HAVE NO FEAR, YOUR PATH IS CLEAR-TO MORTGAGE APPROVAL & GETTING YOUR LIFE ORGANIZED
Welcome! Thank you for connecting to the Real Estate Mortgage Shoppe where we offer solutions to your real estate scenarios. I hope the information on our blog posts gives you something that you can use or that can save you some money.
If you are looking for information or help in areas that do not seem to be covered on this blog posts or my other posts, please feel free to call me at (901) 482-0354 or email me at jo@192.232.195.219 OR CONNECT AT www.JoGarner.com
MARKET NEWS
Look Back Memphis Trivia Contest
QUESTIONS ANSWERED BY Sally Baker, Organizer with The Source
QUESTIONS ANSWERED BY JO GARNER, MORTGAGE LOAN OFFICER
REAL ESTATE TIP OF THE WEEK
ANNOUNCEMENTS
Picture Gallery from show
Good morning, Memphis! Good morning to those of you listening on iHeart Radio across the country. You’re on Real Estate Mortgage Shoppe program and I’m your host, Jo Garner, Mortgage Loan Officer. Connect with me by calling me personally at (901) 482-0354 or connect with me at www.JoGarner.com . If you’re on twitter send me your comments or questions while we are live October 31st 2015 to #JoGarner. If you have a real estate or real estate financing conundrum to solve or a real estate related topic you want to discuss, contact us in the studio while we’re live at 901 535-9732 or outside the Memphis area (800) 474-9732.
Today or special guest is Sally Baker, owner of The Source. Sally is a professional organizer of homes, cars, offices, workshops, events and estate sales and so much more. She can organize your entire life and she makes it fun! Sally has completely reorganized my personal home starting with my car and going through my entire house including the garage. She has handled an estate sale for my family and some families of friends and associates. The testimonies from these clients and others have all been positive. Sally, tell us a little bit about yourself and what you do for your clients. <Sally introduces herself and talk about what she does and etc>
(Jo) Our general topic today is HAVE NO FEAR, YOUR PATH IS CLEAR—HOME MORTGAGE APPROVAL & GETTING YOUR LIFE ORGANIZED.
And the path IS clear to achieve the things in life you want to accomplish. You just have to decide you want to get it done and find the right people to help you. The right realtor, the right lender, can walk along with you through the home buying or home financing process, clearing your path so you can avoid pitfalls and enjoy the journey. Mortgage rates are still low enough to make your home financing journey PROFITABLE too.
Mortgage Rates did not move up yesterday after moving to the highest levels in a month Thursday. The last two days we saw the sharpest increase in rates since late August, with the market closing yesterday at 30YR FIXED – around 3.875% on the conventional 30 yr rates and the 15 year coming in the low 3’s. If the U.S. economic news is flat or a little brighter next week the expectation is to see prices on mortgage rates go up even more. So, if you or someone you know is interested in buying a home or refinancing one, please call me personally after our live show today at 901 482-0354 (901) 482-0354 or connect with me at www.JoGarner.com . Let’s run some financing scenarios for you to compare. You might be pleasantly surprised how much easier your life can be and how much interest costs you can eliminate just by taking the step to call. Remember, MAKE YOUR PLAN, WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
<Sally makes comments>
(Jo) It is amazing what you can accomplish when you have even a little organization put together in your life. Sometimes it’s as simple as knowing a specific dollar amount you need to bring in the door each month to clear the debt hurdles coming around the bend.
Yesterday a lady called me who was struggling with having enough cash to pay her bills per month due to a temporary family crisis. She asked me, “My 2nd mortgage equity lne payment just went up quite a bit and now it will be tough to be able to afford to pay my bills each month. What can I do about my home equity line loan?”
Normally, she would not even consider refinancing her fixed rate FIRST mortgage because she only owed around $40,000 on her first mortgage with less than 5 years left to pay it off. Her 2nd mortgage was a variable rate home equity line with a balance of about $50K. Her bank had just told her that her payment on that loan was converting to a full principal and interest payment increasing the minimum payment by an extra $200 per month. She told me she knew that later the monthly payments on her mortgage would be no problem, but the increase on the 2nd note for the moment was threatening her ability to pay for basic family needs at least until her family could get through their current crisis. The thought that the 2nd loan was also a variable rate loan with no safety caps on rate increases made her feel financially vunerable too.
The scenario that worked for her was to refinance the $40K fixed rate mortgage back to 30 year which reduced her payment saving her about $700/mo. She planned to use about $500/mo of the $700/mo savings to pay down the variable rate 2nd mortgage. Here’s what she accomplished—Most importantly she was able to solve the cash flow crunch per month by reducing her first mortgage payment. But also, she used some of the savings to pay down quicker the balance on the 2nd lien loan lowering her exposure on the variable rate loan faster. The restructure for this client is actually putting her in a BETTER position than her former arrangement. She can pay off first the loan with the riskier variable rate and THEN turn around and pay off early her safer fixed rate first mortgage—all of this AND be able to weather the temporary family crisis. Everyone’s story is different. Solutions vary from person to person. But here’s the good news, you don’t need to give into fear or worry. The path can be made clear to what you want to accomplish. But call me personally. I would like to talk with you PERSONALLY. Call me after our live broadcast at 901 482-0354 or connect with me at www.JoGarner.com. Or even better, you can call us now while Sally and I are live in the studio at 901 535-9732 or if you are outside the Memphis area, you can reach us at 800 474-9732.
<Sally comments>
(Jo) Sally, we are talking about “ HAVE NO FEAR, YOUR PATH IS CLEAR—HOME MORTGAGE APPROVAL & GETTING YOUR LIFE ORGANIZED.” Today is Halloween October 31st, 2015. What are some trick or treat tips you can give our listeners on organizing their car, their home, their office, their event or their estate sale? <Sally launches her topic>
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2nd segment after 9:15 break—It’s time for the Look Back Memphis Trivia Contest. Our Look Back Memphis Trivia contest brought to you by notable Memphis historian, Jimmy Ogle. Jimmy offers free historic walking tours of Memphis in the spring and fall. Contact Jimmy at www.jimmyogle.com sponsored by John and Jennifer Lawhon of Lawhon Landscape (901) 754-7474 the Lawhon’s can help you plan your full scale landscaping project, even if you’re on a budget The Lawhons are giving away a $25 gift card to the first person with the correct trivia answer. If you know the answer to one of our trivia questions, call us at 901 535 WREC 901 535-9732.
Garner # 1 originally published 01/30/14
November 6th Street
Question: November 6th Street is the most unusual name for a street in the City of Memphis. It is actually an alley that runs north/south in Downtown Memphis between Main Street and Second Street, from Beale Street to Shadyac Avenue (in the Pinch District). How did the street receive its name?
Hint: Think Memphis Light, Gas & Water! No, it is not the date that MLGW was formed, as that was not until 1939 (MLGW is the largest multi-utility service under one roof in the nation). You’re close . . .
Hint: Although this industry was growing in Memphis (a large urban center) through the first part of the 20th century, the program was a federally stimulated program (Works Progress Administration of President Franklin D. Roosevelt) intended for the rural areas of the South.
Hint: Memphis built the Allen Steam Plant at McKellar Lake in the 1950s to offset its increased demand for electricity.
Last Hint: TVA (Tennessee valley Authority).
Answer: On November 6, 1934, citizens of the City of Memphis voted (at the urging of E.H. Crump) to join the Tennessee Valley Authority (TVA) program to receive electricity at a cheaper rate. The original name of this alley was Maiden Lane. The first home in Memphis to receive TVA power was the residence of Nat Jones, 1438 Willett on June 3, 1938. Memphis is still the # 1 customer of TVA at 11%.
Back Story: As one of the most unusual names for a street in Memphis, apparently there are no other streets that we can find that are named for a specific “month, day, year”. Hmmm. Can you find one?
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Each year, Jimmy Ogle gives a free walking tour of November 6th Street on November 6! Go to jimmyogle.com for his schedule of free walking tours in Downtown:
Shelby County Courthouse: Third Thursday each month at 12:00 noon
Memphis & Arkansas Bridge Walk: Sundays
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QUESTIONS ANSWERED BY SALLY BAKER:
Fear of the cluttered
Garage
Office
closets
trunk of the car
kitchen cabinets
- Most everyone has excess belongings and the main fear is just “where do I start”?
Answers – – – TRICK is to…….
start small
organize by keep to use, keep to store, donate, and toss (garbage)
TREAT …….What this can do for you instantly…..TREAT
That one drawer being cleared out will start you on the road to many things –
- Finding something you thought you never would
- Getting to the bottom so you can put like things together
- Save you money by not buying things you truly already have (tape, scissors, etc)
- What this can do for you in the long run…….TREAT
- Save you money (by not buying more duplicates)
- Save you time ( not constantly digging to find)
- And in the real estate and financial world……..TREAT
- Help you locate documents and keep in a safe place
- Get you home in order for moving or selling
QUESTIONS ANSWERED BY JO GARNER:
- What documents does a mortgage borrower need to provide to make their path clearer for a mortgage approval?
- Most of your mortgage loan products will require very specific income and asset documents in order to verify your qualified income and your money needed to close and to have in reserve in case of emergencies.
Typical documents required to verify income are the last two years tax returns (all pages of the tax return including any K-1s if your tax return requires them.) Some loan programs only require the last ONE year tax return but they always require ALL PAGES. If you can’t get your hands on them, you can call the person who prepared them-the CPA or tax accountant or your mom and give them permission to send them to your loan officer. The mortgage company also gets a copy of your tax SUMMARY from the IRS but most of the time they want to see a copy of your tax return and not just the summary from the IRS. Mortgage companies are going to want to have a copy of your last 2 years W2s or 1099 income forms and your latest paystub. IF you can’t find all of these documents, call me. There are some easy trick
As for verifying assets, be prepared to give the mortgage company copies of ALL PAGES of your last 2 months bank statements or 401k statements. So many times a client will send us 3 out of 4 pages of their bank statements. When I call them and say “hey, thanks for the statement but we’re missing page 4.” They say, “Oh, I know you said you needed ALL pages but page 4 didn’t have anything important on it.” Mortgage company need ALL PAGES even if one of the pages is blank. If you don’t keep copies of your statements, that’s ok. You can usually print them from an online copy as long as it list your name and the name of the bank and at least part of the account number.
Another government loan requirement is to have the borrower verify the source of any large deposits other than payroll. There are some easy tricks to getting this done according to guidelines though, so again, HAVE NO FEAR. It doesn’t have to be complicated.
- What are some ways you help your clients get over obstacles to getting their mortgage approved?
- First, clients will tell me they don’t have any money to put down. My assistant and I are know how to find treasure for our clients in places they never thought to look! Particularly for clients who have not owned a home in 3 years or more, there are a multitude of down payment assistance programs available. If the seller pays the closing cost and prepaid taxes and insurance for the homebuyer, then normally the down payment assistance pays the down payment and they can get in for zero down or at least for very little.
Even if you are not a first time homebuyer, we have the 100% VA loans and the 100% USDA loans. We can possibly use a separate bank loan secured on a different asset to give you the funds you need to close with very little money down on the house you really want. In many cases you can borrow against a retirement fund without penalty. Gifts from family are nice too, but the source of the funds still need to have a papertrail. The gift must come from a verifiable source like a bank account –not straight cash.
- The second barrier is showing enough income to qualify for the loan you need to buy or refinance a home. If you have only been on your job a few months, we can only count your guaranteed base income and not the commissions since you have not developed a long enough track record of receiving commission income.
If you have a great salary but write off on your taxes $10,000 or $20,000 dollars in unreimbursed employee expenses, the loan officer has to deduct in some cases this amount from your pay for qualifying purposes, so when you are with your loan officer, be sure and tell them about any losses showing on your tax returns.
If you are self-employed and you have a lot of income that you control but, after write-offs, you only show very little, my assistant Susan and I can review ALL PAGES of your last 2 years tax returns and business returns. We have found tens of thousands of dollars worth of income in the BACK PAGES of the tax returns. If there is a way, we can find it to help our clients get qualified for what they want to accomplish.
Under the new government mortgage guidelines that went into effect as of October 3rd 2015, the government now dictates WHEN the mortgage company can require these documents but have them ready to go.
- The third barrier that we can overcome is credit issues. My assistant and I have trained on the Credit Simulators (like flight simulators). We can look at your credit report and see things that you can do that others have done that may be able to raise your credit scores by 20 or 30 points over a course of a few weeks with the least amount of investment on your part. No guarantees but good probabilities. If you keep your balance owed on credit cards UNDER 30% of the total credit limit, this tends to help get your credit scores higher faster. If you owe OVER 50% of the total credit limit, it can really hurt your credit scores. If you’re a realtor and you have a customer like this, we may be able to help your client with a work out plan to can get them in a house in a matter of weeks rather than months.
The fourth barrier is problems with the house needing repaired or a title issue. This is where an experienced realtor or closing attorney.
Your answer to the repair requirements can be easily fixed by negotiating the seller of the property to pay it or agreeing to put money back into an escrow account in some cases to make the repairs after closing. If the repair list is massive, then we may need to switch you to one of our Renovation and Repair loan programs. Title issues, if they occur, can usually be cured by an experienced closing attorney.
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REAL ESTATE TIP OF THE WEEK: (Sally shares organizing tip to help during the holiday season)
ANNOUNCEMENTS:
Announcements: Talk Shoppe offers free education and networking to anyone interested in real estate or business. This Wednesday November 4th, 2015. “Home Warranties and Risk Management” with Brad Sterling of Home Warranty of America.” Talk Shoppe meets at the University of Phoenix 65 Germantown Court 1st floor Cordova, TN 38018. For more information about Talk Shoppe, go to www.TalkShoppe.com
- To hear today’s podcast of Real Estate Mortgage Shoppe and others, go to JoGarner.com
- Remember to set your clocks back tonight.
- Kudos! to all of the participants in the Susan G Komen Race For The Cure today.
“MAKE YOUR PLAN, WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.”
Transitional Songs: “Ghostbusters” from movie Theme Song; “Thriller” by Michael Jackson ; “I’m Not Scared of Halloween”; “Memphis” by Johnny Rivers
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QUOTE CORNER: “He who is not courageous enough to take risks will accomplish nothing in life.” Muhammad Ali
“Courage is being scared to death… and saddling up anyway.”
Also, featured:
From rejoiner—Jeff and Heidi Ross with ShowHomes Memphis jross@showhomes.com hross@showhomes.com
From rejoiner—Loretta McNary from the Loretta McNary Show www.lorettamcnaryshow.wix.com
Dialogue Mention- Mark van Stolk, Business Coach with Calaveras-Coaching mark@calaveras-coaching.com
Dialogue Mention- Evolve Bank and Trust https://www.evolvelpo.com/jo-garner
______________________________________________________________________________ABOUT SALLY BAKER, THE SOURCE Unlimited
901-258-4775
Organizing Your World
To free your space, your time and your mind!
Experience
Administrator
Memphis Metro CCIM
January 2011 – Present (3 years 10 months)
Executive Director
AAF Memphis
January 2006 – Present (8 years 10 months)
Executive Director
Insurors of Memphis
1996 – Present (18 years)
Owner
The Source
1995 – Present (19 years)
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ABOUT JO GARNER-MORTGAGE LOAN OFFICER:
www.JoGarner.com (901) 482 0354 jo@192.232.195.219 twitter @jogarner
Jo’s 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 since 1987. 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 .
For real estate financing solutions, plug into Real Estate Mortgage Shoppe. You can find mortgage rates, FHA Streamline refinance with no out-of-pocket costs,
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PHOTO GALLERY
FROM REAL ESTATE MORTGAGE SHOPPE 10-31-15
Sally Baker, Organizer & Jo Garner, Mortgage Loan Officer
The “Fairy Godmother of Organization” “Pink-Caped Mortgage Superhero”