a. Assume you will take the listing.

b. Assume you will take it at your price.

c. Assume they will be cooperative.

d. Assume authority and control.

2. Here are a few examples of how you can be more assumptive. Let’s practice these out loud together.

a. “When you list with me…”

b. “After you sign the contract tonight…”

c. “Now that you’ve chosen me as your agent…”

d. “During the time that we’ll be working together…”

e. “Each week when we talk…”

f. “Now that I am working for you”

g. “When I sell your home…”

h. “When I bring you an offer…”

3. Demonstrate your power and authority. Always keep in mind the number of homes you’ve sold versus how many they have sold.

4. Decide on the following before you go on a listing presentation:

a. Price.

b. Commission.

c. Length of the listing contract.

d. How many referrals you expect them to give you.

5. The only monetary adjustments should be their price (down) and your commissions (up).

6. Selling is asking a series of questions that lead your prospect to a desired result.

7. The more you talk…

a. The more you go over the price listing.

b. The lower your commission will be.

c. The larger your promises become.

d. The longer you are there! Stop talking and starting selling!

8. To establish authority, ask them to review some paperwork while you preview the home. For example: Hand them a list of common objections & your solutions or the “Where Buyers Come From” chart.

9. Let’s practice this script too… “These are two kinds of agents…The kind that tell people whatever they think is necessary to take the listing…versus agents…like me…who will tell you the truth about what it will take to get the home sold…Mr. & Mrs. Seller…do you want the truth?”

10. Learn to present your CMA powerfully & with authority.

11. Your business is only as good as your presentation.

12. Let’s practice another script… “Mr. & Mrs. Seller, this is what homes are selling for…and this what homes are not selling for…I’m going to recommend we price your home in the first category…let’s price your home at $299,900…okay?”

13. Set up at your listing presentation that you will be contacting them weekly for three reasons:

a. To discuss how the market is reacting to the list price of your home.

b. What connective actions they should take.

c. To find out who else they know who wants to buy or sell real estate.

14. To simplify this process: record all your listing presentations.

15. There are three questions every seller wants answered:

a. What will my home sell for and why?

b. How quickly will it sell?

c. Can you do it?

16. When you have a listing where there are few or no showings, it means the property is overpriced. And, if there are a lot of showings and no offers, the property is still overpriced. Even in a hot market.

17. One of the most difficult things for an agent to accept is that a certain percentage of the time you are not going to get the listings no matter what you say or do.

18. Remember you are the one who decides if the listing contract will be signed…not the seller.

 This weeks economic calender consists of new homes sales on 7.26, Durable Orders and Beige Book on 7.28, and GDP (most important data) as well as Chicago PMI on 7.30. 

Conforming Limits:

1 unit $417,000;   2 unit $533,850;    3 unit $645,300;    4 unit $801950                              

These rates do not reference a specific loan program; rather, they reflect general market conditions, which are subject to change at any time. 

Credit risk pricing and how it impacts your interest rate/discount points (cost to buy rate down): 

• Rates change daily – Mortgage loan interest rates and discount points are driven by the prices of Mortgage Backed Securities.
• Credit (fico) Scores – Lenders look at your mid credit score (typically 3 credit bureaus) to determine you credit risk.  A+ credit would be 740 and above.  From there they are categorized in 20 point increments (720-739, 700-719, 680-699, 660-679, 640-659, 620-640, no fico)
• Loan to value – Typically the lower the loan to value (LTV), the lower the risk.  Loan to values of 60% or less are considered the lowest risk
• Transaction type – The risk level from low to high – Purchase, rate and term refinance, and cash-out refinance.
• Transaction type continued – The risk level from the low to high – Primary residence, second home and investment property
• Property type – Single family residence, PUD, condo then 2-4 unit properties.
• Escrow account – If your LTV is 80% or lower, then you have the option to waive escrows (taxes and insurance included in monthly payment), but it can affect your discount points.

THERE ARE NUMEROUS LOAN PRODUCTS AVAILABLE:  

  Conforming – Loans designed for primary, second and investment properties.  There are restrictions in regards to loan amount (SFR is typically 417,000, but in some areas it may be higher). 

  Non-Conforming – .  Typical loan amounts above 417,000.00. 

  FHA- 30 year amortized loan.  3.5% down required by the borrower (can be gifted by an acceptable source). 

  VA- Guaranteed by the federal government based on the amount of entitlement to the veteran in conjunction with the loan amount.

 You are not alone!

Here is the skinny!! 

1)     First, IF IT SEEMS TOO GOOD TO BE TRUE, IT PROBABLY IS.  Mortgage money and interest rates all come from the same places, and if something sounds unbelievable, it’s better to ask a few more questions and find the hook. Is there a prepayment penalty? If the rate seems incredible, are there extra fees?  What is the length of the lock-in? If fees are discounted, is it built into a higher interest rate? 

2)    YOU GET WHAT YOU PAY FOR. If you are looking for the cheapest deal out there, understand that you are placing a hugely important process into the hands of the lowest bidder. Best case; expect very little advice, experience and personal service. Worst case; expect that you may not close at all. All too often, you don’t know until it’s too late that cheapest isn’t BEST. But if you want the cheapest quote – head on out to the Internet, and we wish you good luck.  Remember that the cheapest rate on the wrong strategy can cost you thousands more in the long run. This is the largest financial transaction most people will make in their lifetime.  

3)    MAKE CORRECT COMPARISONS. When looking at estimates, don’t simply look at the bottom line. You absolutely must compare lender fees to lender fees, as these are the only ones that the lender controls. Be sure to check that lender fees are not “hidden” down amongst the title or state fees. A lender is responsible for quoting other fees involved with a mortgage loan, but since they are third party fees – they are often under-quoted up front by a lender to make their bottom line appear lower, since they know that many consumers are uneducated and simply look at the bottom line!  APR?  Easily manipulated as well, and worthless as a tool of comparison. 

4)    UNDERSTAND THAT INTEREST RATES CAN CHANGE DAILY, EVEN HOURLY. This means that if you are comparing lender rates and fees – this is a moving target on an hourly basis. For example, if you have two lenders that you just can’t decide between and want a quote from each – you must get this quote at the exact same time on the exact same day with the exact same terms or it will not be an accurate comparison. You also must know the length of the lock you are looking for, since longer rate locks typically have slightly higher rates. 

5)    UNDERSTAND THAT INTEREST RATES AND CLOSING COSTS GO HAND IN HAND. This means that you can have any interest rate that you want – but you may pay more in costs if the rate is lower than the norm. On the other hand, you can pay discounted fees, reduced fees, or even no fees at all – but understand that this comes at the expense of a higher interest rate. Either of these balances might be right for you, or perhaps somewhere in between. It all depends on what your financial goals are. A professional lender will be able to offer the best advice and options in terms of the balance between interest rate and closing costs that correctly fits your personal goals. 

1. Rates – Fixed or adjustable
2. Discount Points - are fees paid to the lender or broker for the loan and are often linked to the interest rate; usually the more points you pay, the lower the rate (buying rate down).
3. Loan Origination Fee – fee paid to lender/broker in form of a percentage of loan amount or flat fee for processing the loan
4. Fees - A home loan often involves many fees, such as processing or underwriting fees, broker fees, and transaction, settlement, and closing costs. Every lender or broker should be able to give you an estimate of its fees

Mortgage worksheet that helps you clarify the closing costs a lender has control over: 

  Whether you are dealing with a lender or a broker may not always be clear. Some financial institutions operate as both lenders and brokers. And most brokers’ advertisements do not use the word “broker.” Therefore, be sure to ask whether a broker is involved. This information is important because brokers are usually paid a fee for their services that may be separate from and in addition to the lender’s origination or other fees. A broker’s compensation may be in the form of “points” paid at closing or as an add-on to your interest rate or both.

To help you find the right financing, you want an experienced person with connections to competitive rates and a wide range of programs. That would be Jim Hungerford (CELL 971-226-8403), serving California, Oregon and Washington

1 unit $417,000;   2 unit $533,850;    3 unit $645,300;    4 unit $801950                              

These rates do not reference a specific loan program; rather, they reflect general market conditions, which are subject to change at any time.

Credit risk pricing and how it impacts your interest rate/discount points (cost to buy rate down):

• Rates change daily – Mortgage loan interest rates and discount points are driven by the prices of Mortgage Backed Securities.
• Credit (fico) Scores – Lenders look at your mid credit score (typically 3 credit bureaus) to determine you credit risk.  A+ credit would be 740 and above.  From there they are categorized in 20 point increments (720-739, 700-719, 680-699, 660-679, 640-659, 620-640, no fico)
• Loan to value – Typically the lower the loan to value (LTV), the lower the risk.  Loan to values of 60% or less are considered the lowest risk
• Transaction type – The risk level from low to high – Purchase, rate and term refinance, and cash-out refinance.
• Transaction type continued – The risk level from the low to high – Primary residence, second home and investment property
• Property type – Single family residence, PUD, condo then 2-4 unit properties.
• Escrow account – If your LTV is 80% or lower, then you have the option to waive escrows (taxes and insurance included in monthly payment), but it can affect your discount points.

THERE ARE NUMEROUS LOAN PRODUCTS AVAILABLE:

Conforming – Loans designed for primary, second and investment properties.  There are restrictions in regards to loan amount (SFR is typically 417,000, but in some areas it may be higher). 

Non-Conforming – .  Typical loan amounts above 417,000.00.

FHA- 30 year amortized loan.  3.5% down required by the borrower (can be gifted by an acceptable source).

VA- Guaranteed by the federal government based on the amount of entitlement to the veteran in conjunction with the loan amount.

Rural Housing- Must be in rural housing area.  100% financing based on appraised value.  Adjustable household income cannot exceed the maximum allowable income limits (currently suspended).

All-in-One Construction –   one time close for both conforming and non-conforming.

Other products available

ANY QUESTIONS REGARDING THIS INFORMATION PLEASE CONTACT:

Jim Hungerford at 971-226-8403

Experts have differing opinions/views as when to refinance.  Unfortunately, there is no magical rule fo thumb that covers every situation.  

**IF THE REFINANCE BRINGS YOU BENEFIT, THEN IT MAKES SENSE TO DO!!**

Home refinancing should be done when your financial situation can be improved.  Refinancing can help with lowering your monthly debt load, pay-off outstanding debt and converting from variable rate products to fixed rate.

A couple of questions you need to ask yourself:

1)  How long do I plan on keeping the loan?

2)  What am I trying to achieve with the loan (lower rate, monthly payment, pay-off debt or peace of mind for fixed product)?

3)  Does your current loan fit your lifestyle (fixed vs variable, term of loan)?

Would refinancing be worth it?  Refinancing does not make sense for all, but it does have its place.  The old rule of thumb was if  your current rate is 2% higher than the current market rates, then it was worthwhile.  This philosophy does not hold true in today’s market.  Lenders have a variety of options when it comes to structuring  loan scenarios!  Depending on the  loan amount and the particular circumstances, it may make sense with as low as a .5% rate swing.  The bottom line is what is the breakeven point!!

The  breakeven point is the guts of the refinance:  Over the period of time you stay in your home, will the savings from the lower mortgage payment (PI) be greater than the upfront cost of the loan.    The upfront costs would be any closing costs/discount points that you either include in the loan or pay out of pocket.

Factors to consider:

1)  Your current rate

2)  What is the new rate

3)  Closing costs associated with new loan

4)  How long do you plan keeping loan

A simple yet not perfect way to determine the breakeven point - the closing cost/discount points  of the new loan divided by the reduction in the principal and interest payment of the new loan (old PI – new PI = monthly savings).

Home refinancing may work best for individuals looking to staying in home for 5 years or longer.  You need to know the exact purpose for which the refinancing will be used for. 

THE PERFECT LOAN APPLICATION

If there has been a down tick in the market place, then you should consider looking into refinancing!

Please feel free to contact Jim Hungerford directly with any questions at 971-226-8403.

Conforming Limits:

1 unit $417,000;   2 unit $533,850;    3 unit $645,300;    4 unit $801950                              

These rates do not reference a specific loan program; rather, they reflect general market conditions, which are subject to change at any time.

 Credit risk pricing and how it impacts your interest rate/discount points (cost to buy rate down):

 Rates change daily – Mortgage loan interest rates and discount points are driven by the prices of Mortgage Backed Securities.

• Credit (fico) Scores – Lenders look at your mid credit score (typically 3 credit bureaus) to determine you credit risk.  A+ credit would be 740 and above.  From there they are categorized in 20 point increments (720-739, 700-719, 680-699, 660-679, 640-659, 620-640, no fico)
• Loan to value – Typically the lower the loan to value (LTV), the lower the risk.  Loan to values of 60% or less are considered the lowest risk
• Transaction type – The risk level from low to high – Purchase, rate and term refinance, and cash-out refinance.
• Transaction type continued – The risk level from the low to high – Primary residence, second home and investment property
• Property type – Single family residence, PUD, condo then 2-4 unit properties.
• Escrow account – If your LTV is 80% or lower, then you have the option to waive escrows (taxes and insurance included in monthly payment), but it can affect your discount points.

THERE ARE NUMEROUS LOAN PRODUCTS AVAILABLE:

 Conforming – Loans designed for primary, second and investment properties.  There are restrictions in regards to loan amount (SFR is typically 417,000, but in some areas it may be higher).

Non-Conforming – .  Typical loan amounts above 417,000.00.

FHA- 30 year amortized loan.  3.5% down required by the borrower (can be gifted by an acceptable source).

VA- Guaranteed by the federal government based on the amount of entitlement to the veteran in conjunction with the loan amount.

Rural Housing- Must be in rural housing area.  100% financing based on appraised value.  Adjustable household income cannot exceed the maximum allowable income limits (currently suspended).

All-in-One Construction –   one time close for both conforming and non-conforming.

 Other products available

 ANY QUESTIONS REGARDING THIS INFORMATION PLEASE CONTACT:

Jim Hungerford at 971-226-8403

Economic activity next week: 

Mon 6/28
Personal Income 

 Wed 6/30
Chicago PMI 

 Thur 7/1
ISM Manuf.
Pending Sales 

 Fri 7/2
Employment 

2. The purpose of qualifying is to identify needs, wants, desire timeframe, motivation, money, trust and “do I want to work with this person?”

3. Qualifying sets the tone for your business relationship. Therefore, when you qualify you are establishing authority & control from the start.

4. If they sound bad, then they probably are.

5. When it sounds too good to be true, ask more questions.

6. Trust your gut when you are qualifying.

7. Ask the tough questions, dig deeper in the gray areas.

a. Can you tell me more about that?

b. I’m unclear; can you describe that in more detail please?

8. If they are tough with you up front or won’t answer your questions, it will most likely get worse.

9. Qualifying answers the question, “Is this person worth my time?”

10. Always ask, “Before I see you, is there anyone else I need to speak to?”

11. If you want more of a balanced life, don’t go on unqualified appointments.

12. When qualifying, find out what’s most important to your prospect and use it to sell them later. For example, use the criteria questions:

a. What’s important about (morning/afternoon)?

How’s that important to you?

Ultimately, what will all of this do for you?

b. Fortunately, to get you one-step closer to (e.g. moving), all we need to do now is (e.g. action) so I can help you get what you want…in the time you want…won’t that be great?

1 unit $417,000;   2 unit $533,850;    3 unit $645,300;    4 unit $801950                              

These rates do not reference a specific loan program; rather, they reflect general market conditions, which are subject to change at any time.

 Credit risk pricing and how it impacts your interest rate/discount points (cost to buy rate down): 

• Rates change daily – Mortgage loan interest rates and discount points are driven by the prices of Mortgage Backed Securities.
• Credit (fico) Scores – Lenders look at your mid credit score (typically 3 credit bureaus) to determine you credit risk.  A+ credit would be 740 and above.  From there they are categorized in 20 point increments (720-739, 700-719, 680-699, 660-679, 640-659, 620-640, no fico)
• Loan to value – Typically the lower the loan to value (LTV), the lower the risk.  Loan to values of 60% or less are considered the lowest risk
• Transaction type – The risk level from low to high – Purchase, rate and term refinance, and cash-out refinance.
• Transaction type continued – The risk level from the low to high – Primary residence, second home and investment property
• Property type – Single family residence, PUD, condo then 2-4 unit properties.
• Escrow account – If your LTV is 80% or lower, then you have the option to waive escrows (taxes and insurance included in monthly payment), but it can affect your discount points.

 THERE ARE NUMEROUS LOAN PRODUCTS AVAILABLE:

Conforming – Loans designed for primary, second and investment properties.  There are restrictions in regards to loan amount (SFR is typically 417,000, but in some areas it may be higher).

Non-Conforming – .  Typical loan amounts above 417,000.00.

FHA- 30 year amortized loan.  3.5% down required by the borrower (can be gifted by an acceptable source).

VA- Guaranteed by the federal government based on the amount of entitlement to the veteran in conjunction with the loan amount.

Rural Housing- Must be in rural housing area.  100% financing based on appraised value.  Adjustable household income cannot exceed the maximum allowable income limits (currently suspended).

All-in-One Construction –   one time close for both conforming and non-conforming.

 Other products available

ANY QUESTIONS REGARDING THIS INFORMATION PLEASE CONTACT:

Jim Hungerford at 971-226-8403