Team Primary

Why All Realtors Need to Have a Process

michelle — Fri, 20 Jan 2012 17:10:32 +0000

Here is a great post written by our guest blogger, Thomas Scanlon with Borgida & Company, P.C. In this post you’ll find helpful tips on why it is necessary for Realtors to have a process, and how to go about the process in a successful way.

Do you have a process? Sure you do…..the only question is…is it followed?

Think though your process. Document it. Then follow it.

W. Edward Deming had this to say about process. “If you can’t describe what you are doing as a process, you do not know what you are doing.”

I don’t do this for a living but I’m guessing it might look something like this:

Listing

1) Meet with prospects to determine if there is a ‘fit’

2) Set expectations including estimated timelines and deliverables and address anticipated issues

3) Prepare market survey

4) Present findings

5) Obtain contract

6) Implement marketing plan

7) Provide continuous feedback

8) Etc.

Buying

1) Meet with prospects to determine if there is a ‘fit’

2) Set expectations and address anticipated issues

3) Qualify for mortgage

4) Draw up lists of :

Must haves
Want to haves

5) Etc.

Will some clients take you away from your process? You bet. Some will intentionally try…others will inadvertently do so.

The more your clients “go off the ranch” the:

More time you waste
Fewer deals you do
More your cash flow decreases

The best thing about your businesses…You Get To Choose Who You Do Business With…Choose Wisely!

Realtors….What’s Your Process?

For your mortgage needs, visit TeamPrimary.com or find us on facebook at www.Facebook.com/TeamPrimary!

Rising Credit Is the Norm Even at FHA

michelle — Wed, 04 Jan 2012 15:29:59 +0000

Here is an article found on NationalMortgageNews.com that I thought would be of interest to our readers. This article has great information about the changes in FHA credit score policies and what’s to come of it.

The Post:

Consumers are having a tough time qualifying for a mortgage these days, and even a federal program designed to provide financing for low- and moderate-income borrowers is winnowing out applicants with low credit scores.

Figures compiled by the Department of Housing and Urban Development show that the average credit score on an FHA-backed single-family loan is now at 700.

Just 3.3% of FHA-insured loans originated in the third quarter went to borrowers with 580-619 credit scores. Back in 2009, nearly 20% of FHA borrowers had credit scores in the 580-619 band.

Lenders have many reasons for tightening their underwriting and credit standards: they are under heightened scrutiny because of the housing bust, secondary market buyers are slamming them with buyback requests, and there are multiple investigations into their servicing and lending practices.

At the same time, FHA officials are concerned that too many borrowers are being denied home financing because of low credit scores.

One year ago, the National Community Reinvestment Coalition reported that lenders are refusing to consider borrowers with low credit scores for Federal Housing Administration loans.

HUD guidelines allow borrowers with a minimum credit score of 580 to qualify for low-downpayment FHA-insured loans if they meet the agency’s underwriting standards. But NCRC fair lending testers caught loan officers at nearly 40 banks saying they don’t make FHA loans to borrowers in the 580-640 credit score band. “The decision by some banks to not follow FHA’s policy is cutting off qualified borrowers from assessing credit,” John Taylor, president and chief executive of NCRC, said at the time.

NCRC challenged these banks to change their policies, which the activist group contends are often discriminatory and hurt working-class citizens who are trying to become homeowners.

Some of the 50 banks tested agreed to change their FHA credit score policies, according to NCRC spokesman Jesse Van Tol. But NCRC ended up filing complaints against 22 banks with HUD’s Office of Fair Housing.

That was one year ago and the Office of Fair Housing has not taken any action yet. “All the cases are still under investigation so we have no comment,” said HUD spokeswoman Shantae Goodloe.

Most of the 22 banks sell their FHA loans to aggregators and large banks that set the underwriting standards and credit score requirements. In other words, the 22 don’t have the latitude to set or change credit score policies, unless they decide to keep the loans on their balance sheets or become Ginnie Mae MBS issuers.

But the larger lenders that buy the FHA-insured loans are pursuing conservative policies in response to HUD enforcement actions and ongoing negotiations between state attorneys general and five of the biggest bank servicers.

“The government can’t have it both ways,” said FHA consultant Brian Chappelle. “You can’t be what the industry views as overzealous on enforcement and then expect lenders to expand their credit box and take on risks of new originations,” he said. Chappelle is a founder of Potomac Partners in Washington.

In response to NCRC’s findings, then-FHA commissioner David Stevens appealed to the major FHA-approved lenders to reconsider their policies.

In a December 2010 letter, Stevens asked lenders to look beyond credit scores and “consider all the factors that determine the borrower’s ability to repay the mortgage.”

He also noted that low credit scores could be caused by temporary setbacks and lenders should consider the reasons behind the credit score impairment. (Stevens is now the president and chief executive of the Mortgage Bankers Association.)

The appeal had some effect. In February, Quicken Loans lowered its minimum credit score to 580 from 620. “This change will open up credit to a significant group of people and allow them again to have access to purchase and refinance a loan,” said Quicken Loans chief economist Bob Walters.

NCRC has remained engaged and is in active negotiations with several large FHA lenders about their credit score policies, Van Tol said in an interview last month.

The NCRC spokesman noted that Chase Home Mortgage has changed its FHA credit score policies. A Chase spokesman told this publication that the changes were made in May, but declined to provide any details.

Even when the aggregators say they will consider borrowers with low credit scores, it doesn’t necessarily make it easy to originate the loans. They often charge risk adjustment fees when the credit score is below 640 or 620, which increases the cost of the loan and reduces the LO’s compensation unless the interest rate is pushed up.

And getting such loans approved and funded is usually a long, drawn-out affair that frustrates borrowers and loan officers alike.

Meanwhile, FHA has a monitoring system that flags lenders with high early default and claim rates. And it does not provide an incentive to make loans to borrowers with low credit scores.

Borrowers with a 580 to 620 credit score are four times more likely to default than borrowers with credit scores above 700.

The Neighborhood Watch system tracks default rates for each lender, comparing them to the average loan performance of all other lenders. If the average credit score is 700, lenders that make loans to borrowers with lower credit scores run the risk of ending up with a higher-than-average default and claim rates.

Read full article here

Happy New Year!

michelle — Fri, 30 Dec 2011 17:50:25 +0000

Best wishes for a happy new year from TeamPrimary!

Thank you for all your business, referrals and support throughout the year!

The Story of the Christmas Pickle

michelle — Fri, 23 Dec 2011 15:07:28 +0000

If you have never heard of the Christmas pickle, it may sound a bit strange. A warty, sour condiment that goes great with burgers doesn’t exactly seem like a Christmas icon. However, the Christmas pickle is not actually a real pickle. The Christmas pickle is a glass pickle Christmas ornament with a rich tradition.

Germany has been producing glass pickle ornaments since the nineteenth century. This German tradition transcended to America, as German glass ornament blowers began exporting their goods. In fact, the small Michigan community of Berrian Springs considers itself the “Christmas Pickle Capital of the World” and holds an annual Christmas Pickle Festival every December. This pickle-producing community treasures the heritage of the Christmas pickle, and nearly everyone in the small town continues the tradition.

There are many variations of the story of the Christmas pickle, and people argue about its true heritage. Most agree that it began in Germany. The most common story is that German families decorated their trees on Christmas Eve, while the children were sleeping, and the very last ornament placed on the tree was the pickle. The parents would hide the pickle in the fir branches amongst the other ornaments. On Christmas morning, the decorated Christmas tree would be revealed to the children for the first time. The first child to discover the covert pickle ornament would either receive an extra gift from St. Nicholas or get to be the first to open a present. This rewarded the child for being so observant, and taught children to take their time in appreciating every ornament, rather than skipping straight to the presents St. Nicholas had left.

Another version of the story is rooted in America during the Civil War. A soldier by the name of John Lower was captured and imprisoned in Georgia. Lower’s health began to deteriorate and starvation was taking its toll. When it seemed Lower was near death, he begged the prison guard for one item before he died: a pickle. The guard obliged the dying man’s request, and gave him a pickle. Miraculously, Lower continued living, and he attributed his life to the physical and mental strength the pickle empowered him with. After the war ended, Lower started hiding a pickle on his family’s Christmas tree to bring good luck to whoever found it on Christmas morning.

The Civil War version awards the Christmas pickle’s finder with luck and good fortune, while the German version grants the lucky finder an extra gift or a head start on opening presents. Whichever version you want to use, the finder of the pickle always gets a happy ending. It may be an unusual tradition, but that’s part of what makes it so fun. If you want to start a quirky tradition, pick up a Christmas pickle at a gift shop or Christmas store near you. Believe it or not, it’s not an unusual request.

Article Source: ezinearticles.com

Happy Holidays from your friends at Primary Residential Mortgage, Inc – TeamPrimary!

Connecticut Homeowners | Today’s Homes Burn Faster Than Ever

michelle — Thu, 01 Dec 2011 19:33:03 +0000

by: Stefanos Chen and AOL Real Estate

It may sound like a cliche to trot out fire safety tips before the holiday season, but if there’s one statistic that bears repeating, it’s this: Even with adequate smoke alarms, a house fire today can become uncontrollable in less than three minutes.

That’s down from an average 17 minutes in 1975 — a whopping 82 percent difference.

And the reason for the drastic change, according to a report by the National Institute of Standards and Technology, isn’t just the type of house you live in, but what you put inside.

“It’s not how old the home is, it’s the furnishings,” Jack Watts, Director of the Fire Safety Institute, told AOL Real Estate.

A spokesperson for the National Association of State Fire Marshals (NASFM) said that the worst culprit in home fires is upholstered furniture, because it often contains highly flammable polyurethane foam. These all-too-common materials provide the fuel for what fire experts call the flashover — the point at which everything in the room simultaneously bursts into flames. It doesn’t help that many of today’s homes are built with more open floor plans and modern building materials like wallboard that can lead to faster fires, according to the Wichita Eagle.

The numbers show an alarming trend. In 1977, the first year when data was available, there were 750,000 residential fires, according to the National Fire Protection Association. In 2010, there were roughly half that many, thanks in large part to widespread use of smoke detectors. But the incredible speed with which home fires can spread in today’s homes represents a major step backward in fire safety.

The Hot Topic of Sprinklers

The next step in home fire safety, a spokesperson for the NASFM said, is to require fire sprinklers in new residential properties. Home builders bristle at the idea due to the high cost of installation. The national average cost to install sprinklers is $1.60 per square foot, according to the Wichita Eagle. In a 2,000-square-foot home, that comes out to about $3,200.

Another barrier is public opinion. As Yahoo! reported last year, when given the choice between granite countertops and fire sprinklers, respondents overwhelmingly chose the countertops, according to the National Association of Home Builders.

(To find out if your state requires fire sprinklers in new construction, check out the Fire Sprinkler Initiative website.)

Worse still, there are only voluntary flammability regulations for upholstered furniture. Implementing a nationwide standard would go a long way in protecting consumers from purchasing dangerously flammable furnishings, the NASFM spokesperson said.

Regardless of what state legislators decide, though, it all comes down to vigilance, says Fire Safety Institute Director Watts.

If you’ll be using a live Christmas tree this holiday season, make sure to water it regularly and keep an eye on any decorative lighting and candles. And, as always, make sure your house is equipped with working smoke and carbon monoxide detectors. For a terrifying glimpse at a Christmas tree “flashover,” watch the video above.

Primary Residential Mortgage, Inc - TeamPrimary is helping to collect raffle prizes for an upcoming event in honor of Rob aka ”BBQ Rob” who recently lost his home to an explosion in Coventry, CT. If you’d like more information about the event or how you can help by donating, please contact cdionne@primeres.com or view the event flyer here. We really appreciate all your support!

Real Estate Agents: Add your websites to your LinkedIn Profile

michelle — Mon, 07 Nov 2011 15:29:27 +0000

As you know, you should always try to link to your Facebook pages, LinkedIn, Twitter, and other websites as much as you can. This helps more people to connect with you and it also is great for SEO (Search Engine Optimization).

Here are the steps to take to add your websites to your LinkedIn Profile:

Log onto you LinkedIn account
Next, under the Profile Tab at the top left, click on Edit Profile
Then scroll down a little until you see Websites and click on Edit
This will bring up another page and you will see Websites and room to put three different websites.
You want to click on the drop down and click on OTHER
Then don’t just type in Facebook Page or Company Website. Actually type in the link to the website. So you might put www.FaceBook.com/TeamPrimaryand then in the next box, put the same thing. This makes it so your website shows on your profile and people can also actually click it and it will bring them right to your facebook page, etc.

LinkedIn will let you add three websites, so put in as many as you can. Some examples might be your facebook page, your twitter, your youtube account and your company website. If you don’t have your own website, go to your company website and get yourself to the page where your personal profile is listed and copy the URL at the top of the page and copy and paste it to your LinkedIn!

For your mortgage needs, visit Primary Residential Mortgage, Inc – TeamPrimary!

The Hartford Courant & FOX CT Top Workplaces 2011

michelle — Fri, 23 Sep 2011 14:02:40 +0000

A Very Special Thank You to our Team of Employees!

On Sunday, September 25th, The Hartford Courant is publishing “The Hartford Courant and FOXCT Top Workplaces 2011” – a list of the best places to work in the Hartford region. I am delighted to let you know that Primary Residential Mortgage, Inc. – Team Primary has been named to the list. On Sunday, you will be able to see us named in a special section of The Hartford Courant and online at www.courant.com.

The evaluation for the Top Workplaces program is based upon feedback from an employee survey that many of you completed a few months ago. We are honored to be included. Particularly as the judges were you, our employees!

We were also recognized with a special award for being named the organization with standout scores in Communication among all the companies surveyed out of 793 employers invited to the survey.

Thank you, to each and every one on our team! You have our commitment to continually find ways to improve and make our organization even better.

Connecticut Declared Disaster Area

michelle — Wed, 07 Sep 2011 14:56:16 +0000

In the aftermath of Hurricane Irene the Federal Government has declared that all Counties of Connecticut are Disaster areas. So what does that mean to prospective buyers and current homeowners?

If you are the process of applying for a mortgage this can add time to your loan process. Your lender will be required to have a re-inspection done on the property typically by the appraiser to verify the home was not damaged. This could easily add 2 to 5 days to your loan process as appraisers throughout the state are now handling their current workload plus the re-inspections. If your closing is delayed, make sure to contact your loan officer to check if this will in any way affect your rate lock. You also want to make sure contractually that all agents and the sellers are aware of any delays to the closing as a result of the Hurricane.

If you are a current homeowner in Connecticut and your home was damaged you can apply for disaster assistance with FEMA. Disaster assistance is money or direct assistance for an individual, family or business in an area whose property has been damaged or destroyed and whose losses are not covered by insurance.

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State Legislators Reveal Their Favorite Spots In Connecticut

michelle — Wed, 31 Aug 2011 15:58:54 +0000

Now with Labor Day approaching, and people seeking to soak up as much summer fun as possible, Capitol DisPatch asked state legislators to weigh in about their favorite places. Here, in alphabetical order:

State Rep. James Albis, a Democrat representing East Haven in the 99^th House: “Having grown up in East Haven I love the beach. I think Connecticut has some of the greatest beaches.” Albis also loves golf.

State Sen. Toni Boucher, a Republican representing Bethel, Redding, Ridgefield, New Canaan, Weston, Westport and Wilton in the 26^th Senate District: Sitting on stone walls at Weir farm. “It overlooks so much beauty, it’s picturesque, and you can see why artists came to paint here.” The beaches: Sherwood Island, Compo Beach and Calf Pasture Beach. The drives: especially along Route 53 along the Aspetuck Reservoir and along Route 58 to Putnam Park. “We have some of most beautiful scenery,” Boucher said.

State Rep. Larry Cafero, a Republican representing Norwalk in the 142^nd House District: Hands down – Bayley Beach in Rowayton. “On a beautiful day with boats and glistening water it’s like you’re on vacation,” Cafero said.

State Rep. Paul Davis, a Republican representing Milford, Orange and West Haven in the 117^th House District: Hammonasset Beach State Park in Madison; Sleeping Giant State Park in Hamden and the aquariums in Norwalk and Mystic. “I like the science aspect of it,” Davis said.

State Rep. Kim Fawcett, a Democrat representing Fairfield and Westport in the 133^rd House District: Jennings Beach where “a favorite thing to do is walk on the beach in the evening around 6pm or 7pm.”

State Rep. John Frey, a Republican representing Ridgefield in the 111^th House District: Frey said he has a tough time choosing with so many great places from Beardsley Zoo to the Stamford Nature Center. But for Frey, his heart belongs to Ridgefield: “We’re spoiled here,” Frey said listing Books on the Common, Deborah Ann’s and the Ridgefield Playhouse as great places.

State Rep. John Hetherington, a Republican representing New Canaan in the 125^th House District: He loves Norwalk’s Maritime Aquarium.

State Sen. John Kissel a Republican representing East Granby, Enfield, Granby, Somers, Suffield, Windsor and Windsor Locks in the 7^th Senate District: Kissel has a penchant for the more pastoral parts of the state. He loves the ride to Storrs and likes the Mark Twain House and the Connecticut Science Center in Hartford too.

State Rep. Gail Lavielle, a Republican representing Norwalk and Wilton in the 143^rd House District: Calf Pasture Beach in Norwalk is a favorite spot and she also loves taking a drive to and through Litchfield County.

State Sen. Carlo Leone, a Democrat representing Stamford and Darien in the 27^th Senate Distric:. “I’m glad they finally increased the budget from $1 to a nominal budget. Apparently for every $1 spend on tourism get $3 back, so we should have done this a long time ago,” Leone said. In his district: Cove Island Park is “a little gem for us.” Leone also likes the Bartlett Arboretum, Palace Theater, Rich Forum, Stepping Stones Museum and Maritime Aquarium.

State Sen. Edward Meyer, a Democrat representing Branford, Durham, Guilford, Killingworth, Madison and North Branford in the 12^th Senate District: Meyer likes the shoreline and the farms, from Hammonasset Beach State Park to paddling a canoe to Faulkner Island that lies off the coast of Guilford. Loves the Durham State Fair and the growing art community of Killingworth. “Within Connecticut we find lots of fun choices,” Meyer said.

State Rep. Kim Rose, a Democrat representing Milford in the 188^th House District. Rose enjoys taking her camper to East Haddam on the weekends. She also “always loves Gillette Castle and local theater.”

State Rep. John Shaban, a Republican representing Easton, Redding and Weston in the 135^th House Distric: Shaban likes hiking in Devil’s Den and sailing on Long Island Sound, sometimes to the Thimble Islands off the coast of Branford.

State Rep. Jonathan Steinberg, a Democrat representing Westport in the 136^th House District: “You don’t have to hop on a plane to go to some exotic location,” Steinberg said. He likes Sherwood Island State Park, which he said is underused by Westport residents. He calls Compo Beach a true blessing. And Steinberg has a “warm spot” for Lake Waramaug, it’s where he proposed to his wife. Steinberg said he wants to further explore the northeast part of the state because he’s amazed and impressed by how diverse the state is in terms of geology and topography.

State Rep. Terrie Wood, a Republican representing Norwalk in the 141^st House District: Kayaking at Downunder Kayaking in Rowayton right on Five Mile River. They have classes of all kinds to include the new SUP (Stand up Paddling). She also enjoys dining by the water at Sails, Rowayton Market or The Restaurant at Rowayton Seafood, the beaches of Hammonsett State Park in Madison, and Lyman Orchards in Middlefield.

State Rep. Diana Urban, a Democrat representing North Stonington and Stonington in the 43^rd Senate District: Urban loves the Mystic Aquarium where she said she can sit for hours watching the sting rays and the new jellyfish exhibit.

Where’s your favorite place to get away without getting too far from home?

Article courtesy of Stonington.Patch.com

Are you or someone you know looking to purchase or refinance a home in connecticut? For your mortgage needs, visit Primary Residential Mortgage, Inc – TeamPrimary or find us on Facebook at www.Facebook.com/TeamPrimary! We love your refferals!

What’s In Your Mortgage Payment?

michelle — Tue, 30 Aug 2011 15:09:35 +0000

If you have never owned a home and had a mortgage, it can be a little confusing to see what makes up your monthly mortgage payment. Every lender has their own methods when it comes to collecting your monthly mortgage payment, but generally speaking the breakdown of a mortgage payment is pretty standard.

The first component of your mortgage payment is often referred to as P/I or Principal and Interest. The principal and interest component is simple to calculate and even the simplest of mortgage calculators will let you input the loan amount, term of the loan and interest rate and calculate the P/I payment over the term of the loan.

Generally speaking with most mortgage loans, the first payments you make will be mostly interest and the last few payments you make will be mostly principal.

The second component of your mortgage payment is often referred to as T or Taxes. Your property taxes are assessed by the county you live in and are typically collected as part of your mortgage payment by your lender who then pays your taxes on your behalf when they are due (typically twice each year). In some areas of the country, property taxes are high and in some they are low — but generally speaking your property taxes are paid into an escrow account at your lender and held there until paid.

The third component of your mortgage payment is I or Insurance. Insurance refers to your homeowners insurance. Like your taxes, it is common for your lender to have an escrow account set up for you for your insurance premiums. You pay 1/12th of the annual premium each month as part of your mortgage payment and your lender then pays your insurance company once each year.

Depending on how much money you put down as a down payment and what type of loan program you have, you may or may not have M/I or Mortgage Insurance. Mortgage insurance is different than Insurance. Mortgage insurance is paid by the borrower to the lender and the lender pays that to private MI companies who agree to pay the lender in the event the borrower defaults.

Mortgage Payment Breakdown: A Simple Example

Here is a simple example mortgage payment breakdown for a $200,000 loan at a 5% interest rate with a $1,200 annual property tax bill and a $1,200 annual insurance policy premium to insure the home with no mortgage insurance.

Principal / Interest = $1,074
Taxes = $100
Insurance = $100
Total PITI Payment = $1,274

What makes up your monthly mortgage payment?

P. I. T. I. and sometimes MI.

Courtesy of Zillow.com

For your mortgage needs, visit Primary Residential Mortgage, Inc – TeamPrimary or find us on Facebook at www.Facebook.com/TeamPrimary!