Not as Tough as Most Believe

Special Real Estate Report 

How tough is it to get approved for a mortgage? How low can your FICO credit score go before your lender shows you the door? And how much monthly debt can you be shouldering — credit cards, student loans, auto payments — but still walk away with the home loan you’re seeking? You might be surprised. New data from technology company Ellie Mae, whose loan application and management software is widely used in the residential finance field, reveals that even if you’ve got what seems to be a deal-killing low FICO score or you’re carrying a high amount of debt, you still might have a shot at qualifying for a home loan to buy the house you want.

 

Consider some of these findings from Ellie Mae’s latest sampling of recently closed loan applications nationwide: The credit scores of most successful applicants remain well above historical averages, but significant numbers of homebuyers are squeaking through with sub-par scores. The amount borrowers must pay upfront can be much smaller than a lot of buyers sitting on the sidelines might think. The average down payment on Department of Veterans Affairs loans at the end of 2016 was just 2 percent — and that’s higher than the VA’s bare minimum requirement, which is zero down. FHA’s minimum is 3.5 percent and the typical approved applicant came close to that at 4 percent down.

 

So how do buyers with sub-par FICOs, skimpy down payments and high qualification ratios manage to get a home loan? The key is this: They don’t have these negative factors rolled into their applications all at once. If they did, they’d be rejected. If they’ve got a weak FICO, they need strong “compensating factors” elsewhere in their application to counterbalance the credit score deficiency. Maybe it’s a larger down payment than typical, lower than average qualification ratios or higher bank reserves.

 

Source: Ken Harney, The Nation’s Housing

Shared by 
Bob Fisher
McLean Mortgage
Senior Loan Officer
NMLS ID #: 1028088 

Five skill strategies in achieving a 6-figure real estate income

Enjoying the fruits of your labor by having a successful real estate business is what all professionals really want. Real Estate Sales can be tough unless you think Out-Of-The-Box and set yourself apart from typical run of the mill thinking.

If you want to enjoy a lucrative business in real estate that attracts consistent business, you have to be skilled in effective strategies. Everyone has the potential to make it, but if you want to make it bigger than most with consistent growth, then learn to think and behave like a CEO.

After years of firsthand experience in coaching agents and my own real estate business experience, I came up with 5 skills that were common with each of the agents that had mastered success.

"Cindy's secret sauce formula's using her trademarked Master Plan, customized goal platform, and her productive methods to 
drive your business deep is simply
amazing. No one does what she does and I have coached with many of the
lead real estate coaches over the years.
The light came on and led me to a
consistent 6 figure income." S. MeKenney

The first skill is to have a written plan with well managed goals. This plan doesn’t have to be complicated. In fact, simple is best. A one page plan with financial goals broken down into bite sized chunks motivated these agents to follow their goals and associated activities. Every agent found that income grew and they had more control over their business. Each agent credited the weekly contact number formula as being one of the most beneficial and unique in the master plan which are calculated by using a system tool we developed.

The second skill is to be an improved communicator and active listener. Too many of us are on “send”. What that means is we are so focused on what we are going to say, we fail to hear with the other person is saying. Our inability to allow a moment of silence while we think about what someone is saying so we can adequately process what they need, is epic. Active listening is being engaged in listening causing you to absorb what the other person is relaying and what they mean. In fact, when they have finished, it would be acceptable to reply back to them with a summary highlighting your understanding of their communication. There are five other skills that fall under this category so this is just one within this second skill.

The third skill is establishing an excellent follow up plan. Some wise person said that the “Fortune is in the Follow-up”. With today’s technology, finding email marketing isn’t hard, but you want it to be systematic and consistent. We recommend the utilization of an easy to use system that allows for autoresponders that you have loaded with resources and a newsletter as some of the best ways to provide value with a reliable and dependable follow up system. 

The fourth skill is providing activities for lead generation that are valuable to those receiving them. We recommend a monthly newsletter with fun resourceful custom content for the maximum follow up connection to your growing list of followers. Remember, this is where the fan club is built. Just about 90% of your past clients use someone else when they don’t hear from you monthly.  They need to know you care and hear that in the content you send. They need to feel engaged in the resources you provide as well as being part of your community. You are building a fan club, and done right, they will want to be a part of it.

The fifth skill is driving your business deep. Many of the relationships built in a sales business boast surface noise. Driving your business deep can be illustrated in helping other businesses grow by showcasing them in your newsletter or blog postings. Zig Ziglar once said…”If you help enough people get what they want, you will get what you want.” This is an excellent principle to follow. Building other businesses, organizations, and civic clubs is extraordinarily helpful to your own business. This type of marketing brings positive focus on you. By providing educational information from other organizations, you become a resource of value to the community. In turn, these organizations trust you because they know you care and the referrals start rolling in as long as you are consistently delivering.

By adopting these five skill strategies, you can expect to become the master of your business controlling what happens to the outcome.

Cindy Bishop is a Business Development Coach and Managing Director to Cindy Bishop Worldwide

Don’t miss out!

As a young man, I still remember the embarrassment and pain I felt from missing a deadline for a project I was scheduled to turn in for an important grade in college. I am sure most of you can relate to this story. In fact, the term “deadline” comes from a slang description used during the Civil War of an imaginary line used to keep prisoners of war within designated areas. If a POW wandered past this line they were shot!  (Now that’s a deadline!)

Although the deadlines we face don’t cause death we oftentimes think that missing them is just as bad.

So we set alarms, buzzers, and notifications on our phone to remind us of the next MOST important deadline that is approaching.  And then we end up sacrificing what is really important for what is most urgent.  Too often the most urgent things are driven by someone else’s agenda.

Here is an important reminder! Time is running out!  For all the things:

·         -You want to do that will help you become the person you decided you want to be

·        - To have the impact you really desire to have in your life and the lives of those you serve and love

·        - To accomplish the things in your business and work that you know you are truly capable of

·        - And mostly to dream past all of this, to explore the true potential your life has and the influence you can achieve in others

It probably is time to set your buzzers and notifications to those things that are important – and not scramble to meet the deadlines imposed by others urgencies.

 

Blog – David Redabaugh, founder and Chief Solutions Officer of Your Biz Social  - a digital branding agency and social media instructor at Cindy Bishop Worldwide

 

How Real Estate Professionals Can Stay on Track and In Love With the Business with a clear Mission and Purpose.

There’s nothing like a crystallized Mission to clear your vision and help you focus on only the relevant tasks that will make that overriding goal a reality. By first defining a Mission Statement that you can wholeheartedly commit to and identify with, you protect yourself against the Time Bandits like Uncertainty and Busy Work that will leech away your energy and concentration.

Now, many in our business break their Mission down into two statements: one defines their purpose and the other is their personal motivator that gets them up in the morning.

For example:

My Mission is…

To make the buying and selling of real estate as cost-effective as possible, while maintaining the highest level of service. To provide accurate and up-to-date information, skilled analysis and sound real estate advice. To continually explore new ideas and technology, to make the selling and buying of real estate faster, less costly, and easier for the consumer.

My Future Vision is…

To be the leading Real Estate Agent from North to South Richmond, always exceeding my customers’ expectations and providing them with a totally positive service experience.

In short: to provide the best service and to be recognized for it.

You’ll notice that neither statement mentions money. Do you wonder why?

Money doesn’t motivate. What you can do with it might, at least for a while, but ultimately there has to be more to life if you’re going to keep enjoying what you do and being rewarded for it.

Enjoying the business is motivating. Learning new things, interacting with positive people, putting together creative deals – now, that’s motivating. Not wasting your time on extraneous tasks is motivating. And, if you conquer those goals, you’ll be a success and LOVE doing it.

Let’s take a look at how you can optimize your time and stay excited in this business:

Define Your Mission to Reflect Your Goals and Values: What do you want your business to achieve? How do want people to think of you? Don’t get sidetracked by focusing on how much you can make or how soon you can retire – those ideas won’t sustain success. Instead, concentrate on developing your company as a complementary reflection of the best version of yourself. As an agent, you’re in the business of helping people come home. You facilitate them in achieving the life they want and, along the way, you reap the rewards within your own life.

Once you are clear about your goals and direction, you will save yourself inordinate amounts of time. From this point forward, when faced with a new decision, you can simply refer back to your Mission and ask yourself, does it fit? You now also have an encapsulation of your business that you can provide to clients if they’re unsure about your values.

Get Comfortable Saying “No” to the Time Bandits: Success attracts attention from all manner of sources and, especially if you’re a ‘people person,’ you’ll be approached with numerous requests for your time. To stay motivated, effective and efficient, you’ll need to say “NO” (politely) more often. It becomes easier with practice although, at first, you’ll find yourself frequently referring to your Mission and Purpose for clarity. In the end, you’ll discover that your own respect for your time and goals will be reflected by those who come to you. Finally, they will understand what you’re about and what you value in life and business.

Learn from Everything and Keep Exploring: Every mistake or disappointment holds a lesson within, if you choose to learn it. And, once you do, you save time by not repeating that negative experience. Often, such analysis will also uncover new ideas and, if you’re serious about building your business, you’ll want as many of them as possible:

• Identify resources you can trust and draw from them.
• Try new activities and take on learning projects – your brain is a muscle and needs to flex.
• Keep up-to-date with current affairs and local news.

As you accumulate knowledge, keep asking yourself, “How can I apply this idea to my business or personal development?

Associate with Positive People from All Walks of Life: As long as those around you are creative, constructive and energetic, it doesn’t matter if they’re in the same business or not. Their energy will feed your own and you’ll learn more from other disciplines than you would if you limit yourself to just one sector. As a side benefit, this varied interaction also increases your referral base as long as you don’t ‘sell’ yourself.

Train your Assistants and New Associates with Care and actively listen to their ideas and suggestions. Fresh input is vital for maintaining your own motivation, but be careful about how you ask for it. A business will stagnate if the major players are too alike, but they must at least share similar values and goals. Even opposing opinions can be energizing if you keep a sense of perspective and objectivity.

Balance your Business Activities with Rest and Diverse Pastimes: Overworking is not efficient. You make poor decisions and communicate ineffectively when you’re tired, which wastes more time than it saves. Replenish your energy with complete rest and hobbies that totally transport you away from your work activities.

Reward Yourself for Achievements and Completions, and celebrate the success of others. Even if it’s just a small reward like a fancy coffee, take a little time to mark the win, it does wonders for everyone’s motivation.

The combined impact of Mission and Motivation cannot be overstated in terms of how much time they will save you every day. If you can marry the two, you’ll also create a synergy that will energize you even in the slow times and downturns. And, as you and your business mature over time, don’t forget to revisit your Mission so that it remains in harmony with changing goals and refined values.

About the Author:

Cindy Bishop is the CEO and founder of Cindy Bishop Worldwide, LLC; a real estate education, coaching and consulting practice focused on transforming individuals, brokerages and leadership teams to achieve superior strategic business outcomes. Cindy brings extensive business development experience from her corporate and real estate career to guide her clients through educational processes to maximize their potential from start-up, survival, turnaround and growth modes.

VHDA Mortgage Credit Certificates

The Virginia Housing Development Authority (VHDA) has been helping low and moderate income buyers purchase their first homes in Virginia since 1973.  Historically they have done this by offering below market interest rates and 0 down home loans to purchasers who meet maximum income requirements.

 

They are currently offering mortgage credit certificates.  A mortgage credit certificate allows a homeowner to take a tax deduction equal to 20% of the interest paid as a tax credit as opposed to a tax deduction.  This makes the after tax cost of homeownership lower.

 

For example:

In Northern Virginia the annual income limits for a household of 1 or 2 people is $121,900.  For a household of 3 or more, the income limit is $142,300.

 

This program can be combined with Down Payment Assistance grants (though lower income limits apply).

Jeff Divack is the contributor of this article and prides himself on building his business with strong lifelong relationships and educating his clients on the  mortgage process and the wide range of loan options that are available. 

Contact Jeff Divack, Senior VP Intercoastal Mortgage
Cell: 703.867.5644

jeffd@icmtg.com