Hi everyone. Welcome to Ask the Colorado Dream House Team, coming to you live from sunny Denver, Colorado. I’m your host, Dan Polimino. Every Tuesday and Thursday, right here on the show, it’s your opportunity to ask questions about the real estate market. Again, it really doesn’t matter if you’re in Denver or you’re in New York. All of this information comes from years of experience. It’s a lot of great database driven information. Use it for your own particular situation. Or if you’ve got a particular question, remember at any time, you can call us at the Colorado Dream House Team, you can email us, or leave a comment right here on Facebook and we’ll answer your question during the next show. Two things we always like to accomplish each week. We like to give you a market update. Tell you what’s happening in the industry. We like to answer your questions. Today, we’ll also be talking about a special featured property.

The State of Lending

All right. With that said, let’s get to the market update. The topic today is lending. We’re dealing with a lot of people who recently haven’t got a loan in a while. I’m seeing them on the buy side. I’m seeing them on the sell side, dealing with other buyer’s agents and their clients. They just don’t know what the current environment is for lending. In a short word, it’s difficult. There are lots of rules. There are lots of regulations. There’s lots of hoops you have to jump through in today’s lending environment. I really didn’t understand how bad it was for the consumer until I went out and I got a loan for myself, back in March. I was frustrated at times. I was annoyed at times. It seemed like there was a lot of duplicate work over and over again. A lot of the process I didn’t understand why they were asking for something in particular, when it was irrelevant, or I had already provided it, and they wanted it in a different form. They needed some letter of explanation. It goes on and on and on.

I know that it’s frustrating for you guys out there because I felt it myself, but you’ve got to get through it. It’s like trudging through a hard Iron Man. You’ve just got to get through it to get to the finish line. I jokingly say to my clients when we first get started in this process, “Hey at some point, lending’s going to ask us to bring a purple cow to closing. We’re going to go out and get a cow. We’re going to paint him purple. We’re going to bring it.” The story is just, no matter what they ask for, we’ve got to figure out a way to provide it. That is the current status of lending. It’s very difficult. Part of it comes from all of the Dodd-Frank legislation that came down in the last five years or so. It is very restrictive. It is very difficult. Then you had the TRID guidelines that got thrown on a year to a year and a half ago. It’s just more guidelines on top of more guidelines on top of more requirements. Again, it’s very cumbersome.

Here’s hoping that some of that stuff gets rolled back because clearly, the pendulum in lending has swung too far in one direction. It’s just too restrictive right now. That’s my personal update on lending in the market. I’m sure I’ll hear from some lenders that say that I’m full of you know what. That’s fine. Let’s get to today’s questions.

Dear Colorado Dream House Team, what defines mortgage fraud? Well, now that we’re on the topic of lending, it says, “Can you give me some examples?” Well, some examples of mortgage fraud would be lying about your income or producing false documents that prove what your income was. Another instance would be saying that you’re going to be buying the house as a primary residence when you are really going to use it as a rental. In fact, that was probably the biggest abuse of mortgages in lending during the crash, was that most of the problems that came within lending at that time, were people claiming that it was their primary residence, when it never was. Another one would be having a material defect that you know about, in regards to the house, and you’re in the middle of a loan, and you don’t tell or disclose to the lender or underwriter. An example would be, you know the roof is bad. You all decided not to give that information to an underwriter. That would be mortgage fraud. Okay.

What a quick offer means on your home

Dear Colorado Dream House Team, we got a really quick offer on our home, but we’re worried that we may have priced it too low. I hear that a lot. Actually, what I’ve come to find out in these many years that I’ve been in the business, is that you probably priced it right. You didn’t price it too low. You probably priced it right because homes that are priced right in a great location that shows well, get offers right away. It doesn’t really matter the price range. I understand people when they get an offer right off the bat, they’re concerned that they left money on the table and they priced it too low. It’s probably not the case. Rarely do I see that to be the case. Put your mind at rest. You probably priced it right. It’s far better than pricing it too high, getting no offers, and then dealing with the results and the ramifications of that.

What to look for when shopping for a lender

Dear Colorado Dream House Team, when shopping for a lender, what else should I be focused on besides interest rate? Well, for one thing, rapport. Talk to a couple of lenders. See who you feel comfortable with. Whose personality jives with your personality? Do you get a sense that they’re sincere, they’re genuine? Do they have a good track record? What type of fees are they charging? What type of fees are they waiving? If they say we have no fees, well, they’ve got to be getting paid somehow. How are they getting paid? Ask the question. Are they getting a kickback from the mortgage originator, the guy that’s providing the money? How are they getting paid? Nobody does it for free. Okay. Ask all of the questions. How do they handle appraisal? How much does it usually cost? Do you pay for the appraisal? Do I pay for the appraisal? Ask all of the questions. Talk about the closing disclosures and how the whole disclosure process works. Get a good feel for them. If you don’t know what to say, call us at the Colorado Dream House Team. We can help you. All right. I hope that helps.

The featured property this week is … Let me make sure the glare’s not there. Fillmore. 105 Fillmore Street, number 201. It is in the heart of Cherry Creek North. If you’ve been in Denver, and you’ve been in that incredible shopping district of Cherry Creek North, this is right in the heart of it. It’s in the North Creek building. It’s one of the terrific penthouse locations. It’s got 1,300 square feet of patio space. Which as you know, when you’re buying a condo, patio space is prime real estate. It’s really, really hard to find a patio that big. On the patio, you’ve got gorgeous mountain views, gorgeous views of Cherry Creek. The unit itself is a little over 2,600 square feet. It’s a two bed, two bath, really super high end finishes. Go to ColoradoDreamHouse.com/Fillmore and check it out. I think you’re really going to like it.

All right. That’s it for this week. Thanks, everybody. Thanks for the questions. Keep them coming here on Facebook or email us or call us. Everybody have a great weekend. We’ll talk with you again next Tuesday.