On this Valentine’s Day weekend, our topic is ways you can find the home you love and really fast. I will be sharing with you some ways you can Get-It-Right-The-First-Time when it comes to finding the perfect fit on your home loan financing.
What do YOU want to accomplish with YOUR mortgage? Let’s talk! The best number to reach me is (901) 482-0354. Subscribe to receive Real Estate Mortgage Shoppe podcasts with show notes weekly in your inbox. www.JoGarner.com
To Your Success,
Jo Garner, Mortgage Loan Officer NMLS #757308
_____________________________________________________________________
WELCOME TO REAL ESTATE MORTGAGE SHOPPE!
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 Officer. You can connect with me at www.JoGarner.com. Our general topic is FINDING THE HOME YOU LOVE WITH PERFECT FINANCING THAT FITS. Subscribe to get our weekly blogposts with podcasts at www.JoGarner.com. How did YOU find the home YOU love? Call us while we are live today. We want to hear YOUR story. The studio number is (901) 535-9732. Today is February 16th, 2019.
On this Valentine’s Day weekend, our topic is ways you can find the home you love and really fast. I will be sharing with you some ways you can Get-It-Right-The-First-Time when it comes to finding the perfect fit on your home loan financing.
INTRODUCING PAT GOLDSTEIN, REALTOR WITH CRYE-LEIKE REALTORS
Sitting in the co-host chair today, we have the Gold Standard in real estate with many awards and real estate designations out beside her name. Pat Goldstein, realtor with Crye-Leike Realtors in West Tennessee and North Mississippi. Pat has a track record for being able to find a needle in a hay stack when it comes to you finding the home you love and being able to find it very fast. Pat Goldstein, take a minute or so to introduce yourself and tell us what you do for your clients. (Pat introduces herself and talks about what she does for her clients. )
MAKING YOUR HOME SWEET HOME ONE DAY AT A TIME-LINDA’S STORY
(Jo) Someone ask me one time, “I bet you know a lot about the mortgage business.” I replied, “I have been a mortgage loan officer for over 25 years and I learn something new every day.” What I should have told him is that so much of what I learn in the mortgage business every day is what I learn from my mortgage customers.
At some time in your life you may have been in a situation that you could describe as “having champagne taste on a beer budget. I know I have been there myself. Here is a quick story of one of my very clever mortgage clients from a while back who knew what she where she wanted to live and what she wanted her house look like inside and out. She used her ingenuity to figure out how to buy house they she could afford on her budget and eventually upgrade and improve the house she bought eventually be the castle she had envisioned her heart.
Linda Layton (not her real name) reached out to me via email. She was a first-time homebuyer with big dreams but with a limited amount she could pay for a house note.
Kudos! to Linda for taking a full inventory of what income she had coming in each month and how much of her hard-earned money marched out each month to pay her bills. She knew her own comfort level on what she could pay down and how much she could comfortably pay per month. She told me no more than $1,200 per month and no more than $5,000 down.
Linda also knew all the things she wanted for her home. She knew the general area where she wanted to live and all the built in gadgets, bonus room-over-the-garage workshop and more that she needed for this home to be called truly her home. .
But…the home she wanted would tie her down with a monthly payment of $1,500 per month ($300 per month over her maximum comfort level.) The down payment plus some other costs would strap her with $7,000 to $10,000 depending on how much the seller would be able to help with her costs. She would be dipping into her emergency fund to pay out almost double the amount she was comfortable paying.
Linda’s voice wavered a bit, the enthusiasm dying off to resigned sigh, like someone giving up after almost winning a race. She really wanted her own home and she wanted it to be all that she dreamed. She and I talked a little more.
I shared my personal story of learning from my mortgage clients over the years how to buy a home that needed some upgrades and clean up. My first home needed a LOT of things. But I started right away gradually adding things to my first house, like replacing an old sliding door with beautiful French doors, and building the pantry I wanted in the empty corner of the kitchen. Over the years living in my first home I scrapped the linoleum and added ceramic tile to the kitchen and bathrooms. Then added amenities to the front garden area, the garage and more.
I confessed to my client Linda Layton that it was fun each time I was able to do that extra improvement. It was really a celebration when, one day, I sold the house and made a nice profit so that I could continue leveraging up on the quality of my personal home which feels like my castle.
Linda was hanging up to call her realtor. Our conversation had already sparked some of her own ideas on how she could buy a lower priced home in the area she wanted to live and gradually finish out the bonus room upstairs to make into her dream work shop. She was off to find the home she would love.
Pat Goldstein, I know when we come back from break you will be sharing some stories of people who figured out the secret on how to find the home they loved and find it fast.
Take a minute or two to give us your best tip for home buyers and your best tip for someone selling their home. (Pat has about one minute and a half before going to break to share her best tips for people buying homes and people needing to sell their home.
You’re on Real Estate Mortgage Shoppe. I’m Jo Garner, your host, Mortgage Loan Officer MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, LET’S DO IT TODAY. Connect with me at www.JoGarner.com. Email me at Jo@JoGarner.com (901) 482-0354. When we come back Pat Goldstein of Crye-Leike Realtors will be sharing some ways for you to find the home you love fast.
LOOK BACK MEMPHIS TRIVIA CONTEST
2nd segment after 9:15 break: Our Look Back Memphis Trivia Contest is brought to you by notable Memphis historian, Jimmy Ogle. Jimmy Ogle offers free historic walking tours downtown in the spring and fall. For information about Jimmy Ogle, go to www.JimmyOgle.com . The Look Back Memphis Trivia Contest is sponsored by John and Jennifer Lawhon of Lawhon Landscape (901) 754-7474 the Lawhon’s can help you plan your landscaping if you have a BIG, BIG project or a smaller project . The Lawhons are giving away a $25 gift card to the first person with the correct trivia answer. If you know the answer to our trivia question, call us at 901 535 WREC 901 535-9732.
Dinstuhl’s Candies
Question: I have been making Memphis “sweet” for over 100 years. Who am I?
Hint: I opened my doors in Downtown Memphis in 1902.
Hint: I am in my fifth generation of a family making us all sweeter.
Hint: I have supplied Elvis, Super Bowl XL, the Kentucky Derby, Breeder’s Cup & the NBA Finals.
Final Hint: I was voted to have the “Best Fudge in America” in 2014 by PEOPLE magazine.
Answer: Dinstuhl’s Candies. The Dinstuhl Family has been making quality candies in Memphis for five generations beginning with Charles Martin Dinstuhl, Sr. in 1902. In the early 1920s, Charles Dinstuhl, Jr. joined his father, and signature recipes have been passed from generation to generation. One of the signature recipes which have been passed from generation to generation is the famous Chocolate Pecan Fudge. Edward Eugene Dinstuhl then joined in WW2 to help continue the business. Several years later, Gene received personal instruction from two prominent New York Candy Makers and added Cashew Crunch and Chocolate Covered Strawberries.
Dinstuhl’s has moved from its meager 400 sf shop in Downtown to the existing 11,000 sf candy kitchen on Pleasant View, and has been able to meet the increased demand for their candies while still maintaining the traditional high quality. In the 1970s, Gary Dinstuhl became a fourth generation perfecting the candy making. In 2003, the Moss family of Memphis bought the historic company to insure that quality and traditions will be enjoyed for many years to come. Today Rebecca Dinstuhl is at the helm focusing quality control and marketing with Andrew Dinstuhl in the kitchen creating delicious recipes, and Marissa Moss managing Operations. Dinstuhls commitment to quality is further demonstrated in the kosher certification by the Vaad Hakehilloth of Memphis.
Dinstuhl’s prides itself in using fresh ingredients such as butter, cream, brown sugar and rich chocolate. Each unique formula is blended in small batches by hand just as it was in 1902. Three retail outlets are located at Laurelwood (436 Grove Park), Germantown (7730 Poplar) and Pleasant View (5280 Pleasant View Road). Contact 800-355-0358 and dinstuhls@dinstuhls.com. www.dinstuhls.com.
Jimmy Ogle gives free outdoor walking tours on the sidewalks and parks in Downtown Memphis during the year, with the next being The Judge D’Army Bailey Courthouse Tour at 12:00 noon on Thursday, February 15 (meet at the steps at the Southwest Corner, Second & Adams). Go to jimmyogle.com for more information.
_____________________________________________________________________
TOPICS COVERED BY PAT GOLDSTEIN, REALTOR IN CRYE-LEIKE REALTORS
1. What are some of the most popular reasons for loving your home?
2. What are some successful tactics you have seen work for your buyers when there are multiple competitors making offers on the house your buyer wants?
3. What are some tips you have for finding the right home fast?
4. What tips do you have for sellers needing to sell their current home in order to find their next home?
5. What are some examples you can share of when a buyer purchases a house in an affordable price range but still needing upgrades and additional amenities to meet all of the buyer’s wants and needs?
_____________________________________________________________________
TOPICS COVERED BY JO GARNER, MORTGAGE LOAN OFFICER
1. How do I know what financing truly FITS me?
A. Determine your true income vs what your true debts and obligations are costing you.
Get your last 3 to 6 months bank statements in front of you (your paper statements or your online account information)
Get your last 3 to 6 months credit card statements in front of you.
Set a timer for an hour or more and commit to FOCUS
Now, start counting up what you actually get for income going into your asset accounts and what you actually spend on bills and other stuff you may or may not need.
What bills come due only once or twice a year? (Car tags, club memberships, car insurance etc)
What can you do without? Cut it out of your spending plan.
After writing out your true income and your true expenditures, what is the maximum house payment that is comfortable for you?
What is the maximum down payment that is comfortable for you?
Let your lender know your maximum comfort level on the monthly payment and the down payment. The current mortgage software programs many times prequalify you up to 45% or even 55% debt-to-income ratio. But who wants that much debt??
Let me introduce you to Linda Layton-
Linda Layton (not her real name) reached out to me via email. She was a first-time homebuyer with big dreams but with a limited amount she could pay for a house note.
Kudos! to Linda for taking a full inventory of what income she had coming in each month and how much of her hard-earned money marched out each month to pay her bills. She knew her own comfort level on what she could pay down and how much she could comfortably pay per month. She told me no more than $1,200 per month and no more than $5,000 down.
Linda also knew all the things she wanted for her home. She knew the general area where she wanted to live and all the built in gadgets, bonus room-over-the-garage workshop and sitting areas with a view she had to have in the place she would call home.
But…the home she wanted would tie her down with a monthly payment of $1,500 per month ($300 per month over her maximum comfort level.) The down payment plus some other costs would strap her with $7,000 to $10,000 depending on how much the seller would be able to help with her costs. She would be dipping into her emergency fund to pay out almost double the amount she was comfortable paying.
Linda’s voice wavered a bit, the enthusiasm dying off to resigned sigh, like someone giving up after almost winning a race. She really wanted her own home and she wanted it to be all that she dreamed. She and I talked a little more.
I shared my personal story of learning from my mortgage clients over the years how to buy a home that needed some upgrades and clean up. My first home needed a LOT of things. But I started right away gradually adding things to my first house, like replacing an old sliding door with beautiful French doors, and building the pantry I wanted in the empty corner of the kitchen. Over the years living in my first home I scrapped the linoleum and added ceramic tile to the kitchen and bathrooms. Then added amenities to the front garden area, the garage and more.
I confessed to my client Linda Layton that it was fun each time I was able to do that extra improvement. It was really a celebration when, one day, I sold the house and made a nice profit so that I could continue leveraging up on the quality of my personal home which feels like my castle.
Linda was hanging up to call her realtor. Our conversation had already sparked some of her own ideas on how she could buy a lower priced home in the area she wanted to live and gradually finish out the bonus room upstairs to make into her dream work shop. She was off to find the home she would love.
B. Common recommendations on income and debt ratios.
Many of the financial authors suggest keeping the total monthly house note (principal, interest, taxes and insurance, mortgage insurance, association fees, if any) under 25% to 28% of gross monthly income. Some of these gurus recommend keeping your total monthly obligations including your house note under 38% to 41% of your gross income.
Common recommendations on total debt ratio (includes the total new house note (including principal, interest, taxes and insurance, private mortgage insurance, association fees, if any) plus any other debts per month divided into your gross income.
Example:
Gross income: $7,000/month
New house note- $1,400 (principal, interest, taxes and insurance, with some mortgage insurance) + $25 per month for neighborhood association fee if applicable.
Car loan $400/month
Minimum payment on the credit card account =$50/month approximately
Total House note + association fee= $1,425/$7,000=20% Housing ratio
Total debt = $1,875/month / Total income $7,000= 27% total income-to-debt ratio
2. How do you know what loan fits a certain person?
THE GET-IT-RIGHT-THE-FIRST-TIME-MORTGAGE-CHECKLIST
BY: Jo Garner, Mortgage Loan Officer NMLS# 757308
(901) 482-0354 Secure online loan application https://jogarner.evolve.mortgage
1. What is the maximum house payment I can afford right now?
A. Several financial gurus say that your total house note including principal and interest, taxes, homeowners insurance, and/or mortgage insurance and homeowners association fees needs to be between 25% and 30% of your gross income. Your total income-to-debt ratios, including the new house payment and payments on other debt does not need to exceed 38% to 45% of your gross income.
B. Mortgage underwriting software can sometimes approve you income-to-debt ratios of 45% or upwards to 55% of your gross income. Stay within your PERSONAL comfort level though, regardless of what the mortgage software tells you.
C. Consider where you plan to be in the next year, the next five years, and the next ten years.
• Are you planning to retire? What will your income be when you retire? Will you still be living where you are living now?
• Are you planning to get married? Do you plan on expanding your family? Do you plan on taking an aging family member into your home? How much do you estimate your living expenses go up? Will your income likely increase too? How much?
• Are you just getting started in your career? Is it likely your income will go up? Will you need to relocate? How long is it likely you will keep the house? What would it cost to rent versus buy a home like the one you want?
• Do you own a house with a lot of equity that you plan on selling within a year of buying the new house? Do you plan to make a very large prepayment to principal once you sell your old home?
-Try doing a bridge loan so you can enjoy the benefits of a much lower payment on your new home without having to sell your old home right away
– If you decide to close on your new home first and then, later sell your old home, here is an example of how that can work for you.
Edward and Elisa Eldridge had both lost their former spouses to cancer several years ago. Edward had lived alone in the same home for over twenty years. Elisa had continued to live alone in her home for over ten years. Both Edward and Elisa thought that finding love again would be a one-in-a-million chance.
When I came in contact with Edward and Elisa, they shared their serendipitous story of how they met and fell in love. They got married and wanted to start a new life in a new home. But they did not want to have to sell their individual homes before moving into their new home. Elisa said, “It’s like getting the cart before the horse. Once I sell my house and Edward sells his, we want to use our profits to pay 50% as a down payment on our new house, just so we can enjoy a very low house note. But where do we get the money to make pay that much down on the new home if we haven’t sold our old houses yet?”
There are a number of ways Edward and Elisa could get the funds to pay down on the house. One way is to talk with a lender about getting an equity line of credit secured on their current homes. Since there was more than $100,000 equity in Edward’s old house and over $100,000 equity in Elisa’s too, that would give them the $200,000 they wanted to pay down on the new house. One day, when they were ready to sell their other homes, they could pay off the mortgages and credit lines on their current homes.
A second way for the Eldridge’s to get funds to pay the big amount down on the new house they wanted to pay would be to only pay a small amount down on the new home and pay the much higher payment for a while on the higher loan amount until they could get their other two houses sold. At that point, they said they wanted to pay the new mortgage down.
Since Mr. and Ms. Eldridge were paying well over 50% of the unpaid balance on their new mortgage as a prepayment to lower the loan balance, they could refinance for a lower payment or shorter term once they had made the huge prepayment. Instead of have to make the large payment on the large unpaid balance, they could enjoy a much lower payment on a much lower unpaid balance.
In some cases, if you are making a lump sum prepayment over 20% of the unpaid principal mortgage balance, you can ask the lender to give you a “recast” instead of “refinance.” Lenders have the option to say yes or no to this request. The recasting of your payment to a lower amount would make it as if you never borrowed the larger loan amount. After you make the large lump sum prepayment to lower your mortgage principal balance, a recast reamortizes the payment as if you never had the larger loa
Do you plan on starting your own business or acquiring income-producing real estate? This might require you to keep your mortgage payment low so that you can afford to finance other investments.
2. What is the maximum down payment that is comfortable for you?
Several financial gurus say that if you enjoy a stable, salaried job, you probably need about 3 months of living expenses in an emergency fund. But, if you are self-employed or get a 100% commission income, you probably need about 1 full year of living expenses in an emergency fund
3. What kind of property are you purchasing?
A. If the property is a fixer-upper with lots of needed repairs, you may want to consider a Renovation and Repair loan so you can finance some of the repairs.
B. Is the property you are purchasing going to be your primary residence, a second home or a rental property?
C. Is the property you are financing a condominium or a manufactured home?
D. Is the property located in a place where special financing is available?
4. What special mortgage programs are available to you specifically?
A. Are you a military veteran? Are you eligible for the Veteran Administration 100% VA home loan?
B. Are you a first-time homebuyer, not having your name on title to real estate within the last 36 months? There may be down payment assistance programs available to you, even if you are not a first-time homebuyer.
5. What methods can we use to develop more than one exit strategy?
A. Is the property in an area that is going up in value? If you really needed to sell the home one day, you could probably do it profitably if the value is stable or headed upward.
B. Is the property in an area that is a strong rental market? In a pinch, you could possibly rent the house and get a nice income from the home.
C. Is the mortgage you have an assumable loan? If mortgage rates go up, one day someone may be willing to pay you good money to have the opportunity to quality to assume your low interest rate mortgage when they buy your home.
What do YOU want to accomplish with YOUR mortgage?
_____________________________________________________________________
REAL ESTATE TIP OF THE WEEK
(Pat Goldstein shares a real estate related money-saving or time-saving tip):
_____________________________________________________________________
ANNOUNCEMENTS:
Talk Shoppe offers free networking & education to anyone interested in real estate or in business. Talk Shoppe meets every Wednesday 9A-10A CT at Pinot’s Palette 8225 Dexter Rd Cordova, TN. This Wednesday February 20th, 2019 Talk Shoppe presents: “How To Improve Your Credit For A Better Life and A Better Loan!” Jo Garner, that’s me. I will be sharing with you some of my observations from the mortgage desk on some things you can do to make positive differences when it comes time to borrow money.
Talk Shoppe events are free thanks to advertisers like Gina Davis www.findvendorbooths.com Contact Gina Davis on how to market your business at trade shows and other vendor booth venues.
Thank you to Nita Black of www.901elearn.com for making free education and networking available to our business community. Nita can show you how to monetize your online presence using learning modules. Go to www.901elearn.com
2. Hope you enjoyed your Valentine’s Day this week and your President’s day Monday
4. Subscribe at www.JoGarner.com and you can get our weekly blog posts with podcasts conveniently in your inbox.
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.
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. ALL EXAMPLES GIVEN FOR ILLUSTRATION PURPOSES ON REAL ESTATE MORTGAGE SHOPPE USE FICTIONAL CHARACTERS AND DO NOT REFLECT REAL PEOPLE OR ACTUAL DETAILS IN ANY OF THE SITUATIONS.
_____________________________________________________________________
QUOTE CORNER:
For Valentine’s Day Weekend from HeyMissAwesome: “One day your prince will come. Mine just took a wrong turn, got lost and is too stubborn to ask for directions.”
_____________________________________________________________________
REJOINDERS:
1. Mary Lou Nowak Mid-South Home Helpers (901) 414-9696 for non-medical help in the home for your elderly or handicapped loved ones www.homehelpershomecare.com
2. Clint Cooper, Memphis, TN www.redeemersgroup.com
3. Bernice L. Ross, Austin Texas author and real estate syndicated columnist with Inman Real Estate Radio.
Transitional Music: Phillips Phillips “Home “
“Home” by Dolly Parton; “Our House” by Madness; “Memphis” for Look Back Memphis Trivia Contest
_____________________________________________________________________
ABOUT PAT GOLDSTEIN
Realtor with Crye-Leike Realtors in Memphis, TN. Licensed in Tennessee and Mississippi. (901) 606-2000 30 years full time Realtor Memphis Area Association of Realtors 2006 Realtor Associate of the Year and a veteran member of the TN Association of Realtors Residential Forms Committee.
_____________________________________________________________________
ABOUT JO GARNER-MORTGAGE LOAN OFFICER:
WHAT DO YOU WANT TO ACCOMPLISH WITH YOUR MORTGAGE?
www.JoGarner.com (901) 482 0354 jo@jogarner.com twitter @jogarner NMLS# 757308
“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 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 20 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 She was also the editor of Power Shoppe, a free weekly e-zine designed for real estate professionals and others indirectly connected to the real estate industry and currently publishes on her blog www.JoGarner.com.