Real Estate Financing...

To spout off that we live in an interesting atmosphere in the mortgage lending business is akin to the genius next door proclaiming professional wrestling isn't real.  Yet, I shouldn't even get started on the latter.  And the former is quite diplomatic in the use of the word "interesting" rather than downright perplexing. 

Let's take for example the title of this post.  I get inquiries daily from Realtors, folks reading posts here on AR, fellow tenants in the building we rent, William Shattner, and former clients about the difference in what is said that can be done and what is actually done. 

"But there's no minimum credit score for FHA Loans," the informed consumer proclaims.  Even so, try finding me a lender or bank who will legitamately close and fund an FHA loan with a score below 620 these days and I will find you an episode of Charles in Charge that is remotely interesting.

You'll find similar discrepancies with Fannie Mae Guidelines.  One in particular, is how many mortgages on different properties that can be on credit before they will no longer lend you a dime.  If my facts serve me well, Fannie's Guidelines now allow up to ten.  However, few investors will even allow more than four.

(Of note, my opinion is if you open up the credit flood gates to quality Real Estate Investors, it will help curb what is wrong with the Housing Industry & the Economy... sooner rather than later.  That though, is another post in and of itself)

What we are experiencing is called lender overlays.  The guidelines say one thing, yet you come to find that lender's aren't abiding by that book of thinking.  The guidelines may say this, but the lender or bank says that.  Their pendulum is tending to swing a bit more conservative than the guidelines of Fannie, Freddie, or HUD for that matter.  While I can't rationalize the pool of brain cells planting the seeds for this line of business dealings, these are the facts right now.

The rules being laid out by the so-called "Big Dogs" are being tweaked a bit by the smaller puppies who are lending the money. 

This is an important reality to understand.  Credit Reporting Agencies, Mortgage Insurance Companies, Ballet Classes involving Mario Lopez, & Lender Overlays are wagging the tail of the mortgage industry.  It may not be fair.  It may not be right.  It may not be just.  But this is the hand that's being dealt, learn how to play the cards.

And deal with somebody who knows how to hold them.

Sorry, my first Kenny Rodgers reference of all-time... I believe.

~Of note, this post isn't copyrighted and feel free to copy and paste it wherever you want.  I'm tired of a litigious society of lazy people and frivilous lawsuits.  You want to publish this, go right ahead.  Just try to convince them on a second post that this crap was really yours.~

Jason Sardi

Mortgage Consultant & Fellow Human Being

jsardi@ihmci.com

610-653-0317

nice lead in....

Sometimes I fancy myself a consumer.  Aren't we all?  In those moments, I try not to think of things from a professional standpoint, nor a purely logical one.  Instead, I attempt to understand what I would think of things if I wasn't in this industry and wanted to buy a home... or already owned one and/or wanted to dabble into refinancing it.

I won't mention names because I'm not a fan of lawsuits.  Yet, I've seen subtlety directed commercials from Mortgage Companies "tied" to Government Programs.  I've seen rate sheets in the Sunday Paper that made me spit up blood.  I've seen sales at its worst, marketing at its absolute most desperate.  Creative, yes.  Misleading, damn right.

Shopping for a home loan isn't pixie sticks.  This is damn real.  Not that pixie sticks isn't real, but I'm trying to make an analogy over here:) I believe it's about time we buy the product based upon little things called communication & trust.

I tend to reference my man over at All-State.  That's who holds my Car & Homeowner's Insurance.  When I was shopping around, he was on the list but wasn't the cheapest and didn't bring me donuts upon my arrival.  I was referred to him through a friend.  I went with him, cause he sat down and explained it all... warts and everything of insurance.  To this day, if I have a question or problem... he's on it and gets back to me like an ex-girlfriend who just saw a naked picture of me on youtube. 

These days, with the folks that have survived the proverbial mess that is the mortgage business... most I know are pretty damn good people.  They will take care of you.  That typed, there are always exceptions. 

My point in all this is pretty simple.  Be cynical, be careful, and make sure the guy or gal you are dealing with is genuine.  They should not only know what they are doing, but really care.  If they are churning and burning, you may want to move on.  While sales is an institution based upon volume, rarely immediate glory, I'd much rather play the part of Sam Walton (though I don't think Walmart really represents his true vision) than a fictitious character based upon reality named Gordon Gekko.

Advertising can be a short-cut to thinking.  I understand the concept, especially when it goes National, yet I loathe the directions it can & will take.   

I don't need someone to sell me; I just want someone to tell me the truth of the matter.  It's that simple.  That's sales.

About The Author :  Jason Sardi is somewhat illiterate, somewhat intense, and does mortgages for a living.  He/We also has two cats and another stray that seems to like this abode, which he's thinking he/we should adopt.   Jennifer is a better mother than I am a father, for sure.  They will be in very good hands.  Jason Sardi also hates fine print.  Jason Sardi doesn't like B.S.  Obviously, Mr. Sardi doesn't have a degree in Marketing or direct ties to National Mortgage Companies that pad his wallet.  That's a shame, Mr. Sardi likes a padded wallet.  Hmmm, maybe Mr. Sardi will just run for Political Office.  A suit & tie can make angels of us all.

Oh, forgot the contact info.... jsardi@ihmci.com or on my cell at 610-653-0317.  And remember, no prank calls... unless they are really innovative, original, & witty.

I'm leaving tomorrow for the first family reunion we've had in quite sometime.  I haven't seen my Mother's or Father's side of the family in years.  I'm seeing them both over the weekend, provided that I make it there in once piece.  The only reason I bring up that last sentence is because while I'm not driving, I hate highways and speed on four wheels.  Call it my phobia, my version of Jeff Gordon's antagonist.  Sorry if Mr. Gordon is an out of date reference, but I follow NASCAR about as much as Clay Aikens follows a female into the sack.  Get the drift?  Yup, kind of breezy...

Being one of the younger chaps in the fold, one of the common questions I'm expecting to answer is what I'm doing for a living these days.  Am I doctor?  Am I a lawyer?  How about an Accountant:)  Am I a world renowned proctologist?  Am I teacher?  Am I a preacher?  Am I... no, I'm not.  I'm now a Mortgage Banker.  I used to be a Mortgage Broker.

~The collective sigh may just hush the room~

Most people don't know the difference, especially my folks and most of my relatives who haven't reached puberty in the past ten years.  Bankers were the way to go.  Respected and counted on.  Enter the Mortgage Broker, which is now the maligned entity that did one heck of a job causing all this.

Like my intellect, I'll try to make this very short and sweet.

I won't pretend to sit here, type, and expound on what is the truth or what is not the truth.  What I will do is share my experience since I entered this often heinous gig back in 2001.  Mortgage brokers did some good for a lot of people in their existence and they aren't quite dead yet.  Mortgage bankers have also done some good for a lot of people and their existence seems to be a tad bit more chronic.

Bankers & Brokers were never treated the same because at one point, Brokers held the proverbial Lion's Share of the Market.  When the toilet starting turning brown, the brokers were the ones who were most easily flushed.  The term "Banker" was and still is almost always thought of as more respected than "Broker".

I'm a Mortgage Banker, but I can tell you as a former Mortgage Broker, if/when they put those folks out of biz... options tend to end.  While I'd rather not discuss my trade with my Aunt Lois who is turning 70-years old on a surprise birthday, it will be discussed.  I just hope not to give her nor I a heart attack in the meantime.

Bottom line, what does this mean to you... the consumer?  I don't like it.   The question will remain, do you?  I was forced out of the broker business which made me want to be a Kennedy with a similar liver.  Yet, reality is what it is.  Brokers aren't evil, people are.  Guns don't kill people, people do.  One man's Banker is another man's Pawn Shop.  Gary Coleman doesn't sleep with your ex-wife to just churn out a sex-tape, his agents recommend it to prolong the career.

My guess is that people want more options, not less.  Sure, there was and probably always be incompetence.  But that very incompetence isn't because one is labeled a Banker or a Broker... it is because they may just be INCOMPETENT.

I rest my feelings and thinking on one final note.  Every law that is passed should have the people in mind.  But nevermind the people, it's now law.  Well, I got a nice little link to sing the song that I can't sing...

just click here

My Aunt Lois turns seventy and I love her.  I haven't seen her in years.  With that, she'd probably like this song a tad bit more:)

While I'm a lousy salesman, I'll tell her what I know.  I have a good heart and a bad taste.  I'll stick around until they catch up with eachother.

~Sardi~

Early last month, one of the loans I closed had two interesting variables:

• The client had contacted me via this site over a year ago, starting his plan to buy a home.
• I was introduced to a program that I wasn't astutely familiar with, The Philadelphia Home-Buy-Now Program.

After learning a bit more about it, I thought it was a pretty good idea.  While I didn't know all the facts, some of the philosophies behind this program made perfect sense to me.  The standpoint they come from is one that employees who are homeowners in the city where they work are more productive and are more akin to staying at their jobs for a longer term.  They commute less, spend more time with their families, and even pollute less (I guess it must be that driving thing).  All those points are laid out in some of the information I was perusing about The Philadelphia Home-Buy-Now Program. 

Here's a brief breakdown of how it all works:

Step Numero Uno:  A group of folks from the Program work with the employer and eventually the employees to create a customized program to suit everyone's needs.  The Programs can be tailored for specific neighborhoods, to attract employees in specific professions, and to help match up the best and brightest employees and employers to help enhance the overall health of the community.

Step Two:  When an employee of a company who is a part of the Philadelphia Home-Buy-Now Program sets out to buy a home, that person will be able to count on full support from the staff working with this public/private matching funds program.  The employer can contribute as much as they'd like to their employee's purchase, and then the City of Brotherly Love will match the contribution up to $5,000.00!  In certain cases, private developers will then provide additional matching funds up to $7500.00!!  Those particular cases are dependent on the purchase of homes in select developments.

Step Three:  That's pretty much it.  With an employer's investment of just $5000.00, that may turn into a piece of change equaling $17,500 as an investment that will pay returns to the company, the employee, and of course, the very community of Philadelphia.

There are no income eligibility limits to obtain City matching funds.

Here's a brief list of Philadelphia employers already on board:

Citizens Bank ~ Temple University

Episcopal Community Services ~ Fannie Mae

Germantown Friends School ~ Keystone Mercy Health Plan

NewCourtland Elder Services ~ Saint Joseph's University

University of the Sciences ~ University of Pennsylvania

Some of the areas where homes have been purchased through this program since its implementation in the Fall of 2004 are Chestnut Hill, Fern Rock, Germantown, North Philadelphia, Oak Lane East, West Mount Airy, and West Coast Lane. 

So any potential Homebuyers, Sellers, Realtors, & Employers in the Philadelphia area may want to check this thing out.  Being on the lending side of the transaction that closed last month with this program, I can tell you that the process was pretty streamlined.

For More Information, Visit www.empowermentzone.org/hbn or contact Jim Flaherty at jim.flaherty@phila.gov

Jason Sardi

Mortgage Consultant

610-653-0317

jsardi@ihmci.com

Too often in life, me included, we go through the motions to get what we want.  We don't appreciate what we already have.  Perhaps I'm projecting a bit here, but let me tell a little story.

I grew up good.  I had a nice life back then.  On the cusp of entering my first year of Little League, my Father decided to coach a team called Don Lewis in Clarion, Pennsylvania.  My Father was a great athlete and still is.  He once made a last second shot when our local alumni faced off against some of the Pittsburgh Steelers.  That shot won the game, or so I thought.  I wrote about that once before.  Of course, they turned back the clock so the Steelers could cement victory and save face, yet I look back on that as an introduction to Corporate America.  I understand its place, but I never did like Corporate America.  I love the Steelers, though:)

When my Father decided to coach that Little League Team, I was excited and scared.  I, of course, became a part of that Little League team.  We had talent that year, no doubt about that.  But Don Lewis was never known as being an elite team in our particular area.  We ended up going 18-0 that year.  I suppose I could attribute that to players such as Mr. Doran, Mr. Foster, Mr. Fleming, and maybe even a young kid who tended to be a classic underachiever until something important needed to be done.  My Dad was just as responsible for that, though.  While he knew the sport, knew how to practice and teach it, I believe that his greatest quality was he was fun every step of the way.  And he was loving...

Winning isn't what my Father taught me about.  There's two things I learned in my time back then.  The first thing was when I grabbed a live ball out of mid-air (what some would call a great catch) and that sucker (My Dad) ran onto to the field and lifted me up in the air, giving me a great big hug.  I wasn't wise in those days, but I didn't think that would look so good or professional.  He didn't much care; I was his son.  I was embarrassed back then, but lend a tear to my cheek when I think of it now.  The guy really loves me.

The other thing I learned from those times is when I got hit by a pitch for the first time.  For anyone who hasn't been hit by a baseball flying at you at any speed (in this case, I believe it was about 70 mph), it stings a bit.  I was probably only 12 years old at that time and after I got hit, I went my way to first base.  My Father ran out to the field and I didn't feel much until I looked into his eyes.  There was a bit of concern in there.  That's when I began to cry.  I didn't cry because I was hurt and decades later we both learned physical pain isn't much of a thing to me, but I cried because he was worried and I didn't ever want to see him in that position again.  In hindsight, I think I also cried because he cared enough to worry in the first place.

He has a heart of gold, a heart of gold...

Happy Father's Day, Dad.  I love you with every breath I'll ever take.  And when those breaths stop, I'll love you on the other side.

your son...

Now dance:)

Before I attempt to answer that question, interested readers should know something.  I am a loan officer by trade.  That's what they call us.  I don't particularly like that title, but what's in a name?

I don't get paid an hourly wage or a salary.  If I don't close loans, I don't make a dime.  If I don't make a dime, that means I can't eat, drink, or even sleep if I can't afford to make my mortgage payments.  That's not a sales pitch, that's a reality.  It's in my best interests to close every loan that comes under my wing.  While there are ethics involved to ensure you are doing your client right, if I can offer and do a loan for you that puts you in a better financial situation, I want to close your loan as fast as possible.  It's not only in your best interest, but mine as well.

So why is it taking so freaking long?  Good question.  Here's a few observations on my behalf:

• More volume with less 'able and willing' people to deal with it.  Let's be honest here (I love that line:), the mortgage industry isn't exactly the most attractive line of work to get into now.  To boot, a whole lot have left it.  I'm still here because I'm stubborn and good at what I do.  Plus, I believe you have to go through hell to get to heaven.  Call me selfish, but I think my time here will work out very well in the end.  Even if it doesn't, Economics 101 has us dishing out the phrase, "Too much demand and little in the way of Supply." 
• Front-end incompetence.  If you are searching for a pre-approval from a lender, get the appropriate documents in order before you ever even fill out an application.  If they don't ask you for such documents, they may have more ties than me.  Either that, or the final result won't be what they promised.  Do yourself a favor, get your W-2's, pay-stubs, bank statements, etc, in order.  If your loan officer doesn't ask for it immediately, ask them why they don't need them.  That will put a spark up their ass.
• Changes.  This is a tough one.  It's hard to tell someone who is a completely competent borrower, why the area they are in or the house they chose isn't on the "I love to lend in" realm.  The only real advice I have on this one is if you are dealing with someone you trust, they will get you through the current bullshit that is going on.
• They just don't like you.  Well, we live in a society where that is not acceptable.  Folks actually look at your loan, but you aren't nearly as personal to them as you would like.  I work for a relatively small company and see that.  I can only imagine what working for a large one would entail.  Work with an individual that you trust, that you can reach out to and at least communicate with.  There is a common thing with that, you both share the same self-interests.  He/She gets paid only if your loan closes.  You only get what you desired after paying for an appraisal, maybe an inspection or two, and actually being able to be comfortable within the confines of a few walls that aren't labeled as "Prison".
• The Government.  Now, I really don't want to wax political or get involved in any sort of debate about policy, parties, or general ideology.  But I already have since mentioning this.  We don't need the Government in this Private Sector.  We didn't need them back then; we don't need them now.  Those of us (I include myself because frankly, this is my business) who know the Real Estate Industry also know how it is to be corrected.  Let's demonstrate how we will make sure such an extreme reaction to market won't happen again.  It's a cycle, learn to ride.

We'll reach those Golden Years, but it takes work and patience.  Why is it taking so long for your loan to close?  Because this ain't a pay-day loan, this is a roof over your head.  Maybe this is the opposite extreme of giving everyone with a pulse a mortgage, yet you know what they I say about extremes... "They are to be avoided."

AFTER soaking in the smells and sounds of New York City yesterday, Jennifer and I arrived home.  For me, I was just relieved to get out of the freaking car.  You see, me and highways don't get along too well.  In fact, even being on the highway gives me more anxiety than watching a Dustin Diamond sex tape.  I digress, though.

WE hadn't been to our local watering hole for quite some time.  So we ventured out into the beautiful weather of Allentown and walked over to Stahley's.  When we arrived, the first person to greet me was John, one of the owners and bartenders.  In a deep, raspy, Randy "Macho" Man-style voice, he asked me, "Hey J, what's the interest rate?"

HAD I not been friendly with Mr. John, I would have been a smart alleck and replied, "8% with three points and a blood sample" just to make things interesting.  But I told him.

DINNER and drinks were had and I got to thinking.  Drinking and thinking don't always go hand in hand, but things were a bit different in this case.  A lot of us in the Mortgage Industry despise the "rate question" because, well, for a lot reasons.  The factors that go into determining what interest rate you will be paying are plenty.  I've even written in the past that it isn't the wisest of questions to ask from the get go.  I had a sort of epiphany, actually more like a quasi-epiphany, but it was an epiphany.  For the record, I think that is the only time I've used the word "epiphany" three times in one sentence.  Anyway, when John asked me that question I actually considered it a good thing.  But why?

I have been in this business eight years.  They have been eight very interesting years.  Highs, lows, and a whole bunch in between.  One of the most sage pieces of wisdom ever dispensed to me was, "Make everyone aware of what you do for a living."  John is aware.  In fact, another bartender there came up to me and we waxed intellectual about the housing industry in general, the economy, and women's lingerie.  Okay, so the latter didn't happen.  Walls of words need a few sentences of interest if they are to be read in their entirety:)

"FELL" is a curious term, at least to me when talking about being in love with what you do.  But I have.  I really love what I do and I find myself more than willing to talk about it every chance I get.  It hasn't always been the easiest living in the world, yet I could be a taxi driver in New York City.  That would be interesting.  If you know me, imagine me driving a cab in New York City.  That could turn into one heck of a reality series.  I probably wouldn't be around long enough to reap the rewards though, as heart attacks tend to be bad for one's health.

IN living this life, there are reminders.  John's question was a reminder to me and maybe for some folks reading.  Never be afraid to let folks know what you do for a living.

LOVE seems to be the opposite of hate.  I've loved my job and hated my job.  I'm pretty sure all of us have felt that way.  But I love my job just enough to never be afraid to spout what I do to the masses.  Last night I handed out my business cards like they were Philly Cheese Steaks at the Eagles opener.  John is buying a house before the Tax Credit goes bye-bye.  I wonder who he is going to call.

~~~~~~~

About the author:  Jason Sardi loathes driving.  Jason also isn't the biggest fan of driving and will fight to the death in ever stepping foot in a car whose destination is the Autobahn.  But Jason Sardi loves the Mortgage Biz and is more than willing to help and educate to the best of his ability.  His area of service include PA, NJ, NY, CT, DE, MD, VA, SC, FL, MI and IN.  Mr. Sardi can be reached toll free at 1-866-262-8720 ext. 229 or on his cell at 610-653-0317.  If email suits your soul, contact at jsardi@ihmci.com.

*  *  *

By the way, if you mention this blog and I close your loan, drinks are on me at Stahley's.  Germany is out;)

This post, in part, was inspired by my friend JL Boney.  His sarcastic piece of script was asking why one should wait to buy in this market.  Let this particular piece be not a wake up a call or a call to action, but a simple reminder.  There are options, explore them.

The Top 10 Reasons to not use that 100% USDA Product:

• You can borrow 100% of the appraisal amount plus the guarantee fee (approximately 102% financing).  It's not an uncommon occurrence for the applicant to be able to include all or most of the closing costs within the loan.  I've been a big advocate of having money in the bank after closing for any costs that occur once you own the home, yet isn't it easier to have money (that you could be investing, at even the lowest returns) and save it by not making a down payment?  After all, borrowing others people's money doesn't make sense at all, especially when you can invest yours instead.

• Most of the closing costs may be included in the loan amount, if justified by the appraisal.  Or you can chose to spend every last dime you have on a down payment and closing costs!

• No private mortgage insurance necessary.  This actually makes your monthly payment lower.  But frankly, who wants that?  Besides, mortgage insurance is our friend;)

• The processing on these loans is done by local lenders.  There's no need to let local folks see up your skirt when you can spread your financial legs to a National Lender whose awareness of your community is akin to Charlie Sheen's awareness of fidelity. 

• Repayment Ratios are somewhat Liberal.  Compensating factors such as (credit score, rent payment history, cash reserves, ongoing increases in wages) are all factors.  Common sense doesn't figure into the rationale for lending these days, though.  Ignore that stuff.  Common sense is no longer a part of lending.

• Whether they be new or existing homes, many qualify in areas across the country.  "Rural" may not be what you think it is, as defined by the USDA.  Sure, we are rural in some areas, but don't let that fool you... this is about lending on a piece of land that cows can graze and consume with acreages that would make Jed Clampit blush.  If you don't live on a farm, you can't get this loan.

• If you are of moderate income, you are in like sin.  But who in their right mind that has moderate income wants 100% financing? 

• Low fixed rates with that 100% financing!  Ugh, most folks want to pay out their ears in down payment money to get a low rate.  Right?

• Hire a good Realtor.  Why?  Heck, there is no limit to seller's contribution if done that way.   Your Realtor can help you negotiate this. Check with your funding source/lender and their particular overlay (meaning that government guidelines are what they are, yet the lenders making these loans may not always follow these guidelines to T).  Or, take the alternative route and save thousands of dollars by not hiring a Realtor and doing it yourself.  I mean, how hard could it be?

• One of the best Mortgage Deals across this Nation is awaiting.  But who needs a great mortgage deal when cash is flowing through your accounts like beer through a tap at a keg party.  I know, yet another alcohol reference.  Speaking of which, it's 7:22 and I just got home an hour ago.  Time to open the old adult malt beverage.

~  Jason Sardi is a Mortgage Consultant licensed throughout many states on the East Coast.  While having no Best Sellers to his name, he's really a decent chap for all intensive purposes.  By email, Sardiman can be reached at jsardi@ihmci.com.  By phone, he can be reached directly at 610-653-0317.  Don't you just love when folks talk in the third person?~

"I went to the woods because I wanted to live deliberately. I wanted to live deep and suck out all the marrow of life." ~ Henry David Thoreau

It was one of the first loans I closed.  A "Yellow Page" lead came a calling and I was there to answer.  The gentlemen on the other line was looking to buy his Mother's home.  We hit it off, more than just a day to day client/consumer connection.  I'll always be thankful for that.

A few months back, he called me wanting to refinance his home.  He was looking to get a bit of cash-out and lower his interest rate.  We were just about clear to close (the three magic words in the Mortgage Biz) and I had left him a message on his cell phone.  I didn't hear back for about a week.  That was unlike him.  So, being the persistent chap that I can be, I called again.  He answered this time.  He told me that he just found out that he had three months to live.

I must admit that I didn't quite know what to say.  No encouraging words or enlightening thoughts were conveyed from my lips to his ear.  I was comfortably dumb at that moment in time.

This past Friday I called his cell phone just to see how he was doing.  It was disconnected.  So, I called his home phone.  His wife got on the line and I asked how he was doing.  "Sweetheart, he died Tuesday," she said.

I also found out earlier this week that a close friend of one my best friends passed away at a very young age.  That kind of stuff tends to make one think or re-think this here life.

Death, to my knowledge, is inevitable.  I'm cool with that.  But how many reminders, constant reminders, do I need... to live every damn moment with every scope of my being?  Shoot, there's a lot that goes into this existence (family, finances, friends, imperfections, etc), yet I hope not that I learned from this one... but I actually live what I learned.

Life is precious and is the only thing all of us are experiencing together until the inevitable happens.  I have no need or desire to go "Tony Robbins" on anybody's posterior, but my own.  For me, tears wield a vicious sword of truth.  The truth is, I want to make every moment count.  I just need to make sure that my written words are actually lived, rather than a false document of my life.

Perhaps you've been throwing around the idea of entering into the wonderful world of buying a home.  Maybe you've even came across a house that not only tickled your fancy, but left that euphoric taste of bliss running through your bones.  Either way, probably the most important thing you can do is to become educated.  From there, there's one place to start... Behold, The Basics:

• Cash isn't necessarily King.  If you are paying rent, pay it on time and do so by check.  That's a documented housing history.  Any applicable down payment you have has to be sourced from the banking institution with whom holds your depositories.  Documentation is one of the important things lenders look for these days.  So, if you are slinging crack in the alleys in your spare time, instead of putting that money in a jar beside your bed... put it in the bank.  Of note, I don't endorse slinging crack.  I just endorse documenting your rental history and funds that you have to come to the table with to close.
• Before even traveling down the road of tangibly looking to buy a home, know what your credit score is before making any decisions.  In the current lending atmosphere, your credit score has never been more important.  Here's a link to help you get a grasp on the importance of credit in borrowing money in general, let alone to buy a home. 
• Don't be Mortgage Poor.  Many times you are pre-approved for X amount of dollars because on paper, that is what the lender deems "affordable" in your world.  There's one small problem with that, the lender doesn't live in your world... You Do!  Sit down and go over your monthly expenses (utilities, credit cards, student loans, car payments, insurance, groceries, any vices you like to partake in, etc) and come to an understanding of what type of payment is comfortable for you.  And don't forget to figure in the taxes, home owner's insurance, and PMI/MIP (if applicable) along the way.  Your Mortgage Professional can help you with that.  By the way, I'm a Mortgage Professional and enjoy helping:)
• A Tax Advisor can be your friend.  While I realize that the words 'tax' and 'friend' are strange bedfellows in the same sentence, read on.  A lot of you folks may have heard about the tax credit for home buyers and for those who haven't, remove the rock and continue reading.  First-time home buyers (includes folks who have not owned a property for at least three years) qualify for a tax credit of up to $8,000 if purchasing a home before December 1st, 2009.  As long as it's owner-occupied for at least three years, that credit does not have to repaid.  If that doesn't give you enough incentive, all homeowners qualify for tax credits for various home energy efficiency improvements throughout 2009!
• Hire a Buyer's Agent.  They represent you and you alone.  It doesn't cost you a dime and you can be relatively certain that your best interests will be at the forefront of your Agent's heart.  Buying a home doesn't have to be complex, a Buyer's Agent can make your life and the transaction so much easier.
• Get a Home Inspection.  A lot of lenders don't require it (whereas they require an appraisal) but a Home Inspection could very well save you a bundle of money down the road.  Imagine for a second you just bought a home and the boiler breaks down, the roof starts to leak, the electrical system takes a dump, etc... all could have been avoided with an initial Home Inspection.  Consult your Buyer's Agent to see if getting a Home Inspection is the right thing to do for you.
• With the large amount of inventory on the market, you may find a lot of homes that need some work.  The condition of some of these properties may be such that Conventional Financing of any sort is just not possible.  No worries, though.  A great product to utilize in these cases is the FHA 203(K) Loan.
• Once you are pre-approved and have a signed sales agreement, don't apply for any additional credit at all.  While I'm aware that many folks want plush and extravagant furniture to accentuate the decor of their home, do not start buying anything on credit until after your loan closes.  Applying for credit of any kind in the thralls of the transaction could adversely affect your credit scores, disrupt your debt ratio, and even flat-line the transaction all together.
• If you have questions, ask them.  I don't care how mundane you think they are, ask.  The only stupid question is silence when one is on the tip of your tongue. 

There are many ways to save money when buying a home.  You can look for the best interest rate, lowest fees, have your Cousin Al become a Loan Officer so you can get a Family Discount, etc.  Yet, the one way you can save maybe the most money is to become as educated as you can going forward.  Seek out quality education, don't count on it to always seek out you.

Jason Sardi

"Your Friendly Neighborhood" Mortgage Consultant

610-653-0317

jsardi@ihmci.com