❇️ Lunch & Learn Session #3 - Commercial Lending w/ Miranda Gauthier begins at 11:00am. We are all setup & food will be here soon!
🛑 If you didn’t get signed up for this 3 part series, don’t fret. We will begin again next month for the May, June & July series. This next series will be offered in both Benton & Washington Counties.
✅ Let me know if you are interested in signing up for the next series. Don’t procrastinate, because we only have 35 spots & this series filled up in only 10 days. So give me a shout if you or any other real estate agents want to come & I’ll send you my flyer with all the details.
❇️ Buying Down the Interest Rate
When a lender quotes an interest rate, it is likely the closest rate to “par” (no cost or credit for the rate).
On most loan types, you have the ability to select a higher or lower interest rate. Choosing a lower rate comes with a cost which is usually added to your closing costs. This is why it’s known as “buying down the rate”.
💡The way we determine if it makes sense to by down the rate is to look at the cost & how long you plan to own the home.
✳️ Hypothetical Scenario:
Let’s say that you can buy down the rate 0.25% for a cost of $1,000 & that would lower your monthly payment by $30.
($1,000 / $30 = 33.33)
Therefore, it would take you 34 months (or 2yrs & 10mths) to pay yourself back that $1,000 it cost to buy down the rate. If you plan to be in the home for longer than this, it could be beneficial.
🛑Disclaimer: Everyone’s situation is different & rates/costs fluctuate constantly. The figures used in this example are hypothecate & for educational purposes only.
Be sure you choose a lender who keeps up with financial markets & understands how rates & pricing works. Locking or floating (not locking) a rate is always a gamble. There is no guarantee what will happen in our global economy from one day to the next.
❇️ How much down payment is required?
It could be as little as $0! 🤯
Your required down payment depends on several factors including which loan program, property location, household income, credit score & debt-to-income ratio (DTI).
There are multiple programs which do not require any down payment including VA, Rural Development & ADFA (down payment assistance).
A common misconception is the Conventional loans require 20% down payment. Actually, they can require as little as 3% down.
FHA loans have a 3.5% down payment.
💡 While you can always put more down than the minimum requirement, many people believe you must have a certain amount of money saved in order to buy a house when in fact, it’s possible to purchase a home with little to no money out of pocket.
New Realtor Lunch & Learn: Session 2 is about to kick off!
First-Time Homebuyer Characteristics
What did 3,000 first-time homebuyers day when surveyed?
Lunch & first-time homebuyer presentation with Scott Todd.
❇️ Just 10 days ago I announced my New Realtor Lunch & Learn beginning in February. As of yesterday, the entire class is booked!!!
👉🏼 This new 3-part series fills a need not currently being offered in the NWA market. The response has been phenomenal! Thank you to everyone who signed up for allowing me the opportunity to add value to you & your business!
➡️ If you weren’t able to get into this session, don’t fret. This will be a recurring quarterly course. Due to the overwhelming response, the plan for my next quarterly session (beginning in May) will include both a Benton County & a Washington County class.
💡 Knowledge is power! I want to give you the power to grow your real estate business in 2019! If you would like to expand your knowledge of residential & commercial lending processes/requirements as well as get some excellent reference material, give me a call.
🙋🏻♂️ Let me know if you are interested in more information &/or would like to save your spot for the May/June/July series.
❇️ Is Mortgage Insurance a dirty word?!
Some might say “YES!”, but Mortgage Insurance (MI) is the reason you can get a Conventional Loan with as little as 3% down payment.
🧐Even government loans (FHA, VA & Rural Development) include their own version of MI by way of charging an up-front funding fee, monthly fee or both.
In the old days, everyone had to put at least 20% down to buy a home, because banks don’t want the risk of having to foreclose on a house with no equity👎🏼. Mortgage Insurance helps offset that risk which allows YOU to finance more of your purchase price! 🙌🏽
✅Most people don’t know, but there are various forms of MI available to fit your needs. The most common form is paid MONTHLY. However, you can pay a lump sum at closing (known as SINGLE Premium) to keep your monthly mortgage payment lower. Also, there is SPLIT Premium which allows you to pay a little up-front and a little monthly.
So unless you plan to put down 20% then mortgage insurance is your friend, because it allows you to keep more money in your pocket at closing & offsets risk for the bank. That’s a WIN-WIN for homeownership! 🥳
❇️ Dramatically increase your credit score in 3️⃣0️⃣ days!
I stumbled upon this credit trick by accident & I want to share it with you. The below picture is from my personal credit score tracker.
💡While switching jobs in 2018 I took a couple of months off & incurred some credit card debt. While investigating ways to eliminate those high interest payments, I figured out how best to consolidate that debt. The credit score increase was an unexpected bonus that I feel could be MASSIVELY beneficial to others!
✅ If you have credit card debt or just want to learn how I did it, contact me & I will happily show you how you can turn around your financial situation & improve your credit.
Disclaimer: The credit increase below is based on my personal information. Any credit improvement would be based on your overall credit history.
Cory Stocks NMLS #137231
❇️ Self-employed & thinking of buying a home in the next year?
Have you been turned down in the past, because you didn’t report enough income or been told you need to provide 2️⃣ years tax returns?
➡️ If you’ve been in business at least 5️⃣ years it’s possible to get a mortgage based on just your most recent 1️⃣ year income!
With tax season approaching, this could be a game changer! Most entrepreneurs write off all possible expenses to reduce taxable income. However, this limits the amount of mortgage you could qualify for.
💡 If you know you want to buy a home (or refinance) this year, it’s worth reporting higher net income (not writing off as many expenses) for 2018 in order to qualify for the home price you want. Then you could use just your newly filed 2018 tax return to get a conventional loan with as little as 5% down payment!
✅ Give me a call before you file your 2018 taxes. I will take a look at your financial situation & let you know how much NET income you will need to get qualified for the home of your dreams.
Cory Stocks NMLS #137231
As 2018 draws to a close, I would like to thank everyone who helped make this year a success! Watch out, because I am just getting started & BIG things are happening in 2019!
Happy New Year to you all & be safe in your celebrations this evening.