Real Estate Financing...

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."