Let’s explore the pros and cons of buying a home today vs waiting. We look at customers who did buy vs not purchasing a home. We look at cons for buying a home in this end-of-the-year 2023
(1st segment 9:06am to 9:15Am) 1ST SEGMENT 9 MINUTES
(Jo)LET’S GET STARTED…(Jo) (Good morning, Memphis! Welcome to our internet listeners and podcast listeners across the 50 states! . You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Originator.You can connect with me at www.JoGarner.com. Our general topic DO I WADE IN NOW OR WAIT TO BUY A HOME—PROS AND CONS.
Today’s episode of Real Estate Mortgage Shoppe is brought to you by real estate closing attorneys Rob Draughon and Shelley Rothman of Griffin Clift Everton and Maschmeyer. For your home purchase or mortgage refinance, contact Rob Draughon and Shelley Rothman today at 901 752-1133. Call us live in the studio today, December 2nd, 2023 at 901-535-9732
Introducing Pat Goldstein, Realtor with Crye-Leike Realtors
Back in the studio we have realtor Pat Goldstein of Crye-Leike Realtors. Pat has over 35 years experience in the West Tennessee and North Mississippi real estate markets. She was voted Realtor Associate of the Year from the Memphis Area Association of Realtors and earned many other designations. Pat, people in our networking groups call you the “Gold Standard” in real estate. You certainly are! Take a moment and tell our listeners a little bit about yourself and what you do for your clients. (Pat has about 1.5 minutes to tell our listeners about herself and what she does for her clients.)
(Jo) Les Brown, the world’s number one speaker and best-selling author shares this story. He says, “ I was working with someone who said they didn’t have a story and a voice. I said, “Yes, you do, but you can’t see the picture when you’re in the frame.” I talked with them and asked them a few questions. I gave their story back to them and I did it. They were shocked. They cried and said, “You told my story better than I do.” Most people go through life half-stepping. They said that most people die at age 25 and don’t get buried until they are 65 because they don’t use the talents, abilities and skills that they have the ability to use. They go to their graves thinking that they were not able to do the things they envisioned for themselves. There’s a line in Lion King that says, “Simba, you are more than that which you have become.”
Some researchers have said that 90% of people have some regrets about their lives because of chances they DID NOT TAKE. If you are listening to this show and you know you want to buy a home and start building something for yourself, but you are afraid of wading out into the deep water of the unknown. Maybe you are afraid of making a mistake or biting off more of a commitment than you can chew. There is a solution for EVERY challenge. With the right professionals on your team, you can overcome every challenge.
A good, reputable realtor, an experienced mortgage loan originator, a good home inspector and title company, your certified financial advisor—they can make the rough places smooth for your homebuying journey, because they know how to avoid pitfalls and get through roadblocks.
HOW IS YOUR TIMING ON THESE FACTORS?
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Do you WANT to buy a house? Are you tired of wasting money on rent? Are you ready for the money you spend each month to help you build your OWN wealth? Do you need more living space?
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What is the maximum house payment that you can COMFORTABLY afford on a house payment? Can you restructure some debt to make more breathing room with the house payment? Can you make a list of products or services you use that can be substituted things that can give you the same benefit but at a lower costs? Can you trade or barter with others for things you need instead of spending your cash?
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How much will you keep in your emergency fund after paying money for closing when you buy your home? There are plenty of financial advisors online and in books who suggest that you keep enough in an emergency fund to cover 3 – 6 months of living expenses. Some say you need a year of living expenses put back if you are self-employed.
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How does your credit look? The higher your credit score, the better terms you can get on a mortgage. There are some three things you can do to boost your credit scores. Check your credit for free at www.annualcreditreport.com Call me and we can go over ways to get your credit scores hbsigher.
(JO) Realtor Pat Goldstein of Crye-Leike, what are some factors we need to consider if we are trying to decide whether to wade into the homebuying market or wait? Please get started and we can also continue after the 9:15 break. (Pat has a couple of minutes or so to start launching into his topics before 9:15 AM break)
Pat Goldstein talks about the importance of getting a lender letter showing that the homebuyer is very likely to be approved for the mortgage to buy the home.
A prequalification letter says we have seen the credit and are assuming the income and asset information is true as stated on the loan. The underwriting software is giving an indication that the mortgage will probably be approved based on the information on the loan application, but underwriting has not reviewed borrowers/
When a lender gives you a Preapproval letter, that is more solid than the Prequalication letter. The preapproval letter indicates underwriting has reviewed the credit, the income and the asset documents. In a competitive situation, having the Preapproval letter puts you in a more favorable situation.
Home Inspection vs Appraisal
Home Inspector inspects the condition of the home and reports to their customer a list of needed repairs or observations about future repairs the home owner will need to prepare to fix.
Appraisers have a primary job of giving the current value on the house. If the appraiser sees obvious repairs that are connected to the habitability of the home, he usually mentions those repairs on the appraisal. When the underwriter sees types of repairs, they tend to require these types of repairs done before closing
You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, licensed mortgage loan originator. What do YOU want to accomplish with your mortgage? I can make the home purchase mortgage process easy. It is easy to get started. Contact me at (901) 482-0354 www.JoGarner.com Realtor Pat Goldstein of Crye-Leike will be talking more about WHEN is a good time to buy a home. And HO HO Santa Claus with his booking agent Chuck Bohannan will be joining us. See you back in just a moment.
2ND SEGMENT 13 MINUTES
LET’S TALK SHOP—TALK SHOPPE
2nd segment is after 9:15 break from about 9:18Am to 9:30 AM break
It’s time to talk shop with Talk Shoppe’s Business Tip For Real Estate Professionals. Talk Shoppe is a marketing company offering free education and networking to anyone interested in real estate or in business or health and wellness. Talk Shoppe is made possible by the financial support of its sponsors. For more about Talk Shoppe, go to www.TalkShoppe.com (shoppe) For our Talk Shoppe Business Tip today we have Talk Shoppe Sponsor who is someone dedicated to help others and make the holiday season memorable in SO MANY positive ways—SANTA CLAUS . I am THRILLED to have you in our studio. what is our Talk Shoppe Business Tip for Real Estate Professionals today?
Tip: A dream is a wish the heart makes. At Christmas time more than any time this is true. If it is in your heart to own a home, contact a reputable realtor like Pat Goldstein and a reputable mortgage officer like Jo Garner. The professionals can help you avoid pitfalls and help you buy the house you want to own.
To book Santa Claus to come to your family event, your office or other holiday festivity, contact Chuck Bohannan (Santa Claus’ booking agent) at 901 619- 6436 HoHoOnTheGo50@gmail.com
TOPICS BY PAT GOLDSTEIN, REALTOR WITH CRYE-LEIKE
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What are some common tips you offer your clients who are buying their first home?
What factors should you consider when determining if this is the right time for you to buy a house?
When mortgage rates bumped up to the highest in over 20 years, demand for homes dropped off giving the people a better choices on houses to purchase. Since demand had dropped off, Lenders and sellers started offering concessions to help homebuyers pay some or all of the costs to buy a house.
Forecast are that when rates start to drop and (and they have been doing that for the last several days) and demand increases for the few homes left on the market, prices are predicted to go up. When demand increases are lenders and sellers going to continue paying costs for the buyer
When would you NOT want to buy a house?
If you are planning to move out of the area in the next year or two ( but if you buy a home in an area that traditionally goes up in value, you may still come out ahead by selling at a small profit. If the home sale market is in a slump at the time you sell, you may want to rent the house to tenants and make money that way for a while.)
If you cannot afford the house payment
(3rd SEGMENT 9:34 AM to 9:45 AM CT)
3RD 11 MINUTES
TOPICS COVERED BY JO GARNER, LICENSED MORTGAGE OFFICER
GOOD TIMING VS NOT SO GOOD TIMING
Tale of Two Home Buyers
Tale #1: Lei Le Longh Decides to Rent Instead Buy The House
Lei Le Longh was faced with a big decision that she had to make really fast. Her landlord gave her a short notice that he was going to sell the house she had been renting and she needed to be out in 30 days. She could buy the home down the street for about $250,000 and almost zero down. A sinking fear moved on her. Did she really want the commitment of owning a house? 1. The rent would be about the same as the house payment. 2. Taxes and insurance would go up if she owned the house and she would have to pay it. 3. She would probably remain living in the same general area for many years to come. Lei Le Longh worked at her job everyday and the thought of sitting down with a pen, paper and calculator to research a buy vs rent strategy on her home felt too overwhelming right now. Maybe next time she would buy, but for now she would just rent another place. The rent for the home next door to the one for sale was about $2,100 per month. It would be tight on her budget but it would do for now.
Cho Chin Decides to BUY Instead of Rent The Home
Tale #2: Cho Chin found herself in a similar situation as Lei Le Longh. Cho Chin needed to move out of the place she had been renting. Cho realized that now was the time to buy a home instead of just renting another place. At first the idea of searching for a home and getting a mortgage seemed daunting, but Cho remembered meeting a realtor at an open house on the street where she lived. Cho called the realtor to talk about her house buying plans. Cho called the mortgage originator recommended by the realtor. The mortgage officer explored with Cho various financing options, but Cho was excited about the almost zero down program for first-time homebuyers with the extra low interest rate. 1. The mortgage payment of $2,200 per month was $100 higher than the rental on the house across the street. 2. Cho reviewed the scenarios she got from her realtor and her loan officer. It looked like property taxes and insurance might go up over time, but the mortgage rate and principal and interest payment were fixed. The realtor and the mortgage officer showed Cho the forecast for home values to go up about 3% annually and that rents were expected to rise 6% per year. If these national companies were right on their forecasts, Cho saw advantages in buying and not renting. Cho bought her home instead of renting a home.
Five years later… Lei Li Longh, who decided to rent five years ago, walks across the street to talk to her neighbor Cho Chin who is out watering her flowers. They start talking about the time five years ago when they decided to move into the neighborhood.
Lei Le Longh shares her frustration with the constant rent increases. “I started out paying a little over $2,000 per month for rent five years ago. The landlord goes up on my rent every year and now I am paying $3,500 per month. It seems like I can never get ahead!”
Cho assures her neighbor Lei Le that she would not want to lose her as a neighbor. Then Cho offers to connect Lei Le to her realtor and mortgage loan officer. Cho explains that when she bought the house where she is living, the mortgage had a fixed interest rate that never changes. Cho says, “The only things that have changed are the taxes and insurance and it has changed only a little bit over these last five years. I have done some repairs now and again too, but it has been a small price to pay for the ability to own my own home. Values have been going up on homes in our neighborhood and my house is now worth over $30,000 more than the price I paid five years ago.”
So I ask you, our listeners: Are you trying to decide whether to rent or buy your next home? If you are planning to move away from the geographic area in the next 3 to 4 years, you may want to consider renting. Seek qualified financial advisors in your decision. Depending on how the market moves, real estate tends to be a better investment the longer you own it.
If you plan to stick around for five years or more, let’s explore some financing options available to you. I can make getting the mortgage on your next home EASY. Connect with me at (901) 482-0354 www.JOGARNER.com
OPTIONS FOR KEEPING YOUR HOME PURCHASE AFFORDABLE
Penny Pago’s Story
Penny Pago had been married to her career. For the first ten years out of college she was at work early and did not get home until late. Her apartment was like a crash pad and she liked not having the responsibilities of keeping up a house. She earned a good income and invested the money left over into retirement funds and other investments.
But Penny had been watching the housing market and watching her friends who owned homes get wealthier year after year. Yes, they had to spend a little more time and money maintaining their homes, but the fixed rate 30-year loan kept their house payments low and steady. The values on their homes was adding tens of thousands of dollars to their net worth yearly.
Penny decided she wanted to buy a home too. Penny called me to see if she could get a mortgage preapproval letter. She told me the house had a beautiful stone exterior and brought back wonderful memories from her childhood. She wanted this house.
She was a first-time homebuyer but her income exceeded to the low-to-moderate 80% of the area median income, so she did not qualify for many of the local down payment assistance programs. The seller on the home she liked already had a couple of other home purchase offers. She could not make an offer and ask the seller to pay her closing costs because the seller would probably take a different offer. She would have to sell some of her investments to get the down payment and closing costs covered. Or would she?
Penny was income was indeed too high for most of the down payment assistance program, but the stone covered home she wanted was located in a designated zip code listed by the City of Memphis Down Payment Assistance Program as being in an special geographic zone.
We got Penny approved on an FHA first mortgage and submitted her loan file to the City of Memphis Down Payment Assistance program under the Homebuyer Incentive Citizen’s Program. This program would allow household income over 80% to 200% and it allowed these higher-income earners to use the City of Memphis Down Payment Assistance Program if they bought a home in the Designated Zip Code Areas to get 10% of the price or up to $25,000 in assistance. Penny had to invest 1% of the sales price
2-1 Buydown
You pay your mortgage based on a rate in the 5’s the first year
You pay your mortgage based on a rate in the 6’s the second year
You pay your mortgage based on a rate in the 7’s thereafter.
If mortgage rates move lower after the next couple of years, you can refinance and enjoy a lower rate and payment.
Step Up Homes
What do YOU want to accomplish with YOUR mortgage?
I can make the home purchase or refinance loan easy for you.
It is EASY to get started. Just call or text me at 901 482-0354
Email me at Jo@JoGarner.com
Or connect at www.JoGarner.com
4th segment following 9:45 am break about 9:48 to 9:56:51 am CT
4TH SEGMENT 8 MIN 51 MIN
REAL ESTATE TIP OF THE WEEK
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Santa Claus and Chuck Bohannan’s 2nd tip (about 1 minute) Come see Santa Chuck at the Enchanted Forest at the Pink Palace Science Museum. Proceeds from Photos with Santa go to the Lebonheur Children’s Hospital
Pat Goldstein’s real estate tip Don’t wait to buy real estate. Buy real estate and wait. Pat shares a story about one of her clients who 2 to 3 years ago found a house they really liked. They wanted to move out of the small apartment where they lived to own their own home. But, they decided to wait for home prices to go down and rates to go down. Today the same house they wanted is now valued at almost double the price where it was when this couple had a chance to buy. This couple lost tens of thousands of dollars. They still live in the cramped apartment.
Jo Garner’s mortgage tip: rates down for the last few weeks translates into 125/month lower payment on $400K loan. Also FHA allowing down payment assistance programs to utilize the 2/1 buydown for buyers
Connect with me at (901) 482-0354 Jo@JoGarner.com www.JoGarner.com
ANNOUNCEMENTS FROM SPONSORS:
Talk Shoppe offers free networking & education to anyone interested in real estate or in business or in health and wellness. Talk Shoppe meets every Wednesday 9A-10A CT at Concorde Career College 5100 Poplar the 1st floor in the Memphis Clark Tower and also on zoom. Go to www.TalkShoppe.com and click the Events tab for the link to get into the event online. This Wednesday December 6, 2023 Yolanda Crump “TaxTips for Entrepreneurs, Including Rights and Responsibilities”
Yolanda Crump, Yolanda@yjcrumptaxfirm.com, 901-834-6868
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Thank you to Peggy Lau of Club Seacret. When traveling is on your bucket list, Peggy can help you make wonderful memories with people you love. Contact Peggy Lau of Club Seacret for lotions and potions and beaches and oceans. 901 289-0747
Thank you to Suzan David of WebandStoryMedic.com for sponsoring Talk Shoppe’s free networking and education to our business community. For your new website design using story to build your brand, contact Suzan David at www.webandstorymedic.com
Take up Jack’s Challenge: Jack Redden who passed away in 2012 was a retired mental health counselor. He spent his time attending networking groups like Talk Shoppe. When someone was going through a hard time, Jack would invite them to coffee to listen and be a friend. Every holiday season, Jack Redden would issue this challenge to us at Talk Shoppe. Now I give YOU this challenge: Who do you know in your circle who will be alone this Christmas? Who do you know who may be experiencing a tough time? Invite them to coffee and be the friend they need. You may never know this side of heaven the positive impact you will make.
Subscribe to get weekly Real Estate Mortgage Shoppe podcasts with show notes at www.JoGarner.com
5. Real Estate Mortgage Shoppe reminds you to MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
LEGAL STUFF: SPECIAL NOTE: REAL ESTATE MORTGAGE SHOPPE RECOMMENDS THAT YOU CONSULT WITH A FINANCIAL, LEGAL OR OTHER CERTIFIED, LICENSED PROFESSIONAL BEFORE ACTING OR INVESTING ON ANYTHING YOU HEAR OR SEE FROM THE CONTENT ON THIS SHOW OR BLOG POSTS. THE INFORMATION WE SHARE ON REAL ESTATE MORTGAGE SHOPPE IS GENERAL IN NATURE MEANT FOR GENERAL EDUCATIONAL PURPOSES ONLY AND NOT AN OFFER TO LEND.. ALL EXAMPLES GIVEN FOR ILLUSTRATION PURPOSES ON REAL ESTATE MORTGAGE SHOPPE AND ARE BASED ON TRUE STORIES BUT WE USE FICTIONAL CHARACTERS AND DO NOT DIRECTLY REFLECT REAL PEOPLE OR EXACT DETAILS IN ANY OF THE SITUATIONS.
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QUOTE CORNER: At the end of the day, let there be no excuses, no explanations, no regrets. Dr Steve Maraboli
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Seize the Day. Make your life extraordinary –Robin Williams
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REJOINDERS:
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Mark McLaurine, Refrigeration Unlimited (HVAC repair/replace) 901 216-7782
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Reverend Jo Rook Hudgins, Director of Healing and Wellness Ministry at Church of the Harvest Olive Branch, MS Jo@JoRook.com
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Genell Holloway of Eagle Hollow Enterprises (health and medicare benefits) 901 270-1127
Transitional Music: “Jump” by Van Halen, “To-Morrow” by The Muppets; “Live Like You Were Dying” by Tim McGraw; “Taking Care of Business” by Bachman Turner Overdrive for the Talk Shoppe Business Tip For Real Estate Pros
PICK UP YOUR COPY OF “CHOOSING THE BEST MORTGAGE-THE QUICKEST WAY TO THE LIFE YOU WANT” by: JO GARNER
An essential guide for real estate professionals and their customers.
Now on Amazon and Barnes and Noble
ABOUT PAT GOLDSTEIN, REALTOR CRYE-LEIKE, INC (901) 606-2000
2006 MAAR Realtor Associate of the Year 2005 MAAR Presidential Award Recipient TAR Leadership Graduate Member National Association of Realtors
Life Member of the Multi-Million Dollar Club. Toastmasters Division Governor CBS (Certified Builder Specialist)
CRA (Certified Relocation Associate)
CRS (Certified Residential Specialist)
GREEN (Green Agent)
GRI (Graduate, Realtors Institute)
MMDC (Crye-Leike Multi-Million Dollar Club)
SRES (Seniors Real Estate Specialist)
SRS (Seller Representative Specialist)
Vice-President (Circle of Excellence)
ABOUT JO GARNER-MORTGAGE LOAN OFFICER:
“Whatever YOUR personal priorities are, my job is to help you get the mortgage terms that will give you bragging rights when you talk about it and help you score on hitting your goals .”
As a mortgage loan officer, my job is to help you get to the benefits you want from your financing terms. What is most important to you? I can help you find the financing terms that will help you get to what you want. What is your comfort level on a house payment? How much are you comfortable paying down,? What type of financing do you need to get the house you want to buy or refinance?
Different clients have different priorities in life—some are buying their first home with very little down payment funds. Some are recovering from medical challenges, divorces or preparing to send children to college and some are embarking on a long term goal of buying properties to build rental income.”
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 25 years. She grew up in West Tennessee and got her start in real estate 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.com Jo Garner also host the radio show Real Estate Mortgage Shoppe airing on News Radio AM 600 WREC and iHeart Radio with podcasts and show notes published on www.JoGarner.com Pick up Jo Garner’s book on Amazon or Barnes and Noble “Choosing the Best Mortgage, The Quickest Way to the Life You Want”