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How A Mortgage Broker Bought His First House...

By
Services for Real Estate Pros with Auto & Home & Life Insurance throughout North Carolina

 When I began my journey into Real Estate, there was a chance that I not only was to switch careers, but to change my living situation.  Actually, that wasn't a chance, that was a necessity.  At that time, the building I was living in, a very historic one at that, was being shut down by the city of Allentown.  My natural reaction was to see if I could stand a chance of being able to buy a home.  I just wanted a place to freaking live.  It was peculiar really, my income was fine at the time, my credit was impeccable, and I had money in the bank....just in case.  When I started with First Choice Equity Group Inc, one of my first initiatives was to pre-approve myself for a Mortgage, so I had a place to live.  I was pre-approved in a jiffy, I was deemed a more than adequate borrower.  I never went through with it though, I had to move....and fast.  Thus, my living arrangements became somewhat complicated over the next few years.

The jump was made from the Restaurant Industry into the Real Estate Industry.  Then, the proverbial fudge hit the fan for little old me.  Honestly, even though the industry was at a financial high, I was at a personal low.  My income suffered, my credit tanked, my personal well being was in jeopardy at times.  I was in a place I never was before....financial disarray.

It was around that time that I suddenly became encompassed with money, wanting to make it one less worry in life.  I guess when you get collection calls on your cell phone at closings, reality sinks in.  I had a goal.  I was so far away from buying a house at that point....but I wanted to make sure I was back at that point sooner rather than later.  I won't go into the details of my existence, but I will tell you how I got there (To Be Able To Buy A Home All Over Again).

Common sense in life, and Real Estate, is key.  I worked on 3 factors and 3 factors alone.

  • My income.  In my industry, the commission-based one, you make money by closing loans.  If you don't close loans, you don't make money.  It was a no-brainer, I had to close loans....so I did.  I worked my pale white behind off to do so.
  • I had to establish stability, in my own eyes and the lenders.  I had just entered an industry where the turn-over rate is rather large, so I had to make sure my job & income were stable for me.  The lender/bank wants to know that as well, that there is stability in your capitalistic life. Over 2 years later, I proved myself to me and eventually them.
  • I had to wrestle the demons, cure the ills of my credit's past.  I paid off things, I paid things up to date, and I paid my rent by check on-time all the time.

These simple steps helped, yet weren't the be all-end all.  There was one more thing I needed to make sure I was to become not only a homeowner, but a quality one.  I needed money in the freaking bank.  After all, say what you want and will about these 0 Money Out of Pocket deals, once you own it, you freaking own it.  If anything goes wrong, you are the one paying for it.  So, in case of an emergency of any sorts, I wanted to make sure I had money in the bank to deal with whatever situation Murphy's Law presented.

For would be or current homeowners out there, there is one key to home ownership beyond not being Mortgage Poor or Equity lacking, it's called reserves.  Have money in the bank, you never do know. 

Uh-Oh, I almost forgot, silly freaking me, I've been accused of being knocked around via the skull but perhaps I should just explain.  I almost forgot where I am, where I came from, and the very music Bob Carney would appreciate.  Click Me Now!

Maggie Dokic /Indialantic | 321-252-8696
Magdalena Dokic - Indialantic, FL
Selling the beach in Florida's space coast
We need to get you and Thesa to come down to Miami for a little tanning session.
Sep 25, 2007 08:11 PM
No Longer Active
Real Estate - Fallon, MT

I don't understand the pastey people either.... You need to spend a few hours outside the office and catch some rays... If you must be on call park the laptop and cell phone next to you.   And BOB or is it CHRIS...  How about a proper link so you don't boot people out of Allentown!

Sep 25, 2007 08:26 PM
Sarah Cooper
Real Estate Shows - Hurricane, WV

You're always one of the best mortgage reads, Sardi.  :o)  Nice to know you can relate to clients who might not have perfect pasts.  

And you're always a fighter, aren't you?  MWA! 

Sep 25, 2007 08:54 PM
Chris Griffith
Downing-Frye Realty, Bonita Springs, FL - Bonita Springs, FL
Bonita Springs Listing Specialist - Agent
Look at Jason Sardi dropping the morgage knowledge.  I see Cooper is MWA'ing right off the bat this morning.  (Pace yourself woman)
Sep 25, 2007 10:09 PM
Sarah Cooper
Real Estate Shows - Hurricane, WV

I'll come after you too, Chris!  Watch yourself!  :o)  

Sep 25, 2007 11:19 PM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate
Up here we call it Lily White !
Sep 25, 2007 11:47 PM
Matthew J Blum - (retired from the business)
Palm Beach Gardens, FL
Jason, Great post.  It really shows alot.  Glad to have you back my friend
Sep 25, 2007 11:59 PM
Bob Carney
Taylor-Made Deep Creek Vacations & Sales - Mc Henry, MD
Licensed MD/PA Real Estate Agent

Someone throw Cooper some chapstick...Her lips will be dried up by noon.

Dan thanks...fixed it. 

I hope everyone is whispering...we sure don't want to wake him up.

Sep 26, 2007 12:29 AM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life
>>>>>>>>>>>>Always Watching<<<<<<<<<<<<
Sep 26, 2007 12:52 AM
Suzanne Sands
Pavao Real Estate - Somerset, MA
Somerset MA Real Estate

Jason,

Great story, love the personal touch! Sorry, to wake you....;)

Sep 26, 2007 01:00 AM
Sarah Cooper
Real Estate Shows - Hurricane, WV
You stalker, you.
Sep 26, 2007 01:00 AM
Michael Delp
Mortgage Pro - Telford, PA
Jason, I know what you mean when you talk about reserves. When I bought the home I am in now, the sewer system had to be replaced within the first couple of months. The house remains a money pit but I love it.
Sep 26, 2007 01:43 AM
Rebecca Savitski
BSR Real Estate Group - Cary, NC
NC Real Estate Listings

Great Post - I think we were on the same path. I did the exact same thing.

Bartending to Real Estate - In the first 3 months REALTOR by day bartender by night until one day I had to choose between a $200 dollar shift or a $4500 commission check. Believe it or not the choice was pretty hard at the time because the bar manager was a Prick so I just never showed up again.

The first year of real estate I paid off everything. I did not have bad credit I was just POOR so I had a lot of BS bills(cable, cell phones, electric, student loans, I had a repo from 1997)  I paid over $40,000 of bad debt off. I wrote a check to pay my college loans. It took about another 2 years before my credit score increased to where I had buying power.

My first condo was the absolute best purchase I ever made. When I bought it I knew it was not permanent but I made enough money to put 20% down on my next home and so on and so on . My point is that your first home can give you financial freedom.

I am sure you did not want to hear all of this but reading your post just reminded my of my own travels.

 

Sep 26, 2007 01:44 AM
Scott Geary
Infinity Home Mortgage Company Inc - Allentown, PA
Your Pennsylvania Mortgage Source
I've always felt education od applicants is key to what we do. What better way than to share persnal life expiriences to help show them the way. Great idea for a blog. Where on earth did you come up with it?
Sep 26, 2007 02:00 AM
Jennifer Monroe
Indigo Home Team powered by Compass - Charlotte, NC
Real Estate REALTOR®/Broker/Designer

Very humble of you Jason. I think if I were a deadbeat, I would be very comfortable using you as my mortgage broker :)

I'm sorry, I'll be good. This is very nicely presented and reminds us that we all have choices and that everything is fixable. You give hope. 

Sep 26, 2007 03:00 AM
Thomas Weiss
Thomas R. Weiss - West Palm Beach, FL

Jason,

Man I have been there too!! I think most don't understand how hard we really do work, just to make a living..

I know your proud of yourself :0)

Tom Weiss

Sep 26, 2007 08:32 AM
Diane Velikis
Coldwell & Banker Busch Real Estate - Luzerne, PA
Luzerne County Real Estate
Jason, There is no stopping you! Great post for those who need to start over     :)
Sep 26, 2007 11:43 AM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Andrew -  It was was a lot harder, worthy of a book:-)

Sis - I do hope the whole paycheck to paycheck thing gets out of our culture sooner rather than later.

Bob - I thought you didn't like repeats amigo.  I've used the Allentown song before.  Watch out, I'm becoming an SEO genius!

Jo-Anne - Thank you so very much Jo!

Crouch - Thanks man, Billy Joel would of been good but I wanted to use a different tune.

Lanre - Feel free Lanre:-)  Thanks.

William -  Candor is becoming my niche, for better or worse.

Tracey -  Love that song myself, I am a tad devious, aren't I?

Thesa -  Do you want to have a hiney contest?:-))

Maggie -  I'm in like sin.

Dan -  Thank you for correcting Carney!

Sarah -  I am a fighter indeed.

Chris -  Yes, she MWA's way too much. 

Sarah -  Shocking!

Missy -  LOL.

Matt -  Glad to be back amigo.

Bob -  Watch out for that Sardi kid.

Mr. Sardi - Get a life kid.

Suzanne -  I'm always awake ;-)

Sarah -  I watch my own back.

Michael -  Reserves are huge in my book.

Rebecca -  Wow, incredible comment Rebecca!  I smell a post inspired by that, write away!

Geary -  Yes, you are my muse.  Let's hug big guy!

Jennifer -  I am a man of all people ;-)

Thomas -  Whoops, left you out there for a sec man, my bad.  It isn't easy on this side of the equation, though others can say the same about what they do for a living.  The rewards though, can be priceless.

Sep 26, 2007 12:11 PM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life
Diane - I am a writing fool.
Sep 26, 2007 12:12 PM
Ginger Wilcox
Sindeo - San Francisco, CA

This is probably one of the best posts I have read on mastering the basics for a first time buyer.  I am giving you five *****s. 

I love that you live what you breathe.  Congrats to you Sardi.  Sign me up for Talking Heads at your house party!!

Sep 26, 2007 03:48 PM