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Monday, February 2, 2009

Mortgage marketing

By reklicom

Now is not the time to sit and wait for the best possible price. Have a serious talk with your real estate agent. Having experienced buying/selling transactions in your area, he or she can help you price your home accordingly. He or she can also help ensure that your buyers are pre-approved and stay pre-approved throughout the entire transaction.

Then, in 2006, a slowdown in real estate led to a deterioration of home values, an increase in inventories, and ultimately to today's tightening of credit guidelines, leaving many investors unable to sell or refinance out of their existing positions. Many Americans who had tapped into their equity were suddenly tapped-out and overextended as home values fell. Foreclosures followed in record numbers and a re-valuation of mortgage bonds and other financial instruments created the credit/liquidity domino effect we're now experiencing.

Unfortunately, it's going to get a lot worse before it gets better. According to the latest estimates, over 2 million subprime and Alt-A adjustable rate mortgage (ARM) holders will face payment increases of up to 30%-100% when their loans reset in the next 2 to 18 months. These loans make up less than 40% of the total mortgage market, but the negative effects, as we have seen, of increased foreclosure activity can have a ripple effect throughout the industry and around the globe.

Borrowers with less-than-perfect credit: Each week it seems lenders are shedding more and more mortgage products. Many lenders have stopped offering No-Doc loans and are reducing all forms of Stated-Income loans. While it might be challenging, borrowers with credit issues need to see a loan expert. Often they have credit repair resources and other strategies to help you reach your financial goals.

Thou shalt continue to feed thy prospect list. Suspects most surely become prospects, who then become your mortgage customers. Your mortgage customers then generate referrals that create more prospects and the cycle begins anew. For thousands of years, this marketing process (also known as prospecting) has governed all types of marketing activities, and it will continue to do so for another thousand years.

Thou shalt not quit. Remember that Moses and the Israelites wandered the desert for some 40 years and did not give up. You owe it to yourself and your mortgage business to try any new marketing program or idea at least three or four times before moving on. Your contact or prospect could have been out of town the first time you ran it, and on vacation the second. Repetition is always your best friend.

This means that, for any Americans looking to buy, sell, or refinance a home, they are confronting a very different market from the one that existed just 6-12 months ago.

Thou shalt respect and honor not only these humble Commandments, but all of the rules, regulations, and laws of the land that govern both you and your Mortgage Business. You'll notice in all of this, there's nothing mentioned about reading your FHA manual, or the marketing book you just purchased, or the self improvement book that's been sitting on your book shelf the last year or so.

These ideal lending conditions persisted for several years, supported by high demand, historical real estate data, home prices, and massive trading volume/profits on mortgage-backed securities and other financial instruments on Wall Street.

Buyers: Get pre-approved by your mortgage professional. While there are a lot of great deals out there, getting credit is becoming tougher and tougher, and it's taking longer and longer to complete a transaction. Remember, what you qualify for today could change tomorrow in a volatile market. For those looking to refinance, keep this in mind. There is no time to delay! Communicate with your lender. Don't do anything that could negatively affect your credit, and make sure you get all your documentation in on time.

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