Don’t make me guess

Don’t Make Me Guess

Well it’s out, the new loan application, and it’s been in use for over a month now. It’s pretty crazy if you think about it, why do we need all this information anyway? In its simplest form it’s designed to make sure you’re not mistreated. A way for the government to monitor how loan originators, banks and lenders treat people who apply for a loan whether they are approved or not.  What fees one is charged or the rates you may be offered. Yes, I am going to tackle this big thing that most are afraid to even mention.

There is a particular ‘part I’ would to talk about today, it’s Section 7 Continue reading

Because we care

Because we care

Last night was no different to many others. During the day I meet with people at my office and. as I know most of you work very hard during the day you cannot always make it to my office during business hours. There are often times I make trips out to visit people in their homes in the evening and last night was no different.

I arrived at 5:30 pm and the couple there were in their 70’s wanting information on reverse mortgages. I brought along my standard information and FHA/HUD booklet for them to have. I like to keep things very simple. I am not a pushy salesman or aggressive, like I am when playing a sport. I am more like a mortgage coach for beginners. I understand my field intimately and I can go head to head with those who think they are the best.

I generally start off with a talk about Continue reading

Debt vs Saving

Debt Versus Savings
I can’t remember how long it’s been since I wrote about debt and the balance between savings. I know what the more famous financial experts say; “Be debt free and increase savings.”

I may not be famous but I like to believe I am more like the consumer advocate Ralph Nader when it comes to consumer financing.

Finding that right balance is just that, a balancing act. I could really write a book on just this subject and give you hundreds of examples of the different scenarios I have worked with over the years. But today I want our focus to be on the preparation process of the loan application and taking it through to the closing of your new home purchase.

Ideally, I would have to agree with Continue reading

Putting Up the Good Fight

Putting Up the Good Fight

I know my family listens, but I often wondered how many others really listen to me when I am retelling stories from my days in the Marine Corps. I have never seen anyone roll their eyes or even get bored when I repeat the same stories. So are they just listening to be respectful or are they tuning into the lessons that maybe within them.

I work with people from all different walks of life. People may come in with Continue reading

Associations

Associations

Many people often do not understand the impacts of Associations. So here I will briefly summarize a few different types and how the will impact your purchasing power or debt to income ratios.

First let’s address the “Community Associations”. These types of associations are not “Homeowners Associations” (HOA). Continue reading

Your Most Important Investment

Your Most Important Investment

Living in a world where you have the chance to see many different financial records of home buyers, you sometimes wonder why some people just don’t get it. Get what? The best use of money. Good and bad habits show through on all financial portfolios of the rich or poor.

I have seen people with six figure incomes and very little debt yet with very little in savings. I have seen people with incomes below the median area income and yet have more cars and toys then the value of the average home in the area and still renting a small apartment. No matter the portfolio, most people spend too much money eating out. Actually the average home buyers I worked with spend more money eating out than on groceries each month.

Other than your health and the health of your family, your home should be your most important investment. I want you to think outside the box and first take a look at your annual social security statement. This statement tells you what age you will be able to start collecting social security income. Your overall plan should be based on that age or the age at which you will have the ability to chose when you want to retire whichever comes first.

Your goal should be to have your home at an equity position greater than 50% of your home’s value by your retirement age. The sooner you purchase your primary home the easier it will be to achieve this. This has to do with the time value or money, amortization, and capital appreciation.

At this point in your life you will then have the opportunity to do one of two things. Either do a reverse mortgage on your home or refinance your home into a lower monthly payment basing it on your retirement income. It’s important to never refinance your primary residence in order to consolidate debts. This could lead to financial disaster. Your priority is to always protect your home before protecting any other asset. Remember if we have another financial crash its easier to try and pay a lower mortgage than it is to live inside a fancy sports car.

Renting a home should only be a temporary thing for any family. Rents increase every year and in most cases, leads to a diminish living conditions and depression. Cracking down on foolish spending like eating out 7 days a week or buying a used car versus a new one can help you put yourself in a better position for attaining home ownership.

If you would like me to help you put together a good plan to maximize your potential for home ownership call me. Ask questions, get all your facts and we will see you at a happy closing table.

Employee or Self Employed

Are you and employee or self employed? This is not an uncommon thing, where people do not know or understand how they are classified or paid. There are some significant differences from a W2 employee or a 1099 Self employed individual.

I am not an attorney or a CPA, I do not work for the IRS or department of labor nor do I want to. However, I do want to talk about this from a loan origination point of view and what the basic facts are of what we ask of you when you complete your loan application and for us to get your loan approval.

Let’s start with are some common statements I hear from borrowers regarding the confusion between being an employee or self employed: Continue reading

Is it the lender or me?

Is it the lender or me that is causing the issues? Well there are many different types of lenders, banks and mortgage brokerages. Each one has a different type of niche or type of borrower/ loan they prefer to work with and, yet some are just plan cookie cutter (generic). Probably it is a little of both!

What is hard for many people to understand is that its just as much about the lender as it is about the buyer. A buyer with an 800 plus credit score, who is a W2 employee and applying for a loan amount over $250,000 can pretty much pick who ever they would like to work with and really shop out the best rate.

A self-employed individual with two or more companies and multiple properties with a loan amount under $250,000 and a credit score in the 600’s is not likely going to have an easy time shopping rates and would rather spend more time searching for someone to get their loan done on time. This type of buyer is Continue reading