How To Create New Relationships with Industry Professionals

I am a Loan Toolbox member (http://www.loantoolbox.com/) and I listened to a conference call today that gave some pointers on some ways to build new relationships with new industry professionals.  These tips will help you decide who you really want to do business with and who you might want to weed out.

1.     First, call 5 people from your database whether they are past clients, other industry pros, Realtors, loan officers, etc...

•          Call to check in with them, see how things are going and see what's new

•          Ask them for help in building your business, people do like to help each other

•          Ask them for some people they may have worked with when buying a home such as Realtors, Loan officers, title agents, etc...what accountant do they use and why...do they have a financial planner...etc..

•          Now you have a list of a few people you can contact

2.     Before you contact the referrals, do some research about them online...Google their names, look for them on Facebook, etc...check out their website...get to know a little about them.

3.     Next, send them a Handwritten Note to make a personal connection.  Use a handwritten note as they may at least look at it...even if they toss it out...your name has crossed their mind even if only momentarily which is important

•          In the note you want a few specific things...

•          Start note with Dear (insert name),

•          Introduce yourself in the note, tell them you have heard great things about them from some people lately, and mention that you HOPE to meet then soon.

•          Pop in a business card and send the note

4.     Next step is to CALL and leave a Voice mail a few days after the Note was sent...very important to leave a voice mail and not to get them on the phone at this point.  If you get them on the phone right away, then they may feel like you are just being a push sales person.  Leaving the voice mail will not put them on the defense. In the voice mail you want a few specific things mentioned...

•          Mention that you Hope they got the note you sent them the other day

•          Mention again that you heard some great things about them lately

•          ..."based on what I've heard...I THINK there may be a fit for us to CONSIDER doing some business together...BUT, I am not sure...I would like to learn some more about what you do in your business...I will call you back to schedule a quick 20 MINUTE appointment.  If there is not a fit between us then no harm and no foul. But I think there may be a fit.

5.     Next step you send them a cheap book you have read that has helped you in your business...maybe motivational...sales techniques...using social media...etc...

•          In the inside cover of the book, hand write a quick note and sign it.

At this point, you have sent them a handwritten note, left them a voice mail and sent them a little gift to help their business...if these steps are followed there is approx. a 95% success rate for getting a 20 Minute appointment.  Tomorrow I will blog about what to do with the appointment once you get it.  There are a few things that will help you prepare for the appointment the proper way.

Keep your eyes open for The Vaught Team's Tips that will be coming throughout the year.

Justin Vaught       Licensed Loan Officer (NMLS #260072)          The Vaught Team @ Peoples Mortgage Co.
www.facebook.com/VaughtTeam       www.Twitter.com/VaughtTeam         http://www.azfhamortgage.com/

3% Down Conventional Loan Program is Back in AZ!!!

We have great news to announce!!  We are now available to offer a 3% down conventional home loan to buy a home in Arizona.  We can offer this because of our "Platinum" status with a major mortgage insurance company.  Previously, 5% minimum down payment was required to purchase a home with traditional mortgage insurance.  This program will help those buyers who may have a FHA loan on a home they now have as a rental home.  The reason why this would help them is because it will give the buyer a low down payment option.  FHA will most likely not be allowed because they have a FHA loan already, but a conventional loan can be used.  This would only work for a primary residence purchase but could be used for most residential property types.  There will be higher credit scores required and the debt ratios will be conservative due to having to obtain traditional mortgage insurance.  It will make sense for the right buyer who wants to keep their cash reserves in their pocket as opposed to putting the money into the down payment.  One thing is for sure, there are not many lenders who can offer this program at this time.  Send me a message if you would like more details.

Justin Vaught - AZ Licensed Loan Officer - NMLS # 260072
www.AZFHAMortgage.com - www.facebook.com/VaughtTeam - www.twitter.com/VaughtTeam

Consistency in Real Estate is Key to Success!

I am sitting in my kitchen at approx. 10 pm after a late dinner and a long day at the office.  I signed in to Active Rain because I wanted to post a blog all day but hadn't gotten to it until now.  I started thinking about the fact that it is late and I could always write a post tomorrow instead...the thoughts that go through our minds all the time on our way to procrastination...then I said this is an easy article to write!  If I did not do the post today, I might put if off another day, and then another day...and before you know it you are not even using these amazing tools.  CONSISTENCY is the KEY to anything in life, especially in Real Estate and the Lending business.  Our goals for 2011 are to bring in consistent business and increase our numbers from last year...our numbers were good but we are always striving for more business and a better way to obtain it.  The only way we get better results is to continue to put in the work on a consistent basis.  When it comes to blogging, it is very important to stay consistent and relevant to the market we are in.  Our team has been very consistent with our blogging and we will continue to deliver industry news and tips on how to create more business.  My message for everyone tonight is to BE CONSISTENT!  Do what you say you are going to do and the benefits will come from the hard work and dedication.

Justin Vaught - NMLS # 260072 - Licensed Loan Originator @ Sun American Mortgage Co.

www.AZFHAMortgage.com - www.facebook.com/VaughtTeam - www.twitter.com/VaughtTeam

Chandler, AZ FHA Lender Info

Hello everyone,

We at The Vaught Team @ Sun American Mortgage Co. want you to know what a great option the FHA loan is in the Chandler, AZ area.  The FHA loan will give a borrower an option to put down as little as 3.5% of the purchase price; it has very flexible payment ratio guidelines; it can be used to buy a new primary even if you already own another home (as long as you don't have another FHA loan); You can finance up to $346,350.00 in Chandler with FHA financing; and is a very safe and secure option for a home loan.

The Chandler, AZ FHA Loan is a great way to keep your assets in your pocket; especially in these uncertain financial times; and still be able to obtain the home of your dreams.  Another great thing is that investors are only requiring a minimum credit score of 640 to obtain a FHA loan; so if you have had some credit blemishes and they were isolated financial hardships then you should have no issue getting a FHA loan.

At Sun American Mortgage, we have our own FHA underwriters in house so we make the decisions and fund all of our loans; unlike a broker who has to let another bank underwrite their loans.  Because we underwrite in house and fund with our own money, it extremely speeds up the transaction.  We are closing FHA purchase loans in about 3 weeks time; unlike major banks out there who are taking 60 days plus to close loans in most cases.  Our bank is the perfect size to work with to keep the process personalized and keep the costs very low.

Contact us today if you are interested in more info on the Chandler, AZ FHA Home Loan.

Justin Vaught - Licensed Loan officer and Manager of The Vaught Team @ Sun American Mortgage Co. - Cell: 480-299-8565 - www.facebook.com/VaughtTeam - www.twitter.com/VaughtTeam - www.AZFHAMortgage.com
NMLS # 260072

Technology in Lending and Real Estate

I read an article today (http://www.mortech-llc.com/) that stated mortgage banks were going to spend more on technology this year than many years before.  Technology in the mortgage world was on hold as everyone was making money with the systems they had in previous markets.  Now lenders have to be more creative, get deals closed faster than the other banks, have huge customer database management systems, follow up contact management systems, etc...

My team and I at Sun American Mortgage Co. were sitting down discussing how we can gain more realtor relationships this year.  We know we work with a great organization, who has a long and healthy history of over 26 years in business, an A+ Better Business Rating, and can close loans much faster than most lenders these days.  We thought we had something great just because we work with a class act organization...but when we tried to talk to some new realtor relationships...the old we work for a good company speech did not do anything for us.

Instead of trying to continue selling the same "good company" routine; our team started researching new technology based tools to help us increase our realtor partner businesses.  We have been spending money on some fantastic systems and tools that will no doubt help us attract and keep new realtor relationships.  We built a new and better website at wwww.AZFHAMortgage.com; we started using our Loan Toolbox program more effectively, we became a sponsor for Free VisualShows.com accounts to help realtors showcase listings, we offer Text Message Sign Riders to listing agents, we use Facebook, Twitter and of course Active Rain.  We have built a full arsenal of tools to help attract new realtor partner...AND...we are a great company who closes loans fast!  This is a much easier sell now that we can offer soooo many great technology tools to our partners.

I can definitely see how much more we have spent on technology and I know many companies out there doing similar things to stay relevant.  I think today we are riding a great wave in the mortgage industry and it is only going to get better with the technology that is and will be available.

Justin Vaught - Licensed Loan officer and Manager of The Vaught Team @ Sun American Mortgage Co. - Cell: 480-299-8565 - www.facebook.com/VaughtTeam - www.twitter.com/VaughtTeam - www.AZFHAMortgage.com

NMLS # 260072

Credit Repair Info - What If Simulator

Never underestimate the power of a "What If Simulator"!  We have had several files lately that were just under the minimum credit guidelines; some lenders stop when they don't have the FICO scores needed.  We take it one step further for these clients.  We order a What If Simulator through our credit reporting companies.  The What If Simulator allows us to set up hypothetical scenarios such as if they pay off a certain amount of a debt, or pay off a car, etc...what potential score increase they may have.  It is a very useful tool to have available.  I ordered a What If Simulator for a client today, and with her paying down one card about $150, and a 2nd credit card about $80...she has a potential score change of 39 points!  She only needed about 22 points to get to the minimum required scores so we just helped a client who other companies flat out turned down!  She was sooooo excited and she is taking care of the two cards immediately.  We will then order a Rapid Re-score which will take approx. 72 hours to process and then we will be able to update her credit with new scores.  As you can imagine she was more than happy to pay the $230 total that was needed and now she is eligible for a home loan.  If you don't have a lender who has this capability, find one because you need this tool available for your clients. 

Possible Lead Based Paint and FHA Appraisals

I am working on 3 files that all have FHA financing secured and each of them has issues with the appraisals.  One of the homes that is being financed has peeling paint on the trim, the fascia, and the underside of the roof (eaves).  This is an issue because the home was build in 1974 and any home built prior to 1978 is supposedly subject to lead based paint that was used back then.  The appraiser and FHA require that the peeling paint be stripped off and then re-painted; this without truly knowing if there is even lead based paint.  You wonder why they don't perform a lead based paint test to determine if it is even something that needs to be addressed.  On this particular file it has caused a delay as the buyer went to the home and attempted to help himself...that did not go very far.  He was instructed to view the pictures in the appraisal and address the areas in question...the client happened to only repair/re-paint the areas specifically in the photos of the appraisal and not all the areas with peeling paint.  The appraiser went back to the property and of course called us to report that the repair work was incomplete; each trip to the property costs money of course.  I had my loan processor contact the appraiser to find out exactly what he wanted done (loan officers can't contact appraisers anymore with new HVCC rules).  He told me the areas that specifically needed to be addressed; I then delivered that info again to the buyer.  At this point, the listing agent finally stepped in and got a bid for the work to be done by a professional.  The buyer was still slightly confused as to what exactly had to be done so I had to visit the property, talk with the painting crew, etc...Just an FYI that this type of thing could hold up a transaction.  Realtors, when you are looking at the properties for your clients, just keep the peeling paint issue in the back of your mind so it can be addressed up front with the seller.  In this particular case, it would not have mattered that it was identified or not up front because the home was a lender owned property and was being offered "As-Is".  I tell you this information and the whole story for one reason...I want you to be Successful and we can learn a great deal from other's stories! 

USDA and VA have NO 90 Day Flipping Rule!

Hello everyone
,
The FHA 90 day property flipping rule is coming to an end as of February 1, 2011.  If you have a file with a lender that was subject to the FHA 90 day flipping rule; I would suggest contacting them for advice on what can be done to assure a successful transaction.  The good news is that the FHA is the only government loan option that does have this flipping rule.

The USDA and VA loan options both have no flipping rule and both offer 100% financing options.  The USDA loan is only available in the Rural areas but in Arizona there are plenty of great areas that the USDA loan will work in such as; Queen Creek, San Tan Valley, Maricopa, Anthem, and Buckeye.  There are income limits that apply to this loan program but they are reasonable and it is intended to enhance the Rural areas and help moderate income families.

The VA loan is available for Veterans of the Armed Forces as well as some active duty service members.  VA loans can be obtained from Veterans who served active duty and reservists.  This is a great loan program for the great people that have served our country and offers $0 down option!  The VA loan can be used anywhere in the country and is a very safe and secure option with NO mortgage insurance.
If you would like anymore information on these loan programs please contact us today at www.AZFHAMortgage.com; www.facebook.com/TeamVaught; or follow me on Twitter at www.twitter.com/VaughtTeam.

The days of the 4% 30 Yr. fixed Mortgage rates seem to be gone forever!

I read an article on CNNMoney.com today that was talking about all of the reasons why the 4% rates are a thing of the past...here is the article link: http://money.cnn.com/2010/12/30/real_estate/mortgage_rate_spurt/index.htm.  What does this mean for the housing market?  The article actually says that it will create urgency in the markets when the rates initially increase as they have over the last 45 days or so due to buyers getting off the fence and buying homes NOW!  I do agree with that initial assesment but I also believe rates will stay around where they are now as if they rise too much less people will buy...the old rent vs. buy scenario will come into play for some markets when rates rise to a certain level.  It could turn out that it is more affordable to rent then buy at that point.  All this means is get off the couch and call your realtor and mortgage professional ASAP.  You don't want to miss out on the low rates and low prices while they are still here together.