Robert's Blog

The right lender can help you achieve your goal of homeownership. Here are a few things you should know:

*Your monthly cost for owning a home can be the same, or at times less than the cost you pay in rent. (Especially  when you take into consideration the tax advantage and principal payments that you don't have in your rent check)

*Financing is available with as little as 2.25% down, and there are some special concessions that may drop that down payment to "0" and allow 100% financing.

*VA loans are still "0" down payment, and are a great way to buy if you are a veteran.

Take the step of talking to a trusted lender FIRST, before you go out looking at homes. The worst thing you can do is look at a home you cant afford, or make an offer on a home and then not be able to get a loan.  A good mortgage person will ask you all the right questions to determine the right price range for you, and will even help guide you to buy in the future if you are not quite ready right now.

You could even go as far as getting a full blown approval prior to shopping for a home. In some areas, and with some agents this is almost a requirement.  Personally I thing a strong pre-approval is just as good as an approval, unless there are extenuating circumstances that require a little extra work upfront. Once again, this is the reason to have the right Loan Officer, Mortgage guy or gal, on your side to help tailor a program to fit your financial needs.

A little planning upfront can make the buying process a pleasant and rewarding experience, I truly believe that we will be looking back at 2008 in a few years and will say: "I wish I purchased that house back then!"

Have a great weekend!

Rob

Robert L. Rauf

Countrywide Bank FSB

www.RobertRaufHomeLoans.com

Robert_Rauf@Countrywide.com

(732)505-2470 office

(732)740-0175 Cell

Building financial Security, one buyer at a time

One of the greatest compliments I can receive from a satisfied customer is a referral, do you know anyone with a real estate lending need?

Improving your credit score

It is more important than ever to keep your score high.  Since 12/26/2008 Fannie Mae added significant add ons for credit scores below 680 and there are more changes coming. Rumors are that we will begin to see add ons to interest rate with scores below 720 on Conventional loans. We have also seen PMI Companies significantly restrict lending with low down payments and low credit score.

Here are a few tips to help improve your scores:

Bills. Pay your bills on time. Apart from circumstances like foreclosure, bankruptcy or tax liens, nothing has a greater negative impact on credit scores than late payments. A payment received even one day late is technically considered 30 days late. Pay your bills promptly to avoid late fees and hits against your report.

Debt. Make it a priority to pay down existing debt as quickly as possible within your budget limitations.

Credit cards. Limit the number of credit card accounts you maintain-fewer is generally better. Keeping a few charge accounts active and paying the balance in full by the due date is the optimum scenario and will raise your score. If you must carry a balance, keep overall balances low and use credit cards only for emergencies or purchases that have long-term value. "Maxing out" your credit cards negatively impacts your credit score.

Don't apply for credit you don't need. Applications for credit show up as inquiries on your credit report, indicating to lenders that you may be taking on new debt. Numerous inquiries on a credit report can lower your score. Use the credit you already have to prove your ability to manage credit responsibly.

People with the highest credit scores typically have a long clean credit history with very little debt, balances are one of the big factors that effect your score. Keep your credit cards at a low balance, below 20% of the limit. Cards charged close to the limit or worse, above the limit, significantly impact your score.

 The good news is that FHA does not have any credit score limits and looks at each loan for its individual merits. For many buyers The FHA may be the best way to go even if they have a larger down payments.

Have a great week!

Rob

Robert L. Rauf

WWW.RobertRaufHomeLoans.com

Robert_Rauf@countrywide.com

Cell: (732) 740-0175

Improve Your Listing Pictures

Experts say that propertes advertised online and supported by at least six high-quality photos sell quicker than those using fewer. To boost your listings over the competition, consider these features when purchasing a digital camera:

Panoramic pictures. Panoramic or stitched-together photos are a series of pictures that are joined together, either by using the camera's software, or software bought independently, to create one wide-angle shot. For example, by placing a camera on a tripod in the middle of the room, you can take a number of adjacent shots, stitch them together, and create a 360-degree view of the room.

Image stabilization. Also called anti-shake technology, image stabilization lets you avoid blur while shooting in low-light situations. The camera uses either a gyroscope or special internal software to compensate for shaking hands.

Five-megapixel resolution.A five-megapixel camera will meet the needs of most agents. Your digital photo is made up of elements called pixels. More pixels mean higher-quality photos. A five-megapixel camera, which provides 5 million pixels of resolution, will satisfy your website and email needs, as well as produce excellent-quality print photos up to 11 inches by 14 inches.

Wide angle.To capture the breadth of a room, consider buying a wide-angle adapter for your point-and-shoot digital camera. Adaptors connect using a magnetic ring that mounts with an adhesive strip, and fit the following camera lens diameters: small (10mm to 17mm) and large (17mm to 27mm). Manufacturers include Crystal Vision, Tricod and Bower M. Power.

Have a great week!

Rob

Robert Rauf

www.RobertRaufHomeLoans.com

Robert_Rauf@countrywide.com

Cell: (732)740-0175

Building financial security, one homeowner at at time.

Mortgage rates closed the week well  below 6% for the first time in a few months.  It was a bumpy ride with most lenders seeing rates change 4 times a day and it was a roller coaster ride of ups and downs.  The mortgage market is in the most confused state I have ever seen with huge swings in rates that we rarely see in the industry.  But at least we have a little easter present going into the weekend and it just may help push the spring market!

 In other news, the New expanded FHA and conforming limits are out and with the max now being $729,750 for a single family home in high cost areas(for both conforming and FHA) this could be a big help to get us through the credit crunch of 2007/2008.  It is a temporary increase that will expire 12/31/2008 and it should give the market time to get over its indigestion.

 The rates for loan amounts above $417k and $362K (conv/FHA) will be higher, but much more reasonable than some of the jumbo rates that are currently out there. There are seperate guidelines as well, the most significant being credit score and LTV requirements on the Conventional side.  It will probably take the market a bit of time to settle in on the exact rate for these higher loan amounts since it is new territory for it to explore.

Have a great weekend

Rob

   Every time the FED moves I get calls with the same questions or comments... "I heard the FED lowered mortgage rates."  That is hardly the case. The FED moves the shortest of short term rates, Basically the overnight lending rate to banks. 

   Any time the Fed chooses to cut short-term rates - the action is taken with the expressed intention of stimulating economic growth. Investors in the bond and mortgage-backed securities markets are keenly aware of the fact that accelerating economic growth ultimately leads to an increased demand for capital - which in-turn ultimately pushes mortgage interest rates up. Basically good news is bad news for interest rates, and bad news is good news for rates.

   Mortgages look forward and second guess what the next financial report or FED move may be and trade in anticipation of the data or the FED actions

   Mortgage investors live in the future ... not the present. As a general "rule-of-thumb" a sustained effort by the Fed to stimulate future economic growth through repetitive cuts in the benchmark fed fund rate is not typically the "stuff" that lower long-term mortgage interest rates are made.

   Case in Point, this afternoons FED move ended up being bad news for interest rates.  After the last few days being exceptional ones for Mortgage rates we actually saw Mortgage rates Jump 1/4% after the FED lowered 3/4%...

   I hope this helps explain how the market works.

Rob 

Robert Rauf

Countrywide Home Loans

Countrywide Bank, FSB

(732) 740-0175 Cell

(732) 505-2470 Office

Robert_Rauf@countrywide.com

www.RobertRaufHomeLoans.com  

Building financial security, one home owner at a time  

The highest compliment my clients can give me is the referral of their friends, family and business partners. Do you know anyone with a home lending need?  

Keep In Touch  

 Maintain a long lasting relationship with clients using the KIT principle. Keep In Touch.  Once the deal is done, immediately send a thank you card and include several business cards. Follow up with a customer satisfaction survey asking questions: "Were you satisfied with the process?" "How could I have better assisted you?" "Would you refer me to a family member or friend?" This one-two punch not only shows your appreciation for their business, but also illustrates your concern about the level of service they received.

In addition, maintain a list of client birthdays and anniversaries. Sending something as simple as a birthday card or email will keep your name and your gratitude for their business fresh in the minds of your customers.

Phone calls are another important tactic. Call at least once a quarter to let clients know that you are still there for them. Keep them informed on the market conditions or neighborhood values, and never forget to ask for new business and referrals.

Staying in contact with your clients long after their closing process is complete will keep you in good standing and earn you repeat business and referrals. Research has shown that you need to "touch" your clients every 3 weeks for them to remember you. So keep this in mind when working your data base.

Have a GREAT week!  

 Rob  

Robert Rauf

Countrywide Home Loans

Countrywide Bank FSB

(732) 740-0175 Cell

 Robert_Rauf@countrywide.com

www.RobertRaufHomeLoans.com  

Building financial security, one home owner at a time.

If at First You Don't Succeed...

Once is never enough, especially when it comes to selling.  

A marketing research specialist from Notre Dame once shared this golden nugget: 44% of salespeople make one phone call to a prospective buyer before giving up; 24% make two calls before moving on; 14% make three calls; and 12% make four calls before calling it quits.  That means more than 90% of sales people never make that fifth call. Yet, the same researcher revealed that 60% of buyers don't transact business until they've been contacted a fifth time.  In other words, more than 90% of sales people never give themselves a chance at 60% of the business out there!!!  

To be successful in sales, you must ask for the business more than once. However, try fresh and novel approaches. When following up for that second, fifth or seventh time, offer your prospects a value-added information that can boost their success rate. Establish yourself as a valuable resource, a sales person with answers and solutions.  Maybe motivational speaker Zig Ziglar said it best: "You can have everything in life you want if you just help enough other people get what they want."  

So, make those follow up contacts. Remember, 60% of all buyers are wondering why you are not calling them.    

Have a GREAT week!  

 Rob  

Robert Rauf

Countrywide Home Loans

Countrywide Bank, FSB 

(732) 740-0175 Cell

Robert_Rauf@countrywide.com

www.RobertRaufHomeLoans.com  

 Building financial security, one home owner at a time

Build Your Sphere of Influence  

A sphere of influence is basically a list of people you know and it is the foundation of a successful business. Without Prospects, you wont close deals. Growing and keeping in touch with your Sphere are keys to your success.  

Who do you know? Start with a list and add everyone you know and everyone you meet. Especially important are the people to whom you can refer business, and in turn who can refer business back to you. Don't forget to add your friends, neighbors, extended family to the list, along with all of your past clients. Keep this list updated and keep it growing. But most importantly Keep in touch on a regular basis. The list itself will not make the phone ring unless you work it!  

Increase your Sphere by networking. Remember, networking is not selling. People do business with and refer people to people they know, like and trust. Your networking goal is to get potential clients to know, like and trust you. Here are a few marketing tips:  

* Always Listen to the non Real-estate related needs of people and pair them with somebody who can help. Matchmaking here will most likely be repaid.  

* Publish a personal letter a few times a year and send it to your Sphere of Influence. Revealing personal and family milestones to your sphere can help you connect on a more personal level.  

* Ask referral partners for business if you're directing business to them.  

* Continue to promote yourself as an authority by regularly offering potential clients value-added information.    

(If you have not noticed I am a FIRM believer in this theory!)  

Have a GREAT week!  

Rob    

Robert Rauf                                                        

Countrywide Home Loans

Countrywide Bank, FSB

(732) 740-0175 Cell

(732) 505-2470 Office

Robert_Rauf@countrywide.com

www.RobertRaufHomeLoans.com  

Building financial security, one home owner at a time  

 The highest compliment my clients can give me is the referral of their friends, family and business partners. Do you know anyone with a home lending need?    

Creating Customers for life  

Growing a successful business starts with the decision to be the absolute best Real-estate professional you can be. According to Carl Sewell and Paul B. Brown, Authors of Customers for Life, being the best revolves around turning one-time buyers into life long customers.  Here's how:  

There is no such thing as after hours.  Once committed to good service, you must provide it around the clock. Let people know you are available to them when they need you, whether it's evenings or weekends. Don't worry about people taking advantage of your time. As a rule, they'll only call if they really need help.  

Being nice to people is just 20% of providing good customer service.  Of much more importance is designing systems that let you do the job right the first time, such as a well maintained database and a commitment to educating yourself. All the smiles in the world are not going to help you if you cannot deliver what the customer wants.  

 Don't let your customers feel forgotten.  Communicate with your customers regularly.  Experts say when you increase your mailings to potential clients from just eight to twelve a year you boost your chance of success by 200%.  Finally, a memorable thank-you, such as a card or gift keeps you on your customers' minds.  

 Have a GREAT week!  

Rob    

 Robert Rauf     

 Countrywide Home Loans

 Countrywide Bank, FSB

(732) 740-0175

Cell (732) 505-2470 Office

Robert_Rauf@countrywide.com www.RobertRaufHomeLoans.com  

Building financial security, one home owner at a time  

The highest compliment my clients can give me is the referral of their friends, family and business partners. Do you know anyone with a home lending need?    

Below is an excerpt from an article that Countrywide published a few months
ago, I thought it was some great information to share with you as we start
the new year, especially since interest rates are at a 3 year low:


"Countrywide Home Loans has helped millions of home buyers navigate the
home financing process and identify the best options for them based on
their individual qualifications and financial situation," said Dan Hanson,
managing director of Countrywide Home Loans. "There are still a number of
smart options available to most buyers out there - including those who do
not have perfect credit scores or enough saved to make a 20 percent down
payment."


According to Hanson, rather than get caught up in assumptions and misguided
reports, Countrywide encourages home buyers to know the facts before they
make one of the largest investments of their lifetime. The following are a
few things for potential home buyers to consider:


FACT: Now may be a great time to shop.

Most people buy a home when the time is right for them. And, now may be a
great time to shop given the available home inventory and buyer bargaining
power. Whether you're looking for a newly built home or a re-sell - deals
abound. Just as important as getting the best deal on your new home is
choosing the right home financing solution to close the transaction.
Recently, Countrywide launched its America's Open House campaign to help
ensure home seekers have access to information to make informed decisions.
The campaign has been a resounding success with Countrywide representatives
assisting home buyers at more than 25,000 open houses across the country.


FACT: Most buyers still have a number of mortgage options available to
them.


While access to money for funding home loans has been reduced over the last
few months, and some loan options have gone away, most home buyers are
still able to qualify for a wide array of choices. Those buyers can
leverage the current home buyer's market to get a good deal and then choose
a mortgage they can comfortably manage.


If you're a first time buyer looking to move up into a larger home or even
a buyer with a credit score that is not perfect, explore your options. The
fact is there are still financing options available. For starters, jumbo
loans (loans greater than $417,000) are still available. Additionally, low
down payment options remain available, meaning buyers don't necessarily
need 20 percent down Those with credit scores that are not perfect may well
find that FHA and VA loans can be good alternatives.


FACT: You can boost your bargaining power by employing time-tested tactics.


By taking a few simple steps up front, you can help boost your bargaining
power and increase the odds that your home buying experience is positive
and successful. Two top tactics are: Understand your credit and seek
pre-approval from a reputable lender. This will enable you to shop with
confidence and provide you critical knowledge of your true buying power.


A solid credit history is important when it comes to securing a home loan.
Manage your credit by paying down high interest credit card debt and making
payments on time. Most reputable lenders prefer that long-term debt does
not exceed 32 to 38 percent of a potential buyer's monthly gross income.
For the 12 months prior to applying for a loan, be sure that none of your
bills are past due, and remember to check your credit report and clear up
any errors that appear.


When you're ready to move forward with purchasing a home, partner with an
experienced and reputable mortgage professional to get pre-approved. A
pre-approval is a preliminary commitment from a lender to loan a buyer a
predetermined amount. Lenders base this pre-approval on things like how
much debt buyers have relative to their income, credit history, savings,
and down payment. Obtain a written pre-approval from a reputable mortgage
lender before you start house hunting so you know in advance how much home
you can afford and can gain clout for negotiating a sale price.
Pre-approvals also can speed up the loan process after a purchase contract
is signed and help avoid any last-minute deal breakers.


FACT: Owning a home offers advantages v. renting.


Aside from pride of homeownership, the fact is there are many financial
advantages to owning a home over renting. Homeowners with fixed-rate loans
have the same mortgage payment for the entire life of their loan and avoid
the periodic rent increases experienced by many renters. Homeowners may
also experience income tax advantages that are not available to renters.
The interest paid on a mortgage can be up to 100 percent tax deductible.
After assessing the impact of potential tax deductions, some people may
find that homeownership is ultimately less expensive than renting.
Prospective homeowners should consult with a tax specialist for more
details.


Also unlike renting, which offers no return on the monthly outlay, mortgage
payments for many types of home loans pay down a portion of the principal
balance of the loan each month. In doing so, the homeowner can build equity
in the home, which may eventually be borrowed against for other expenses
like home improvements or college education, if desired.


Have a GREAT week!

Rob

Robert Rauf
Countrywide Home Loans
Countrywide Bank, FSB
(732) 740-0175 Cell
Robert_Rauf@countrywide.com
www.RobertRaufHomeLoans.com

Building financial security, one home owner at a time

The highest compliment my clients can give me is the referral of their
friends, family and business partners. Do you know anyone with a home
lending need?