Satori Alliance | Financial Counseling | Real Estate Investment Products | Financial Guidance Seminars

It is common these days to have long protracted conversations with real estae clients.  It’s also common that many clients have expectations from previous experiences that do not serve them now.

Jane did not communicate with me when she promised (http://www.satorialliance.com/ive-had-it-up-to-here-does-quality-matter/ ).  I sent an E-mail reminder, no reply.  I sent another 3 days beyond her action deadline, “Been real busy, will get back to you in a couple of days”.  Three days later, no reply.  I make a reminder phone call & leave a voice mail, no reply.  I send another  reminder e/m 2 days later, Reply: “I’m going to talk with a broker as well to be assured I get the best rates in Silicon Valley”.

So, for now this two week process of taking care of Jane hangs in the balance of who will say they have the best rate for Jane.  Delivering on that promise is another topic.  While Jane has been shopping for her mortgage like she does with so many other commodoties, mortgage interest rates have increased nearly .5%, something she could have avoided saving herself $166./month which she will now have to pay unless further increases occur before she makes her choice.

Times are different, the lending process is different, and in Jane’s case 4 major lenders supply all the mortgage product to all bankers and brokers who affer it at essentially the same price.  Expectations from a different real estate and financing market will cost you if they are no longer effective.

You will only know that if you get QUALITY ADVICE!

Yesterday I saw a sound bite where Joe Biden was angrily hollering at a rally for Obama “I’ve had it up to here” and the story went on with some embattled retort to something said in the McCain camp.  What are they training us about who they are?  Does it really matter what they say and to whom?  Are we seeing what’s in their heart (which will lead the country) from the media reports, which by-the-way includes this very post?

I had a conversation with a potential mortgage loan client yesterday (we’ll name her Jane) who contacted me from a directive on her monthly loan statement.  She has a fixed loan with a lower rate than current yet it’s going to convert to an adjustable rate in 1.5 years.  Her dilemma is should she refinance now or wait until the fixed rate portion is over.  Excellent question to be asking.  What do you think I told her to do?  Write your answer down right now. . .

We all know the headlines and turmoil in mortgage lending.  “I’ve had it up to here” with the talking heads in the newsrooms across the country in TV, Radio, and all across the Web that have made sure we are absolutely clear how “BAD” this “CRISIS” really is.  I’m getting calls from scared clients I’ve carefully developed for 25 years asking me questions about what they should be doing with the fear they are experiencing.  I’ve had it up to here with conversations that generate fear.  So now it’s up to me!  What should we do, what is the RIGHT thing to do, what is the BEST thing Jane could do - Is there really a crisis to do anything about, or is the doing that people are doing, the real crisis that’s being created?

I discussed Jane’s qualifications after several days of collecting her real #’s.  I researched her actual loan terms & we discussed how that loan would work down the road.  We looked at what the rate would be today if it converted and speculated about that conversion formula and resulting interest rate.  Jane shared with me her living plans and some of her dreams for the next 2-5 years.  We talked about a refinance, the timing, available lenders and programs, costs involved, and options to all of these she could control or not.  This conversation lasted about 40 minutes as she asked for clarification of her own concerns plus some I raised.

Jane and I completed the call.  She now has answers to critical questions she’s been struggling with.  More important, she’s settled, she’s peaceful, she has options.  The difference for her is she now has actual facts she understands and can verify, she can now live the future exactly the way she wants, and that’s real power!

Will I get her business and be paid for supporting her, I sure need and want it these days, but what matters is the honor and respect that just having quality facts produced for Jane.  She can now choose what’s best for her.  To find out what she chose, and if you were right, come back next week which is when I find out.

Have you been in the position where you knew today was the day you would be turned down?  There’s a distinct sinking feeling that surrounds this negative possibility that’s kind of like the body sensations of the buzz of stress.

It started in the normal way with a referral to a wonderful young couple from France looking to build a life and a family here in the U.S.  At first glance they had done so well in France I wondered why here, why now with all the economic and financial bad news.  But they saw the opportunity not the pain.

Their desire and qualifications were strong, their cash sufficient, and their employment solid with promise for the future.  Certainly a bright career to look forward to while building their family, dare I say “The American Dream”!  They said the only problem they were told by everyone they interviewed was they didn’t have the required 2 years employment history in the U.S. to get financing.  Was this a turn down day?

A little research & we had a strategy that we discussed thoroughly.  With an excellent 6 year veteran Realtor, and a willing developer of a new home, they had an acceptable purchase contract and were thrilled with what would soon be theirs.  They saw the possibility.

They were prompt, thorough and efficient gathering all that had been asked of them, and then an unexpected problem with a property they still owned in France which would now require what was to be some of their down payment to secure.  This surely was a turn down day.

The new plan required less cash, bigger payments and stretched them beyond what they considered comfortable.  This was the turn down day.

It was a solid plan, an excellent purchase, and because of temporary lending limits which would dissappear by year end, after 3 days they carefully and thoughtfully chose to continue.   This new plan required additional documentation and some from France but we had 2 weeks to get it all done.  Lots of E-mail, phone messages, 3 way communications, translations, and sleepless nights and my 30+ years of working this stuff out was tested, but with excellent support it got done!  Now all we needed was an underwriting decision and the closing ceremonies could commence.  It would be tight but we had a week left.  With a few well placed phone conversations, all were standing by. . .

Having an approval in hand weeks earlier, all we needed was a successful review of requested documentation.  We used every communication skill and venue to speed it up - no word from the underwriter - Get supervisors involved - No answer - Get managers involved - No answer - Get Regional involved, on vacation, no help - No answer.

This couple, packed and scheduled with a mover for the exact day of closing, 8 months pregnant, completed everything asked of them on time, excellent credit, funds, income, out of time, had every right to yell, scream, and hollar about what surely would be a turn down day.

Get the regional director involved - YES, an answer, it’s all good, documents are approved, our Realtor hero negotiates an additional few days to close and the spring begins to unwind, sleep returns, and the move is one.  They saw the possibility, trusted their advisors and beat the odds!

In todays stressful mortgage lending environment even if you are well qualified with plenty of assets and it’s completely obvious it should all go well, the rules change while you sleep and the impact without warning may be A Turn Down Day.

Build your dream, choose your advisors carefully, then follow them no matter what!

Thank you for your interest - I’ll be back in 1 week - DN