Real Estate Financing...

This song ran through my skull.

Have you noticed the barren landscape around you?  Tumbleweeds roll across the office floor like another mortgage application that will never see the light of closure.  In April of 2006, our small firm here in Allentown had 19 folks working for the cause: that of making our lives better by helping make other lives easier.  Turn the clock to the common day, we are down to seven.  But damn, the seven of us are some of the most passionate survivors in this new frontier.  The Renaissance is here, amongst us.  I see it, hear it, believe it and continue to live it.

The cycle is in motion, probably always will be.  There's a ton of negativity, frustration, misguided perceptions, & the like... from the Real Estate Profession and those outside of it.  Yet I see something else, something that may be considered intangible if I couldn't reach out and touch it.

On another post, I made mention of how this industry can take a toll on somebody.  It really can.  I said that it makes me lose my smile now and again.  Yet, something kind of grew inside me the other day, from the inside out.  I guess that's the way things typically grow.  Call it the inspiration that comes with perspiration.

I looked around while nobody was watching as I was at the office.  All seven of us were there at the same time and I peeked at everyone individually, with a sly smile in my eyes.  Hai was studying mortgage products, Bill was trying to get someone into their new home, and Jane was counseling somebody on their credit.  Meanwhile, Scott was charming an underwriter, Brenda was following up on files as only she does, and Bruce was making friends with a guy who just a week before hated his guts because we couldn't close his loan in 4 days without an appraisal even being done.  Funny now, the guy loves Bruce.  And Bruce will close his loan.  I then looked down at my palms and saw the soft skin of innocent nostalgia. 

As a kid, I recall dancing in the backyard of my parents home in Clarion, Pennsylvania.  It was just a home to me, with my bed and my dreams.  My biggest worries at the time were that my brother Justin was a bit more spoiled than I, and I just wanted to be something great... to me.   I didn't fully realize my parents had bills to pay, real world concerns, or the loss of any innocence I was engulfed in at the time.  My mind never truly captured the essence of it all. 

Today, I find myself working with families similar to my own.  I see young kids with sparkles in their eyes, and parents who are working their tail off to make it a good life for them and their own.  My dream is right in front of me; to help others understand what I never understood.  Sometimes I look back at being a kid and think those simple moments of being tucked in at night and dancing in the back yard as if the world was mine... is what it's all about.  I look at anyone I'm working with the same.  My mind and soul looks at the past and sees that sort of stuff now and again.

Now is again.  I logged onto Active-Rain shortly after playing a wallflower and drifting down memory lane.  I read and watched.  I didn't comment on anything, I didn't post any of my typical crap.  I just read, just watched.  What I was reading blew my mind.  Do you folks really and truly realize the landscape of talent that is right here, right now?  Tumbleweeds may be strolling across our playing field but what I see is inspiring as can be.  Some of the smartest, most experienced, most ethical and thought provolking folks are among us. 

Right then I knew, I'm truly blessed to even play a small part in it.

I've spoken to many of you, worked with a few of you, exchanged punchlines and insights with a large bulk of you.   This is a Win/Win, it really is.  For the sake of our industry, the consumers who find us here are more informed by the moment.  They are getting to know us at their own leisure.  No pressure, just some damn solid information and insight into our own personalities.  Sure, there's the occasional bullshit, yet that's a part of life.   

Our exposure is pretty huge.  Imagine someone from some remote part of earth, whom you've never met, typing in a word on a search engine and your words are the first they come across.  As Marsha Brady would say, "That's dreamy."  There are superstars here, right here among us.  I'm proud of my profession because of many of you... and me.

Awhile back something happened that soured me on this whole experience.  I sniffled and thought, "Are we superstars and will dreams be realized?"  Since, I've looked around and tangibly experienced that many of us are and they certainly can.  As far as the rest of it, work above it and around it.  Get in its face if you have too.  That too, is a part of life.

I leave you with this.

But never lose the love...

In the spirit of times when policy reaches out to the public, where politics try to give hope and transformation to its people, there lies a very important aspect that not many at any convention you are watching or studying... truly understands.  It deals with our homes, our land, and part of the backbone of our very economy.  I'm lucky enough to be involved.  I'm honored enough to be able to impact and to help.  I dare say that I'm the right person in my area to do my part, to do this job.  My name is Jason Sardi and I am Mortgage Broker.  (reciting that in the mirror each morning has a delightful way of waking up my sleepy behind)

I'll try to make the context brief, realizing attention spans are a tad short and you folks have better things to do... like concentrate on you.  Home-ownership is a vital part of the American Dream so often mentioned, sometimes very loosely.  I'll simply outline my qualifications and you can decide. If that sounds fair... here we go:

Some folks are hungry to get their mortgage loan closed.  Yet, they are lost in the dark ides of what is needed to make that happen.  Folks think that it is entirely up to the lender or broker or bank they are working with.  That holds some semblance of truth, but people have more power than they have been given credit for and have more influence than what they've been taught.  Here's a few pointers to make that hassle, one less of one.

The tail wags the dog these days.  A perfect example of this is your credit score and report.  It affects your life far more than it probably should.  So, know the system and get informed.  Not all of us have the type of credit to get us what we want, breakfast in bed served by the new cast of 90210.  In many cases, people need somebody to lead them in the right direction.  If I can't do a loan for you now, if you simply aren't prepared, no worries... if you aren't a client now, you will be down the road.  I work with folks even if I can't close their loan anytime soon.  Part of my job is educating, most of my job is making sure you're better prepared ongoing.  Credit Scores and history are important, read this to ensure you are working with someone who understands how you can put yourself in a better financial position at a later date. 

It's not just about getting pre-approved or buying a home, assuming you are in the position to do so.  It's also about working with someone who will look out for your best interests.  There's no reason to overextend yourself, leaving you mortgage poor.  Here's an example you may want to check out.

People love to shop, especially for mortgages.  Well, they may not love it... but they certainly salivate at finding the best deal.  You know, the lowest rate with little if any fees?  Sometimes I wonder if people are looking for a mortgage loan or mortgage grant?  Tell ya what, check out this post to get some pretty bipartisan advice on shopping for a mortgage.

How about a niche product for Real Estate Investors?  With the large inventory in many markets, there's an abundance of opportunity just waiting out there.  This product can help you in many of your Real Estate Investment strategies.  Don't let the title fool ya, I'm no quitter;-)

Whether you are working in this industry or a consumer on the outside of it, these are challenging and changing times we live in.  You can learn a lot from this little guy.

Perhaps you are looking to relocate or buy a home in my local area of Allentown, Pennsylvania.  Here's a sample of what you can expect as I try to dissect your needs and situation.

A lot of discussion has been going on about fixed rate vs. adjustable rate mortgages.  Which is the best for you?  Reading this blast from the past may give you some insight... and something to think about.

Speeches are like belly buttons, everyone has one and some are prettier than others.  This isn't about how pretty you I sound, it's about how well you I perform.  Perhaps there has been no time in history like the present, where the mortgage industry was so important to you or this Country.  It's more than pretty words, it's more than convincing tag-lines or dazzling promotional pieces and sales pitches, it's doing the job ethically and competently.  It is getting the job done.  See that guy in the Barney-like shirt and tie below, that's me.  I tend to get the job done...

If you are in the Real Estate Business, I don't care how long you've been at the trade... you probably haven't seen everything.  Real Estate is like life in that facet.

The title of this post seems to be my new catchphrase.  A gal (customer) today asked me if I was frustrated with what was going on.  She was pre-approved two days ago and now they changed their guidelines.  I told her, "Yes, it's always frustrating when you have little control on what goes on, yet I learned long ago that was going to be the case with everything in this life.  I'm surprised I truly didn't realize that earlier."

Ladies & Gents, let's be honest here.  We live in interesting times.  But we aren't any more special than those before us that ran into speed bumps along the way.  How one reacts is key.  The title of this post is something I've been saying the past few months and it's nothing more than garbage.

Attitude is truly everything and frankly, mine hasn't been the best it can be.  Why, you ask?  Well, I will tell.  I try and do... go above and beyond what is ever expected... but there is one thing I fail to do.  Their expectations of me are overboard.  I treat folks and interact with folks like they are my only client.  They are not.  If they were, I'd be calling Jared at Subway to get a part-time gig while I worked this stuff out.  As it stands, I haven't eaten at Subway for three months.  I haven't looked like Jared for 32 years.

After two closings today, one would think I'd be a happy little camper... counting the dollar signs before they hit my lap.  I'm not happy though, I'm disappointed in me.  My mindset has been nothing but crap lately.  With every stupid hurdle being put in front of me, I've whispered sweet explicatives into my ear before putting on my happy face and doing what needs to be done.  My passion for fulfilling dreams over-exceeds my ability to shake off blatant lies along the way.  My last transaction has made me more passionate than ever about what I do and how I do it.  As far as the rest, read the next sentence.  Shame on me... shame on that conversation.

The business bloggers of the world may ask,"Hey Sardi, why would you put this post in public writing?"  To them, I retort, "I'm the best man for the job but that doesn't mean I don't get frustrated as all hell with some of what goes on."  Honestly, and I hate sentences starting with that word, I'd rather a consumer read ME  rather than another installment of today's interest rates, market overviews, or how my products are so much better than theirs.  I'm not really spouting that those folks who blog that aren't worth their weight, I'm just saying that isn't me.  If you want interest rates, email me.  If you want a market overview, do the same or call.  If you want to know about products, I've got this wonderful no money down~seller pays everything type deal where you don't have to make a payment for 12 months! 

I'm kidding, I will provide all that via the written word in a blog in which you can access in an anonymous way.  I know folks don't want to be bothered with email blasts and phone calls from numbers that begin and end with 000-000-0000.  My point remains that the influence of negative attention came my way and I bought into it... hook, line, & sinker.

I fell prey.  I never will again.  The market doesn't move me, WE & ME move the market.  Screw speculation, change is at our fingertips.  Will it be easy, no way!  I tire though of simple conversation, we can bitch and gripe about what financial institutions are asking for and doing... or we can get the job done.  I'm about the latter.  Time and perseverance may change the former.

Conversation is ours, we choose it in most every way.   Close loans that make sense.  That's a conversation worth having.

The conversation until it closes... is over.

And here's a song to think about...

... I made a mortgage loan to the brother of a guy I knew in passing.  The brother was in a bind of sorts, though he had a ton of equity, never payed his mortgage late once in his existent, yet worked at a Pizza Shop.  He couldn't quite prove all of his income.  Ya know, the under the table stuff Uncle Sam likes to peek at?   He had a choice in programs, I actually agreed with his decision.  (Of note, his decision didn't make me any more or any less money on that transaction.)  He'd take a lower rate (that would change two years to the date) now and save some bucks, put his credit (the score, he wasn't that bad of a credit file) in better shape and refinance into a more permanent financing down the road.

Well, we're down the road.  He's still got a ton of equity, never missed a beat with his mortgage payment, yet has that 'can't totally prove my income' issue.  His credit score, while going up impressively, didn't reach a magic 720.  And even at that, the rate was rather robust compared to current market interest rates.  But the rate is just conversation; I can't do a thing for him right now.

Actually, that's not entirely true... as they are coming into my office Tuesday and we are going to have a conference call with the current mortgage holder to try and modify the terms of their loan.

Stated Income Loans have always been a last resort, for specialized and unique situations.  Self-Employed Borrowers, Restaurant workers, Painters, Construction workers, & various other trades; sometimes have that stigma of funds coming in that Uncle Sam never sees.  Now, I've heard the argument that those folks deserve to pay for the fact that they don't pay taxes like the rest of us... and I agree to a large degree.  However, playing Devil's Advocate, the whole tax structure is borderline criminal in the first place.  That's my opinion, at least... and probably another conversation at another time.

When you have the Government getting involved in the Mortgage Situation going on, we've got a problem.  Let me explain why:

- Real Estate is a cyclical industry, always has been and probably always will be.  I'd venture to take an educated guess that just as many folks have thrived on 'down markets' as 'hot markets'.  Let the industry work itself out.  Politicians typically know as much about mortgages as I do about Hydraulic assisted brakes on an automobile. 

- I heard the oft-mentioned rumor that Stated Income Loans were to be banned in the state of Pennsylvania.  I've also heard they already have been in several states.  Stay out of it, Mr. & Mrs. Government.  You have about as much room in the Mortgage Industry giving birth and reality to your litigation as you do on telling owners of restaurants and bars that nobody can smoke a cigarette in their establishment.  Think about it folks, I have a question for you... other than more money in your pockets, make a rational point of what your reasoning is?  If I had a cool billion dollars to play with, I'd lump you a sum and tell you to go away.  Sadly, you would.  Because that's what it is all about... when ethics and humanity come back into the equation, wake me up... I'll be sleeping on the other side of "Geez, have I always been this cynical?"

- Of course the Government doesn't like Stated Income Loans, those loans are going out to people who may or may not be reporting all of their money to the system in place.  Come to think of it, I may divulge myself in Tax Laws very soon... I can't stand what I'm seeing.  I've got a guy who has always paid his mortgage on time, has an immense pride of homeownership (you should see his garden), and because of 'market conditions' and his inability to verify income that is actually coming in the door... nobody wants to lend to him.  Throw common sense out the window my friends, this guy owes about half of what is house is worth.  He's lived there since 1988.  Does that make sense that nobody wants to make that loan? 

Sub-Prime Lending will be back.  I did and do most of my stuff Conventional (for those who are credit worthy, can document income, equity involved, etc) but there's a market out there for folks who don't fit those parameters.  Rather than them having to deal with expensive finance companies, slowly you will see common sense lending entering the fold.  If the going rate on a 30 year fixed rate mortgage is 6.5%...if you can't prove your income and have equity in your home (hopefully reserves in the bank)... I'll charge you 8.5% for the privilege.  That makes sense, to me.

And Gus, you'll probably never read this since you are about as internet savvy as that Republican Candidate (I kid John, I respect him very much)... I'm going to help you out.  I just wish that I could help you out in a different way... my way.

I'm depressed.  That's how life starts out or ends up with some folks.  The medium (that of relative happiness) is often less traveled, you'll find that the case with most things in life.  I need this, don't have that, been screwed there, and generally want to end my existence for a happier form of appeasement from an unknown third party.  Hmmmmm, life's a rib.  Live it and die.

When I was the tender age of 24, I started writing a book that encompassed an ideal.  That particular ideal was a story about the evolution of life, perspective, experience, & enlightenment.  I suppose I was striving for the 'Catcher in the Rye' feeling without all the cynical crap that Holden's character portrayed.  As much as I wanted a zit-ridden teenager to show me life's worth, I figured it would be better coming from a cynical prick who had nothing better to do with his time than judge all that goes on.  When I was 100 pages into my story, my roommate's mother called the house.  Shame on me, the phone was right beside the keyboard I was connecting too.  I answered and listened blankly as the crack addict mother of a once good friend rambled on ... and I lost my story.  No hard feelings though, life makes a better story than I could ever conjure up in my tiny little mind.  A shout out to you Eileen, I hope things are well ... and you are okay.

In the past two days, I've witnessed two separate rainbows.  Yup, that multi-colored semi-circle that is considered a phenomenon of sorts to most of us.  When I was younger, I joked (kind of) that a rainbow was the devil in disguise, that it really was the devil smiling.  I witnessed a rainbow on my 32nd birthday weeks ago, there seems to be a pattern developing.  The devil keeps on smiling.

One can not be hurt ... one gets hurt.  Perspective, speculation, perception, is everything.  Rainbows aren't the light and rainbows aren't the devil.  Rainbows are an ecological response to a rhetorical question.  "How can one be truly happy?"

Happy is not the Jack.  Happy is not the Joker.  Happy is the man or woman who can look in the mirror right now and say, "I'm at peace.  I see the calm."  And they'll mean that from the very core of their hearts & souls.  It's what they do, how they live, why they live, and try to bestow upon others.

What the heck does this have to do with Real Estate?

Statistically speaking, nothing.  In fact, I won't even quote interest rates, product guidelines, up to the minute Mortgage info, or what all the jargon you hear really means.  That, I will go into, at a later date.  Sooner, rather than later.  I promise.

What this has to do with Real Estate is actually quite simple.  From my end, I affect lives.  I affect the financial lives of everybody I speak with.  For every ten folks I can't help (no matter how hard I try), there's one I can.

On your search to make your financial life better, you need competence.  You need somebody who actually gives a damn.  I dare say that you need somebody who will fill in your bottom line, that little pursuit of happiness.

If you're Jack, take that bag off of your head and face the world.  If you're the Joker, make-up and humor will never truly hide your bottom line.  Our bottom line is quite simple.  Without hesitation, they end with two words that are meant and felt and in tunewith everything going on in our superficial and spiritual lives.  It's a journey, it's a means, but there is an end that is inevitable.  I only want one thing when that day comes... repeat after me ...

I'm happy.

Under much scrutiny and acute observation, the Mortgage Industry faces times that our economy is currently ill-prepared for.  It has for some time.  I recall stating six months ago in a post, that around this time we'd be feeling the brunt of the burden being lifted off our shoulders.  I was wrong.  See, guys really can admit when they are wrong:-)

Ride out the storm, just don't stop.

There is good news and bad, I'll start with the latter:

-  You are going to need money to buy a home.  Sorry, that's the fact of the matter.  Now, folks will say that current economic and financial conditions prohibit them for being able to do that (have extra money of any kind), yet that's where we are at.   Perhaps I'll write a post soon that illustrates simple ways to save.  And you won't even have to pay for the privilege of my sharing;-)  Speaking of non-profit entities, make all checks payable to the International Bank of Jason Sardi. 

-  Credit Scores are more important than you may think.  Beyond the credit history of your payments to the precious folks you owe money too, Credit Scores are crucial!  And I'm not talking about just getting approved for a loan, I'm talking about the interest rates & costs provided to you because of your score.  It can mean big bucks monthly, even bigger bucks annually and over the life of the loan, if you chose to keep it.  Of note, if you want to steal somebody's identity, make sure it's a good one.  There is little that is worse than dealing with someone who stole the identity of somebody else who shows the chronic disappointment of never being able to pay their bills.

-  Down payment assistance looks to be dying a slow death.  I'm not entirely opposed to DPA's (Down Payment Assistance) but I must say that it is long overdue that we rely on ourselves rather than help from somebody else.  I'll get to that in a moment...

-  If you can't document your income, you're in a bind.  The 'under the table' lifestyle is one that lending institutions seem less and less inclined to lend too.  If we were playing a game of spades, Uncle Sam is holding the joker.

Onto the Good News:

-  There's a large inventory of homes on the market.  Patience & Persistence will prove wise.  You can be picky but don't let time pass by too fast, those who hesitate ... it may cost.  When you find, buy!  There's plenty of money to be made in any market, especially this one.

-  Cheap money is still available.  I'm amazed at how spoiled we've become.  A 6.5% fixed rate on a 30-year Mortgage is high?  Wowsers, get a grip.  That's cheap money, if you qualify.  And generally speaking, I don't care what interest rates are, you can buy a home or pay on the one that your landlord already bought.  That's your choice.  Sometimes, renting is the better choice.  In the long run, that's rarely the case.

-  Your sample of Mortgage Professionals has shrunk.  Now, this may be constued as a negative thing, but I dare say it is just the opposite.   While you'll probably never get rid of every seed that comes from a bad apple, you can be somewhat sure that those still doing business are there for a reason.  Utilize their knowledge and services, the 'Talking Heads' are going out of season.

I made mention earlier about relying on ourselves, rather than assistance programs that may get us into a home in the first place.  I'm not the biggest advocate of those programs and am certainly not their biggest detractor, but let's think about this.  I have a problem with the sales pitch involved.  Buying a home with no money down is certainly a convincing tale.  Yet, if anything goes wrong with your home ... guess who has to pay for it?  Yup, you.  Having money in the bank after closing is something I'll harp on until the cows come home to be milked.  It's in your best interests, that's all.

One other sidenote, when the media has an appetite, we're for dinner.  Watch your local and national news, but please remember they don't know shit.  These are the same organizations the are ridiculing each other.  'News' has become what the other 'News' organization is doing.  Right....

All else economical, that's a different story.  Just hold on folks, the calm will come.