New Programs

I know many of you have heard me say that there are new changes coming. Now that April is here, we should start to see the new "stimulus package" guidelines. I've only received one set of guidelines from a lender so far and no pricing from anyone. We still have another week or two before you'll start to see the guidelines.

I still urge everyone to start the refinance process. Even though I don't know the exact guidelines or pricing yet, it's best to get started now. If you thought the lenders were backed up when just the rates dropped, imagine what's going to happen when they get flooded with a bunch of new loans with guidelines that no underwriter has ever used before.

Some of the features are loans that on just the first mortgage can go up to 105% loan to value, streamline refi's with little or no documentation, first-time purchase credits, no minimum credit scores, no mortgage insurance for loans over 80%, AND MORE. There will be changes along the way and each lender can overlay any additional guidelines they want. Assuming that pricing stays where it is and there isn't a lot of additional hits, this is going to be great for home owners.

Feel free to email me, willie@1bearfinancial.com , or call 818 264-0999 to find out more or just to see what you'll need to get ready. This is the first time I've been excited about up coming changes in our industry. I'm not and I hope that you all don't get too excited because until we see what really happens we don't know for sure... But even if this means one person can capitalize on these new programs it will help, at least me :) Seriously, these programs do look to help lower the average person's monthly payments.

Bear's Method

There is a method to my madness. I speak to a lot of borrowers. I know I can get caught up in my craziness and will bounce from one topic to another. It's part of my charm. I have to toot my own horn and use it as an example.

Rates are bouncing all over the place. For weeks they can sway slightly back and forth or in a day drop or rise tremendously. As I've told many borrowers, let's get the loans into the system and be ready for the one or two days that rates drop. We can always flip the loan elsewhere or in some cases lender are renegotiating rates so that they can keep the loan.

I say this because not everyone listens to me. But I just did this for a borrower who did listen to me. We had the loan sitting at the lender for about two months. We set a goal for the rate and points that this borrower wanted to get and spend. The day that the market tanked a few weeks ago we where able to get that rate, in this case an even better rate than what our goal was. We were able to lock on a short term lock and close the loan out. The plan worked perfectly. It takes patience but this can work. Sure enough rates have gone up since that one day.

So if you want a great rate and want to make sure we can get that rate if rates drop for only a day or two, listen to my madness. Get your loan information in and let's set a goal for the rate. And keep the goal realistic, no 3% with no points. If you want 4.5 with one point cost, that's doable (hell, it might be doable now). Then when that hits, I don't have to track you down. I'm not lying when I say sometimes these rates are only around for a few hours or a day.