Nov 24, 2023
One basic economic principle is the Law of Supply and Demand. This proven economic theory basically states when demand declines prices improve and applies in all aspects of business including Real Estate. What does that mean for homebuyers today? Home sales dropped to a 13-year low in October as demand weakened. The decline in home sales offers a great time to buy your new home. When sales drop sales prices fall as well. Do not miss this opportunity. When Spring arrives, demand increases and prices will increase again.
Nov 23, 2023
2023 was a very different year than 2021 and 2022. For example, in October home sales hit a 13-year low. Many of us did not achieve the results we had hoped for this year. The Thanksgiving Holiday celebrated this week allows us to reflect on all we have to be thankful for. Often lost in the hustle and bustle of our daily work is the true impact we have on families. Success is not measured only in our financial results. What we do matters. The “home” is the foundation of the American family. Owning a home is the first step in financial success and building generational wealth. It is more than that. Owning a home provides a safe and secure place that is the anchor of the family and the community! Be thankful for the impact you have helping families find their foundation!
Nov 17, 2023
A brisk Fall breeze is in the air and the leaves are falling. The last two weeks have been great for interest rates. Just like leaves, interest rates have been falling and are at their lowest level in months. Mortgage rates are not all that is falling. Sales prices are falling as well. Leaves, rates, and prices are all falling. Do not miss this opportunity. Take advantage of everything falling in the Fall and find your new home this weekend.
Nov 06, 2023
Every day the media is filled with news that makes us wonder if we should buy a home today? Television, Radio, and the Internet the story is the same. Inflation, rising interest rates, tight inventory, and uncertainty about the future of the Real Estate Market have many of us thinking the best course of action is to wait until things get better. Is this the right financial strategy? Given all the reasons the media is happy to point out it would appear that is what we should do. Actually, the best strategy is to ignore the popular media and buy today. Dave Ramsey, the nationally syndicated radio host and financial advisor, says “if you can find a house, regardless of interest rate, I want you to buy now, if you’re out of debt and have your emergency fund in place.” He also said “if later the interest rates come back down, you’re not stuck. Just refinance and dump the old mortgage that you had.” Rates are expected to move lower in the near future. When this happens, market demand increases pushing prices back up. What you think you save waiting for lower interest rates is quickly lost as prices increase. FDM has affordable mortgage solutions to help you buy today and will refinance for free when mortgage rates improve.
Oct 04, 2023
Interest rates continuing to increase combined with higher home prices are pushing mortgage payments higher. In 2022 mortgage lenders denied mortgage applications due to “Insufficient income” more often than any other point since records began. Unfortunately, Interest rates keep moving higher and home prices remain elevated resulting in a higher rate of mortgage denials due to “Insufficient income” for 2023, which will surpass 2022 mortgage denial rates. The CFPB reported that the average cost of the monthly mortgage payment increased 46% to $2,045.00 In December 2022 from $1,400.00 during December 2021. The skill and expertise of your loan officer is paramount today. The strength, creativity and products of their company backing them is also critical in this market. Does your Loan Officer know how to revise cash flow, to improve DTI for approval? Does their company have programs to support higher DTI buyers? It is a great time to buy a home. Your clients will need the expertise and programs of a loan officer and mortgage company that understand today’s challenges. Yes, it is harder to get a mortgage today. Do not let that stop your clients from attaining their dream of homeownership.
Oct 2, 2023
October 15th is tax time again! The 15th is the date to file your tax returns if you filed an extension earlier in the year. This presents a challenge for many self-employed buyers. Their accounted does their best to reduce the self-employed buyer’s tax burden. Unfortunately, this often makes it difficult for a self-employed buyer to qualify for a conventional mortgage when they are looking to buy their new home. The FDM Team are experts working with self-employed buyers and FDM has special loan programs that are tailored to meet the unique needs of self-employed buyers. Do you have a self-employed buyer who needs a little help buying their home?
Sept 27, 2023
Last week we discussed the FOMC’s decision to “pause” raising interest rates. Well, the FOMC did pause and mortgage rates shot up over the past week. Wait, the FOMC did not raise rates, but mortgage rates increased anyway? The comments in the FOMC minutes saying they expect to hold rates “higher for longer” set the tone for mortgage rates to increase. What can we do to protect our clients and protect our sale during this volatile period? We can make a mortgage payment affordable and not worry about mortgage rates increasing. The FDM Purchase Power Program, a fully underwritten Pre Approval, with the Inflation Buster 2-1 Buydown provides a payment rate 2% below market rates. FDM can lock in your clients with a payment rate as low as 2% below market today for up to 120-days while they are looking for their new home. The Mortgage Bankers Association (MBA) released their interest rate forecast for the next three years. The MBA forecasts mortgage rates to fall to 5% in 2024. Use the FDM inflation Buster 2-1 Buydown to get a payment rate 2% below market rates today. When mortgage rates fall FDM will refinance your client for free. Even better unused Buydown Funds are applied to your client’s principal balance lowering their mortgage payment further.
Sept 20, 2023
As we expected the FOMC did “pause” interest rate hikes in September. Awesome, the FOMC finally stopped the rate craziness. Today’s decision leaves the benchmark short-term rate at a 22-year high of 5.25% to 5.5%. Today’s meeting is just the second meeting at which the FOMC did not raise interest rates since it began its hiking campaign in March 2022. We can finally say rates are going to get better! Since we are in the midst of College Football we can quote College Game Day football legend Lee Corso….”Not so fast my friend!” As we have shared it is never just about the FOMC rate decision. Traders focus on the comments in the message from the Fed. The "Higher For Longer" in FOMC Statement was not a welcome message for traders. The FOMC statement hinted at one more interest rate hike in 2023, which is welcome news, but they predicted they would cut the rate to 5% to 5.25% which is higher than the 4.5% to 4.75% they projected in June. That means officials will likely start trimming rates later in 2024 than they had predicted….. “Higher for Longer!”. Inflation is slowing but remains much higher than the FOMC target. Rising Oil and Gas prices are a variable that can alter the FOMC direction forcing them to be more aggressive in their monetary policy.
Sept 16, 2023
“Ba-dee-ya, say do you remember? Ba-dee-ya dancin in September. Now December found the love we shared in September.” These are the classic lyrics to the iconic Earth, Wind and Fire song September. September, one of my favorite songs, got me thinking about the state of the housing market. Yes, mortgage rates have moved back up slightly. Yes, property values increased this, Summer.
Ba-dee-ya let’s get dancing in September. Based on the 2022 U.S. Housing Market Data the best months to buy a house year-over-year are from September through February! This is partially due to the holiday season, seasonal changes in pricing, and homebuyer competition declining that create a short downswing in the real estate market—this is especially advantageous for buyers. Additionally, many families want to settle in a new house before the start of the school year in the fall, so they exit the market opening doors for buyers still in the market.
If you are dancing in September, what is the love we share in December? The love of your new home! While the market remains hot, historically you have a better opportunity to find better value September through February than you do during the spring homebuying season. The majority of price reductions occur during the winter while the more properties sold above the listing price from March to August. For example, only 23% of homes sold above the listing price in December 2022, as opposed to 59.1% in May 2022.
There is still time to make your goal of becoming a homeowner in 2023 happen. What is stopping you from taking the first step to financial freedom in 2023? Worried about interest rates? Homeownership is still more affordable than renting today. The FDM Purchase Power Program locks in your rate while you shop for your new home.
Ba-dee-ya…..there is still time to find your dream home in 2023. Questions about Interest Rates, Cash-to-Close or Credit? Ask your FDM Mortgage Professional for assistance today.
Sept 11, 2023
What is the accountants focus when helping a self-employed client? Reducing their tax burden. How is this accomplished? By reducing the clients income. While this is great from a tax perspective it is not helpful at all when a self-employed buyer is trying to buy their new home. This is why many self-employed buyers are having a hard time getting a loan approved with traditional loan programs. FDM is an expert assisting self-employed buyers getting a mortgage. FDM has loan programs to meet the specific needs of self-employed buyers Cash flow loans, Bank Statement Loans, Profit and Loss Statement options. No tax returns required. If you have a self-employed client that needs special assistance with their loan approval, the FDM team is here to help.
Sept 8, 2023
Labor Day just ended, signaling the passing of Summer, and we are starting to see the first signs of Fall. The leaves are turning and beginning to fall. Although this week we experienced record highs in some areas of the country, last week we did feel the cool mornings common in the Fall. Fall is coming and the leaves are not the only things to start falling. It looks like sales prices are starting to cool as well. Home price growth in July and August was lower than historical averages. The Fall is a great time to find your new home, especially for first time buyers. The news has been focused on the rising cost of homeownership, but the price growth is actually slowing creating opportunities for buyers. Listings are growing meaning more houses are becoming available and prices are starting to fall. More good news for the Fall? The Fed is expected to take another pause, not raising rates in September. It looks like mortgage rates and sales prices are ”Falling into Fall”. Do not miss the opportunity to take advantage of falling prices combined with cooling mortgage rates.
Ask your FDM Mortgage Professional how the FDM Purchase Power Program, a fully underwritten pre-approval, with a 120-Day Lock and Shop can help you buy a home in 30-Days!
September 6, 2023
A few weeks back we featured 5 to 5 in the newsletter. We wanted to bring 5% up once again why? Interest rates spiked up again over the past few days. Depending on the borrowers credit score and loan type 8% is being quoted for some loans. 8% is a shock to many clients who have been searching for their new home. According to recent survey today’s mortgage rates are creating a “golden handcuff effect” rates above 5% are stopping sellers from selling their home. Sellers are twice as willing to sell their home if interest rates are 5.5% or lower. 71% of buyers planning to purchase their next home said they will not accept a mortgage interest rate above 5.5%. Today’s mortgage rates are “handcuffing” buyer and sellers. What does this tell us? 5% is a tipping point. What are we supposed to do sit and wait to mortgage rates drop to 5% as expected? Let’s show your client the path to 5%.
How do we get from 8% to 5%? The FDM Purchase Power Program with the Inflation Buster 3-2-1 Buydown provides a payment rate 3% below market rates. FDM can provide your clients with a payment rate as low as 5% today. The Mortgage Bankers Association (MBA) released their interest rate forecast for the next three years. The MBA forecast the mortgage rates to fall to 5% in 2024. Use the FDM inflation Buster Buydown today to get a payment rate 3% below market rates. FDM will refinance you to 5% for free when mortgage rates fall. Even better unused Buydown Funds are applied to your principal balance lowering your mortgage payment further. Ask your FDM Mortgage Professional how to make homeownership affordable today.
Aug 23, 2023
The news on mortgage rates has not been great over the past few weeks. It seems like every day we hear mortgage rates hit the highest point in over 20 years. Yep, the daily news shocking is many people looking to buy their new home. What do you do? Just turn off your TV, Radio, Phone, Internet and stop listening to all the bad? Well, in a way, yes! Bad news sells clicks. Bad news sells papers. Unfortunately, bad news sells so we all receive a steady stream of the bad. But mortgage rates are at 8% what’s good about that? While 8% is not great, and plenty of people are happy to tell you about the bad, everyone leaves of the most important part. Today’s mortgage rates are only temporary. Now you say, I see we should wait until rates come down? That is the wrong strategy. It is actually a great time to buy. Increasing mortgage rates have pushed buyers to the sidelines eliminating some competition. This is a great time to get your offer accepted. Work with your FDM Mortgage Professional to determine what short term payment you are comfortable with then get preapproved and find your new home. When mortgage rates drop as expected next year, FDM will refinance you for free. Remember the payment you have today is not your permanent payment……It is only temporary!!!
Aug 4, 2023
The first shock the United State banking system was the failure of Silicon Valley Bank (SVB). Signature Bank falls a few days later. Shortly after that another bank, First Republic Bank, bites the dust. The quick failure of three large banking institutions sent shock waves through the United States banking system. Market wondered who would be next? As a result in 1st Quarter Banks began tightening their lending requirements, increasing rates, reducing products and programs impacting the market. Unfortunately, market conditions have not improved and in some cases gotten worse. The quick rise in interest rates over 15 months severely impacted bank’s balance sheets, earnings and capital levels as they were not positioned to respond to such rapid rate shock. Rates have steadily increased keeping pressure on banks. Increasing concerns about the commercial real estate market has the potential to be the next shoe to drop.
Regarding banks’ outlook for the second half of 2023, banks reported expecting to further tighten standards on all loan categories, the Fed said in a survey summary. Banks most frequently cited a less favorable or more uncertain economic outlook and expected deterioration in collateral values and the credit quality of loans as reasons for expecting to tighten lending standards further over the remainder of 2023. Banks will continue to tighten lending to include mortgage loans. This is in addition to Bank Regulators increasing the Bank’s capital requirements for mortgage lending. What does this mean? More and more banks will exit the mortgage banking space, tighten credit requirements, raise pricing, reduce products and programs. If you are currently working with a bank for your mortgage needs, you need to have a backup plan. When banks exit mortgage lending it happens quickly. Ask your FDM Mortgage Professional for a FDM Purchase Power Pre-Approval to protect your contract in case your bank make a sudden change.
Jul 28, 2023
The recent and rapid increase in interest rates has certainly created concern. While the 11 increases in the Fed Benchmark Rate since the Fed began its inflation fight in March 2022 does not have a direct impact on mortgage rates, 11 straight rate increases currently the top story all over the media does shock the market. Mortgage rates have increased from a low of 2.96% in 2021 to an average mortgage rate close to 7% in 2023 creating concern for prospective buyers. Why pay 7% for 30-Years? It is true the 30-year mortgage is the most popular term for a mortgage in the United States, representing over 70% of all mortgages, but do borrowers really have a mortgage for 30-years? The initial thought of most borrowers is wow, I will have an interest rate of 7% for 30-Years. While, most borrowers think this is a 30-Year Commitment the reality is quite different.
Decades ago a 30-Year mortgage was a simple 30-Year Loan. Refinances were not an option. Today’s financial markets are very different. A mortgage is a financial tool that changes based on the financial needs of the borrower. In 2023 mortgage rates are much higher than 2 years ago, but you are not paying for 30-Years. The average homeowner length of loan is 7-Years or less. Today’s mortgage rates are not the interest rate a borrower will pay over the life of the loan. When mortgage rates improve, and they will, FDM can refinance your loan for free. Ask your FDM Mortgage Professional how Mortgage Planning can help you maximize your cash flow aligning the right mortgage program with your financial needs. Asking about the lowest rates is not always the right question. Asking what mortgage program meets your current needs is more important. What mortgage program you start with is no the mortgage program you will have forever.
Jul 21, 2023
What difference can one make? One is often overlooked. There is even a song “one is the loneliest number”, but one is very powerful. At 211 degrees all you have is hot water. Adding one degree gets 212 degrees and you have boiling water. Boiling water creates steam. Steam is powerful enough to run a locomotive. Steam drives Steam Turbines that generate electricity. The one degree between 211 and 212 is powerful. If you have a 619 credit score, you do not qualify for a Fannie Mae or a Freddie Mac loan. Add one getting to a 620 Credit Score and suddenly your Credit Score qualifies for a Fannie Mae or Freddie Mac loan. Looking 2 credit reports for one for a 619 Credit Score buyer and 620 Credit Score Buyer you can’t really determine a lot differences, but to Fannie Mae and Freddie Mac the one is very powerful. (FDM does have tools to help you increase your credit score ask your FDM Mortgage Professional how we can help).
20%, 10%, 5%, 3,5% what is the number? How much do I really need for a downpayment? The initial investment required for homeownership remains the most significant challenge to homeownership. After paying rent, car payments, groceries, utilities, gas,
Insurance and your student loan how are down we supposed to have enough money to buy a new home? One can be the answer. You can buy your new home today with a 1% downpayment. 1% required for a downpayment is often less money than the first month’s rent and security deposit to rent a home today. One truth about renting. You are always paying someone’s mortgage. When you are renting you are paying your landlord’s mortgage. Time to put the “Power of One’ to use for you. Let one help you become a homeowner today.
Ask your FDM Mortgage Professional how you can buy your new home today with the FDM Purchase Power and 1% downpayment.
Jul 12, 2023
The two year steady increase of mortgage rates has been front page news. What is the cause of the over 5% increase in mortgage interest rates? That is a very simple answer. Inflation. Rising rates have been the focus the past two years, but we are now seeing the impact of inflation in other aspects of the homebuying process. The increasing costs of building materials and other cost is having a devasting effect on the Insurance industry. As a result many insurance companies like Nationwide, State Farm or Erie are unwilling to offer homeowner policies to new clients in certain markets. We are also seeing the annual premium cost for homeowner policies skyrocket. Unfortunately, this has a direct impact on the affordability of a new home and an impact of what a potential buyer may qualify for. More than ever the homebuying process is a team effort between Realtor, Mortgage Professional and Insurance Agent. In this market we cannot afford to “silo” these efforts. How well the entire team works together determines what you can qualify for. We cannot wait until the end to secure the Homeowner’s Policy. We need to determine what is available in your market and what the annual cost will be. The skill and experience of the entire team working together is critical. How can we make the annual insurance premium work to help you qualify? We can no longer wait to the end of the process to get the homeowner’s policy and expect this to be readily available. Start the Homeowners Policy process early to avoid a last minute challenge.
Jun 23, 2023
To quote the classic Bon Jovi song “We’re halfway there”. Wow, time really does fly. We just passed the halfway point of 2023. Was one of your goals in 2023 to finally become a homeowner? Did you start the year dreaming about spending the July 4th holiday sipping your favorite adult beverage on your own deck? Is 2023 passing by too fast?
There is still time to make your goal of becoming a homeowner in 2023 happen. What is stopping you from taking the first step to financial freedom in 2023? Worried about interest rates? Homeownership is still more affordable than renting today. The FDM Purchase Power Program locks in your rate while you shop for your new home, and then refinances you for free when rates get better.
Is the cash-to-close holding you back from owning your home? How much downpayment do you think you need 10%, 20%? Did you know you could buy a home today with no downpayment? Actually, the cash required to rent a home today, customarily the first month’s rent and security deposit, is in many cases more cash than required to buy a home.
Questions about credit? Don’t worry, you are not alone. We are confused about credit. FICO, Beacon, Transunion, Equifax, Credit Karma? How does it work? Similar to the cash required to rent a home today. The required credit score to rent a home today is substantially higher to rent a home today compared to buying.
There is still time to find your dream home in 2023. Questions about Interest Rates, Cash-to-Close or Credit? Ask your FDM Mortgage Professional for assistance today.
A Long Pause?
Jun 23, 2023
The financial news last week was all about the Fed “pausing” interest rate increases after 10 consecutive rate increases. The “pause” sparred consumers from a record 11 rate increases. The question today is this long pause or a short break? Well, the Fed minutes are clearly saying this is a “catch your breath” pause. After voting to leave interest rates unchanged in a target range of 5-5.25 percent, policymakers on the Federal Open Market Committee (FOMC) caught Fed watchers by surprise when they announced that they’re also penciling in two more rate hikes for 2023. Some Fed watchers today are forecasting the Fed Benchmark Rate increasing to 5.5% by the end of 2023, and are leaving the door open for an even higher move. Inflation remains stubborn and the Fed’s primary focus is fighting inflation. Unfortunately, the only tool the Fed has to fight inflation is raising interest rates.
What does that mean if I am looking for a home? The old adage “What Goes Up Must Come Down” applies to interest rates. Yes rates keep going up today, but they will come down. Does this mean I should wait? Waiting until rates come down will actually cost you more. Sales prices have flattened in many markets thanks to rising interest rates. The higher rates go sales prices will continue to level off. When interest rates start to fall, and they will, property values will begin to increase rapidly. The best financial strategy is to buy your new home today taking advantage of the leveling of the sales prices. When rates begin to fall refinance and lower your mortgage payment and watch your home value grow. Ask your FDM Mortgage Financial Professional how you can buy your home at today’s prices and lower your mortgage payment when interest rates fall with the FDM Free Refinance.
Need Closing Cost Help?
Jun 14, 2023
The real estate market has heated up again with the summer sun. 1st-Time buyers are out hoping to take the first step to financial freedom becoming a home owner. Unfortunately, the market has shifted back to a sellers’ market. Your client has the funds for the downpayment, but needs seller help for closing costs. This may put your client at a disadvantage. Your client has made offer after offer only to lose out because they need closing cost help from the seller. Most of us think our client has the money for a downpayment so they do not need downpayment assistance? “Move the money and make the deal!” Make an offer that does not require seller help. Your borrower can use the money they have saved for downpayment to pay the closing costs, and use the downpayment assistance for the required downpayment. Would a no seller help offer make your client’s contract more competitive?
Ask your FDM Loan Professional how your client can make an offer today with no seller help required.
May 11, 2023
Spring is here. Rain is falling. The sun is out. Spring is the time when farmers and gardeners plant seeds. Spring is also the perfect time to plant your financial garden. The first “seed” to plant is buying your first home. Homeownership is the first seed in your financial garden and growing generational wealth.
Did you know that Homeowners have net worth 40% higher than renters? In fact, the Net Worth Gap between Renters and Homeowners has increased every year since 2010 and continues to get larger. Homeownership is your financial foundation. 70% of the average American family’s net worth is in their home.
Whose garden are you growing? Rent inflation, rising to more than 9%, significantly outpacing the actual rate of inflation. Unfortunately, rents are expected to increase throughout 2023 into 2024. Every rent payment made is fertilizer for your landlord’s financial garden. Your landlord’s financial situation improves every month, while your return on rent is ZERO!
Spring is the time to plant your first seed and watch your financial garden grow.
May 4, 2023
The Federal Open Market Committee (FOMC) announced another quarter-percentage point increase lifting the benchmark federal-funds rate to a 16-year high. The Fed began raising rates from near zero in March 2022. For the 10th consecutive time Fed officials increased rates by a quarter point on May 3 to a range between 5.0% and 525%. Mortgage rates have more than doubled since the Fed's first rate hike in March 2022, and the average monthly mortgage payment for a “typical” home has risen 50 percent over that period.
The Fed increased rates this week. Why did mortgage rates get better when mortgage rates have been getting worse over the past year? The answer is inflation. When inflation rises, mortgage rates go up. When inflation looks to be headed downward, mortgage rates go down. The Gross Domestic Product (GPD) released April 27 came in at 1.1% indicating a slowing US economy. The recent jobless data also showed a cooling of the job market. The recent economic data combined with investors’ belief the Fed rate increases will finally succeed in curbing inflation pushed mortgage rates lower. That happened after the central bank's most recent rate hike on Wednesday. Yes, the interest rate on your credit cards may go up, but mortgage rates got better.
April 28, 2023
Most of us were taught from an early age that it’s rude to point. Well, this is probably true, unless of course we’re talking about mortgages. And if you’ve been following us for any length of time, you know that we here at FDM LOVE talking about mortgages, and how to put our valued clients on the best path towards their financial freedom and future!
So what does it mean to “point”? Well, put simply, points are prepaid interest, payable at closing, to obtain a lower interest rate over the life of a fixed-rate mortgage. 1 point is equal to 1% of your total loan amount. And up until recently, you could expect 1 point to reduce your interest rate by around a quarter percent (.25%) for the life of the loan, generally a good deal if you were planning on staying in your home for 5 years or more. But with the recent changes in the market, 1 point may now buy your rate down as much as 1%, meaning that your breakeven period for buying that point might be 18 months, or even less in certain cases.
What could that do for you? Well, making a small investment to buy points when you take out your mortgage could easily result in thousands, if not tens of thousands, of dollars in savings over the life of your 30 year fixed rate mortgage loan. Your preferred FDM Mortgage Professional would be happy to perform a no-obligation analysis to determine if “pointing!” is right for you.
See? Sometimes it’s polite to point, and a smart financial decision as well! How cool is that?
*The above examples are for illustrative purposes only. Your individual costs and savings will be wholly determined by your credit, income, assets, loan amount, overall financial profile. Rates and points subject to change without notice. This is not a commitment to make a loan. Equal Opportunity Lender.
April 21, 2023
What role do Bank’s play in today’ Real Estate Market? The popular misconception is banks are where to get a mortgage. Well banks may have the money, but they are not lending it. The reality is 71% of all Fannie Mae and Freddie Mac loans and 86% of all Government Loans are originated by Independent Mortgage Bankers. According to JP Morgan CEO Jamie Diamond “It is becoming increasingly difficult for banks to stay in the mortgage business.” More stringent government rules about how much capital banks need to allocate to such activity, has resulted in "derisking" in mortgage lending. Part of the “derisking” process is banks quickly changing underwriting guidelines, raising minimum credit score requirements, and reducing Debt-to-Income ratios all in an effort to reduce their mortgage business. The recent failures of SVB Bank, and Signature Bank, as well as the government supported bailouts of First Republic Bank and Credit Suisse Bank hastened banks retreat from the mortgage business.
What we are experiencing today is an overall tightening of credit. The Urban Institute estimates that if mortgage credit reverted to normal levels — below the excesses of the mid-2000s but much looser than today — an extra 1 million loans could be written per year. This market requires a team with a high industry IQ! As banks exit mortgage lending, a trend that will continue, FDM is ready, willing and stable filling the gap. FDM has expanded loan programs to meet the needs of today’s Real Estate Market. Did the bank let you down? FDM is here to help!
April 13, 2023
My credit score is 660 one day and then 620 a week later? Credit Karma, Freecreditreport.com, and my bank webpage all have different credit scores? What is a good score? What is a bad score? What credit scores count? What is the Experian BOOOOSTT? (Purple Cow Mooing). Credit scores are mysteries unless you are working with Mortgage Professionals who know what determines a credit score and how to improve it. Do not let concerns about your credit score stop you from becoming a homeowner. FDM has the tools, programs and experience to help you with any credit score. If you want to learn more about how credit scores work and what options are available to help you, please reach out to your FDM Loan Officer today.
April 2023
Over the past two-years buyers paying cash for their new home hit record levels. Nationally cash-buyers represent 28% of the total Market and in some Markets, Naples for example, cash-buyers have represented up to 90% of all transactions. The Market is starting to “normalize”, and it is time to use new tools to give your clients an advantage. How do you give your clients greater leverage in this Market? Use a little “Magic” and “Poof” turn your Buyer into a Cash-Buyer. Pre-Qualifications are just “Looky-Looks”. Rocket Mortgage’s Pre-Qualification, for example, is based on a Credit Report and “on information provided by the Borrower”. This holds no value in today’s Market. Pre-Qualifications are what most Loan Officers offer. Pull a credit report, run numbers based on what the Borrower told me and send you a Pre-Qual Letter.
Use a little FDM “Magic.” The FDM Purchase Power is a fully underwritten Pre-Approval. The power of a true fully underwritten Pre-Approval turns your borrower into the next best thing to a cash-buyer giving your client an edge in this Market. Your buyer is now equivalent to a cash-buyer subject only to the Appraisal and Title. Income…Check! Cash-to-Close…. Check! Loan Approval…..Check! No Surprises!
The FDM Purchase Power, a fully underwritten Pre-Approval, gives your client a huge advantage in this Market. Your client can close faster! Your client knows their mortgage is approved! Your client makes an offer with confidence! Cash-buyers will still have a slight advantage, but the FDM Purchase Power gets your clients close and makes your client’s offer stronger than the 72% of the Market that still needs a mortgage. Don’t leave your Sales Contract at risk with a “Looky-Look” Pre-Qualification. The FDM Purchase Power Buyer is as good as a cash-buyer.
Mar 23, 2023
How much of a down payment do you need to purchase a home in today’s market? 20%? 10%? 5%?
If you answered as little as 0%, you’re right! Your friendly professionals at Fidelity Direct Mortgage have access to multiple sources of down payment assistance (DPA), so you could put as little as 0% down to purchase your next home*. Moreover, the Federal Housing Administration just reduced the monthly mortgage insurance premium (MMIP) by over 30%, meaning that your dollar goes further in purchasing the home that you want, not just the home that you’ll settle for!
So, give the Federal Housing Administration a hug and give your preferred FDM mortgage professional a ring, because we’re both committed to affordable homeownership for you and for all!
*Subject to income and asset limits, and credit approval. Rates, terms, and programs can change without notice. This is not a commitment to make a loan. Additional conditions apply. Equal housing lender.
Feb 8, 2023
The spike in mortgage interest rates, in response to the highest rate of inflation since the late70’s, has been the focus of the media and our clients. The 400 basis points (4%) spike in mortgage rates, in only ten months, certainly shocked the Real Estate market. Increasing mortgage rates are just one part of the story. As families struggle to pay their bills credit card debt reached a record $930.6 billion at he end of 2022 a 18.5% spike from a year earlier. According to Trans Union the average credit card balance rose to $5,805.00 over that same period. Many clients are shocked to learn that even though they have made all their payments on time their credit score dropped significantly. How does that happen? The Credit Usage Ratio is the second most important factor, representing 30%, in determining your credit score. What is the Credit Usage Ratio? It is your credit card balance as a percentage of your available credit. If your credit card balance exceeds 30% of your available credit, it negatively impacts your credit score. As our clients use their credit cards to pay get by their balances increase and the credit score drops. The more they use their credit cards the lower their credit score goes. “What is my ratio?” is more than my likes on Social Media.
The unintended consequences of increased credit card usage are the surprising and rapid drop in credit scores. In fact, for the first time in over a decade the average FICO score did not increase from the previous year. At the end 2022 the Average Credit Score for ages 23 to 59, representing the majority of our clients, was 669 which is rated “Fair”. What does that mean to my clients? Lower credit scores mean higher interest rates. Lower credit scores limit loan programs. Lower credit scores make getting a loan approval more challenging. The ability of your loan officer to work with your clients to improve their credit score is crucial. FDM has the tools to help your clients increase their credit scores. If your clients are surprised by their credit score, contact us and we can help.
Jan 13, 2023
Every new year brings hope and enthusiasm. This is the reason for New Year’s Resolutions. I will lose weight. I will get to the gym. I will save money. I will spend more time with my family. For many in our business our resolutions are get more clients, close more deals, make more money.
Many of us enter Real Estate or finance careers for the financial benefits. There is absolutely nothing wrong with reaping the financial rewards of achievement in any business. 2020 and 2021 were some of the best years in the history of the Real Estate industry and we experienced a financial gain. 2022 was a very different year as the fundamentals of the market changed impacting personal income.
While reaching personal financial goals is extremely important, it is also important to fully realize the impact we have as an industry on families and the community. What we do changes lives. We help families become homeowners. We change the financial futures of generations. Homeownership is the foundation of generational wealth. We provide the safely and security of home! This amazing result of our efforts sometimes get lost in challenging years.
2023 is a great year to add a renewed purpose of helping families to our New Year’s Resolutions. Remembering the true life changing impact of what we do keeps us energize and excited even when the market is a little challenging. When we are excited and energized, we get more clients, close more deals, make more money. Funny how that works!
Ask us about the FDM Purchase Power a fully underwritten Pre-Approval with a Buy Down Rate Lock Protection. Every is a cash buyer. Find a home the loan is done!