Tag: real estate

My Credit is a Little Rough. What Should I Do? 

Tips for Raising Your Credit Score

good credit scores just ahead

Welcome back to my blog everyone! The topic I want to dig into this week is credit. Why do you need it? Why is it important? Does it really have an impact on getting approved for a loan or not? Want to see what your credit is currently at for that new home loan? Click here!  I did something a little different with this blog post. I co-wrote this blog with my guy Sam Parker. Let me give you a little insight about my boy Sam. He is the Founder and CEO of MyCreditGuy.com and this guy knows the “ins and outs” of credit. He is my go to guy for a reason and the bottom line is that I only work with the best, and I assure you that is what Sam is. Now, let’s dig into this blog!

b24b8f258b7a59e85250f426c6ab5489a72cdc6d4f77abb05d4101ed65cfd2ec Just like anything in life, if you want to get better at it, you have to practice. If you want that promotion at work, then you have to put in the time and effort. If you want to become a better writer, then you have to practice writing. Same goes with your credit score. If you want to have a credit score that is out of this world good, then you have to put in effort to build and maintain it. Improving your credit score can save you hundreds or thousands of dollars on big purchases throughout your life. The best part about it is that it really isn’t that hard to accomplish. You just have to make sure that you are willing to put in the effort. A word to the wise, get to know the credit scoring model. Each person’s credit profile might be a little different, but there are five basic things that you can do for a little “Spring Cleaning” of your credit report.
Be responsible — Pay all your bills on-time each month. Late pays, collections and bankruptcies all have negative effects on your credit. Be smart, be responsible and make sure all your debts are paid on-time.

Check your credit regularly and monitor it for inaccuracies — Don’t let your credit suffer because of inaccurate information. If there is information on the report that is wrong, contact the creditor or original creditor and have them fix it. If you have a hard time with that, get the credit bureaus involved. Use a monitoring service, such as Credit Karma. Is it the most accurate? No, but it gives you some insight on your credit report without having a negative impact on your score.

ct-credit-scores-0602-biz-20150601Don’t over extend yourself — Just because Capital One gave you a $1,000 credit limit doesn’t mean you should go rack that thing up. Keep your credit card balances below 30% of the limit. For example: $1,000 credit limit = Don’t use more than $300

Time is valuable — The length of time that you have credit impacts your scores. So the longer you have a positive reporting account, with no late payments and a responsible balance, the better your score will be.

Stop having everyone and their mother check your credit — Talk about a red flag. Applying for numerous things in a short period of time can be disastrous for your credit. This is a sign to the credit reporting agencies that you may be experiencing financial difficulties. Too many hard inquiries = knockout punch to your credit scores.

Now, I want to let Sam takeover and blow your mind with these credit tips. Here is a video with some tips on what NOT to do when trying to build or maintain a great credit score.

Sam Parker here, great information Ed. It’s tough to beat the tips you’ve already given but I have just a few more and I’ll expand on a few that you’ve already made!

Don’t Pay Off Collections or Other Negative Item – I know, that just doesn’t make sense. However, the credit scoring algorithm is a bit flawed. See, when you pay off an older negative item it will update that account and bring the activity date current. When that happens, the credit scoring algorithm views this collection as new/current because of the date. In turn your scores will drop BECAUSE you paid your bill. So unless either Ed, one of his staff, or one of our staff instruct you to pay a collection, just hang onto your money for now.

No New Purchases – It’s so tempting to start buying the new furniture and electronics that will make your new home complete. However, too many times people will either use their credit cards to make these purchases OR open a new, in-store, credit card. When you use a credit card it impacts your balance to limit ratios which are a huge factor in your credit scores, you don’t want to use credit cards at all during the home loan process and if anything, get them paid down as much as possible. Also, when you open a new account the credit scoring algorithm sees it as a risk. You will most certainly see a drop in your credit scores not only because of the new debt load but because you just introduced a new account to the mix. This should go without saying but do not buy a new vehicle during the mortgage process either.

Don’t Close Accounts – As many people are getting their financial house in order they think it’s time to pay off and close out as many accounts as possible. While we advocate paying accounts down, closing them will be eliminate ALL of the pay history that you’ve accumulated and you’ll definitely see a drop in credit scores.

 

I appreciate everyone checking out the new blog, and Sam I appreciate you taking the time to co-write this with me. As always if you have any questions feel free to reach out to me. I am also including Sam’s contact information below. If you have any credit questions, he is the guy to contact. Thanks again and don’t forget to SHARE this with your friends and family, give us some FACEBOOK love!!!

Hustle. Succeed. Repeat.

-Ed Stojancevich

screen-shot-2016-10-06-at-5-46-03-pm  Download Ed’s Mortgage App, Click Here!

-Sam Parker

MyCreditGuy  Download Sam’s FREE Credit App, Click Here

This information is for educational purposes only and does not constitute legal or financial advice. You should always seek the advice of a legal or financial professional before making any legal or financial decisions.

I can afford the home, but I can’t afford the entire down payment. What should I do?

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Little down payment does not mean they are an unqualified buyer

Welcome back everyone! This week I want to discuss something that comes up quite frequently in my line of work. I hear it constantly from 1st time home buyers. They have a good job, they pay their bills on time, but with the cost of living it is becoming hard for them to save up money for the down payment on a home. Another huge misconception is that buyers think that they need to put down 20% for a down payment, this is far from true. Most programs require anywhere from a 3%-5% down payment in order to obtain a home, but what if you don’t have that? I have some solutions for that very problem, there are options available to assist you with down payment. Some  people I talk to have some money saved up, but not the full amount needed for the down payment. Now, this doesn’t mean you cannot get financed for a mortgage. There are some options that can help you out with down payment, let’s go over a few of those below.

VA Financing (Current & Active U.S. Military)

This program is strictly for United States military, both current and former, and surviving spouses of US veterans. This programs allows the veteran to finance up to 100% of the purchase price of the home. This is a program that veterans have earned, yet many veterans are unaware of this program. This is a great program for them and a great program for the sellers. Veterans are able to take advantage of low-interest rates and avoid mortgage insurance on their new mortgage. Click here to see if you qualify for a VA Home Loan.

 

IHCDA (This is for Indiana only)

HELPING TO OWN (H2O)

  • First-time homebuyers only, unless purchasing in a Targeted area
  • FHA 30-Year fixed loans only
  • 100% financing
  • Down Payment Assistance (DPA) grant of 3.5%, does not have to be re-paid
  • Program Income limits Apply (Click here to see if you qualify)
  • Minimum credit score of 660
  • Reservation fee $100

MORTGAGE CREDIT CERTIFICATE (MCC)

  • First time home buyer unless purchasing in a targeted area (see Program Guide for targeted areas)
  • Income and Acquisition limits apply
  • 30 year fixed rate (lender sets rate)
  • Federal Tax benefit
  • FHA, Conv, VA or USDA Rural Housing financing eligible
  • Reservation fee $500

NEXT HOME (NH)

  • Does not have to be a first time home buyer
  • Income limits apply
  • 30 year fixed rate (set by IHCDA)
  • Minimum credit score of 660 for FHA or minimum of 680 for Conv
  • FHA or Conv financing eligible
  • 2 year affordability period
  • DPA – 3.5% of purchase price or appraised value, whichever is less for FHA or 3% of purchase price or appraised value, whichever is less for Conventional
  • No cash back at closing except for what the Mortgagor paid into the loan
  • Reservation fee $100

NEXT HOME WITH MORTGAGE CREDIT CERTIFICATE (NH/MCC)

  • First time home buyer unless purchasing in a targeted area (see Program Guide for targeted areas)
  • Income and Acquisition limits apply
  • 30 year fixed rate (set by IHCDA)
  • Minimum credit score of 660 for FHA or minimum of 680 for Conventional
  • Federal Tax benefit
  • FHA or Conventional financing eligible
  • 2 year affordability period
  • DPA – 3.5% of purchase price or appraised value, whichever is less for FHA or 3% of purchase price or appraised value, whichever is less for Conv
  • No cash back at closing except for what the Mortgagor paid into the loan
  • Reservation fee $100

AFFORDABLE HOME (AH)

  • First time home buyer unless purchasing in a targeted area (see Program Guide for targeted areas)
  • Income limits apply
  • 30 year fixed rate (set by IHCDA)
  • Minimum credit score 660
  • FHA financing eligible
  • Reservation fee $100

MY HOME (MH)

  • Does not have to be a first time home buyer
  • Income limits apply
  • 30 year fixed rate (set by IHCDA)
  • Minimum credit score 660 for loans having LTVs equal to or less than 95%. LTVs greater than 95% the credit score that is required may vary 
  • Conv financing eligible
  • Master Servicer must underwrite all loans having LTVs greater than 95%
  • Reservation fee $100

MY HOME WITH MORTGAGE CREDIT CERTIFICATE (MH/MCC)

  • First time home buyer unless purchasing in a targeted area (see Program Guide for targeted areas)
  • Income and Acquisition limits apply
  • 30 year fixed rate (set by IHCDA)
  • Minimum credit score 660 for loans having LTVs equal to or less than 95%. LTVs greater than 95% the credit score that is required may vary 
  • Federal Tax benefit
  • Conv financing eligible
  • Master Servicer must underwrite all loans having LTVs greater than 95%
  • Reservation fee $100

These programs do have income limitations, click here to see if you qualify for these programs.

IHDA (This is Illinois only)

1ST HOME ILLINOIS

  • If you are interested in buying a home in Boone, Cook, DeKalb, Fulton, Kane, Marion, McHenry, St. Clair, Will or Winnebago counties, 1ST Home Illinois is the product for you.  It combines a 30-year fixed rate mortgage with a $7,500 down payment assistance grant. 1ST Home Illinois  is tailored for first-time homebuyers, veterans, or anyone who hasn’t owned a home in the last three years.

@HOMEILLINOIS FIRST-TIME BUYER

The @HomeIllinois mortgage is a safe, 30-year, fixed rate mortgage. That means your interest rate will never change. Are you concerned about saving for the down payment? With @HomeIllinois, the buyer contribution is $1,000 or 1 percent of the purchase price, whichever is greater. So for as little as $1,000 out-of-pocket, you can get into your first home. @HomeIllinois is a 30-year fixed rate mortgage with a variety of options to choose from. The options you choose will determine the interest rate for your loan.

Options:

  • $5,000 down payment or closing cost assistance
  • Federal tax credit certificate
  • Lender paid mortgage insurance
  • Choice of FHA, VA, USDA or Conventional loan type

Requirements:

  • Contribute $1,000 or 1 percent of the purchase price, whichever is greater
  • Meet the income and purchase price limits
  • Meet the credit requirements
  • Live in the home as your primary residence
  • Complete homeownership counseling (online and in-person options available)

@HOMEILLINOIS REPEAT BUYER

Are you looking to upgrade, downsize or simply change zip codes? The @HomeIllinois mortgage is the mortgage for you. For the first time ever, IHDA is offering $5,000 in down payment or closing cost assistance to repeat buyers. With interest rates at historical lows, there’s no better time to buy your next home than now.The @HomeIllinois mortgage is a safe, 30-year, fixed rate mortgage. That means your interest rate will never change. Are you concerned about saving for the down payment? With @HomeIllinois, the buyer contribution is $1,000 or 1 percent of the purchase price, whichever is greater. So for as little as $1,000 out-of-pocket, you can get into your next home.

@HomeIllinois is a 30-year fixed rate mortgage with a variety of options to choose from. The options you choose will determine the interest rate for your loan.

Options:

  • $5,000 down payment or closing cost assistance
  • Lender paid mortgage insurance
  • Choice of FHA, VA, USDA or Conventional loan type

Requirements:

  • Contribute $1,000 or 1 percent of the purchase price, whichever is greater
  • Meet the income and purchase price limits
  • Meet the credit requirements
  • Live in the home as your primary residence
  • Complete homeownership counseling (online and in-person options available)

USDA Financing

USDA Mortgages are a great option for people who are looking to buy in rural areas. Buyers need to be able to meet certain income qualification and they also need to meet certain credit score qualifications as well. USDA is an option which allows for 100% financing on a property. Properties also have to be in eligible USDA areas in order to obtain a USDA mortgage. Click here to see if you or a property qualifies for USDA financing.

HUD (U.S. Department of Housing & Urban Development) Homes

When someone who has an FHA Mortgage on their property and they foreclose on that property, it then becomes a HUD Home. You can get a solid deal on these homes when  they are available, but be aware sometimes they will need some work. The benefit of buying a HUD Home is that you can typically get a great deal on your home and you can buy the home with as little as $100 down. That’s right, $100 down payment. The great thing about HUD Homes is that they give people who plan to buy this as their primary residence first dibs at bidding on them. This means that investors have to wait until primary residence homebuyers get an opportunity to make an offer on the property. Good deals get picked up quick, so if you find a nice HUD Home, make an offer quickly. Click here and I can put you in contact with someone who is experienced in HUD Homes.

Local County and City Down Payment Programs

There are local counties and cities across the state that offer incentives for buyers to move to their areas. Typically there are offered through their economic development departments. These grants can help you with down payment assistance and also help you with closing costs. There are entirely too many to list, so to see if you qualify for any of these programs, click here. 

I put some extra useful information into this week’s post. This will help you and possibly save you some money while buying your home. Don’t forget to subscribe to my blog, and I also left you with something that is absolutely FREE. It will help you with your home buying process and answer all of the initial questions that you have. All you have to do is click the image below, it’s that simple. You’ll get immediate access to my free home buyer’s guide.

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Thanks again everyone!

-Ed

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Closing Costs? Why Pay Them? Who Pays Them? I Don’t Like It

wasting-moneySome of the most common phrases that I hear when talking with buyers are, “What are closing costs? Who pays them? Why are there closing costs?” A very common misconception is that closing costs are the fees that lenders make on the purchase or refinance of a property. Many clients believe this as fact, that is until I enlighten them and let them know exactly where those costs go to and why they are required. So, what do you know about closing costs? Is this something that you believed as well?

Closing costs are a mixture of different fees associated with closing on a mortgage. These can include, but are not limited to, appraisal, application, underwriting, title, escrow, insurance, and other items within the loan process. The reason that there are fees associated with the loan is because there are costs associated with obtaining a mortgage. These costs are here to help you out. For example; an appraisal is necessary because you and the lender need to know the value of the new home. At the bare minimum, the appraisal should appraise at what you are buying it for, or more. If not, then you have the opportunity to renegotiate the purchase price. Title fees are to make sure that you are buying a home with no liens and you are getting it with a clean title.

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Now, there are lenders out there with some high closing costs, such as origination points, discount points or broker fees. I actually spoke with a client about a month ago, and they knew a lender and planned on going through with them. After speaking with them, I was half percent lower in rate and about $3,000 lower in closing costs. I couldn’t believe how much they were charging for their services. I guess that is the downside of doing business with companies that have astronomical marketing costs, those costs get carried over directly to the consumer and you’ll notice that with the rate and costs associated with the loan. Check out this article from Money Magazine on what closing costs average.

Now there are ways to offset some or all of the closing costs. A simple way to do this is to negotiate the closing costs to be paid for by the seller. Most cases, the sellers will pick up the cost of obtaining the financing. You can also choose to have your costs paid for by the lender, in order for this to happen, you will receive a interest rate that is higher than the current market rate. Basically, you are financing the costs into the loan for however long the term of the loan is.  Another way to do so is to pay them yourself, this is the most ideal if you have the funds to do so. Paying your closing costs upfront is the most simplistic and cost effective way to pay for these. If you pay them upfront, you don’t have to worry about financing them into the loan by taking a higher than market interest rate.

So here is what I recommend. Talk to a pro, such as myself (you like that marketing plug right?) and figure out what is going to be the best path for your financial situation. You want to speak with someone who is going to achieve both your short term and long term goals. I recommend you download my FREE mortgage app for your cell phone and stay up to date on all market trends and interest rate trends. You can do so by clicking here. You can contact me anytime via my website at www.TheRockstarCloser.com or you can always call/text me at 219-973-6644. I will make sure to help you and give you the options that you deserve in order to make the best decision for you and your family.

Please fill out this form below, I’d like to know more about my readers. As always thank you for reading my blog, be on the lookout for next week’s blog post!

-Ed

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Do NOT do this when applying for a home loan…seriously.

Looks like I am going to give you a two for one in blog posts this week. I know I did one yesterday, but since I have fallen behind, I have to make up the difference. So with that said welcome to my blog. I want to inform you about something that can absolutely destroy your chances of getting a loan, even if your loan has already been approved but you  haven’t closed yet. Most people think that once their loan is CTC (mortgage jargon for Clear-to-Close) they are open to do whatever they want. Wrong! Most knowledgable lenders will tell you up front, do not make any purchases, do not apply for any new credit, do not make any late payments and make sure everything that you have disclosed to us remains the same or gets better. Nothing, and I mean nothing will make us give you the Bernie Sanders stink eye faster than seeing a new debt show up on the credit report. Now let me tell you why.

When we take a look at your overall credit profile such as income, assets, credit history, job history, debt ratios, ect. We have to make sure it fits “inside the box,” because let’s face it, this isn’t the mortgage industry of 10+ years ago. We have to make sure that everything is well documented. Now once we do that and we issue a pre-approval or pre-qualification, you are all set to go find your new home. In the meantime, make sure you do the following:

  1. Continue to pay your bills on-time
  2. Do not deposit cash in the bank
  3. Do not charge up your credit cards
  4. Do not apply for new credit or request credit line increases
  5. Do not spend your down payment on anything besides your down payment
  6. If you are unsure about anything, contact your mortgage expert

These may sound like simple rules to follow, but you would be surprised. Doing any of these can seriously impact your loan approval and could prevent you from purchasing your brand new home. The reason being is that it can negatively impact your credit score and can drive up your DTI (mortgage jargon for debt-to-income) ratios which could prevent you from getting the loan. So while you’re out looking at homes and when you get under contract, make sure you have a good talk with your mortgage expert and they can help you a guide you throughout the way. Consistency is the key. Maintain your current credit and financial profile and your loan should get approved with little to no problems.

So you want to stay up to date on all of this information? Want access to interest rate trends, home searches, calculators and a bunch of other useful stuff? Then you need to download my free mortgage app. It is 100% free and you have access to all of my info, including this amazing blog, 24/7. All you have to do is click here and it will direct you to the download link. C’mon, you didn’t think I’d give you an awesome blog and not ask you to do me a solid now did you? As always, thank you for viewing my blog. Check out my app and your life will become 10,000% better (well maybe not, but it’s a free app, so it can’t hurt right?).

Be on the lookout next week for some new info and a new blog. Leave me your feedback below if there is anything else you want me to focus on for future blogs.

Ed S.

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Housing Shortage Causing Bidding Wars and Spike in New Construction.

BIDDING WAR

If there is one downside to a booming housing market, it’s that there are not enough homes on the market to satisfy the amount of buyers. You can refer to this as a seller’s market. Not enough homes on the market can mean buyers paying more for a home. This is not a bad thing, and in fact, can help home values. As a seller, take advantage of it. Quit listening to the “water cooler talk” at work when everyone thinks that they’re an expert at everything. There is a reason they are doing the job that they are doing and not selling homes, because they don’t have the slightest clue of what they are talking about! Check out this article from Realtor.com that gives you advice on how to win a bidding war.

So let’s get back at it. In the real estate market you will see peaks and valleys. It is the nature of the business. If you are considering selling your home, now is the time to get your home on the market. Demand is high and supply is low, this is bare basic economics and it doesn’t take rocket science to figure out that you will profit more than you would in  a buyer’s market. Well what happens if you are a buyer? You want a great deal, right? You want that amazing home that your family fell in love with, right? Then make an offer. Hire one of the areas Realtors (I can refer you to one if you don’t have one) and let them negotiate a great deal. In this business time is of the essence, so if you find something and you like it, then make an offer on the home. One of the common things that I hear buyers say often is that “I’m going to sleep on it and make an offer tomorrow.” Here’s the catch to that, someone else is thinking the same thing and by the time you are ready to submit an offer, the house is S-O-L-D and then they have regrets for not submitting an offer earlier.

Home builders are more than happy right now. What happens when people can’t find their perfect home? They build it. I was driving through Northwest Indiana the past few weeks and I have noticed a TON of new homes being constructed. It’s a good thing, but with the improved housing market comes higher price per square foot. You’ll be paying more for that home as well. Now, don’t get me wrong, building a new home isn’t a bad thing. You just have to be prepared to wait while it is being constructed. I have seen homes go up in as little as 90 days, then I have seen homes take a year. It all depends on what you are getting done, what kind of upgrades you’re getting and also the weather has to cooperate as well.

Why am I telling you this? I know what you’re thinking, “he is just trying to get us to buy a home quicker, or wants the quick sale.” That couldn’t be further from the truth. I have a list of buyers right now waiting to find their next home. Unfortunately, some of them have already made these same mistakes that I mentioned above and have missed out on homes that they fell in love with. I don’t want this to happen to you. Learn from the mistakes of others. So here is what I recommend:

  1. Get your ducks in a row (get pre-approved and get all of your financial documents together) Check out my blog about this here.
  2. Work with a Realtor and figure out where you want to buy and what is a comfortable price range.
  3. Once you find a home that you love, DON’T WAIT! Talk with your Realtor and submit a fair offer on the home.
  4. Get your offer accepted
  5. Work with the best mortgage guy in the business (me, of course!) and let’s turn that homeownership dream into a reality.

So now that you have some great tips about this market. I am going to ask you a favor. I need you to subscribe to my blog. I know I said I was going to do these weekly, but work has been SLAMMED. I owe it to you all to make this blog happen weekly, so my commitment to you is to have a new blog up by Wednesday of every week. In the mean time, go and download my mobile app. It has a link to my blog, a home search, mortgage calculators and so much more. You can get it by clicking here. I designed this app for my business partners and for my clients. Any feedback that you have, leave it below. Have any blog suggestions? Leave me a comment below. I will give you content overload, just let me know if you want me to touch on anything specific.

Thanks for reading and  the lookout next week!

-Ed. S

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Why trusting a smart phone to close your mortgage is anything but smart.

rockets

So if you weren’t living under a rock, I assume that you watched at least a portion of Super Bowl 50. The game itself might not have been that impressive, but I did see some funny commercials. One in particular comes to mind, it was Rocket Mortgage from Quicken Loans. The commercial made it seem that it would be hassle free and easy to obtain a mortgage with their “push button get mortgage,” phrase. The voice actor states “you can get a mortgage on your phone, and if it could be that easy, wouldn’t more people buy homes?” I’ll be the first one to tell you, these ideas are the types of things that can cause a housing collapse. You know people thought loans that didn’t require borrowers to show proof of their income or assets were a good idea too, but that didn’t work out so well now did it? So now with Rocket Mortgage, Quicken claims that you can obtain an “8-minute mortgage.” I am not the only one that thinks this is encouraging another housing crash, check out this article by Time Magazine. The article highlights different tweets from people criticizing the company for “encouraging another sub-prime crisis.” Here is another article, this time by Yahoo! that drills Quicken for their ad. It’s amazing to think the same company that the United States filed a lawsuit against (find the Department of Justice Press Release here) for improperly originating FHA Insured loans is the same company trying to make an “8-minute mortgage.”

Here is a good analogy for you, and I know this first hand. Every year around tax time you see all these commercials for these online tax programs where you can do it yourself. At first, I thought that this was a great idea until I realized how much money I was losing by not utilizing an accountant. Quicker is not necessarily better, cheaper is not always better and obtaining a mortgage on a phone app…well that’s just ludicrous. There is a reason accountants are in business, because they can help you, they understand your situation and they try to minimize your overall tax burden.

Listen, here is what you need to know and it may not be what you want to hear. Obtaining a mortgage is not “easy,” and it shouldn’t be. Buying a home is a lot different than shopping for a pair of shoes or buying music online, that comparison is ridiculous. A home is a huge financial commitment and it requires having a team of local professionals who have your back. Having the right team working for you can result in a easy transaction. The importance of working with someone local is vital. It is important to work with local Realtors, loan officers, insurance agents, title companies and so on. These are the people that live in the communities that you’re buying in, they know the ins and outs of the communities and can help guide you in the right direction. When talking to a loan officer, you need someone who is going to understand what your financials are, help establish your goals, help overcome potential roadblocks, help you prepare when submitting an offer and many other important factors involving your home purchase. You will not receive this type of hands on treatment from your smart phone or a call center located halfway across the country. Local professionals have a personal commitment to make sure you’re happy and are taken care of. We will see you from time to time in the local stores, local sporting events and throughout the community. We are welcoming you to our community and we want the best experience for you and your family.

Now I can’t promise you and “8-minute mortgage,” but I can sure assure you a pleasant experience that you won’t forget. I can assure you that I will help you determine what will be the best loan program for you and your family. I can assure you that I can put you in contact with some of the top realtors in my area to help you find that dream home. I can assure you that from start to finish you will know the progress on your loan. Finally, I can assure you that you’ll be so happy with my service and loan program that you will refer me your family, friends and coworkers. If you are looking for an “8-minute mortgage,” I can confidently tell you that I am not your guy. If you’re looking for the best program possible to ensure your family’s financial success, then look no further, I can make this a reality.

I have a custom mobile app and you can click here to download my app. This was made specifically to give you housing market updates, mortgage calculations, a home search and other valuable resources. It is NOT intended to close your loan in 8 minutes 🙂

For more online resources visit my website by clicking here, or fill out the form below and I can add you to my email list.

Be on the lookout for my new blog next Monday.

P.S. Remember, that from time rockets do explode. #RocketsExplode

-Ed

 

 

Why it’s smart to get qualified BEFORE you start looking at homes.

the more you knowSo you have been looking online at homes. You end up seeing one that is everything that you have been wanting. You call a Realtor to show you the home. You go and see the home and you fall in love. You want to submit an offer, then it hits you…THIS HOME IS OUT OF YOUR PRICE RANGE! Unfortunately, this tends to happen when people start the home buying process. Everyone is eager to start looking at homes, but they fail to get their ducks in a row and line up their financing before they start looking. It is a lose/lose situation when you start the home search before you get your financing in line, and I’ll tell you why.

One of the most important steps of buying a home is making sure you are qualified to purchase a home. The last thing that you want to happen is to fall in love with a home then come to find out that you can’t afford it, or there is something preventing you from buying a home in general. There are many benefits to getting pre-qualified or pre-approved for a home. When you are ready to submit an offer, the sellers will know that you have already done the work beforehand to obtain financing and that you are a qualified buyer. This can also help you with the negotiation when buying a property. There are 2 main people that you need to become comfortable with and trust during this process, a Realtor and a loan officer. Ultimately you want to work with a great, and I emphasize great, Realtor that has local knowledge and can negotiate a fair price for you. Another must when buying a home is make sure you are working with a loan officer that knows their stuff. Sure, any bank has a loan officer that is getting paid a tiny salary, sits behind a desk all day and will tell you exactly what you want to hear. That’s easy! Make sure you are dealing with a professional who knows the ins and outs of the mortgage business in order to find you and your family the best program possible. Often times, what you want to hear is a lot different than what you need to know, so work with someone who will guide along the right path the first time around.

Here are some of the items that you should consider gathering together when you want to start the home buying process, and believe me, your loan officer will LOVE YOU if you are well prepared. Again, this is just some brief information and each situation can be different, but if you have the majority of this ready to go, you’ll be in great shape.

  • Identification ( State IDs or Driver’s License or Passport)
  • Most recent pay stubs for the past 30 days
  • Most recent 2 years of Federal tax returns and W2s or 1099s (if you’re self-employed, let them know because there is additional requirements that will be needed)
  • Recent bank statements for the past 2 months
  • Homeowner’s insurance agent name and number
  • Addresses of any additional properties that you own
  • **If applicable** Divorce decree/Bankruptcy discharge paperwork/Child support order

All of this is information that is extremely useful because it will help your loan officer better comprehend your current financial position and see if you are eligible to purchase a home. Also, let the loan officer know how much you are comfortable with spending. I hear way too often that a loan officer will issue a pre-qualification for a set price and it’s a price way higher than what the buyers want to spend. The way I look at it is that I want to put people in a mortgage that is comfortable for them, so it doesn’t matter if you qualify for a $400,000 home if you are only comfortable spending $250,000. So make sure you are prepared with how much you are comfortable spending for the down payment and for your monthly mortgage payment.

Now to the meat and potatoes of my blog! If you want a no-nonsense, straight to the point, knowledgeable loan officer with access to some of the best programs in the industry, then you need to look no further. OK, well maybe a little bit further. First, you need to contact me and I will give you a FREE home financing analysis to see if I can get you qualified to make that first step.  Secondly, I work with some of the area’s top Realtors and I can put you in contact with them to help you find your dream home. Next, we close your loan and you move into your home. Finally, because both the Realtor and myself were so good at getting you the perfect home, the perfect loan and amazing service all you need to do is refer your friends, family, co-workers, heck even strangers, over to us so that we can help make their dreams come true as well.

Now I want to offer you all something else that is completely FREE! You can download my free mobile app for your cellphone. It has a ton of resources at the palm of your hands. You can search homes, local schools, taxes, mortgage payments, rates and a bunch of other cool stuff absolutely FREE, all you have to do is  CLICK HERE.

Now that you’re a little more prepared for your home search, leave me some feedback below on what you want me to blog about next. Be on the lookout every Monday for a new blog post, and thanks for reading!