Looking back two years, I had a post inspired by Ken Cook regarding FHA 203k mortgages. If you aren’t familiar with the FHA 203k, it is a loan product that allows the borrower to make improvements or renovations on the property as part of the original mortgage.
Today the House passed the Unemployment Extension Bill by a vote of 403-12. Yesterday the Senate Bill passed 98-0. I think it is a slam dunk that the President will sign this legislation in the near future.
The new version of the Homebuyer’s Tax Credit still has the $8000 for First Time Homebuyers, as the version expiring November 30th had. It also allows $6500 for “move-up” buyers, provided they have been in their home more than 5 years. There is an income cap of $125,000 for individuals and $225,000 for couples. Also, there is a price cap of $800,000 for the purchased home.
One of the mortgage guys I work with not only has it on the ball… but he does a pretty good job of writing about it…
Here are three recent posts from Ken that people getting mortgages… or thinking about it… should read:
A real pre-qualification can take as little as a couple of hours and a seasoned loan professional can easily guide you through the process. Anyone who gives you a pre-qualification over the phone without having seen any evidence to prove what you have said is giving you a decision based on credit and payment history with your statements only. This type of pre-qualification is what gives loan officers a bad name.
There are different levels of approval with virtually every mortgage application to loan process and agents we really need you to do your best accept them even if you don’t understand them. Otherwise you’re going to continue driving the loan officer (me 🙂 nuts and forcing the weaker ones to lie to you or avoid you. Let me help you not contribute to their delinquency by briefly explaining some of the levels of loan approval and addressing how I handle them individually.
Almost every loan application has some similar needs. If the agent knows what these are and can help prep the client to get these together quickly and accurately then the agent and the loan officer can start out by standing on the same side of the mud puddle and pulling the same direction on the rope. These are not absolutes and are not carved in stone but at least 9 of 10 loan applications need most of the following:
After you find the house, you have to find a way to pay for the house. Sure, there are a few people that just write a check, but most of us find ourselves calling a mortgage broker or banker.
When people ask me who they think I should call, I have a short list. I have several folks that I have interacted with that are still in business… but near the top of the list is Ken Cook, President of Novation Mortgage. There are a few reasons that I give out Ken’s number so liberally. The first reason is that he is an actual expert. He teaches classes for investors on financing. He is also a walking encyclopedia of ways to spot mortgage fraud… as well as loan programs.
But the main reason that I have Ken on the short list is that I trust his answers. If he says someone can’t get financed, I am pretty sure they can’t get financed. I he says that someone is golden, they are golden. Too often, as real estate agents, we get letters and assurances that a buyer will be able to get funded… only to have a failure… And trust me, having a funding failure at the colsing table is NOT fun. And it does happen (ok, it hasn’t happened to me, but it has happened…).
There is something else… I count Ken as a friend. We have worked together to organize the Social Media Breakfast Atlanta series. We have worked together with clients. We have referred each other business… each trusting the other get his part done.
He is also a geek… and I mean that in a good way. He came into the business with a tech background. So, he is a great resource for cool geeky stuff to do in the real estate tech sphere. That might be part of the reason he is the co-host of Social Media Edge on Blog Talk Radio.
So, if you are a buyer, and you are getting a mortgage to buy your house… calling Ken is a good idea. When he tells you a rate, he means it. When he tells you the costs, he means it. When he tells you that he can help you make it happen, he means it.
But there is one thing that Ken can’t do really well… He can’t really deliver the weather on the news. That would be a different Ken Cook.