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Posted by Carol-Ann Palmieri & Al Mussi on 4/25/2017

As happens in any industry, there are professionals who work in the real estate industry who don't mind cutting corners. Protections against working with inexperienced realtors and mortgage brokers comes through local and state realtor licensing requirements.

You may not be real estate savvy, but you deserve to be heard

The realtor licensing requirements vary from state to state, but generally mandate that realtors complete educational training and pass a state approved licensing examination. Ethical and legal issues may be covered during the training. What training seminars, study guides and tests may not give realtors are strong communication skills.

A study guide may not show realtors how to respect mortgage borrowers and house hunters. This training may fall into your lap. To be effective when dealing with realtors and mortgage brokers, you need to be confident. When you are confident while house hunting, you can increase the likelihood that you will:

  • Search for houses that fit within your financial range (confidence can help you to communicate to realtors the importance of not wasting your time and only showing you houses that are below your maximum budget)
  • Avoid giving into realtor or mortgage broker requests to buy houses that have amenities that you don't really want or need
  • Stick to looking for houses that are located in areas that match your personal tastes
  • Get the chance to buy houses that your entire family will appreciate (this means that you won't be talked into buying a house that may be great for adults but injury provoking for children)
  • Steer clear of attending open houses where former pet owners lived if you don't want to live in a house that was once home to several dogs or cats
  • Receive a thorough explanation of each expense associated with owning a house. For example, if you're confident, you could clearly and respectfully communicate to a realtor that you want all costs associated with a house to be level with or below your budget. In this case, expenses like your mortgage principal and interests, homeowners association fees,closing costs, broker fees, title fees and loan fees and insurances will not exceed your maximum budget.
  • Work with a realtor who takes the initiatives to update you on the status of the house shopping process.

House hunter confidence yields its own rewards

Reliable and respectable realtors and mortgage brokers are honest. They value house hunters and borrowers, whether these adults are their clients or not. They research directories, conduct smart marketing for their clients and look for quality houses that match their clients' requests. Sharp realtors and mortgage brokers aren't pushy or demanding. They listen to their clients.

If they exhibit enough respect and self-confidence, smart house hunters could help to sharpen realtors and increase their chances of working with realtors who find them houses that they will afford and appreciate. They could also help realtors gain the very skills that strengthen and lengthen realtor careers, skills like active listening, focused question asking, thorough research and welcomed communication skills.




Tags: Mortgage   realtors  
Categories: Uncategorized  


Posted by Carol-Ann Palmieri & Al Mussi on 9/22/2015

Mortgage rates are at historic lows and there is no better time to buy a home. Do you qualify for those low advertised rates? Will you be able to secure a mortgage? Studies show that 6 in 10 people do qualify for mortgage loans. For those that can't qualify here are ten reasons why a would-be borrower might face rejection: 1. A low credit score will keep you from getting a mortgage. Typically, a score less than 620 is unacceptable by most lender standards. 2. A maxed out credit card threshold will stop a mortgage in its tracks. If your balance more than 30 percent of the allowable credit lenders will take pause. 3. Multiple credit inquiries may drop your credit score. Limit your credit inquiries to mortgage-only credit pulls within a 30-day period. 4. Did you Co-sign a loan with someone? If so, plan to provide 12 months of canceled checks showing they make the payments to the creditor. 5. Other housing liability payments or a consumer loan for a vehicle may prevent your loan approval. Lenders are looking for you to have double the income to offset each dollar of debt you carry. 6. If you are self-employed you may not be showing income under a Schedule C. This reduces your borrowing power. 7. Claiming many unreimbursed business expenses and losses on your taxes may help you pay less taxes but it also can reduce your borrowing power. 8. If you change jobs often this could also hurt your chances at a mortgage. If you occupational status has changed in the past two years it can hurt you. 9. If you are planning on using cash for your purchase think again. All monies must come from some kind of a bank account. 10. Don't plan on transferring money from different accounts during the loan process. Be prepared to show full bank statements and a chain of deposits etc. Your mortgage professional should be able to look at your credit, debt, income and assets and make a determination of whether you qualify for a mortgage.





Posted by Carol-Ann Palmieri & Al Mussi on 4/21/2015

Trying to decide what type of mortgage is right for you can be tricky business. So you may be wondering what is an adjustable rate mortgage? An adjustable rate mortgage or ARM, has an interest rate that is linked to an economic index. This means the interest rate, and your payments, adjust up or down as the index changes. There are three things to know about adjustable rate mortgages: index, margin and adjustment period. What is the index? The index is a guide that lenders use to measure interest rate changes. Common indexes used by lenders include the activity of one, three, and five-year Treasury securities. Each adjustable rate mortgage is linked to a specific index. The margin is the lender's cost of doing business plus the profit they will make on the loan. The margin is added to the index rate to determine your total interest rate. The adjustment period is the period between potential interest rate adjustments. For example, you may see a loan described as a 5-1. The first figure (5) refers to the initial period of the loan, or how long the rate will stay the same. The second number (1) is the adjustment period. This is how often adjustments can be made to the rate after the initial period has ended. In this case, one year or annually. An adjustable rate mortgage might be a good choice if you are looking to qualify for a larger loan. The rate of an ARM is typically lower than a fixed rate mortgage. Remember, when the adjustment period is up the rate and payment can increase. Another reason to consider an ARM is if you are planning to sell the home within a few years. If this is the case you may end up selling before the adjustment period is up. Federal law provides that all lenders provide a federal Truth in Lending Disclosure Statement before consummating a consumer credit transaction. This will be given to you in writing. It is designed to help you compare and select a mortgage.





Posted by Carol-Ann Palmieri & Al Mussi on 4/7/2015

Buying your first home can be confusing. Securing a mortgage is one of the most important parts of the home buying process. Making sure that you have the right loan and have chosen the right loan officer are among the things a first time buyer has to do to start the process. Here are some more tips on how to ensure a successful purchase: 1. Make sure your deposit is in order. Talk to your loan officer about what amount of a deposit is required for the purchase and type of loan. You will also want to make sure the funds are accounted for and readily available. You can expect deposits to run anywhere between 3 and 20 percent of the purchase price. 2. Plan to have a cash reserve in addition to your deposit. You may want to have a reserve of at least two months mortgage payments. 3. Ask your lender to go over all the fees that apply to the purchase. It is better to be prepared and know how much the actual purchase will cost. These costs are typically added into your loan but there may be some out of pocket expenses too. 4. Consider how much you can comfortably afford not how much you have been approved for. These numbers may vary considerably. Your mortgage costs should not be more than 30% of your household income. 5. The lowest rate is not always the best deal. You will want to look at not only the rate but also the terms and fees associated with the loan.      





Posted by Carol-Ann Palmieri & Al Mussi on 3/3/2015

There are lots of different types of mortgages out there but the most popular mortgage is a fixed-rate mortgage. A fixed-rate mortgage has a fixed interest rate for the entire term of the loan. The interest rate is determined at the loan's origination. One of the main advantages of a fixed-rate mortgage is that the loan payment amounts will stay the same for the life of the loan and will not fluctuate with interest rate movements. Lenders offer 50, 30, 20, and 10-year fixed loans. The two most popular are the 30 and 15 year fixed loan. A 30-year fixed loan amortizes over thirty years, with the majority of early payments going toward interest, later payments go mostly toward the principal. A 15-year fixed loan, amortizes over fifteen years, and significantly reduces the amount of interest paid on the loan. When considering a mortgage understand and measure risks of all the different types of mortgages.