In this episode are strategies under the new lending guidelines to give you some bragging rights on financing to purchase a home or refinance one. We will be taking a look at what has lenders are doing to make financing a condominium easier and more. Tom King will be sharing some of the recent changes in the appraisal requirements and giving you some ideas on how to work best with your appraiser.
Welcome to Real Estate Mortgage Shoppe where we offer solutions to your real estate and financing scenarios. Subscribe at www.JoGarner.com so we can stay connected and keep you informed on the latest changes and opportunities.
To Your Success,
Jo Garner, Mortgage Loan Officer (901) 482-0354 jo@192.232.195.219
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Good morning, Memphis! Welcome to our 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. Today we are asking YOU, “how have you been able to take advantage of the current lending regulations and rules regarding appraisals on buying or refinancing your home?” Our general topic is: GETTING APPROVED FOR A MORTGAGE- A NEW WAY & A NEW DAY. If you have a question or comment and you’re on Twitter, make them to #JoGarner or call me directly off the show at (901) 482-0354. You can call us while we are live at (901) 535-9732 or outside the Memphis area (800) 474-9732 Today is January 14th, 2017.
Today we will cover some strategies under the new lending guidelines to give you some bragging rights on financing to purchase a home or refinance one. We will be taking a look at what has lenders are doing to make financing a condominium easier and more. Tom King will be sharing some of the recent changes in the appraisal requirements and giving you some ideas on how to work best with your appraiser.
Tom King, expert appraiser of Bill King Company, back in the studio. He is all studied up the newest appraisal regulations and what he sees in our local West Tennessee real estate market. Tom has been appraising houses for over 40 years and knows more than a thing or two. Tell our new listeners a little about yourself and what you do, Tom.
<Tom introduces himself and talks a little about what he does and the types of appraisals he performs. >
(Jo) If you been at your career for many years like you have, Tom, you can remember who made money when new regulations or a new market trend began and how they positioned themselves to do it. A lot of our listeners have played football or some other sport—or like me enjoy watching others play. It is quite exhilarating when, in the crucial last seconds of the game, your team executes a new play —or an old one they dust off and surprise everyone by scoring to win the game. If you take a moment, you can probably think of a play like that.
<Tom comments on examples of awesome plays like in the Clemson/Alabama game and a recent Grizzlies basketball game>
Sometimes I think of the mortgage business or buying real estate like a game where you have to watch what the other players or doing and the conditions on a field. I want to win. I want my mortgage clients to win too!
The conditions on the mortgage field is that we have seen mortgage rates rise following the election, but they are still low enough for home buyers to have bragging rights on their terms and for real estate investors to make a nice profit on their rental properties. Conventional 30 year fixed rates are hanging around 4.125% to 4.25% and the 15 year fixed rates are in the low to mid 3’s.
Whether we see inflation or not this year, you can set yourself up to win whether the market is up or down. Our Federal Reserve chairman says she believes we could see inflation in 2017 and she is prepared to raise the Fed rate multiple times if necessary. So what if inflation starts to kick in? If the value of your real estate property goes up and rents go up with it, you will have built equity in your home while you sleep and you can raise the rents more often. It’s called giving yourself a raise. Having a low fixed rate mortgage and not a variable rate helps though if rates start moving up. Any new changes in our economic environment, whether we see inflation or not, may give you a reason to execute a new game play or dust off an old forgotten one to really score on your real estate investment.
<Tom comments>
People have to live somewhere. Even in a depressed real estate market, if you bought the house right with a fixed mortgage rate you can afford, you will probably come out better than some other investments.
Real estate has been proven to provide you with a good hedge against inflation. You can put down a small down payment and get a low mortgage rate fixed for 30 years! No other country in the world offers this wealth building strategy. Some of the government loan programs like FHA, the Veteran Administration mortgage and the 100% Rural Housing program, not only offer you a chance to put down a small amount down to nothing down, but they offer a low 15 to 30 year fixed interest rate that can be ASSUMED by someone willing to pay you a nice chunk of change for your equity in exchange for the right to qualify with your mortgage servicer to take over making your payments at your low interest rate. But they must be qualified by your mortgage company to be able to assume your loan though. So what if rates decide to ratchet back up again? You have this built-in Assumption Strategy to execute and make a profit even if rates do go back up. What a winning play, depending on whichever way the market moves!
<Tom comments>
(Jo) Tom, there are plenty of opportunities in this mortgage lending environment for homeowners who want to convert their variable rate equity lines or other adjustable rate programs over to the low fixed rate programs. We are seeing real estate investors pull cash out of some of their properties to use to leverage into buying additional properties to give them even more LET’s talk! You can connect with me at www.JoGarner.com , you can email me at jo@192.232.195.219 or call me personally at (901) 482-0354 but you have to talk with me PERSONALLY to work with me personally and I want to work with YOU. Or call us while we are live in the studio today January 14th, 2017 at <(901) 535-9732 or outside the Memphis area (800) 474-9732.>
(Jo) Tom, what’s new and changing when it comes to appraisals and how do home buyers and sellers position themselves for the best results? <Tom launches topic>
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[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.] Garner # 97 01/07/17
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Trivia Question:
I was re-named after a century, and re-named again. Who am I?
Hint:
I was built in 1907 as a residence.
Hint:
In 1923, I became the “home” of a social and philanthropic organization.
Hint:
I withstood a century of “progress” and destruction to my neighborhood.
Final Hint:
I am now the newest dining experience in Memphis!
Answer:
Izakaya or Nineteenth Century Club. Once facing demolition, the former Nineteenth Century Club mansion has returned with a new purpose. Built in 1907 by lumberman Roland Darnell, it was one of many fine mansions that lined this street. Now it is the only one. After 85 years of being owned by the Nineteenth Century Club (since 1926), it fell into danger of demolition. Memphis Heritage and some concerned citizens intervened in his demolition, and persuaded the new owners, Shon and Dana Lin, to save and re-purpose the fine home. That they did to the tune of $3.7 million, and Izakaya, a French-Japanese Restaurant was the first new restaurant to open in Memphis in 2017, opening on New Year’s Day.
The menus are extensive. There’s a sushi bar, where the Chilean sea bass actually comes from Chile, salmon from New Zealand and tor tuna is flown in from Japan. The restaurant will open for lunch and dinner daily, 11am to 10pm, and as late as 3am on Friday and Saturday, with live music. At night the menus will expand for the main dining room, at the sushi bar and in the lounge, which occupies the second floor of the house. The elaborately carved woodwork throughout the building was painstakingly refurbished and restored, and the first two floors seat more than people. It is wonderful to see Midtown Memphis save one of its original homes for enjoyment in the 21st Century.
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Jimmy Ogle gives free outdoor walking tours on the sidewalks and parks in Downtown Memphis during the Winter and Spring of each year, with the next being the Judge D’Army Bailey County Courthouse Tour (indoors): one Thursday each month at 12:00 noon – the next being Thursday, January 19 . Go to jimmyogle.com for more information.
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QUESTIONS ANSWERED BY TOM KING:
- What are some recent changes on appraisal guidelines that you have seen for the FHA government program?
- What are some guidelines changes that homeowners need to know about before getting an appraisal?
- Talk about the firewall between mortgage companies and the appraisal companies.
- What type of comparable sales in the neighborhood do you use and which ones do you NOT use when calculating the value on someone’s home?
- What type repairs or upgrades should a homeowner consider doing to their home to realize the best return on the money they invest in their home?
- What simple things can homeowners do to prepare for their home appraisal? Do they need to make up the bed and wash the dishes?
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QUESTIONS ANSWERED BY JO GARNER:
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What are some of the newest loan program changes that are making it easier for home buyers?
- The low-downpayment government FHA mortgage program just announced that they are lowering their monthly mortgage insurance for premium effective for loan closings on or after January 27th, 2017 on some of their products. Some buyers who did not qualify to buy the house they wanted on the FHA program before may want to relook at their payment numbers based on this premium reduction. There are no income restrictions on the FHA program and you do not have to be first-time homebuyer to get this 3.5% down payment loan.
- The conventional Fannie Mae HomeReady loan program has made some changes to their program, making it much easier for borrowers to qualify for this 3% down payment program with much lower mortgage insurance premiums and with lower interest rates than were offered on the former Community Loan Product. There are some income restrictions on this program though. It may work perfectly for you on keeping your move-in costs low and your payments too. If it doesn’t, we can find a program that does keep your terms comfortable. Call me and we can try it on for size. You can reach me directly at (901) 482-0354 or connect with me at www.JoGarner.com Or call us while we are in the studio at (901) 535-9732.
- If you really need to buy a house with nothing down, call me and we can look at a combination of products. If you are a military veteran, you may qualify for the VA 100% loan. If you are buying in an area that isn’t the most densely populated area, we could try the 100% Rural Housing USDA loan. Or we could look at various down payment assistance programs. There are other 100% loans for doctors and other professions too.
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What changes do you see on the horizon that will affect mortgage borrowers and home buyers?
- The FHA loan program has lowered the owner-occupancy requirements for condominiums. At the moment the minimum percentage required for owner occupants and owners who use the condo as a second home, is 35% instead of 50% under the Housing Opportunity Through Modernization Act 2016. There are some stipulations that the condominium must be over 12 months old and must be in good financial shape. But there are some concerns that FHA will tighten these requirements again to reduce risks. For more information, go to : https://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/ins/sfh_ins_condominiums
Fannie Mae and Freddie Mac have increased the maximum loan amount that they will allow under their low interest rate programs from $417,000 to $424,100 for single family homes. Residential properties from 2 to 4 units has a higher conforming loan limit. This change could also open doors to financing for people today that could not finance that much earlier.
- In October 2015, there were mandatory delay periods set up in the mortgage process to give borrowers time to shop the terms and review them. These regulations are called the “Know Before You Owe” regulations. Lenders call it TRID. You can get some tips on getting your loan approved and closed in the shortest amount of time by going to this link on www.JoGarner.com link to show: http://192.232.195.219/new-trid-real-estate-and-lending-guidelines/
- There are so many little-known products that can be used alone or in combination with each other to help you get the down payment and payment amounts you want. If you are a real estate investor or just buying a primary residence or second home. Call me and let’s put together some real estate financing terms that you can brag about. MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, LET’S DO IT TODAY!
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REAL ESTATE TIP OF THE WEEK
(Tom shares tip for builders. Since appraisers cannot use comparable sales that are not listed in the Multiple Listing Service, it could really help the builder to LIST HIS PROPERTIES BEING BUILT in the Multiple Listing Service right now to get the values needed on the other properties he/she has listed in the neighborhood )
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Jo Garner, Mortgage Loan Officer offered a tip to real estate investors. Since Fannie Mae allows real estate investors to use their low interest rate 10 yr to 30 yr mortgage to buy rental properties as long as you do not own over 10 FINANCED properties. If you are married or have an investment partner, you can double your opportunities to enjoy the long term low fixed interest rates offered by Fannie Mae if you put 10 of the financed properties only in your name and an additional 10 financed properties in your partner’s name.
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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 Nova Copy 7251 Appling Farms Parkway Memphis, TN. This Wednesday January 18th, 2017 Talk Shoppe presents: “Keep Your Business and You Healthy for the New Year!” David Grigsby, Midsouth Orthopaedic Rehab 901-522-6671 DGrigsby@MidsouthOrthopaedic.com.
- Talk Shoppe events are free thanks to our supporters like Chef Eric Meyers of Eat At Erics Food Truck and Catering www.eataterics.com Connect with Eric for YOUR event! Chef Eric provides breakfast snacks and coffee at Talk Shoppe. For more about Talk Shoppe, go to www.TalkShoppe.com
- FOR THIS PODCAST OF REAL ESTATE MORTGAGE SHOPPE AND MORE, GO TO JOGARNER.COM
- Real Estate Mortgage Shoppe reminds you that MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
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QUOTE CORNER:
“Change is inevitable —except from a vending machine.”
-Robert Gallagher
“When you’re finished changing, you’re finished.”
-Benjamin Franklin
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REJOINERS:
- Pat Goldstein, Realtor with Crye-Leike, Realtors (901) 606-2000 over 30 years experience helping buyers and sellers in the Memphis and North Mississippi areas.
- Donna Bellinger, Revenue Accelerator, & Business Development Author, Speaker & Trainer. Creator of: “Revenue UP: From Sluggish to Sensational in Sales”. Chicago, Illinois www.DonnaSmithBellinger.com
- Gwen Christensen, owner of Builders Floors and Interiors, can install your flooring for less costs than the big box stores. You can get good flooring at a great price like the builders. Gwen brings her decorating talents too if you need them. (901) 382-2155 Bartlett, TN.
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Transitional Music: “A New Day Has Come” by Celine Dion; “What’s New Pussycat” by Tom Jones with breaking glass intro; Bryan Adams “It’s A Brand New Day” “Memphis” by Johnny Rivers for the Look Back Memphis Trivia Contest _______________________________________________________________________
ABOUT TOM KING
Tom is a well- respected and sought after appraiser in Memphis, Tennessee. He is a second generation appraiser with 40 years experience. He has been elected to the Memphis Area Association of Realtors Board of Directors three times.
Tom is a certified residential appraiser in Tennessee. He have appraised over 20,000 homes in his career. A graduate from the University of Tennessee with a degree in real estate, Tom is also a Certified Relocation Professional (CRP). Tom also has vast experience in dealing with the county and state boards of equalization and in valuations of property for tax appeal purposes. (901) 487-6989
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ABOUT JO GARNER-MORTGAGE LOAN OFFICER
Jo Garner, Mortgage Loan Officer
cell: (901) 482 0354
Twitter: @jogarner
Jo describes her job description: “As a mortgage loan officer, my job is to give my client the benefits they want from their financing terms– listening to my client and determine what’s of the most value to THEM– What is their comfort level on a house payment, how much are they comfortable paying down, what type of financing do they need to get the house they 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. Whatever their personal priorities are, my job is to put together a mortgage with comfortable terms that will help them achieve their goals.”
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