Top Tips for Homebuyers Negotiating the Contract & Getting the Mortgage

Do you WANT to buy a house? Are you tired of wasting money on rent? Jo Garner, mortgage expert and experienced realtor, Pat Goldstein, share some top tips to help you use wise strategy and feel GOOD about your home purchase and your mortgage.

Let’s connect! Subscribe for weekly Real Estate Mortgage Shoppe podcasts with show notes at www.JoGarner.com

Top Tips for Homebuyers Negotiating the Contract & Getting the Mortgage

Sat 12-14-24 9AM CT

News Radio AM 600 WREC 92.1FM iHeartRadio

Host: #JoGarner #MortgageExpert (901) 482-0354

Co-host: #PatGoldstein #MemphisRealtor 901 606-2000

Subscribe to weekly Real Estate Mortgage Shoppe podcasts with show notes www.JoGarner.com

#homebuyer #firstimehomebuyer #buyingahome #realtor #homemortgage #gettingamortgage

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 general topic Top Tips for Homebuyers Negotiating the Contract & Getting the Mortgage Today is December 14th, 2024 Call us in the studio while we are live at 901 535-9732. This episode of Real Estate Mortgage Shoppe is sponsored by real estate attorneys Rob Draughon and Shelley Rothman of Griffin, Clift, Everton, Maschmeyer Law Firm. For title work and closing on your home purchase or refinance, call Rob and Shelly at 901 752-1133.

Introducing Pat Goldstein, Realtor Crye-Leike, Inc

Pat Goldstein, long-standing realtor with Crye-Leike is back in the studio. Pat, you’ve been a realtor so many years, all the awards and designations you have earned would run clear off the page if we tried to name them. Suffice it to say, you are accomplished at helping your customers buy a home or sell one—and you are known in some networking circles as the “Gold Standard” in real estate. Take a minute or so to introduce yourself and talk about the services you offer your home buyers and sellers. (Pat has about 1.5 minutes to intro herself and talk about the services she offers)

(Jo) Do you WANT to buy a house? Are you tired of wasting money on rent? Are you ready for the money you spend each month to help you build your OWN wealth? Do you need more living space?

What are the 4 common barriers to for borrowers trying to get their loan approved?

1. First, clients will tell me they don’t have any money to put down. My assistant and I are very good treasure hunters and we can find money from people in places they never thought to look! Particularly for clients who have not owned a home in 3 years or more, there are a multitude of down payment assistance programs available. If the seller pays the closing cost and prepaid taxes and insurance for the buyer, then normally the down payment assistance pays the down payment and they get in for zero down or very little.

Even if you are not a first time homebuyer, we have the 100% VA loans and the 100% USDA loans. Loans secured on other assets to get you the funds you need. Gifts from family are nice.

2. The second barrier is showing enough income to qualify for the loan you need to buy or refinance a home. If you have only been on your job a few months, we can only count your guaranteed base income and not the commissions that you hope to average over the course of the next several months. If you are self-employed and you have a lot of income that you control but, after write-offs, you only show very little. You may have some expenses that, with the right documentation, we can add back to your income for qualifying purposes. We have found tens of thousands of dollars worth of income in the BACK PAGES of the tax returns. If there is a way, we can find it to help our clients get qualified for what they want to accomplish.

3. The third barrier that we can overcome is credit issues. Our team has trained on the Credit Simulators (like flight simulators). By using the Credit Simulation tools we can look at your credit report and suggest ways you may be able to raise your credit scores by 20 or 30 points over a course of a few weeks with the least amount of investment on your part. If you keep your balance owed on credit cards UNDER 30% of the total credit limit, it will boost your credit scores. If you owe OVER 50% of the total credit limit, it can really hurt your credit scores. If you’re a realtor and you have a customer like this, we may be able to help your client with a work out plan to can get them in a house in a matter of weeks rather than months.

4. The fourth barrier is problems with the house needing repaired or a title issue. This is where an experienced realtor or closing attorney.

Your answer to the repair requirements can be easily fixed by negotiating the seller of the property to pay it or agreeing to put money back into an escrow account in some cases to make the repairs after closing. If the repair list is massive, then we may need to switch you to one of our Renovation and Repair loan programs. Title issues, most of the time, are managed or cured by an experienced closing attorney.

What do YOU want to accomplish with YOUR mortgage? I have the knowledge and experience. I can help you get you what you need the right mortgage program and make the mortgage process EASY. Jo Garner, Mortgage Loan Officer 901 482-0354 www.JoGarner.com

(Jo) Pat Goldstein, realtor with Crye-Leike in West Tennessee and North Mississippi, please share some of your top tips for home buyers for a couple of minutes before we go to break (Pat launches into her topics until break to be continued when we return from break)

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 in West TN and North Mississippi.

2nd segment 9:18 am – 9:30 am

2nd segment is after 9:15 break from about 9:18Am to 9:30 AM break

ADVICE FROM A LOYAL LISTENER ON LAUNCHING AND REACHING YOUR DREAM

Sonia Balcer, Rocket Scientist from Montrose, CA

(prerecorded in 2017)

TIP: Launch it and Land The Life You Love Step by Step with the Right Team

TOPICS COVERED BY

Pat Goldstein, Realtor with Crye-Leike in West TN & N Mississippi

Pat Goldstein, you’re an experienced realtor. What are some things you tell your prospective homebuyers or sellers BEFORE they begin the process?

1. Read the entire home purchase contract BEFORE you are under pressure. Understand what you are signing.

2. Make a list of amenities in the house that you ABSOLUTELY need to have. Make a list of things you do NOT want in the house. Make a list of amenities that would be nice to have but not a deal breaker if you don’t get them. Give these lists to your realtor.

3. Do a home inspection on the house you got under contract.

4. In a competitive situation when your offer is not the only one the seller is considering, try to eliminate as many contingencies as possible. Examples of contingencies would be the condition of having to sell your home first before following through on the purchase. Another contingency would be requiring the seller to pay your closing costs and do certain repairs.

5. Get a PREQUALIFICATION letter from a reputable lender. If possible get a stronger PREAPPROVAL letter to put with your home purchase offer to the seller.

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^3rd SEGMENT 9:35 AM-9:45AM)

TOPICS COVERED BY JO GARNER, LICENSED MORTGAGE OFFICER

HOW TO GET YOUR MORTGAGE APPROVED

Before we think about how to get approved for a mortgage, let’s review & revise our budget so we know what you can comfortably afford.

1. What is the maximum house payment that you can COMFORTABLY afford on a house payment? Can you restructure some debt to make more breathing room with the house payment? Can you make a list of products or services you use that can be substituted things that can give you the same benefit but at a lower costs? Can you trade or barter with others for things you need instead of spending your cash?

2. How much will you keep in your emergency fund after paying money for closing when you buy your home? There are plenty of financial advisors online and in books who suggest that you keep enough in an emergency fund to cover 3 – 6 months of living expenses. Some say you need a year of living expenses put back if you are self-employed. We can look at various down payment assistance programs for you to use so that you can leave yourself an adequate amount of savings in your rainy day fund.

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.

Fourth common barrier can be caused by unrepaired items that are connected to the security, structure and sanitation of the home.

1. Repairs falling under Structure, Sanitation and Security of the Home

What if the home inspection report comes back with a list of repairs connected to the Structure, Sanitation or Security of the home? It may not be a problem for your loan unless these repairs are mentioned on the home appraisal. (Remember, the mortgage company does not see the home inspection, but they see the home appraisal)

If a mortgage underwriter sees the following repairs listed on the home appraisal, the underwriter typically requires these to be repaired BEFORE closing. There are some exceptions to having these done before closing but let’s discuss your situation after the show

Sanitation Repairs: Drainage problems, Mold

Security Repairs: broken door locks, broken glass, unsecured entries into the house

Structural Repairs: Rotted wood, Peeling paint, Missing shingles or leaky roof, electrical, plumbing or heating and air systems.

How can I overcome a problem with the appraisal?

Roof causing a leak in mortgage approval -Tal and Tia Thompkins’ story

 

The Thompkins were excited about reinventing themselves as frequent cruise ship adventurers. They were smitten by a very small, sort of rustic older place with a minute sized storage shed to match the style of the home and a low maintenance, postage stamp sized lawn. Tal and Tia felt at home in the quaint neighborhood and the smaller place would expand their free time and money too.

Bad news came like a black cloud with the home inspection though. The home needed a major roof repair which was going to cost about $3,500. The mortgage company required this to be repaired before closing since it affected the structure and habitability of the house. It looked like a stalemate since the sellers would not have enough money to pay for it until the home closed and the Thompkins did not want to spend $3,500 on a roof for a home they did not own yet.

4^th segment following 9:45 am break about 9:48 to 9:56 am

REAL ESTATE TIP OF THE WEEK

PAT GOLDSTEIN’S TIP :

If you are a buyer making an offer to buy a home that needs repairs, just mentioning the major items to be done and not list several minute items like attaching new outlet covers or replacing light bulbs.

Jo Garner’s mortgage tip

It is important to get your income and asset supporting documents to the lender as soon as possible. If the lender has your full loan application, your credit and underwriting has already approved your paystubs, other income documents, and your bank statements, you have a PREAPPROVAL letter and not just a prequalification letter. Sellers tend to look more favorable on your offer when you are PREAPPROVED.

Easy ways to get tax documents is to delegate this job to your accountant. Easy ways to get your paystubs and W2s is to go online on the employment website and save them as a pdf from there to send to your lender.

If you bank online, you can print your bank statements and send to your lender as pdf.

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

Connect with me, Jo Garner,licensed Mortgage Loan Officer, at JoGarner.com (901) 482-0354.

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 1^st floor Memphis, TN

(Thank you Manny Corless and Ben Hunter of Independent Planning Group for being Talk Shoppe’s location sponsor)

Go to www.TalkShoppe.com and click the Events tab for the link to get into the event online. This Wednesday December 18 2024 9AM CT “Your New Year’s Healthcare Checklist” presented by Sherrie Serca, MSN, APRN, FNP-BC Hope Hospice & Pallative Care

This is a Health Talk powered by Mary Lou Nowak of Resource4Care.com, Sponsored by Mid-South Home Helpers with Tim Flesner and Genell Holloway and hosted by Talk Shoppe

Talk Shoppe could not offer the free educational networking events free to our community without some very giving sponsors.

Thank you to Talk Shoppe sponsor retired US Navy Line Commander Peggy Lau, your ticket to first-class vacations at bargain prices. Do you want to make some great memories for yourself and those you love? Contact Peggy Lau and she can show you how. (901) 289-0747.

Talk Shoppe is free to you because of the generosity of our sponsors like Leah Anne Morse of All Things New. Leah Anne Morse and her professional team can help you organize your home, your office or even organize to move you to a new location. Leah Anne is known by her customers for making the move a POSITIVE experience. Contact Leah Morse of All Things New 901 488-9733.

Jack’s Challenge to You for the Holidays

The late Jack Redden was a retired, licensed mental health counselor. Every holiday season, he would ask the people in our networking meetings, “ Who do you know who is going through a hard time this holiday? Who do you know who will not be able to celebrate Christmas with their family? Invite them to coffee. Be the friend that person needs. You may never know this side of heaven the positive difference you will make.”

Now you have received Jack’s Challenge.

1. 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.

6. Subscribe today for weekly podcasts with show notes at www.JoGarner.com

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 AND 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.

QUOTE CORNER:

“If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it.” Steve Jobs

REJOINDERS:

1. 1. Ed Hill of Masters Roofing in Bartlett, TN 901 273-6594

   2. Clint Cooper of Redeemers Group (foundation repair) www.RedeemersGroup.com

   3. David Corwin, Deputy Director of USDA, Harrisburg, PA

Transitional Music: “Home” by Phillips Phillips; “Signed, Sealed, Delivered” by Stevie Wonder; “This Is Home” by Switchback ; “Taking Care of Business” by Bachman Turner Overdrive for talk shoppe business tip

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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.

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ABOUT PAT GOLDSTEIN, REALTOR WITH CRYE-LEIKE

ABOUT PAT GOLDSTEIN, realtor with Crye-Leike Realtors in Memphis, TN. Licensed in Tennessee and Mississippi. (901) 606-2000 30 years full time Realtor Memphis Area Association of Realtors 2006 Realtor Associate of the Year and a veteran member of the TN Association of Realtors Residential Forms Committee.

(901) 606-2000

 

 

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ABOUT JO GARNER-MORTGAGE LOAN OFFICER:

www.JoGarner.com (901) 482 0354 jo@jogarner.com twitter @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”

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