Full Disclosure of Back-End Basis Points

May 17, 2017

One of the questions I often get is whether or not it is worth it to buy down your rate or keep the cash? In most circumstances, buying down your rate just doesn’t make sense. It does not really save you a ton and if you’re moving into a new home you are likely to need the cash for other things. If you have a client who is wondering what is the right answer for them, make sure their lender is providing full disclosure IN WRITING around the costs to buy down the rate and if any lender credits are available. If a lender is only speaking to it verbally, there’s a problem. 

Back in the day, before the Dodd-Frank Act, lenders used to commonly make a basis point on the front of a loan and on the back.  Post Dodd-Frank, lenders should disclose how much it would cost to bring a buyer’s interest rate down and if there are any lender credits available to them. Armed with that, byers should be in a position to make a better decision. This can be a tricky topic–feel free to reach out to me anytime with questions!

 

Geoffrey Davis – Mortgage Loan Consultant 

NMLS #206192
First United Bank & Trust

D: 214-529-9622

F: 855-239-6079
6401 S. Custer Rd.

McKinney, TX 75070          

 


Controversy Continues

May 16, 2017

Investors don’t like the unknown and right now the degree of political drama that’s out there has driven those with money to spend to the sidelines. The firing of FBI Director Comey and the threats N. Korea has directed at the U.S., have created enough tension that the market is staying flat. Initial and Continuing Jobless Claims have hit new lows but April’s Retail Sales with an increase of 0.4% vs. the expected 0.6%. What does this mean? While the economy is still strong, consumer and investors alike are thinking a little harder about how they are spending their money.

Geoffrey Davis – Mortgage Loan Consultant 

NMLS #206192
First United Bank & Trust

D: 214-529-9622

F: 855-239-6079
6401 S. Custer Rd.

McKinney, TX 75070          

 


The Mayor of Frisco, TX

May 7, 2017

‪Congratulations Frisco, TX you went to the polls & voted to #ChooseCheney & today Jeff Cheney is our new #MayorOfFrisco – we all win!!‬


Vote Jeff Cheney for Frisco Mayor 

May 6, 2017

Polls open today till 7pm and then Frisco will have a new Mayor. Locations listed on the image below.


My hope is you will join me in my effort to have my friend Jeff Cheney become that next Mayor! #ChooseCheney 


Happy StarWars Day!!

May 4, 2017


How are you doing in this 2017 technology “arms” race?

May 3, 2017

It sort of feels like that right, you blink and the cool new widget you bought is already out of date!! What will 5 years from now look like?
We are slowly working towards a smart house and I would love your suggestions for Must Haves!!! Nest, Ring, Sonos and Control 4 are a few that have great momentum right now. The more I can run my house from my phone the better for those times wr are away!

An app that runs your sprinkler system, oh my!  

So tell me all you have and/or what are your next buys??!! This note was all written on a soon to be out dated iPhone!


Appraisal Panel: Curse or Blessing?

May 3, 2017

If you have worked in the Real Estate Industry you’ve undoubtedly come across an “Appraisal Panel” when working with various lenders. Mid-year 2009, new restrictions were put in place around how lenders could interact with appraisers. Back when I first started, a Loan Officer could select the appraiser for a specific loan. This was helpful in the sense that mortgage lenders knew who delivered on time and specialized in specific areas–and could count on a certain level of quality. At the same time, it created the potential that a lender might try to influence an appraiser to hit value because of their relationship rather than market-based facts. Hence, the birth of the “Appraisal Panel” and a separation of duties limiting who can order an appraisal.

When it comes to a panel, lenders can opt into one of the national appraiser pools or create a bank-specific local panel that they manage under certain protocols. One of the challenges banks face is discerning who is really an expert in a market. National Panels generally are not able to narrow an appraiser down to specific cities/neighborhoods so it pays to create your own local Appraisal Panel. For instance, an appraiser might select all of Dallas as his/her market. The Dallas metro area is so gigantic there is absolutely no way an appraiser could know the nuances across all these communities. At First United, we have our own local market Appraisal Panels to help lessen the likelihood of getting an inaccurate value and ensure that our buyers are paying fair prices for their home.

Geoffrey Davis – Mortgage Loan Consultant 

NMLS #206192 First United Bank & Trust

D: 214-529-9622

F: 855-239-6079  6401 S. Custer Rd.

McKinney, TX 75070