Real Talk # 312 Peak Mortgage November 2014 Mortgage Market Update with Pitt Miller

Barry Asks Pitt Miller of Peak Mortgage for an update on the status of the mortgage industry in Sacramento and surrounding areas.

Pitt Miller

Barry Mathis: We’re going to jump out for a market update for our mortgage market update. Hey Pitt Miller what are you doing?
Pitt Miller: Well I’m just calling in now but I have been listening in to your great show, how are you today Barry?
Barry: We’re doing awesome. We’re going to be revealing our two new additional steps in our 79 point marketing plan which is now an 81 point marketing plan. But tell us what’s going on in the mortgage world. I heard that they’re giving away money again that it’s all free loans out there now.
Pitt: I love the way you say that giving it away. Well as you know for some of our clients last week rates are low. We have a 30 year fixed rate that hovered around 4% for 15 years under three and a half.
Barry: Hold on a second did you say under three and a half?
Pitt: Under three and a half Barry.
Barry: That’s amazing.
Pitt: But what I really wanted to talk about was how prepared a buyer needs to be. One of the questions I always get with customers in working with them is, can you ensure the deal’s going to close on time because we want to set up our sale of our one house to buy the next house. I want to talk about what it takes to make that happen.
Barry: Let me hear it, what do we need to be doing in advance to make that happen?
Pit: There’s the key word in advance. More than ever you really need to take the loan through the full approval process. What that means is you submit all the documents to the lender. You get the lender to under ride it and give actual full approval upfront. So if it’s an FHA then that’s a DE underwriter, if it’s a conventional you get it fully approved and then once we get it in contract it’s very realistic that we can close inside that 30 day period.
The biggest push back that we get from clients and the thing I have to help them through is just the documentation of tax to close. That seems to be the number one issues that always takes extra time and I kind of want to explain that.
Barry: If I go to the casino and lay down a black chip and I win that’s not good enough documentation?
Pitt: That was great thank you. Let’s talk about that, that is acceptable if you have the documentation to show that it was a pay out from the casino and you want it, and then we’re going to want to see if on the tax return you have a history of making money from the casino.
Barry: I don’t think anybody has a history of making money from the casino.
Pitt: That would be a surprise. What I normally see is people are used to people questioning their deposits into their bank when we look at their bank statements and that’s what it boils down to. We have to question or source all deposits into the account and that’s just sometimes frustrating with buyers.
I kind of preach that people take the time upfront let us vet everything, let us get the documentation done and then once they write the contract with you then you get on to the things like home inspection and little things to close not big things.
Barry: Absolutely, well thank you so much for joining us I really appreciate it. if somebody wanted to reach out and get a hold of you, it sounds like you’re being really prepared in trying to make sure that there’s no surprises. I tell you these kind of surprises are emotional, and heartfelt, and people cry. There’s moving trucks in the yard and people are sad, so we don’t want to have these kind of surprises.
So if somebody is trying to solve that in advance and being pro-active how do they get a hold of you?
Pitt: Well you get a hold of me by calling Barry Mathis, and Barry will refer you to me, or you can contact me, Pitt Miller, directly. Thanks Barry have a great day.
Barry: All right thank you very much. You heard it, we do have that from time to time. When you hear about the tightening of the credit market when you’re listening to the tightening of the credit market these are really some of the things that they’re talking about it’s those unmentioned things. It’s not that you now have to have a 700 FICO in order to get your credit.
You can get your credit with a much lower FICO score. You can get a credit with actually surprisingly low, in the low 600s and even some programs that don’t even have credit scores. You can get approved for a loan it’s just this kind of stuff the documentation, the making sure that you really can source your funds. That’s actually the tightening up of it.
When they say they’re being conservative that’s what they mean.
Missy: This is part of a real estate marketing plan Barry. When you are thinking about buying or selling a house you need to have that planned and part of the plan is the mortgage, is the financing. If you don’t have a plan, you don’t have someone to talk to that is an expert what are you going to do?