Real Estate Financing...

So how long is my Pre-Approval Good for?

Jason Sardi, Mortgage Banker (FHA-VA-USDA-Conventional-Pennsylvania Loans) — Sat, 24 Oct 2009 19:22:04 -0500

Easy answer, 60 days. But I guess that depends on what kind of Pre-Approval you received or want for that matter. Actually, the answer to such a question depends upon three factors:

- You, as the consumer.

- The Buyer's Agent who is helping you find a home.

- And the quality of the Pre-Approval you receive in the first place.

Ten Seconds, GO - You're interested in buying a home. You even find a few that tickle your family bone. But you need financing because you probably don't have the cash to buy it outright. Which leads to...

Nine Seconds - You're smart and seek out a Buyer's Agent to represent you. This will provide protection in your favor. They represent you and only you.

Eight Seconds - That agent may turn you onto a few folks like me who can help you out from the financing end. And that doesn't mean you shouldn't shop on your own. But buying a home isn't just about getting the lowest rate with no fees (an oxymoron if I've ever encountered one), it's about trust. Interview those who express interest in earning your business and keeping it. If they have the lowest rate with no fees, I can only hope they are in business when you need to do business again.

Seven Seconds- The Pre-Approval is more than just an application and credit check. There's some serious competency going on. They ask for your most recent pay-stubs, W-2's, bank statements, and the last time you had a wet dream about Richard Gere.

Six Seconds - You find a house that you want to call home and a Sales Agreement has been signed and accepted by all parties. And there you are.

Five Seconds- You're hopefully just padding the documentation that you've already given to the Mortgage Company you choose. I recommend Sardi Mortgage Inc, who isn't licensed just yet ... but when you hear Sardi, that should mean something. I'm not sure what, but it means something. Maybe it just means that there is an individual who is all over your particular file like white on puss.

Four Seconds - Appraisal is ordered and done. The rest of your file is pretty complete because everyone got along and did what needed to be done.

Three Seconds - The complete transaction goes into Underwriting, those dastardly folks we think of who hate closing loans. I'll give you a bit of info here, and I usually don't stick up for Underwriters. They only get paid when folks close loans. Without us, there is no them. So, that's that. In business, there's more to it than that, but that is a pretty accurate description.

Two Seconds - You are CLEAR TO CLOSE. If there were three words that were magical in this industry, those are they.

One Second Left - It's a proclamation of your destination. You hit home!

And when there's no time left, that's the perfect time to be imperfect. And that's the perfect way NOT to close.

Jason Sardi

Mortgage Consultant

610-653-0317

jsardi@ihmci.com

They wrote what?

Jason Sardi, Mortgage Banker (FHA-VA-USDA-Conventional-Pennsylvania Loans) — Sat, 14 Nov 2009 13:00:12 -0600

There's a bad habit I own, that of reading while eating. Yesterday, I went with Jennifer to partake in a small feast that was our breakfast.

After sitting down in front of a local version of a western omelet, my eyes pierced the parameters for any bit of written word I could find. The only one available was The New York Post. Personally, I think the paper pretty much sucks and the so-called writers/journalists who participate (from what I've read) contribute to my general feeling. However, they are selling papers and those writers/journalists are making a coin, so who be I to fault them in what still remains a Capitalistic Society?

From page to page I turned to find something that was remotely interesting to read as I indulged in what happened to be one of the better breakfasts I've had on this planet. I'll plug that small Bethlehem Diner in the near future...

And then there was a story and a passage of which that caught my eye faster than seeing Dustin Diamond running across the beach holding hands with a smitten Corey Haim.

The following is that passage and ended that story:

"The Henrys settled on two lenders that made similar offers. In the end, it came down to perks. One offered frequent flyer miles for every $10,000 borrowed.

"That's what tipped the offer," says Henry. "We're going to take a second honeymoon in Europe." (Source: Thursday's New York Post Article, while I was eating a kick-ass breakfast)

Sounds ripe, doesn't it? You can make up your own mind on what you think (if anything) about such a matter. Sounds to me like somebody is quasi-indirectly paying for business, kind of like when you refer this person to that person and they pay for your cell phone bill, your car loan, your implants, and make a contribution to your potential alimony. Mafioso gone Corporate, or Corporate already being a tad Mafioso? Okay, maybe that's being a bit over the top ... or is it?

So, it has been decided that to improve my particular business, I will enhance the "perks" of doing business with me.

Every Mortgage Application that turns into a closed loan that I receive (in full)* before 2010 will result in yours truly giving the applicant a full back massage, a peek at my esteemed Baseball Card Collection, a unique insight into the Kennedy Assassination, and two samples of Aveda bar soap. And if that's not enough, I'll tattoo your name on my ass if you fit the fit the bill.

Or, I guess I could earn business the boring way ... giving folks the best products I have and the best service that only I can provide. But who wants that? Dance with danger...

* A full application entails you and I filling out a full 1003 Application, collecting all supporting documentation that is necessary, and taking blood and hair samples as we need them. There is little in the way of a guarantee that you will qualify for said services, but it rarely hurts to ask. Please visit appropriate guidelines and fine print to see if you qualify for such services. Oh, come on, you have to love fine print.

Quick story & staunch Reality...

Jason Sardi, Mortgage Banker (FHA-VA-USDA-Conventional-Pennsylvania Loans) — Wed, 28 Oct 2009 06:58:16 -0500

A young gentlemen was pre-approved. While a small loan, it is significant for him since it is the very first house he has ever bought. The closing date is on the back end of November's Ides...

The supporting documentation was collected and the appraisal was ordered, yet over the weekend, he spoke to the Family Attorney. Mr. Attorney recommended that he shop around. Alas, the chap was "approved" at a local bank at an interest rate that was about a half percent lower than we quoted. So, he went that way.

Days later, meaning today, it so happens that the local bank turned him down. While getting into specifics may be a bad thing, they low-balled a legitamate rate they could offer him and their debt ratio requirements are tighter than an amateur porn star's balloon knot. (No, you didn't just write that. Yup, I did.) They turned him down.

So, we are starting over to an extent. The appraisal must be re-ordered and now we can actually send the file to Underwriting.

I'm a champion of folks shopping around, just not so late in the game.

The next time you shop, try the Family Attorney.

Changing The Lending Industry Forever! One bystander at a time.

Jason Sardi, Mortgage Banker (FHA-VA-USDA-Conventional-Pennsylvania Loans) — Sat, 17 Oct 2009 22:41:13 -0500

Tired of extending Sales Contracts?

Disgruntled because of bait and switch interest rate and fees?

Trepid because of the surprises that pop up like a flaring zit in your teenage years?

Fed up with never getting a phone call or email back in a timely manner?

We hear you here at Sardi Mortgage, Inc. Now, while Sardi Mortgage, Inc isn't an actual operation... it is an actual human being. I breathe air. I breathe smoke (I know should quit, Mom). And I breathe what's best for anyone who takes a chance on a guy like me.

Let me tell a story and I'll try to make it brief. I read too many posts bloviating about this and that and never really saying anything. I don't desire this to be one of them.

About two months ago I had a return customer come to me with a two-fold question. The first one dealt with wanting to refinance his loan into a shorter term and lower interest rate. The second was an inquiry about his friend who wanted to buy a home but wasn't quite prepared to do it in the there and now. I'd like to concentrate on the latter, since the former is now in the books.

His friend has great credit, solid & stable income, and a rental history (with copies of canceled checks - take note renters) that is pure gold. However, they are paycheck to paycheck kind of people right now. Now, I know nobody out there reading this can identify with such, but this was their stumbling block. Because of the area they wanted to buy in, they didn't qualify for the 100% USDA Loan. Because they never served in the Armed Forces, they didn't qualify for the 100% VA Loan. So they had to come up with a down payment.

Outside of the two products mentioned in the paragraph above, 3.5% is the lowest downpayment on the streets right now. It can even be gifted from a relative. But this guy doesn't have a relative with the capacity to help him with such matters. So, he had to save it up along his way. And along his way, he was surrounded by many people who were also dealing with buying a home, refinancing a home, and inquiring about everything between. He got scared of the process and rightfully so.

I was asked a question that I'd never been asked in eight years of doing this gig. He asked me, "How can I be sure that my loan will really close? There seems to be so many horror stories out there, even if the loan does close. Can you promise me that I won't have to deal with that when I'm dealing with you?"

I had to pause at that point. Let's face it, I'm only as good as the company I work for and with. While I can do everything right on the front end, I DO have to rely on others to do the same on the back end... ensuring a smooth sail to the table where ink dries.

I answered his question. Do you want to take a guess as to how I answered it? Well, I told him I couldn't promise such things. I told him I can only promise ME and My Committment to anybody I deal with. It's a war out there. And I'm a soldier you can either hire or fire in these battles. Like a good car salesman, I should mention that I look dapper in fatigues. Like a bad car salesman, I rarely wear boots or underwear.

And it's reason #142 why I want to obtain the capital to start Sardi Mortgage, Inc. Common Sense Lending is an oxymoron these days. Oh, did I mention that the 'Inc.' doesn't stand for Incorporation, but Inclusion into the strange world of Common Sense Lending? Well, I just did.

I loathe the HVCC - some prick from New York wanted to throw around his power and make this the rule of law. I'd take him to Judge Judy, but I'm way too busy watching Jerry Springer.
45 days to Settlement? Okay, that's fine. But two weeks in Underwriting is not. Especially if you are a small firm in the big picture. You either need more Underwriters or a better one.
Regulate us all you want as to how much money we can make on a loan, just be prepared to do so consistently... and that includes your compensation, at whatever position you hold wielding such legislative powers.
If you really want to look out for the consumer, protect them by teaching credit and home lending in their early years in High School.
Well, there goes short and brief because I could go on for hours. Who knew??

I haven't yet been compensated by this blog. If you would like to provide such honors, email me and I will be sure to let you know where to send the eventual bounced check.

On that day that they question to hire me, watch out! Because if they don't, I will.

for the credits, click here:)

In losing a house, they found a home.

Jason Sardi, Mortgage Banker (FHA-VA-USDA-Conventional-Pennsylvania Loans) — Sat, 03 Oct 2009 19:01:23 -0500

A faded bush did appear, thick in foliage to any seer. It won't quite disappear, that foliage that I no longer fear.

~Gunther Moses~

If you think buying a home can be scary, try renting a house. We hear stories daily on the obstacles present when buying and then closing on a home. The fact is that once you own it, you freaking own it. You own its troubles, its grace, its everything... for the most part, it's your place. But if you are renting it ...

There's a little story I'd like to share. The participants are Lee & Shannon. They rented their house for five years. During that time, their Landlord seemed difficult, if not totally obnoxious. If something went wrong with the house, phone calls went ignored and any communication from said party seemed obsolete. However, when the rent was due, that Landlord was always available. And 'he would get back to them in a few days' concerning any problems with the house. Of course that 'few days' turned into the next month when rent was due. Yet again, the rent would be paid and the landlord skated around handling any problem with the living conditions.

Patterns persist.

Leaky facets, clogged drains, faulty electrical outlets, and a lack of hot water were only minor areas of inconvenience. Luckily, Lee knew how to deal with most of that type of stuff. But when the basement was flooded by a particularly feeble bout of rain and phone call after email after phone call to the Landlord went unanswered, the floodgates of change called their name. When they got a letter from the Mortgage Company to start making their payments directly to them, that calling started to scream.

Home-ownership had been a dirty word to Lee & Shannon for quite sometime. They had been content with renting. Truth be told, they had owned one over 5 years back and were put into an adjustable rate mortgage at the time. While a nice option for some people, it didn't turn out that way for them. It happened to be a treatment for buying over their heads. Lee & Shannon got out and thankfully suffered no severe credit ramifications from the experience. But they did suffer a very bad taste of what owning a home is all about.

With their rental situation in limbo, they opened all doors to make sure a roof was above their head.

From this front, they found a Mortgage Guy and I forget his name... though I remember the last name rhymed with 'Party'. ;) They compared the cost to rent vs. the cost to own in the price range of their particular area and financial ability to afford such. Not surprisingly, the numbers weren't so different. In fact, with lower home prices and interest rates to write your Aunt Susie about, it turned out that buying a home would be a cheaper expedition... at least in regards to monthly payment. Sure, leaky facets, clogged drains, faulty electrical outlets, and a lack of hot water could become an issue down the road, yet a Home Inspection intertwined with Lee's ability to deal with such things left a better taste of what owning a home could become.

They closed on their home on November 30th, 2009.

Oh the glory, the romance of that day. A fear arrived and was dead upon display. It didn't take a smile, nor new-born tear, yet for the rest of the story... you may want to click here.

~Gunther Moses~

Hot Dogs, Sunsets, and other memories...

Jason Sardi, Mortgage Banker (FHA-VA-USDA-Conventional-Pennsylvania Loans) — Thu, 24 Sep 2009 12:54:44 -0500

In case you don't recognize the relatively blooming bald (yet still somewhat subtle) patch on that young gent standing in front of the sign, it's me. The place where I spent twenty-two years of my existence here on Planet Earth is a place called Clarion, Pennsylvania. One of my best memories is that of a business that is still thriving and somewhat of a legend in many circles. "Eddie's Dogs" is what we call it. Bar-none, the best hot-dogs on earth, and I've attended a Harlem Globetrotter game in my life.

Eddie is the owner and should be proud. In college, we probably gave him more crap than your local plumber can handle. But damn if he doesn't make the most fantastic hot-dogs around. And he has a pretty good sense of humor for a guy who looks like the Crypt Keeper never heard of moisturizer.

When attending back-to-back family reunions in my first visit to Clarion in years, we stopped by this legendary institution. It really wasn't churning in my head that we'd be stopping at Eddie's. I was there to help celebrate a monumental moment in my Aunt's Life and introduce the family to something other than a blow-up doll.

And then we passed Eddie's. At one point, he had two locations... one in Clarion (right across from a bar that was very popular among the college folks) and one that is shown in these pictures, which is the only operating one right now. My only assumption is that he shut the other one down because it isn't exactly easy for a 195 year old gent to deal with a bunch of dumb smucks like me... let alone the Frat Boys.

All stupid analogies and restless attempts at humor aside, the guy took what he did and does for a living and made it into something pretty special. If you want the best hot dogs in the land, visit him.

As far as the sunsets and other memories, well, some things you just keep to yourself. But they are good ones, none the less.

The most articulate version of the author's reaction to his first Taco Dog...

~Capitalistic Grace~

Jason Sardi, Mortgage Banker (FHA-VA-USDA-Conventional-Pennsylvania Loans) — Sat, 05 Sep 2009 12:23:01 -0500

The one thing I find missing from our Capitalistic Climate lies within the very title of this post. I deal with the lack of grace all the time and am damn sure I'm not the only one. Too many instances arise when you help folks, guide folks, try and point them in the right direction, and all of the sudden they disappear. Without notice, without a word.

Click here.

Perhaps they found a better deal. Can't win them all. I'm cool with that. That's competition and I don't fancy myself Rocky Marciano just yet.

It puzzles me and makes me understand the "churn & burn" attitude so many sales folks have. Get them in, get them out. It's more of a one night stand than a relationship. Maybe that's the way it should be done?

But I disagree, especially when it comes to something like, I don't know, your house for example. Do you really want to be sharing the sheets with Bill Maher when you can dance with Jon Stewart? Mysterious analogies aside, I want to be advised by someone who holds some semblance of trust and credibility with me.

I ran into a 'Rate Shopper' a few months ago and we've been in constant contact since. His decision on which Lending Entity to choose came down to three. I was one of them. When he made his decision, it was based upon my fees being higher than the competitor and that competitor happened to be the Mortgage Company he had already dealt with. He sent me a pleasant email articulating his decision. I was quite shocked! Not because of his decision per se, but because he took the time to let me know. My response back was a grateful message thanking him for doing what so few do. His response verbatim is as follows:

"You're very welcome, Jason. I felt that I owed you that in light of your helpfulness. As someone who's essentially a missionary (financially), I raise all my support, and get frustrated when people don't have the thoughtfulness and/or courage to let me know they're not going to support us (or stop doing that).

In any event, thanks for your kind words. That means a lot to me, too.

Grace to you,
Bryan"

I'll take Bryan as a prospective client any day of the week, even though I didn't earn a dime in my communications with him. He earned a reputation with me. I think I did the same with him. Reputation turns into relationships. And while almost every relationship I've heard of has rocky roads to travel, that's the way to do business the right way. At least until I find a goldmine under those covers with Bill Maher.

Smart Sales translate into closed deals. Smart Sales is also ensuring it's a long term gig and not a short-term (and often perceived) fortune.

Buying a Home can be easier than getting a job at a Retail Store.?.

Jason Sardi, Mortgage Banker (FHA-VA-USDA-Conventional-Pennsylvania Loans) — Fri, 04 Sep 2009 14:48:10 -0500

First let me preface (one of my all-time favorite words) this with a cold reality in the Lending Atmosphere right now:

Nothing is easy. I'm pretty lucky in that I have access to the ears and experiences of Lending Folks all over this Country, not just locally. It's across the board. Get on the gloves and realize that the days of two or three round fights are no longer the norm. It will take a war of sorts, to survive & thrive out there. Call it more Muhammad Ali/Joe Frazier than Mike Tyson/Michael Spinks.

I was more than shocked when I heard stories from various Retail Stores that are having trouble hiring. I mean, we aren't exactly in the 'Best of Times' economically. Are people not applying? Are they instead spending $39.95 to learn the secrets to making millions while doing butt slides across their marble floors as money rolls in from that 'Best Kept Secret Nobody Knows About'? Hey, maybe they looked up something online and realized they had a Rich Uncle in Rwanda and that lost fortune was now theirs?

Sadly, I suppose, none of that was the case. It seems many Retail Stores require you to have perfect credit to get hired. Let's call perfect credit 760 just for poops and grins. 850 is actually the number, depending upon the reporting agencies, but if you are over 740, you can probably give most White House Employees a lap dance and get paid for it. Well, now I understand why they're having a bit of trouble hiring.

Before I ever got into FHA Lending, most of the business I did was Conventional... and some was the infamous Sub-Prime. Those Conventional Folks had scores in the 700's most of the time and that was what I was used to dealing with. Color me more surprised than when I learned that in this day and age, you need a 760 score at some of these places to make $10.00 an hour selling moisturizer obtained from a frog's lip:)

It reminded me that while nothing seems easy in obtaining financing these days, we are still a bit more lenient and the outcome can be a whole lot more rewarding. Sorry, but long-term homeownership eclipses looking like Joan Rivers for a hot moment.

Standard FHA Loans with most investors require a Credit Score of 620, no blood sample needed.

Conventional Loans, these days, are mostly a miss when it comes to payment/cost when your LTV is over 80% of the value/sales price of the property your financing.

While the process can be so convoluted and seemingly incompetent (when buying a home),... look at our freaking world! Jimmy Fallon has a Talk Show!

Unless something changes and if you have a job, it's probably easier to qualify credit-wise to buy a home than work for a local Retail Store.

Strange Days, Indeed. Go out and buy a home with your 620 score. Leave the Retail Stuff to the Credit Worthy;)

Price Warfare in a Service Industry.

Jason Sardi, Mortgage Banker (FHA-VA-USDA-Conventional-Pennsylvania Loans) — Sat, 29 Aug 2009 20:59:11 -0500

When it comes to mortgages, if you are like me, you are looking for the best price, lowest rate, and shortest travel between two points. There is also one minor detail that you and I may have in common, it's called customer "freaking" service. Looking for the straight line without much in the way of curves, kind of like Calvin Klein before his untimely demise. Nevermind, he is still alive. And if those curves arrive, which is a decent wager in this atmosphere, you probably want someone to stay and inform you every step of the way. Perhaps I'm projecting, but still...

I've been wearing the title of Loan Officer for the better part of eight (going on nine) years now. I've loved it and I've hated it. Still feel both to this day. But what strikes me as the curious sort, why do you chose that entity you choose?

I quote rates on Zillow and firmly believe some of the stuff I'm competing with is a joke. It seems folks want to be baited initially with the 'deal of the day', as much as they detest being switched to 'the reality of it all' by the time the transaction is over. Hey, I could be wrong but I find it highly unlikely (back to back adverbs, love it:) that the person quoting you the costs and profit (low-balling, mind you) cares much on how it turns out... as long as it closes. It's volume driven. It's getting the phones to ring. It's getting the inbox on the email to have more inquiring messages.

While I hate to perpetuate any pessimistic view of the Mortgage Industry, especially in times where that seems status quo, I dare say that some of my predecessors are more John Gotti than they are Jesus Christ. More profit than prophet. Personally, I'd like to be a whole lot more like Jesus. I especially respect his hairline.

If you are shopping for a mortgage, whether it be to buy or refinance a home, don't do it on price alone. Especially not now. Price Warfare in a Service Industry is probably going to mean you are going to get screwed Jenna Jameson style in the end.

While I don't mind porn, it doesn't belong in Real Estate. Shopping service is shopping smart. And you rarely get screwed.

About that fence you are sitting on...

Jason Sardi, Mortgage Banker (FHA-VA-USDA-Conventional-Pennsylvania Loans) — Wed, 12 Aug 2009 21:15:14 -0500

I was posed with a not so unique question early on last Friday's morning. It came from a rather astute prospective client who asked, "How do I make sure I get the best rate?"

The more I thought about it after initially answering the question, the more I wondered what was really the right answer? Heck, was he looking for the cheapest deal or the best deal, they are not always one in the same? Was he looking for trust or smoke & mirrors? He's a quality borrower by lending standards, yet seems to have fallen into a similar box of shoppers who have made life difficult for themselves and us by shopping on fees and rate alone.

Devil's advocate may say, "Is this trying to substantiate ridiculous fees and a higher than market rate to pad your pocket book?"

Devil's nightmare says, "Not at all. Sales is volume driven, word of mouth, not getting ‘rich' off of one transaction, but making coin because you do many of them. And I believe if you do it right, there's an education/consultation factor that just may be priceless for those who chose to work with you. That kind of stuff saves them money, even though the Good Faith Estimate isn't the cheapest they've seen and the rate quoted is the lowest they've heard"

And he's still on that fence, which might make me a less than stellar sales guy. Which also puts me on par with most folks who tend to be less than stellar shoppers. My job, in part, is to consult folks on what to do and when to do it, in regards to anything involving Mortgage Financing.

Fair enough...

If you are in the position to obtain financing to purchase a home and have the desire/need/want to do just that, get off that little picket fence. It may be electric when you look forward to see it behind you. What does that mean?

Rates will go up. I'm pretty sure of that. More than likely, sooner rather than later. The historical low we've seen has got to inevitably come to an end. The Tax Credit thing, well, it ends soon as well. And the inventory of homes on the market at prices more appealing than Selma Hayek in white stockings, will eventually reach a happy medium and go away. It will no longer be a Buyer's Market, at least like it is right now.

To answer the young man's question of how one can get the lowest interest rate possible, it's not always by shopping around. While that's a starting point, this isn't a flea market. This is probably one of the most important transactions that gentlemen will undertake.

In retrospect, I should of answered his question with a somewhat different retort. He is looking for the best rate and talking to me at 7:56 AM on a Friday Morning. I think he just found it.

But The FHA Guidelines Say So!?!

Jason Sardi, Mortgage Banker (FHA-VA-USDA-Conventional-Pennsylvania Loans) — Sat, 08 Aug 2009 12:44:06 -0500

To spout off that we live in an interesting atmosphere in the mortgage lending business is akin to the genius next door proclaiming professional wrestling isn't real. Yet, I shouldn't even get started on the latter. And the former is quite diplomatic in the use of the word "interesting" rather than downright perplexing.

Let's take for example the title of this post. I get inquiries daily from Realtors, folks reading posts here on AR, fellow tenants in the building we rent, William Shattner, and former clients about the difference in what is said that can be done and what is actually done.

"But there's no minimum credit score for FHA Loans," the informed consumer proclaims. Even so, try finding me a lender or bank who will legitamately close and fund an FHA loan with a score below 620 these days and I will find you an episode of Charles in Charge that is remotely interesting.

You'll find similar discrepancies with Fannie Mae Guidelines. One in particular, is how many mortgages on different properties that can be on credit before they will no longer lend you a dime. If my facts serve me well, Fannie's Guidelines now allow up to ten. However, few investors will even allow more than four.

(Of note, my opinion is if you open up the credit flood gates to quality Real Estate Investors, it will help curb what is wrong with the Housing Industry & the Economy... sooner rather than later. That though, is another post in and of itself)

What we are experiencing is called lender overlays. The guidelines say one thing, yet you come to find that lender's aren't abiding by that book of thinking. The guidelines may say this, but the lender or bank says that. Their pendulum is tending to swing a bit more conservative than the guidelines of Fannie, Freddie, or HUD for that matter. While I can't rationalize the pool of brain cells planting the seeds for this line of business dealings, these are the facts right now.

The rules being laid out by the so-called "Big Dogs" are being tweaked a bit by the smaller puppies who are lending the money.

This is an important reality to understand. Credit Reporting Agencies, Mortgage Insurance Companies, Ballet Classes involving Mario Lopez, & Lender Overlays are wagging the tail of the mortgage industry. It may not be fair. It may not be right. It may not be just. But this is the hand that's being dealt, learn how to play the cards.

And deal with somebody who knows how to hold them.

Sorry, my first Kenny Rodgers reference of all-time... I believe.

~Of note, this post isn't copyrighted and feel free to copy and paste it wherever you want. I'm tired of a litigious society of lazy people and frivilous lawsuits. You want to publish this, go right ahead. Just try to convince them on a second post that this crap was really yours.~

Jason Sardi

Mortgage Consultant & Fellow Human Being

jsardi@ihmci.com

610-653-0317

Getting past the false advertising...

Jason Sardi, Mortgage Banker (FHA-VA-USDA-Conventional-Pennsylvania Loans) — Sat, 01 Aug 2009 10:05:23 -0500

nice lead in....

Sometimes I fancy myself a consumer. Aren't we all? In those moments, I try not to think of things from a professional standpoint, nor a purely logical one. Instead, I attempt to understand what I would think of things if I wasn't in this industry and wanted to buy a home... or already owned one and/or wanted to dabble into refinancing it.

I won't mention names because I'm not a fan of lawsuits. Yet, I've seen subtlety directed commercials from Mortgage Companies "tied" to Government Programs. I've seen rate sheets in the Sunday Paper that made me spit up blood. I've seen sales at its worst, marketing at its absolute most desperate. Creative, yes. Misleading, damn right.

Shopping for a home loan isn't pixie sticks. This is damn real. Not that pixie sticks isn't real, but I'm trying to make an analogy over here:) I believe it's about time we buy the product based upon little things called communication & trust.

I tend to reference my man over at All-State. That's who holds my Car & Homeowner's Insurance. When I was shopping around, he was on the list but wasn't the cheapest and didn't bring me donuts upon my arrival. I was referred to him through a friend. I went with him, cause he sat down and explained it all... warts and everything of insurance. To this day, if I have a question or problem... he's on it and gets back to me like an ex-girlfriend who just saw a naked picture of me on youtube.

These days, with the folks that have survived the proverbial mess that is the mortgage business... most I know are pretty damn good people. They will take care of you. That typed, there are always exceptions.

My point in all this is pretty simple. Be cynical, be careful, and make sure the guy or gal you are dealing with is genuine. They should not only know what they are doing, but really care. If they are churning and burning, you may want to move on. While sales is an institution based upon volume, rarely immediate glory, I'd much rather play the part of Sam Walton (though I don't think Walmart really represents his true vision) than a fictitious character based upon reality named Gordon Gekko.

Advertising can be a short-cut to thinking. I understand the concept, especially when it goes National, yet I loathe the directions it can & will take.

I don't need someone to sell me; I just want someone to tell me the truth of the matter. It's that simple. That's sales.

About The Author : Jason Sardi is somewhat illiterate, somewhat intense, and does mortgages for a living. He/We also has two cats and another stray that seems to like this abode, which he's thinking he/we should adopt. Jennifer is a better mother than I am a father, for sure. They will be in very good hands. Jason Sardi also hates fine print. Jason Sardi doesn't like B.S. Obviously, Mr. Sardi doesn't have a degree in Marketing or direct ties to National Mortgage Companies that pad his wallet. That's a shame, Mr. Sardi likes a padded wallet. Hmmm, maybe Mr. Sardi will just run for Political Office. A suit & tie can make angels of us all.

Oh, forgot the contact info.... jsardi@ihmci.com or on my cell at 610-653-0317. And remember, no prank calls... unless they are really innovative, original, & witty.

Brokers, Bankers, Behemoths, and you?

Jason Sardi, Mortgage Banker (FHA-VA-USDA-Conventional-Pennsylvania Loans) — Thu, 23 Jul 2009 22:19:30 -0500

I'm leaving tomorrow for the first family reunion we've had in quite sometime. I haven't seen my Mother's or Father's side of the family in years. I'm seeing them both over the weekend, provided that I make it there in once piece. The only reason I bring up that last sentence is because while I'm not driving, I hate highways and speed on four wheels. Call it my phobia, my version of Jeff Gordon's antagonist. Sorry if Mr. Gordon is an out of date reference, but I follow NASCAR about as much as Clay Aikens follows a female into the sack. Get the drift? Yup, kind of breezy...

Being one of the younger chaps in the fold, one of the common questions I'm expecting to answer is what I'm doing for a living these days. Am I doctor? Am I a lawyer? How about an Accountant:) Am I a world renowned proctologist? Am I teacher? Am I a preacher? Am I... no, I'm not. I'm now a Mortgage Banker. I used to be a Mortgage Broker.

~The collective sigh may just hush the room~

Most people don't know the difference, especially my folks and most of my relatives who haven't reached puberty in the past ten years. Bankers were the way to go. Respected and counted on. Enter the Mortgage Broker, which is now the maligned entity that did one heck of a job causing all this.

Like my intellect, I'll try to make this very short and sweet.

I won't pretend to sit here, type, and expound on what is the truth or what is not the truth. What I will do is share my experience since I entered this often heinous gig back in 2001. Mortgage brokers did some good for a lot of people in their existence and they aren't quite dead yet. Mortgage bankers have also done some good for a lot of people and their existence seems to be a tad bit more chronic.

Bankers & Brokers were never treated the same because at one point, Brokers held the proverbial Lion's Share of the Market. When the toilet starting turning brown, the brokers were the ones who were most easily flushed. The term "Banker" was and still is almost always thought of as more respected than "Broker".

I'm a Mortgage Banker, but I can tell you as a former Mortgage Broker, if/when they put those folks out of biz... options tend to end. While I'd rather not discuss my trade with my Aunt Lois who is turning 70-years old on a surprise birthday, it will be discussed. I just hope not to give her nor I a heart attack in the meantime.

Bottom line, what does this mean to you... the consumer? I don't like it. The question will remain, do you? I was forced out of the broker business which made me want to be a Kennedy with a similar liver. Yet, reality is what it is. Brokers aren't evil, people are. Guns don't kill people, people do. One man's Banker is another man's Pawn Shop. Gary Coleman doesn't sleep with your ex-wife to just churn out a sex-tape, his agents recommend it to prolong the career.

My guess is that people want more options, not less. Sure, there was and probably always be incompetence. But that very incompetence isn't because one is labeled a Banker or a Broker... it is because they may just be INCOMPETENT.

I rest my feelings and thinking on one final note. Every law that is passed should have the people in mind. But nevermind the people, it's now law. Well, I got a nice little link to sing the song that I can't sing...

just click here

My Aunt Lois turns seventy and I love her. I haven't seen her in years. With that, she'd probably like this song a tad bit more:)

While I'm a lousy salesman, I'll tell her what I know. I have a good heart and a bad taste. I'll stick around until they catch up with eachother.

~Sardi~

It's Free, It's Fun, It's Your Credit Report?

Jason Sardi, Mortgage Banker (FHA-VA-USDA-Conventional-Pennsylvania Loans) — Mon, 24 Nov 2008 01:59:03 -0600

To say your credit history & score is HUGE these days may be a borderline understatement! For purposes of my experience, I'll concentrate on how credit relates to getting a mortgage to buy a home or trying to refinance the one you currently own.

Talking about credit is about as much fun as chewing broken glass while watching Yanni's latest video on VH1, at least to most. Even for the most severe masochists or staunchest Yanni advocators, it's probably not a subject full of brim excitement.

So, I'll try to make this concise and simple. Educating yourself and working with professionals who can guide you along the way, to make sure your credit is worthy of a three course meal at the White House, is crucial. I'm not just talking about those whose credit is in the crapper. I'm also writing to folks whose credit may be moderate or maybe you've never made a late payment in your life but your score is low. The Credit Reporting Industry is wagging the dog, forget about whining... work and know the system.

Here are a few tips & quips:

* Get a copy of your Credit Report. It may not provide your actual credit score, but at least you can verify the accuracy of the information on your report. I've included information below that you can utilize to do this. Quick thing here, credit modules differ within industries. For example, the credit report a mortgage company pulls may differ from that of the institution giving you a car loan or credit card. Mortgage folks weigh heavy on student loans and car loans and even heavier on your Mortgage History, provided you have one.

* Communication is key with your credit. If you are experiencing rough financial times, call them before they WILL call you. Let your creditors know what is going on. It probably won't stop them from reporting you late to the credit agencies, but it probably will provide you one less of a headache. That's what life's all about... avoiding headaches:-)

* The only thing that may be just as bad or even worse than credit overload, is no credit at all. Establish yourself in the creditor's eyes. If you have no credit, get secured credit that reports to all three credit reporting agencies. This may mean making a deposit at your bank and taking out a loan against it or pre-paying on a credit card. If you are doing the latter, use that credit card and pay it off it off regularly.

...if you have a bankruptcy or foreclosure in your past, establishing 12-24 months worth of a good credit is absolutely crucial!

* Oh, those credit cards. I'll put it bluntly, the bigger the differential between what your current balance is and what your available balance is, the better for your Credit Score. Don't be afraid to call your credit card company and ask them to raise your available balance. Don't use it, just have it there to improve your credit standing and score.

...sidenote on credit cards. Don't be afraid to call your current credit holders and ask them to lower your interest rate. If the first person you talk to can't or won't, ask to speak with a manager. If unsuccessful in that endeavor, call back at a later date. Be persistent & professional in your efforts. Lowering your rate even the slightest bit can save you some serious money now and down the road.

* Pay your bills on time. Yeah, I know, this is a no-brainer to most. Yet, it doesn't report late to the credit bureaus until you fall 30 days late. Try to make sure you don't get 30 days late on anything. Sure, you may incur late fees if you are even a day behind on some credit, though Mortgage Companies typically give you a 15-day grace period before you incur any late fees. From my experience, make sure your mortgage/rent is paid on time first, then student & car loans, then credit cards. If you are a renter...

...pay your rent by check and keep copies of your canceled checks. Twelve months worth will do (pay month by month, pre-paid bulk payments won't do you any favors...create a consistent history). This establishes a housing history. While it doesn't do anything positive for your credit, it does wonders when you apply to buy a home.

* Settle delinquent accounts for pennies on the dollar. If you owe the International Bank of Jason Sardi a cool $5,000.00 and your account is charged off, you should call to arrange a settlement once it goes to collections. Often times, you can come to an agreement for a lump sum of $2,500.00 or less and you may even be able to work out a payment plan. Either case, make sure you pay that account satisfactory and get the paperwork of the agreement and the final pay-off to prove it. Paying off delinquent accounts will probably drop your score at first, but will do wonders for your score down the road (provided you keep paying everything else on time).

* Avoid 'Hard' Inquiries. Your current creditors may check your credit, but that is considered a 'Soft' inquiry and shouldn't affect your credit score. Yet, if you are applying for credit out the behind, those inquiries can adversely affect your score. It raises the red flag that you may be on your way to becoming credit dependent. Psychologically speaking, never give them that drift, make them know that their livelihood depends on you... not the other way around.

* Credit Restoration Companies may be able to help but avoid anything that says, "Consumer Credit Counseling." CCS is considered a form of bankruptcy in many lenders eyes and their ability to pay your debts at a 'consolidated interest rate & lower payment' is suspect and often times worsens the situation. On the other hand, I've only witnessed one Credit Restoration Company worth its weight in the seven years I've been traveling this gig. There may be and probably are more, but I've only witnessed one. If you want more info, contact me. Always remember though, you can do everything to make sure your credit is at it's best, yourself... it's a matter of being educated and persistence in your efforts. That takes time. Though time is a commodity not all of us have.

Below is info on the reporting agencies that you should contact to get started. Even if you have an above average credit score, you'll pay more than you should if your credit score is even 20 points lower than the next guy or gal. Save yourself money, put in the time and seek out the Mortgage Professionals to ensure that time is well spent. Your credit is crucial... our knowledge of the industry and mechanics involved... can save you money and fulfill your dreams of home-ownership. If you already are a homeowner, we can help you get on the path to make finances one less worry in this life.

Equifax

P.O. Box 740241

Atlanta, GA 30374

1-800-685-1111

www.equifax.com

TransUnion

P.O. Box 2000

Chester, PA 19022-2000

1-800-916-8800

www.transunion.com

Experian

P.O. Box 2104

Allen, TX 75013

1-888-397-3742

www.experian.com

Bear in mind, at this point, you're entitled to one free credit report a year. Or, and I'd personally recommend this, you can get the whole batch which is simply called the 'Annual Credit Report Request Form.' That's free as well! The following sites will lead you in the right direction:

http://ftc.gov/credit

www.annualcreditreport.com

The bottom line in all this, the status of your credit can either cost or save you money. Which option sounds better to you?

***UPDATE!***

Lori brings up a good point with the following comment:

i Jason,

What a great blog. You gave a lot of valuable information. I envy your writing skills. I have just one comment, be careful on advise towards settlement's. While it may make the consumer feel like they have done the ethical and moral thing, it mayl not help their credit rating. In reality, you can actually hurt it in the long run. That item can now be reported up to another 7 years. Understand that this reporting is fromthe date of last activity. If you are dealing with an item that has been reporting for a while and is about to fall off, by paying the debt it will be re-activated and stay on for up to another 7 years. The bottom line is a negative entry is a negative entry. Advise on repairing credit should be looked at on a case to case basis. Each credit profile is as individual as a fingerprint. While most of your information is spot on, there are certain things that can't be generalized. I wish I had your writing skills to be able to give out all the information in my head. I am working on that end of my social networking. Again, great post and feel free to call e-mail me with any questions relating credit repair, credit profiles or any credit related issue including identity theft.

Happy Thanksgiving-Lori Isaacson

11/25/2008 01:46 PM

by Lori Isaacson (Credit Restoration Consultants)

Delete Report as Spam

Because it's not that bad of an idea...

Jason Sardi, Mortgage Banker (FHA-VA-USDA-Conventional-Pennsylvania Loans) — Wed, 24 Jun 2009 15:43:38 -0500

Early last month, one of the loans I closed had two interesting variables:

The client had contacted me via this site over a year ago, starting his plan to buy a home.
I was introduced to a program that I wasn't astutely familiar with, The Philadelphia Home-Buy-Now Program.

After learning a bit more about it, I thought it was a pretty good idea. While I didn't know all the facts, some of the philosophies behind this program made perfect sense to me. The standpoint they come from is one that employees who are homeowners in the city where they work are more productive and are more akin to staying at their jobs for a longer term. They commute less, spend more time with their families, and even pollute less (I guess it must be that driving thing). All those points are laid out in some of the information I was perusing about The Philadelphia Home-Buy-Now Program.

Here's a brief breakdown of how it all works:

Step Numero Uno: A group of folks from the Program work with the employer and eventually the employees to create a customized program to suit everyone's needs. The Programs can be tailored for specific neighborhoods, to attract employees in specific professions, and to help match up the best and brightest employees and employers to help enhance the overall health of the community.

Step Two: When an employee of a company who is a part of the Philadelphia Home-Buy-Now Program sets out to buy a home, that person will be able to count on full support from the staff working with this public/private matching funds program. The employer can contribute as much as they'd like to their employee's purchase, and then the City of Brotherly Love will match the contribution up to $5,000.00! In certain cases, private developers will then provide additional matching funds up to $7500.00!! Those particular cases are dependent on the purchase of homes in select developments.

Step Three: That's pretty much it. With an employer's investment of just $5000.00, that may turn into a piece of change equaling $17,500 as an investment that will pay returns to the company, the employee, and of course, the very community of Philadelphia.

There are no income eligibility limits to obtain City matching funds.

Here's a brief list of Philadelphia employers already on board:

Citizens Bank ~ Temple University

Episcopal Community Services ~ Fannie Mae

Germantown Friends School ~ Keystone Mercy Health Plan

NewCourtland Elder Services ~ Saint Joseph's University

University of the Sciences ~ University of Pennsylvania

Some of the areas where homes have been purchased through this program since its implementation in the Fall of 2004 are Chestnut Hill, Fern Rock, Germantown, North Philadelphia, Oak Lane East, West Mount Airy, and West Coast Lane.

So any potential Homebuyers, Sellers, Realtors, & Employers in the Philadelphia area may want to check this thing out. Being on the lending side of the transaction that closed last month with this program, I can tell you that the process was pretty streamlined.

For More Information, Visit www.empowermentzone.org/hbn or contact Jim Flaherty at jim.flaherty@phila.gov

Jason Sardi

Mortgage Consultant

610-653-0317

jsardi@ihmci.com