HIGHLIGHTS FROM OUR PODCAST:
MARKET NEWS
SOCIAL MEDIA TIP OF THE DAY
QUESTIONS ANSWERED BY PAT GOLDSTEIN:
1. What advice do you give prospective homebuyers BEFORE they begin the house buying process?
2. What are common mistakes you see real estate buyers and sellers make. How do you suggest they
avoid these mistakes?
3. You have really been selling a bunch of houses lately, Pat. What is your secret?
QUESTIONS ANSWERED BY SHERRI HENLEY:
QUESTIONS ANSWERED BY JO GARNER:
1. What are the 4 common barriers to for borrowers trying to get their loan approved?
2. What is your advice to anyone who is about to begin the process of getting a home loan to
purchase a house or to refinance?
3. What are some common mistakes people make when they start trying to fix their credit?
4. How do you know when it makes sense to refinance your mortgage?
4th segment REAL ESTATE TIP OF THE WEEK: Sherri Henley comes back in with
iShare social Media tip for our real estate professionals.)
Jo’s announcements:
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Good morning, Memphis! Good morning across the country on iHeart Radio and we’ve just
added BOCI network too. You’re on the Real Estate Mortgage Shoppe program. I’m Jo Garner,
your host, mortgage loan officer with Evolve Bank and Trust. Today we’re talking about
THINGS YOU WISH SOMEONE TOLD YOU BEFORE FINANCING & BUYING REAL
ESTATE. Maybe you’re thinking about buying a home or refinancing one you already have.
What are some helpful things YOU wish you had known before you embarked on YOUR journey
to homeownership. Give us a call on the air at 901 535-WREC (901) 535 9732.
Today we have an expert who loves real estate and has been a realtor for –let’s say over 25
years. Pat Goldstein, realtor with Crye Leike here in the Memphis and Mississippi area has been
selling a LOT of homes lately. Pat, tell us a little about yourself and what you do as a realtor.
<Pat has about 1 minute to talk about herself and what she does>
(Jo) Our other guest in the studio is Sherri Henley, social media expert with Business Over
Coffee and the iShare Agency. Sherri has been working to make my social media marketing
more effective for my business and she’s helped some others at our business networking
meetings at Talk Shoppe too. Sherri tell us a little bit about yourself and what you do.
(Jo) Lots of game changing news this week—My very experienced assistant, Susan Belew and I
reached out to several of our former customers to let them know that not only had mortgage
rates plummeted to a 20 week low this week, but the very popular FHA loan program is
lowering their monthly mortgage insurance premium significantly. If you checked into buying a
house or refinancing your OWN house, and it the payment was too high or the costs, call me at
(901) 482-0354. Rates on the conventional 30 year loan with no points are around 3.625%. The
15 year this week I quoted around a 2.75% and 2.875%. Susan and I would like to relook at
your projected payments on a refinance or home purchase. You might be PLEASANTLY
surprised at how much money you can save –especially over time. If you’re not where you can
write my number down, catch me on the blog www.JOGarner.com
<Pat makes comments here >
(Jo) People have asked the question—“what caused our rates to go down when the economic
forecasters said they were going up?” It didn’t have a whole lot to do with what was
happening in our own American economy. The real market movers were the drama overseas
and the reaction in THEIR markets. Their troubles have drawn more investors into our US
bond markets which have driven the mortgage rates down. But don’t procrastinate. See
what you can do to restructure your mortgage on your primary residence or your rental
property. Susan and I work all over the country helping people lower their interest rates,
shorten the term on your mortgage so hopefully you want have to PAY a mortgage at all
sooner rather than later. Or you may want to consolidate your loans. Values on houses have
gone up in a lot of areas and what didn’t work for you a few months ago, may work for you
now. And we still have the special HARP loan programs where you don’t even need an
appraisal value. Susan and I have other programs too. Yesterday we were calling our
customers who have the government FHA loan to let them know the monthly mortgage
insurance on this program just got reduced quite a bit. We don’t’ need an appraisal at all nor
do we need income verification if you have an FHA mortgage and your are refinancing to
another FHA mortgage. Let Susan and I do your numbers and compare your options. Call me
on the air at 901 535-WREC 901 535-9732 or directly at 901 482-0354 901 482 0354 or catch
me on my blog www.JOGarner.com IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
< PAT makes comments here
(Jo) We’re talking about THINGS YOU WISH SOMEONE TOLD YOU BEFORE
FINANCING & BUYING REAL ESTATE. Pat Goldstein, you’re an experienced realtor. What
are some things you tell your prospective homebuyers or sellers BEFORE they begin the
process?
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To our realtor friends and other savvy and sharp business friends out there, its
time for the Sherri Henley Intelligence Social Media Tip of The Day. Sherri Henley
can be reached at www.iShare.com Sherri, what’s our social media tip of day?
QUESTIONS ANSWERED BY PAT GOLDSTEIN:
1. What advice do you give prospective homebuyers BEFORE they begin the house buying process?
2. What are common mistakes you see real estate buyers and sellers make. How do you suggest they
avoid these mistakes?
3. You have really been selling a bunch of houses lately, Pat. What is your secret?
QUESTIONS ANSWERED BY SHERRI HENLEY:
1. Perhaps we should mention the book you encouraged me to write on How To Invest Your Dollars
In A Mortgage That Makes Sense.. (I can talk about how iShare Agency helped upgrade my
website and other marketing pieces to help me market the book and other programs and you can
mention that our Real Estate Mortgage Shoppe will be heard also on the BOCI Radio Channel) I
can mention that there will be some stories and anecdotes they have heard on this radio show.
2. Sherri, you might be able to make some comments or ask questions about our topic during the
show. If you have some personal real estate stories or know some from friends, you may be able
to share them (keeping names anonymous to protect privacy of course)
QUESTIONS ANSWERED BY JO GARNER:
5. What are the 4 common barriers to for borrowers trying to get their loan approved?
a. First, clients will tell me they don’t have any money to put down. My assistant and I are
very good treasure hunters and we can find money from people in places they never
thought to look! Particularly for clients who have not owned a home in 3 years or more,
there are a multitude of down payment assistance programs available. If the seller pays
the closing cost and prepaid taxes and insurance for the buyer, then normally the down
payment assistance pays the down payment and they get in for zero down or very little.
Even if you are not a first time homebuyer, we have the 100% VA loans and the 100%
USDA loans. We can possibly use a bank loan secured on a different asset to give you
the funds you need to close with very little money down on the house you really want.
In many cases you can borrow against a retirement fund without penalty. Gifts from
family are nice.
b. The second barrier is showing enough income to qualify for the loan you need to buy or
refinance a home. If you have only been on your job a few months, we can only count
your guaranteed base income and not the commissions that you hope to average over
the course of the next several months.
If you have a great salary but write off on your taxes $10,000 or $20,000 dollars in
unreimbursed employee expenses, the loan officer has to deduct this amount from your
pay, so when you are with your loan officer, be sure and tell them about any losses
showing on your tax returns.
If you are self-employed and you have a lot of income that you control but, after write-
offs, you only show very little, let Susan and I review ALL PAGES of your last 2 years tax
returns and business returns. We have found tens of thousands of dollars worth of
income in the BACK PAGES of the tax returns. If there is a way, we can find it to help our
clients get qualified for what they want to accomplish.
c. The third barrier that we can overcome is credit issues. My assistant and I have trained
on the Credit Simulators (like flight simulators). By using the Credit Simulation tools we
can look at your credit report and suggest ways you may be able to raise your credit
scores by 20 or 30 points over a course of a few weeks with the least amount of
investment on your part. If you keep your balance owed on credit cards UNDER 30% of
the total credit limit, it will boost your credit scores. If you owe OVER 50% of the total
credit limit, it can really hurt your credit scores. If you’re a realtor and you have a
customer like this, we may be able to help your client with a work out plan to can get
them in a house in a matter of weeks rather than months.
d.
The fourth barrier is problems with the house needing repaired or a title issue.
This is where an experienced realtor or closing attorney.
Your answer to the repair requirements can be easily fixed by negotiating the
seller of the property to pay it or agreeing to put money back into an escrow
account in some cases to make the repairs after closing. If the repair list is
massive, then we may need to switch you to one of our Renovation and Repair
loan programs. Title issues, most of the time, are managed or cured by an
experienced closing attorney.
6. What is your advice to anyone who is about to begin the process of getting a home loan to
purchase a house or to refinance?
a. Know what your budget can easily bear on the amount of a house payment. If you have good
credit and some liquid assets, the computerized underwriting software may preapprove you
for a house payment that is 40% or more of your gross income and a debt ratio of over 50% of
your gross income. But do you REALLY want to spend your life making a house payment and
nothing else? Why not try and keep the house payment under 30% of your income and your
total debt to income ratio under 41% of your gross income. Plan your home purchase so that
you will always have savings left for emergencies.
b. Put very experienced real estate professionals with good reputations to work for you. You
need a good realtor, a good mortgage officer (Susan and I would like very much to work with
you), a good title company or closing attorney and more. Their experience will help you avoid
costly mistakes.
As your mortgage loan officer, I advise you to consult with Susan and I FIRST before you start paying
off debt or rearranging credit. For some of the best loan programs, we use enter the information on
your loan application and your credit report through a computerized underwriting system. We want
to see an APPROVE/Eligible status from the computer before we go further with processing your loan.
<PLAY FEW SECONDS OF THEME FROM STAR TREK> The software system is very much like the Vulcan
Spock on television series Star Trek. The computer makes its decision about your loan status like this:
First Priority—Liquid Funds In Reserve– The most important factors are liquid assets like money and
tradable securities first, followed by equity in the home, credit history, income stability and condition
of the house. Fannie Mae’s research proves that there is less likelihood of loan default when the
borrower has made a higher down payment, managed their finances well and has a fair amount of
money left in the bank account after closing. I have had customers who came to me for a loan and
informed me that the day before they talked to me, they emptied their savings account to pay off
credit cards. SomeTIMES, the borrower might not get a loan approval if she uses her savings to
reduce her monthly bills instead of leaving savings in the bank. In many cases it is better for the
borrower to have a higher than normal income-to-debt ratio rather than using her savings to pay
down excessive debts. Ask your loan officer what should be paid down or paid off before you make any
financial moves.
7. What are some common mistakes people make when they start trying to fix their credit?
Susan and I have trained to use the Credit Simulators (kind of like a flight simulator) where we
can help our clients go from a low score of say 600 to a higher score of around 640 or even over
700 in a 45 to 60 day period. The trick is to know the priorities the credit scoring software uses
to determine your credit score. I believe in paying debts off. If you owe them, you should make
every effort to pay them. However, if you have a 600 score and you need 40 or 50 points or
more in less than 60 days—listen up—don’t pay off the collection accounts just yet—unless the
specific loan program requires you too. When you pay off an aged collection account,
eventually it will boost your scores but at first it can tank your scores down even lower. That’s
why it is better to wait until AFTER you buy your home or refinance to start paying off
collections. Please do NOT pay OFF your credit cards. If you are trying to boost your scores,
keep your balances owed UNDER 30% of the total credit limit and always over 12 dollars each
month. If you pay it off, it doesn’t give you a score so you don’t get the points on the board that
you need to boost your credit scores. Of course, always pay your bills on time and don’t go out
opening a bunch of new accounts.
8. How do you know when it makes sense to refinance your mortgage?
There are 3 common reasons homeowners refinance their mortgages:
a. They want a lower payment. If just lowering your payment is your end goal, then a good rule
of thumb is that the amount you save each month with the lower house note needs to be
enough to make up for the closing costs you paid or that was rolled into your loan and you
need to recapture that cost withn less than 18 months to 24 months –depending on your
specific situation
b. Another reason people will refinance their homes is so they can lower the interest AND pay
the loan off early. Make sure the payment still fits your budget though
c. Cash out refinances— that is when homeowners borrow more than they currently owe on the
house and use the money to pay off additional debt or they reinvest the money to make more
money.
9. When is it right to buy a house vs rent one?
4th segment REAL ESTATE TIP OF THE WEEK: Sherri Henley comes back in with
iShare social Media tip for our real estate professionals.)
Jo’s announcements:
Talk Shoppe offers free education and networking to anyone interested in real estate or in business.
Coming up Wednesday January 21st, 2015, Sherri Henley of iShare Agency, an affiliate of Business Over
Coffee International will be talking about ”Harnessing The Power Of Your Audience.” Talk Shoppe
events are free at the YMCA NUBER CENTER 5885 Quince Rd Memphis (across from Lichterman Nature
Center) 9A to 10A Wednesday. For more information go to www.TalkShoppe.com
To hear today’s podcast of the Real Estate Mortgage Shoppe and others, go to
www.JoGarner.com
Looking for a great place to work out and get back in shape? Check with the YMCA
on how to become a member. Special deals running through January 2015 Go to
www.ymcamemphis.org.
Transitional Music: “Money Changes Everything” Cindi Lauper ; Good Advice by Allan Sherman; Safe and Sound by Capital Cities ; Roar by
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ABOUT PAT GOLDSTEIN, REALTOR CRYE-LEIKE MEMPHIS (901) 606-2000
Katy Perry
ABOUT SHERRI HENLEY OF
SHERRI HENLEY INTELLIGENCE:
Sherri started quickly-growing collaborative business networking group, BOCI, and remains deeply and
personally involved and committed, amid the growth of her personal demand.
Sharing her knowledge, her skill set, and her story in Sherri’s lauded writing style and voice. Available
now through several channels.
Teaching business leaders and owners how to leverage the power of social media in their industry
through personalized, private training, as well as public workshops.
http://sherrihenley.com/about-sherri/
ABOUT JO GARNER:
Jo Garner’s Bio
www.MortgageLoansBlog.com www.MoneyShoppe.NET (901) 482 0354 jogarner@mindspring.com
Jo Garner is a mortgage officer with extensive knowledge in tailoring mortgages to her
customers who are refinancing or purchasing homes all over the country. She offers
conventional, FHA, VA or other loan programs for refinancing and purchases.
Jo can help you look at rent vs buy, when it makes sense to refinance, how to get the best deal
on your home purchase financing.
Jo Garner has been in the real estate/financing business for over 20 years. She got her start in
Portland, Maine where she first began her real estate career. She received her real estate
education from the University of Southern Maine and was personally mentored in San Diego,
California by Robert G. Allen, author of Nothing Down, Creating Wealth and The Challenge.
On moving back to West Tennessee in 1987, she went into business buying and selling
discounted owner-financed notes secured on real estate. In 1990 Jo went to work for a
residential mortgage company and has been a mortgage loan officer for over 25 years. Her
goal is to offer excellent, affordable service to her customers, tailoring the loan programs to the
specific needs of her clients.
In addition to her work in the mortgage field, Jo Garner is the primary sponsor and founder
of Talk Shoppe in Memphis. www.TalkShoppe.BIZ She was also the editor of Power Shoppe, a
free weekly ezine designed for real estate professionals and others indirectly connected to the
real estate industry and currently publishes on her blog www.MortgageLoansBlog.com .
For real estate financing solutions, plug into the Real Estate Mortgage Shoppe program.
You can find mortgage rates, FHA Streamline refinance with no out-of-pocket costs,
refinancing options, home purchase loan programs, answers and real estate, money-
saving tips and more.
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