Happy Thanksgiving! 10 Things I am thankful for.

THANKSGIVING is the holiday that we all get to take a moment to be thankful. 2009 has been one wild ride for many of us. Many times we can get so caught up in the middle of the ride we forget what we have to be thankful for. So here goes my TOP TEN things I am Thankful for:

1. Jesus Christ – He is my Lord and Savior and without him I would not have the opportunity to be thankful and reminded of the things that I am so truly blessed with.
2. My Children – I have three of the most wonderful children in the world. They love me through it all regardless of my status. To them I am famous and so is there mom as she was on TV recently. A simple hug from one of Children is a constant reminder of my many blessings.
3. My Parents and Family – For being there for me through all the things that they do. They love me unconditionally.
4. Realtors that refer me business – This is one of the most important although it is fourth on the list. I have been so blessed that there are Real Estate agents that have come to trust me enough with not only there clients but with their financial well being. As I perform they perform because no house is bought without Money:) Those people include but are not limited to: Nathan Novelo, Dayna Neuse, Karen and Robert Wallace, Peter Bond, James Herron, Keisha Mathews, Brook Terhune, Bryan Hill, Marcus Fillipi, Paula Nelson, Jennifer Walker and Melanie Wright. There are several others that I would like to mention but these mentioned I successfully closed at least one transaction and enjoyed working with them immensely.
5. My Clients – Thank you for placing your trust in me. In today’s world it can be hard to trust a Mortgage Professional as the picture that is painted s not always rosy. For whatever reason you placed that trust in me. I am thankful for you and your families and I hope to serve you for many years to come. You are the backbone of what I do and without you and the interactions and the lessons that you taught me about life I would not still be a successful Loan Officer today.
6. Adversity - adversity is the obstacle that leads to growth and change. Without it I would remain the same and would not grow. Growth is necessary always and I hope to continue to grow until my final days here. 2009 has placed so much adversity in front of me that I feel like a new man going into 2010.
7. Capitol Mortgage – Greg Teeter has done an amazing job giving us a place to work. It has been a pleasure to be part of a company that is moving forward, growing, and so Loan Officer friendly.
8. Facebook – This has giving me the opportunity to reconnect with so many great people in my life. I recently received and email from a friend I have known since Kindergarten letting me know that I have always been one of his dearest friends and that he cherishes our friendship. It came at a great time!
9. Opportunity – I am so happy to live in the United States. I am thankful for the soldiers that fight for our Freedom and Independence. I have had opportunities that some will never see. The opportunity to be a homeowner, Father, Husband, to own my own business, to get a degree, to learn grow and develop and even when I do not accomplish them at the highest level I get the opportunity to try again. I am thankful for that.
10. THE RAIDERS AND THE FACT THAT THEY PLAY THIS THANKSGIVING DAY!!!!!!!!!!!!!!

What are you thankful for? There is so much that I could write about that I am thankful for. This just touches some of the things. Feel free to comment about the things that you are thankful for……………………………………..

Onions are not the only thing with Layers!

I was sitting on my couch the other day watching one of the most infamous movies of all time with my children. The movie I am certain that many of you remember. During the movie there is a point when they talk about how “Onions have layers” and it got me thinking. Yes, that movie was Shrek and no this is not a pitch for the upcoming Shrek 4.

Like onions, all mortgage loans have layers. The layers are risk layers. Every file that we touch or work on is evaluated by the amount of risk to the investor. Risk is evaluated on several different ways. An underwriter has to be comfortable with the level of risk in order to approve the file. These layers can be described the following way: 1) Credit 2) Collateral 3) Capacity and 4) Compensating Factors.

Credit – Credit is more than a score. The score does make up the first level of assessment. If you do not have a score that meets the minimum requirement for the program you are done before you begin. However, what if you do have a score that is high enough to qualify for the loan program. Does that mean it is a done deal at that point? Credit has several components that we must go over to make sure that a consumer not only meets the requirement for score but credit as well. Some of these factors are:

• # of trade lines open and rating current – A trade line is an open account such as a credit card, and auto loan, a mortgage note, and installment debt or even a lease. These trade lines must remain open and most be rated to the current date. Some people have old credit cards that they never actively closed that have not reported in months. This shows the lender that you have the ability to open and maintain credit and when you have done so for several different types of credit it will help establish a solid score. They do go hand and hand. However if you have a 700 score and only one open trade line that is a small credit card open for 5 months this will not qualify. Although the score is high there has been little time for you to make a mistake and the low limit is a low risk for the credit card company. This would be insufficient credit.
• Several Open Collections – FHA specifically looks at the last twelve months of credit to see how you are doing now. There are cases that the scores are qualifying scores but a client has many open collections for semi large amounts. If this is not in the last twelve months the underwriter might require them to be paid especially anything over $1000 or so. If they are in the last twelve months and there is more than one you most likely will not qualify for the loan. If it is only one then you will have to write a suitable explanation and it will be left to the underwriters judgment. The only exception to this rule is Medical collections.
• Open Tax Liens or Judgments – Any of these items will have to be paid no matter what. They will also be further evaluated to see when they occurred what it is and why. Remember they are trying to see if there is any recurring behavior patterns of unpaid debts without explanations that make sense or situations you could not have predicted.

Collateral – is based on how much you are putting down on the property you are buying or the amount of equity you have in your current home. The larger the down payment the lower the risk. Anything less than 20% down requires Mortgage Insurance. Mortgage Insurance is designed to cover the investor on their losses in the even that the consumer forecloses. FHA is a Government insured loan and is designed to have a limited down payment so generally the collateral portion for FHA borrowers is usually not considered a strength of the file as a whole.

Capacity – This is the consumers ability to repay the debt. This is largely based on your debt to income ratio. However, capacity can be broken down further and commonly is:

• Time on the Job – If you are in a new industry where you get tips, overtime, bonus, commission or any other special compensation that you did not receive at your previous job they may not include this income. This could have a dramatic impact on the qualifications.
• Work History – I have had situations where the borrower had many jobs and this spooked the investor. I had to make up for spotty job history but accenting the positive factors of the loan.
• Self Employed Income Decreasing Year over Year – many loan officers take a two year average and that is the way that we are taught if and only if the income is steady and or increasing. In the event the income is decreasing year over year we use the current year only and we must make sure that the decline is not severe.

There are other items on capacity that we may look at in the layering of the risk but for time and length purposes that is all that we will discuss here.

Compensating Factors -Any factors that decrease the layers or levels of risk in the file. Some compensating factors may include but are not limited to:

• Assets
• 401K
  
• Long time on same job
• Reserves after down payment (not an FHA Requirement but considered a compensating factor)
• Low Debt to Income
• own funds to close not gift

The following Illustration is one that I have always used to give myself a visual of all the information above. Then I would rate each section 1-10 and determine how to present the strengths and minimize the exposure of the weaknesses.

Although overly simplified the graph shows that Credit, Collateral and Capacity are the focal points or base of the triangle. If any one of them are not very strong it is up to the supporting arms or Compensating factors to make up the difference. In order to do so the compensating factors have to make sense and be supportive to the overall structure of the file.

Ultimately the layers of risk will make or break your file. The goal of a loan officer should be to package the file in the best manner possible to make sure the underwriter sees why this is a good file. If someone has a high debt to income (Capacity) then it is essential that they are strong in credit and collateral and it is a bonus if they have compensating factors such as reserves. When borrowers want to do down payment assistance programs they are adding layers to the file. When you increase the layers or levels of risk you create a greater chance for error or decline. It is imperative that as you increase the risk you have supporting compensating factors that help to justify the risk an investor may take on you. As a consumer you can work toward this. Set yourself up for success. Decrease the layers that your file has and maximize your three C’s. This will help you to get a loan in today’s economy.

In conclusion, it is all about risk or layers. You want to give as many reasons to the investor to buy your loan as you can. I understand that it is hard to fire on all cylinders all the time and that is why Compensating factors play a huge roll. If you know that you have lower credit, don’t make a ton of money, and have limited down payment then you have to understand that you may be asked for several items. If you want to ask for down payment assistance you have to take a step back and be the investor. The question is why do I want to give my money to this person? Our job is to assist you in answering that question for the investor.

As always thank you for reading.

Today I saw the oddest thing…………a book?

I had a meeting this morning and it was at a coffee shop. I went into the shop and began looking at all the books that they have in the bookcase. As I was scanning the books I noticed a book titled “100 Greatest Bible Verses.”  This really seemed to get to me. It raised the following questions right away:

• In what Context?
• To Whom?
• Who Said?
• Do you think that Jesus labeled one verse better than the rest?

I am certainly not an authority on the situation by any stretch of the matter. However, I do think that all verses have their time and place and that they are all very relevant at all times. The Bible is a book of Love. In the book there are several commands, parables, genealogical verses and simply verses that tie things together.

Now, I did not pick up the book to see if the author did put this into context. Something like 100 Greatest Bible Verses to me, regarding love or anxiety, or simply the best of all time? It is much like choosing the top 100 Basketball players of all time. It is so different for each and every person that I can’t believe that you can put this in a list. I also think that the list is an ever-changing list. It will change to you over time as your priorities or “core values” change.

I think that it is hard to create a list like top 100 basketball players of all time. This is very different for each person based on their perspective of what might make a player good or great. This list changes over time as the options change and there are more players to choose from. There are not going to be additional Bible verses over the coming years but perspective and impact of a verse may change for someone over time. I used to believe that there was an absolute truth. That everything had an answer that was specific to that question. Yes, this was when I was an Engineering major but over time I have changed my view on that a bit.

See our story is written in advance but we are given moments in life that one choice versus the other will have a dramatic impact on our future. God will rewrite the story based on that decision and the choice that we come to. It is a story that is also ever-changing. I think that our perfect creator has to change his plan on the go. Rewrite goals based on the actions that we have taken here.

So then why the rant on the book. I think that categorizing “greatest 100 verses” is impossible. Yet we can publish this because lists are an easy  way to read and understand something. List Posts are popular styles of writing and I have used them in my blog. However, I just can’t wrap my head around the best verses of all time. It struck a nerve in me and I had to write about it to determine whether my thoughts are silly and without merit or others think that without context this is a hard one to Categorize.I also think that it is in line with some recent thoughts I have been having on a series, on another personal blog I am creating(so I don’t commingle, next mortgage definition, work and pleasure to much) about LABELS!!!!

Thanks for listening!!!!!!!!!

******Update for clarification purposes. One of our readers made a great point. God is all knowing so when I spoke about rewriting the goals or our story I was off base from my own understanding. Our course has been set and like our very own children it may not be the path he had envisioned for us. However, he does love us unconditionally and he is graceful. Thanks again for the gentle reminder and encouragement.

Mastermind Revisted: A blessing to all who attended!

Recently, I returned from the Mastermind Summit in San Diego, California. The event was in it’s 10th year and is hosted by Brian Buffini. For those of you who do not know who Brian Buffini is check out his site www.buffiniandcompany.com. He is the one of the largest Real Estate trainers in the country. His coaching and training have brought my business to a new level and I have only begun to tap into it.

Mastermind Summit is different from every other Real Estate seminar that I have ever attended in my life. I was not sold any products at all. In fact I was given gifts for attending that were not little pens. I received a book not written by Brian Buffini and I got a journal. The point of the Mastermind Summit is to take a hard look at all aspects of your life. It is definitely a more holistic approach to self examination. Brian Buffini has never been shy about his spirituality and this year was no exception. The focus of Mastermind this year was “What Matters Most.” The event started out on Sunday and the very first guest to get the event underway was Sinbad. He was hilarious. It was a great night and it was just the beginning.

The next day Brian started the day and went deep. We had to take a look at the things that mattered the most in our life. After we figured that out we also had to take a harsh look at how an outsider would perceive the order of importance based on out actions. Sometimes our heart does not align with what out actions show. We were challenged to make sure that we are giving the intention to What Matters Most in our life what it deserves. I can say that many times my business was stealing me away from what matters most. We examined that and wrote some joggers down that would assist us in a goal writing session that we would have on the final day.

We had another guest speaker that day in Hyrum Smith. He is the founder of Franklinplanner.com The leader in time management strategies. He was amazing. The take away from Hyrum Smith for me was laying the foundation of my personal Governing Values. My personal Constitution so to speak. We talked about how to come up with those. Write a descriptive sentence about each of them and commit to living them. Our first gift from Brian was a book written by Hyrum Smith with an appropriate title “What Matters Most The Power of living your values.”

Honestly, I cannot even explain all that went on at the seminar so I am going to save you the rest of the details. Go to his site and check out information regarding all the events that they do. What I really wanted to talk about was the impact that it had on my life. Since I have come home from  the event I have been by no means perfect but I have been aware. The first step in getting better at things and breaking age old habits is awareness. I have realized that the business does not go away if I handle my priorities in the middle of a day. It has caused me to be upfront and more selective with my time. It has also led me to be more effective in my work because I now crave the time with my family and have planned it in to my day. I get in do the things that I need to do and get out of the office. I care so much about the result of my clients loan that many times I would find myself micromanaging a file and putting off activities that I needed to accomplish to keep the vehicle moving. This would cause what I would call cardiac arrest results and holes in the business.

So the question that I like to ask my customers and all the readers out there is the following:

What Matters Most in your life? Let’s take that into account when we are getting you qualified for a home loan. Let’s get specific on what we want and what we need and make a plan that fits!

I am very grateful for the opportunity to have attended this event. Thank you to the Real Estate agent Brook Terhune that paid for my ticket to go. It was truly an eye opening experience.

Marketing Focus: Where do you spend your time?

Yesterday morning I was at my networking group meeting. This is not the normal Letip or BNI group it is more than that for me. It is called the Christian Business Roundtable. We are group of men that share the same Faith gathering to sharpen each other and hold each other accountable in business and in life. It was my second meeting and my very first formal meeting. Each meeting it is practice of the group to have a Best Practices portion where we can share and expand each others business arsenal if you will. Today the Question was:

You just sold your business to a conglomerate and have agreed to remain for a few months as a consultant. You will receive 100K bonus if you can increase sale by 20% in the next six months but you have been allotted only a limited increase in your marketing budget and no media advertising budget.

You have gotten together with an Advisory Board to give you straight talk about ideas to drive traffic. Start getting the advice now!

• What “out of the box” marketing steps can be taken in: Special Promotions, Network Marketing, Newsworthy Press Release, Low cost Direct Mail etc.
• What steps will drive more traffic to your product or service?

As I left that meeting I had so many ideas to work on for my business but the one that stuck out was based on affiliate marketing. When market others services our reward internally is great. In addition external reward via increase in our business is nearly always the result. However, I do not want to rest on my own understanding. I realized that Facebook and Twitter have given me a large audience of business professionals. These professionals that I have come to know are always thinking outside of the box to drive more traffic. So I figured I would ask my advisory board.

What steps would you take to increase your revenue by 20% in six months? Share them hear with all of our readers and watch the explosive power of two or more.

Don’t take my word for it:

“Two are better than one, because they have a good return for their work: If one falls down, the other can help him up. But pity the man who falls and has no one to help him up!” Ecclesiastes 4:9-10

***** This information is not my own. It was borrowed from the Christian Business Roundtable that I am involved with. The post here is meant to be thought provoking and to generate a massive brainstorm session amongst a group of professionals. We all can always use a jump start of fresh ideas.*****

Man’s Best Friend

They say that a dog is a man’s best friend and for many years I don’t think that I believed it. In fact, I wanted a dog so bad as a kid and we could never afford one so I think that I was scarred from those days. Naturally when my wife and kids asked for a dog I was absolutely against it. I was able to resist until the day………………

It was a Sunday and I received a phone call from my father. He asked are you guys going to be around for a while I want to come up. If you know my dad this would be extremely out of the ordinary. My dad is in Modesto so about 1 hour and a half later there was a knock at the door. My kids all three of them ran to the door in excitement. The funniest part is they had no clue nor did I or my wife what would be behind the door. We opened the door and my Dad was standing there with a three pound 8 week old pure breed Boston Terrier. That Sunday against all my better judgment and wishes KODA was born into the family.

So what has happened since then is that little tiny dog is now a one year and a half year puppy that my kids adore. My wife is his master (don’t even think about saying mine too). He sleeps in our bed every night. I had just gotten all the kids out of the bed but what the hay him or a fourth kid I will take him. I like him a lot when no one is looking and then I throw up the machismo when people are looking. Then it all happened……Last week on Friday we noticed that there was something wrong with his eye. We took him to the vet to discover that he had an eye ulcer. He was to have an ointment in his eye every two hours and I was selected to administer. My wife and kids left Sunday on a trip without me and it was just he and I. I have to say that we bonded and through all the ointment administering and talking to him because there was no one else I decided to publicly admit that I love the little guy. Monday I took him for the recheck and the Vet sent me to emergency eye care. She stated that his eye was REAL BAD! I went to the doctor and she stated that he needed to have surgery first thing this Morning. He was going to receive an eye graft and if that did not work he would lose his eye. Hundreds of emotions ran through me but the one that generally would have floored me: THE COST was of no concern.

Over the night I waqs worried sick but confident that the DOC would do her magic. The surgery was a success for KODA and for the doctor cha-ching! The most important thing is that I learned that a dog is truly A MANS BEST FRIEND. He would do anything for me and I will do the same for him.

WHAT DOES THIS HAVE TO DO WITH HOMES AND HOME MORTGAGES?

The answer is very simple. I think that are many times that we convince ourselves that we do not like something based on a past experience or trauma that we may have experienced. If we never want to look at a one story because we don’t feel that there will be enough privacy we limit our scope. Many times the very thing that we are adamant about can become the thing that we adore the most. I was so against a dog that for the first year that we have had the dog I have completely missed out on the joy that he brings to the table. Don’t let Stereotypes about FHA, Mortgage, certain neighborhoods or schools determine how you feel about something. Give yourself the shot of making your own decision as to whether or not something is for you. Also, give the person that is making the suggestion the chance to explain why before you knock it.

I have many clients that walk through the door saying NO FHA or NO Points and there are a lot of cases that they end up realizing that FHA with one point was mathematically the best choice for them. Go into everything with the same enthusiasm as a child. Approach it as though you know nothing and seek wisdom and wise counsel. Let the product or the numbers paint the picture for you. Seek the facts and the truth without limiting the windows that you are looking through and in the end you will be all the more wise and all the more satisfied.

JUST REMEMBER THAT I MISSED A YEAR OF MY DOGS LIFE BECAUSE I HAD A PRE-DETERMINED VIEW THAT WAS ABSOLUTELY INCORRECT! KODA you truly are a man’s best friend and thank you so much for the life lesson that you have taught me.

Getting Out to Get In!

Well, I think that many of you know that I just got back from a vacation. It was a very quick get away more than a vacation I would say. I left on Saturday afternoon and came back yesterday. The trip was a 5 hour drive to a small town called Cayucos near San Luis Obispo. Highway 1 runs directly through the small town. It is beautiful there. I am fortunate to have a Grandma that lives right on the water.

Why did I go down there you might ask. I went with my family to attend the graduation of my Brother-in-Law from Cal Polytechnic State University. The Graduation itself was awesome. There were some amazing speakers and so much promise right there on the football field. Children that are uncertain as to where their path may lead. What type of influence they may have on the world. Still worldly virgins that are eager to get out and experience what life will bring. Others sat in the seat thinking to themselves now what? What am I going to do. The market sucks, no one is hiring and I do not even know what I want to do in life?

What was the difference between the two parties? What things lead so many to be encouraged while the other half remained so discouraged? I could see it in the body language and I could see it in the eyes of the graduates. The parents also gave a view of the very same encouragement and discouragement. Some were filled with excitement. The kind that said my little one is all grown up and ready to tackle the world. So many great things are ahead and what a bright future they will have. Others were saying with their eyes, “Oh no, how is my little one going to navigate this uncertain and unpredictable world?”

Getting Out to Get In came to my mind as I thought about the title. I was away from my business. I had gotten out and while I was out I was able to get in. I was able to analyze my business. I was able to take a look at what might be working and what may not be working. I was able to see what types of people I want to be around and others who I rather not. I was able to see who I was becoming and able to see how I may be perceived. I was able to take an outside perspective on the way that my industry is functioning and where the focus lies. I had to ask myself three very important questions?

1. What is my Motive when engaging in a business relationship?
2. Do I add Value to the relationship greater than simply getting the transaction from Point A to Point B?
3. How do I Respond to the circumstances that we face in today’s economy?

Motive – While reflecting on this question I think that I was taught to create relationships in business that are mutually beneficial. Relationships that help each other to rise to the top. Relationships that are fruitful for both parties. I never really stop to think about how I am to do that. I thought that if I give them business and they give me business and we both get to make money that is the goal. However, over time I have learned that I do not want to to just have a relationship to add to the business. I do not have to have 100’s of clients or hundreds of business associates. What I do want to have is fruitful strong relationships that add to the the quality of life of the other party. I rather have less clients and less Realtors that I am able to do more for than many. In addition, I have learned that each relationship is not always equal in depth. Some you will become very close to and others will be surface. I wanted all too be deep and many and I was spread thin. I wanted to make lots of Money and that was the motive. (don’t take the next statement incorrectly) My Motive has changed. The goal is not Money any longer. It is Impact and Influence. Yes, I have to make a living. I do that through the relationships but how they are created and maintained is now more important than the result of the relationship for business.

Value -Do I add value to the relationship? I started to evaluate if there was any added value that I bring to the consumer. What is it that I do differently than others? Don’t get me wrong there is a lot of value in getting the loan from point A to Point B. For the Business Partners that I work with why should they work with me and what makes me different than other affiliates. When I think about this I always end up thinking that I simply care and I simply deliver the news good or bad. In addition to the fact that I rarely take a day off. I am responsive and present. Is that enough? That is the conflict.You are only as good as your last deal. I am hoping that I can add enough value that one deal that goes wrong does not discount the ten that went right. That we are able to talk through the difficult ones. Open and honest. I hope that I am humble enough to accept criticism. I want to grow from the constructive feedback.

Response – How well do I respond when the pressure of the environment gets the best of us? I think that this is one of the most critical aspects of our industry and more importantly our lives. The way that we respond can be largely representative of how will will behave moving forward. If things get stressed or we face a difficult situation in the near future together it is insight to how I will deal with that. My Business Associates, clients, friends and family deserve to know how I respond to difficult situations more than what I do when things go right. I will admit that the industry has gotten the best of me at times. In the past I may not have handled the situation in the best manner possible but those are the situations that have developed my character. I am confident that I will face adversity on a transaction but I am more confident that I will handle it well moving forward. I know that I will seek the truth, find the answer and deliver it to the parties that need the information.

So, while I was Getting Out to Get in I realized that I needed to ad something to my business for the clients and partners that I work with. I needed to be clear in the Motive, Value and Response that I bring to the table. I also learned that I may need to shrink to grow. Pinpoint my servicing so that I can be more effective. From the graduates and their parents I realized that there are always two ways to perceive what is down the road. I also learned that I need to not worry so much about what is down that road so that I do not miss what is here right now. I can be eager and confident to walk in the world today and be comfortable with where I am at. The beauty of life is enjoying what we have not we are absent. As you see here I am blessed with a beautiful life partner and if you are reading this I have been blessed with Readers like you and clients, and associates that have touched my life greatly.

Thank you all.

Remember Field Day? What I learned while volunteering.

Today was field day for my daughter’s school. She asked that I be there to help with one of the stations. I can never resist the look in her eye when she asks. So I agreed not knowing what I might get myself into. The alarm goes off this morning at 5am and I am excited for what the day has in store. My daughter is woken up by her little brother so her excitement was definitely subdued. In fact she was super grumpy this morning. When the fog wore off and she caught fire she said to me Daddy, ” Are you ready to go?”

We jammed out to the car and we headed to the gas station to fill up on the way to school. My daughter being the worrier that she is says again, “Daddy can we talk about the rules for a minute?” “Sure,” I said ” What might the rules be?”

1. Don’t embarrass me?
2. Don’t embarrass yourself
3. Have Fun
4. Be silly but not to silly
5. Know who you are and who you represent

After I was firmly told what the rules would be and how I was to follow them I said to her that they sounded simple enough. I would do my best to follow them and if she notices anything I asked that she kindly let me know but not in front of everyone. We signed the pact just as we were arriving to the school.

The stage at the school was set. The parents had their coffee and the kids had a bag full of excitement.

Time to Check In: I was instructed to go to the cafeteria and check in to find out my assignment. The gossip and the chatter was amazing. All of the parents that I normally see volunteering and more. Many of them carried the look of worry all over their face, stress, excitement, inconvenience, contentment, sleep deprived, and all the other emotions we see on adults each day. As I stepped up to the table I said, “I am Matt Freeman where am I to be placed today?” Quickly I was told that I would be manning the bean bag toss. I was pointed to my materials and shown the map on where to go. I walked over and grabbed my materials and walked with confidence over to my site.

First Lesson of the Day: When we are provided direction and commands for something as simple as my job and my station we follow without hesitation. I walked with confidence. I then asked myself why it was so easy to follow the commands of a volunteer at the school and so difficult to follow the commands I have chosen to live by. Do I complicate things by getting in the way? Our own intellect is many times my own worst nightmare. I try to control the outcome and I am not in charge. The command was “follow me.”

Once I got to the site I set up the station. Clear direction: Divide the kids into two groups of ten and have them toss the bags into the holes. They can keep score by teams or they can keep their individual score. I was paired with two mothers from other children at the school. They were pleasure to be around and overall seemed to be happy to be there. The whistle blows and time for the first group.

My daughter was in the first group so I made sure to follow the rules that I was bound by. I might have embarrased her a little because I was acting silly but I know that later when her friends said that I was cool she had a smil;e in her eyes. The first group stepped up and nailed the tosses. Attempt after attempt. Many times they missed but that did not stop them from trying again. Each time that we stepped up the challenge they were game. They never backed away from the challenge and they approached each with a smile on their face.

Second Lesson of the Day: There are going to be many challenges in life that we are presented. Each one may be harder then the next. We cannot tire and we cannot be afraid to accept a perceived challenge. When we do not accomplish it on the first attempt we are to try again. They were Joyful about what field day had brought them. Opportunity to grow with each failure and to be humble in our success. There were many that never made a shot but they kept throwing. There were some that made every shot and they never were boastful. They high fived each other as brothers and sisters and supported each other until the end. At times their critiquing may have seemed harsh but it was honest and necessary.

Summary: I am so happy that I followed my heart and volunteered. Had I not went I would have been to busy buried in my work to notice the things that I have to learn and be reminded of. So next time that you are invited to go to a field day or similar event turn the phone off, roll up the sleeves and enjoy yourself. Just remember Rule #5 “Know who you are and who you represent.”

My Credit Stinks!! What can I do?

I am a firm believer in credit management. The way that we are able to manage out credit will have a direct impact on the overall quality of the lives we lead. Credit can affect getting a job, mortgage, car, or the ring that you need to propose. This is why I am excited to announce that Michelle Luker of Capital Credit Source a “Certified Credit Expert” has agreed to do a series on Credit. So as part one to the series we have decided to do a brief introductory post:

“Understanding Credit and What it Means”

When you apply for Credit, lenders look at your FICO scores. FICO scores help lenders determine risk, and can have an effect on your ability to borrow as well as the rates or fees that you will pay. There are three credit bureaus: Experian, Transunion, and Equifax. Each of the credit bureaus calculate their own FICO score.

The FICO score gives lenders a prediction of the likeliness that an individual will pay 90 days late in the next two years. A high credit score would tell lenders it is less likely that you will pay 90 days late in the next two years. The lower the score the greater the chance.

For your FICO scores to be calculated you must have at least one account reporting that has been open for the last six months. There also must be one account that has been updated in the last six months. As your credit changes so will your credit score.

The credit bureaus take a snapshot of your credit profile at the moment that your credit is pulled. The scores are then determined by the data that is reporting at that given moment in time. Items that you have paid on that have not reported yet will not reflect in the score that you have received. You must also keep in mind that not all creditors report to all three bureaus. The information in the report for each bureau may vary slightly and in some cases can be dramatically different. If one bureau reports a collection and others did not that bureau can be significantly less.

As this is just the start of the series on Credit I encourage you to stay tuned. We will go in depth on the different measures of credit and how each piece of the pie can be monitored and maintained.

As Always thank you for reading.

Michelle Luker can be reached at www.capitalcreditsource.com or by email at info@capitalcreditsource.com

Mortgage Definitions: Lock In and Lock In Period

It is common to hear the terms Lock In or Lock In Period associated with your new home purchase. The terms are very important to your financing and it is important to have an understanding of them.

Lock In – An agreement in which the lender guarantees a specified interest rate for a certain amount of time at a certain cost.

Lock In Period – The time period during which the lender has guaranteed an interest rate to a borrower.

Previously, we examined different costs associated in Free Mortgage Step Right Up! These costs are either in rate and offered by the wholesaler via yield spread premium or they are paid upfront as pre-paid interest also known as discount. Each morning the investor sets the rates they are willing to sell on the open market based on their risk tolerance. They will set what they determine to be the par rate of the day and build the pricing off that rate. Par rate is generally represented with a 30 day lock defined as the lock in period.

Lock in Periods  are important because they are the time that you are given to execute the funding of your loan at the rate and the cost that you “Locked In” at. The shorter the period of the lock the cheaper the costs for the rate that you are locking in.

For Example: If you were locking the rate 4.75% today on a 15 day  lock the cost would have been .125% discount. The same rate locked for a 30 day period would have cost .250% discount. To give yourself an additional 15 days to get your laon closed it would have cost an additonal .125% of the loan amount. (this example is for illustrative purposes only and may not represent your borrowing position. Rates were on a 30 year conforming fixed rate mortgage with 740 fico, full doc on a single family residence purchase. Please consult your professional regarding your loan specifically.)

The constant change in the market require the investors to at times make midday chnages to the pricing. The imrovements can be for the better or for the worse. There are cases when more than one change can occur in a given day. If you have locked prior to the change you are safe from the change. If the rates have gotten better you are not allowed to get the better rate or pricing that it changes to. On the other hand if the pricing deteriorates you are locked in at the pricing prior to the deterioration. Pricing is time stamped so it is imperative when making a decision you are decisive. See Don’t bend over picking up pennies while dollar bills fly over you head  ! Indecision can prove to be a costly mistake.

For More Reading on Rate Locks, Lock In or Lock in Period you can also read:

Mortgage Locks: Certainly Uncertain! 3 tips to locking your mortgage.

Mortgage Rates Locking or Floating part 2 of 2 by Jeffrey Belonger

As always thank you for reading,

Matt Freeman

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