The House You Want With The Terms You Want

http://192.232.195.219/audio-podcasts/

HIGHLIGHTS FROM OUR SHOW:

MARKET NEWS

Ishare Agency Social Media Tip of the Day

QUESTIONS ANSWERED BY LORETTA MCNARY:

What motivates you to stay so successful in the television and radio business?
What shows are you currently hosting and producing and how do we contact you?
What word of encouragement would you give to someone who is an entrepreneur or wants to become one?

QUESTIONS ANSWERED BY PAT GOLDSTEIN:

Can you recall any situations where buyers or sellers ran into a snag because something not spelled out in the real estate purchase contract?

Can you recall any situations where a buyer or seller was saved due to details in their contract?
What is YOUR advice, Pat, when it comes to drafting a real estate contract?
What is your advice about including personal items in the contract?
Specifically how to you word on the contract asking the sellers to pay the buyer’s closing costs and prepaid taxes and insurance ?

QUESTIONS ANSWERED BY JO GARNER

Questions answered by Jo Garner

What are the most important items on the mortgage that you want to make sure you are getting on your final terms?
When is it better to pay points to get a lower rate and when should you take the higher rate with no points.

What are some important items concerning the real estate financing that needs to be specified in the home purchase contract?
what are the loan limitations on what sellers can pay for buyers’ costs?

What are some points of communication that need to be absolutely clear at the time of the loan application to assure a smooth closing?

How do I know if I am getting the best terms on a mortgage?

REAL ESTATE TIP OF THE WEEK:

Announcments

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 Loan Officer with Evolve Bank and Trust. Sitting around the coffee table with us today we have Pat Goldstein, a top-producing realtor with Crye-Leike in Memphis. Pat was awarded the 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. Pat, after almost 30 years in the real estate business, and she is on the advisory board for developing our new Tennessee Association of Realtors real estate contracts. <Pat Goldstein has about 1 minute to introduce herself and talk about what she does>

(Jo) We have another distinquished guests around the table today. Loretta McNary, host of Comcast’s “On Cable Tonight” show, “The Loretta McNary Show.” She’s hosted programs on Trinity Broadcasting Network and has a radio show too. Loretta is the iShare Agency Expert today who will later be sharing our “iShare Expert Agency Social Media Tip of the Week.” Loretta, tell us a little about yourself and what you do. <Loretta has about 1 minute to introduce herself and what she does>

(Jo) I’ve been in the mortgage business between 25 and 30 yrs now and I learn something new every day. Out of all of my years in mortgage, I have never seen so many paramount changes in such a short time as we are seeing right now. Coming up in September, the government FHA loan program is about to make SEVERAL changes to their guidelines. Call me and we can discuss how these changes can affect you. Today is June 20^th, 2015 and the government was supposed to implement major changes as of August 1^st in the way loans are closed, requiring 3 days for the borrower to review the FINAL numbers before they can close. This sweeping procedure change has been pushed off until October 1^st. The change in the procedure means if there are changes to those numbers after you get the final number, then the changes are made and you have to wait out an additional time after the final numbers have been delivered to you. In principle that may sound good, But wait til you are juggling your mover and the next guy’s mover and then you hit an unexpected snag. Its going to be so important that you put an experienced realtor and loan officer and closing attorney around you to keep your transaction on a smooth path to your closing day. But the good news yesterday afternoon is that the price on mortgage rates went down after being up for awhile. 30YR FIXED – 4.125% ish
FHA/VA – 3.75ish; 15 YEAR FIXED – 3.25-3.375%
5 YEAR ARMS – 2.75 – 3.25% depending on the lender. These are still great rates. Remember –MAKE YOUR PLAN, WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY. My assistant Susan and I would like very much to work with you. Give us a call now at 901 535-WREC 901 535-9732 or call me off the air at 901 482-0354 901 482-0354 or connect with me on the blog www.JoGarner.com

(Jo) We have been seeing a lot of contract signing, sealing and delivering getting done lately with people buying houses. Someone told me this past week that they have not seen the buying be so active since back in the heyday 2006. There are still plenty of people refinancing and restructuring right now too. Yesterday I was having breakfast with a realtor who specializes in finding cash-flowing investment property for real estate investors. Some of her clients want to buy fixer-upper properties, clean ‘em up and fix ‘em up and then resell or keep and make an income renting to tenants. Most have a little cash but not enough to buy multiple properties like that. I shared with her about a program I sometimes use to refinance a house the investor buys for cash. This program allows me to refinance the house he paid cash for and let him recoup his cash right away without having to wait several months for the property to be seasoned in his name. This frees up his cash again and makes him ready to go buy yet another property to add to his portfolio. If you buy a house and rent it to tenants at a positive cash flow and you keep adding properties like this to your portfolio, after a while you could find yourself making so REALLY BIG MONEY. Fannie Mae allows you to own up to 10 financed properties. But you have to know what you want and what you’re looking for in order to make the contract negotiation work best for you. Call me and we can talk about how that program can help you or someone you know. On the air at 901 535-WREC 535-9732. Or call me off the air at 901 482-0354 901 482-0354 or connect with me on the blog at www.JOGarner.com

<Loretta makes comments about wanted to know as much as she needs to when her family starts the home buying process with her sons>

(JO) Pat, we’re talking about “SIGNED, SEALED, DELIVERED- Make It Yours–Writing The Contract On The House You Want With The Terms You Want” What are some key pieces of advice your give your clients when it comes time to write up the contract to buy a house? <Pat launches her topic>

^2nd SEGMENT Of Show iShare Agency SOCIAL MEDIA TIP OF THE DAY (background music “Roar” by Katy Perry)
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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. Loretta McNary is a television and radio personality and host of both television AND radio shows that can be heard locally in the Memphis area and across the internet. Loretta McNary, what is our Social Media Tip of the Day? (Loretta has about 2 minutes to share what iShare Agency is and what it does and then the Social Media Tip of the Week)

QUESTIONS ANSWERED BY LORETTA MCNARY:

What motivates you to stay so successful in the television and radio business?
What shows are you currently hosting and producing and how do we contact you?
What word of encouragement would you give to someone who is an entrepreneur or wants to become one?

QUESTIONS ANSWERED BY PAT GOLDSTEIN:

Can you recall any situations where buyers or sellers ran into a snag because something not spelled out in the real estate purchase contract?

Can you recall any situations where a buyer or seller was saved due to details in their contract?
What is YOUR advice, Pat, when it comes to drafting a real estate contract?
What is your advice about including personal items in the contract?
Specifically how to you word on the contract asking the sellers to pay the buyer’s closing costs and prepaid taxes and insurance ?

QUESTIONS ANSWERED BY JO GARNER

Questions answered by Jo Garner

What are the most important items on the mortgage that you want to make sure you are getting on your final terms?

In most cases you’re going to live with the mortgage as long as you live with the house until you pay off the mortgage—hopefully sooner rather than later. The most important points to understand on your loan are the good faith estimate and the truth-in-lending form. Good luck understanding the government’s new “Simplified Version” of the good faith estimate—it’s a rubick’s cube. Most mortgage companies add a transactional summary which is like the old good faith estimate –one that you can understand. You want to know: 1. The amount of down payment 2. The amount of closing costs 3. The amount of your prepaid taxes and insurance 4. The amount the seller or anyone else is paying toward your costs. This gives your total move-in costs.

The payment amount is equally important. The payment is usually made up of the Principal and Interest payment from the loan. Monthly amount of property taxes, and the amount of homeowners’ insurance. Check to see if there is monthly private mortgage insurance . Also check to see if there is an association fee on the property. The association fee is not included in the mortgage payment but it will affect the income-to-debt ratios that the mortgage company uses to qualify you and it will affect your personal budget.

The truth-in-lending statement will tell you if the loan is a fixed rate or adjustable rate. It will tell you if the loan has a prepayment penalty or not (on traditional loans, there is usually no prepayment penalty), The truth-in-lending statement will say whether the loan is assumable or not, the terms of when the payment will be late and what the late fees are and more.

When is it better to pay points to get a lower rate and when should you take the higher rate with no points.

Most borrowers want to pay the least amount of closing costs, so it is rare to have someone pay points—unless the seller or someone else is paying for them.

There are two questions you want to ask yourself when you are trying to decide whether to pay extra money to buy your mortgage rate down.

The first question is how long are you going to have this loan? Less than 5 years? Over 5 years? Paying a full 1% of the loan amount will usually lower the interest rate about a quarter or 3/8^th of on the interest rate. You want to make sure you keeping the house long enough to make it worth spending that extra money to get the lower rate.

The second question is –how long will it take me to recapture the additional investment of buying a point or more? If you are paying only a ½% to pay the rate down, then it may take about 2 to 3 years to realize your money back on your investment. If you are going to have this loan for over 5 years, then it could make sense to pay a full point or origination fee to get the rate down lower than market. The savings on the lower payment compared to the payment without buying down the rate is a difference that usually takes about 5 years roughly to recapture the 1% you paid to get the rate lower. .

If I recently had a young couple in my office and they were buying their first house. Since their budget was tight they insisted on a payment not to exceed “x” amount. In order to keep their payment within their means, ,we needed a lower rate and it was going to cost close to 1% of the loan amount over and above normal closing costs. Since the price of the home was close to $100,000, 1% of the loan amount would have cost them a wopping $950 extra—and that was money they just didn’t have. BUT, when we read through their home purchase contract, it said the sellers were willing to pay the maximum of 6% of the price of the home toward the buyer’s costs. . Much to the buyer’s surprise the amount the seller agreed to pay on their behalf was enough to pay ALL of their closing costs, prepaid property taxes and homeowners insurance with just enough left over to cover the extra 1% needed to buy the rate down.

My customers got the payment they wanted for no extra money out of THEIR pocket. If it is someone else besides you paying the costs to buy down the rate, then go for it—it doesn’t matter how long you’re staying in the house—you’re not paying the points anyway. But if you did have to pay that, let’s say, 1% to get the rate down, it normally takes roughly 5 years to recapture your investment. Call me and I can do these quick calculations for you. Call me directly at 901 482 0354. 901 482 0354.

What are some important items concerning the real estate financing that needs to be specified in the home purchase contract? How much, if any, of the closing costs for the buyer that the seller is paying? Does this include prepaid taxes and insurance?

What are the loan limitations on what sellers can pay for buyers’ costs? 3% for conventional loans with more than 90% LTV; 6% for FHA loans and conventional loans with an LTV of less than 90%

What are some points of communication that need to be absolutely clear at the time of the loan application to assure a smooth closing?

Want to have a smooth closing? It starts at the time of the mortgage application.

Numero Uno: Make sure you state your income correctly. If you are an independent contractor or 1099 employee, let the loan officer know this up front because the rules for calculating your income are totally different compared to if you are a full fledged employee.

If you are a temporary worker or self employed, let the loan officer know right up front.

If you write off unreimbursed employee expenses on your tax returns (like mileage, travel, entertainment, uniforms, marketing expenses), let the loan officer know. The amount of unreimbursed employee expenses are deducted from your other income.

If you have a side business where you write off a loss on your tax returns, let the loan officer know. If you own real estate let the loan officer know All of these things can affect the income the mortgage company is allowed to use to qualify you.

Numero dos: Assets. Be very clear where you plan to get the assets to close on your deal. If you are using money that is gifted to you and not already seasoned in your own account for the last 60 days, the loan regulations are different for using gift funds. In most cases you can USE gift funds but the underwriting requirements are different.

If you have large deposits other than payroll showing in your bank accounts, communicate clearly the source of these deposits.

How do I know if I am getting the best terms on a mortgage?
Shop at least three different mortgage companies. But remember the lowest rate is almost NEVER the best deal. Here’s another warning about the 1-800 companies. I have seen their quotes and so many times they leave out large items on the closing costs that the borrower WILL HAVE TO PAY at closing like State real estate transfer taxes and taxes on the mortgage—amongst other things.
The rate you end up will largely be based on your credit score. The higher your credit score the lower your rate. If you are just a little bit off from the best rate, let me help you get your score up enough to get the best rate. A credit score of 740 and above gets the best rate quotes. There are several tiers below that with varying rates depending on the score range.
Give the lender ALL pages of your last 2 years tax returns, your latest paystubs, W2s, 1099s and all pages of your bank statements up front. There are strict guidelines on how your income and assets are counted. Better to know this up front before spending money on an appraisal or before putting down earnest money to buy a house.
If you are self-employed or if you own rental property, there are fewer and fewer loan officers out there who know how to find income in the back pages of your tax returns and corporate returns and K-1s. I have gotten so many self-employed people approved and closed over the last few months than ever before. These are people with good credit who have been turned down at other mortgage companies and banks due to lack of income. When they send me all pages of their tax returns, in so many cases, I have been able to find thousands of dollars of income IN THE BACK PAGES OF THE RETURN. If you are that person or you know someone like this, call me on the air right now at 901 535 WREC or directly off the air at 901 482 0354.

REAL ESTATE TIP OF THE WEEK: Loretta McNary shares her iShare Agency Social Media Tip of the Week for Real Estate Professionals. ( about 2 minutes) 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. Loretta McNary is a television and radio personality and host of both television AND radio shows that can be heard locally in the Memphis area and across the internet. Loretta McNary, what is our Social Media Tip of the Day? (Loretta has about 2 minutes to share what iShare Agency is and what it does and then the Social Media Tip of the Week)

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Announcements: Talk Shoppe offers free education and networking to anyone interested in real estate or in business. This Wednesday June 24^th, 2015 9A-10AM at the University of Phoenix 65 Germantown Court Cordova, TN (across from The Butcher Shop) join us for the Mastermind Principle-based on the book Think And Grow Rich by Napoleon Hill. For more information about Talk Shoppe, go to www.TalkShoppe.com

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: “Stuck In The Middle With You” by Stealers Wheel; “Straight Up” by Paula Abdul; “Signed, Sealed Delivered, I’m Yours” by Stevie Wonder; “Roar” by Katy Perry for the iShare Agency Social Media Tip of the Week.

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)

ABOUT LORETTA MCNARY, TELEVISION HOST AND MEDIA PERSONALITY

Loretta McNary

TV & Radio Media Personality, Interviewing on the Red Carpet, in the Studio and “On Location” all across the Nation!

Collierville, Tennessee

Entertainment

Current	1. The Loretta McNary Show,2. Pink Eagles Inc.,3. Comcast Cable
Previous	1. TBN (Trinity Broadcasting Network)
Education	1. Strayer University

Contact Info

https://www.linkedin.com/in/lorettamcnary

Background

Summary

The Loretta McNary Show also airs in Dallas, TX. The LM Show airs weekly locally on CW30, and Comcast 17. The Loretta McNary Show is a daytime show hosted by TV personality, radio show host (Loretta McNary Live, the Radio Show), Empowerment Speaker and award-winning author, Loretta McNary. The Loretta McNary Show debuted Dec, 2006 in Memphis, TN, ARK, MS and ALA. And begin airing in Atlanta, GA in 2011 and in on CW30 & in Nashville, TN in 2013, in addition to airing weekly on Comcast since 2011. Our goal is National Syndication in 2015.

Each week Loretta talks to celebrities, medical experts, athletes, fashionistas, best-selling authors and everyday unsung heroes: real people offering real solutions to everyday problems. She brings a blend of high energy, fun, laughter, sophistication and realness to TV talk. Drawing from her own personal life experiences, Loretta informs, educates and motivates, while covering a varied range of “hot” topics including healthy relationships, finance, fashion and beauty, sports, technology, social media trends, health and fitness plus entertainment to help inspire her audience to embrace and create positive changes in their lives.
With each show, The Loretta McNary Show intentionally and strategically shares and emphasizes for our audiences all that is purposed, positive and possible through hard work, education, faith and obedience to God. We know that the success of The Loretta McNary Show, will help make the world a greater place for family, businesses and community to live, work and play by inspiring others to live a life filled with joy, balance and purpose. Loretta’s target audience is women 25 – 54 years old. Our shows our taped live in front of a studio audience in on the Red carpet and On Location. Loretta also travels locally and nationally to record the show.
Additionally, in 2014 Loretta will be on tour with her new series of Seminars & Conferences entitled WomenNPOWERment™ to 7 major cities!

Loretta McNary Show Bio 2014

Experience

TV & Radio Media Personality

The Loretta McNary Show

September 2006 – Present (8 years 10 months)Greater Memphis Area

We share amazing stories to inspire other amazing stories every week on Comcast Channel 17 at 8:00 pm. These stories are taped live in front of a studio audience every first Friday! We also tape on location at least once a week covering the most exciting events and national and local celebrities!

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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.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 .

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,

P: (901) 482-0354 | E: Jo@JoGarner.com