Can you remember how you felt when you missed out on a great deal or when you were lured into a bad one because you believed something to be true that wasn’t? In this episode of Real Estate Mortgage Shoppe we are going to be dispelling some myths and sharing with you the “inside scoop” to prevent you making a mistake that could cost you money.
Connect with us! Subscribe at www.JoGarner.com for weekly Real Estate Mortgage Shoppe podcasts with show notes.
Host: #JoGarner #MortgageLoanOfficer (901) 482-0354
Co-Host: #TomKing #memphisAppraiser (901) 487-6989
Guest: #DonnaRoach #HearthsideSeniorLiving 901 651-2503
#mortgagemyths #realestateappraisalmyths #memphismortgage #memphisseniorcare
#homebuyer #midsouthrealestate
LET’S GET STARTED…(Jo) (Good morning, Memphis! Welcome to our internet listeners and podcast listeners across the 50 states! . You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Originator. You can connect with me at www.JoGarner.com. Our topic: HOW TO QUALIFY FOR A MORTGAGE-CLEARING UP MYTHS THAT COST YOU MONEY. This is our Memorial Day show, so we will specifically want to spend some time talking with our veterans about qualifying for the Veteran Home Loan. Thank you to real estate attorneys, Rob Draughon and Shelley Rothman of Griffin, Clift, Everton and Maschmeyer for sponsoring the episode. Today is May 24th, 2025 Call in to the live show at 901 535-9732
Introducing Tom King, Appraiser with Bill King Company
(Jo) Tom King, our appraiser expert, is back in the studio. Tom, it has been a wild real estate spring market. I can’t wait to hear your observations. Take a moment and tell our new listeners a little about yourself and the types of appraisals you do for your clients. (Tom King has about 3 minutes to introduce himself and share his observations about our Mid-South real estate market)
(Jo) WE WILL DISPELL MORTGAGE AND APPRAISAL MYTHS Can you remember how you felt when you missed out on a great deal or when you were lured into a bad one because you believed something to be true that wasn’t? In this episode of Real Estate Mortgage Shoppe we are going to be dispelling some myths and sharing with you the “inside scoop” to prevent you making a mistake that could cost you money.
JOHN-Knew How to Use Mortgages as a Tool to Build HIS wealth
Since it is Memorial Day, it reminds me of a US military veteran client we can call G.I. John. G.I.
(Jo) Since it is Memorial Day weekend, I want to share a story about one of my star veteran real estate investors. When John first started out he bought a house in the city where he was stationed using a 100% veteran loan. He put together a plan to get wealthy during his military career moving from station to station buying a house each move and keeping the other homes for rental income.
The challenge that threatened to shoot holes in his life plan was the fact that the more property he bought, the more specialized mortgage products he needed since his VA eligibility was limited to one or two properties. He needed an experienced mortgage loan originator who could continue to come up with additional mortgage loan programs that fit each situation, so he could continue buying properties at terms that would allow him to make money.
It has been a joy and inspiration getting to work with GI John as his mortgage officer. GI John continues to build his real estate portfolio. Since he has done so well with his rental properties, many of his houses are paid off and he no longer has to work. He is finishing up a long military career. Now I see pictures on Facebook of John and his wife regularly on a Carribbean Cruise, on a beach, in the mountains and other exotic places. Thank you, John, for your service to our country. Kudos! to you for making your plan, working your plan, and when the deal worked for you, you did it.
(Jo) My star veteran real estate investor client knew how to break past common myths a lot of veterans get stuck believing, not realizing the gold mine close at hand. But the VA loan is not the only gold mine available. My veteran customer, John, used the low down payment FHA loan, and different one example of myth variations of the conventional loan product—even cash.
Here’s some myths veterans believe about the Veteran Home Loan program that can cause them to miss opportunities.
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You can’t use your VA mortgage eligibility more than once. YES YOU CAN
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You can’t have more than one VA loan. YES YOU CAN
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The VA mortgage can only be used to buy single-family homes. WRONG a veteran can buy duplexes, tri-plexes and quadraplexes as long as the veteran lives in one of the units
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The VA loan can’t be assumed by another party subject to the lender’s approval. YES IT CAN.
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You can only qualify for a mortgage up to 4 times the eligibility amount showing on your Certificate of Eligibility. WRONG. If your income and debt ratios and credit allow to you easily make the house payment on a very large mortgage, the mortgage company can raise your loan amount right up to the maximum conforming loan limit of $806,500. Let’s talk one on one about this
We will cover more on the myth busters in more detail later in the show.
OUTRO: You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Originator. What do YOU want to accomplish with YOUR mortgage? I can make the mortgage process EASY for you with the right mortgage. Connect with me at JoGarner.com When we come back, we will be hearing more from Pat Goldstein, Realtor with Crye-Leike Realtors. We will also be hearing from Lawren Bogard of Shelby Gardens Memory Care. We will see you back in just a moment.
2nd segment 9:18 am – 9:30 am
2nd segment is after 9:15 break from about 9:18Am to 9:30 AM break
It’s time to talk shop with Talk Shoppe’s Business Tip For Real Estate Professionals. Talk Shoppe is a marketing company offering free education and networking to anyone interested in real estate or in business or health and wellness. Talk Shoppe is made possible by the financial support of its sponsors. For more about Talk Shoppe, go to www.TalkShoppe.com (shoppe) For our Talk Shoppe Business Tip today we have Donna Roach of Hearthside Senior Living in Bartlett, TN. Donna, your philosophy at Hearthside is to not only care FOR people, but you care ABOUT people too. One of my family members really enjoyed living there. I saw first hand how kind and hospitable Hearthside is, and the extra efforts you go through to make life enjoyable. Donna Roach of Hearthside Senior Living, what is our Talk Shoppe tip today?
DONNA ROACH, HEARTHSIDE SENIOR LIVING
(901) 651-2503
When considering a move to a senior community, talk to the Director and see if they have any discounts for veterans. In our building we have 5% off of the rent which can add up over time. We appreciate the service our veterans gave so they deserve a discount!
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TOPICS COVERED BY TOM KING, APPRAISER WITH BILL KING COMPANY
Appraisal Myth #1: Appraisers use dollar per square foot as their primary valuation formula.
Appraisal Myth #2: Every comparable sale in the neighborhood is a good comparable sale in determining value on a home as long as it is recent.
Appraisal Myth #3: When you get a mortgage you can choose your own appraiser.
Appraisal Myth #4: When you get a mortgage you can order your own appraisal.
Appraisal Myth #5: The asking price is always going to be the value on the home.
Appraisal Myth #6: Appraisers don’t look in the attic.
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3rd SEGMENT 9:35 AM-9:45AM)
TOPICS COVERED BY JO GARNER, LICENSED MORTGAGE OFFICER
Mortgage Myth #1: Real estate investors buying rental property are only allowed to own up to 10 properties if they are getting the Fannie Mae low fixed interest rate, and low payment mortgage. This is sort of true but,
Here’s a tip for real estate investors—busting the myth that you can’t own more than 10 homes and that you have to have a wheelbarrow full of documents to get qualified. One of the most poplar loan types for investors today is the low documentation DSCR loan. The only income you need to verify is the lease income on the rental property you are buying or refinancing. You still have to verify the source of the funds you will be using to pay the down payment, closing costs and some money left for emergencies.
These loans require a minimum down of about 20% depending on credit and loan type. The lender will pull credit and do an appraisal on the property too. Homes need to be in good repair for this program.
There are still ways to finance fixer-uppers but it is a special program. The DSCR mortgage programs differ in their guidelines. Some have no limit on how many real estate properties an investor can own. Some of these outside the box mortgage programs will even allow you to get an investor loan in the name of you LLC business.
Mortgage Myth # 2: You can only buy a home if you have twenty percent to pay as a down payment on your primary residence . WRONG. When you buy your primary residence you can put down as little as 5% to zero down.
Mortgage Myth # 3: If you have experienced a short sale or foreclosure in less than 7 years, you cannot get a mortgage. WRONG There are some programs that will allow you to get a mortgage sooner.
Mortgage Myth #4: Your interest rate reflects the true cost of your mortgage. Wrong. Check the Annual Percentage Rate and not just the interest rate. Closing costs also contribute to the costs of a loan.
Mortgage Myth # 5: Mortgage rates change only once a day and mortgage rates go up with when the Federal Reserve rate goes up. NOT TRUE. Mortgage rates can change multiple times per day as the market moves
Mortgage Myth # 6: As long as my credit scores are good, it doesn’t matter how low my spouse’s credit scores are even if both of us need to be on the loan. NOPE. When applying jointly for a mortgage, lenders will pull both your credit scores and your spouse’s scores from each of the three major credit reporting agencies: Experian, Equifax and TransUnion. Lenders are required to use the middle score of the scores reported by the three bureaus. Lenders have to use the middle score from the spouse with the lowest middle score. This means that the least creditworthy borrower will have the greatest effect on your monthly payment. In some cases where one spouse’s middle scores is extremely lower than the other spouse, we might look at taking the low scoring spouse off the loan and just keeping them on the title of the property. If the income of the low-scoring spouse is needed, then the lender tries to find a way to use the lower mid credit score.
Mortgage Myth # 7: The credit score I pulled from a consumer site like Credit Karma will be the same scores the mortgage company will get. NOT TRUE. Mortgage credit scoring is calculated on a different system than Credit Karma. Mortgage scores tend to come in lower.
Mortgage Myth # 8: Once the mortgage company has checked my credit, my income and my money to close during the mortgage process, they won’t check it again right before I close. ABSOLUTELY NOT. The mortgage company WILL check your credit again before you close.
Mortgage Myth # 9: If I get a gift from someone to use as my down payment and home closing funds, the person giving me the money doesn’t have to show a paper trail on the source of their funds. The donor WILL have to document the source of the funds.
Mortgage Myth #10: The lender’s mortgage insurance I am paying every month on my FHA loan automatically goes away when I pay my mortgage down to an 80% loan-to-value. You will always pay monthly mortgage insurance on a 30 year FHA mortgage. There are some exceptions to that. You can eliminate paying private mortgage insurance (that only helps the lender) by using a conventional mortgage. There are other strategies to avoid paying as much private mortgage on a conventional loan. Ask me about this.
Tips for Getting Qualified for a Mortgage:
1st Capital –Cash is king. The more money you have to put down on your home and the more money showing left over after the closing in case of emergencies, the better lenders like you.
2nd Character-your credit reputation. The higher your credit scores, the lower interest rates you get to enjoy. The lower your credit scores, the higher price you pay for credit. 780 is a great credit score. 700 is an okay score. Scores in the 600’s can cost you a lot more for credit. I have seen some mortgage clients take 1 or 2 simple, inexpensive moves to make some quick improvements for the credit scores
3rd. Collateral- The house needs to appraise for enough value to do what you want to do with your mortgage. Unless you are doing a renovation repair loan, the home has to be in good condition too.
4th Capacity- You need to make sure you can verify enough stable income to quality for the loan terms you need. One of my specialties is working with self-employed borrowers with good credit. There are some extra steps we can take to add certain expenses back to income to help a self-employed person qualify for the loan they want.
PLAN BEFORE YOU PAY—REN’S STORY
Not long ago, Ren (not his real name) called me and said he was finally ready to buy his first home. He announced that “I am going to use my money to pay off ALL of my bills before I come in to see you. Don’t you think that is the best thing?” My suggestion was, “Before you spend a dime paying anything off, Ren, let’s get a snapshot of where you are right now.”
Money Talks Loudest
Ren’s lease would be up soon on his apartment and he knew he needed a strong prequalification letter and a quick approval to be in the new house before he had to get out of his apartment. He was worn out with paying rent money every month when he could be investing in owning his own home. He had just enough saved to pay the 3% to 5% down payment on the house he wanted but knew he had some other debt too.
I truly appreciated Ren’s willingness to go the extra mile to help me get his loan file looking its best. But, the top priority with the mortgage underwriting software systems is to show an adequate amount of money available in the bank to make the down payment and pay some costs, and it always looks good to have reserve funds left for emergencies.
Good Credit Can Take You Far
The second important factor in making a borrower like Ren look good is to show a high credit score Ren’s ability to show that he pays creditors and only owes a small percentage on the credit lines available to him. I pointed out to Ren that a great credit score is a score over 780. An average score is around 700. When the borrower’s credit score is 650 or 640, then he can probably still get a standard mortgage, but some loan programs will cost more money to get the same mortgage rate.
Income-To-Debt Ratios-Can You Make the Payment
After looking at funds available and the credit profile, underwriters look at income-to-debt ratios. Ren’s income-to-debt ratio added the new proposed house payment including principal, interest, taxes, insurance, and mortgage insurance together with all the minimum payment amounts from credit cards, the car loan, and other installment accounts. This total divided into the gross income amount equaled the income-to-debt ratio. For Ren, his debt-to-income ratio –total monthly debt divided into his gross income— was around 45 percent. Not bad.
However, in some cases, the mortgage underwriting program could have prequalified Ren with a 50 percent income-to-debt ratio because he keeps more than enough cash available in his bank account. Ren’s prequalification letter was very strong. He was confident going into the real estate market to purchase his first home. We looked at some down payment assistance programs for Ren also.
Once the home appraisal and title work were done, Ren got all of his income and asset supporting documents into the file, then a human underwriter reviewed the information and made the ultimate decision. The three decisions underwriters make are to approve the loan, suspend the loan subject to further documentation or deny the loan. Approve is the goal.
Let’s you and I talk about YOUR plans to save on your mortgage costs or your plans to build your real estate portfolio. But you have to talk with me personally so I can work with you. You can connect with me at www.JoGarner.com or call me directly at (901) 482-0354. MAKE YOUR PLAN, LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY!
MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, LET’S DO IT TODAY. I can make the mortgage process easy. Connect with me at www.JoGarner.com You can email me at Jo@JoGarner.com or call me at (901) 482-0354
REAL ESTATE TIP OF THE WEEK
Donna Roach of Hearthside Senior Living in Bartlett, TN offers Tip of the Many veterans are eligible for Aid and Attendance benefits which provide a subsidy every month to help pay for their care. This benefit can be used for home care or towards the care received in a senior community. The wife of a veteran who has passed away is eligible as well.
There are qualifying factors but worth looking into. Consult someone who is experienced in filing for this benefit so that it gets processed quickly. Call me and I can recommend people who can help.
Unfortunately, my WWII veterans have all passed away. I have a few that are Korean veterans but several are Vietnam vets. Two of my veterans were sitting together telling me about missions they had been on in the same area even though they were in different platoons. Just listening to them talk about being shot at, moving through brush, sleeping on the ground and agent orange just gave me chills. I have so much respect for all veterans – no matter where they served or when. I hope everyone takes the weekend to truly remember those who gave all for the rights we enjoy today.
Tom King Real Estate Tip (about 1 minute)
Remember some important appraisal rules when you are estimating the value of your home. Only the space that has 7 feet from floor to ceiling is counted as full heated square feet. If less than 5-foot knee walls cannot be counted as heated square feet.
Jo Garner’s tip
Keep your credit scores as high as possible, because the higher your credit scores, the lower interest costs you have to pay when you borrower money.
Make your payments to creditors on time. On revolving accounts like credit cards, use only a small portion of the credit limit on each credit card. Keep balances owed under 30% usage.
What do YOU want to accomplish with YOUR mortgage? I have the knowledge and experience. Let’s look at traditional mortgage products, alternative mortgage products and even combinations of products. I can help you get you what you need and make the mortgage process EASY. Jo Garner, Mortgage Loan Officer 901 482-0354 www.JoGarner.com
ANNOUNCEMENTS:
Talk Shoppe equips with education, engages by offering connection opportunities between business people and empowers businesses in a supportive community. Talk Shoppe meets every Wednesday 9A-10A CT at Independent Planning Group’s conference room 110 at Clark Tower 5100 Poplar Ave 1st floor Memphis, TN
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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.
Subscribe for weekly Real Estate Mortgage Shoppe podcasts with show notes at www.JoGarner.com
SPECIAL NOTE: REAL ESTATE MORTGAGE SHOPPE DOES NOT ENDORSE 100% OF THE CONTENT ON THIS EPISODE. REAL ESTATE MORTGAGE SHOPPE RECOMMENDS THAT YOU CONSULT WITH A FINANCIAL, LEGAL OR OTHER CERTIFIED, LICENSED PROFESSIONAL BEFORE ACTING OR INVESTING ON ANYTHING YOU HEAR OR SEE FROM THE CONTENT ON THIS SHOW OR BLOG POSTS. THE INFORMATION WE SHARE ON REAL ESTATE MORTGAGE SHOPPE IS GENERAL IN NATURE MEANT FOR GENERAL EDUCATIONAL PURPOSES ONLY, AND NOT AN OFFER TO LEND. EXAMPLES GIVEN FOR ILLUSTRATION PURPOSES ON REAL ESTATE MORTGAGE SHOPPE AND MOST ARE BASED ON TRUE STORIES BUT WE USE FICTIONAL CHARACTERS AND DO NOT DIRECTLY REFLECT REAL PEOPLE OR EXACT DETAILS IN ANY OF THE SITUATIONS. JO GARNER IS A LICENSED MORTGAGE LOAN ORIGINATOR. (EQUAL HOUSING OPPORTUNITY)
QUOTE CORNER:
“The true soldier fights, not because he hates what is in front of him, but because he loves what is behind him.” G.K. Chesterton
REJOINDERS:
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Taylor Morse of Cartridge World of Collierville 901 853-3230
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Rob Draughon and Shelley Rothman Griffin, Clift Everton and Maschmeyer 901 752-1133
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Sherry Harbur of Harbur Realty www.Harbur.com
Transitional Music: “Soldier’s Light” by Rylee Preston; “Some Gave All” Billy Ray Cyrus; “God Bless The USA” by Lee Greenwood; “Taking Care Of Business” “Taking Care of Business” Bachman Turner Overdrive for Talk Shoppe Business Tip
PICK UP YOUR COPY OF “CHOOSING THE BEST MORTGAGE-THE QUICKEST WAY TO THE LIFE YOU WANT” by: JO GARNER
An essential guide for real estate professionals and their customers.
On Amazon and Barnes and Noble
ABOUT TOM KING, APPRAISER WITH BILL KING COMPANY
Tom is a well- respected and sought after appraiser in Memphis, Tennessee. He is a second generation appraiser with 40 years of 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 appraising real estate for pre-listing sales, cash buyers, divorce settlements, estate settlements. (901) 487-6989
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ABOUT JO GARNER-MORTGAGE LOAN OFFICER:
www.JoGarner.com (901) 482 0354 jo@jogarner.com X @jogarner NMLS# 757308
(currently working with Everitt Financial dba Supreme Lending)
ONLINE LOAN APPLICATION : https://jogarner.supremelendingLO.com
“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 helping her clients find the right mortgage program and making the refinance or home purchase mortgage process EASY. She offers conventional, FHA, VA or other loan programs for primary residences, second homes and investment properties.
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 30 years. She grew up in West Tennessee and got her start in real estate in Portland, Maine where she first began her real estate career. She received her real estate education from the University of Southern Maine and was personally mentored in San Diego, California by Robert G. Allen, author of Nothing Down, Creating
*Wealth and The Challenge.
On moving back to West Tennessee in 1987, she went into business buying and selling discounted owner-financed notes secured on real estate. In 1990 Jo went to work for a residential mortgage company and has been a mortgage loan officer for over 30 years.
In addition to her work in the mortgage field, Jo Garner is the primary sponsor and founder of Talk Shoppe in Memphis. www.TalkShoppe.com Jo Garner also host the radio show Real Estate Mortgage Shoppe airing on News Radio AM 600 WREC and iHeart Radio with podcasts and show notes published on www.JoGarner.com Pick up Jo Garner’s book on Amazon or Barnes Noble “Choosing the Best Mortgage-The Quickest Way to the Life You Want”