Wisdom With Your Mortgage & Real Estate Appraisal-May The Force Be With You
The single biggest expense a borrower pays up front that is normally not refundable when applying for a mortgage, is the real estate appraisal. In this episode of Real Estate Mortgage Shoppe you will hear expert appraiser, Tom King, share tips on how to more accurately estimate what value to expect from an appraisal BEFORE you pay for one, and how to properly appeal a low value on an appraisal under the new guidelines. Also, I will be sharing some wisdom from the mortgage loan officer desk on how to have a smooth loan process under the new TRID lending guidelines.
In celebration of the recent May the 4th Stars Wars Day, we brought “Yoda” into our studio to share some of his wisdom with us too. Put the experts around you on your next real estate venture. May the Force Be With You.
Good morning Memphis, good morning to our Real Estate Mortgage Shoppe friends 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 or you can call me while we are live in the studio May 7th, 2016 at (901) 535-9732 or (800) 474-9732. Earlier this week was National Star Wars Day on May the 4th. I am sure some of you have been thinking about your favorite Stars Wars movies then through now so today Tom and I invite you to join us to talk about “Wisdom With Your Mortgage & Your Real Estate Appraisal—May The Force Be With You.” Someone said that if you stayed up too late Wednesday night May the 4th watching Star Wars movies and you drank too many margaritas on Cinco de Mayo, you’d be suffering Revenge of the Sith on Friday May 6th.
Our general topic today is “Wisdom With Your Mortgage & Real Estate Appraisal-May The Force Be With You” You will hear some valuable tips to help you with your mortgage loan decisions and Tom, what are you going to cover? Tom King, 40+ year veteran appraiser will share tips on how to property appeal a low appraisal under the new lending guidelines. He will share how the new FHA appraisal requirements will affect sellers of real estate property.
(Jo) Tom King has been an appraiser for over 40 years. He is a 2nd generation appraiser, following in his dad’s footsteps. I am convinced that Tom knows every street in all of Memphis and Shelby County and most of Tipton and Fayette counties too. His brain has a virtual street map permanently embedded right up front. Tom, talk a little about yourself and what you do.
(Jo) The Jedi Master Yoda, from the Star Wars films, would say, “Seek advice, you must. “ And Yoda is right, especially if you are about to make a decision to get a mortgage or restructure the mortgage you already have. Mortgage rates this week stayed low even though the bond market was off. The 30 yr fixed rate came in around 3.625% to 3.875%, in some cases with no points. The 15 year fixed rates are in the low 3’s. The FHA 3.5% down payment and the VA and Rural Housing 100% loans are in the mid to high 3’s on a 30 yr fixed rate.
Your mortgage is one of the biggest loans you ever have to juggle. If you are considering selling your home or buying one or maybe you’re starting to build your real estate investment portfolio, getting a good interest rate is just one part of putting your deal together. Put some experienced, reputable professionals on your team—like a good realtor, mortgage loan officer, real estate closing attorney or title company and the list goes on. The you experience the true meaning of May The Force Be With You. And having a good team like that representing you can save you thousands of dollars in time, money.
(Jo) Even though the mortgage business is a money business, it’s a people business just like anything else. With all of the big lending regulation changes that occurred back in October 2015, my experienced assistant, Susan Belew and I put together helpful list of tips we call the “Do’s and Don’t’s For A Smoother Loan Process.” So many of my customers are people I have done business with for several years. They come in laughing and saying, “I’ve closed on so many houses, I can do this with my eyes closed. I’ve got this routine down.” Some of these seasoned mortgage borrowers ARE aware of the new regulation changes, but almost all of them find something unexpected that make them glad they saw the tip sheet. Some are surprised at the government-mandated delays set throughout the loan process, to make sure borrowers have time to understand the loan terms. A good loan officer knows these time lines and how to gain time in other areas of the mortgage process. Call me directly and we can talk about this after the show. (901) 482-0354 (901) 482-0354 or email me at jo@192.232.195.219.
(Jo) I actually have the often edited version of my Do’s and Don’t’s checklist that help my clients get through the new mortgage regulations. Here are some items that raise eyebrows when some of my mortgage clients read them. Back in the day, as long as we had properly verified enough funds to close from any bank account, when it came time to close, the customer could get actual funds to close from just about anywhere. But today we have to remind our customers, “ Don’t be a Rochefeller. Don’t move money around.” From whichever account we verified your funds, that is the account you have to use to get your cashier’s check to close the deal. It’s also a good idea to get your earnest money from the same account too. People still try to move money from one account to another during the process though.. I just remind them, when the urge hits, “Just Say No.” More to come later in the show.
Tom, what are some expectations homeowners or buyers should have regarding what to expect on a value? What other aspects of the appraisal can affect their mortgage approval?
2nd segment after 9:15 break: It’s time for the Look Back Memphis Trivia Contest. Our Look Back Memphis Trivia Contest is sponsored by John and Jennifer Lawhon of Lawhon Landscape (901) 754-7474 the Lawhon’s can help you plan your landscaping if you have a BIG, BIG project or a smaller project . The Lawhons are giving away a $25 gift card to the first person with the correct trivia answer. If you know the answer to our trivia question, call us at 901 535 WREC 901 535-9732. (800) 474-9732
TRIIVIA ANSWER: THE ORPHEUM
TRIVIA QUESTION –
Memphis, Tennessee as always been considered a major “movie town” even from as far back as the days of silent moves. Theaters, some of them like palaces, opened downtown and, like Starbucks, every neighborhood seemed to tout their own . Hollywood would come and test out some of their big movies in Memphis first. In the 40’s and 50’s movies were big in Memphis, in spite of the city’s notorious movie censor, Lloyd T Binford. But changes bring more changes and as more households acquired televisions, theaters begin to decline downtown and the in the neighborhoods too. Most of the original movie theaters were closed and sadly, later demolished. Which of these early theaters still remains?
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QUESTIONS ANSWERED BY TOM KING:
1. What are some effective ways to appeal a low appraisal under the new lending guidelines.
3. What kind of comparable sales in the neighborhood can you use and which sales don’t count?
4. talk about the lender-appraiser firewall
5. Give examples of some of your clients you have been able to other than the mortgage process?
6. What some of the new FHA appraisal requirements as of September 2015 and how do they affect the homeowner?
QUESTIONS ANSWERED BY JO GARNER:
⦁ What are one or two items you talk about on the form you give your clients about how to have a smooth closing?
⦁ One of the tips includes a list of common repairs appraisers will require to be completed on the home that is being appraised. I had a mortgage client call me last week and he wanted to use his military veteran eligibility to buy a house using a VA loan. He was so excited about the house and he had looked far and wide and the one and only house for him. When I asked him about the condition of the property, he said, “Oh, there’s nothing wrong with it. It’s the perfect house for me. Well… there’s a few things but there nothing. I can fix those” There was my first hint that we needed to at least look into the property condition a little closer before getting too far ahead. I called the realtor and his description of the property was much more realistic. There was quite a bit of rotted wood that would need to be replaced. But this experienced realtor was proactive and had already arranged for a licensed contractor to get his client an itemized bid to fix what the appraiser would likely require to be fixed. Knowing the cost to repair allowed the realtor to put together the offer so that the sellers could agree to cover the cost of those obvious repairs before closing. Now once the appraiser goes out and does the work to do the appraisal, the appraisal money would not be refundable, and there is no guarantee that the appraiser would give us the value we want. But having a realtor and a loan officer who is familiar with what appraisers generally require, helped us get some workable solutions in place like negotiating the price and terms so that the seller would be able to pay for the repairs.
⦁ What are some other tips you include on the preparation sheet you give to your customers?
⦁ Here’s some common ones because now, right before you go to sign and get your mortgage money, mortgage personnel check to see if you have added any debt to your credit report; they check to make sure your employment terms are still the same-included the MANNER in which you are paid: they check to make sure you still have the funds to close.
Here’s another one—don’t let any of your bills including your mortgage go over 30 days late while you are processing the mortgage. I have heard people say SO MANY times, “I don’t have to make my mortgage payment this month because we’re closing soon, right?” If your loan is closing and your old mortgage will be paid off BEFORE you are 30 days late, then ok, but make sure it doesn’t for any reason go over 30 days late, no matter that your about to pay the whole thing off.
Several years ago, I had a customer who was under contract to buy a house. He was seriously short in his checking account on the funds he needed to purchase the home. He told me, “I’m SAVING it.” But he wouldn’t tell me where. (These kind of customers can drive a loan officer to drink.) Sure enough, right before final underwriting he brought in his latest checking account statement and viola’ the money was there. Where did it come from????? And the answer?……He just didn’t pay any of his bills that month and put all the money back in his checking account. Anyone want to guess how far his credit scores had dropped ? Over 100 points. No house deal for HIM for a while. (Don’t drive your loan officer OR your realtor to drink. We really do care about you and WANT you to get to close on your house.)
C. Here is another very important tip: When you are talking to your loan officer and they ask you for your income…please let them know any amounts of unreimbursed employee expenses that you have used as a tax deduction on page 3 of your tax return. Please also, tell your loan officer if you have any businesses showing a loss on your tax returns. In many cases, these losses and deductions have to be subtracted from your other income and this could make or break your home buying deal. When I read your tax returns, I look at the back pages because after all of these years, there are certain expense items I know I can add back to your income to help you.
4. How does someone know if the mortgage deal is right for them or if they should wait or explore other options?
A. Numbers don’t lie—maybe politicians—but not your calculator. If you are trying to decide whether to refinance to lower the rate, lower the payment or shorten the term, call me personally after this show at (901) 482-0354 (901) 482-0354 Or connect with me at www.JoGarner.com Depending on your situation, it may be better to just make prepayments to your mortgage principal or you might save a lot more money by refinancing the loan you have. There are calculations to determine whether you should rent vs buy or buy vs rent. Let’s talk.
REAL ESTATE TIP OF THE WEEK: (Tom King offers real estate related time-saving, money-saving tip warning realtors and account managers or anyone drafting a real estate contract NOT to list the seller as “Owner of Record.” List the seller’s name EXACTLY the way it appears on the current deed and save yourself and lots of other people in the process time and money.)
ANNOUNCEMENTS: 1. Talk Shoppe offers free networking & education to anyone interested in real estate or in business. Talk Shoppe meets every Wednesday 9A-10A CT at the University of Phoenix 65 Germantown Center 1st floor Cordova, TN. This Wednesday Mary 11th, 2016 Talk Shoppe presents “The New Madrid Fault-Then And Now. What’s The Latest In Earthquake Research.” with Kent Moran, University of Memphis Earthquake Research Center. Talk. Shoppe events are free for the next couple of months thanks to our advertisers like Leah Anne Morse of Cartridge World in Collierville, TN. They have the scientific techniques that make their less expensive recycled ink cartridges work like your factory-made cartridges. (901) 853-3230. Thanks also to Talk Shoppe’s newest financial supporter, Kevin Yee, Save Energy Solutions (901) 492-1649, who can help your allergies by sealing your home’s duct system. For more information about Talk Shoppe, go to www.TalkShoppe.com
2. FOR THIS PODCAST OF REAL ESTATE MORTGAGE SHOPPE AND MORE, GO TO JOGARNER.COM
4. Call me and let’s MAKE YOUR PLAN, WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
5. Tom gives KUDOS! to Bellevue Frayser Church for putting together ministry teams to go out in the community and participate in a clean up project. He invited others to join them.
6. Happy Mother’s Day!!!! Lots of honor and respect go out to mothers for Mother’s Day!
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QUOTE CORNER: Yoda “Do or do not—there is no try”
Luke Skywalker tells Yoda, “I can’t believe it!” Yoda answers, “That is why you fail.”
Yoda “Patience you must have, my padawan”
Yoda “Difficult to see, always in motion is the future.”
Hans Solo “ I’ve got a bad feeling about this”
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Transitional Music: “Theme From Star Wars” by John Williams ; “Memphis” by Johnny Rivers for Look Back Memphis Trivia Contest
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REJOINERS:
9:15 break: Joe Rojas, Elite Team at Fearnley Martin and McDonald (901) 289-5321
9:30 break: Kimberly Miller, ARCH Mortgage Insurance www.archmi.com (615) 424-1500
9:45 break: Marx Sterbcow, Sterbcow Law Firm
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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 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 with the county and state boards of equalization and in valuations of property for tax appeal purposes. (901) 487-6989
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ABOUT JO GARNER-MORTGAGE LOAN OFFICER:
www.JoGarner.com (901) 482 0354 jo@192.232.195.219 twitter @jogarner
Jo describes her job description: “As a mortgage loan officer, my job is to give my client the benefits they want from their financing terms– listening to my client and determine what’s of the most value to THEM– What is their comfort level on a house payment, how much are they comfortable paying down, what type of financing do they need to get the house they 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. Whatever their personal priorities are, my job is to put together a mortgage with comfortable terms that will help them achieve their goals.”
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