Real Estate Financing...

Sometimes the best laid plans go unplanned.  Before Jennifer moved in with me, she visited a few months earlier.  On our way to pick up some mundane cleaning supplies, we accidently came across The Allentown Farmer's Market.  Now, despite living here since the tender age of twenty-four, I'd never been there.  Okay, so I don't get out much.

We decided to peruse this uncharted territory and had a freaking blast!  We both fell in love with the place.  We go there almost every week. 

One place stood out above all the others.  Clover Farm's has a stand there selling some of the highest quality meats I've ever had a chance to chow down.  While I may not get out much, I've had my fair share of high quality cuisine, working at a few dining restaurants before entering the wonderful world of mortgages.

I wrote that Clover Farm's stands out.  And I mean it.  One of the main reasons for this has to be this guy.  When God handed out personalities, he/she went the extra mile with Mr. David.  This chap has more personality in his pinky finger than most folks have when popping poppy seeds.  And he knows his meat (avoid perverted takes on that comment until a later date;)

While I'd love to list some of the wonderful menu items, I will let the pictures speak for themselves.

And here's a buddy of mine from my bachelor days, when I climbed trees, scaled fences, and spent way too much money at the locally watering hole.

To pre-order any of the fine feasts that can be had, contact David at 610-751-4211.  And if you still have money left over to buy a home, contact yours truly at 610-653-0317 or email me at jsardi@ihmci.com.

For a zen look into romantic bliss, see below:)

If you answered with a resounding "YES" to that question, you aren't alone.  I can't think of many sane individuals who don't want the best deal possible, and when the word "free" is mentioned... people tend to flock in interest like the George Foreman family to a Bobby Flay BBQ.  While it seems the path of least resistance, to jump at what appears to be the least (or no) amount of money for a service rendered or product delivered... it most times ends up the path of greatest disappointment.

Such is life...

Back in some of my more naive years, I used to think that when my parents offered up the timeless cliche "you get what you pay for" that the very slogan they were spouting was probably conjured up by some individual(s) who just wanted to soak up every bit of money they could from unsuspecting folks who needed their product and/or service.  Then my naive nature awoke to a staunch reality.  There may be something to that.

The Mortgage Business is an interesting one, for sure.  We compete on many levels (service, lowest rate, lowest fees, name brand, delivery, reputation, marketing, etc) but it is no more interesting than most businesses who compete on similar levels.  Let me digress:

• Have you ever purchased anything from an infomercial you saw on television?  Come on, be honest.  Okay then, I have.  I'll put it this way, there won't be any testimonials airing anytime soon from yours truly on how I became a multi-millionaire while sitting and sipping cocoa in my underwear from the confines of my humble abode.

Perhaps that isn't the best example in the world, yet I think it drives home another age old point of view... "If it sounds too good to be true, it probably is."  That written, here's a few Marketing Gems you've probably seen, or things you've said you wanted from the Mortgage Industry that may not be all they are cracked up to represent - or, you were just smart to ask for in the first place:

• No Closing Costs and/or No Fee Mortgage Loans!  I've never offered this product.  That certainly doesn't mean it is bad; I just am unable to offer it.  What it means for you as a consumer is that you'll see a much higher interest rate than the ones the market is currently bearing.  Does it make sense?  That depends on your situation, frankly.  For me, the longer I plan on staying in my home, the lower I want my interest rate to be.  If I don't want to pay points of any kind, I should expect a higher rate.  The profits are being made somewhere.  On no closing cost, no point loans, those profits are on the back-end... in the form of a higher, sometimes much higher, interest rate.
• I want your lowest rate with no fees.  Have you ever called a Mortgage Company or Bank and said that?  If you have, you aren't getting the lowest rate.  End of story.
• I'm going to log on to Zillow.Com or BankRate.Com and get the best quote possible!  It's called low-ball offers, folks.  The honest ones are typically disclosing at a more expensive pace.  You'll probably (from the low-ballers) be getting quotes on 15-day locks (not done nearly as much as you would think, for a variety of reasons) instead of 30 or 60 day locks... which are more realistic, especially in this market.  To boot, you may get a version of the bait and switch when you contact that sweet quote and hear that, "Rates change daily, the quote I gave you isn't available as I disclosed."  The fact is rates DO change daily, no question about that.  Yet, using that to draw in phone calls and emails isn't somebody I want to work with.  That's just me.  We all make money, as a consumer... I just want a fair shake.
• No Application Fee!  First off, I don't believe in application fees at all unless they are applied to paying for the appraisal or refunded if your loan doesn't close.  I have a very simple philosophy here, if your loan doesn't close... nobody should be making a dime off of you.  If I had charged for every application I have taken in the past eight years, I'd be sipping martini's with Gene Hackman in the Cayman Islands.  Sorry, just wanted to work in a reference to the film, "The Firm."
• Does your town or city get a Sunday paper?  Mine does.  There's a section where Mortgage Companies and Banks advertise rates.  I'm not sure about areas outside of Allentown, Pennsylvania... but we used to advertise in there every week.  Our advertisement was due by Wednesday and came out Sunday.  Is there something wrong with that picture?  Yup.  Rates could have changed, sometimes significantly, on Thursday or Friday.  So of course you get rates that may or may not even be relevant when you turn to that section on any given Sunday. 

For what it is worth, my advice is as follows when shopping for a mortgage to buy or refinance a home:

• Reputation, Education, Price.  While I wouldn't recommend taking the most expensive deal in town, I don't think it is a splendid idea to jump at the cheapest either.  If you want a free loan, hit up Aunt Mary and stiff her while trying to live with yourself.  You won't find it in lending institutions of any kind.  As long as it takes money to buy things, profits and personal income need to be made to survive and thrive.  And for God's Sake, make sure they are prone to calling and/or emailing you back in a very timely manner.  If days go by, tell them buh-bye!

Jason Sardi is a human being involved in the Mortgage Industry.  Other than being a former star on an undefeated Little League Team, hitting the winning shot "Chip Hilton" style in a high school basketball game to defeat the best team in the league, he has also made a prominent (in the day) high school wrestler who just competed in the Olympic Try-Outs tap out in less than two minutes.  Come to think of it, maybe that's why that wrestler didn't make the team. 

I can be reached via email at jsardi@ihmci.com or on my cell phone @ 610-653-0317. 

In case some of you haven't been informed, 100% is alive and well in the financing side of the Mortgage World.  Let not the rumors of their demise mislead you. VA (for those who have served our country) and USDA (Rural Development 502 Guaranteed Housing Loan Program) are becoming more and more important for certain borrowers and areas.  I shall concentrate on the latter, giving you a snap shot of the advantages of seeking a USDA Loan.

• First off, there is no down payment required.  Indeed, I'm master of the obvious:)
• There is NO Mortgage Insurance.  Unlike FHA & Conventional Loans, this product doesn't require Mortgage Insurance of any kind!
• No Cash Reserves Required.  What that means is that you don't have to have money in the bank or in any sort of retirement account after closing.  That written, I'm personally a big fan of reserves.  Why?  Hey, once you buy a home and something goes wrong (inevitably, it will) the financial responsibility of fixing it lies with you.
• No pre-payment penalty.  Actually, the majority of loans in this atmosphere don't have a pre-payment penalty.  So, if you hit it big at the casino or win the lottery, feel free to pay your house off in full without incurring any penalty whatsoever.  Then again, if you win that type of money, you may want to keep the mortgage for purposes of a tax write-off:)  Of note, I'm not an accountant.  And I don't play one on television.  I majored in it when I first went to College, but quickly opted for psychology... as accounting bored the snot out of my nostrils.
• No First Time Homebuyer Requirement.  There are no special classes to take or education to go through prior to closing.  I do though, strongly recommend doing your due diligence (your Mortgage Guy or Gal should help you with this) and educating yourself to not only become a homeowner, but a smart homeowner.
• New and Existing Homes OK!
• No Seller Contribution Limit.  The Seller can literally pay ALL of your closing costs.
• 100% gifted closing costs is acceptable.  If you have a kind and financially capable relative, they can flip the bill for all your closing costs.
• It is a fully amortized 30-year fixed rate loan.  It isn't some complicated Interest-Only, Pick a payment, pied-piper pecking Peter type of loan.  It's pretty simple.  Each monthly payment you make pays down your interest & your principle balance.
• Loan amount can include closing costs and repairs up to 102% of the appraised value. 

Folks, this can be a great product for a lot of people in applicable areas throughout our Nation.  It's still not known about by a lot of people... and individuals in the Real Estate Industry.  This is just a brief overview.  With any further questions, contact yours truly, Jason Sardi@ jsardi@ihmci.com or give me a ring Toll Free at 1-866-262-8720.  Have a wonderful weekend and remember, if you have financing questions and are in doubt... give that Sardi character a shout:)  If I don't know the answer, I'll find it out.

Whether you are buying a home or refinancing the one you already own, there are steps you can take to avoid unnecessary problems as the transaction gets to closing.  While it is important your chosen loan officer (read->Me;) helps to educate you on these, doing your due diligence before hand is rarely a bad idea.  Here's some food for thought:

• If you are required to bring money to the table, make sure you have enough money in your account to do so.  Also, lenders & banks often require that funds to close a loan are seasoned and sourced.  This simply means that they want to know where it is coming from and how long it has been available.  Generally speaking, they want to make sure that it has been available at least 60 days.  As far as the source of the money, your bank account is acceptable.  Your mattress is not. 

• Don't be moving large amounts of money around.  Any irregular deposits being made that don't jive with your regular banking habits may put up a red flag.  That red flag would then have to be explained. 

• While you may want to buy furniture, that gorgeous new car, or the newest vacuum cleaner from Dyson, avoid any large purchases prior to your loan being closed.  If we have to re-verify your credit and another debt shows up that didn't at the time of the initial approval, it could kill the deal and your dream.

• If your loan approval requires you to pay off bills or back debt, DO NOT PAY THEM YOURSELF, CONTINUE TO MAKE ROUTINE PAYMENTS UNTIL YOUR LOAN CLOSES.   Just gather the most current monthly statements or most recent statement on a bad debt and get them to your loan officer.   That way the Title Company and Lender can make sure the debt is paid off in full. 

• If there is any change in your employment, notify your lender immediately!  While you may dislike your wise-ass boss or the people you work with, do not quit your job.  You can quit after the loan closes.  Then again, you'll need some source of income to pay your mortgage so don't quit your job (after the loan closes) until you have another lined up.

• Don't apply for any type of additional credit until your loan closes.

• Do not open or close any accounts you currently have on your credit.  Of note, closing an account that you have paid on time is not generally regarded as being too healthy for your credit score.

• Continue to make ALL of your payments as agreed, especially your mortgage even when you are refinancing your loan.  If your loan officer ever tells you not to make your mortgage payment, disobey that incompetent entity and find a new loan officer.  The only exception to this is if your loan is clear to close and your signing the papers the next day.  If you make any extra payments to your mortgage before closing, they will be applied to your pay-off or refunded to you from your former mortgage company.

• If your loan officer asks for documentation, they probably need it.  While you can question why they need it all day long, it is counter-productive to the common goal... your loan closing.

• This last piece of advice is one for anybody wanting to get pre-approved to buy a home.  Your loan officer will take a full application and run your credit and probably issue you a pre-approval for such and such amount of money to buy a home.  Do everyone involved a favor, supply all supporting documentation (pay-stubs, W-2's, bank statements, etc) as soon as possible.  That's a real pre-approval, my friends.  Sorry, I just had a John McCain moment:)  I see quite often that folks mistake what they actually make in income or have in the bank account.  If you supply them with everything, the full story is there.  When you supply the full story, it makes the lending decision easier to fund your book.

Make homeownership a wonderful dream, nightmares are better left to film and certain parts of the imagination.

Jason Sardi

Mortgage Consultant

Infinity Home Mortgage Company, Inc

Toll Free @ 1-866-262-8720 ext. 229

jsardi@ihmci.com (and think twice before you spam me, I can be deadly with words;)

If you are going to boogie, learn to dance. 

As many of you know, the Mortgage Market is changing faster than Tom Welling's Superman character into his "get-up" in the television show, Smallville.  It's truly a jungle out there and you'll need a Machete, Cargo Field Pants, and the proper Guide to navigate you through the ever growing foliage.  As a guide in the jungle that is the Mortgage Industry, I wanted to give some simple bits of information to arm you on your journey.

In no particular order, please take note of the following as they may be pertinent along your travels:

• As of April 1st, 2009, FHA will reduce the LTV's (loan amount compared to the value of your home) on cash-out transactions.  It currently is 95% but that will be cut back to 85% real soon.  To ensure you can get in before the guideline changes, an appraisal case number must be assigned to your home before said date.
• 100% Financing is still available!  Yet, the only two products currently sporting this popular product are VA & USDA Loans.  For more information and shameless self-promotion on the latter, click here.  Might I add that if you are going to utilize 100% Financing, try to ensure you have money in the bank after the fact.  Being a homeowner bears certain responsibilities.  God forbid something goes wrong and you don't have Lenny The Landlord to fix the issue.  You don't when you own a home.  The responsibility falls on you.
• Know your Credit Score.  I can't stress how important that is these days.  I got word from one investor today who has changed their minimum credit score on ALL Mortgage Products to 660.  Most are at 620.  A few still may go below that but proceed with caution.  Know the rules and learn to use them to your advantage.  For more extensive insight on Credit, grab that mouse and left click right here.
• Pay close attention to what homes like yours are selling for (not just being listed for) in your area.  That's a good indicator of what your home is currently worth in this market.
• While the media may give you the heads up in the drop in interest rates, contact your Mortgage Professional to get the real scoop.  Taking the anchor of CNN's advice on where Mortgage Rates are at are akin to asking me what the weather will be like tomorrow.  By the way, you can expect a balmy day with hints of fog glazing the ides of morning... turning into a slightly breezy, overcast, but generally nice day.  High will be 99 Degrees.  Low will be -20.  But don't quote me on that.
• If you are considering buying a home in the least bit, be aware of the First-Time Homebuyer Tax Credit.  It could prove to be another incentive (in addition to low interest rates and a large amount of inventory) to take that next step in owning your own home.  It isn't a reason in of itself, yet it is icing on what could be a very delicious piece of cake.

I will be writing about five more useful tips very soon.  I wanted to keep this short and sweet, like Ryan Seacrest:)  Besides, you only have so much time on your hands while you sift your way through this jungle.

And if you aren't already a homeowner, you may want to take that leap.  If you have the right Guide, you aren't just drawing on faith when you are in mid-air.

About The Author:  Jason Sardi has been on the lending side of the Real Estate Business for over eight years.  His passion for helping people and general disdain for con-artist blowhards has kept him trying to do right by as many people as possible along the merry way.  You can reach this happy chap by email @ jsardi@ihmci.com or by phone @ 610-439-2166 ext. 229.  He's a survivor in that jungle out there and has the scars to prove it:)

Want a snapshot of what is available out there right now in regards to Mortgage Products?  Jeff Belonger supplies us with a strong post that identifies the array of Mortgage Products present for a variety of different scenarios and situations.  And who said lending was dead;)

I came across a link recently on facebook that my biggest supporter, loving fan, brother from another mother, buddy of mine Dan Cummings posted.

In actually sharing it, I was a tad hesitant.  As a matter of public record, I have mixed feelings on it.  While the concept holds a ton of merit in my opinion and from what I've gathered from those who have been in this industry much longer than I; there is a strong part of me that doesn't particularly like loopholes.  Without further ado, here's the link.

Let me add that I'm heavy on personal responsibility.  Let me also throw in that all the blame that has been thrown around pointed at this reason and that reason can probably also be pointed in the mirror we look into every now and again.  The tactic described in that news story of "Produce The Note" is a clever way of using the system to your advantage.  God knows the system has used us to their advantage.  What's fair is fair, right?  Well, I don't really like to look at things like that.  Actually, sometimes I do:)  But let's get rational here...

Yes, there is a lot of wrongs in this world.  There always will be.  Yes, there are a lot of folks who will take advantage of you when you are in the confines of the fetal position.  There probably always will be.  And while we are still a young civilization, we have accomplished a lot.  I do believe we will get through this and while I don't necessary think we will be smelling of roses after the fact... petunias aren't a bad door prize.  Shoot for the roses, just don't ignore the other flowers along the way.

I certainly wish I could tell everyone that everything will be okay, because I believe it will.  I don't know that as fact, though.  All I do know is that WE play a larger part in our destinies than WE may think.  Don't stop the negativity, just stop buying into it as if it is the all encompassing facet to these times.  It isn't. 

We have it pretty damn good.  I dare say that we are spoiled to a large extent.  Let's move forward swimming in the reality that we need to work hard, help each other, and practice ethics over instant gratification.

Hell, it sure beats one of the alternatives... which makes for a good song but a smokey neighborhood. 

Herein ends my "Gary Woltal" moment;)

Jason Sardi

Mortgage Consultant

Infinity Home Mortgage Company, Inc

610-439-2166 ext. 229

jsardi@ihmci.com

http://activerain.com/blogs/shears76

http://www.federalhousingtaxcredit.com/

Mr. Bettag presents some crucial information and nice commentary with this post.  Realtors & Consumers alike, please read the following very closely.  In a seemingly everchanging atmosphere, it is crucial to arm yourself with trusted outlets to ensure you are abreast of all the happenings around you.

This should lead it off quite nicely:)

Back in my early days of lending, I recall quite vividly the very first Rehab Loan I did.  While I did some legwork in actually knowing the ropes of that particular product before advertising the bejesus out of a very niche loan, I still was caught like a reindeer in some oncoming car's speeding headlights when trying to get them closed in a streamlined sort of fashion.  And then, I had it mastered.  As my particular luck would have it, most of those programs disappeared shortly thereafter.

The echoes in the back of my head rang of a long-lost product I had only heard about and most of what I heard were borderline horror stories.  The FHA 203(K) loan reared its mysterious head and stared me in my wide-eyed glance.  I gotta admit, there was major hesitation on my part in even wanting to get involved in such a misunderstood product.  I knew little about it and wanted to concentrate more on the Conventional sort of stuff that I grew up with in the industry... at least at that point.  Hey, of course I want to corner the market, but not at the risk of looking like an incompetent SOB at the end of the day.

Then, I encountered experts in that very product.  I figured, let's roll repair.

After doing more homework than my combined High School & College Education would vouch that I did back in the day, I chose to go after a market that just may make a dent in not only enhancing the housing market... but the very neighborhoods we live in.

This is just a taste of the FHA 203(K) Renovation Loan!

• Add a deck or porch, makes for one heck of a Summertime BBQ.
• Upgrade the electrical system and avoid reading overdue utility bills under candlelight.
• Modernize the kitchen and watch the The Food Channel in a comparable stadium.
• Replace a furnace and heck, it's a furnace.  You really don't want that entity breaking down anytime soon!
• Paint the exterior and/or interior.  Yours could be the only lavender house in the neighborhood:)
• Install new carpeting.  There's nothing like getting rid of stained residue from a German Shepard you never owned.
• Remodel a bathroom.  Hey, might as well let loose of your naked body in comfortable surroundings!
• Replace roofing and/or siding.  There were 58 mile per hour winds in Pennsylvania today, that stuff may come in handy.
• Refinish wood floors.  That's a big selling point for yours truly.  I adore wood floors and have an aggressive amount of ShamWow merchandise to prove it:)

Program Features:

• Low down payment
• Buy and remodel a home with one mortgage!  You can finance the purchase plus the cost of the improvements with one monthly mortgage payment.
• At least $5,000 in repairs needed to qualify for the 203(K) Loan.
• They can be used for owner occupied 1-4 unit family dwellings.
• Closing takes place before the improvements/repairs are made.
• Money for the repairs and renovations is held in an escrow account and paid out after each phase of work is completed, inspected and approved.
• By the way, they are fixed rates!

Consider this the teaser post to the taste buds of home renovation lending.  Yup, I'm your proverbial appetizer.

Jason Sardi

Mortgage Consultant

1-866-262-8720 ext. 229

jsardi@ihmci.com

Located at our Allentown, Pennsylvania office.  Pennsylvania Based Mortgage Banker/Broker whose area of service include PA, NJ, NY, CT, DE, MD, VA, SC, FL, MI and IN.