Indianapolis Real Estate Blog and Real Estate Investments Resource

Good loan officers are hard to find. You can get all the referrals you can handle, but they don’t count until the “rubber meets the road.” Or your lock registration reaches the lock desk.

Face it, you won’t really know how good your loan officer is until you’re stuck with them. For better or for worse. But do you want to know a secret?

The best loan experience out there may not rest solely on your loan officer. It might very well be reliant on someone you’ve never heard of … your loan processor.

The loan processor is the single most important support person a loan officer has, and they can carry a lot of weight in a mortgage company. It’s the loan processor that does all the heavy lifting during your loan approval. Your loan officer is out getting more loans or taking your Realtor to lunch or “whatever.”

Great loan officers can’t be great loan officers without great processors. In fact, I wager that a prerequisite of being a great loan officer is in fact having a great processor. Just as a loan officer can completely screw up a mortgage deal, so too can a bad loan processor kill a loan.

And having been one of those “great” loan officers, I can attest to that. Because I brought in lots of deals, I could also choose who could process those deals. I would choose the smartest, most efficient processor in the building and make them “mine.”

In fact, over the past 15 years in mortgage lending, I had a total of 4 processors.

Why would I want the best processor? The processor is the one I would rely on to take care of problems when I was out making calls. Great processors know how to take care of day to day problems that the loan officers or sometimes even the borrowers themselves never even know about.

Great processors can take a loan application from start to finish and make it look easy. But trust me, being a loan processor is difficult. It can be stressful. Processors take all the various elements of loan approval, put them together, in order and at the right time to make sure everything is done when and how it’s supposed to be done.

They can get yelled at by people they’ll never meet over things that are completely out of their hands.

It’s the loan processor that deals directly with attorneys, insurance agents, appraisers, inspectors, underwriters, closers, title companies, closers and, oh yeah, the borrowers and the loan officer.

The way to find the best loan officer is to find the best loan processor. So how can you do that? Do you call all the mortgage companies and ask to speak with all their loan processors? No, but you can come close.

When talking to a potential loan officer about their rates, fees and programs, you should also be asking about that loan officer’s experience in the industry. How long have you been in the business? Do you have any referrals from people I might know that can attest to your experience? Good questions to ask.

But ask one more. How long have you been working with your loan processor and how long has he or she been processing mortgage loans?

If your potential loan processor is brand new or the loan officer doesn’t have a choice on which processor to use, it’s more likely you’ll have a bumpy experience.

If however, your loan officer has not only been in the business for ten years but has also worked with a particular loan processor for a long, long time, then you’ve found your ticket. Your loan officer and processor work as a team. The longer they’ve been working together, the better off you’ll be.

I’ll bet you didn’t know that, did you?

Related Articles:

Written by David Reed
April 14, 2006 

There’s nothing like a short jaunt to the beach (or mountains) to release your stress, get your first seasonal sunburn and start thinking about buying a piece of vacation rental property.

Come on, we’ve all done it. Just when the sand is about completely shaken out of all the towels and swimsuits, you start drooling over the prospects of owning your own home on or near the water.

How difficult could it be? If it’s a rather affordable area, then it’s going to take care of itself as far as monthly payments are concerned, right? Twelve prime rental weeks from Memorial Day to Labor Day is just the right amount of time and income to cover the 12 months of the year, right? Keep in mind that a vacation rental property has some unique expenses that you’ll not face in your primary residence.

Technorati Tags: listings, real, houses, residential, buying

As first reported here in January (Realty Times, Jan. 12, 2006), the Department of Housing and Urban Development is asking Congress to increase and simplify loan amount limits placed on Federal Housing Administration-insured mortgages.

Under HUD’s far-reaching proposal to modernize the FHA and turn it back into the viable option it once was for home buyers, the ceiling in high-cost areas would rise from 87 to 100 percent of the so-called conforming loan limit.

In addition, the FHA “floor,” which is the maximum loan amount in lower-cost areas, would be upped from 48 to 65 percent of the conforming limit. And in areas that fall between the two extremes, FHA’s loan limit would rise to 100 percent of the local median home price.

The conforming loan limit is key because it is the Congressionally-placed ceiling on loans that can be purchased and securitized by Fannie Mae and Freddie Mac, the two secondary market institutions which keep the money flowing to housing by buying mortgages from local lenders and re-selling them to investors from around the world.

Because Fannie and Freddie now “touch” about one out of every two home loans in one way or another, their rules and limits set the tone for the entire market.

The FHA used to do that. In fact, when it was created during the Depression to stimulate the housing sector, ownership wasn’t a reality for most people. Indeed, prior to the National Housing Act of 1934, which established the FHA insurance program to broaden home ownership, protect lending institutions and stimulate the building industry, 30-year mortgages did not exist.

Back then, as difficult as it may be to imagine, mortgage amounts did not exceed 50 percent of the home’s value and did not extend past the fifth year. At the end of a five-year period, mortgages had to be repaid or renegotiated.

The FHA has helped more than 33 million families become home owners over the years. But recently, it has lost much of its relevance. And now, says HUD, it needs to be given a shot in the arm.

The proposal to raise the loan limits is part of a number of changes HUD wants to make and were described earlier by my colleague Ken Harney (Realty Times, Feb. 20, 2006). And it was called “crucial” by FHA Commissioner Brian Montgomery is his recent testimony before a House subcommittee.

“In many areas of the country, the existing FHA limits are lower than the cost of new construction, eliminating FHA financing as an option for buyers of new homes in those markets,” Montgomery told the panel. “FHA has simply been priced out of the market in other areas, such as California, where FHA insured only about 5,000 home mortgages in all of 2005.

In California, according to A.J. Pickel III, a past president of the National Association of Mortgage Brokers, whose members originate nearly two out of every five FHA-insured loans, the median price house is at or above the current FHA maximum in 29 of the state’s 58 counties. Together, the 29 jurisdictions represent 85 percent of California’s population.

But the problem isn’t just in California, said Pickel, who is president of Lender One Financial Corp. in Lenexa, Kan. It exists everywhere houses are priced way above the area median.

In Maryland, my home state, the median is above the FHA max in five of 24 counties, while seven others are within $2,000 of it. And buyers in several counties in Pennsylvania, Connecticut, New York and New Jersey are in the same boat.

FHA Commissioner Montgomery said higher loan limits are particularly important to people who want to purchase newly constructed houses. In many parts of the country, he pointed out in his testimony, the current FHA limits are lower than the cost of new construction, which means new home buyers are all but precluded from using FHA financing.

Gerald Howard, executive vice president of the National Association of Home Builders, says that because the “artificially low” tend to limit choice, buyers who can qualify for only FHA financing are often restricted to the lowest echelon of available houses.

“We do not believe that Congress created the FHA in 1934 with the intent of constraining borrowers to homes priced at the lower end of the market,” he says.

The Mortgage Bankers Association, whose members fund 90 percent of all FHA-backed loans, also supports higher loan limits. The proposal, says MBA Chairwoman Regina Lowrie, strikes a “good balance” between allowing the agency to serve a greater number of borrowers without exceeding its mission or taking on excessive risk.

Related Articles:

Written by Lew Sichelman
April 19, 2006 

Technorati Tags: listings, real, homes, houses, buying, selling

McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey^SM (PMMS^SM) in which the 30-year fixed-rate mortgage (FRM) averaged 6.53 percent, with an average 0.6 point, for the week ending April 20, 2006, up from last week’s average of 6.49 percent. Last year at this time, the 30-year FRM averaged 5.80 percent. The 30-year FRM has not been higher since the week ending July 12, 2002, when it averaged 6.54 percent.

The average for the 15-year FRM this week is 6.17 percent, with an average 0.5 point, up from last week’s average of 6.14 percent. A year ago, the 15-year FRM averaged 5.36 percent. The 15-year FRM has not been higher since the week ending June 13, 2002, when it averaged 6.17 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.16 percent this week, with an average 0.8 point, up from last week when it averaged 6.13 percent. A year ago, the five-year ARM averaged 5.22 percent.

One-year Treasury-indexed ARMs averaged 5.63 percent this week, with an average 0.9 point, up from last week when it averaged 5.61 percent. At this time last year, the one-year ARM averaged 4.26 percent.

“Mortgage rates drifted upward this week following the release of the Consumer and Producer Price Indexes for March, which came in at the upper end of market expectations for inflation,” said Frank Nothaft, Freddie Mac vice president and chief economist. “As a result of higher mortgage rates, housing market activity is beginning to slow, as evidenced in the lower housing starts statistics for March.”

“Even though lenders are offering greater interest rate discounts on ARMs, the interest rate savings has declined relative to fixed-rate mortgages. The ARM share of applications dipped to 32 percent in March from 35 percent in November 2005, according to our survey. If the Fed continues to raise short-term rates, the ARM share will likely decline further.”

April 21, 2006 

Technorati Tags: listings

When you think of real estate, what do you think of? Buying a home, building a home, or realtors are what most people think of when the term real estate crosses their minds. Real estate is also a great way to invest your money and can be very profitable if you go about it carefully and wisely. However, just like any other business there are sneaky secrets and tips that you should consider before embarking on a real estate investment. Buying real estate to rent or buying real estate to fix up and resell are two of the most common ways to make money investing. However, there are a few things to keep in mind before you take the leap and hand over the cash!

The first thing that you have to do is to take action. Don’t sit around thinking about real estate investing, jump out there and do it! There are thousands of people that kick themselves daily for not trying something new. Yes, it is a risk, but think of the rewards that could be yours if you do great! Next time you think about buying and investing in real estate, keep in mind that you are letting the money sift through your fingers each minute that you think instead of act! The truth is that there will never be a perfect time to do anything. And that is just as true with regards to real estate as for anything else. Do not be a fence sitter! And look back in three years time wondering on what might have been ‘If Only’ you had developed a property portfolio. Of course I am not saying to be rash! Try to Invest wisely (obviously ;)) but don’t be so cautious that you can never bring yourself to pull the trigger and actually take action.

Secondly, keep your expectations realistic and detailed. Saying that you “want to get rich” is not reason enough to take the jump into the real estate market. Choosing to invest in real estate to bring in extra money for a specific purpose is a good place to start. It may be a while before you are able to quit the day job and buy yachts and vacation homes. Let’s be honest. It may never happen. It could in fact cost you the shirt on your back. By their very nature investments can go down in price as well as up. So picking the right investment property is a must. However, you will achieve more by focusing on what you actually WANT, rather then what you don’t want. So stay positive. Read some books on real estate. Visit some estate agents or real estate brokers and then lay out a list of attainable goals for you to achieve over a year’s time and every three months or so go over your list to see how you are doing.

Some of the benefits to real estate investing are being your own boss, cash flow, appreciation of property, and more! You are your own boss if you invest in real estate. However, whilst that has many upsides, remember that it is down to you to be motivated to develop the properties you buy, and that ultimately you will have to provide for yourself. There is no safety net when it comes to your property portfolio. The upside is ALL yours. But so is the downside. So be careful!

When you get to the point where it is a full time job for you, then you can take a vacation when you want, wear what you want, and go and play golf when you want. But the only place that money and success comes before work is in a dictionary! So get busy working before you spend all your days daydreaming about spending your gains!

Cash flow is another great benefit of real estate investing, because when you rent out a property it will provide you with a rental income. Hopefully, you will have a positive cash flow instead of a negative cash flow (ie the incoming cash flow is greater then the costs like repairs, mortgages etc) and be able to do all of the things that you have wanted to do. Another great benefit is that when you invest in property that property values usually rise (over time this is generally the case…but remember you can also potentially lose EVERYTHING…So stay awake to that possibility and be cautious. You can get more great information about Loans at http://www.just-loans.com). This is like earning interest on your money. What a bonus!

Real estate investing can give you a great return on your investment if you choose wisely. But, be careful that you go into it with your eyes open. Are you going to have rental properties? Office properties? Are you going to fix up houses and resell them? Will you buy those properties using buy to let mortgages, or finance it from money you already have? Whichever method of real estate investing that you choose, if you are wise, then you will make lots of money for you and your family. Make a plan TODAY to reach your goals and go for it! You will be glad you did!

About the Author:

Take control of your real estate needs! Here is a great collection of real estate investing resources. Visit - http://www.goodrealestatehome.com NOW! Source: www.isnare.com

Written by: Jake Sebastian

Would you like to know the value of your home for free? Just go to http://ZionsvilleHomesOnline.com and click on “FREE CMA” at the top of the page. You will receive a free CMA via email, no obligation to you!

Technorati Tags: real estate investing, real, estate, homes, houses, agent, lots, buying

If you are looking to get into the real estate games you may want to consider foreclosure sales as a way to break into the market. This can be one of the most profitable areas to exhaust if you are looking to turn a profit in the real estate industry. Also, finding foreclosure sales is not usually too difficult. You can usually find these in a couple of different places, with each one having its own distinct advantages and disadvantages.

First off you will want to check the local real estate classified ads in your newspaper. These ads will provide you with the information that you will need in order to get started. It will give you the contact information, and then you can take it from there and decide if you want to proceed with the transaction. Be sure to check the property out before agreeing to anything; regardless of what they try to talk you into on the phone.

If you do not find anything to your liking in the newspaper be sure to go straight to the internet. Here you will be able to find websites that specialize particularly in foreclosure sales. These sites will also be able to offer you valuable information on what to look for and how to close a deal. The internet can be your best friend when searching for information on real estate. There are hundreds of articles that are available in order to make your buying experience a hundred times easier. Never underestimate the power of finding good information via the internet.

Foreclosure sales can be a great way to turn a profit in the real estate industry if you do your research and know exactly what you are doing. Never jump the gun without first having all of your information lined up. It is also wise to consult a real estate firm before considering investment in a certain piece of real estate as a firm is used to handling situations similar to these and it would be able to secure your investment.

About the Author:

John Rivers is the editor of Forclosure Listings Central. Find current bank foreclosures and government foreclosed property listings. Source: www.isnare.com

Written by: John Rivers

Managing a real estate is not that easy. It entails a good strategy and alternatives. There is a saying that goes like this “Good property management does not have to cost you money, it must give you money”.

If the investor has acquired property, its major goal is to have a cash flow benefit. However, it has a great risk; for example, waiting on the amount of cash down payment and the dire condition of the property cash flow may or may not turn into reality. A buyer may not come along easily.

Frequently, many investors acquire property with high leverage, normally, properties that have a great deal of delayed maintenance. As a result of this, the properties are always subjected to a foreclosure. There are also properties which have costly maintenance which resulted to advertisement for small GRM (Gross Rent Multiplier).

Real estate management should inhibit themselves from expenses that get out of control. The expenses must have a breakdown in order to observe its cost.

Real estates have inevitable expenses that the management should look after. For example, leaking of the roofs, continuous breakdown of the appliances, replacing the old and dirty carpets, vacancy and evictions.

Real estate management should not be confronted by the lenders about the problems in their house. There are lenders who make a list of problems from the floor to the ceiling, so as much as possible, the management should make a proper system to respond to those troubles.

The management is faced with the challenges of a lifetime. If the management fails to maintain the good standing of property, it may go down together with the profits.

What is a really good real estate management?

A good real estate management corporation can be very helpful to the individual who does not have enough time to allocate their investments.

An intelligent manager can be a real reward to the investors that is facing a large amount of problems. Normally investors have trouble with extreme maintenance repairs and a large percentage of vacancies.

The estate management company must also give a helping hand to the lender or anyone who has the capacity to join their investment.

It is also very important for the real estate management to have experience. Emotional involvement and familiarity can be very effective tools to overcome several obstacles. The work of the manager is not to deject an investor or lender but to help them to see the real essence of owning the property.

Manager frequently needs to have contingency plans. He must know what step to take to get the unoccupied properties prepared for rent. Accurate schedule with the contractors and responsive decision-making is the key to success.

A successful manager can turn a trashed unit that has been completely abandoned into a great property in less than a week. If the repairs is extensive, the manager must know what the next step is.

A successful real estate manager usually has their own corporation. He must have the capacity to entrust a large quantity of responsibility to someone else in order to have an equal distribution of labor.

Real estate management is not about just offering a property for an individual or to the entire family. He should serve and give the typical services to the clients.

The management must understand that he has a big responsibility when it comes to the property. There are some circumstances that may change the management’s choices.

About the Author:

Tony Brings is the editor of Buy New Home Plaza. Whether you are buying a home for the first time or an experienced home buyer, Bu yNe Home Plaza has real estate information you can use. Source: www.isnare.com

Written by: Tony Brings

Here is some updated pictures. Flooring has been laid in most of the 2 bedroom 2 bath side, we decided to pull up the floor in the kitchen and replace it as well.

Would you like to know the value of your home for free? Just go to http://MyIndianapolisHome.com and fill out the simple form. You will receive a free CMA via email, no obligation to you!

More and more individuals are realizing that real estate is much safer, and a better return on investment than many traditional investment vehicles. Unlike stocks or bonds, real estate investments can usually be liquidated in order for the investor to access funds in far less time. Additionally, unlike many other investment vehicles, real estate does not come with the stiff penalties associated with early withdrawal. In most cases, investors can liquidate and not have to worry about losing large sums of money. Finally, real estate provides the assurance of a higher yield of return than other types of investment.

On average, real estate appreciates about 4% per year. That means that a property you purchased five years ago, under normal circumstances with no significant wear and tear, would be worth at least 20% more than the amount you paid for it five years ago. Some real estate markets perform significantly better than others at given times and with a mild remodeling or upgrade you could be looking at substantially higher returns on your investment.

Given these facts, it’s no wonder so many people are jumping on the real estate investment band wagon. It begs the question however; when will the real estate bubble burst?

There has been some speculation that the wild investment in the real estate market and they hype of outrageous investment returns has no where to go but crashing back down to Earth. After all; how is possible that real estate investments could possibly continue to double as they have in the last few years? Some critics even point to the fall of the real estate market in Japan in the late 1980’s. Homes that were worth thousands of dollars are now only worth a fraction of that amount while the homeowners still owe almost the entire full amount of the first mortgage.

While diversity is always a good idea and placing all of your investment funds in one vehicle, such as real estate, is never a good idea; there is reason to believe that the real estate bubble in the US is not about to end any time soon. This is true for a wide variety of reasons. First, simply supply and demand. Mark Twain once suggested investing in real estate because as he intimated, they simply aren’t making any more of it. What we have is all we have and when there is a strong enough demand; it can be quite valuable. Individuals and families are looking for safe, secure and affordable housing; however there is a dangerous shortage of this commodity. This is the primary reasons why flipping real estate has become almost a national hobby. It pays and it pays well.

Under ideal circumstances, an investor can purchase a property with financing from the credit union, provide a model renovation and then resell the property with a return of around 15-20% on their investment. This may occur anywhere between 3-6 months from the initial purchase date. Not bad. Professional investors have also learned how to tap into the huge profit potential of foreclosed homes, which they able to be purchased for under market value and then flipped for an even larger profit.

As with any type of investment, one of the keys to investing in real estate is in understanding when to sell. Holding a piece of property is rarely in the financial best interest of the investor. Some investors have found that a mixed strategy of holding and selling works well to provide income returns; however the best strategy in real estate investment remains flipping on short term projects to maximize profit potentials and reduce risks.

About the Author

Nicole Soltau is the President and Founder of CreditUnionRate.com. The Leading Credit Union Directory. Search, Find, Join. http://CreditUnionRate.com” target=”_blank”>http://CreditUnionRate.com>http://CreditUnionRate.com

Written by: Nicole Soltau

Technorati Tags: real, estate, homes, selling

There is a lot of fear about the real estate industry. Media reports suggest that the real estate industry is a bubble that is about to burst. But how true is this? Below are two facts that suggest there is no real estate bubble.

Fact No. 1

The real estate economy is local, not global

Unlike the stock market, which is based on the national and world economy, the real estate market is very much a locally-based economy. What does this mean? This means that while the stock market is influenced by economic rise and fall of industry all over the nation, the real estate market is not. Real estate prices in California may not influence prices in New York, and that’s that. In real estate, a broad analysis of what is happening around the nation does not always reflect what is happening in your home town.

Fact No. 2

When there’s a demand, there’s a supply

As long as there’s a demand there’s a supply. Real estate is about real people who need homes, and people will always be buying homes, because people need to live somewhere. If you look to the future, you’ll see that there’s an ever increasing demand for real estate. Take, for example, the fact that millions of migrants are arriving in the United States each year. This movement translates into a need for real estate. Moreover, it’s also much easier to get a home loan these days, which means that people will be buying homes. People also get married much later, which means that they’ll probably be buying a home while still single.

Home buying is a concrete need, unlike the stock market, which is less concrete. In the stock market, buying and selling happens at the snap of a finger. In real estate, economic activity is less volatile. The industry is inherently more stable.

The real estate market will rise and fall, but in general real estate prices rise in the long term. So, if you are investing, simply hold onto your purchase for the long term, and you’ll see that this is no bursting bubble.

About the author:

Dylan Miles, journalist, and publisher, is the owner and co-editor of http://www.realestateboom.info on which you will find more a detailed version of this article.

Written by: Dylan Miles

Would you like to know the value of your home for free? Just go to http://MyIndianapolisHome.com and fill out the simple form. You will receive a free CMA via email, no obligation to you!

Technorati Tags: real, estate, homes, buying, selling