Today we will share with you the answers to some of the most asked questions about real estate closings. I will be sharing some do’s and don’ts during the mortgage process so you can enjoy a smooth mortgage process and avoid delays when it comes time to close.
Make your plan. Work your plan. If the deal works for you today, do it today. Let’s stay connected! Subscribe to get Real Estate Mortgage Shoppe weekly podcasts with show notes at www.JoGarner.com
Jo Garner, Mortgage Loan Officer NMLS# 757308 (901) 482-0354 www.JoGarner.com
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LET’S TALK REAL ESTATE
Good morning, Memphis! Welcome to our internet listeners and podcast listeners across the 50 states! You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Officer. You can connect with me at www.JoGarner.com. Our general topic is Real Estate and Mortgage Closings -Answers To Your Questions. ubscribe to get our weekly blogposts with podcasts at www.JoGarner.com. Call us while we are live at (901) 535-9732 Today is October 20th, 2018.
REAL ESTATE AND MORTGAGE CLOSINGS
Today we will share with you the answers to some of the most asked questions about real estate closings. I will be sharing some do’s and don’ts during the mortgage process so you can enjoy a smooth mortgage process and avoid delays when it comes time to close.
(Jo) Back again in the studio we have Joe Rojas, representative from Quality Title Group here in Memphis, TN. Joe, you’ve been in the title business for almost 20 years, haven’t you? Joe is fluent in both English and Spanish and I like to say we are both fluent in “mortgagese—the lingo for the mortgage business.” You close a lot of loans for my clients and even step in to answer questions after-hours. Take a moment and tell our listeners a little about yourself and what Quality Title Group does for your clients? (Joe Rojas talks about Quality Title Group. They handle real estate closings for both residential and commercial closings. They work with people buying or refinancing a primary residence, a second home or investment property. (901) 289-5821.)
A TRIUMPHANT ENDING
(Jo) On this show you could say we are beginning the show talking about The END-the end of the home buying and mortgage process that culminates at the real estate closing table. Earlier this week I got to attend the closing with two of my mortgage clients—a married couple who have spent much of their lives serving others overseas. On returning stateside they really wanted to own their first home. Their challenge was not having the funds to close on a home and not having a large income to afford a payment on a house like the one they needed.
The Johanssons (not their real names) put a good realtor on their team who listened to what they really wanted and needed in their home. The realtor watched the market daily for months until she found a home that the Johanssons knew was meant to be their home.
But the challenge was that the price of the house with a normal down payment would wreck their budget and leave them no emergency funds. The Johanssons laid out their boundaries on payments and move-in costs. Because of their income level and the location of the home they wanted to buy, they qualified for a special down payment assistance product that offered $15,000 down payment assistance and a lower than market interest rate. Using this product, the house was well within their grasp. The payment was comfortable and they had emergency funds left over too.
When we all arrived at the title office to complete the closing of the loan and transfer of title to the Johanssons, it was a celebration time. While Mr. Johansson signed the papers, Ms. Johansson talked excitedly about how she planned to decorate the home and make it a happy place for their family and friends to come visit. When the last paper was signed and notarized, Mr. and Ms. Johansson rushed into each other’s arms in celebration of achieving he their dream of owning their own home. We were all laughing and cheering. It was a long won victory.
As we took pictures and shared more stories of the Johansson’s journey to homeownership, I felt that rush of happiness and fulfillment, knowing I had a part in making a lifelong dream come true for this very deserving couple. I reminded myself, “This is why get up, get ready and get to work each day. This is why I do what I do as a mortgage loan officer.”
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ANSWERS TO THE MOST COMMONLY ASKED REAL ESTATE CLOSING QUESTIONS
Joe Rojas, you get to attend closings every day at Quality Title Group. What should a home buyer expect when they come to their real estate closing? (Joe Rojas talks about how Quality Title Group serves their clients on closing loans and transferring title when clients buy homes or refinance them. They would with both residential and commercial transactions and transactions for primary residences, second homes and investment properties (901) 289-5821
Joe Rojas talked about the new government T.R.I.D. guidelines that went into place October 3, 2015. The new guidelines make it mandatory to wait 3 business days from the time all borrowers e-signed an acceptance of the Closing Disclosure. This 3-day wait period allows borrowers to have time to review the terms of the closing before completing the full transaction.
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.
If you or your spouse cannot attend the closing, you will need to begin several days before closing to have a specific power of attorney drawn up and signed and notarized so that some one can be legally appointed to sign for you or your spouse. Get this done early because mortgage guidelines require that the underwriter review to approve the wording and legality of your specific power of attorney. The specific power of attorney means that document is specific to that one real estate transaction.
Can you move into a house the day of closing? (Only if all the documents were signed and completed)
How is money transferred? (mentioned safety measures to make sure you are not wiring money to a crook) Never wire money from instructions given to you via email no matter how legitimate it looks. Call the title company at a number you already know is their correct telephone number to determine the correct wiring instructions. Too many crooks are getting very crafty in knowing your closing day, sometimes they know who your realtor is too. Once you have wired your funds to the false location they give you on an email, you might never see your money again.
You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Officer. What do YOU want to accomplish with your mortgage? Make your plan. Let’s work your plan if the deal works for you today, let’s do it today. When we will be hearing from Pat Goldstein, a realtor with Crye-Leike with our Talk Shoppe Tip For Real Estate Pros. Joe Rojas will be sharing more about how to prepare for your real estate closing, the importance of owner’s title insurance and other ways to avoid challenges.
2nd segment after 9:15 advertising break – (producer to start the song “Taking Care of Business” by Bachman Turner Overdrive –but bring the volume down before the lyrics start) 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. Talk Shoppe is made possible by the financial support of its sponsors and advertisers. For more about Talk Shoppe, go to www.TalkShoppe.com (shoppe) For our Talk Shoppe Business Tip today we have Talk Shoppe Pat Goldstein, realtor with Crye-Leike in Memphis, TN and North Mississippi-The Gold Standard in Real Estate) Pat, what is our Talk Shoppe Business Tip for Real Estate Professionals today? Pat shares her real estate tip To reach Pat, call her at (901) 606-2000
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TOPICS COVERED BY JOE ROJAS, REPRESENTATIVE FROM QUALITY TITLE GROUP-MEMPHIS, TN
1. How should buyers prepare for their real estate closing? (Two forms of ID and one being the picture ID on the driver license, cashiers check or getting money wired to the closing table, beware of hackers and scammers trying to redirect your wire funds)
2. If the buyer or seller cannot attend the closing, what type Power of Attorney can they use to have someone close on their behalf? (specific Power of Attorney, Get it done early and make sure the mortgage company and the closing attorney agree)
3. Documents buyers with a mortgage can expect to see:
Promissory Note promise to pay terms
Deed of Trust agreement to give the house back to the lender if the terms on the note are not paid as agreed. Other agreements such has promising to pay the taxes and insurance and make repairs.
4. What is lender’s title insurance? What does it do? Who does it benefit? How much does it cost? Lender’s title insurance is mandatory when there is a mortgage involved. It is a one time fee and covers the lender up the amount owed on the mortgage.
5. What is owner’s title insurance? What does it do? Who does it benefit? How much does it cost? Why is important for the homeowner?
Owners title insurance is paid one time at closing but will cover the entire time the home buyer lives in the house. It is usually very inexpensive because most of cost for this insurance is covered when the lender insurance is done. Owner’s title covers the hon
More common questions:
Who attends closing on a house? (mention the importance of both spouses being required to sign certain documents even if one spouse is not on the loan. If they are not where they can come to closing, they can use a specific power of attorney form.)
Can you move into a house the day of closing?
How is money transferred? (mention safety measures to make sure you are not wiring money to a crook)
Talk about the 3-day mandatory wait once the Closing Disclosure is e-signed
Talk about the importance of owner’s title insurance and how much it costs and what it covers.
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TOPICS COVERED BY JO GARNER, MORTGAGE LOAN OFFICER
1. Talk about some of the Do’s and Don’ts Tips For A Smooth Closing that you cover with your clients?
A. Make sure you electronically sign the e-consent forms sent to you at the beginning of the loan process. This allows the lender to use your email to send time sensitive information instead of having to wait on snail mail through the postal service. Within 3 days of an official loan request, you should get your official Loan Estimate through your email address. It is important to e-sign this right away so that your loan process can get into full swing. When your loan is approved, you will receive an official Closing Disclosure to electronically sign which will start the government mandated 3-day delay to give you time to review your numbers before closing on your loan.
B. Be prepared to give your lender copies of all pages of your last 2 years tax returns, W2s, 1099s and latest paystub. Sometimes only the last 1 year taxes is required, but be ready to produce both of them. Be prepared to send over all pages of your last 2 months bank statements. If there are large deposits appearing on the bank statements, be prepared to have your bank send over an image deposit of the amount that was deposited into your account. You can write the reason for the deposit and send to your lender. Funds that are borrowed unsecured cannot be used in the real estate transaction.
C. Please do not make any changes to your income or manner of payment from income from your business or employment. 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. Watch out for unreimbursed employee expenses and losses from businesses showing on your tax returns. In some cases the amount of these losses could be subtracted from your regular income.
D. 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.
E. 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.
F. 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.
G. 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. Earnest money must come from the account that you will be fully documenting.
REMEMBER, AT CLOSING THE FUNDS WILL NEED TO BE IN THE FORM OF A CASHIER’S CHECK AND/OR WIRE PAYABLE TO THE CLOSING AGENT. You will need 2 forms of ID at closing including drivers license. All borrowers and interested parties will need this documentation at closing.
H. Due to the new TRID government lending guidelines, there are mandatory delays set up throughout the process, giving you a chance to review the terms as the process moves forward. If you change anything that triggers a change in the final terms after final disclosures have been sent, this could delay your closing to wait on new documents to be received by you and the mandated delay period completed.
I. Due to a rising number of incidences of hackers redirecting wired closing funds, please do NOT have any funds wired before verifying the wiring information with your loan officer and the attorney’s office. There may be additional steps to take to ensure your money is wired to the correct account.
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REAL ESTATE TIP OF THE WEEK
(Joe Rojas shares a real estate related money-saving or time-saving tip):
“NEVER WIRE MONEY TO A LOCATION OR LINK FROM THE INTERNET OR EMAIL.”
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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 Pinot’s Palette 8225 Dexter Rd Cordova, TN. This Wednesday October 24th, 2018 9A-10A Talk Shoppe presents: “Benefits of Using a Certified Senior Move Manager” by Leah Anne Morse of All Things New LAMorse@AllThingsNewWTN.com”
Talk Shoppe events are free thanks to advertisers like Mary Lou Nowak, owner of Mid-South Home Helpers for non-medical assistance so that your aging or handicapped loved ones can remain safe and comfortable in their own home. (901) 414-9696
4. Subscribe at www.JoGarner.com and you can get our weekly blog posts with podcasts conveniently in your inbox.
5. Real Estate Mortgage Shoppe reminds you to MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
SPECIAL NOTE: REAL ESTATE MORTGAGE SHOPPE RECOMMENDS THAT YOU CONSULT WITH A FINANCIAL, LEGAL OR OTHER CERTIFIED, LICENSED PROFESSIONAL BEFORE ACTING OR INVESTING ON ANYTHING YOU HEAR OR SEE FROM THE CONTENT ON THIS SHOW OR BLOG POSTS. THE INFORMATION WE SHARE ON REAL ESTATE MORTGAGE SHOPPE IS GENERAL IN NATURE MEANT FOR GENERAL EDUCATIONAL PURPOSES ONLY. ALL EXAMPLES GIVEN FOR ILLUSTRATION PURPOSES ON REAL ESTATE MORTGAGE SHOPPE USE FICTIONAL CHARACTERS AND DO NOT REFLECT REAL PEOPLE OR ACTUAL DETAILS IN ANY OF THE SITUATIONS.
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QUOTE CORNER:
Andrew Carnegie “Ninety percent of all millennials become so through owning real estate.”
Matt (The realtor is talking to his clients and says, “OR, if you want something more expensive, I can show you this house again tomorrow.”
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REJOINDERS:
1. Kevin Yee, Save Energy Solutions Duct Sealing If you’re coughing and sneezing, your ducts may be the reason Call Kevin (901) 492-1649 sesinfo.biz
2. Mary Jane Lessley owner of Signs Now of Memphis (901) 368-0784 4945 American Way Ste 8 Memphis, TN 38118
3. Jana Cardona, Executive Director of Mid-South Business Network International www.bnimidsouth.com
Transitional Music:
“How Many Biscuits Can You Eat” Tennessee Ernie Ford and June Carter; Marvin Gaye “What’s Going On?” ; “Does Your Chewing Gum Lose Its Flavor On The Bedpost Overnight” Lonnie Donegan; “Taking Care of Business” Bachman Turner Overdrive
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ABOUT PAT GOLDSTEIN, CRYE-LEIKE REALTORS
ABOUT PAT GOLDSTEIN, REALTOR CRYE-LEIKE, INC• (901) 606-2000
2006 MAAR Realtor Associate of the Year 2005 MAAR Presidential Award Recipient TAR Leadership Graduate Member National Association of Realtors
• Life Member of the Multi-Million Dollar Club. Toastmasters Division Governor CBS (Certified Builder Specialist)
• CRA (Certified Relocation Associate)
• CRS (Certified Residential Specialist)
• GREEN (Green Agent)
• GRI (Graduate, Realtors Institute)
• MMDC (Crye-Leike Multi-Million Dollar Club)
• SRES (Seniors Real Estate Specialist)
• SRS (Seller Representative Specialist)
• Vice-President (Circle of Excellence)
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ABOUT JOE ROJAS, CLOSING TITLE SPECIALIST
(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.
Contact Joe Rojas at Quality Title Group, LLC (901) 289-5821 joer@qualitytitlepro.com
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ABOUT JO GARNER-MORTGAGE LOAN OFFICER:
WHAT DO YOU WANT TO ACCOMPLISH WITH YOUR MORTGAGE?
www.JoGarner.com (901) 482 0354 jo@jogarner.com twitter @jogarner NMLS# 757308
“Whatever YOUR personal priorities are, my job is to help you get the mortgage terms that will give you bragging rights when you talk about it and help you score on hitting your goals .”
As a mortgage loan officer, my job is to help you get to the benefits you want from your financing terms. What is most important to you? I can help you find the financing terms that will help you get to what you want. What is your comfort level on a house payment? How much are you comfortable paying down,? What type of financing do you need to get the house you want to buy or refinance?
Different clients have different priorities in life—some are buying their first home with very little down payment funds. Some are recovering from medical challenges, divorces or preparing to send children to college and some are embarking on a long term goal of buying properties to build rental income.”
Jo Garner is a mortgage officer with extensive knowledge in tailoring mortgages to her customers who are refinancing or purchasing homes all over the country. She offers conventional, FHA, VA or other loan programs for refinancing and purchases.
Jo can help you look at rent vs buy, when it makes sense to refinance, how to get the best deal on your home purchase financing.
Jo Garner has been in the real estate/financing business for over 20 years. She got her start in Portland, Maine where she first began her real estate career. She received her real estate education from the University of Southern Maine and was personally mentored in San Diego, California by Robert G. Allen, author of Nothing Down, Creating Wealth and The Challenge.
On moving back to West Tennessee in 1987, she went into business buying and selling discounted owner-financed notes secured on real estate. In 1990 Jo went to work for a residential mortgage company and has been a mortgage loan officer for over 20 years. Her goal is to offer excellent, affordable service to her customers, tailoring the loan programs to the specific needs of her clients.
In addition to her work in the mortgage field, Jo Garner is the primary sponsor and founder of Talk Shoppe in Memphis. www.TalkShoppe.com She was also the editor of Power Shoppe, a free weekly e-zine designed for real estate professionals and others indirectly connected to the real estate industry and currently publishes on her blog www.JoGarner.com