Found 6 blog entries tagged as Bob Ruth.

 Chances are good your buyers are not approved at all…they’ve only been pre-qualified

Shocking headline, isn’t it?  Hard to hear the truth sometimes, but I am going to tell you that in my experience, the bulk of Pre-Approval letters being given to Real Estate agents by Loan Originators are just plain worthless.  They are being written to get the buyers a house, but the protection/reassurance the seller is looking for that tells them the buyers really are qualified does not exist.  Welcome to Fantasy Island.

My intention in writing this is two-fold: first, to let you know about this situation, and second, to give you some suggestions for getting a comfort letter that is worth the paper it is printed on.

Frequently a Realtor will refer me one of…

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Written by Robert H. Ruth

 

Second home season is officially here!  While buying a primary residence is a substantial commitment financially, with long ranging impacts, purchasing a second / vacation home is an even larger commitment, so careful deliberate planning is paramount if you are in the market to purchase a second home this year.   Here are five important issues to consider when contemplating a second home purchase:

 

How familiar are you with the area?

  • Buying a home as an annual vacation destination or to use on weekends or Holidays is a very serious commitment. You better make sure you like the area you are purchasing in because you’ll be spending a huge amount of your free time there. Many buyers I work with have…

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Written by Robert H. Ruth

Every year since 2013 the National Association of Realtors (NAR) has published a report looking at trends among buyers and sellers in the Real Estate Industry from the previous year. I’ve always eagerly anticipated this report because it provides excellent insights into the composition of the Real Estate marketplace. This year I thought I’d share some of the more significant findings that are pertinent to home buyers since that is the focus of my blog posts here. If you want to see the report for yourself, I have provided a link for you to download a pdf version here: CLICK HERE

The introduction of the report has much useful information about the composition of buyers in the Real Estate marketplace .  Here are what I…

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Written by Robert H. Ruth

This is a topic I discuss with borrowers most every day, so I thought you’d like to know the components of your credit score.  According to Fair Issac Corporation (FICO), “the score is calculated from many different pieces of data in your credit report, and the data is grouped into the 5 categories below.” Here they are with the approximate weighting assigned to each category:

 

  • Payment History : 35%
  • Amounts Owed :  30%
  • Length of Credit History:15%
  • New accounts Opened :10%
  • Mix of Credit :10%
  • Total: 100%

Let’s see what each category represents:

Payment history: 35%

This tells whether you have paid your credit card accounts on time in the past.  If you make all your payments on time each…

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boat2_698

(Written by Bob Ruth) The first step in buying a home is deciding how much of a payment you can afford. This is usually done with the help of a loan officer who will try to get you pre-qualified for the necessary financing to buy a house. Getting pre-qualified before you go and look at houses is the best option in my opinion for 3 reasons :


1 -  You'll go out knowing how much you can afford which saves time.

2 – You’ll be less likely to look at houses that are beyond your ability to purchase...nothing is worse than falling in love with a house only to find out that you cannot get the financing because it is beyond your means financially.

3 -  The Realtor will be able to negotiate more effectively for you due to the fact that you can tell…

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attawan1_699

In processing a borrower’s paperwork, it can seem like we fail our way towards the closing and then ask our customers: “How was the trip?” But in reality we should be guiding the customer towards the closing based upon our expertise…for many borrowers in the marketplace this is not happening. We should be saying, “This is the route you must follow to get where you need to go.”

There may be roadblocks and obstacles along the way and at times the journey to home ownership can be bumpy, but the Loan Officer should view their job as that of a guide…one who helps the borrower reach their ultimate destination.

Think of a good tour guide or a concierge you may have encountered while traveling. Not only is the guide familiar with the area to be…

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