Jeffrey Nelson

Many times mortgage broker marketing materials fail because of some simple mistakes. The most common errors found in materials include:

Feature-Focused ? The content of the message is focused on you, not the prospect. For example, companies often promote their years of experience in their literature, ?We have over 25 years of experience.? This doesn?t do anything for the reader. Your messages must answer the reader?s question, ?What?s in it for me??

Use of jargon ? Realtors are inundated with flyers from mortgage professionals promoting products. Realtors don?t necessarily understand what the terms mean or how it impacts them. Their job is to help people buy or sell a home, not sell mortgages.

Poor graphic layout ? Most people, including realtors, are visual processors. They process information best through pictures. Most mortgage flyers look like mini rate sheets. Don?t you remember how confusing a rate sheet looked the first time you read one?

Insufficient content ? Your flyers don?t include strong persuasion for a reader to take action. Many times the content barely covers any quality information leaving the reader dazed and confused.

Using materials as part of your relationship building strategy

Your goal after meeting a prospect is to maintain top-of-mind-awareness. And as you?re doing this ? educating them about your services. Realtors want to feel secure that they?re dealing with a true mortgage professional who can do the job. Your materials should position you in their mind as a trusted advisor. Someone that they should seek out anytime they have a problem.

You?ll be able to use your materials to campaign in several ways:

1. To follow up with a prospect after your initial in-person contact.




2. To introduce you to a new referred prospect (i.e. listing agent, financial planner, etc.).




3. If you have a website, a place for prospects to learn more about you.




4. For loyal clients to promote your services to other prospects.

What materials should you create?

You want to build an entire campaign that informs, educates and promotes your services. Each piece needs to answer the reader?s question, ?What?s in it for me??
Your pieces should include, but not be limited to:

• Introductory Statement




• Description of your target audience




• How you work with clients




• List of services




• A team profile




• Probing questionnaires




• Case studies




• Testimonies




• Background information about you




• Articles, educational pieces

There is a lot of material you?re creating, but for good reason. People absorb information differently. Agents who are skeptical appreciate case studies. Agents who are expressive and talkative like the questionnaires. And agents who work with urgency and make quick decisions will appreciate your list of services and description of your targeted audience.

Jeff Nelson helps loan officers increase loan originations by attracting quality relationships with real estate agents from the development of customized relationship-building strategies.

Click here to get a free copy of the Marketing Planning Guide, a 20-page workbook designed to help you outline a strategy to become an Agent Magnet.

Visit us at http://www.loan-officer-marketing.com

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Michael Challiner

Financial traders in the City are expecting interest rates to rise by half a percent by the end of this year. These days the Bank of England prefers to make a series of small changes to interest rates rather than one large change, so watch out for the first 0.25% rise around August time

Mortgage rates are already reacting with the rates for fixed rate mortgages rising. The best rates for two year fixes are now in the 4.15% to 4.48% range and for three year fixes, 4.49% to 4.64%. The rates on credit cards and loans are usually variable, so these aren’t likely to rise until the Bank of England moves ? but you can bet your bottom dollar that when the time comes, they’ll move quickly.

Only a month ago economists were talking about further falls in interest rates, so why has everything changes?

It’s all because inflation is coming back under pressure. The governments’ target for inflation is 2% per annum but with energy prices high, and likely to soar even further, we are beginning to see the knock on effect of energy inflation across the economy. And despite fuel bills siphoning money from drivers, new car registrations are up 7% on the year to March, industrial orders rose more than 13% and business confidence improved again in April. Even America, the world’s largest consumer of oil, the economy is experiencing surprising levels of activity.

In many ways this is good news for Britain’s economy. The annual rate of exports is growing at the rate of almost 20%, a rate virtually matched by imports. And the major quarterly survey of the economy suggests that growth will remain strong.

For the man and woman in the street, economic figures are all well and good, but it’s the housing market that is perhaps their key barometer. Here the current news is good for existing homeowners, but perhaps less good for those trying to get a foot on the housing ladder.

Currently, the housing market is buoyant. In the first three months of this year the Halifax reported house prices up by 1.6% and the Nationwide reported prices up 2.3%. But these are averages. Increases vary widely depending on where you live. The average asking prices reported by Rightmove, the web site for estate agents, were up 2.7% January to February 2006, 0.9% from February to March and 1.1% March to April to set record high of ?205,674. Overall the market rises are being led by `mini-boom’ at the upper end.

The problem is that traditionally, sentiment in the housing market is fickle. When we get the first confirmed sign of a rise in interest rates, watch buyers dive for cover. We believe that a quarter percent rise in August followed by another quarter in early autumn, will cause the housing market to stall.

As we all know, forecasts circulating eighteen months ago that the housing market was in for a crash landing, proved wrong ? and we’re still not expecting prices to fall heavily. But it’s the property hot spots that’ll bear the brunt of any slow down. They’ll be the first to really feel the slow down and plus a dose of realism in respect of asking prices.

At the moment nationally, the average house sale achieves around 95% of its asking price. When the forecast interest rate rises emerge, we’d expect to see this percentage fall to just under 90%. This will undoubtedly put pressure on sellers to trim their asking prices.

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Alvin Toh

To qualify for a reverse mortgage, the homeowner must have equity in his home and be over the age of 62. He can choose to receive funds from this mortgage as a fixed monthly payment, a lump sum, a line of credit or a combination of these. The mortgage will not be repaid until he dies, sells his home or moves out of his home permanently.

Reverse mortgage allows a homeowner to cash in on the equity of his home. He can use the funds for any purposes such as to pay for home improvements, medical costs, long term health care and vacations. Many older Americans are tapping into these funds to make ends meet. When social security payments, savings and pensions are not enough to fund living expenses, reverse mortgage can help secure the funds a homeowner needs.

Funds from a reverse mortgage are not taxable income and have no income restrictions. So, those who are on social security or Medicare benefits are not affected. Unlike regular loans and mortgages, there is no income check when applying for this type of mortgage as no monthly repayments are required. Effectively, you can still qualify for a reverse mortgage even if you have no income.

Despite the various benefits of a reverse mortgage, it is crucial to consider its drawbacks prior to securing one.

When the homeowner dies or permanently moves out of his home, the home will need to be sold in order to pay off the mortgage. The mortgage will be due at this time, in a lump sum. If the homeowner or his inheritors want to keep the home, they would have to make payment on the home within a year of the mortgage becoming due. Reverse mortgage is not the right option for a homeowner who does not wish to sell his home.

There are quite substantial fees involved in a reverse mortgage. This type of mortgage is generally more expensive than a regular mortgage or loan. In the beginning, the homeowner is expected to pay mortgage insurance premium, origination fee, appraisal fee and closing costs. In short, a $200,000 reverse mortgage may have $10,000 worth of fees involved with it. The fees are deducted from the loan prior to the funds being released to the homeowner. There may be additional servicing fees to be incurred during the term of the mortgage.

If the homeowner still holds a mortgage on the home when he seeks out the reverse mortgage, the mortgage will need to be paid off in full with the funds from the reverse mortgage and/or personal funds as needed.

The biggest drawback to a reverse mortgage is its upfront costs. Before you decide on a reverse mortgage, determine if there is another type of loan that can fulfill your financial needs but at lower costs. Shop around to compare various reverse mortgages from different lenders. There are some state and local governments that offer lower fees on certain types of reverse mortgage.

Copyright 2006 Alvin Toh

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Ralph Roberts

Banks, mortgage companies, and other lenders offer plenty of legitimate ways to eliminate a mortgage. You can borrow less, refinance for a shorter-term loan at a lower interest rate, make payments every two weeks rather than every month, pay a little extra each month toward the principle, or sell the property.

Now, there’s an even better way. Dozens of companies promise to help homeowners completely eliminate their 30-year mortgages in a matter of months for a flat fee of only a few thousand dollars up front!

What a deal! For three thousand bucks or so, all you have to do is kick back in your lounge chair twiddling your thumbs, and in less than a year, you can own your home free and clear, even if you’re facing foreclosure! Even better, you may qualify to cash out tens of thousands of dollars in equity!

Here’s how a typical mortgage elimination scam works:

First, the mortgage eliminators (a.k.a. con artists) post ads on websites, in Internet pop ups, in classifieds, and wherever else they can advertise offering mortgage elimination. Sometimes this is advertised as debt elimination, because the scheme can purportedly erase the balance on car loans, credit cards, and other debts.

The next step is to sell the theory that mortgage elimination is perfectly legal and it works. This is the fun part. Con artists have concocted all sorts of creative arguments to prove the legitimacy of mortgage elimination. According to one argument, banks don’t really loan their money.

They loan money they borrowed, and if you trace that money back to its source, it’s money that the government printed, so it has no real value — it’s just paper and ink. As the borrower, you actually generated the money, because the government had to print more money to cover your loan. In essence, the bank made money off of your signature, so the mortgage note is meaningless, and you don’t owe the money. In fact, the bank owes you money!

They toss a few extras into the argument to make it sound more convincing, often quoting politicians and Federal Reserve documents out of context to prove their point. They are also careful to point out that banks, mortgage companies, and the FBI will tell you that mortgage elimination is a scam, because the establishment is so afraid that if more people knew the truth, the big bad banks would no longer be able to cheat people out of their money.

Assuming you buy into the argument, you send three or four or five thousand dollars to the mortgage eliminator who promises to guide you through the process and represent you in court. With some con artists, that’s the end of it. They pocket the money they receive up front, and then you never hear from them again.

Other mortgage eliminators take the scam even further. They advise the homeowner to march down to the county clerk’s office and file a form stating that the original loan has been released; sometimes this is called a discharge of debt. Of course, the mortgage remains in place and the homeowner still owes the money to the bank, but if the county clerk records the discharge of debt, the deed makes it appear as though the homeowner owns the property free and clear.

Now that the homeowner appears to own the home free and clear, the homeowner applies for one or more additional loans on the property, with the generous assistance of the mortgage eliminator, of course. When the loan or loans are approved, the mortgage eliminator and the homeowner split the proceeds, often with the mortgage eliminator walking away with the lion’s share.

Eventually, the county clerk, the bank that made the original loan, or the banks that made the subsequent loans spot the scam and confront the homeowner. By this time, the mortgage eliminator is long gone, leaving the homeowner with one or more unpaid mortgages, a legal morass, and possible criminal charges for conspiracy to commit fraud.

Mortgage elimination schemes are designed to hook susceptible homeowners, and they resonate most with the most vulnerable of them — homeowners who are facing bankruptcy or foreclosure. What these homeowners should do when facing foreclosure is to immediately contact the lender and ask what options are available. The lender may be willing to restructure the payments to make them more affordable or suggest other legitimate solutions to the problem. In almost ninety percent of foreclosures, homeowners can benefit most by selling the property and paying off the balance of the mortgage in order to salvage their credit and start fresh.

Instead, distressed homeowners commonly look for a more tempting solution and end up falling for deals that really are too good to be true. They pay money they already cannot afford to a con artist, they bury themselves deeper in debt, and they create conditions that make it even more likely they will lose their homes in foreclosure.

As real estate professionals, we’re the first line of defense against all forms of real estate fraud, including mortgage elimination schemes. We need to educate ourselves in order to protect our clients and our industry against the persistent attacks and ever-changing tactics of real estate con artists. Only by becoming more vigilant and proactive, can we hope to gain the upper hand over those who threaten our livelihoods.

RALPH R. ROBERTS BIO

For more than a quarter century, Ralph R. Roberts has helped thousands of consumers realize the dream of homeownership. Dubbed by Time Magazine ?the best-selling Realtor in America,? Roberts is a recognized authority on Residential Real Estate; Personal Salesmanship; Real Estate Fraud; and, Sales Force and Office Management, Motivation, and Design.

A born motivator, teacher, and trainer, Ralph works alongside Federal law officials to help educate state and local law enforcement, regulators, and financial institutions on the problems associated with Real Estate Fraud. Ralph is also an award-winning and internationally recognized real estate agent and speaker who helps other real estate professionals from all sectors of the industry build upon their past and present success, grow and expand their businesses, and provide a rich and rewarding future for themselves, their customers, and their employees. When Ralph speaks, people sit up and listen, and for good reasons.

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L. Sampson

Mortgage refinancing can be a great decision for some people, but it can have a dark side if consumers don?t look before they leap. It?s a great idea for homeowners looking to lower interest rates, especially for people who took on adjustable rate mortgages during the ridiculously low rates a few years ago. Their once-low rates are climbing, and it?s time to lock in something steadier.

Using a refinance to roll all debt into one loan may seem like a fantastic way to streamline personal finances, but this can prove disastrous if there isn?t a serious change in spending behavior. Sure, the credit cards are all technically paid off, but the balance still exists and it?s attached to the roof over your head. Not being able to make payments on credit cards results in annoying phone calls from creditors, but not being able to make mortgage payments results in foreclosure. Even worse, if the temptation to use credit cards proves irresistible then a person can wind up right back where there started, with maxed out credit card debt and an even bigger mortgage payment.

Beware the cash-out refinance. It may seem like a brilliant idea to take a little extra cash out on home equity, but it is important to realize that home values can go up or down. If a home is worth $200k during a real estate boom it may eventually be worth something more like $150k when the bubble bursts, and this leads some people to discover they owe more than their home is worth. Woe, fleeting equity.

Don?t forget that a refinance is a whole new loan, and therefore that means all new paperwork and closing costs. Those closing fees that were so annoying in the original purchase will again rear their ugly head and although a reputable company will not charge junk fees, some fees are unavoidable. All financial decisions need to be approached with caution, but when dealing with a home a person needs to be doubly cautious. Equity should be thought of less as a cash-cow and more as an emergency safety net.

Go to http://www.refinancesmarts.com for more information on avoiding the dangers of a Mortgage Refinance Loan.

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Lance Williams

One might be wondering why some lenders turn down a mortgage application while some others might consider it fit for approval. The answer may well lie in the credit report and the credit score to be precise which plays a crucial role in loan sanctioning.

Credit history is an important factor affecting loan granting decisions by the lender or mortgagee. As part of the pre-approval process a detailed investigation is carried out into your financial history whereby the lender assesses your finances, your credit history and your investments. Your debt ratios are compared with the lender?s standard while deciding on the loan approval. Your level of debt or credit history is taken as a parameter for judging your ability to make the monthly repayments. The credit history as represented by your credit report plays a very crucial role since some lending institutions may even turn you down because of incompatibility with their lending standards. Too much debt and poor credit rating is a common reason cited for turning down a mortgage application.

At times your application may not be rejected altogether but you may have to settle for a loan amount lower than what you desired or expected. The other terms and conditions of the loan might also not have proved worthwhile for you. All these could have been avoided had you been a little more careful and vigilant while placing your documents about your personal finances as reflected by records of your earnings, monthly expenses and debts. Among these documents the credit report is of prime importance which reveals your credit score.

While considering your application the lender will also get to analyze your credit report. This provides all details about your financial history, payment records, total debts and bankruptcies (if any). This information is used to work out your credit score or FICO score (a rating of Fair Isaac and Company). This is a composite number-a numerical rating of your credit worthiness. These scores may range from 300-900. However, most people?s score fall between 600 and 700. Higher credit scores make you more appealing to the lender. Thus, you will be more likely to be offered better rates and loan terms.

A number of factors can affect the credit score. They can be broadly classified as:

a) The length of time you have had credit, outstanding credit, methods to repay this and how close you are to your credit limits.

b) Problems with credit which you may be having like late payments and bankruptcies. The number and frequencies of your delinquencies is to be considered.

It may be noted that almost 80% of credit reports contain errors. Getting for yourself a copy of the report beforehand will enable you to take steps for improving your score.You will be availed of the opportunity to review the report and rectify the score to quite an extent.

Some steps which can be taken in this regard are:

a) Finding out credit cards which are not needed anymore and closing the corresponding credit accounts.

b) Settling outstanding accounts, if any.

c) Paying out your bills, debt payments on time and in full and reduce your outstanding credit.

d) Verifying all listed account numbers and getting assured that they are yours.

It may be noted that minor credit problems or problems cropping up due to illnesses or temporary loss of income due to some unpredictable occurrence will restrict your chances of getting the aspired loan only from some high-cost lenders. Other lenders will hopefully be considerate enough to overlook such minor problems.

In spite of the best efforts there may still be certain negative indications in the report which could not be done away with. In such case you need to explain the situation to the lender. If at all it cannot be explained then, perhaps, you have to make greater down payments.

Getting to know how credit record affects loan prospects, proceed towards making improvements in your credit report. Your loan prospects will improve, no doubt. It will take you a long way towards securing your desired mortgage loan.

For getting all possible help in obtaining your suitable mortgage visit: http://www.mortgagefit.com/

Gain all round knowledge and obtain guidance regarding the mortgage application process from:

http://www.mortgagefit.com/discuss/forum-2.html

About The Author
Lance Williams is an accomplished writer specializing in mortgage and real estate and currently contributing for: http://www.mortgagefit.com/

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Anonymous

June 20, 2004 — Washington Home Mortgage Loan Company- Offering More Than Ten Types Of Credit Help. From Home Loans To Foreclosures

What more? Call on Washington Home Mortgage Loan Company’s online service to manage your credit problems. People of Washington can be much more relaxed when it comes to managing their bad credit. Of course!

Depend on Washington Mortgage Home Loan Company to enjoy a cool life.

Home Mortgage Loan Company of Washington offers services like home loans, home improvement loans, refinance, debt consolidation, foreclosures, etc.

From lowering your mortgage rates to lending a helping hand to organize your bad credit, leave it all to the Home Mortgage Loan Company of Washington to deal with. Whether cash for important expenses or consolidating your debt or lowering your mortgage bill payments, the Washington Home Mortgage Loan Company is always there, by your side.

Surf online for other Washington Home Mortgage Loan Company’s products and get going…

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Marcus Peterson

A mortgage is a loan that is paid back over a set period of time. Taking a mortgage therefore involves paying a certain amount as interest in addition to the principal borrowed. Mortgages can be broadly classified into two types based on the interest rates. These are fixed rate mortgages and adjustable rate mortgages. Most financiers currently offer a number of variations of these two basic types of mortgages.

The monthly interest payments remain unchanged through the whole term in fixed rate mortgages. Thus the borrower does not encounter the problem of having to make unexpected large payments. Fixed rate mortgages are usually taken for 15 or 30 years, although other terms are also possible.

Although the monthly payments may be lower, the borrower pays more as interest on long-term loans as opposed to shorter-term loans. A short term also means that the buyer gets full ownership of the property within a shorter period of time. The borrower can also choose a bi-weekly payment option rather than a monthly one. This reduces the period of the loan, and thus results in lower interest costs.

Various kinds of adjustable rate mortgages are available. In the case of a capped interest rate, the maximum interest rate to be paid is fixed. The lender cannot demand more than this, even if interest rates go up. In the event of interest rates falling, however, the borrower pays less.

Discounted rate mortgages have an initial predetermined period when the interest rates are reduced. At the end of this period they revert to the standard rate. First-time buyers may find this an attractive option. In variable rate mortgages the rate of interest changes with fluctuations in the bank rate.

Thus, a wide range of options is currently available for those who wish to apply for a mortgage.

Mortgage Interest Rates provides detailed information on Mortgage Interest Rates, Current Mortgage Interest Rates, Home Mortgage Interest Rates, Fixed Mortgage Interest Rates and more. Mortgage Interest Rates is affiliated with Exclusive Telemarketed Mortgage Leads.

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Judi Moore

Almost everyone knows about FHA mortgages. They are tailor-made for first time homebuyers and others with less than perfect credit or other financial issues. You don’t have to be low income or have bad credit to use FHA, but generally the loan limits prohibit high priced homes.

What you may not know about FHA is that there is a special loan program designed to provide the funds to buy or refinance your home PLUS additional funds to make repairs or improvements.

This FHA mortgage is called the 203K and the K is the operative part of the name. Not every lender participates in the rehab loan program, but the major national lenders do. If the loan officer you contact is unaware, then call the corporate office and ask them to direct you.

The FHA 203K loan program calls for an FHA inspector to go over the house, using the plans you gave him. Before you get to this inspection phase, you should be working with a general contractor who understands how to provide plans and specs for a project. Plans and specifications are standard in the contracting industry for anyone managing a project >$5000, which is the minimum rehab amount for this loan program.

The FHA inspector will decide if the project is feasible, depending on whether there is additional work required to bring the property up to code, and whether or not the property will appraise for enough to make the project “worth it”. FHA is willing to lend based on the after-rehab value and will even stretch that value a little in order to get houses brought up to code.

Once the lender is happy with the valuations, the plans and specs, and the inspector’s report, your loan file will be reviewed by an underwriter specially trained and certified in rehab loans. Your credit and finances do not have to be perfect to be approved, but the creditworthiness and qualifications are similar to a regular FHA loan.

One of the benefits of a 203K is that all costs can be added into the project. The fees, permits, closing costs, etc. are all added up and your downpayment on the purchase is calculated on the total. If you are refinancing instead of purchasing, the amounts are totaled the same way, but you might already have enough equity in the home to avoid coming up with any cash.

What’s next? Once approved, the loan closes and the rehab portion of the money is escrowed by the lender. The contractor submits requests for payment and each phase is inspected. As soon as the work passes the inspection for completion, the contractor is paid. You can not go back to the well for more money, so your initial plan must be a good one. A contingency fund is usually added in during the total project calculation.

This contingency fund can only be used to fund hidden repairs that were not evident during the initial workup. Any remaining funds in the contingency are used to pay down the mortgage at the end of the project.

The FHA 203K mortgage is not a “piece of cake”, but if you do not qualify for low cost money at the local home improvement equity loan bank, then it is very definately worth looking into.

Judi Moore authors Ask The Underwriter at 2rHouse.org and personally answers questions from readers about FHA mortgages and mortgage advice in general.

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Anonymous

Grand Rapids, MI July 18, 2004 — MBS Mortgage Company, LLC is pleased to announce the addition of John Racicot as a Senior Mortgage Specialist.

John Racicot has taken a position at MBS as a Senior Mortgage Specialist. John brings several years of local mortgage origination experience to MBS. Most recently, John was a Mortgage Loan Officer with Fifth Third Bank. In his position, John will be working with local Realtors and credit union members throughout the country.

“I am excited to have John as a part of the MBS team. His knowledge of the mortgage industry makes him a great asset, not only to our company, but to each of the consumers he is able to assist,” stated John Teweles, MBS President.

MBS Mortgage Company, LLC offers mortgage services to Credit Unions nationwide and is a division of Multi-Bank Services, Ltd. The company has specialized in meeting the needs of Credit Unions for institutional brokerage and mortgage services since 1985.

CONTACT: Chris Johnson
MBS Mortgage Company, LLC
Phone: 800-967-9043, extension 7301
Fax Number: 616-942-9713
Email address: cjohnson@mbscu.com
Website address: www.mbs-mortgage.com

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