Where to go When You Need Speed to Get your Offer Accepted?

For the Home Buyers that May Need a Little Extra Boost in Getting your Offer Accepted, this is for you.

If speed is what you need to get the edge on the competition, look no further than Priority Mortgage.   Case in point, January is always a down month for us as far as number of purchase closings; but regardless of the season, we keep moving ALL Loan types through quickly to close.  In addition to our refinance closings, here is a complete, all-inclusive list of the purchase mortgages Naomi and I have closed in January 2022.  The number of days to close indicates time elapsed from our receipt of purchase agreement to Closing Date:

  • 20 calendar days to close VA Purchase from purchase agreement received Sunday, December 12, 2021 to closing the first day after the New Year on January 3, 2022.
  • 28 calendar days to close FHA Purchase from purchase agreement received Friday, December 10, 2021 to closing on Friday, January 7, 2022.
  • 19 calendar days to close Conventional Condo from receipt of purchase agreement received, Sunday, January 2, 2022 to closing on Friday, January 21, 2022.
  • 21 calendar days to close FHA Purchase from receipt of purchase agreement received, Monday, January 3, 2022 to closing on Monday, January 24, 2022.
  • 21 calendar days to close rural property from receipt of purchase agreement received, Monday January 10, 2022 to closing on Monday, January 31, 2022.
  • Realtor references available for these transactions
  • Our all time fastest record in closing a purchase loan was a VA Loan which was 8 Calendar days from first being introduced to the Veteran and receipt of purchase agreement to closing.

The average time for our entire purchase pipeline for January 2022 closings including:  1 VA, 2 FHA’s, 1 condo, and 1 Rural Home, was 15.8 business days from receipt of purchase agreement to closing date.  Admittedly, these sales were in January which is typically a slower month for home purchases, but those who work with us on a regular basis know that we close loans just as consistently fast even in the height of brisk spring market such as June and July.  For our Buyer’s who have fully processed pre-approvals prior to making an offer, we have routinely been able to close loans within 12-13 business days or less from receipt of purchase agreement if that is what it takes for our customer to win their bid.

When looking for speed in closing, it is important to note that a lender’s ability to get a fast so called “Clear-to-Close” is not the same as getting the loan “closed” quickly.  In fact, a lender’s self-proclaimed “Clear-to-Close” can occur in only 1-3 days depending on their underwriter’s turn times, and when the loan officer deems the clock starts.  Is it the application date?  Is it when they get all docs from the buyer??  Is it when they submit the loan to underwriting???  The true test of speed can only really be judged from the lender’s receipt of the purchase agreement to closing day.  Any other measure of a lender’s speed might be hyperbole.

What’s even better when working with Priority Mortgage is that our exceptionally fast closings combined with unparalleled communication doesn’t come at a premium.  Our rates and closing fees will beat the other mortgage companies and banks while being in line with the credit unions.  Find out what a combined 50+ years in a Loan Officer/Processing team that doesn’t have the heavy overhead of layers of management and marketing costs can do you for you.  Having decades of experience, we won’t ever over promise when we can’t close a loan within 3 weeks, but we will process your loan much faster than any other lender given the same exact file and set of circumstances.  At Priority Mortgage, we do this month after month, year after year after year.  We are also always there for our past customer’s questions and needs, years after their loan has closed.  Try getting that type of service from the big online mega lenders, banks and credit unions.  Our customers are clients are for life.  By Referral, we hope to help even more of our clients and customers and their referrals in 2022!

Congratulations to Sparty, and this year’s winners in the 2021 In State Show Down, FREE Michigan vs. Michigan State football contest.

Congratulations to Sparty, and this year’s winners in the 2021 In State Show Down, FREE Michigan vs. Michigan State football contest.

And the winnings go to…

1st Place tie goes to Westly Pyper and Maria Didion
– both whom will be sent a $150 Applebees Gift card

2nd Place goes to Adam Jarchow
– who will receive a $100 Applebees Gift card

3rd Place goes to Dave Dubiel
 who will receive a $50 Applebees Gift card

Thank you to everyone who participated. Thank you for reading for my emails and for your past business and your referrals.
And oh yeah … there’s still a lot of football left.
May your team continue to have success this year. Even as a Michigan fan, I can say it’s been a really fun college football season so far, that’s for sure. And it think we’re in for a lot more fun.  😊

What is a Bridge Loan and How Does it Work?

What is a Bridge Loan and How Does it Work?

“Bridge loans can help homeowners purchase a new home while they wait for their current home to sell. Borrowers use the equity in their current home for the down payment on the purchase of a new home. This happens while they wait for their current home to sell. This gives the homeowner some extra time and, therefore, some peace of mind while they wait.”*
A bridge loan also allows the Buyer to make a “Non-Contingent” offer which usually puts them at a competitive edge over offers that are “contingent” upon their current home selling first.

Dear Friend and Past Client,

We have been offering a competitive and accommodative bridge loan program; and of course, our end loan mortgage rates remain among the lowest in the industry.
Our ability to close quicker than the other lenders can often be an added bonus depending on your transaction. If you are contemplating moving up to a new home please reach out to me anytime and I will be happy to explain how this program works in more detail.  If you know of anyone looking to move up to their next home, please pass my contact information along. You know we Love Your Referrals!

 

What Buyers and Sellers Need To Know About the Appraisal Gap; An Article from Keeping Current Matters

It’s economy 101 – when supply is low and demand is high, prices naturally rise. That’s what’s happening in today’s housing market. Home prices are appreciating at near-historic rates, and that’s creating some challenges when it comes to home appraisals.

In recent months, it’s become increasingly common for an appraisal to come in below the contract price on the house. Shawn Telford, Chief Appraiser for CoreLogic, explains it like this:

Recently, we observed buyers paying prices above listing price and higher than the market data available to appraisers can support. This difference is known as ‘the appraisal gap . . . .’”

Why does an appraisal gap happen?

Basically, with the heightened buyer demand, purchasers are often willing to pay over asking to secure the home of their dreams. If you’ve ever toured a house you’ve fallen in love with, you understand. Once you start to picture yourself and your furniture in the rooms, you want to do everything you can to land the property, including putting in a high offer to try to beat out other would-be buyers.

When the appraiser comes in, they look at things a bit more objectively. Their job is to assess the inherent value of the home, so they’re going to study the facts. Dustin Harris, Appraiser Coach, drives this point home:

It’s important for everyone to understand that the appraiser’s job in the end is to remain that unbiased third party, to truly tell the client what that home is worth in the current market, regardless of what decisions have been made on the price side of things.”

In simple terms, while homebuyers may be willing to pay more, appraisers are there to assess the market value of the home. Their goal is to make sure the lender isn’t loaning more money than the home is worth. It’s objective, rather than emotional.

In a highly competitive market like today’s, having a discrepancy between the two numbers isn’t unusual. Here’s a look at the increasing rate of appraisal gaps, according to data from  CoreLogic (see graph below):

 

What does this mean for you?

Ultimately, knowledge is power. The best thing you can do is understand an appraisal gap may impact your transaction if you’re buying or selling. If you do encounter an appraisal below your contract price, know that in today’s sellers’ market, the most common approach is for the seller to ask the buyer to make up the difference in price. Buyers, be prepared to bring extra money to the table if you really want the home.

Above all else, lean on your real estate agent. Whether you’re a buyer or seller, your trusted advisor is your ally if you come up against an appraisal gap. We’ll help you understand your options and handle any additional negotiations that need to happen.

Bottom Line

In today’s real estate market, it’s important to stay informed on the latest trends. Work with a real estate professional to help you navigate an appraisal gap to get the best possible outcome.

Appraisal Gaps are increasing.  Now up to 20% of all transactions:  https://www.keepingcurrentmatters.com/2021/08/31/what-buyers-and-sellers-need-to-know-about-the-appraisal-gap/

 

 

Want To Know The Payment & Closing Costs Of That House That Just Went Up For Sale?

Want to know the payment & Closing Costs of that house that just went up for Sale?
(Now Offering Bridge Loan Financing!!)

Hello Friend!!
As you probably know, I like to stay in touch with my past clients, many of whom I’ve developed friendships with over the years. Regardless of how often we have stayed in touch since we’ve worked together on your last mortgage, I want you to know that I am always here to be of assistance to you, your friends, your family, and your co-workers.  I greatly appreciate your business as well as your referrals.  As an independent Loan Officer, your past business, repeat business, and your referrals are what keep me in business.  I cannot thank you enough.

In case you didn’t already know,

or as a reminder and an open invitation to you and those in your circle, I am always available to work up numbers on properties that are for sale without any commitment from you, or another interested party whom you’ve referred. To work up a “Dodd/Frank approved Loan Estimate” detailing monthly payment and closing costs, I simply need an email with the following information:

  1. Address of the property that is for sale (Note: We only finance owner occupied properties and true “second” homes).
  2. Price that I am to work up numbers on for the home that is for sale (Note: Homes for sale in the spring market of 2021 are often times selling for much more then they are listed for)
  3. Name and current address and phone number of the person seeking the information (Note:  If it is you, it is likely I already have your current information.  But if it is a referral, I will need them to also let me know they were referred by you as I continue to work “By Referral Only.”)
  4. I will need to know the total amount of funds available to work with for down payment, closing costs and pre-payment of an escrow account for property taxes and homeowners insurance.
  5. Permission to run a “Soft Pull” credit report which will give me an accurate (not estimated) TransUnion score.  This “Soft Pull” credit report does not show up as a “hit” or an “inquiry” on the person’s official credit report.
  6. Example of Loan Estimate

We are now also offering Bridge Loans!  3 Ways to purchase your next home prior to first selling your current home – Bob Hein (bobheinmortgage.com)

As of today, the inventory of homes listed for sale remains low and this continues to be a challenge for buyers. It may never be a better time to sell than then what we are seeing right here and now, in 2021. However, even with the recent uptick in interest rates, mortgage rates are still very low. Home affordability remains very strong, especially in West Michigan  and in comparison to other parts of the country.  If there is anything I can do to provide information, education, or value to you or anyone you know who is thinking about buying a home, I am available!!!

We greatly appreciate your business and hope to hear from you soon. Contact me with any mortgage questions.

Phone: 616-292-6703
Email: bob@prioritymortgagecorp.com
www.bobheinmortgage.com


– Bob Hein, Mortgage Lender

   NMLS 162989