User profile

Status:
Name: Grier Smith
Nickname: unionview
Member since: 2006-01-23 19:19:28
Website URL: http://www.paccrest.com/griers
About me: Pacific Crest Savings Bank Private Mortgage Banking 425.646.1334
 

User comments

Adding Some Sun to Rain City Guide

April 11th, 2006 at 3:22 pm

The title… “Adding Some Sun to Rain City Guide” gives me a ray of hope that you might be moving south, but we won’t lose you and the Guide.

All the best to you and your family Dustin!

Can Real Estate ever 'Bust'?

March 28th, 2006 at 4:32 pm

Tim-

Your question… “Should underwriting guidelines be tighter?” In my opinion, if mortgage brokers follow the rules of the guidelines that are in place, and take the time to understand borrowers’ objectives, then the loan guidelines are appropriate.

The key phrase is FOLLOW THE RULES! Mortgage Brokers who overstate income on “Stated” loan programs are NOT following the rules. Mortgage Brokers who lead borrowers into “Option ARMs” that will give borrowers a false sense of security with low initial payments are unethical, and NOT following the rules.

I just don’t have the disposition to play loose with the rules, and I’ve found that in the long run, it makes for happier borrowers, happier agents, and a better night’s sleep. :)

Your Credit Score has Changed

March 24th, 2006 at 1:58 pm

Denise,

I respectfully differ with you on the matter of the running a credit report for a new mortgage multiple times in “30-40 days of each other”.
I stand by the information that I provided in the earlier post. I would refer you to http://www.myfico.com and the “Credit Education” link.

If you have information that says… “it’s usually okay if they are all run within 30-40 day of each other”, I’d be interested in you directing that to me.

Your Credit Score has Changed

March 17th, 2006 at 10:34 am

Ardell,

Looking for a mortgage may cause multiple lenders to request your credit report, even though you’re only looking for one loan. To allow for this, the score counts multiple mortgage inquiries in any 14-day period as just one inquiry. So from the stand point of shopping for a mortgage, it’s not the quantity of inquires, it’s the time frame in which inquires occur. In addition, the score ignores all mortgage inquiries made in the 30 days prior to scoring.

When getting quotes, I like your idea of a “stated” mid score once the borrower knows that number. It minimizes the number of times the borrower gives out their social security number, and that’s important from an identity protection standpoint.

Your Credit Score has Changed

March 15th, 2006 at 2:09 pm

Dustin,

VantageScore is not a competitor of Fair Isaac. As I understand it, VantageScore is an “extension” or “evolution” of Fair Isaac. It is hoped that VantageScore will provide more commonality to the three scoring models currently in place.

FICO scores have different names at each of the credit reporting agencies. All of these scores, however, are developed using the same methods by Fair Isaac.

The three reporting bureaus and their scoring models:

Equifax has BEACON
Experian has Experian/Fair Isaac Risk Model
TransUnion has EMPIRICA

Buying Investment Property - Entity Protection

February 24th, 2006 at 10:03 am

The following is some information from the Company Corporation that address how a lender views an LLC when evaluating a loan.

“Will a mortgage company lend an LLC or corporation money? Is it easier for an LLC or a corporation to get a loan or mortgage?
If it otherwise qualifies, an LLC or corporation can obtain a loan from a mortgage company. Before applying for a loan or mortgage, it is important to determine the proposed amount of the loan, how the loan proceeds will used by the company, and the company’s expected source of the funds necessary to repay the loan. Typically, lenders, such as a mortgage company, will grant loans only if they are satisfied that the borrower has the ability and resources to repay the loan. Also, keep in mind that the real estate purchased by the LLC or corporation typically must be pledged as collateral for the loan.

Normally, the criteria that lenders use to evaluate a company’s loan application include a thorough credit check of the borrower (in this case, the company and any guarantors). A lender may also look at the company’s cash flow (past and projected) to determine if it will be able to repay the loan and also continue to operate its normal business operations. Lenders may also ask the company’s owners to personally guarantee the loan and/or provide additional collateral (other than the property owned by the company) that the lender can take if the company fails to repay the loan according to the required terms.

Typically, lenders will use the above criteria regardless of whether the loan applicant is an LLC or corporation. Stated another way, a company’s ability to obtain a loan generally will depend on the resources and financial condition of the company and its owners, and not the legal form of entity (i.e., LLC or corporation)”.

Buyer Tip - Successful Negotiation of the Home Inspection

February 16th, 2006 at 4:01 pm

In my humble opinion, that is really helpful advice! Thanks Ardell

Follow the Money...

February 1st, 2006 at 9:51 am

The most recent data I’ve found (and i know it’s old) regarding foreign investment in Mortgage Backed Securites is from a Goldman Sacks report dated Nov. 2005, siting 2003 statistics. In that report, it showed foreign investment made up only 5% of the total investment in MBS’s.

The appreciation is absolutly influenced by the cheap rates, but I’m just not sure how much foreign investment influence that. It’s a great question and I’m interested in knowing more.