April 2021 – Your Real Estate Matchmaker

Buying Homes, Finding a great Realtor, goal setting, home ownership, Motivation, Planning, Succeed

When Gratefulness Abounds

Posted on April 8, 2021April 8, 2021 by Your Real Estate Matchmaker

I had a reverse thrill at my double closing yesterday. I mean closings are always good, it’s what I work for, right? And a double closing where I have the buyers and sellers is even more amazing. However, yesterday I had a newfound “reverse” sensation at closing. I was so excited, not for myself, but for my clients. And when I came back to the office to update my closing chart, I had an even more amazing realization. Let me tell you about both that wild sensation and realization.

Yesterday I closed on a duplex with both buyers and sellers who were repeat clients. As I came back into the room to give the buyers the keys and saw their smiling faces it hit me; the great journey that they’ve been on. It was only a few years ago that I helped them purchase a couple of flip homes and re-sell them. Then they started to purchase up-scale rentals, beginning with hard money loans til they could “prove their worthiness” in the banking industry standards. They took risks and it paid off. After a few years, I had the opportunity to assist them in purchasing a warehouse because their construction company had taken on some great commercial contracts and they needed space. Now they’re a huge success on a Regional Nationwide scale. And they’re just plain great people. They always have a smile, they’re always polite and funny and have a vision for even greater things. It re-inspired me. It challenged me and it just plain made me joyful realizing the success and the journey they have been on.

As I handed them the keys I thought, what a great story and fulfilling of an American dream. It has been a joy to be even such a small part of it. And then I thought of my sellers who have come full circle, selling off their first investment property, where they had lived so long ago and selling to be near to their beloved grandkids.

When I returned to my office with all the documents, I looked at my updated list of the 1^st quarter closings. There were 13 of them, with over 2.5 million in volume. I can remember my early days in real estate that I hoped for that number for the year! But, the most amazing thing that caught my attention was that when I looked at that chart; showing the addresses, volume, dates, and where the business came from – I discovered that 12 of 13 deals were repeat clients or referrals from clients. That is an incredible thing. I had to sit down for a second and reflect on my gratefulness. What am I grateful for? You! Somehow, somewhere, you’ve had an impact in my real estate career &/or my life. I just felt I really needed to say Thank You. I am so blessed and so excited for what is to come.

It is easy to forget our blessings in this often-crazy world. Sometimes we get in a rut. Sometimes we forget to dream bigger when we’ve achieved our goals. Sometimes we forget to extend our gratitude. So I wanted to do that today. I am grateful for you. Whether you’re a client large or small, a friend, my cheerleader, my mentor, someone who has referred me, reads my articles, or all of the above – I am grateful for you. Dream Big my friends, and don’t forget to thank those who have helped you become who you are. You are my blessing.

community, Finding a great Realtor, goal setting, Home Buyers, Home Buying Tips, home ownership, Motivation, Planning, Realtor

The Most Misunderstood Loan – VA

Posted on April 6, 2021 by Your Real Estate Matchmaker

I have the utmost respect for the men & women who serve our country through any branch of the military. I am sure it is often times a thankless and misunderstood job. One of the ways our Country demonstrates its thanks in a small way, is offering our vets their own special type of home mortgage.

There are some huge benefits for veterans who use their entitlement to purchase homes. However, especially in this insanely competitive world of home buying right now – the impression given to those receiving offers on their home from VA buyers are often being misled and tossing those offers to the curb.

Let’s talk benefits and then cover myths about VA loans…

A huge benefit for a VA buyer is that there is no required down payment. They of course can put money down if they so choose, but with the excellent interest rates VA loans have, the buyer may choose to keep their money in the bank to use for home renovations, family vacation or anything else they desire.

In addition to the great interest rate and no money down, our VA buyers don’t have to pay MIP or PMI – loan insurance, which is required on all FHA loans, and on any conventional loans with less than 20% equity. That in itself, is a huge savings. Our vets can also choose to roll all of their closing costs and up to 4% concessions into the loan. So on closing day, they will have no need to walk in with a check if they have chosen this option.

VA loans also have refinancing options to lower payments when interest rates are favorable. Veterans can also refinance their other home loan types into a VA loan if they had purchased previously without using their VA Entitlements. VA loans may also be assumable which can be a huge benefit in a market where the loan is a low interest rate but the current market has higher rates. Our vets also have staff who advocate for them to find alternatives to foreclosure if the need arises.

What are the myths & potential disadvantages of VA loans?

Two of the biggest myths I hear are that sellers believe someone using a VA 100% loan is not as strong of a buyer as someone putting 20% down on a conventional. That is simply not true. Being able to finance all of their purchase is simply a benefit, their credit worthiness has no bearing.

The second myth I often hear of is that a VA loan appraiser is going to require the seller to pay for a bunch of repairs. While it is true that there are appraisal stipulations with a VA loan that aren’t there for a conventional loan; they’re simply safety measures, such as peeling paint (that could be lead-based) the lack of hand-railings going down a staircase. For a quick view of the guidelines see the link at the end of this post. The truth is, if your home is in average repair, you’re not likely to have an issue and everything is negotiable even if it came up.

I do believe and have often expressed my disappointment in the appraisal structure of the VA loan; that it is a disservice to our veterans to have the additional appraisal requirements, simply because of the stigma associated with it. I understand that passing the added appraisal inspection may give a sense ofsecurity that our vets are getting a “good house”. But in reality it is costing many of our veterans the possibility of owning a home that may need a simple $250 in repairs because of the mentality and lack of education in both the sellers and often Realtors advising sellers. I would love to give our vets the opportunity to see what appraisal issues come up and have the option of being able to move forward with the loan with a post-closing resolution. For example, the vet can move forward on the purchase of a home with peeling paint around an exterior door frame and have 30 days or “when weather suitable” time period to bring it up to snuff themselves after closing and provide such documentation after the work is done.

For specifics on any home loan, be sure to ask a licensed mortgage broker/loan officer. I’m happy to help you find an excellent VA lender. Every person’s situation is unique and speaking with a lender and getting a pre-approval is the best way to get all the facts.

VA LOAN BENEFITS:
Zero $ Down
No Extra Insurance Premiums
Roll in Closing Costs
Lower Interest Rates
No PrePayment Penalties
Foreclosure Advocacy*
Refinance Options*
Assumable*

DISADVANTAGES:
Perception as a weak buyer at 100% financing
Perception that there will be tons of repairs
Potential Appraisal issue if closing costs are rolled into price

https://www.benefits.va.gov/…/M26_7_Ch12_MPRs_NEW.docx

Talk to a licensed VA lender for details! Getting a Pre-approval is an absolute must in this busy real estate market. If you wish to get moving, let’s find a loan officer to start pre-approving! 989.475.2958

Buying Homes, community, Finding a great Realtor, goal setting, Home Buying Tips, home ownership, Home Selling Tips, Planning, real estate, Real Estate Bay Midland Saginaw

Let’s Talk About Conventional Loans

Posted on April 6, 2021April 6, 2021 by Your Real Estate Matchmaker

The most flexible of mortgages – the conventional mortgage can be used for all types of homes; single family, vacation, rentals, & multi-family residences and there’s no maximum loan limit. They are unique because they are not guaranteed nor insured by the Federal Government, although most lenders/mortgage brokers will conform to the Fannie Mae/Freddie Mac guidelines so that they can later sell their loans to them, which frees up their funds to take on more loans. Conventional mortgages typically have lower closing costs than other loan types but do require a higher credit score from the borrower.

Terms and Interest rates will vary depending on your DTI (Debt to Income) your credit score and what lender you choose. But with a conventional mortgage, you may qualify for a 3% -20% down payment and choose a 30, 20, 15, 0r 10 year term to repay your loan. Most lenders require at least a 620 credit score but you will find that as your credit score goes up, your interest rate will come down. Your DTI will also help determine how much you will get approved for.

If you purchase a home using a conventional loan and your down payment is less than 20%, keep in mind you’ll be paying for Mortgage Protection Insurance (MPI) until your equity is above that 20% mark.If you’re interested in hearing more about a conventional mortgage or any other type that you may qualify for, give me a call or send me a DM and I can recommend some great local loan officers and mortgage brokers that can find the best fit for your situation.

CONVENTIONAL IN A NUTSHELL
*Lower Consumer Costs
*Most flexible terms
*not government backed
*No maximum Loan Limit
*No MPI when over 20% equity
*Usable on all types of properties
*Requires Higher Credit Score
*May be more difficult to obtain than FHA/RD
*Closes More Quickly

Getting a Pre-approval is an absolute must in this busy real estate market. If you wish to get moving, let’s find a loan officer to start pre-approving!