Blog - JVM Lending

Why We Have to Pull Credit, and Why Buyers Don’t Need to Worry About “Inquiries”

June 18, 2018/in Our Blog /by lindseyh@jvmlending.com

We frequently have borrowers ask us to provide pre-approvals without pulling credit b/c they are concerned about too many “inquiries” on their credit reports. It is, however, impossible to provide a pre-approval without pulling credit. WHY WE HAVE TO PULL CREDIT The below is from the FAQ Section of our website. “Along with your income, […]Read More

Cost Cutting to Prosperity? Not So Much

June 15, 2018/in Our Blog /by lindseyh@jvmlending.com

MAJOR LENDER CUTS COSTS – GOES OUT OF BUSINESS In 2011 when we were in the broker channel, we sent almost all of our loans to a single lender (a major bank) b/c their rates and service were so good. But then in an effort to increase profits, the lender laid off staff and cut […]Read More

Wasting Rent Payments? Another Appraisal Horror Story

June 14, 2018/in Our Blog /by lindseyh@jvmlending.com

APPRAISAL HORROR STORY PART 297 Because we want to always do what is best for our borrowers, we recently switched a borrower from our internal banking channel to the “broker channel” to take advantage of a specific loan product that a wholesale lender was offering. Even though we already had an appraisal in at $512,000, […]Read More

How Do Higher Rates Affect Qualifying? Potentially A Lot.

June 13, 2018/in Our Blog /by lindseyh@jvmlending.com

RATES ARE GOING UP, REST ASSURED We’ve said that at least a hundred times over the years but this time it is a reality b/c the Fed is no longer buying bonds to push rates down, and b/c the Fed is very determined to push rates up in general. We saw a slight dip in […]Read More

A Few Things to Know When It Comes to Condo Financing

June 11, 2018/in Our Blog /by lindseyh@jvmlending.com

Fannie Mae recently loosened their condo guidelines. So, we thought this was a good excuse to share a few condo reminders: A FEW THINGS TO KNOW WHEN IT COMES TO CONDO FINANCING 1. Concentration Rule. No single entity can own over 20% of the units in the complex. It used to be limited to 10%. […]Read More

How to Succeed Like the Simpsons!

June 8, 2018/in Our Blog /by lindseyh@jvmlending.com

I love stories about successful organizations b/c there is so much to learn that can be emulated and blogged about. So, I was extra excited when this story popped up in the WSJ: How To Succeed Like the Simpsons. (As always, if you don’t subscribe to the WSJ, we’ll happily send you key excerpts.) The […]Read More

What to Say To Appraisers? A Lot – But In the Right Way

June 7, 2018/in Our Blog /by lindseyh@jvmlending.com

Ryan Lundquist is a Sacramento appraiser who writes an excellent blog about appraising. It is called the Sacramento Appraisal Blog, and it is chock full of invaluable info. I am sharing a portion of one of his excellent blogs with a great tip below (with permission and full attribution of course). A “cheat sheet” for agents […]Read More

Mortgage Industry Shakeout Is Coming; What It Means for You?

June 6, 2018/in Our Blog /by lindseyh@jvmlending.com

“It’s a brutally competitive market right now,” Weinbach said. “Typically the way this ends up is a shakeout, and the sooner the better.” That is a quote by the CEO of Chase Home Lending at the recent Mortgage Bankers Association conference in NYC. Every mortgage industry executive is predicting a shakeout, and humorously, they all […]Read More

“External Influences” (Busy Streets, BART, Cemeteries, etc.) Can Significantly Impact Values

June 4, 2018/in Our Blog /by lindseyh@jvmlending.com

Real estate agents involved in transactions with external influences sometimes under-estimate their effect and get frustrated when appraisers have difficulty supporting value. The most common problem involves properties on busy through-streets. A loud or busy street near a property can shave as much as $50,000 to $100,000 off the appraised value, depending on the price […]Read More

Leave Money On The Table – If You Want to Be Successful

June 1, 2018/in Our Blog /by lindseyh@jvmlending.com

When I was around seven years old, I loved my oldest brother’s microscope and was constantly sneaking into his room to play with it. My brother did not want me in his room nor did he want me to play with his microscope, so he decided to sell it to me. I can’t remember the […]Read More

The Scary Thing About FHA Interest Rates

May 31, 2018/in Our Blog /by lindseyh@jvmlending.com

WHY WE LOVE FHA I blog often about why we love FHA financing so much: (1) Speed – we can close in 14 days. (2) Flexibility – in regard to credit and debt ratios. (3) Low down payment – 3.5%. (4) Condition – properties can be purchased “as is, and no Section I clearance is […]Read More

Comparable Sales We Can’t Use In Appraisals

May 30, 2018/in Our Blog /by lindseyh@jvmlending.com

Realtors often send our Appraisal Manager comparable sales (comps) that they want our appraisers to use in their appraisals. The problem is that we often cannot use them b/c they are so far outside of appraisal guidelines. Last week was no exception, when we received comps that were in different cities than the subject, 25% […]Read More

Down Payment Assistance (CALhfa) Explained

May 25, 2018/in Our Blog /by lindseyh@jvmlending.com

We offer several Down Payment Assistance programs, even though they have limitations that include higher rates, slower closing times, higher fees, and income caps. Down Payment Assistance programs are, however, sometimes absolutely necessary for borrowers who cannot access enough cash to buy a home. One of the best programs for borrowers with limited cash is […]Read More

Integrity Stories – Extreme Integrity Always Pays Off

May 24, 2018/in Our Blog /by lindseyh@jvmlending.com

STORY #1: GIVING BACK MONEY WHEN NOBODY WOULD KNOW When I closed my first mortgage loan in 1994, the commission check from the wholesale lender was $1,500 too high. Everyone told me to just keep the money b/c lenders were unable to catch errors back then. I needed the money badly but I still sent […]Read More

What Could Bring House Prices (and Rates) Down? The Elephant In The Room

May 23, 2018/in Our Blog /by lindseyh@jvmlending.com

DUDE SELLS TOO SOON! I was at a graduation party yesterday and the host told me how his law partner sold his Silicon Valley home two years ago b/c he was convinced the market had peaked. It hadn’t. The poor guy’s former home has gone up another 20% (several hundred thousand dollars) since he sold, […]Read More

Why Higher Rates Don’t Hurt Home Prices

May 21, 2018/in Our Blog /by lindseyh@jvmlending.com

“When rates go up, home prices will crash!” We have all heard similar statements numerous times, but they are not true. This was addressed recently in another short Planet Money Indicator podcast: Rising Rates Vs. Housing Market. While higher rates increase mortgage payments and decrease qualifying amounts, they do not depress house prices according to […]Read More

If Appraisal Comes In Low, Buyer Not Overpaying; Realtors Buying Properties

May 18, 2018/in Our Blog /by lindseyh@jvmlending.com

When Appraised Value Does Not Equal Market Value We have a buyer who was convinced she was “overpaying” for her property b/c her appraisal came in low. But, there were multiple offers for her property that were very close in price to hers, and there are nearby pending sales that are also similar in price. […]Read More

Buyer Gives Us $360 of Chocolate; Speed, Systems, Appraisals, Teams & Other Stories

May 17, 2018/in Our Blog /by lindseyh@jvmlending.com

SYSTEMS AND INTERNAL APPRAISERS – CLOSED IN 13 DAYS! A buyer recently gave us $360 of specialty chocolate b/c she thought we were getting too skinny. OK – actually, she gave us the chocolates b/c we saved her deal that had blown up at another lender. Her contract price was $720,000, but her appraisal came […]Read More

Rates Hit 7 Year High; The Cost of Waiting

May 16, 2018/in Our Blog /by lindseyh@jvmlending.com

COST OF WAITING IN 2012 In 2012 and 2013, we had a borrower looking to buy in Oakland and she was obsessed with getting the absolute lowest possible price. As a result, she kept walking away from transactions, b/c of $5,000 to $10,000 price discrepancies, even though she was shopping in the $650,000 range in […]Read More

Biggest Cause of Housing Shortage? Your Neighbor!

May 14, 2018/in Our Blog /by lindseyh@jvmlending.com

I am typing this blog from my home office and watching our two Corgis play and hunt in our backyard. Kevin (our male Corgi) in fact just caught a lizard and he is proudly strutting around the yard with the poor thing hanging out of his mouth. (And yes, it is as disgusting as it […]Read More

Friction & Middlemen – No Mas!

May 11, 2018/in Our Blog /by lindseyh@jvmlending.com

The primary reason Uber is so successful is not b/c it has nicer cars, or b/c it is cheaper than cabs. It is successful b/c they removed friction from the transaction. You get to just hop in an out of the car. Amazon is so successful not b/c it has a big selection or low […]Read More

Are We In A Housing Bubble?

May 10, 2018/in Our Blog /by lindseyh@jvmlending.com

The four most dangerous words in real estate: “This time it’s different” 😊 I stole that from a recent Planet Money Indicator Podcast about a potential housing bubble (it’s only 8 minutes long, so I highly recommend it). I blogged about a potential bubble in late 2015 here, and highlighted three potential “Bubble Indicators” from […]Read More

Wanna Get Rich? Get Bad Grades

May 9, 2018/in Our Blog /by lindseyh@jvmlending.com

Heejin and I attended a Strategic Coach event last week, and what I love most about these events is meeting so many successful entrepreneurs who closely follow Dan Sullivan’s teachings and get rich doing so. Most recently, however, there was one success story that really stood out. It involved a young man named Charles. I […]Read More

“Appraisal Management Companies” Explained. Why It’s So Important!

May 7, 2018/in Our Blog /by lindseyh@jvmlending.com

Every mortgage lender is required by law to order every appraisal through an Appraisal Management Company (AMC). AMCs maintain large pools of licensed appraisers who are randomly chosen to appraise properties when appraisal orders are received by the AMC. No loan officer is ever allowed to speak with an appraiser in regard to a particular […]Read More

WSJ: “Facing a Bidding War?” LOCAL is Better; Concerns About Double App’ing

May 3, 2018/in Our Blog /by lindseyh@jvmlending.com

The WSJ recently featured an article called Facing a Bidding War? Why a Local Mortgage Lender May Offer an Edge. (If you’re not a WSJ subscriber, we are happy to email pertinent excerpts upon request) Andrea Gordon, from Red Oak Realty, was quoted extensively. And what I loved is that she sounded like a marketing […]Read More

How To Lower Debt Ratios To Qualify For More

May 2, 2018/in Our Blog /by lindseyh@jvmlending.com

I explained what debt ratios are and how they work in a recent blog. But, I did not explain what borrowers can do to lower them. Here are a few ideas for lowering debt ratios and qualifying for a larger purchase: 1. Put less money down, and use down payment funds to pay off consumer […]Read More

Fast Closes In Slow Markets; Internal Appraisal Panels; We’re VERY Multilingual!

April 30, 2018/in Our Blog /by lindseyh@jvmlending.com

FAST CLOSE IN SLOW MARKET, WITH RENT-BACK One of our most successful buyer’s agents recently got her offer accepted by offering our 14 day close, even though the seller wanted a 30 day escrow. The agent offered our 14 day close with minimal contingencies and a 16 day rent-back, making her offer “as good as […]Read More

“No Points” “No Cost” “No Fees” = Higher Rates – ALWAYS

April 27, 2018/in Our Blog /by lindseyh@jvmlending.com

NO FREE LUNCH IN LENDING Real estate firms are constantly trying to get into the mortgage arena b/c they think it is easy money, and b/c they already have a captured market with their pool of agents. They, however, invariably underestimate how difficult it is to run a mortgage company profitably and compliantly. They also […]Read More

The High Risk of False Assumptions

April 26, 2018/in Our Blog /by lindseyh@jvmlending.com

WONDERFUL STORY FROM TWITTER I read a wonderful story on Twitter last week. The author of the series of tweets was a grad student named Thomas who sat in the front row of his class every day. A gentleman with a thick foreign accent, who Thomas did not know, sat next to him and always […]Read More

Your Lender Is A Reflection On You; Multiple Credit Inquiries OK!

April 25, 2018/in Our Blog /by lindseyh@jvmlending.com

A Few Important Reminders: We were speaking at a Realtor training seminar this week and the leader of the group told a story about losing a valuable client and tens of thousands of dollars of commission money. The reason? He referred his client to a lender with a two-star Yelp average. The client read the […]Read More

Minimum Income To Qualify For Various Price Points; Realistic Goals

April 23, 2018/in Our Blog /by lindseyh@jvmlending.com

Realistic Goals Based on Income and Down Payment Parameters One of the primary jobs of our Mortgage Analysts is to ensure borrowers have realistic home-buying goals. For example, a buyer with $6,000 of monthly income should not be looking to buy in a $700,000 neighborhood unless she has over $300,000 of down payment funds. Realistic […]Read More

Just Make Biscuits

April 20, 2018/in Our Blog /by lindseyh@jvmlending.com

I wrote this blog last July and recently came across it. With so much going on right now in the tech, real estate, mortgage and geo-political realms, I think it is an excellent reminder and message. I was listening to The Investors Podcast recently when I heard an investment guru give excellent advice in response […]Read More

Higher Paid Staff = More Freedom, Better Team, Better Company

April 19, 2018/in Our Blog /by lindseyh@jvmlending.com

MOTORCYCLE TRIPS AND FREEDOM My brothers, sons, nephews and I take a motorcycle trip every summer. As an aside, my three brothers and I all own and run our own businesses. My Mom (who reads this blog) thinks it is b/c she raised fearless entrepreneurs. But, the rest of us realize it is probably b/c […]Read More

Condo vs. Single Family Residence; $400 of HOA Dues = $70,000 Of Purchase Power

April 18, 2018/in Our Blog /by lindseyh@jvmlending.com

$380,000 CONDO vs. $450,000 SINGLE FAMILY HOME What has a higher payment? A $380,000 Condo with $400 in HOA Dues? Or A $450,000 Single Family Residence with NO HOA dues? Answer: The payments are about the same. With 20% down and a 4.5% rate, both will have total payments* of about $2,375 per month. We […]Read More

Condos: 3% Down Instead of FHA; We’ll Walk You Through the Options

April 16, 2018/in Our Blog /by lindseyh@jvmlending.com

IS THIS CONDO COMPLEX FHA APPROVED? We constantly have buyers and Realtors asking us if various condo complexes are FHA approved. We use this Hud Website to see if a condo complex is approved, and our answer is usually no. This is b/c so few condo complexes are FHA approved. We realize this often shuts […]Read More

Lender Credits For Closing Costs

April 13, 2018/in Our Blog /by lindseyh@jvmlending.com

LENDER CREDITS INSTEAD OF SELLER CREDITS Seller credits for closing costs are few and far between in this hyper-competitive market; merely requesting them in fact is often a deal-killer. But – we like to remind Realtors and borrowers alike that lender credits for closing costs remain a viable option for cash-strapped buyers. There are a […]Read More

Home Value Estimates: Agent CMAs vs Zillow vs Appraisals; We Like CMAs

April 12, 2018/in Our Blog /by lindseyh@jvmlending.com

ZILLOW GONE BAD A Realtor we know had to spend over an hour last week explaining to a seller in a high-end market why her house was worth $200,000 less than Zillow said it was. Her property sits on a 1.5 acre parcel, but her backyard is a cliff. Zillow did not account for the […]Read More

In Defense Of Millennials

April 11, 2018/in Our Blog /by lindseyh@jvmlending.com

COMPLAINTS ABOUT YOUNG WORKERS A famous essay claims that young people new to the workforce exhibit: “slipshod assistance, foolish inattention, dowdy indifference, and half-hearted work…” The author went on to complain about the “imbecility of the average [person]” and about the failings of young workers in general in an essay that was well-received and loved […]Read More

Appraisal Waivers – Much Ado About Very Little, So Far

April 9, 2018/in Our Blog /by lindseyh@jvmlending.com

APPRAISAL WAIVERS – FEW AND FAR BETWEEN Appraisal Waivers or “Property Inspection Waivers” (or PIWs) are popping up more often nowadays. This is a good thing b/c they speed up transactions and save borrowers $500 or more. BUT – they are not surfacing so often that we have reason to celebrate. Some lenders are actually […]Read More

Today’s Subprime Is NOT Like Yesterday’s Subprime!

April 6, 2018/in Our Blog /by lindseyh@jvmlending.com

100% FALSE STATEMENT ABOUT SUBPRIME I received a copy of an internally circulated newsletter from a huge real estate firm with the following 100% incorrect statement about subprime lending: “Subprime loans – the type that fueled the Financial Crisis – are making a comeback in a big way. The total volume of loans issued in […]Read More

Equity Lines = Best Bridge Loans

April 5, 2018/in Our Blog /by lindseyh@jvmlending.com

BUYING BEFORE SELLING CURRENT HOME We frequently have borrowers who want to buy a new home before selling their current home. They are afraid if they sell first they will end up either homeless or under undue pressure to buy a home they don’t really like. These people invariably ask about bridge loans (temporary cash […]Read More

3 Best YouTube Channels For Small Business

April 4, 2018/in Our Blog /by lindseyh@jvmlending.com

Because Heejin and I are nerds in the extreme, our idea of a really fun Saturday night is sitting home and watching educational YouTube videos (we’re over TED Talks). We like them short, educational and inspirational for business. Below are three YouTube Channels we absolutely love. 1. Company Man This excellent channel consists of ten […]Read More

Why Rates Will Rise to 5% By Year End; Observations and Effects

April 2, 2018/in Our Blog /by lindseyh@jvmlending.com

TAX TIP The filing deadline this year is not until April 17th, as April 15th is a Sunday, and the 16th is a holiday. Thank you Rob Chrisman for that tip and today’s blog topic (credit where credit is due). WHY RATES WILL HIT 5% My rate quote (below) for today’s blog is at 4.375%, […]Read More

Refi’s Die; Mortgage Industry Shakeout; Cheese Moving

March 30, 2018/in Our Blog /by lindseyh@jvmlending.com

In 2012, 72% of mortgage industry volume consisted of refinancings, or”refi’s” for short. In 2017, refi’s dropped to only 37% of total volume – the lowest percentage in two decades. This is from a recent WSJ article that we will reprint below this blog. 70% of Quicken’s 2017 business was from Refi’s, and that percentage […]Read More

“Love Letters” to Sellers Work! How & Why

March 29, 2018/in Our Blog /by lindseyh@jvmlending.com

URBAN FARMER IS #34 OUT OF 36 OFFER In November I blogged about two urban farmers getting the house of their dreams even though their offer was one of the lowest (#34 out of 36!). The buyers connected exceptionally well with the seller who shared their love for urban farms. You can read the full […]Read More

Best Lender Vs. Best Friend; Does It Matter?

March 28, 2018/in Our Blog /by lindseyh@jvmlending.com

WHY A LENDER’S NAME & REPUTATION MATTER We recently received the below note from a buyer’s agent. We should hire her for all of our marketing because this single note says it all 🙂 “You know, our offer was accepted because of you guys. The listing agent knows how good you are and it really […]Read More

If Property Won’t Appraise, Change Financing!

March 26, 2018/in Our Blog /by lindseyh@jvmlending.com

AGENT KNOWS PROPERTY WON’T APPRAISE We have a buyer who is willing to offer $750,000 for a property with 10% down. The problem is that, according to her agent, “the property will never appraise for more than $680,000, b/c there are no comparable sales anywhere above $680,000.” There are also cash offers so the seller […]Read More

MAKE Yourself Lucky! Article Explains How

March 23, 2018/in Our Blog /by lindseyh@jvmlending.com

One of the most interesting things about the “How I Built This” podcast is how often founders attribute their success to luck. But, according to a recent article in the WSJ, people underestimate how much they create their own luck. The article is short, interesting and very encouraging for anyone in sales or in business […]Read More

“In House” or Direct Lending Explained

March 22, 2018/in Our Blog /by lindseyh@jvmlending.com

STALLED LOANS DURING OUR “BROKER DAYS” Back when we “brokered” all of our loans to other “wholesale” lenders, major underwriting issues would arise, as they often do with all purchases. Our files would then come to a halt and prevent us from closing on time. We were not allowed to speak with our underwriters directly […]Read More

How Mortgage Banks & Loan Officers Get Paid

March 21, 2018/in Our Blog /by lindseyh@jvmlending.com

We are often asked by borrowers and Realtors how we, as a lender, get paid. The answer is that JVM gets paid if and only if a buyer’s loan closes. On a loan with no discount points, our entire commission is earned when our mortgage bank sells the loan to an investor for a premium […]Read More

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