DallasLoanGuy's - Texas Home Loan Weblog

Baseball Time in Plano, TX - Plano Baseball Association

Tom — Sun, 15 Jun 2008 04:17:55 +0000

I am an assistant coach on my son’s 7yr old Coach Pitch Baseball team. I have been very pleased with the organization we are playing with this year. The Plano Baseball Association is certainly a community of people who believe in the phrase “It’s All About The Kids”.
I have been extremely pleased interacting with the staff at Plano Baseball as well as the opposing team coaches. Everyone seems to subscribe to the “Have Fun First” mentality.

http://www.planobaseball.org/

In recent action…. The Sidewinders’ Ethan Burris goes for a tag of the opposing team’s runner.

PBA’s Mission Statement - Tuesday, January 17, 2006

PBA, a non-profit organization, hosts both recreational and competitive baseball for youth in Plano and the surrounding communities. Children, ages 3 -18 years play in league and tournament play in the spring and fall seasons. PBA aspires to offer every child wanting to learn baseball the opportunity to develop the mental and physical skills needed to play through baseball camps, clinics and regular team practices. Physical activity, teamwork, discipline, and sportsmanship are all emphasized for healthy life skills. PBA is not only dedicated to our players, but also to the development of each of the umpires, volunteer coaches and assistants through training classes, coaching clinics and support from our office staff, league commissioners, and the Board of Directors. By utilizing Major League Baseball, USSSA and local PBA rules our coaches teach respect and integrity for the game of baseball.

If you live in Plano, TX and have kids…. This is an organization to check out for your child’s development!

Tom Burris
DallasLoanGuy.com
Dallas, TX

“Your Dallas Mortgage Consultant”

http://www.dallasloanguy.com/

Texas Home Loans

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!! Subscribe to My Blog and stay informed about current lending changes!!

While I personally focus on Texas Home Loans and First Time Home Buyers…. I do lend in other areas. We are in about 46 States and adding programs to bring full service to an area near you.

When Final HUD Approval isn’t so Final.

Tom — Mon, 19 May 2008 16:29:34 +0000

Today I had the pleasure of sitting in on a courtesy closing at a local title company. The courtesy closer was great!!

We were closing for:
Fidelity National Title
4540 FM 1960 West
Houston, TX 77069

Upon my arrival at the closing I discovered that the Final HUD-1 approved by me, my processor and my closing department had been altered. A $120 fee for the seller had been inserted at the last minute. The final HUD had been shared with the client before closing and she had a cashier’s check in hand. A happy day for my single mother and First Time Home buyer turned sour. Right in the middle of the heated discussions the client came in to sign. Thinking that we had the issue handled we allowed her to sign everything but the HUD.

After several phone calls and emails back and forth by my processor back at the office and fudelity… you will not believe this….. The title company representative asked me for my phone number. What in the world would she need my phone number for you ask? Well, so she could…. and I quote: “Call me if there are any more last minute changes”. <= You would have thought that I had pulled out a pistol.... the look on the faces of the closer, buyer's agent and buyer told me that I must have turned purple with rage as I tried to control my anger and maintain my composure.

In the end.... the seller being Fannie Mae.... we were told that the loan would not fund without this fee. So the client had to bend over and take it in the shorts. <= I guess the closing gift just got a little more expensive for me. Which I am fine with that.... I am just not fine with how my client was treated.

Let me tell you, I have seen some real turds in this business... but Fidelity National Title in Houston, TX is absolutely the worst experience ever!!!!!!!

Now if you think that is bad enough.... this is the very same title company who told us for 3 WEEKS that the "survey was on the way"..... do you know how much money it costs to extend the lock on a loan for that long?

As you can guess.... we are ALL going to file complaints with everybody we can think of in this business. But I have a feeling that they will be punished plenty when I hit 'publish' on this keyboard. Because that $120 fee will cost them more in revenue down the road if I have anything to do with it......!!!

What would you do?

What should I have done?

How would you deal with a scam like this? Who would you report a scammer like this to anyway?

Tom Burris
DallasLoanGuy.com
Dallas, TX

“Your Dallas Mortgage Consultant”

http://www.dallasloanguy.com/

Texas Home Loans

Fannie Mae says no to credit scores below 580

Tom — Wed, 02 Apr 2008 21:08:53 +0000

Fannie Mae is setting new rules about what mortgages it will buy, including a credit score threshold for the first time. The District-based mortgage giant has told lenders it will no longer buy most loans made to borrowers with credit scores below 580, nor will it buy loans that have been more than 60 days past due within the last year.

http://dallas.bizjournals.com/washington/stories/2008/03/31/daily33.html

More and more FICO requirements. Pay your bills on time and keep those credit card balances low, low, low.
Clients will need to be wary of their credit scores and those who do not use a lot of credit will be forced to keep some open credit going on at all times to maintain scores.

Stay tuned as the Mortgage World Turns!!!

http://www.dallasloanguy.com/docs/about_credit.pdf <= A little book about credit that I put together. Some of my writing and some data from other places like the Fair Credit Reporting Act.

Tom Burris
DallasLoanGuy.com
Dallas, TX
“A Home Loan for Every Texan”
http://www.dallasloanguy.com/
Texas Home Loans Texas FHA Mortgage

FHA Non Occupying Co-Borrower

Tom — Tue, 01 Apr 2008 20:52:30 +0000

FHA Non Occupying Co-Borrower rules in a nutshell.

Typically called a ‘Kiddie-Condo’ loan. FHA allows family members to help their kids buy their first home. Whether they are in school with no income or out in the real world and just need a little extra income to qualify.

FHA allows for a family member to be a non-occupying co-borrower in order to assist in qualifying. This is available when your borrower would qualify for the loan when considering their credit but they wouldn’t qualify because of debt ratios, employment, income and assets.

Adding a NOCB does not resolve credit issues!! The occupying co-borrower must be credit worthy or have no credit at all. Bad credit will kill the deal. No credit - no problem.

The occupying co-borrower does not have to be employed and does not have to invest in the transaction.

The DallasLoanGuy Originates, Processes, Underwrites, Closes & Funds FHA Loans in-house. We offer manual underwrites down to 580 FICO.

Tom Burris
DallasLoanGuy.com
Dallas, TX

“A Home Loan for Every Texan”

http://www.dallasloanguy.com/

Texas Home Loans

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!

The Death of 100% Financing? ….. Is the End Near?!?!?!?

Tom — Tue, 12 Feb 2008 17:50:37 +0000

I got notice late yesterday that beginning March 1st, loans above 97.01% will no longer be eligible for PMI.

3% down payment may be the name of the game going forward…. and FHA Loans have never looked so sexy!!

Monthly PMI on Gov’t loans is 1/2 of what you are charged on conventional loans. Yet, many consumers have opted for 100% financing because they do not have money for the down payment. Not to be confused with the client who ‘elected’ 100% Financing, these people who are paying twice as much for PMI are doing so for a reason. They simply cannot put any of their own money down on a real estate transaction. And that lack of cash reserves equates to more people walking away from their mortgage obligations when times get tough.

See the full text letter from PMI Mortgage Insurance Company.
http://www.pmi-us.com/guidelinechanges/media/pmi_miguidelinechangesltr.pdf

Is this the end? The good old days are over? Well, that remains to be seen….. but it looks like the PMI companies are tired of paying off when homeowners simply walk away from their obligations.

Other changes include reduced Loan-to-Value (LTV) for reduced documentation loans and loans for homes in Declining Markets.

Stay tuned for future developments!!!

Tom Burris
DallasLoanGuy.com
Dallas, TX

“A Home Loan for Every Texan”

http://www.dallasloanguy.com/

Texas Home Loans

Money Merge Accounts aka Mortgage Accelerator programs…… beware!!!

Tom — Fri, 14 Dec 2007 22:00:42 +0000

Today’s Guest Blogger is Jeff Belonger.

Jeff is the FHA expert out of New Jersey. You can read some more of his articles here => Mortgage Knowledge at its BEST!!!!

Disclosure : This might be slightly longer than usual. But in order to get this posts full potential, you need to read it all.

In a down market, you will see more lenders come out with gimmicks telling you that they can pay your house down in half the time. They will use such terms as wealth builder, mortgage accelerator, debt elimination, and money merge account programs. People advertising these types of programs tell you, “don’t let lenders steal your money”. That you will be saving thousands of dollars in interest. But is there a catch? Let’s investigate this some more.

The number one component that drives the money merge account is discretionary income. This is not the only component, but the most important. As long as the client has enough discretionary income, they can then make this program work for them. Discretionary income can be also known as disposable income.

There are two types of these so-called money merge accounts out on today’s market.

The Australian Mortgage in which Kate Bourland wrote about. This program is sold by CMG mortgage services and is a first lien HELOC. I still don’t know what the costs are associated to this, but I would assume it will still come with some of the traditional closing costs because mortgage brokers will be selling this and that would be their only form of income from this program.
The money merge account by United First Financial. I had the pleasure of sitting with 2 representatives from this company. This program is a HELOC in the 2nd lien position. What’s nice about this program is that it will not affect your current mortgage. Especially if you have a lower rate. But this program would cost you $3,500 in order to obtain the software.

The major positive is that this works very well if you have a lot of outstanding debt when it comes to high interest credit cards. Sure, if could work with other things such as car loans and student loans. The bottom line is reducing your debt load and your monthly payments. What I truly dislike about this program is that so many lenders are advertising it as a program that reduces your compound interest. And such advertisements as this : “The average MMA customer will pay their 30-year mortgage off 100% within 8 to 11 years—with little change to their day-to-day spending habits and without increasing their monthly mortgage payments.” Sorry, but this statement is extremely misleading and I will explain why.

How these programs work : First off, why are these statements misleading? UFirst uses an example of discretionary income of $1,000 per month. Sure, that sounds like a lot and it will work with any number above zero. But what they are saying is if you keep $1,000 a month extra in your account, that it will pay your mortgage of $200,000 with a 6% rate off in 10.4 years. Wow, that sounds awesome. You can save $161,236 in interest. But didn’t they say, “without increasing your monthly payments?” The average American doesn’t have more than $1,200 in the checking or savings account.

So, let me play devils advocate, the true money geek that I am. We all know that a 30 yr mortgage takes about 17 to 19 years before you start paying 50% interest and 50% principle. That is such a long time. But you can do the same thing yourself that these programs offer with no added costs. NOTHING… ZERO. The only problem is that it would take discipline. But wait, you would need discipline with the programs mentioned above. Because you are using discretionary income and if you used part of that $1,000 that was left over, it won’t work as quickly as promised. If you used that full amount up before the end of the month, you did nothing to your interest savings. You are then back to zero, with a HELOC loan that is an adjustable at worst.

On another note, if you took that $1,000 yourself and applied it monthly to your principal, your mortgage would be paid off in 10.1 years. Wow, that’s 3 months sooner and it didn’t cost you a thing. But wait, it cost you $3,500 when you did the UFirst program. If you divided this fee by 240 months which is 20 years, that is an extra savings of $14.58 a month that you could apply towards your mortgage. And after doing this, now your mortgage is paid off 1 month sooner now, 10 years even. So if you held onto your mortgage for this length of time and if you used the program mentioned by UFirst, you would still have 4 months to go. That is an additional $8,852 dollars that you would be spending.

Overall, you would be better off taking the extra payments and dumping them into a stock portfolio which would give you a better rate of return. Robert Ashby put together a few great posts in comparing these types of programs with what I just mentioned, which is called Equity Harvesting. Money Merge Accounts Vs Equity Harvesting: Harvesting Wins by Over $1.5M A must read!!!

Conclusion : Money Merge Accounts can be a great tool, don’t get me wrong. But in my honest opinion, they will only work for the few out there. And in most cases, it’s just great advertising to get you in the door. If you don’t qualify for this loan, they might try to get you into another type of loan. As in the case of the UFirst money merge account, keep in mind, it’s a HELOC loan. That means that you need to be qualified for this type of loan. And with the mortgage meltdown, these are very hard to be approved for. Secondly, as mentioned above, it would work a lot better if you had other debt than just your mortgage.

Overall, everything that is mentioned here is solely based on my opinion and 15 years of service in the mortgage industry. But a FYI, I also did a lot of research on this, explored different scenarios, and examined different numbers when playing with this program. Hey, I am a money geek, what can I say. I basically want to give sincere and genuine advice and not what makes me money.

Lastly, can anyone else say pay option arms? Again, a good program that was not explained correctly, but could work for you if used properly. Here is a thought to sleep on for now. Aren’t many of the foreclosures attached to the pay option arm and that these consumers are now up-side down on their mortgage. Meaning that they owe more than it’s worth, especially if you make the least amount of payments, which would be less than the interest only payments. Just words to the wise, speak to a mortgage professional that will give you many options and not just what you want or what they try to get you to buy into.

My inspiration for writing this post was because of the post by Matthew Blum : Are You Really That Desperate?

______________________________________________________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert You can also go to this group : The FHA Mortgage Group

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

I had MISSLE LOCK on Downtown Dallas!!!!!!!

Tom — Wed, 05 Dec 2007 04:01:08 +0000

Heh heh…. Relax Dallas…. it was only a simulated Target Lock!!!

A very good friend of mine called and said he was flying into Dallas Love Field. He wanted me to swing by for a cup of coffee. I am thinking to myself that he doesn’t realize how big Dallas really is and that it is a little more than out of the way for me. But I haven’t seen him in a while and decided to take him up on his offer.

Then I got the details…. I would not be meeting him in a coffee shop at the main terminal. NO!!! I would be meeting him at a private hanger for a personal tour of his aircraft. I nearly had to change pants…..!! A personal tour by a guy who actually operated an aircraft exactly like this one in the Gulf War. A War Hero he is…. (name withheld for security)

Funniest thing was how the folks at the hanger reacted…. “Yes sir, anything you need sir”. They were about as lost as he was, never have flown into Dallas before. LOL I have a couple of pics here. This is a real War Bird!!!

What a rush…. Got to play with all of the controls. Locked onto a target the size of a desk on top of building in downtown Dallas….. From Love Field…. That’s about 8 miles!!!

Next up…. I am going to Fort Hood in Killeen, TX to fly one in a simulator. They CANNOT take civilians up in this magnificent Bird. It takes a LOT to get a 3-star General up on a ‘ride’. So I will take the next best thing in the simulator.

No, the helicopter did not have a case of Priapism, that is a 30MM Cannon hanging off the front of this bird!!! “Man Grunt”

I really had to share my experience. I am a big supporter of the troops. And pray that they ALL come home safely as my friend has, thankfully. Please join me in saying a prayer for those that risk it all for our freedoms!!!

Tom Burris

DallasLoanGuy.com

Dallas, TX

“A Home Loan for Every Texan”

http://www.dallasloanguy.com/

Texas Home Loans

Hide The Toilet, The Buyers Are Coming, Home Staging - Beyond The Obvious

Tom — Fri, 09 Nov 2007 18:19:09 +0000

Guest Article: By Karen Otto, Home Star Staging Plano, TX

Staging is fast becoming a necessary marketing tool for selling a home. Staging is a technique that showcases a home for a smoother, faster and more profitable sale. There are many aspects to staging a home. I’d like to wax on here about one area in particular that is often overlooked and unattended to but very obvious to potential buyers.The day to day living we do is a necessary part of our lives. We cook, clean, do laundry and yes, even use the bathroom. These daily activities often are overlooked in the selling process because they are so routine, almost expected. It is important when showing your home to present all areas in the best possible condition, yes even including your toilet.

Let’s liken this a hotel stay. Upon arrival we don’t often think about other people having to bathe, launder, throw garbage away or heaven forbid - use the bathroom! Even though we are fully aware that potentially hundreds of people have been there before us, we would not want to arrive at our luxury suite and find any unmentionables there - we expect it to be clean, fresh and neat. The appearance of the room matters. Crisp hospital corners on the sheets and toilet paper edges folded into triangles make us happy.

It is no different while selling your house. In fact it is even more important. These are “guests” who are intent on buying a home - not looking for an extended holiday stay. No one wants to imagine YOU doing anything in your lavatory facilities and let’s try and banish all thoughts of what really goes on in there shall we?

It’s silly when you come right down to it because we all do it. However, it may surprise you how many people are actually turned off by the sight of someone elses’ garbage, dirty laundry or toiletries sitting out. An open toilet bowl - especially if not clean - is a huge turnoff and any parents of young children reading - can you catch my drift here? - get the OUST quick!

Here is a quick list to use as gentle reminders of the importance of doing these and other things you may not have thought of while in the process of selling your home.

BATHROOMS

Remove all toiletries and electronics off the counters, especially medications. Place medicine in zippered plastic bags away from cabinets. Prescription medication is often a stolen item from homes for sale. This same rule can apply to firearms, knives or other weapons in a home. Always keep lids down on toilets. Keep toilets clean and fresh. Towels, mats and other bath products should be out of sight while showing and dry off glass doors once you’ve finished your morning shower.

LAUNDRY

Remove all laundry and cleaning supplies from sight - keep neatly inside cabinet, storage unit or the garage. Place dirty laundry inside a nice looking storage unit - wicker baskets are attractive or cloth duffel bag, but keep dirty piles out of site of potential buyers - even inside washer or dryer if you’re in a hurry.

KITCHEN

Remove and empty garbage cans daily. Keep out of sight and smell. Throw away garbage that will smell worse as the day progresses, many items will do this from tuna fish, pet food, beef, poultry, pork drippings and containers from last night’s dinner. This includes things in your refrigerator that may have started to stink. People look everywhere! Try to keep strong smelling cooking odors at a minimum - if you MUST fry fish or cook an exotic dish try doing it outside on a gas grill if there is a side burner. Air out the house well if you must do it inside.

PETS

This is hard to do but ideally, remove pets from premises while showing, crate or keep in one place and out of buyer’s way. Many people have allergies to and/or fear of animals, even if they are the most gentle in nature. If you have inside pets, remove their bowls daily (especially if in kitchen) until returning for the evening - or place somewhere out of sight where pet has access. Clean kitty litter box, hamster cages, bird droppings or as painful as it seems in the short term relocate the dear ones to a friend’s house who’s willing to temporarily house them or find a good doggy day care.

Enact “Poop Patrol” daily on the perimeter of the exterior of your house. You wouldn’t want your freshly cleaned or new carpets to be stained or smelly in case an unsuspecting buyer steps in one of your puppy’s piles. (This has happened more often than you may think) No more beating around the bush. Before you leave the house for a showing remember to hide the toilet, the buyers are coming!

Karen Otto, ASP, IAHSP is the owner of Home Star Staging, a full service Real Estate Staging and Consulting firm located in Plano, Texas. With her degree in Marketing from Florida International University and extensive staging knowledge and experience, Karen knows what it takes to get your house seen and sold. While Karen doesn’t sell houses, she knows what helps houses sell. Karen is passionate about educating the Real Estate Community and the Public on the benefits of staging. Please contact her for your home staging questions and needs. Karen is available to the Real Estate Community and Media for articles, information and seminars on the home staging industry. Please contact her at Karen@homestarstaging.com

Bank of America Corp. is exiting the Wholesale Mortgage Business!!

Tom — Thu, 25 Oct 2007 23:14:15 +0000

Announced around 2:00 Central Time today….

Bank of America is closing down their whole lending department…..Cutting 3000 jobs…. Plans to focus more on their retail division.

As I was communicating with one of their wholesale reps last night and this morning, I can assure you that they didn’t see this coming!!! My rep had a big meeting this morning and was to get with me this afternoon. I got the news before she could….

BofA’s Whosale Lending dept was pretty poor anyway. It took 3 times longer to get files thru their system than it did with other banks at times. Although, they did have some pretty cool products and pricing. Their retail division is a smoother operation from what I hear.

Look for a new set of feet on the street as these jobs cannot all be absorbed in other divisions.

What does this mean for Realtors? It means that your mortgage broker/banker just lost a few good tools(even though most of their rates and programs overlap with many banks). BofA still offers many loans through their Retail Branches.

Tom Burris
DallasLoanGuy.com
Dallas, TX

“A Home Loan For Every Texan”

http://www.dallasloanguy.com/

Texas Home Loans

HUD Ends Most Down Payment Assistance Programs!!

Tom — Mon, 01 Oct 2007 16:52:41 +0000

Down Payment Assistance Programs. You know, where the seller makes a donation to a ‘charity’…. and that charity turns around and ‘gifts’ those monies to the buyer to satisfy the 3% Down Payment requirement on FHA loans. Well, effective October 31st, 2007 (see exception below)these programs will be GONE!!

Monday October 1, 2007 HUD has ruled on what I considered the most ridiculous loophole affecting their programs.

The final rule establishes that a prohibited source of Down Payment Assistance(DPA) is a payment that consists, in whole or in part, of funds provided by any of the following parties before, during, or after closing of the property sale:

1. The seller
2. Any other person or entity that financially benefits from the transaction
3. Any third party or entity that is reimbursed directly or indirectly by the seller

The above exclusions seem to describe exactly what is happening when these Faux Charities are allowed to circumvent the underwriting rules using the charity loophole.

While I have been mostly neutral about the DPA, I have learned to understand its impact:
FHA, for example, allows for 6% of the contracted sales price to be rebated back to the buyer in the form of closing cost assistance. This is usually facilitated by offering more for the home in price negotiations and accepting your discount in the seller rebate. The DPA programs effectively made that 6% turn into 9% overnight. Uh, can you say ‘Over Inflated Prices’?!?!

President Bush is pushing for 100% financing on the FHA loan. So, maybe this setback for borrowers will be short lived. At least we will have a little more truth in real estate prices in the future if this is passed by legislation.

Don’t have the 3% Down Payment required? You can still get a gift from a family member or charity(a real charity) or even a State, County or Local Down Payment Assistance Program from the government.

You can read the Department of Housing and Urban Devbelopment’s full ruling here=> HUD Ends Most Down Payment Assistance Programs

Exception: As of today, it seems that Nehemia DPA will at least be used until March 31st, 2008 as a result of a previous settlement to a 1999 lawsuit between HUD & Nehemia

Tom Burris
DallasLoanGuy.com
Dallas, TX

“A Home Loan For Every Texan”

http://www.dallasloanguy.com/

Texas Home Loans