BUILD IT LIKE YOU LIKE IT—HOME RENOVATIONS & MORTGAGE FINANCING STRUCTURE

 

6/28/14 podcast

 

HIGHLIGHTS FROM TODAY’S PODCAST:

 

MARKET NEWS

 

LOOK BACK MEMPHIS TRIVIA CONTEST

 

 

Questions Answered By Gwen Christensen:

 

1. 1.     When someone is building a home or renovating one,  what exactly do you do to make it easier for them to coordinate all of the items needed?

 

1. 2.     How have you been able to successfully beat the price of flooring and installation against the Big Box stores?

 

 

1. 3.     What’s the difference in square foot price versus the final costs of an installation?

 

1. 4.      You have interior decorator skills too.  Do you charge individuals a fee to select their colors and coordinate their interiors with their floor covering?

 

1. 5.     What exactly can you offer a consumer that a big box store can’t offer them?

 

1. 6.      Do you offer financing like the big box stores do?

 

1. 7.      Do you price your carpet by the square foot or by the yard?

 

1. 8.     What’s the difference in experience of your shop personnel vs a big box store?

 

1. 9.     What is your recommendation for cleaning their carpet?  And what about cleaning wood?

 

 

Questions answered by Jo Garner:

 

1. 1.     What are the number one areas where people can make a good impression on their mortgage loan application?
2. 2.      What type of renovation and repair loans do you have for people wanting to fix up their homes or people buying a fixer-upper house?
3. 3.     What are some repairs or renovations that can add the MOST value to a home?

4^TH SEGMENT:  REAL ESTATE TIP OF THE WEEK (Gwen Christensen) about 1.5 minutes (Jo adds her tip about making sure your loan terms are comfortable for you with the payment and the down payment.) 

 

REAL ESTATE TIP OF THE WEEK—

 

Announcements

___________________________________________________________

 

 

Good morning, Memphis!  Good morning across the country on IHEART radio.  Soak up some of the longest days of the year and finish building your house or renovating your home.  You’re on the Real Estate Mortgage Shoppe program.  I’m your host, Jo Garner, Mortgage Professional with Evolve Bank and Trust.  We want to talk with you about WHATEVER real estate topic you want to talk about.  Our general topic is “Build It Like You Like it–Home Renovations & Mortgage Financing Structures.” Our co-host today is Gwen Christensen, owner of Builders Floors and Interiors.  Gwen, thank you for all of the financial support and contributions you have been making over the years  to the Talk Shoppe group –making free information and networking available to business owners in the community.  Tell us a little bit about yourself and about what your company Builders Floors and Interiors does for your customers.

 

(Jo)   Gwen, I mentioned your support of Talk Shoppe and what they offer free to business owners around the community.  You have quite a success story of how you survived the real estate crash of 2008.  What would you say to encourage someone in that situation? 

(Jo) The real estate market has certainly gotten better since the 2008 debacle. The latest edition of The State of the Nation’s Housing was released yesterday by the Harvard Joint Center for Housing Studies and indicates that our U.S. housing recovery should regain its footing but faces challenges in the area of tight credit, unemployment and higher student loan debt among young Americans who normally make up the first-time homebuyer market.  The rental market has been hot but, even that market is projected to slow with everything hinging on the job market.

 

Even after the afternoon pricing on mortgages went up a little yesterday afternoon,  today’s rates are still the best this month and very close to being the best this year. IF YOUR PURCHASE OR REFINANCE DEAL WORKS FOR YOU TODAY, DO IT TODAY.    If you’re not able to lock right now, be aware that the prospects for volatility will be increasing as we get closer to the Jobs Report coming out Thursday. 30YR FIXED – 4.125

• FHA/VA – 3.75%
• 15 YEAR FIXED –  3.375%
• 5 YEAR ARMS –  3.0-3.50% depending on the lender

 (Jo) Today since our general topic is “Build It Like You Like it–Home Renovations & Mortgage Financing Structures,”  I would like to point out the importance of structuring your mortgage terms so that you are comfortable with the payment and down payment not only today, but also so those same terms can help you accomplish your goals for the future too.  Some of my clients come into the office saying they want to pay their mortgage off early.  The best mortgage in the world is the paid off mortgage! But in talking with these clients it becomes clear that the higher 15 year payment does not leave enough flexibility on the budget in an emergency—which is especially true with rental property. Sometimes we structure the mortgage with a very low payment on a 30 year term but set up prepayments to be made to the principal so that the loan can be paid off in 15 or 20 yrs.  If an unexpected financial catastrophe strikes, they can always drop down to the more comfortable 30 yr payment since that is how the loan was structured in the beginning.   Flexibility can bring peace of mind.  And peace of mind is PRICELESS.

My very capable assistant, Susan Belew and I want to talk with you if you or someone you know is thinking about  buying a home, refinancing a home, or renovating one.  Let us know what your comfort level is on the maximum payment and down payment and what you want to accomplish from the transaction.  We can do the numbers for you to compare some scenarios.   We have shocked some of our refinance customers because they thought their mortgage rate was low enough, but when we did the numbers, not only were they able to shorten their loan, knocking off tens of thousands of dollars in payments but they were able to retire early and send two older children to college.  If you want us to do the numbers on YOUR mortgage possibilities, call us right now on the air at 901 535-WREC or call me directly off the air at 901 482-0354.  Or catch us on our blog www.MortgageLoansBlog.com

 (Jo) You want to build it like you like it. You want to renovate it like you like it.  You want your mortgage terms to be just like you like it.  If you are currently renting but plan on living in the area for 3 years or more, it is probably cheaper to BUY a house rather than RENT. Let Susan and I do some numbers for you.   If you want to refinance but have not been able to succeed in getting this done in the past, Susan and I have some programs that don’t even require an appraisal.  If you’re self-employed and have good credit but have been turned down at other banks for lack of income, let Susan and I see what we can do for you.  We have gotten several self-employed borrowers approved just by adding legitimate income to your bottom line from the BACK pages of our tax returns. Call us at 901 482-0354.

Gwen, tell us how Builders Floors can continually beat the Big Box prices on flooring and installations.   <Gwen launches topic>

2ND SEGMENT  9:18 AM It’s time for the 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. For information about Jimmy Ogle and his schedule for the historic walking tours, go to jimmyogle.com.  Our Look Back Memphis Trivia Contest SPONSOR is Marlene Foster of ADT Security Services—the number one security system.   Give Marlene a call at 901 232-6277.  She will take good care of you  Marlene is giving away a $25 gift card to the first person who calls with the correct answer to our Trivia Contest.   If you know the answer, call us on the air at (901) 535 WREC.  (901) 535 9732.

Here’s our trivia question : Who am I?  (go to hints)

 

 

Garner # 20  06/25/14

Vollintine-Evergreen  (VECA)

Question: 

Hint:  My neighborhoods reflect “Midtown” development between 1890 and 1957.

Hint:  I have four neighborhoods on the National Register of Historic Places.

Hint: I have one of the first abandoned railroad lines in Memphis to become a successful walking trail.

Last Hint:  I was once known for dairy farms, known as Terrytown and Springdale.

Answer: Vollintine-Evergreen Community Association. The VECA  neighborhood encompasses one of the largest collections of early 20th Century residential and commercial buildings in the City of Memphis. The neighborhood includes four separate National Register Historic Districts reflecting different periods of the neighborhood’s development from 1890 to 1957. The National Register nominations for these districts provide a fascinating and detailed history of the area, as well as a list, architectural descriptions, and dates of construction for more than 4,000 commercial and residential structures within the neighborhood.

The neighborhood’s four historic districts include:  Vollintine Evergreen Historic District (1890-1946), bounded by Watkins, Vollintine, Faxon, Jackson and University streets;  Vollintine Evergreen North Historic District (1914-1947), bounded by McLean, Vollintine, University and Rainbow Circle. Access the nomination for this area VECA.  Vollintine Evergreen Avalon Historic District (1925-1947), bounded by Stonewall, Vollintine, Evergreen and Cypress Creek. Access this nomination; and, Vollintine Hills Historic District (1946-1957), bounded by Vollintine, Brown, McLean and Evergreen. Read about the history of Vollintine Hills.

Architectural styles found in the Vollintine Evergreen neighborhood include Queen Anne, Four Square, Craftsman, Bungalow, Tudor and English Cottage Revival, Dutch Colonial Revival, Spanish Revival, and Eclectic styles. The neighborhood also contains several historic commercial districts, as well as numerous churches, schools, apartment buildings, and Rhodes College. In addition, there are historic MLGW utility structures built for pumping artesian water, WPA bridges and the former L&N Railroad, which has been converted by the neighborhood into a public footpath known as the V&E Greenline.

Originally, back in the 1890’s, the VECA region of Memphis was mostly dairy farms that were divided into two communities: Terrytown, established by the Terry family, and Springdale, a stop on the L&N Railroad between Memphis and Nashville.

Last Week:  Red Acres.   Of course!  Established in 1926 by developers Henry Brennan and Robert Jordan, Red Acres is bounded on the west by Highland Street, south by Poplar Avenue, east by Goodlett Street and north by Walnut Grove.  Red Acres is 256 acres, with 250 homes and derives its name from the prominent stand of Redbud trees on the grounds at the time.  The developers donated 120 acres of land that became Galloway Golf Course, and honored Robert Galloway, a leading citizen and former Chairman of the Memphis Park Commission.

 

Red Acres is a middle to upper income neighborhood, with Ranch and Minimal Traditional homes on its exterior and large Estate homes in the interior, which are of impressive architecture and high values – a source of pride for the neighborhood.  Having no sidewalks nor much apparent sub-surface storm drains along the narrow lanes makes the streetscape slow and conducive for residents to walk, stroll and bike.  The acorn streetlights and large stand of trees give the impression of an old country lane.  Located east of Poplar Plaza Shopping Center and north of Second Presbyterian Church and University Of Memphis campus, street names are Lily, Rose, Red Bird, Poppy and North, East and South Galloway!

 

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
TUESDAY TOURS: Tuesdays at 11:45 a.m. for about four blocks from a different street corner each week, beginning again in September!

 

 

Questions Answered By Gwen Christensen:

 

1. 10.  When someone is building a home or renovating one,  what exactly do you do to make it easier for them to coordinate all of the items needed?

 

1. 11.  How have you been able to successfully beat the price of flooring and installation against the Big Box stores?

 

 

1. 12.   What’s the difference in square foot price versus the final costs of an installation?

 

1. 13.    You have interior decorator skills too.  Do you charge individuals a fee to select their colors and coordinate their interiors with their floor covering?

 

1. 14.   What exactly can you offer a consumer that a big box store can’t offer them?

 

1. 15.    Do you offer financing like the big box stores do?

 

1. 16.    Do you price your carpet by the square foot or by the yard?

 

1. 17.   What’s the difference in experience of your shop personnel vs a big box store?

 

1. 18.   What is your recommendation for cleaning their carpet?  And what about cleaning wood?

 

 

Questions answered by Jo Garner:

 

1. 4.     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.  
   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. I had a customer state that his income was salary but when we got his verification of employment back from his employer he was showing his income was from commissions.  Normally this is still okay except that our client had only been working for this company for a few months and did not have a 2 year history with that company to average the commissions, so it did not look like we could make the deal work.  Fortunately, the employer sent over a clarification that even though he worked on commissions, he was guaranteed a certain amount each month.  This amount made the deal work. 

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. 5.       What type of renovation and repair loans do you have for people wanting to fix up their homes or people buying a fixer-upper house?

Jo talks about the FHA 203K renovation and repair loan.  Its an R&R loan but R&R doesn’t stand for rest and relaxation unless you are hiring someone like Gwen Christensen of Builders Floors and Interiors while you go on vacation.

On the FHA 203K renovation loan or the conventional Renovation and Repair  loan you can borrower the money to buy a house or refinance one.  We add in the cost to repair your home and add some reserve money to make sure you have enough.  You pay in about 3.5% of the total plus some closing cost on the FHA loan. You pay down about 5% on the conventional renovation loan program—unless you are an investor buying rental property –then its 20% down.

.

 

1. 6.     What are some repairs or renovations that can add the MOST value to a home?

If you’re trying to sell or refinance your home on a program that DOES need an appraisal and you want to get the value as high as possible for the least amount of investment, first make sure repairs are done that affect the habitability of the house—like a leaky roof, rotted wood, malfunctioning electrical and plumbing or heating and air systems, peeling paint, torn or broken flooring or holes in the wall.  Obviously if there are problems with the foundation of the house that will be a priority to fix.  If the crawl space or basement has water in it or mold,  that repair would be a priority.  If junk in or around the house is a safety hazard, then the junk would have to go.

If you are upgrading the house, then adding heated space can add value if you aren’t over building for the neighborhood.  Upgrading a bathroom or kitchen is usually a good choice.  Swimming pools and landscaping usually does not add value dollar-for-dollar but it can sure add enjoyment.

 

4^TH SEGMENT:  REAL ESTATE TIP OF THE WEEK

 

Jo’s announcements:   Talk Shoppe offers free education and networking to anyone interested in real estate or in business.  This Wednesday July 2nd, 2014 9A-10A at the YMCA Corporate office 6373 Quail Hollow Rd 2^nd floor Memphis, TN 38119 Talk Shoppe presents: “How To Buy At Auction” by Lance and Terri Walker of Walker Auctions. Then… The Old Bag Make-A-Wish Auction goes into action.  The Walkers and a very unusual   version  of Vanna White will be auctioning mystery purses containing anywhere from $25 to $300 in them.  All proceeds go to help grant a wish for a Make-A-Wish child.  For more information go to www.TalkShoppe.BIZ 

 

Talk Shoppe gives a big thank you to the YMCA of Memphis for providing a place to hold the free business events for the community.  The LIVESTRONG at the YMCA is getting ready to start our next session beginning July 7 at the Cordova YMCA. The 12 week program will meet on Mondays and Thursday from 9:30-11am. To become a part of this session participants need to be 18 years old and up. Participants with any type of cancer are welcome. They may be going through treatments or not — may even be long time cancer survivor that needs help getting back to their normal life.

Please have any interested survivors contact Lisa Anderton, landerton@ymcamemphis.org or call 901-873-1434.

 

 

9:15 AM  “That’s The Way I Like It” KC and the Sunshine Band

9:30 AM  “Can We Fix It?” –from Bob the Builder  (please start at 1 min 12 seconds

9:45AM  “I Feel Good” by James Brown

 

 

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.