money: 5 tips for First Time Home Buyers!
- 05/27/11 02:22 AM
First, Congratulations on wanting to buy your first new home! NOW, is definately the time! This is not only an exciting time but a stressful one as well. Here are some tips to help you through the process: 1. Ask questions. Ask questions of everyone you can find. I mean EVERYONE! Chances are, they asked or experienced the same question at some point in their own lives. No question is a stupid question. 2. The first question to ask is: "Can you give me a referral to a good mortgage loan officer?" Your GOOD loan officer is going to be as … (2 comments)
money: Buyer/ Seller Checklist!
- 05/23/11 08:20 AM
I have created the GREATEST (if I do say so myself) Buyer/Seller checklists. They allow your buyer/seller to follow the process. What is suppose to happen? Who is suppose to do it? Why it is happening? When should it be done? It also gives ALL parties involved the inside scoop on what questions they should ask of their loan officer to ensure what is suppose to happen, actually does. Feel free to email me at mortgagedr@fcfs.net and Ill forward them to you! The checklists are ARIZONA specific but feel free to request it regardless. May be a good place to start … (2 comments)
money: "I can't buy a new house, I understand it is much more difficult to qualify"...
- 05/23/11 04:17 AM
That statement is just simply not true! I can't tell you the last loan application that I took that a borrower did NOT qualify. I'm sure there was one but it is definately not the norm. I dare you to ask 5 people today, "Could you qualify for a mortgage if you applied today?" If they say "No." Ask "Why?" I guarantee they will say "I understand it is much more difficult to qualify" but they will not have specifics as to what they consider "more difficult". It appears that most are repeating what they hear in the media "Its more difficult … (8 comments)
money: Thank you to all of you tenacious realtors!
- 05/20/11 05:27 AM
Here are some highlights from the recent member survey from NAR: (read the full article here --->) http://rismedia.com/2011-05-18/nar-member-survey-shows-focus-on-training-commitment-to-profession/ These were among the ones that surprised me: The typical NAR member has 12 years of experience; nine out of 10 say they are certain they will remain in the business. NAR members in the business for two years or less earned a median of $8,900, while those in the business for 16 years or more earned $47,100. Sixteen percent earned a six-figure income, reflecting the entrepreneurial aspect of REALTOR® businesses. Fourteen percent of REALTORS® work fewer than 20 hours per … (0 comments)
money: Holy RATTLER!
- 05/19/11 12:11 PM
Ok I just want to publicly apologize to my new neighbors... I am sorry new neighbors! AND publicly THANK Steve from Bulls Eye Pest Control... Thank you Steve! I had to call the Scottsdale Fire Department to my neighborhood TWICE and Steve refused to leave me! Let me explain: I closed on my new house in Troon North at the beginning of May. In my excitement, I have had every contractor available to me, visiting! Today, was Steve's day. Steve is my awesome pest control guy. He was there because there are spiders getting mail, they are so big. The way I greeted Steve today, was by running … (0 comments)
money: To Condo or not to Condo?
- 05/18/11 04:33 AM
Ugh. Condo's. I don't want to be a big downer on condo's but... here it comes. Specifically to Arizona, condo's are increasingly more and more difficult to lend on. There are several reasons for this but primarily the lenders make a distinction between whether the condominium project is warrantable or non-warrantable. Simply put, lendable or not? Conventionally the project needs to meet a miriad of restrictions: (this is the short list.. there are more) * 70% of the units need to be owned and occupied as primary residences. * The HOA cannot be in any litigation with the homeowners. * One owner cannot own … (6 comments)
money: Yay! Lender LOWERS FHA credit score requirement to 580!
- 04/26/11 02:35 AM
I ask you... IF you can get a mortgage with: 1. A 580 credit score 2. Your grandmother can gift you the 3.5% down payment 3. The seller can pay ALL your closing costs 4. (You can have ZERO contribution of your own money) 5. You do not need reserves to qualify. 6. You can get an interest rate below 5% 7. You have more inventory to choose from than eggs at an easter egg hunt. 8. You can have a new mortgage payment less than you are paying in rent. 9. You LOVE your realtor. 10. You LOVE your loan officer. 11. You HATE your roommate. … (5 comments)
money: How does the new Loan Officer Compensation affect YOUR buyer/seller?
- 04/20/11 07:22 AM
First, did you know there WAS new loan officer compensation? There is. Basically (although unbelievably convulated and confusing) the new legislation says that borrowers have 2 options. EITHER to pay their loan origination fee OR to accept a higher interest rate and have the lender paid the loan origination fee. Seems simple, right?Here's where YOU, as their realtor, come in. Does the loan officer that your buyer is obtaining their loan from, even have TWO options? Many lenders are adopting ONLY the lender compensation and ONLY offering the higher rate option to your client. IF you buyer is unaware that their are two options … (0 comments)
money: Do you still have your loan officer?
- 04/13/11 05:04 AM
According to the Mortgage Bankers Association, the mortgage industry workforce has plummeted by 51% since 2006! 12,000 jobs in the industry have been lost in the first two months of 2011 alone! Furthermore, I'm shocked to find many realtors are not aware of the Loan Officer Compensation changes, regulated by the Federal Reserve, that went into affect 4/6/11! Loan officer's are no longer allowed to be compensated by the borrower and the lender in the same transaction. It is one or the other. The bottom line is that the borrower needs to choose whether they want to pay their loan originator or if … (2 comments)
money: Kids and Money... The 3 C's.
- 04/12/11 05:04 AM
Critical. Control. Credit. Critical is #1. Control is 1.1. Credit is #1.2. (All close in line is what I am trying to say) I have talked to my son about all of these since he was a toddler. Little did he know when we were talking about how inappropriate it was for him to be throwing a fit while begging for candy at the grocery store, that we were really talking about his credit report. "You cannot get future great stuff without doing the right thing right now" Critically think first, practice some control and know that credit is like breathing. Re-read that last sentence. If we all … (2 comments)
money: Kids and Money... It doesn't grow on trees!
- 04/11/11 05:34 AM
The money may not grow on trees but it does come from gifts! I encourage my son's family members to gift in the form of CASH. I know. I know. Most gift givers do not want to give cash but it feeds to the rest of my story. #1 He loves the cash. Most family members now give him the gift in the form of individual dollar bills. Admit it, it just seems like more. #2 We practice control. How much to keep? How much to deposit? #3 We make another trip in the "dream car" to the bank. With "whats my … (4 comments)
money: Kids and Money. Goals. Open Account. Compounding Interest!
- 04/07/11 06:20 AM
What is more exciting to talk to your kids about than the magic of Compounding Interest? Ok so maybe thats just me! My son and I started by talking about what he wanted to spend his money on. Initially it was small things he could buy immediately. The more we talked about it, the bigger his "dreams" got. He ultimately decided he wanted to save for his first car. On that note, we drove his "new dream car" to the bank and opened an account. Ask your local bank about accounts specfically designed for kids. Over ice cream, to celebrate, we … (2 comments)
money: Last Mortgage Mistake to Avoid: Not reading your loan documents!
- 04/05/11 05:26 AM
Ok so some things just should be a given. Read what you sign before you sign it! Mark it down. Add it to your list. It's an always not a sometimes. I am not making this up: 99% of my mortgage closings are done at the escrow office however I have probably signed oh, say, 100 mortgage transactions in my career. I would say what, I don't know, 100 of them the client said, "Where do I sign?" before even THINKING about reading the document. What? Ok, call me crazy but I read the fine print on my cereal box. Although … (4 comments)
money: Mortgage Mistakes to Avoid: Sounds too good to be true?
- 03/31/11 05:48 AM
Does the pitch your loan officer made, sound too good to be true? It probably is. If the payment seems, "let me jump out of my shoes in excitement", low... there's a catch. If the rate sounds, "let me run and kiss a stranger", low... there's a catch. Mortgage lending is not rocket science. Use common sense with this stuff and you can usually sniff out anything that is not on the up and up. REGARDLESS of what you might hear from the loan officer! OR you can just call me. We can discuss the specifics. I will likely repeat what I have … (4 comments)
money: Mortgage Mistakes to Avoid: Job Hopping!
- 03/30/11 07:13 AM
In honor of Easter, I thought I would talk about Job Hopping! In this economic environment, it is not unusual for borrowers to have changes in employment however the underwriter is looking for consistency. The underwriter will want to see that your monthly income is consistent and expected to continue into the future. The underwriter isn't necessarily concerned about job changes in the same line of work, however a big career change can be an issue and could require a minimum of a 2 year history. Perhaps, if you are considering a change, you just wait until after your mortgage transaction … (3 comments)
money: Question of the day: How quick can I get pre-approved?
- 03/28/11 09:08 AM
First, YAY that you want to buy a house! Second, YAY that you want to buy a house! I'm stumped as to what most people are waiting for... inventory is great, rates are still great, FHA loan limit in AZ is still $346K and FHA allows for a minimim of 3.5% down payment AND you know a GREAT loan officer! What more could you ask for? Getting pre-approved is easy. All you have to do is apply! You can do that online or over the phone. Once we have your application, your permission to review your credit report and income/asset documentation, we can … (0 comments)
money: Mortgage Mistakes to Avoid: Simply: Applying.
- 03/01/11 03:22 AM
Applying for credit. Yep. Simply applying for credit during your mortgage transaction is a huge mortgage mistake! When qualifying for your new home purchase, the ONLY applying you want to be doing is for your mortgage. There are many things with this: 1. After doing your mortgage research, determine WHO you want to do your mortgage with THEN have THAT loan officer pull your credit report. You do not need ALL of the loan officers you speak to, to be inquiring on your credit. Each inquiry can affect your mortgage credit score. Since mortgages are so tied to credit score, you risk having your … (5 comments)
money: Mortgage Mistakes to Avoid- Assets are NOT income...let me explain:
- 02/26/11 10:32 AM
Gone are the days of no income verification loans. Gone are the days of assets only to qualify. Assets are considered assets on your mortgage application. Income is considered monthly receipt of money. The key distinction there is "monthly receipt of money". Many borrowers assume that if they have retirement assets (they have yet to begin to draw on) they can set up a new monthly draw against those assets and use them to qualify for their home mortgage. Unfortunately unless there is proof of monthly receipt for a minimum of the last 12 months of an INCOME stream from those … (3 comments)
money: Mortgage Mistakes.... "Seasoning" (not salt & pepper) your assets
- 02/23/11 02:22 AM
All the money involved in your mortgage transaction needs to be "seasoned". "Seasoned" simply means it is YOURS and has been yours, and in your account for the last 60 days. Many people don't realize that you cannot deposit unaccounted for money into your account for your mortgage closing. ALL money has to be accounted for and where it came from. Why? The lender wants to see this is YOUR money and not borrowed. Did you borrow the money and will have a repayment obligation that may affect your ability to make your mortgage payment? Mortgage closing funds cannot be borrowed and … (2 comments)
money: Mortgage Mistakes? Check your credit..... well in advance!
- 02/16/11 04:23 AM
Remember, you can request a FREE (if it's FREE, it's for ME!) copy of your credit report annually from www.annualcreditreport.com. This will give you an overview of what is being reporting on your behalf. Credit and credit scoring is CRITICAL to the lending process these days, so knowing what your loan officer will see, ahead of your application, is imperative. Lower credit scores can affect your mortgage interest rate or can you leave you with no approval at all. Once you get your FREE (if it's FREE, it's for ME!) (not be be redundant) credit report, it is important to review … (1 comments)
First, Congratulations on wanting to buy your first new home! NOW, is definately the time! This is not only an exciting time but a stressful one as well. Here are some tips to help you through the process:
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