Do and Don’ts from a Realtor perspective

September 12, 2017

Do and Don’ts from a Realtor perspective

  1. Do not assume you do not qualify to by a home

    1. Do not listen if a bank tells you they have a fico requirement of 640 VA has no fico requirement
    2. Do not listen to your neighbors version
    3. VA loans are special and chances are you do qualify
  2. Do not start paying off debt in order to qualify
    1. Get a very specific set of directions from your lender as to what specifically to pay off or down
    2. You may be wasting money paying down/off debt that you should leave alone
    3. Do not pay a high monthly charge to “fix” your credit score
  3. Do not let past credit problems convince you that you do not qualify
    1. Call a mortgage bank that specializes in VA loans with low fico scores
    2. VA loans have different wait periods and lots of exceptions
  4. DO not hold back or filter the information you give the loan officer. Tell the whole truth
    1. Full disclosure allows more time to solve problems
    2. We are going to find out anyway
    3. Do not trick the Loan officer into giving you an approval. Loans are approved by underwriters
    4. Filtering information causes unneeded delays
  5. Do not change incomes sources or amounts if you can help it
    1. Do not change jobs or get transferred
    2. Do not changes job title within the company
    3. Do not change income sources or amounts
  6. Do not run up credit cards or take on other debts
    1. Credit report is pulled the day of funding to check account balances and monthly payments. That could get you turned down
    2. Keep the same scenario the underwriter has already approved
  7. Do not change down payment sources or amounts
    1. Discuss sources and amounts for down payments at the beginning of the loan process
    2. Gift has to be sourced and seasoned with 2 month’s bank statements from the grantor
    3. Watch the 401k restrictions
    4. Seek the 401k “hardship” information
  8. Do not think the lender is out to get you
    1. They are there to help they are on your side
  9. Do not act like you know everything
    1. Ask questions when you do not understand
    2. Do not fight over every lender request
    3. Know what you do not know/get out of your own way
    4. Get requested documents and information asap
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More things you did not know about VA loans

September 8, 2017

Let’s face it the VA loan is the best loan for either a refinance or purchase transaction.
But some vets and even lenders do not know.
www.veteransunited.com/valoans/10-things- many-borrowers- dont-know- about-va- loan

1. They are reusable. You can only use your entitlement
2. They are only for certain types of homes move in ready single family residences.
No fixer uppers.
3. They are for primary residences. No vacation homes or rentals unless duplex,
triplex four-plex owner occupied
4. They are not issued by the VA. Lenders lend the money and the VA Guarantees
the loan for each qualified VA loan.
5. Guaranteed by the government up to 25% which gives lenders reassurance leads
to great rates for Vets
6. They are available despite foreclosure or Bankruptcy. Two year wait is standard
and one year wait in extenuating circumstance not divorce
7. They do not have mortgage insurance. Cheaper payment
8. They come with a mandatory funding fee depending on how much you put down
and hoe many times it has been used. No funding fee for disabled Vets
9. They have limits in co-borrowers. Can be a spouse, another Veteran, or a care
giver,
10. They do not have prepayment penalties. Can pay down
11. They are assumable
12. The Veteran may not pay some fees They lender or seller is required to pay them
13. VA does not have a FICO score requirement but the lenders do, Veterans United
, Wells Fargo, USAA all have restrictions
14. You can buy or refinance a Mobile home at 100% LTV. Needs to affixed to land
you can own and meet the VA requirements. No parks with lot rent

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Home Buying the Players and Process

August 16, 2017

In this episode I break down who the Players are and the Process during a home buy.

 

Players

  1. The loan Officer/Lender-Finds you a loan to buy the home
  2. Buyers Agent-Represents you in the process, paid for by the seller
  3. Sellers Agent-Represents the seller
  4. Home Inspectors –what is right and wrong with the house
  5. Home Appraiser-what is the home worth
  6. Title Agent/escrow-collects and disperses money, records documents
  7. Processor-collects documents for the lender gives to the underwriter
  8. Underwriter-underwrites the three CCC’s Credit Capacity and collateral
  9. Home insurance agent-provides insurance quote

Process

  1. Consultation-speak about purchase price and payment
  2. Pre-Approval-get qualified for purchase price and payment
  3. Home search-buyers agent find a home
  4. Make an Offer-buyers agent makes an offer
  5. Accepted Contract-offer excepted by the seller
  6. Open escrow/Ernest Money deposit- Put Ernest money down at title company
  7. Loan application-sign and collect documents for your loan
  8. Appraisal/Inspection establish value and condition of the home usually first 10 days
  9. Processing-documents ready for underwriting
  10. Underwriting-three c’s
  11. Home insurance quote - quote for insurance coverage, included in  monthly payment
  12. Clear to close-underwriter has approved you and sent loan for docs
  13. Final walk through-make sure home is in condition agreed upon
  14. Closing - sign, record, and fund your loans. Sometimes not same day
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Ep: 010 - Home Buyers Fears

July 19, 2017

Buying a home is one of the biggest financial decisions you can make.  So there is no surprise that people have many fears associated with the process.  The statistics are on your side.  Seven of every ten people who apply get the home they want.  Let’s look at some fears and some easy solutions.

  1. Do not have enough money for a down payment
  1. I have too much debt 
  1. I do not make enough money 
  1. My credit score is too low 
  1. Would feel bad if they were turned down
  1. Will get stuck with a terrible rate
  1. Buying a home cost more than renting
  1. Loss in property Value
  1. Overwhelming Maintenance costs
  1. Buyer’s remorse
  1. Tricky Mortgages
  1. Loss of Earnest money

http://www.interest.com/mortgage/news/mortgage-fears/

http://www.investopedia.com/slide-show/5-real-estate-fears/

 

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Ep: 009 - Things NOT to do while in Escrow

July 12, 2017

If you've been in the business then you've heard a story or two!  In this show we discuss... 

Things NOT to do while in Escrow

 

  1. Do not open new debt, raise DTI and lower Fico ie Autos and CC debt

 

  1. Don’t Pay off collections or Charge offs

 

  1. Do not max out or over charge on your credit cards 30% rule

 

  1. Don’t consolidate debt onto 1 or 2 cards will show as max on new cards

 

  1. Do not open or close accounts lowers fico less history shows increase overall debt

 

  1. Do not pay late or allow past due lose 50-100 points Begging creditors for a mulligan

 

  1. Do not dispute anything on your credit report updates the lates close w/o disputes

 

  1. Do not lose contact with mortgage and real estate professionals get their ok

 

  1. Do not think your closed because your loan is approved closed when you have keys

 

 

http://www.trulia.com/guide/home_buying/close_the_purchase/things_not_to_do_before_closing_escrow/

                       

  1. Do not leave town delay the vacation or delay your closing

 

  1. Change Jobs or go self employed 30 days paystub even same field

 

  1. Move around big amounts of money huge red flags

 

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Ep: 008 - 10 Reason to Use agent for buying and selling

July 5, 2017

In this episode we cover 10 Reason to Use agent for buying and selling.

The technological advances made in the last 5 years have really made home buying and selling without a Realtor possible.  Yes you can probably access some important information on the internet and you can couple that with good judgment, however just because you can does not mean you should.  This is not like going to court to fight a traffic ticket or thinking you are a great negotiator because you have great luck buying a car.  This is one of the biggest financial decisions of your life and you should really use a licensed Realtor. 

 

Understand why not.  You want to save money as a seller and you figure as a buyer if you do not have an agent than you can get a better price.  The typical commission per agent is 3% so it is not insignificant.  Reality is that they are worth every penny

 

  1. The buyer’s agent is paid by the sellers therefore free. The commission is already built into the listing so if it is not used the sellers agent will most likely get it.
  1. The sellers agent will get you a higher price statically and therefore pay for itself
  1. They speak the language and have the paperwork and deadlines.  Avoid costly mistakes and delays
  1. Greater search power. Realtors have access to even more  Sometimes properties are available but not actively advertised. A Realtor can help you find those hidden gems. The purple room effect
  1. Great marketing power. Better engines, websites and past customer networks
  1. Better search area. Better at matching your home characteristics like price range size, ect to find the best fit
  1. Better negotiators. Lots of experience and better tactics. They are unemotional  
  1. They are connected to everyone so they have a better network
  1. They adhere to a strict code of ethics
  1. They fill a lot of roles. Adviser, financier for marketing( own Money), almost 24 hour per day concierge, emotional rock during hard times
  1. Pricing expertise both buying and selling. Priced to sell and worth it to buy

    12. Request repairs

 

http://www.realtor.com/advice/buy/why-you-should-use-realtor

 

http://home.howstuffworks.com/real-estate/buying-home/10-benefits-of-using-a-real-estate-agent.htm

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Ep 007 - Part II of 14 things you did not know about VA loans

June 28, 2017

Let’s face it the VA loan is the best loan for either a refinance or purchase transaction.

But some vets and even lenders do not know.

www.veteransunited.com/valoans/10-things- many-borrowers- dont-know- about-va- loan

1. They are reusable. You can only use your entitlement

2. They are only for certain types of homes move in ready single family residences.

No fixer uppers.

3. They are for primary residences. No vacation homes or rentals unless duplex,

triplex four-plex owner occupied

4. They are not issued by the VA. Lenders lend the money and the VA Guarantees

the loan for each qualified VA loan.

5. Guaranteed by the government up to 25% which gives lenders reassurance leads

to great rates for Vets

6. They are available despite foreclosure or Bankruptcy. Two year wait is standard

and one year wait in extenuating circumstance not divorce

7. They do not have mortgage insurance. Cheaper payment

8. They come with a mandatory funding fee depending on how much you put down

and hoe many times it has been used. No funding fee for disabled Vets

9. They have limits in co-borrowers. Can be a spouse, another Veteran, or a care

giver,

10. They do not have prepayment penalties. Can pay down

11. They are assumable

12. The Veteran may not pay some fees They lender or seller is required to pay them

13. VA does not have a FICO score requirement but the lenders do, Veterans United

, Wells Fargo, USAA all have restrictions

14. You can buy or refinance a Mobile home at 100% LTV. Needs to affixed to land

you can own and meet the VA requirements. No parks with lot rent

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14 things you did not know about VA loans

June 14, 2017

Let’s face it the VA loan is the best loan for either a refinance or purchase transaction.  But some vets and even lenders do not know.

 

www.veteransunited.com/valoans/10-things-many-borrowers-dont-know-about-va-loan

 

 

  1. They are reusable. You can only use your entitlement

 

  1. They are only for certain types of homes move in ready single family residences. No fixer uppers.

 

  1. They are for primary residences. No vacation homes or rentals unless duplex, triplex four-plex owner occupied

 

  1. They are not issued by the VA. Lenders lend the money and the VA Guarantees the loan for each qualified VA loan.

 

  1. Guaranteed by the government up to 25% which gives lenders reassurance leads to great rates for Vets

 

  1. They are available despite foreclosure or Bankruptcy. Two year wait is standard and one year wait in extenuating circumstance not divorce

 

  1. They do not have mortgage insurance. Cheaper payment

 

  1. They come with a mandatory funding fee depending on how much you put down and hoe many times it has been used. No funding fee for disabled Vets

 

  1. They have limits in co-borrowers. Can be a spouse, another Veteran, or a care giver,

 

  1. They do not have prepayment penalties. Can pay down

 

  1. They are assumable

 

  1. The Veteran may not pay some fees They lender or seller is required to pay them

 

  1. VA does not have a FICO score requirement but the lenders do, Veterans United , Wells Fargo, USAA all have restrictions

 

  1. You can buy or refinance a Mobile home at 100% LTV. Needs to affixed to land you can own and meet the VA requirements.  No parks with lot rent
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Ep 005 - Other advantages of buying a home

June 9, 2017

Advantages of buying a home, other than, it is a good investment and makes financial sense

You Build a Strong Credit History

When you buy a home and consistently make your monthly loan payments on time, it demonstrates to other lenders that you are a good borrower and the risk of you defaulting on a loan is low. This strong credit history will be helpful in the future when you need other loans for buying a car, making improvements to your home, or paying other major expenses.

You’re Free to Create the Home You Want

Homeownership offers tremendous freedom to create the living environment that you have always wanted. You can own pets, paint rooms whatever color you like, make changes to floors and carpeting and do all the things that make a house your home – all without having to get approval from a landlord.

Pride of Ownership

Pride of ownership is the number one reason why people yearn to own their home. It means you can paint the walls any color you desire, turn up the volume on your CD player, attach permanent fixtures and decorate your home according to your own taste. Home ownership gives you and your family a sense of stability and security. It's making an investment in your future.

Stability

You create a stable living environment for long term.  Less stress less worry. A land lord could sell the home at any time leaving you out.  Stable environment for children schools and friends.  Home ownership creates stable environment for your friends.  Stable costs so you can budget for long term

Privacy

Proximately to neighbors No

nosey land lord.  No one in your business

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Ep 004 - The 7 Financial Benefits of Home Ownership

June 2, 2017

The benefits of owning a home are many.  Let us look at simply the financial benefits of home ownership.

 

  1. .Homeownership Builds Wealth over time. Start with something you can afford in order to build wealth over time.  You need to be in it for the long hall therefore you have to budget for unexpected things.  Do not start in over your head.  Just because you can does not mean you should
  1. You Build Equity Every Month. By paying down the principle balance you owe less and therefore have more equity
  1. You Reap Mortgage Tax Deduction Benefits
  1. Mortgage deduction
  2. Closing costs deduction
  3. Property Tax deduction
  1. Tax Deductions on Home Equity Lines. Interest deduction will allow you to shift Credit Card debt to Heloc thereby paying a lower rate and making the debt tax deductable
  1. You Get a Capital Gains Exclusion. If you live in the home for more than two years you should qualify.   When you sell you can keep more of your money up to 250k if single 500k if married
  1. A Mortgage Is Like a Forced Savings Plan Paying the mortgage increase equity every month, like a forced savings plan. You are being forced to save
  1. Long Term, Buying Is Cheaper than Renting. First you are not throwing money away.  Second the portion of interest you pay goes down every month eventually your monthly payment will be lower than rent
  1. Gaining wealth long term and short term gain. Buying a home gives you all of the equity.  So $200,000 with a 10% gain over 4 years gives you a total Value $292,820.  So gross profit $92,820 for a 4 years investment making payment that you would have made renting anyway. You have got to live somewhere you might as well make money doing it

https://www.forbes.com/sites/trulia/2014/02/28/freshen-up-on-the-7-financial-benefits-of-home-ownership-this-tax-season/#29caaca45fe8

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