Set a Plate at the Table for ME!

PreQualification. How to do it and why you should.

If you are interested in buying a home, whether it is your first home or your 10th, it is important to know what your purchase power is. So if you are considering a buying a home the first stop on your journey is with your lender.

A PreQualification can be done in less than 30 minutes. It involves actually filling out an application and a credit review by your mortgage loan officer. You will be asked for your complete contact information, residential history, employment history, assets, liabilities, any real estate owned (reo),

whether or not you plan to live in the property, who will be on the title, and a few personal questions about your ethnicity and race. It can feel invasive and overwhelming. Make sure you are comfortable disclosing all of this information. Be aware that sometimes your answers can generate more questions. Everything you tell your loan officer will be third party verified.

I always tell my clients to set a plate at the table for me because we are about to be family.

The items that you discuss with your loan officer will give him/her a high level overview of your financial picture. A loan officer can look at the information that you have given and make a quick determination on whether or not you COULD BE APPROVED.

At this point, the loan officer will give you a PreQualification Letter so that your Realtor can submit it with a contract offer on a property. Realtors and sellers will often ask for this letter so that they can have some assurance that you have at least talked to a lender.

THIS DOES NOT MEAN THAT YOU ARE APPROVED FOR A LOAN!

It simply means that you could potentially be approved for the loan once all of your supporting documentation has been submitted and ultimately reviewed by an underwriter. A PreQualification letter can secure a rate for you up to 120 days while you are shopping for a home. However, you are still subject to an underwriting review.

Know your purchase power. Be transparent with your loan officer. Your loan officer is going to be involved in every aspect of your financial life throughout the process. Your loan officer is going to guide you through an often overwhelming, complicated, journey. Let them, lean on them.

Your loan officer is your family now. Set them a plate at the table.

Stop Daydreaming and DO IT!! Your Summer renovation…

Welcome to SUMMERRR!!!! It is the perfect time for fun in the sun, vacations with family and friends, and....RENOVATIONS!

When the weather is nice is a perfect time to start those home renovations that you talked about all winter. Need a new roof? Want a garage? Must have stainless and granite in the kitchen? Well, Let's talk about it.

Like anything else, these things start with a daydream…………..


HEY! Sorry to interrupt your dream but how are you going to pay for it???

So, let me tell you what prompted me to write this. I was watching one of my favorite shows on HGTV, Property Brothers. Who else watches this show?? Hold for my short review….

This show is pure real estate brilliance. There is no prize, no gimmicks, just pure real estate. It is 2 brothers, (who are both VERY handsome). One is a real estate agent and the other is a builder. The premise of the show is these two brothers take the buyer's wish list and show them a finished home that they fall in love with. INEVITABLY, it is always outside of the buyers budget.
THEN they show them three other homes that need some TLC. Through the magic of architectural software they show the buyers how their wish list can be customized to each home and let the buyer choose.
Property Brothers depicts Drew Scott as a super skilled agent, handling every concern of the buyers with finesse and Jonathan is a project manager extraordinaire, considering how stressful it is to deal with the buyers. As always, there is a happy ending when the show winds up with blissful homeowners and the Scott brothers are satisfied with a job well done. I love this show.

1. Drew Scott is the epitome of a skilled agent.
2. Jonathan Scott is the epitome of a skilled carpenter and project manager.
3. I love that they convince the buyers to rehab unloved properties. They are helping neighborhoods and communites. I am a believer.
4. They are uber handsome.
5. And I love the modern designs they come up with. Not sure who is the driving force on that but the homes always turn out beautiful.

Ok. So I was gobbling up this show not too long ago, and it occurred to me; How and Who is paying for these beautiful renovations?? My mortgage brain is going 90mph just thinking of the ways is could be done. So, I asked.

The question:

@PropertyBrother how are those renovations financed? Reno mortgage? HELOC post closing? cash on hand? #curious

The response: from @MrDrewScott

@lenderdawn every @PropertyBrother episode is different. Depends on the homeowners situation. Some use savings, others finance, some borrow

Fantastic! All options were on the table and those options are available to you as well. So let's chat.

There are renovation mortgages are available for refinancing and purchasing. If you already own the property, you can add your renovations into the refinance as long as it is a permanent fixture and adds value to the property. So if you want that new kitchen, do it!

Also, with a purchase, you find a property that has great bones but needs updating, buy it! If you have vision and can see a pool in the back yard, or a finished basement man-cave, do it!

If you would like to access the existing equity in your property with a Home Equity Line of Credit, (HELOC), you can use those funds like a credit card. Use what you need and only pay on what you owe. This loan is pretty easy to originate, however, you won't get the tax breaks.

And, of course, if you have savings on hand and want to pour it back into your property, do it. There is no better investment than real estate.

There are lots of options. Your lender, (me), will be able to school you on all of it.

As always, if you have a question about real estate, just ask.
@lenderdawn
realtalkaboutrealestate@gmail.com

Demystifying VA Loans

Happy July!

In this month of celebrating our freedom and those who make sure it stays intact, this is the least I can do to honor those in service to our great country. In whatever way you can honor those members, do it. They deserve it more than anyone I know. They have the most hazardous, rigorous, stressful jobs on the planet. Give back to them. In the smallest of ways, I can give this back.

 So I am gonna break it down for you.

What is it?

A mortgage loan for the purpose of purchase or refinance of a primary property. The funds from a VA loan do not really come from the VA, (Veterans Administration). Lenders, (like myself :)), extend a loan to the borrower according to the all of the requirements set forth by the VA. As long as the borrower and property meet the requirements, the VA, basically, insures the loan for the actual lender of the money. Make sense?

Who is eligible?

• Active Duty Military
• Veterans
• Reservists and National Guard members
• Spouses of military

Do you meet this requirement? Check that box!

How do you get a VA Loan? 

•  Apply with your favorite neighborhood lender. Be prepared with your Certificate of Eligibilty, (COE), and your Discharge papers, (DD214). These are accessible through the VA website or I can certainly help you get it. 
• Or you can help yourself here: I NEED MY COE!

What are the benefits of a VA loan? Does it matter? 

• Yes, it matters. This loan allows you to purchase a home with NO DOWN PAYMENT! Yep. I said it. 100% financing.

• It is the only loan that allows you to purchase or refi up 100% of the value of the home… WITHOUT MORTGAGE INSURANCE! That is a BIG DEAL. I will do a whole separate posting about mortgage insurance, however, just know that in this case, it saves you MONEY $$$!!!

• The VA, kind of in lieu of mortgage insurance, charges a Funding Fee. It is a one time fee that can either be financed into the loan or paid as part of the closing costs. 

• No Pre-Payment penalty

• It is assumable. This means that you can procedurally and legally transfer this mortgage to another qualified buyer. 

• Rates are generally lower than the conventional mortgage rates. 

• This loan is available in 30 yr, 20yr, 15yr, 3ARM, 5ARM, and 7ARM.

• You can PAY OFF DEBT at closing to qualify for this loan! How crazy is that?

As with any loan program you still have to qualify as a borrower. Most of the qualifying parameters are similar to other loans. there is some forgiveness in terms of debt to income ratio and credit score. 

Some of the things you should know. 

The property has to evaluated by a VA certified appraiser. For the borrower this is great news. If this is a purchase then you have a contractual option to get out of the loan if the property does not appraise for the contract value, (or pay the difference). 

There are loan limits per county, as well as some concentrated areas. These limits are based on the housing market in your area. Your lender will know.

So, I really urge you to talk to a lender if you think you are eligible. This is the best mortgage loan out there. Some things the government gets right and this is one of them. Making housing accessible to service members and their families is a huge deal. Take advantage of it.