully closed 5 short sales this year, have two more under contract, and have three more being listed. Most of them have been in Albemarle County. Despite what people think, or because they can only find 8 or 9 of them in the MLS, foreclosures and short sales are becoming more and more prevalent in our area. Even the Daily Progress has had a couple of articles about them in the newspaper. A short sale is a method of preventing foreclosure. With the exception of loan modification, it is usually the best option. 95% of the time you see a short sale, there is a foreclosure looming. Don't be fooled by terminology. Also, look for key terms in the MLS. For example, "subject to bank approval" is usually a good one to look for if you are looking for a possible foreclosure or short sale.
Short Sales Becoming Common in Charlottesville
Myself and my group (the Avery Group) have been working short sales for a while now. We have successfully closed 5 short sales this year, have two more under contract, and have three more being listed. Most of them have been in Albemarle County. Despite what people think, or because they can only find 8 or 9 of them in the MLS, foreclosures and short sales are becoming more and more prevalent in our area. Even the Daily Progress has had a couple of articles about them in the newspaper. A short sale is a method of preventing foreclosure. With the exception of loan modification, it is usually the best option. 95% of the time you see a short sale, there is a foreclosure looming. Don't be fooled by terminology. Also, look for key terms in the MLS. For example, "subject to bank approval" is usually a good one to look for if you are looking for a possible foreclosure or short sale.
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