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Looking back on 2007, what a whirlwind it has been. This
phenomenon called Agel has re-written history in the Network
Marketing arena. Never before has an emerging company created
such earth-shattering repercussions in the industry.

People thought we were crazy to open in 12 countries. And they
were right. They thought we were crazy to expand so fast
afterward. And they were right. And they thought we were nuts to
add 20 EU countries in one bold stroke. And they were right
again. But those crazy ideas have produced some crazy success!

As you know, at Agel World ’07, there were three of us that
received rings signifying earnings of over $1 million last year.
Do you realize that there are five, ten and 15 year-old
companies that don’t have even one million–dollar earner yet?

Even more important, however, was all the $750,000, $500,000,
$250,000 and $100,000 earners. That is the most gratifying of
all. What is really extraordinary about all this is the number
of those people who came into Agel without previous experience
in the business. This is a testament to the support structure we
have created.

There are really three parts to a support structure this
comprehensive:

* The System: There is a step-by-step system for you to follow.
No matter what your education level, experience, or age,
everyone follows the same proven road map to building
a successful network. We have learned the best ways to build a
network and created a system utilizing all that, so everyone has
the same opportunity for success. The system prevents it from
being all about you, which is the sure path to being a grinder –
and instead provides a framework that anyone can follow.

* The Infrastructure: An important element of the system is
having the proper infrastructure in place to apply it. The most
important element of this is using third party tools, because
that is what will duplicate for the most people. This is where
“The Agel Phenomenon,” “Choosing Success,” the “Vibrant Living
Journal,” and “MLM Rock Star” come in. These are the most
powerful recruiting tools in the business. Make sure you always
have a good supply of these and keep them in circulation. These
resources allow you to get started fast, even if you have never
been in the business before.

* The Training: Another critical element is the training on how
you use the system and the infrastructure – and we’ve certainly
got that covered! Our weekly Leadership Training Calls are very
important for your success and of course the live events. More
about this in a minute. But first some thoughts on making 2008
your best year ever.

The way you close 2007, is going to be how you open 2008. Plain
and simple. You simply can’t say, “I’m going to just lay low
during the holidays and pick things up after the New Year.”
People who do that basically shut down their business from
December 15 to January 02 and they completely destroy their
momentum. Their whole group goes into a coma.

The sad part about this is that the week between Christmas and
New Year’s can be one of your best of the year. People are home
or working half days. They are relaxed and open to looking at
things. And they are already starting to think about their New
Year’s resolutions and what they want to do better and different
in the future.

And because lots of other people stop for the holidays, when you
do anything you get more traction than ever. Now please don’t
get me wrong:

I’m not suggesting you should be making presentations at holiday
parties and dinners. You don’t need to be doing commercials
during the Dick Clark special. Spend some quality time with your
family and other loved ones. But set aside some time for your
business as well. Holiday parties and get togethers mean you
will be meeting lots of new people. Be taking mental notes of
who the sharpest ones are, so you can talk to them later. Set up
your post New Year’s PBR’s NOW. If you wait to start scheduling
them until after the New Year, you’ll lose the first week of
January as well. And that is probably the best single week of
the entire year to get momentum!

If you truly are ready for your greatness, then get your 2008
momentum started right now.

I’m looking forward to getting together with many of you in a
few days in Maui, Hawaii for our annual Leadership Retreat. We
will be at the Grand Wailea Resort, no doubt one of the finest
in the world. You can watch the whales swim by from your room,
the spa is unparalleled, and they have championship golf and
tennis right on site. Get a sneak peak at:
http://www.grandwailea.com

Agel has provided for transportation to and from the airport,
luxurious room accommodations, payment of all resort fees, taxes
and gratuities, the opening reception, arrival amenities and the
closing luau. It is going to be spectacular. The weather is
sunny, light breezes and about 85 degrees Fahrenheit this time
of year.

For you guys attending, a few notes:

The welcome reception is Wednesday night at 7 pm in the Grand
Terrance at the hotel. We’ll be brainstorming our game plan for
the new year. Remember there is also a group activity Friday
afternoon. I suggest you book your spa sessions before you
arrive, to make sure you get what you want.

For you guys who did not qualify for Hawaii, please set your
sights right now on the Black Tie event, before Agel World ’08.
Two years ago, we went on a hot air balloon ride, had a private
show from the skiers at the US Olympic training center, and even
got to ride the bobsled run. This year we had a breathtaking
horse ride through the mountains, ending up in a meadow which
had a string quartet and catered lunch awaiting us! Of course
there is also the formal awards dinner each year. Make sure you
get Black Tie qualified this year.

Speaking of events, there is some very important information you
should know about the upcoming Go Diamond Weekend. This needs to
be the most important priority in your business right now. As in
getting registered, and getting all of your team members
registered as well. Here’s what I can tell you about this year’s
Go Diamond:

Austin has ten Diamonds committed to appear. The Asia Pacific
version in Sydney already has four and more on the way. This
event each year has one purpose and one purpose only: To help
you create the exact game plan you need to become a Diamond
Director yourself. Here’s what else you should know about this
year’s version:

We will be launching three MAJOR business-building innovations…

The first of these will be the “Duplication U” training album.
This album is the replacement for the CDs that used to come in
the Starter Kit. Only they are now updated, expanded and even
more information dense than ever! There are actually ten
different sessions, from Power PBR’s to Amazing ABB’s, working
with long distance lines to building strong volume, from
powerful prospecting to developing depth. This potent new
resource will help your new people get duplicating FAST! (By the
way, you’d probably expect an album like this would cost $300.
You’ll get it for less than 20 bucks!)

The second major innovation is a secret! But I can tell you
this. Imagine if you took the power of the “Phenomenon” DVD, the
effectiveness of the “Secrets of the Multi-Million-Dollar
Producers” CD, AND the Mag Pak – and you created one complete,
thermonuclear recruiting tool! Be there and discover for
yourself. This will revolutionize your prospecting efforts.

Finally the third new resource is probably the one I am most
excited about. It is called, “Your Agel Business Plan.” Think of
it as our current “Fast Start Training” on steroids! It is
actually a 36-page business plan, with a follow along CD, to
take a new team member exactly through the process to Manager or
higher within two weeks. It will guide your new people
step-by-step through setting up their PBR’s, making their list,
setting up their backoffice, ordering their business tools,
talking to prospects, and everything else they need to come out
of the gate smoking.

All three of these resources will be ready and available at the
Go Diamond Weekends. And people who have them will have a few
months head start on those that don’t. And that’s just what you
can get at the breaks!

Remember we’ll be having session after session with our Diamond
Directors sharing exactly how you can become one too. Glen
Jensen, Craig Bradley, Jeff Higginson and other top Agel
executives will be there, so you get a chance to meet and
socialize with them. You’ll be networking and rubbing shoulders
with the biggest stars in the Agel universe all weekend. And of
course Saturday night bring your best glam rock, punk rock, or
whatever outfit for our “I Love the 80’s” costume party!

Be sure and book your flights home after 3 pm Sunday, so you
don’t miss the critical objectives and game planning session
Sunday morning from 9 am to noon.

No matter where in the world you are, it is worth the investment
to fly to this event from anywhere. It will be our best Go
Diamond Weekend ever. But you have to act NOW.

This is the best time to get the airfare bargains. And our room
block at the host hotel is almost gone. As of this morning,
there are only 25 rooms left on the nights of January 25 and 26.
The rest of the hotel is sold out. If you don’t book before
Monday, you will have a real problem finding somewhere to stay.
And once the seats in the convention hall are gone, they’re
gone.

Please go now to: http://www.ateamcentral.com/ and register for
the event if you have not already. You’ll find a link to book
your hotel as well. Then start an email tree and start calling
your front line people and make sure they are done. Your income
for 2008 will be dramatically affected by how many people you
have at one of these Go Diamond Weekends. Please make the most
of it! I wish everyone a healthy, happy and prosperous New Year.
I’ll talk to you on the special Leadership Training Call
tonight. Until then, keep rocking!

-RG

Gennadiy Shan
http://www.TopDeploy.com

I’m evaluating a multi-media course on blogging from the folks at Simpleology. For a while, they’re letting you snag it for free if you post about it on your blog.

It covers:

• The best blogging techniques.
• How to get traffic to your blog.
• How to turn your blog into money.

I’ll let you know what I think once I’ve had a chance to check it out. Meanwhile, go grab yours while it’s still free.

Wednesday, October 10th:

Black Tie Dinner for Senior Directors and above

Thursday, October 11th:

Black Tie Event for Corporate Directors and above

1 – 6 pm: Open registration

Friday, October 12th:

8:30 am: Doors open for Day One of AgelWorld 2007

8:40 am: Preshow begins

9:00 am: Opening ceremonies

9 am – noon: General Session

Noon – 2 pm: Break

2 – 5 pm: General Session

5 – 7 pm: Break

7 – 9 pm: Recognition, AgelWorld Talent Show and more!

Saturday, October 13th:

8:30 am: Doors open for Day Two of AgelWorld 2007

9 am – noon: General Session

Noon – 2 pm: Break

2 – 5 pm: Break out sessions and training

5 – 7 pm: Break

7 – 10 pm: More Recognition, Second Annual Deal or NoDeal and much more!

How to become Agel?

Contact Gennadiy and Tatyana Shan

http://www.TopDeploy.com

October 11-13, 2007
Salt Lake City, Utah, USA

The name says it all…Agel is currently operating in more than 40 different countries worldwide. Top distributors from every region of the globe will be in attendance at AgelWorld 2007 to give and receive the very best training and education, to hear important company announcements firsthand, to celebrate together, inspire each other, and recognize success where recognition is due.

In addition to Agel’s top corporate executives, some of the field leaders who will be presenting at AgelWorld 2007 include: Randy Schroeder, Randy Gage, Eric Worre, Rob and Nicky Horkings, Ann and David Feinstein’s, Billy Looper, Wes Anderson, and Yair and Dori Bar Lev.

Where and how to register

There are two possible ways to register for AgelWorld 2007. You can either print the application attached, fill it out and fax it to (801) 802-0653 or save the application into a word document, fill it out and email it to agelworld@agel.com. You will receive an email confirmation when your application is received.

Download:
AgelWorld07 Application (pdf)

The price of admission includes:

• Admission to all general and breakout sessions
• The first annual Agel Talent Show
• The second annual Deal or No Deal
• Two amazing nights of recognition
• Amazing training by field leadership and Agel corporate
• An evening of entertainment
• Hot new Agel merchandise
• Major announcements you’ll only hear at AgelWorld 2007
• And so much more!

AgelWorld07 Podcasts

Check out Episode 1 at Agelive now!

Additional Information

Hotel Reservations (pdf)
Talent Show Entry Form (pdf)
Talent Show Guidelines (pdf)

How to become Agel?

Contact Gennadiy and Tatyana Shan

http://www.TopDeploy.com

Agel HRT puts your heart in the right place.
A well-functioning heart is essential for good health, and the unique blend of nutrients in HRT can help you achieve the best heart possible. This scientifically formulated and technologically advanced gel is designed specifically to help protect your heart, fuel your myocardial system, and maintain already healthy levels of cholesterol.

HRT can help you maintain existing normal cholesterol levels.
Good news is that, in conjunction with diet and exercise, HRT can help you maintain cholesterol levels already within the normal range.

HRT can fuel and protect your heart.
With its blend of antioxidants and other nutrients, HRT offers the heart energy and protection. Taurine, for example, can maintain heart health, while carnitine helps increase myocardial energy production—and these are just two examples of all the heart-oriented components found in HRT.

Get to the heart of the matter.
The condition of your heart can have a big impact on your life. So eat right and exercise. And to augment your healthy heart lifestyle, consider the unique blend of nutrients found in HRT.

What can HRT do for you?
Here are just a few of the many potential benefits:

• Helps to maintain existing healthy levels of cholesterol*
• Gives your heart energy*
• Helps to reduce damage to the heart*
• Supplements a heart-healthy life*

Download the HRT Fact Sheet (PDF - 60 KB)

More info at http://www.TopDeploy.com

Agel Leadership Retreat 2008

January 2008
Grand Wailea, Maui, Hawaii, USA

We want to see you in Hawaii next January 2-6 for the 2008 Annual Leadership Retreat at the five-star Grand Wailea Resort and Spa in Maui.

It truly is a significant feat and a genuine mark of Agel leadership to be included among those who will be participating in this wonderful getaway. Here’s what you have to do to earn your way there.

Qualifications:

Qualifying Senior Director for five months:

• $2,000 airfare voucher per position
• Room for two

Qualifying Corporate Director for three months:

• $2,500 airfare voucher per position
• Room for two

Qualifying Diamond Director for three months:

• $3,000 airfare voucher per position
• Ocean view room for two
• $400 room credit

Qualifying Double Diamond Director for three months:

• $3,500 airfare voucher per position
• ‘Alii’ suite for two
• $600 room credit

Qualifying Triple Diamond Director for three months:

• $5,000 airfare voucher per position
• Deluxe suite for two
• $1,000 room credit

Qualifying Quadruple Diamond Director for one month:

• $10,000 airfare voucher per position
• ‘Molokini’ suite for two (deluxe suite)
• $2,000 room credit

Get Started NOW!!!

http://www.TopDeploy.com

Contact Gennadiy and Tatyana Shan

1-866-214-3378 - toll free

1-760-672-2473

Want to see pictures of Agel Cruise I won? Click HERE

Eight Keys to MLM Success
If you’re looking at a multi-level marketing opportunity, here are eight key considerations. Look for a multi-level business that has, number one, quality products with a good reputation. Never waste your time trying to sell anything that is not of excellent quality. Quality products are the starting point of your success in business. No successful business can ever be built on an average or mediocre product.

Look for Competitive Prices
Number two, look for a company that has prices that compare favorable with the competition. Remember, nobody’s going to pay more for your product or service if they can get the same or equivalent somewhere else at a lower price. So check the price comparisons.

Demand a Money Back Guarantee
The third thing you look for is a 100 percent unconditional money-back guarantee. In other words, the product must be so good and the company must stand behind it so strongly that they’re willing to give a 100 percent refund guarantee on anything that they sell. That’s a very good rule for starting and building any business.

Learn how to increase your sales and make more money - in any market! Your goal as a sales professional is to sell the very most and earn the very most that you possibly can. As it turns out, it takes just as long to become a sales superstar as to remain an average performer. The choice is up to you.21 Great Ways to Become a Sales Superstar My amazing audio CD will put you on the path to becoming a sales superstar. You will be making more sales and earning more money than you ever have before. Imagine the feeling you get when you close deal after deal and become the top salesperson in your company.Buy this CD now - increase your sales and boost your income! for $13.95

Carry a Small Inventory
The fourth key in finding a multi-level marketing opportunity is that there should be a small or zero inventory requirement. You should be able to get into a multi-level marketing business with very little money. Not more than a hundred dollars.

Keep Good Records
The fifth requirement is that the company provides prompt delivery and efficient internal bookkeeping. A multi-level marketing business that’s well organized will be able to deliver your products within 24 or 48 hours for you to sell, or deliver to your customers. They’ll also take very good care of the books and give you accurate financial statements each month.

Seek a Strong Support Organization
A sixth thing to look for is a strong support organization. This is perhaps as important, if not more important, than anything else. Look for a support organization that will offer you training, that will give you seminars on product knowledge, that will give you motivation, and give you opportunities for personal and business development. Many people who have started with multi-level marketing companies have gone on to be very successful in their own businesses because of the training they got from the multi-level company. If the company doesn’t have a training system, try to find a company that does.

Honesty is the Best Policy
The seventh factor that you require is honesty and integrity. Make sure that the parent company has an impeccable reputation in the marketplace. Remember it has to be a company that you can be proud of. You should never have to make excuses for the company you’re working for.

Product Should be Consumable
Products should be consumable, leading to reorders and repeat business. You should try to sell a product that people use up on a regular basis, so that if they’re happy with it, they’ll continue to reorder and reorder and reorder. And once you get a customer, sometimes you can have a customer for years.

Action Exercises
Here are two things you can do to put these ideas into action:

First, look for a product that you really like, use and enjoy yourself personally. You can only sell something to someone else if your heart is in it. And if your heart is in it you will enjoy using the product yourself.

Second, look for a product that has something new or special that makes it different and better than any other similar product in the market today. The number one reason that any product fails is because it is not superior to and different from the competition.

Agel has applied revolutionary, patent-pending technology to the delivery of nutritional supplements. Gel-based nutritionals are convenient and effective. And Agel made them taste great!

Go to http://www.TopDeploy.com and check it out.

Three little words that mean a lot:

“i am agel”

What do they really mean? And can you say it?

“i am agel” means being physically, mentally, and emotionally engaged…

“i am agel” means getting the nutrition you need, every day…

“i am agel” means taking the stairs, not the elevator…

“i am agel” means reaching out to your family, your neighbors, your community, and beyond…

“i am agel” means you are the last one you think of…

“i am agel” means being counted, being interested, asking questions…

“i am agel” means planning your day and doing the simple but important things consistently…

“i am agel” means learning your business and teaching what you learn…

“i am agel” means finding what is needed in your team and having the courage to step in, step up…

“i am agel” means knowing what makes you happy and taking the time enjoy yourself…

“i am agel” means smiling and being a blessing to any who pass your way…

We live in a cynical world—an “it’s him or me” world. Most succeed by beating others to the punch.

Agel team members who can say “i am agel” succeed only by helping others around them succeed. It’s “one for all,” not “him or me.”

Who will you call today? Who will you listen to? Who will you lift? Who will you teach?

Three little words that mean a lot:
“i am agel.”

Can you say it?

In January, when I made my interest rate forecast for the year I opined that because there were both recessionary and inflationary pressures at work in the economy that what lay in store for 2007 might mirror Bette Davis’ famous line: “Hang on, it’s going to be a bumpy ride.” On February 27th, too late for inclusion in my March newsletter the first of the bumps arrived in the form of the Shanghai Surprise. The “Surprise” started with the Shanghai stock exchange taking a 10% dive, triggering a wave of selling around the world in everything from European stocks to American corporate bonds. Similar in some respects to 1929, the culprits in China were over-confidence and excess liquidity. There, banks were lending money to people to speculate in the market.

By days end, over 3 trillion dollars had been erased from the global economies. Domestically, a drop of 416 points got a lot people’s attention, and the market subsequently recovered most of its lost value and the long overdue correction of 3.3% amounted to little more than a 1-day bounce.

Our tale doesn’t end here, though, nor is it by any means the whole picture. The next bump in road occurred two weeks later when the market took another 242 point tumble on March 13th. The mortgage markets have been in turmoil for the past six weeks as more and more sub-prime lenders report high default rates among their risky borrowers. Countrywide’s sub-prime division reports that 19% of its mortgage payments are in default. Big names like Accredited, Ameriquest, Expanded Mortgage, and Fremont have been adversely affected and New

Century (the second largest sub-prime lender) has been forced to suspend their operations. Mortgage Lenders Network (MLN), Ownit, People Choice, and ResMae Mortgage have all sought bankruptcy protection. As a consequence, shock waves have reverberated throughout the industry and extended into the Alt-A and A paper markets. Guidelines have been tightened and Combined Loan To Values (CLTVs) lowered. Relatively few lenders now offer 100% financing (more familiar to borrowers as 80/20s) below a FICO score of 700; those that do are limiting these programs to only full doc borrowers. Stated income loans can be had but, it will take a FICO score in excess of 700 and the 2^nd is apt to have an interest rate in the 12s and 13s. What a difference a month makes.

As expected, when the Fed met on March 21^st it left the Fed Funds and Prime Rate unchanged at 5.25% and 8.25% respectively. Combating inflation appears to still be it’s primary focus.

A DEARTH OF IDEAS

I’ve noticed that people who are required to do “series” work, whether it be a news column, episodic show or a TV sit-com all share one thing in common–they run short of new ideas or topics to write about, from time to time. When this occurs writers often dramatize actual events as with Law and Order’s slogan “ripped from the headlines”, others borrow popular movie plot lines as with the “Simpsons” and still others ape the formats of well-known celebrities. Alas, I too, have fallen victim to this editorial malaise. So, with apologies to David Letterman the next few month’s topics are going to be a compendium of Top Ten Lists while I go in search of new ideas for this column. Thus, as they say on TV, “so without further ado”, here is this month’s topic:

TOP TEN MISTAKES BUYERS MAKE WHEN BUYING A HOME

1. Looking for a home without being pre-approved.

Pre-approval and pre-qualification are two different things. During the pre-qualification process, a loan officer asks you a few questions, then hands you a “pre-qual” letter. The pre-approval process is much more thorough.

During the pre-approval process, the mortgage company does virtually all the work associated with obtaining full-approval. Since there is no property yet identified to purchase, an appraisal and title search aren’t conducted.

When you’re pre-approved, you have much more negotiating clout with the seller. The seller knows you can close the transaction because a lender has carefully reviewed your income, assets, credit and other relevant information. In some cases (multiple offers, for example), being pre-approved can make the difference between buying and not buying a home. Also, you can save thousands of dollars as a result of being in a better negotiating situation.

Most good Realtors® will not show you homes until you are pre-approved. They don’t want to waste your, their, or the seller’s time.

Many mortgage companies will help you become pre-approved at little or no cost. They’ll usually need to check your credit and verify your income and assets.

2. Making verbal (oral) agreements!

If an agent tries to make you sign a written document that is contrary to their verbal commitments, don’t do it! For example, if the agent says the washer will come with the home, but the contract says it will not–the written contract will override the verbal contract. In fact, written contracts almost always override verbal contracts. When buying or selling real estate, abide by this maxim: Get it in writing!

3. Choosing a lender because they have the lowest rate. Not getting a written good-faith estimate.

While rate is important, you have to consider the overall cost of your loan. Pay close attention to the APR, loan fees, discount and origination points. Some lenders include discount and origination points in their quoted points. Other lenders may only quote discount points, when in fact there is an additional origination point (or fraction of a point).

This difference in the way points are sometimes quoted is important to you. One lender will quote all points, while another lender may disclose an extra point, or fraction thereof, at a later time–an unwelcome surprise.

Within 3 working days after receipt of your completed loan application, your mortgage company is required to provide you with a written good-faith estimate (GFE) of closing costs. You may want to consider requesting a GFE from a few lenders before submitting your application. With a few GFEs to compare, you can get a feel for which lenders are more thorough, and you can educate yourself regarding the costs associated with your transaction. The GFE with the highest costs may not indicate that a particular lender is more expensive than another–in fact, they may be more diligent in itemizing all fees.

The cost of the mortgage, however, shouldn’t be your only criteria. There is no substitute for asking family and friends for referrals and for interviewing prospective mortgage companies. You must also feel comfortable that the loan officer you are dealing with is committed to your best interests and will deliver what they promise.

4. Choosing a lender because they are recommended by your Realtor®.

Your Realtor is not a financial expert. He or she may not know which loan is best for you. Your Realtor® gets a commission only when your transaction closes. As a result, the Realtor® may refer you to a lender who will close your loan, but who may not have the best rates or fees. Also, many Realtors® refer you to one of their friends in the loan business–who also may not have the best rates or fees. Although most Realtors® are professional and concerned about your best interests, it pays to be mindful of caveat emptor—let the buyer beware.

5. Shop for a mortgage broker, not for a rate—that’s their job.

Interview them just as though you were conducting a job interview (which in reality, you are). Don’t be afraid to ask them “Why should I do business with you?” Then sit back and listen to what they have to say. This will tell you more about their character and professionalism than “what’s your rate” because it’s not a question that most of them used to answering. You want a broker who is genuinely concerned about your welfare, not his or her payday. Are you comfortable with him? Does she sound like she knows what she’s talking about? Is he willing to take the time to explain things to you so that you understand what you’re are buying in terms of a loan program and why? Ask them how they shop for their borrowers and how they price their loans.

6. Not getting a rate lock in writing.

When a mortgage company tells you they have locked your rate, get a written statement detailing the interest rate, the length of the rate lock, and other particulars about the program.

7. Using a dual agent (an agent who represents the buyer and seller in the same transaction).

Buyers and sellers have opposing interests. Sellers want to receive the highest price, buyers want to pay the lowest price. In most situations, dual agents cannot be fair to both buyer and seller. Since the seller usually pays the commission, the dual agent may negotiate harder for the seller than for the buyer. If you are a buyer, it is usually better to have your own agent represent you.

The only time you should consider using a dual agent, is when you can get a price break (usually resulting from the dual agent lowering their commission). In that case, proceed cautiously and do your homework!

8. Buying a home without professional inspections. Taking the seller’s word that repairs have been made.

Unless you’re buying a new home with warranties on most equipment, it is highly recommended that you get property, roof and termite inspections. These reports will give you a better picture of what you’re buying. Inspection reports are great negotiating tools when it comes to asking the seller to make repairs. If a professional home inspector states that certain repairs need to be made, the seller is more likely to agree to making them.

If the seller agrees to make repairs, have your inspector verify the completed work prior to close of escrow. Do not assume that everything will be done as promised.

9. Not shopping for home insurance until you are ready to close.

Start shopping for insurance as soon as you have an accepted offer. Many buyers wait until the last minute to get insurance and find they have no time left to shop around.

10. Signing documents without reading them.

Do not sign documents in a hurry. As soon as possible, review the documents you’ll be signing at close of escrow–including a copy of all loan documents. This way, you can review them and get your questions answered in a timely manner. Do not expect to read all the documents during the closing. There is rarely enough time to do that.

MORTY’S MAILBAG

Q. Because we had very good credit (over 700) we were able to purchase a home a few years back and get 100% financing with an interest only loan that was fixed for the first 2 years and adjustable for the balance of the 30 year term. We have paid on it for 2 ½ years and because of the drop in the home prices this past year we owe 11% more than our home is currently worth and can’t refinance it because no one’s willing to loan more than 100% of its value. We went with an interest only loan because it had the cheapest payments. Now that we’re into the adjustment phase, our payments have risen $600 above what we were originally paying and are about to adjust upward, again. I know it’s too late now but, was there anything we could have done to that would have been a better alternative?

A. Since you had good credit it seems that odd that you would opt for a sub-prime loan (2/28s and 3/27s) are the province of sub-prime lenders who have clients with scores in the 500-620 FICO range. If you were a first time buyer, you probably didn’t know any better. With a score above 700 you could have obtained financing for the same or lesser price, although the term of your fixed rate would have been much longer, say 5-10 years, which would have obviated your present difficulty.

A half measure would have been to go with an amortizing loan such as a 40 due in 30 or a 50 due in 30. Either of these would have afforded you some reduction in principal (though in the early years it’s pretty slight) while keeping your payments lower than the interest only payments you’re making now. Even so, this would not have been sufficient to offset the 10% dip in prices that we’ve seen in the past year or two.

Your best alternative would have been to have waited until you had a down payment of 10% saved up. The 10% down payment would have cushioned you against the temporary decline in prices. Had you done this you probably wouldn’t have purchased your property when you did because I surmise you stretched your finances to get into this home. Ironically, if it had taken you another year or two before you were able to buy, you would have bought in near the bottom instead of at the top. As the saying goes, hindsight is 20-20. There are a lot of people in the same predicament as you. Don’t despair. The value of your property will come back in time; you just need to weather the drop in value in the meantime, if possible.

Recipients of the newsletter are invited to Ask Morty any real estate or financing questions. The answer to the question will be answered in the next issue for the benefit of all. Questions may be forwarded via mail phone or fax. (See front of issue for phone and fax numbers). Morty’s email address is Morty@MortgageStraightTalk.com.

CORRECTION

In the last issue I related the actual case history of a doctor and his attorney wife who were in a purchase transaction involving myself and a realtor. In the spirit of full disclosure, I need to make a correction. They did not get the rate I quoted nor did they do their loan with me. At the 11^th hour, a medical colleague told them of a lender with a loan program exclusively for doctors. Coincidentally, I also represented the same lender but the program was available only through the lender’s Retail division that even I, in wholesale, couldn’t beat. Until now, I have never had a borrower beat me on pricing. As the saying goes, I guess there’s always a first time for everything! Nobody beats me on service, however!

WANT TO IMPROVE YOUR FICO?

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MORTGAGE MIRTH

This month’s offering is an oldie, but if you’ve never heard it before it’s new to you.

Q. How do tell when a politician is lying?

A. His lips are moving.

NEXT ISSUE’S TOPIC: TOP TEN MISTAKES BUYERS MAKE WHEN REFINANCING

Rod Haase

Associated Brokers, MLI
http://mortgagestraighttalk.com/
rod@mortgagestraightTalk.com
1-866-214-3378 ext.8584