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P: (901) 482-0354 | E: Jo@JoGarner.com

P: (901) 482-0354 | E: Jo@JoGarner.com

GOOD ADVICE FOR GOOD-LOOKING FLOORS & LOOKING GOOD ON THE MORTGAGE APPLICATION

by | Mar 31, 2014 | Financing & Refinancing, Tips, Tricks & How To's

 3-29-14 podcast

HIGHLIGHTS FROM PODCAST:

Market News

Look Back Memphis Trivia Contest

QUESTIONS ANSWERED BY GWEN CHRISTENSEN:

  1. Gwen, everyone has a story of why they name their business this or that.  What is the story behind the name of YOUR business Builders Floors and Interiors?
  2. What exactly do you sell at Builder’s Floors and Interiors?  
  3. What separates Builders Floors and Interiors from the big box stores and how have you successfully been able to get the flooring installations below their prices for your customers?
  4. You have many skills in addition to knowing your products  including your decorator skills.  When someone is building a home or remodeling one, what exactly do you do for your client to make it easier for them to coordinate all the items needed? 
  5. What is the difference between laminate floors pre-finished floors and solid vinyl floors?
  6. How do you know which carpet fibers to choose from for durability, colors or styles?
  7. What is your opinion on the best flooring for kitchens or sun rooms—ceramic tile, vinyl flooring or what’s best?
  8. I know YOU are the expert on flooring of all types.  What kind of expertise do your installers bring to the job? 
  9. What is the best way to prevent pet stains and odors on carpet?  
  10. Once the damage is done with pet stains, how can a homeowner get rid of the stain and the odor from their carpet?
  11. What are the do’s and don’ts on what to use for cleaning  laminate flooring?  Vinyl?  Hardwood?

    

QUESTIONS ANSWERED BY JO GARNER:

  1. What are the number one areas where people can make a good impression on their mortgage loan application? 
  2. What are some specific things people can do to improve their credit scores? 

 

  1. How do credit cards and revolving debt affect your credit scores and how you look on a mortgage application? 

 

REAL ESTATE TIP OF THE WEEK

____________________________________________________________________________________

Good morning Memphis! Good morning to our internet listeners across the country.  Grab your cup of coffee and join us around the coffee table.  You’re on the Real Estate Mortgage Shoppe program.  I’m your host, Jo Garner, mortgage professional with Evolve Bank and Trust.   Sitting across the table from me is Gwen Christensen, owner of Builders Floors and Interiors.  Our general topic today is “GOOD ADVICE FOR GOOD-LOOKING FLOORS & LOOKING GOOD ON THE MORTGAGE APPLICATION.”  But, we want to talk with you about WHATEVER you want to discuss regarding your real estate or real estate financing.   Your challenge or your solution may help someone else out there dealing with a similar situation.  Call us on the air at (901) 535-WREC.  That number again is (901) 535-9732.

Gwen Christensen is our flooring and decorating expert today.  I know from personal experience you know your product and you know how to provide solution to flooring challenges.  Its great having you around the table today, Gwen. Tell our listeners a little about yourself and what you do for your clients.

(Jo) Mortgage Rates climbed this week after the Fed signaled that it could raise short-term interest rates sooner than expected. Our mortgage market has been moving first on what the Federal Reserve SAYS rather that what it actually does.   When the Fed just started TALKING about tapering off the $85 billion dollar per month bond buying program, mortgage rates jumped up quickly last year.   It wasn’t until later in the year the Fed actually started tapering.  This week the Federal Reserve hinted that it might start going up on the overnight bank rate and this sent mortgage rates up again.  Rates are still good though–30YR FIXED – 4.5%

  • FHA/VA – 4.00%
  • 15 YEAR FIXED –  3.5%
  • 5 YEAR ARMS –  3.0-3.50% depending on the lender

<Gwen says something about being set at Builders Floors and Interiors for a big purchase and remodeling year for homeowners >

(Jo) My high school economics teacher on the first day of class told us two things never to forget about economics if we didn’t remember anything else— First, there’s no such thing as a free lunch  Second, The Law of Supply and Demand—if there’s something everybody wants but it’s in short supply, then the price of that something in demand is going to go up.   My realtor friends at the Women’s Council of Realtors told me this week that housing inventory is short right now because buyers are out securing their dream homes while the rates are still in the 4’s. If you are thinking about selling your home, now might be a great time.  If you’re thinking of buying a home, you can still enjoy rates in the 4’s if you make the move now.

Susan Belew and I are finding our clients experiencing competition from multiple offers when they are ready to make an offer on a house they really like.   Susan and I make sure they have a good mortgage preapproval letter to submit with their offer to give them an advantage over the other person making an offer.  If you have been thinking about buying a house or refinancing one, Susan and I want to talk with you.  Once we determine your comfort level on the house payment and money down if any, we can work up numbers for you on different scenarios so you can get a feel for what your options are.  It only takes a few minutes.  Call us directly off the air at 901 482 0354.  That number again is 901 482 0354  or catch us on our blog www.mortgageloansblog.com

<Gwen makes a comment about since the estimates are free, why not take a few minutes and look at the options.  Gwen can talk about the fact that she gives free estimates too>

(Jo)  There are still so many bargain opportunities out there for buying and refinancing real estate.   Number ONE:  Values have gone up considerably and very quickly in some neighborhoods.  If you have tried to refinance your home before and couldn’t because you were underwater, your values may have gone up recently enough to allow you to finally refinance to a much lower interest rate.  Susan and I have some special products that may help you lower your rate.

The other bargain opportunities looming right now in the Memphis area and around the country are buying at a bargain fixer upper properties.   Not many banks have multiple loan programs for fixer upper properties, but I do.  I have the government FHA 203K renovation and repair loan that allows owner occupants to get into the home for only 3.5 percent down payment plus closing costs and prepaid taxes and insurance.

I also have a renovation and repair loan on the conventional program that will allow buyers to get into the homes for as little as 5% down and some closing costs.   A real estate investor buying a home to rent to tenants would pay 20% down on this loan but that’s still good since he is getting money for repairs.

Gwen, we’ve been talking about how to find a bargain in real estate right now.  I know for a fact that you and Builders Floors and Interiors can beat the prices from the big box stores on flooring installation.   How can we get some good-looking floors at a bargain price from Builders Floors?  <Gwen launches her topic>

 

 

2nd segment: It’s time for our Look Back Memphis Trivia Contest brought to you by notable Memphis historian, Jimmy Ogle.  Jimmy Ogle gives free walking tours in Downtown Memphis during the Spring and Autumn. Go to jimmyogle.com for the 2014 Spring season schedule and locations. The first person to call with the correct answer to our trivia contest gets a $25 VISA gift certificate from our sponsors, John and Jennifer Lawhon of Lawhon Landscaping.  The Lawhons can give your property a great new look even if you’re on a budget. The time to get those new landscaping beds in are NOW before the weeds move in.  Give the Lawhons a call at 901 573-9757.

Garner # 9 03/26/14

Union Avenue

Question:  I am a street in Downtown Memphis that was named in 1819 by Andrew Jackson, one of the three co-founders of Memphis who never lived here in Memphis and I was the southern boundary of the original town plan.  Who am I?  If you know the answer to our trivia question call us right now on the air at 901 535-WREC.  That number again is 901 535-9732.

Hint:  My name has nothing to do with the merger of Memphis & South Memphis, nor the Civil War.

Hint:  I was the first thoroughfare in Memphis to be declared an “arterial” thoroughfare.

Hint:  The “Graceland of Cotton” is located on one of my corners (at Front Street).

Last Hint:  The address of the South’s Grand Hotel graces my name, and so does its Ducks!

Answer:  

Back Story:  Contrary to two popular myths about the naming of Union Avenue – one being that the 1850 annexation of a small community known as South Memphis (Beale Street was its “Main Street”) thus the “union” of the two towns, and the other being the Union occupation during the Civil War years of 1862-65, the Union appears on the original town plan of 1819, as the southernmost boundary.  Many historic properties may be found along Union Avenue beginning at the Cobblestones, Promenade, Cotton Row, Cotton Exchange, WDIA, November 6th Street, Peabody Hotel and the Nineteenth Century Club.  Union was lined with large mansions until commercial encroachment began its domination of Union with the advent of the automobile.

Union Avenue was designated the first “arterial” highway in Memphis in the early 20th century, made for high speed and high volume of automobile traffic which would flow for longer distances. The effects of automobiles caused Memphis to sprawl eastward gobbling up smaller incorporated towns (now known as a portion of “Midtown”) such as Madison Heights, Idlewild and Lenox. With annexation absorbing all the way out east to Goodlett in 1929, the race was on.  The Union Viaduct opened in 1961 that continued Union Avenue over the Belt Line Railroad (and under the Poplar Viaduct) to Walnut Grove and further east . . .

Last Week:  Claridge House.  Open in 1924, the Claridge House was a 17-story, 150-room hotel full of Luxury, Charm and Atmosphere located at the corner of Main and Adams.  By the end of the post-WW2 era, the automobile became the means of most travelers and the Claridge built a parking garage at Front & Adams to compete.  The Pilot House Motor Inn (now the # 1 rated Comfort Inn in America by its guests) was opened on the roof of this garage, but in the 1980s the Claridge became apartments and then in 2005 converted to condominiums. 
Jimmy Ogle gives free walking tours in Downtown Memphis during the Spring and Autumn.
Go to jimmyogle.com for the 2014 Spring season schedule and locations:

Shelby County Courthouse: Third Thursday each month at 12:00 noon
Memphis & Arkansas Bridge Walk: Sundays (March 30, April 13, May 18) at 2:00 p.m. at Crump Park
TUESDAY TOURS: Tuesdays from April 1 to June 10 at 11:45 a.m. for about four blocks from a different
street corner each week

 

QUESTIONS ANSWERED BY GWEN CHRISTENSEN:

  1. Gwen, everyone has a story of why they name their business this or that.  What is the story behind the name of YOUR business Builders Floors and Interiors?
  2. What exactly do you sell at Builder’s Floors and Interiors?  
  3. What separates Builders Floors and Interiors from the big box stores and how have you successfully been able to get the flooring installations below their prices for your customers?
  4. You have many skills in addition to knowing your products  including your decorator skills.  When someone is building a home or remodeling one, what exactly do you do for your client to make it easier for them to coordinate all the items needed? 
  5. What is the difference between laminate floors pre-finished floors and solid vinyl floors?
  6. How do you know which carpet fibers to choose from for durability, colors or styles?
  7. What is your opinion on the best flooring for kitchens or sun rooms—ceramic tile, vinyl flooring or what’s best?
  8. I know YOU are the expert on flooring of all types.  What kind of expertise do your installers bring to the job? 
  9. What is the best way to prevent pet stains and odors on carpet?  
  10. Once the damage is done with pet stains, how can a homeowner get rid of the stain and the odor from their carpet?
  11. What are the do’s and don’ts on what to use for cleaning  laminate flooring?  Vinyl?  Hardwood?

    

QUESTIONS ANSWERED BY JO GARNER:

  1. What are the number one areas where people can make a good impression on their mortgage loan application? 
  1. If you have assets like a large savings account, CD’s, mutual funds or retirement funds, go ahead and disclose them on the loan application even if you aren’t going to use the funds for closing.  Automated underwriting programs and even HUMAN underwriters like to see reserve funds for a borrower. It insures if there was an unexpected emergency, the borrower would be able to weather the storm without missing a house note.  Liquid assets are what I call “grease on the cog” because it can ease a loan into an approval status even if there are other aspects of the file that might not be so clean.   We had a customer this week who came to us after being turned down at a different bank.  Susan and I tried a number of different strategies to get her to the point where the computerized underwriting systems would preapprove the loan.  How did we get her approved?  We discovered she needed to show 2 months of house payments left in reserve after closing.   Knowing that information, she now knows how much she needs to have verified  in her bank account when it comes time to close.
  2. State your income correctly. If you are a W2 employee, don’t over state your income.  Most of the time the previous W2 and the year-to-date income totals on your latest paystub help you get the income right.   That is what a loan officer will look for.  If you write off unreimbursed employee expenses on your tax return, let the loan officer know because this amount gets deducted from your regular income.

We recently worked with a client who told us he made around $4 grand per month in income. Later we discovered from his employer’s Verification of Employment that his base guaranteed income was only about half of that and that he had the opportunity to make other income on commissions.  Since our client had not been on this job very long, we could not count the commission income and had to start working on reducing his debt to make his loan work.

If you’re self employed, or a 1099 subcontractor or you own over 25% of the company or if over 25% of your income comes from commissions, let the loan officer know.  The formulas and methods for calculating your income is VERY different than if you are a regular W2 income employee.     If you’re self-employed and have good credit and you’ve been turned down at another bank, please call me.  Fewer and fewer loan officers today know how to find your income in the BACK pages of the tax return.   I may be able to help you.   Call me right now on the air at 901 535 WREC or call me directly off the air at 901 482-0354. That direct number again is 901 482 0354.

  1. What are some specific things people can do to improve their credit scores? 

My assistant Susan Belew and I have trained our team on using the Credit Simulators. Its sort of like a flight simulator.  It can suggest ways to get your credit scores higher in the least amount of time with the least amount of investment.

Credit scores are important.  A great credit score is 740 or higher .   if you scores are lower you can still get a loan but sometimes you end up paying a higher interest rate.

  1. Everyone knows you need to make your payments on time.   But not many people know that 30% of your credit score is made up of your borrowing habits on revolving accounts like credit cards.  To boost your credit scores the highest, you want to keep your balance owed BELOW 30% of your total credit limit on credit cards.  If you borrow over half of your credit limit even if you pay your bill on time, it can drop your credit scores significantly.   For instance, if you have a credit card with a $1,000 credit limit, don’t ever borrow more than $300 on it. Keep your balance owed under 30% of the limit.
  2. Don’t ever run out and pay off a bunch of bills before coming to see your loan officer.  I’ve had people come to my office and announce that they paid off a bunch of collection accounts before coming in for their loan, and then they’re shocked when their credit scores have nose-dived over 100 points.  Why is that? If the collection accounts are old, they weren’t affecting your scores that much until you paid them off. Then the computerized scoring program saw the updated collection balance as a new collection.   I’m all for paying off your collection accounts, but if you have old collections on your report, wait until you are closed on the loan before you pay them off.

 

  1. How do credit cards and revolving debt affect your credit scores and how you look on a mortgage application? 
  1. Everyone knows that you need to make your payments on time to keep a decent credit score.  What most people do not realize is that credit card activity makes up 30% of your credit score.    Here are some rules of thumb we have covered earlier:
  1. For the best results on your credit scores, keep the balance owed on your credit card under 30% of the total credit limit.  If you have a credit limit of $1,000, never borrow over $300 dollars.  If you have a credit limit of $10,000 dollars, never borrow over $3,000 dollars.  Absolutely never borrow over 50% of your total credit limit or it often HURTS your credit score—even if you make the payments on time.
  2. If you have a 30 day account like American Express that you are required to pay off in full every month, then you need to show enough money in the bank to pay it in full plus whatever you are required to pay at the closing table when you sit down to finalize your loan closing.  There have been instances where when the loan officer did the initial credit report the American Express account showed a zero balance and the automated underwriting systems only required the borrower to show enough funds to close the loan plus a couple of months worth of house payments in reserve.  BUT… right before closing when the final credit report was pulled, the American Express showed a $25,000 balance.  Let’s say the automated underwriting systems only required the borrower to show $100,000 properly verified in the bank—just enough to pay the down payment and whatever other costs involved with closing on the house.  In order not to count the American Express payment, the loan officer now needs to verify $125,000 dollars to cover the $100K for closing and $25k to pay off the American Express.  Sometimes loan officers do not require to show funds to pay off the American Express if the borrower’s debt-to-income ratios are acceptable with the loan officer adding 5% of the American Express balance to the debts.  Most of the time we need to show the client has the funds to pay in full the American Express balance.  If you want to avoid this complication and your loan is in process, just don’t borrow on the American Express until the loan is closed.

 

 

 

REAL ESTATE TIP OF THE WEEK:  Determine what you can comfortably pay on a house note before beginning your search for a home.  The quick way to do this is to review the last 3 months of your bank statements and credit card statements and add to that the expenses you pay periodically like car tags and insurance.  What do you REALLY spend each month?  What do you ABSOLUTELY have to spend?  What can you truly be comfortable paying on a house note and still have money to save each month? A good rule of thumb is to keep your total house payment with taxes and insurance included between 25% and 30% of your gross income.   Your new house payment and other recurring debts like your car note, credit card payments, and other loans should be under 43% of your gross income.   It’s important that YOU know what your comfort level is because the computerized underwriting systems can and often will preapprove your loan on much higher ratios than the suggested standards.    

 

Gwen Christensen offers special tips on cleaning vinyl, laminate, hardwood and carpet.  Also gave tips on how to prevent pet stains and odors from carpet 

 

Announcements:  Talk Shoppe offers free networking and education to anyone interested in real estate or in business.  This Wednesday April 2nd 2014 David Grigsby, physical therapist at Mid-South Orthapaedic will be talking about “Designed To Move And Value-Based Health Care”  9A-10A at DeVry University 6401 Poplar Ave 6th floor.  For more information about Talk Shoppe go to www.TalkShoppe.BIZ  

Next Saturday on the Real Estate Mortgage Shoppe, national speaker and author Terri Murphy of Terri Murphy Communications will be talking with Mike White, real estate and mortgage sales trainer about the real estate market and ways to be successful in the real estate industry.  For today’s podcast and our other podcasts, go to www.mortgageloansblog.com 

Transitional Music:    She’s Got The Look  by Roxette; “Good Advice” Allan Sherman; Magic Carpet Ride  by Steppenwolf

 

Eric Meyers of The Confectionery of Memphis crashed the studio again bringing some rum balls, coffee cookies, brownies and other good time snacks left over from one of his catering events.   This awesome chef is ALWAYS welcome to crash our studio.   He is our producer, Sherry Hardiman’s, favorite unofficial guest!   901 277 4428  www.theconfectionerymemphis.com

About Gwen Christensen, Builders Floors and Interiors  (901) 382 2155  www.buildersfloorsandinteriors.com

 

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 17 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 is currently the host of the Real Estate Mortgage Shoppe program 9A-10A CDT Saturdays on News Radio AM 600 WREC and IHEART Radio http://www.iheart.com/#/live/2145/?autoplay=true   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.