HOME LOANS & HOME OWNERSHIP-PLOT YOUR COURSE FOR A SUCCESSFUL VOYAGE
Welcome to Real Estate Mortgage Shoppe! If you have a question or real estate financing conundrum, tell me about it and let’s get some answers coming to you. The best way to reach me is jo@192.232.195.219 or (901) 482-0354. Jo Garner
In this show we’re going to cover:
⦁ Some questions that will help you determine a comfortable house payment and down payment for your situation.
⦁ We will give you a list of important documents to have on hand & some quick and easy ways to get them quickly.
⦁ Joe is going to cover some important advice regarding the real estate title and closing side to keep you protected from any closing issues
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Good morning, Memphis! Good morning to our friends in the 50 states near and far. You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Officer. Connect with me at www.JoGarner.com Tell me where you are and where you want to go with your home financing or home purchase. Let’s talk over your plan, work your plan. If the deal works for you today, do it today. Today our topic is HOME LOANS & HOME OWNERSHIP-PLOT YOUR COURSE FOR A SUCCESSFUL VOYAGE.
Anytime you go on a voyage of any significance, you want to know your destination, most comfortable route to take, and how much it will costs to get there and, of course, the benefits that compelled you to take the trip in the first place. You probably already have in mind your destination, whether it is much better terms on your mortgage financing or you have some idea of the type of home you want to buy. Today we’re going to 1. ask you some questions that will help you determine a comfortable house payment and down payment for your situation. 2. We will give you a list of important documents to have on hand & some quick and easy ways to get them quickly. Joining me at the helm is Joe Rojas, a very experienced real estate closing representative with his own team at Fearnley, Martin, McDonald. 3. Joe is going to cover some important advice regarding the real estate title and closing side to keep you protected from any legal turbulence.
Joe Rojas, it’s always great having you back around our coffee table at Real Estate Mortgage Shoppe, which today we have turned into quarterdeck for our nautical theme. Tell us a little bit about yourself and what your team does for your clients at Fearnley, Martin and McDonald.
(JO) Like you, Joe, I am always looking for solutions to common and uncommon rough patches and delays that can occur during the mortgage process. One thing that sets my personal team apart from many other lenders is that we actually talk with our borrowers. Once we know what you truly want to accomplish, we provide you with a list of the documents you will need for your specific type transaction. My personal team and I have methods & third parties in place to get some of your documents FOR YOU so it cuts down on the time it would take you to get them yourself—think of it like concierge service. You get our famous “Do’s and Don’t’s Document” warning you ahead-of-time of actions you Do or DO NOT want to make during the loan process to keep your voyage to your financing as smooth and quick as possible. I really want to work with you PERSONALLY. If you want to work with me, you have to call me PERSONALLY . If you are not talking with me PERSONALLY, you aren’t working with me. I WANT to work with you. If you or someone you know is about to embark on a voyage to better home financing or home ownership, call me while we are live on the air, Saturday March 19th, 2016 at (901) 535-9732 or outside the Memphis area (800) 474-9732. If you want to talk more privately, call me after this broadcast directly at (901) 482-0354 (901) 482-0354 or email me at jo@192.232.195.219 or of course connect with me at www.JoGarner.com .
(Jo) A second ago I was talking about some methods my personal mortgage team and I have put together to save our clients time and energy in getting their mortgages approved and to closing. Besides always watching for ways to smooth the way on some credit and documentation requirements, every day I watch the mortgage market, just like a ship’s captain watches the weather, the wind and the waves. If you are watching the media this week, you’re going to hear that rates are higher this week than last week., but that’s not true! Most media outlets use Freddie Mac’s weekly rate data and Freddie Mac’s report cuts off on Wednesdays and doesn’t account for the mortgage rate improvement that happens the latter part of the week. THIS Thursday and Friday, investors finally had time to gauge and react to this week’s Federal Reserve announcement. The Fed voiced uncertainty about the global and financial markets. When the Fed foresees economic challenges, either domestically or globally, rates will have difficulty moving up much, because investors tend to want to keep buying into the safety of bonds which tie into mortgage-backed securities. Yesterday the mortgage rates ended the day at around 3.625% to 3.875% no points on the 30 yr conventional loan, and the low 3’s on the 15 year fixed rate. Your government 30 year loans like FHA, VA, USDA Rural Housing usually come in even lower, depending on several factors. Jumbo loans over $417K are enjoying generally lower rates than normal. It’s some great sailing weather in the mortgage market right now. If you want to look at some loan scenarios for YOUR real estate transaction whether you are local to Memphis or in another fair city in the US, let’s make your plan, work your plan. If the deal works for you today, do it today.
Joe Rojas, several of my clients have been closing their loans through your office. What are some tips you give them when you are preparing their title work and getting them ready to close? ___________________________________________________________________
2nd segment after 9:15 break: It’s time for the Look Back Memphis Trivia Contest. The Look Back Memphis Trivia Contest is brought to you by notable Memphis historian, Jimmy Ogle. Jimmy offers free historic walking tours in downtown Memphis in the spring and fall. To find out more, ask Jimmy at www.JimmyOgle.com . Our 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 # 72 03/18/16
National Ornamental Metal Museum
Question: I am one of a kind in America, as the next closest facility like me is in Japan. Who am I?
Hint: My first buildings were built in 1885.
Hint: My first “clients” were men of the river, and not men of war!
Hint: My buildings and grounds expanded in the 1930s, and one of present buildings was moved over 100 feet!
Final Hint: I opened in 1979, and I have become the best museum of my kind in America.
Answer: National Ornamental Metal Museum is a museum for the collection, preservation, and exhibition of historical and contemporary metalwork. The museum is housed in a 1930s brick building on a bluff overlooking the Mississippi River that was formerly used as a U.S. Marine Hospital. Leased from the government by Abe Sauer of Tennessee Fabricating Company for the purpose of founding his vision, a museum devoted to the art of metal craft, it originally housed Mr. Sauer’s private collection which was later stolen. Mr.Sauer also helped found NOMMA the National Ornamental and Miscellaneous Metals Association.
The Metal Museum is the only institution in the United States devoted exclusively to the advancement of the art and craft of fine metalwork. This is achieved through exhibitions, collections, conservation, restoration and consulting services, classes, internship opportunities, artist residencies and apprenticeships, research and onsite fabrication of artwork and architectural elements. The museum has over 3000 items in its permanent collection, and also hosts travelling exhibitions. There is also a working smithy and foundry on site. In addition to displaying metalwork inside the museum they also offer hands-on classes in the museums workshops.
Every Fall, they hold a Repair Days Weekend, where volunteer metalsmiths from across the country will repair virtually any sort of metal object while the public watches. Estimates are free, actual prices for repairs are generally low as it is a popular fundraising event. All proceeds from the repair work benefit the Museum. The Metal Museum (901-774-6380, metalmuseum.org) is open Tuesday-Saturday, 10am-5pm and Sunday, 12-5pm.
Jimmy Ogle gives free outdoor walking tours on the sidewalks and parks in Downtown Memphis during the Spring and Autumn of each year, with the next tour being the Bridge Walk on the Memphis & Arkansas Bridge on at 2pm on Sunday, April 24; the Fairgrounds Walking Tour at 2pm on Sunday, March 20 (assemble at the Coliseum). The D’Army Bailey County Courthouse Tour (indoors): Third Thursday each month at 12:00 noon – the next being Thursday, April 21.
Go to jimmyogle.com for the 2016 Spring Season schedule and locations.
QUESTIONS ANSWERED BY JOE ROJAS:
1. What is the difference between lender title insurance and owner’s title insurance? Why is owner’s title insurance important?
2. How can you help a homeowner who has an unreleased paid off lien that is still showing unreleased?
3. What do you advise your married clients about spousal rights on primary residences when only one spouse is on the loan and title?
4. What constitutes good funds at closing? Why can’t your homebuyers and borrowers use cold hard cash to close their real estate transactions?
6. What are general tips you give to clients refinancing loans and getting loans to purchase homes?
QUESTIONS ANSWERED BY JO GARNER:
⦁ What are some ways you help your mortgage clients determine what their comfort levels are for monthly mortgage payments and down payments?
⦁ People tend to turn up their nose when I mention budget, but it doesn’t have to be that hard. Call me off the air, email me or come by and see me and I can show you a really cool way to determine what you really make and how you are really spending it. These automated underwriting software systems can sometimes approve borrowers up to 45% or with compensating factors, even 65% on the income-to-debt scale. But if you can keep the monthly note on your primary residence with taxes and insurance and any mortgage insurance included under 28% of your gross income, you will enjoy paying your house note more each month than having a house note so high, you feel handcuffed to the door knob with way to do anything EXCEPT pay the house note. If you keep your total debt UNDER 40%–or even in the 35% range, (your total debt would include your new house payment, minimum required payments on credit cards, car loans, personal loans, payroll deducted loans, even child support,)you are going to be more comfortable paying the note.
⦁ On rental property, knowing how much to pay for the house and how low to keep the note is directly tied to the reasonable amount of rent you can collect each month on that property and how much you need to reserve for repairs like in the case of an older home. A good realtor with experience primarily with investors can advise you. You can get a lot of information from other knowledgeable investors at Memphis Investors Group, a non-profit real estate investment club that meets once a month on the 2nd Thursday night 6p to 9pm at the Hilton at Ridgeway and I-40 in Memphis. It’s $20 to get in and tell them Jo Garner sent you. If you are outside the Memphis area, google or call your real estate association to find reputable real estate clubs in YOUR area. Our call me personally after the show and I am happy to help you find the connections you need. If you want to look at refinancing or purchasing a home, comparing special programs, talk with me personally. If you aren’t talking to me personally, you aren’t working with me. And I WANT to work with you, so call me directly at 901 482-0354 901 482-0354 or connect with me at ⦁ www.JOGarner.com
⦁ What common supporting documents are required by most traditional mortgage programs?
Every loan program doesn’t require the same supporting documents. But here are some common requirements.
ALL PAGES of the last 2 years tax returns. (If you don’t have them, I can help you get them without too much time and trouble)
Last 2 years W2s and/or 1099s
Latest paystub
ALL PAGES of your last 1 month bank statement and/or other asset account statements. If you show large deposits on your bank accounts other than payroll, ask me about a quick and easy way to get the source of those deposits verified. I can help you.
Drivers license
And there are a few more or less documents, depending on which loan program you use.
3. Share a few of the DO’s and DON’Ts that you share with your clients working their mortgages through you. (Forewarned is forearmed.) There are just certain things you DON’T do. If you are planning to go on a cruise, you DON’T sail into a category 5 hurricane. You DON’T head out on your cruise to foreign ports without your passport. You DO pack warm weather clothes if you are sailing in Alaska and do bring your credit card– and your camera too.
Here are a few highlights from the Do’s and Don’ts my personal team and I put together exclusively for my clients:
⦁ It is vitally important that you do not change anything on your asset statements after Jo has reviewed your bank statements. Any decrease in your assets or ANY large Deposit has to be sourced and proven. There is a possibility that it could make or break your deal or cause a delay in your closing. Cash is usually very difficult or sometimes impossible to properly document the source, so please do not deposit cash in your account and please do not use cash as gift funds. Please make sure that any deposits on your last 60 days bank statements through the day of closing have a proper and complete paper trail verifying the source. Unsecured borrowed funds can be problematic in instances like use of a credit card or other loan.
⦁ If you are legally married, and buying or refinancing a primary residence, even if your spouse is not on the loan nor on the title, your spouse will be required to sign a few key documents to keep your title clean under the state law. Change in marital status could cause problems on title.
⦁ When it comes time to provide bank statements or any asset account, or tax return, it is necessary to provide ALL pages of the statement, even if it is a blank page. On asset account statements, make sure the name of the bank, your name and at least part of the account number appears on any bank documentation you submit to us. Tip: When you are paying for the appraisal or the earnest money or anything before closing, it is quicker and smoother to verify those funds if they are coming DIRECTLY from the account with ample balance that we need and not any large deposits other than payroll that need to have the source verified. (For example: if checking or savings account #A has enough balance for qualifying and it doesn’t have a large deposit that’s source cannot be properly documented, then use that account for everything pertaining to your loan.)
⦁ Please do not make any changes to your income or manner of payment from income from your business or employment. When it is time to send tax returns, please send ALL pages including any K-1s if applicable. Even if your income is increasing, under current loan guidelines some methods of income payment are not allowed to be counted as qualifying income so it is important to let your loan officer know of upcoming changes right away to make sure the type payment of income is acceptable for loan qualification purposes. If you own 25% or more of a business, please send all pages of the business tax returns for the past 2 years also.
⦁ Do not open any new credit accounts (and especially not a 12-months-same-as-cash account.) Do not add balances to any existing credit accounts. Do not apply for any new credit during the loan process. Do not make any changes on your credit status.
⦁ Use funds for closing DIRECTLY from the account where we have verified your funds. If funds come from a different account, it can delay or jeopardize your closing . Also do not move money from the account where funds were verified to another account to access for closing. Funds must come DIRECTLY from the account where funds were verified and not moved to a different account for any reason.
⦁ If there will be a full appraisal on the property you are financing, please inspect the subject property for repairs that may be required prior to closing by the appraiser. Some common required repairs are leaky roof, rotted wood, peeling paint, torn flooring, broken tile, non-functional plumbing, electrical or HVAC systems, drainage problems, holes in sheetrock, broken windows, foundational problems, termite damage, hazardous waste on property, etc. If the property is in a flood zone, flood insurance will be required. Appraisal values are determined by the assigned appraiser. Comparable property sales over the last 6 months to a year on houses like the subject property in the subject property neighborhood are used to determine the official value used by the mortgage company. Government guidelines require the mortgage company to order an appraisal and have the appraiser to be assigned to the property by a third-party, government approved order agency separate from the mortgage company. The mortgage company must order the appraisal from the approved agency. Appraisals from other mortgage companies and appraisals ordered by anyone else, are not qualified to be used under current loan regulations.
⦁ If you are refinancing your home, please make sure the home has not been listed for sale on the market within the last 6 months.
REAL ESTATE TIP OF THE WEEK: (Joe Rojas shares a real estate related, time-saving or money-saving tip )
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ANNOUNCEMENTS: Announcements: This Wednesday March 23, 2016, 9A-10A CT “FREE, FREE AND ALMOST FREE! Learn How To Get Information To Buy, Sell & Value Real Estate Including Free Forms” with Joe Kirkland, Jr. Talk Shoppe offers networking and education to anyone interested in real estate or business every Wednesday 9A-10A at University of Phoenix in Memphis 65 Germantown Court 1st floor across from Germantown Parkway from the Ag Center. For more about Talk Shoppe, go to www.TalkShoppe.com
Talk Shoppe events are free for the next two months thanks to our sponsors and advertisers –such as Gwen Christensen, owner of Builders Floors And Interiors where you can find professional flooring installation for less than the cost of the Big Box stores. www.BuildersFloorsAndInteriors.com and Mary Lou Nowak of Home Helpers, with non-medical assistance for your elderly or handicapped loved ones so they can stay comfortably in their homes (901) 414-9696.
FOR THIS PODCAST OF REAL ESTATE MORTGAGE SHOPPE AND MORE, GO TO JOGARNER.COM
Call me. MAKE YOUR PLAN, WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
And for our special nautical, naval attire for the ocean voyage used for today’s podcast, a Special thanks to Lincoln’s Costume Shop 29 Florence St Memphis, TN 38104 www.lincolncostumes.com
Thank you to the following realtors for sharing with me what types of real estate transactions are hot in their personal real estate businesses and where their challenges are in this market. Next week we hope to share with our listeners what’s hot and what’s not in the market, so if you are an active realtor, please contact me this week and let me know what’s hot and what’s not in your own daily real estate business. Together, we can get ahead of CoreLogic statistics.
Brenda Medling, Realtor with Keller Williams www.brendamedling.com
Mary Currie, Realtor with Coldwell Banker Collins-Maury 901 337-6804
Ellis Rankin, Realtor with Realty One Group 901 406-3141
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QUOTE CORNER:
Ricky Skaggs “I can’t control the wind but I can adjust the sail.”
Alexander Pope- “On life’s vast ocean diversely we sail. Reasons the card, but passion the gale.”
Pinterest- “We travel not to escape life, but for life not to escape us.”
Transitional Music: “Come Sail Away” by Styxx; “When the Ship Hits The Sand” by Tennessee Ernie Ford & Dean Martin; “I’m Your Captain” by Grand Funk Railroad; “Memphis” by Johnny Rivers for the Look Back Memphis Trivia Contest
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REJOINERS:
Marx Sterbcow, Sterbow Law Group. marx@yourrealestatelawyer.com
Mark Cardona, Environeeds LLC mark@environeeds.com
Donna Bellinger, www.GroupEndeavors.com (866) 208-3254
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ABOUT JOE ROJAS, Fearnley, Martin, and McDonald
(901) 289-5821
Joe Rojas has been in the title company business for over 15 years and has helped hundreds of clients have a smooth closing over the years.
ABOUT FEARNLEY, MARTIN, AND MCDONALD-
Fearnley, Martin & McDonald is Memphis law firm, providing quality, accurate and convenient settlement services in both Tennessee and North Mississippi. The partners, Michael A. Fearnley, Myra Q. Martin and W. Grady McDonald, have over 75 years of combined legal expertise.
Fearnley, Martin & McDonald’s extensive real estate practice provides a complete range of services from contracts to closing and title abstracts to title insurance. The firm’s real estate clients include realtors, brokers, developers, contractors, private investors, and homeowners.
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ABOUT JO GARNER-MORTGAGE LOAN OFFICER:
www.JoGarner.com (901) 482 0354 jo@192.232.195.219 twitter @jogarner NMLS: 757308
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 .