HOW TO GET THE BEST DEAL ON YOUR MORTGAGE (from the series) 5-16-15
Good morning, Memphis! Good morning across the country on iHeart Radio and BOCI Radio. You’re on the Real Estate Mortgage Shoppe program. I’m your host, Jo Garner, Mortgage Professional with Evolve Bank and Trust. If you have a real estate question, a comment or short story you would like to share on the air today, give us a call at 901 535-WREC 901 535-9732. We would love to talk with you.
Our general topic today is “How To Get The Best Deal On Your Mortgage from the series and on this part of the series we look at how you the customer, the realtor and the loan officer can work together to make the process smoother from loan application to loan closing. In the studio with us we have Terri Murphy, Real Estate author and Specialist. Has been a licensed Real Estate Broker for over 35 years and an author of 5 books, her latest as a contributing author with Donald Trump – The Best Real Estate Advice I Ever Rec’d – She’s here in Memphis TN and coaches real estate agents across the country. She hosts a monthly 36 minute webinar for agents and brokers worldwide sponsored by Point2. And for the mortgage industry, she partners with Mike White, of ImproveMyTomorrowCoaching.com –
<Terri takes about a minute or 2 to introduce herself and talk about the housing market> TERRI — Well Jo – its good news across the board! National Association published their report on May
Homeowners throughout the country have enjoyed the steady rise in home values in the past few years,” according to Lawrence Yun, chief economist of the National Association of Realtors. The problem is Jo is that some homeowners are a little hesitant to move-up and sell because they aren’t confident they’ll find another home to buy. Unfortunately for buyers, this trend—in addition to subpar homebuilding activity—is leading to the ongoing inventory shortages and subsequent run-up in prices seen in many markets. The good news for sellers is this tiny window of opportunity where they can get more for their home and still buy with low interest rates!
Lawrence Yun is NAR’s chief economist – and he is quoted as saying “housing fundamentals are moving in the right direction. “Inventories are at their highest level in over a year and price gains have slowed to much more welcoming levels in many parts of the country.
This indication of rising home sales in the upcoming months is great for buyers, as they will have more choices.
And some more good news – Distressed homes – foreclosures and short sales – accounted for 11 % of June sales, and that is down from 15 percent in June 2013.
Eight percent of June sales were foreclosures and 3 percent were short sales….so we see some positive signs of an improving housing market.
(Jo) The mortgage market can still give a lot of bragging rights to people who are getting a mortgage to buy a house or refinance one. Rates have been going on an upward climb over the past few weeks, but the economic reports have not been stellar and for the last couple of Fridays the rates have dropped down from hikes made during the week. 30YR FIXED – 4.00% FHA/VA – 3.75 15 YEAR FIXED – 3.125-3.25 5 YEAR ARMS – 2.75 – 3.25% depending on the lender . These rates still make it a GREAT time to seize the opportunity to get both a great price on the house and a great rate on the mortgage all-in-one. Make Your Plan, Work Your Plan. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY. If you want to crunch some of YOUR numbers to see what we can do for you on a lower rate, lower payment or shorter term let’s talk on the air at 901 535-WREC 901 535-9732. Or if you want to look at your overall debt structure in a little more detail, call me off the air directly at 901 482-0354 901 482-0354 and we can look for ways to convert Bad Debt to Smart Debt. You can also connect with me at www.JoGarner.com Terri, you and I were talking earlier about the major changes the Consumer Finance Protection Bureau is making to make sure consumers fully understand the terms and conditions of their real estate financing. The mandated wait times following various disclosures will slow down the time it takes to move from loan application to loan closing but we have some solutions that will save some time during the process that we can talk about during the show today. What are YOUR thoughts, Terri, on the upcoming changes?
<Terri makes comments> Terri – Jo, these new changes just mean that both the agent and the loan professional must really work together to be sure that any “issues” are resolved in advance of a closing. In the old days, we could use some white out, change the numbers due to last minute negotiations, but that won’t work with this new regulation in place.
If a buyer and or seller are involved in a multiple closing scenario, everyone must budget time in the event one of the transactions is delayed.
So contract templates may need new riders, and real estate agents must be familiar with the changes so they can adequately inform their customers or clients of what is necessary to ensure a timely and stress free closing.
(Jo) The most effective strategy will be to cut the time it takes clients to get their supporting documents to the loan officers. This will require a concentrated effort on the part of the realtor and the loan officer to work together and keep the lines of communication open at every turn. My assistant Susan Belew and I keep a calendar for each and every client whose loan is in process. Under the guidelines that will be in effect August 1st 2015, the mortgage officer cannot order an appraisal until the official documents have been signed by the borrower and returned to the mortgage office. If a client waits 3 or 4 days or even a week to return these documents, it can hold up the entire process which can cause delays down the line. One form of communication that can really chop some wait time off the process is EMAIL. If you don’t have an email, it may be helpful to find a family member or a friend you can trust that DOES HAVE EMAIL. By using email to get the documents back and forth, we can save the 2 to 3 days required mail delivery time and keep the process moving faster. Be prepared for several events during the loan process that require the borrower to have a waiting period before the mortgage company can move forward. If the appraisal comes in low and the price on the house needs to be adjusted or the appraiser requires repairs to be done before closing , new mortgage terms will need to be disclosed and a wait time for that. Final buyer inspections of the house need to be done a week or more before the closing date and not the day before closing. Once the closing package is completed by the attorney’s office or title office, the borrower has a 3 day mandatory wait time once the final closing documents are prepared before they are allowed to close under the new government guidelines. Going back to what Terri said, to keep the home loan process to the loan closing smooth, it is going to be important for the lines of communication to be clear and constant between the realtor, the loan officer and their clients.
<(Jo says to Terri): Let’s compare notes on what we can do as their realtor/loan partner team when we start the process of buying or selling to make sure the customer and client gets off on the right foot!>
Terri: You know there are a bunch, here are some top issues we as a team can help our prospects to address
The partnership services should start at the get go: When a real estate agent is contacted by a prospective Seller, the agent should have their LO partner involved so that the Seller can be pre-qualified and pre-approved for their next purchase. The agent can be assured that the seller can “sell” the property and the seller will have assurances of their purchase power on their next property.
When you have a lender partner at the beginning working with the seller, the documentation that is necessary can be covered by that loan professional so the seller gets the information on time for pre-approval. And let’s address the difference JO between Pre-approval and Pre-qualification.
JO: That’s a great distinction Terri! The Pre-Approval is more than just a phone conversation with a lender. On the preapproval letter you get from me, we will have pulled credit, and gotten verbal information from the borrower on income, assets and debts, job history and a 2-year residency history. Now, there a several instances of bidding wars out in the market where multiple offers are being made on the same house by competing parties. If you want YOUR preapproval to be stronger than the next guy’s, Susan and I can get your tax returns, paystubs and bank statements and, once we have REVIEWED them, we can strengthen YOUR preapproval letter by stating that your credit, income and assets have been reviewed by the lender. We actually had a seller tell us a couple of months ago at a closing that our borrower did NOT have the highest bid in the bidding war but our client at the SUREST bid because Susan and I had strengthened the language on the preapproval letter— and we can do that for you too. If you want to talk about YOUR real estate, or your financing—call us right now on the air at 901 535 WREC. (901) 535 9732. Or call me direct at 901 482-0354. 901 482-0354 or connect with me at J.O. Garner dot com.
(Jo) Terri, what are some other smart tips you give your clients?
<Terri> Work with your Loan originator and your realtor to work out every possible costs that accompany buying the property and what they will need financially monthly to make the mortgage payments and live reasonably.
Sure Jo – Buying a home or a property is a wonderful experience, but even then it is STRESSFUL but doesn’t have to be. Be selective! Don’t go for the lowest mortgage rate – go for the best financial instrument for you. Look for an agent that has a successful team of professionals to get you thru the buying or selling process. Do your homework..
(Jo says) Make Your Plan, Work Your Plan. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY. Give me a call and let’s talk about YOUR plans. Let’s tailor a house payment that will give you room to do other things in life besides just make a house note. Enjoy the peace of mind of having an emergency fund. Enjoy LIFE a little. We can even give you a manageable plan to pay the mortgage off early if you want to get rid of the payment sooner.
- 2nd SEGMENT Of Show iShare Agency SOCIAL MEDIA TIP OF THE DAY (background music “Roar” by Katy Perry)
_________________________________________________________________________ - To our realtor friends and other savvy and sharp business friends out there, its time for the iShare Agency Social Media Tip of The Day for real estate professionals. Leslie Smith is an iShare Expert and she’s also works with Memphis Office of Resources and Enterprise and put together a seminar for them called “Developing Your Social Media Strategy” a seminar for small business owners looking to utilize social media marketing to enhance their businesses and it works for real estate related businesses too. Leslie Smith, what’s our social media tip of the day? <Leslie shares about the iShare Agency and gives the tip –(about 2 minutes >
Questions answered by Leslie Smith:
- How can business owners connect with you at Memphis Office of Resources and Enterprise?
Questions answered by Terri Murphy
- You have some great coaching and educational resources out there. How can we find out more?
- How can we better serve the customer as a realtor/lender team? What can we do that goes beyond the closing?
____________________________________________________________
Questions answered by Jo Garner:
- Where do you go to find money for down payment and closing costs?
Gift From Family: Gifts can come from family members or employers. The amount of the donation varies according to different loan programs. The donor will be required to document the source of his funds and that the money is a gift to the donee not requiring repayment. If the family member giving the money does not want to cash in a certificate of deposit or stock fund, he can borrow against the asset to give to the donee.
Borrower’s Forgotten Assets: Whole life insurance policies or annuities may have a cash value that can be borrowed. Many times the borrower does not realize the insurance she purchased years ago has a cash value that can be borrowed to pay the move-in costs.
Loans secured on certificates of deposit, stocks and bonds, and durable assets such as cars can be used as acceptable sources of funds to close as long as the loan is secured on an asset owned by the borrower. The payment must be added into the debt-to-income ratios for qualifying purposes
IRAs, 401(k)s and Retirement Funds. There can be heavy financial penalties for pulling money from these sources. However, many companies allow the homebuyer to borrow against these assets with no penalty. The repayment terms may be calculated in the borrower’s debt-to-income ratio.
Sale or Cash Out Refinance of Existing Real Estate Property can generate needed funds to close on another property. Lenders will require the HUD 1 Settlement Statement or sufficient proof of the source of funds.
Tax Refunds can provide a surprising source of closing funds.
Move-In Costs Paid By Third Parties: Sellers are as motivated to sell a house as the buyer is to purchase. Sellers can pay up to 3% of the sales price toward the buyer’s costs if the borrower is getting a conventional loan above 90% loan-to-value. If the loan-to-value is 90%, the seller is allowed to pay costs up to 6% of the sales price or value whichever is less.
On certain loans, the sellers are allowed to pay more and even loan the borrower the equity on a second mortgage. Investor loans allow the sellers to pay no more than 2% no matter how much money the investor pays down.
FHA loans allow the seller to pay up to 6% of the price toward the buyer’s closing costs and prepaid taxes and insurance.
Lenders are motivated to close the transaction and sometimes can bump up the interest rate slightly in order to use “premium pricing” to pay the borrower’s prepaid taxes and insurance or some of the closing costs. In most cases the rate is increased .25% and the difference in the monthly payment is minimal.
Government agencies such as Tennessee Housing Development Agency have programs that provide down payment assistance to borrowers. Some of the well known programs are City of Memphis Down Payment Assistance, Shelby County Down Payment Assistance, United Housing, Inc. Rural Housing, Mississippi Bond money, H.E.L.P. For the down payment assistance grants and loans, the borrower is required to meet a minimum or maximum annual income guideline and sometimes are required to be first time homebuyers. First time homebuyers are defined as buyers who have not owned real estate in the last 2 to
- What is your advice on how to determine where you are getting the best deal when comparing estimates from different mortgage companies?
–The lowest rate is rarely ever the best deal
–You want to compare the closing costs and not the prepaid taxes and insurance to be paid at closing. The taxes and insurance will be what they’re going to be regardless of which mortgage company you use. Some mortgage companies will show you in big bold numbers the amount of their closing costs and most of the time this only shows their LENDER closing costs and not all of the third party costs—like for title work, title insurance, attorney or title company closing and document preparation fees, appraisal and sometimes the out-of-town mortgage companies are not aware of state-specific fees like state taxes on the property and state taxes on the mortgage. If you’re trying to compare which estimate is the best estimate between mortgage companies, if you will fax or scan it to me, I am happy to help you get to all of the numbers. You can reach me on the air at 901 535- WREC 901 535-9732. Or call me directly off the air at 901 482-0354 901 482-0354 or connect with me on the blog www.JoGarner.com
- What are some tools that you and Susan already have in place to help your clients and your realtors get as quickly and smoothly through the process as possible?
- My assistant and I have a calendar for each client’s file. We use this to inform our client and the realtors who serve them when documents are sent for signature and deadline dates for when the supporting documents need to be delivered back to us—the lender. Susan and I have drafted our own disclosure that we go over with our borrowers explaining the calendar and tips on how to streamline the process –for instance by using email instead of snail mail through the postage system. We have tips on the steps to take to delegate some of the support document gathering to third parties like their bankers and certified public accountants and others. Call me and we can talk about how we can specifically help YOU or someone you know about to embark on the mortgage journey. (901) 482-0354 (901) 482-0354 JOGarner.com
REAL ESTATE TIP OF THE WEEK:
Terri Murphy can share a short tip. Leslie Smith gets to share about iShare Agency again and her social media tip of the week.
Announcements: Talk Shoppe offers free education and networking to anyone interested in real estate or in business. This Wednesday May 20th, 2015 9A-10AM at the University of Phoenix 65 Germantown Court Cordova, TN (across from The Butcher Shop), Kenneth Brown from Memphis, TN Government will be presenting “Emergency Preparedness- Are You Ready?” for more information about Talk Shoppe, go to www.TalkShoppe.com
- Join us for the Power Up conference this afternoon at the University of Phoenix . Master The Art Of Smart Networking to get to the things you want. Be a part of POWER UP at the University of Phoenix 65 Germantown Court in Cordova, TN Saturday May 16th 1:45pm to 4:15pm Register now at phoenix.edu/powerup
Start playing “The Thrill Is Gone” — here’s out tribute to the now late, great BB King. We will miss you but will not forget you. You will live on right here on Beale St in Memphis.
To hear the podcast from today’s show or other podcasts, go to www.JoGarner.com
Make Your Plan, Work Your Plan. If The Deal Works For You Today, Do It Today. See you next week!
Transitional music: Money, Money, Money Abba; Money (That’s What I Want) Beatles; Opportunity by the Pet Shop Boys ; Roar by Katy Perry for Social Media Tip; “The Thrill Is Gone” by BB. King
About Leslie Smith, Memphis Office of Resources and Enterprise and iShare Expert:
Leslie Smith
Leslie Smith is the Communications Liaison for the Memphis Office of Resources and Enterprise, a city organization designed to aid in economic development by empowering and equipping businesses of Memphis with key knowledge and relationship building. She manages and develops creative models for marketing, program development and community outreach.
Her work includes presenting “Developing Your Social Media Strategy” a seminar for small business owners looking to utilize social media marketing to enhance their businesses. “I see it as a great honor and responsibility being a part of a staple organization in Memphis devoted to help grow women and minority businesses. I would love to see that within 3-5 years I have made a difference in advancing Memphis to greater small business endeavors.”
Currently, she serves as Public Relations Chair for the Memphis Urban League Young Professionals and works as a freelance reporter for multi-media outlets.
Smith earned a bachelor’s degree in journalism for the University of Mississippi.
Terri Murphy
Author, Speaker, Consultant & Communication Specialist
Terri brings a depth of industry experience and education to the Real Estate Industry. Having earned the GRI, CRS and other designations has helped Terri perform at the top of the real estate industry… at a consistency of listing and selling over 100 homes per year for over 28 years in the Chicago area. Today she performs as a consultant to the real estate and general sales industry to help build communication systems and resources that foster relational capital that result in true clients for life
About Terri:
- An active member since 1988 of the National Speakers Association
- An active member of NAR since 1978
- NAR Game Changer Coach for 2 project initiatives, 2009-2010
- Currently the Chief Information Officer for U.S. Learning, Inc.-Memphis, TN.
- Founder-President: WomensWisdomNetwork.com
- Authored weekly newspaper column for Copley News & Lakeland Press – “Murphy on Real Estate”
- Served as 2006 Chairman of the National Association of Realtors Membership Information Committee
- Former Vice-President of Interactive Business Television Network (IRTV): Writer & Producer for Muzak’s Business Satellite Television 1995
- Staff Writer for RealtyTimes, Broker Agent News, FrogPond Publishing, Memphis Woman’s Magazine and Mortgage Originator Magazine, Mortgage Planner Magazine
- Hosts a Weekly Internet Radio Program: www.WomensWisdomNetwork Success Radio
- Former host of Weekly Radio Program – “Murphy on Real Estate” for WKRS/Chicago
- Staff contributor to www.RealBlogging.com
- Author of “Terri Murphy’s Listing & Selling Secrets” published by Dearborn Publishing in l995
- Author of “Terri Murphy’s E-Listing & E-Selling Secrets: for the Technologically Clueless” – published November 2000
- Author: Taking Charge, Lessons in Leadership, published by Insight Publishers – September 2003
- Contributing Author: Real Estate Confronts the Future – published by Thompson Southwestern – Real Sure – 2005
- Contributing Author – Donald Trump: “The Best Real Estate Advice I Ever Received – Rutledge Press – 2006
- Founder of the Illinois Lake County Chapter of Women’s Council of REALTORS® 1989
- Served as President of Illinois State Chapter of Women’s Council of REALTORS®
- NAR Executive Committee 1998
- Conducts continuing education and distance learning seminars – Program Information Available
Industry Consultant to: (abbreviated list)
National Association of Realtors
KODAK
ACUMA (American Credit Union Mortgage Association)
Mortgage Professional Training Network
Great Harvest Franchises
YRC World Wide
FedEX Institute of Technology
Harris Bank of Chicago
Countrywide Funding
RE/MAX International
MUZAK
First American Title Company
Entreport, Inc.
I-Succeed.com
Ben Franklin Savings Banks
First Midwest Banks
American Back Centers for Chiropractic Medicine
Intelitouch
Steelcase-MBI
New York Times
WREG-TV
MGIC
Mortgage Originator Magazine
Realty U
Dearborn Financial Publishing Company
Media:
ABC Sunday Morning News
NBC Sunday Morning News
CNBC – Expert Segment
Twin Cities LIVE
Focus On Lake County
Live@9 – Memphis
MPTN-Mortgage Professional Training Network
CBS-WREGTV–Live@9 Regular Guest
Staff Writer/Articles Featured in:
PC World Magazine
Frog Pond Publishing
Computer Age Magazine
Real Estate Professional Online Magazine
Broker Agent News (Staff Writer)
Mortgage Originator Magazine (Staff Writer)
National Association of Mortgage Bankers
Women’s Council of Realtors® Magazine
Executive Relocation Magazine
Copley News
Real Estate Executive Magazine
Memphis Woman’s Magazine
MCAR Magazine
Certifications:
- Licensed Real Estate Agent 1978
- Licensed Real Estate Broker 1979
- Graduate: Real Estate Institute (GRI)
- Certified Residential Specialist (CRS)
- Leadership Training Graduate (LTG)(PMN)
- Certified Counselor of Real Estate (CREC) 2001
- Illinois CRS of the Year 1993
- Licensed Continuing Education Instructor (Programs approved in 26 States – 2000-2007)
- 50 Women Who Make A Difference –Memphis, TN. 2008
- ReMax Hall of Fame 1994
- Coldwell Banker Intl. Elite Presidents Club 1997
- Alma S. Thorsen Award – 1987
- 50 Women Who Make A Difference – Memphis, 2008
- 50 Top Real Estate Women – Memphis, 2010
Websites:
TerriMurphy.com
MoreUnited.com (Mortgage Originators/Real Estate United.com)
MurphyOnRealEstate.com
CertifiedMilitaryResidentialSpecialist.com
USLearning.com
For more information: Visit http://www.TerriMurphy.com www.MurphyOnRealEstate.com or call 847-970-2717
ABOUT JO GARNER:
www.JoGarner.com (901) 482 0354 jo@192.232.195.219 twitter @jogarner
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.BIZ 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 .
For real estate financing solutions, plug into the Real Estate Mortgage Shoppe program. You can find mortgage rates, FHA Streamline refinance with no out-of-pocket costs,