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Posts Tagged ‘az home mortgage’

The down low on using GIFT funds for down payment…


Many types of mortgage financing allow for GIFT FUNDS to be used towards down payment.  The basics?
* Gift funds need to come from a blood relative (“donor”)

* The “donor” needs to be willing to provide the “source” of the funds.  This can be a bit tricky as many times the relative does NOT want to provide bank statements or asset statements to show where the money came from.  There is no way around this so prepare for it from the beginning.

* The “donor’s” bank statement can not show any LARGE deposits into it in the statement period.  The reason for this is the underwriter wants to see that the “gift funds’ are not borrowed funds requiring a repayment.

* The “donor” will sign a gift letter stating they are gifting the funds from Account “X” and that the funds do not have to be repaid.

* Those funds should then be wired directly to the escrow company handling the transaction.  This helps to avoid having to “paper trail” the funds through the borrowers account and again to escrow.  If the “donor” sends the funds directly to the escrow company it eliminates this step.

Remember, on FHA loans, 100% of the down payment AND closing costs can be gifted.

Be sure to check on the specific type of CONVENTIONAL loan you are qualified for as to the allowable “gift funds” per your program.

Ready to get started?  You can apply ONLINE conveniently at www.fcfs.net

If you have any questions, feel free to contact us at 602.294.9288

or E-mail:  mortgagedr@fcfs.net

Post your question on Facebook 

Having a dream is good, Owning one is better!

Leslie Nilsen

Owner/Broker

First Class Financial Services, proudly Arizona mortgage lending since 1999.

602.294.9288(O)

602.294.9830(F)

www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

 

 

 

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How can I help make your Arizona mortgage process easier?


How can I help make your Arizona mortgage process easier?

1. First and foremost, buying a home is in the top 5 most stressful things one will do in their lifetime. I certainly do not expect you to understand what, when, why and how. ASK! Call. E-mail or to make it a bit easier there is also a wealth of information online.

2. You can apply for your mortgage online at https://secure.web-loans.com/security-logon.aspx?timeout=1 – this is a SECURE webpage allowing you to enter your e-mail address, save your data and come back to it at a later time.

3. How much is it costing you to rent and what are the financial benefits to buying? You can compare renting versus owning here: http://fcfs.net/loancenter-calculators-rentvsown.aspx

4. How much can you borrow? Use this calculator to help you find out – http://fcfs.net/loancenter-calculators-prequalify.aspx

5. How will making an extra monthly payment affect the payback of your loan? Use this calculator – http://fcfs.net/loancenter-calculators-extrapmt.aspx

6. Check out the Frequently Asked Questions section – http://fcfs.net/faq.aspx

Your question may be covered here too! No question should go without asking!

Remember, my goal- Having a dream is good, owning one is better!

Leslie Pelletiere, Owner First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O) 602.294.9830(F)

www.fcfs.net

MB#0902810 NMLS #162494

AZDFI Loan Officer # LO-0911453

AZ Mortgage Buyer Checklist as provided by the Arizona Department of Real Estate


AZ Mortgage Buyer Checklist as provided by the Arizona Department of Real Estate 

In researching some information through the Arizona Department of Real Estate, I found a handy Buyer Checklist!

You can find it here: http://www.re.state.az.us/PublicInfo/PropertyBuyerChecklist.aspx

This checklist has infomation on:

New homes in a Subdivision…….specifically to reading the contract completely (builder contracts can vary greatly from the typical purchase contract), how to get the public report, and notes on what to do BEFORE you sign the contract.

Previously Owned Homes……..specifically to the realtor’s representation, getting a home inspection, termite inspection and what to do BEFORE you write an offer.

Undeveloped Land…….. specifically to advise regarding asking for the ” Arizona Department of Real Estate Disclosure Report “(Public Report), reviewing the Arizona Department of Water Resource, and parcel requirements, if intent to build.

The checklists are kept up to date by the Arizona Department of Real Estate and have all of the important information for each category that you or your buyer might forget!

Although dry, the department can be a wealth of information. The more we know the better off we are.

Having a dream is good, owning one is better!
Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

www.fcfs.net

MB#0902810             NMLS #162494 

AZDFI Loan Officer # LO-0911453

How does the new Loan Officer Compensation affect your buyer/seller?


First, did you know there WAS new loan officer compensation?

There is.  Basically (although unbelievably convulated and confusing) the new legislation says that borrowers have 2 options.  EITHER to pay their loan origination fee OR to accept a higher interest rate and have the lender paid the loan origination fee.  Seems simple, right?

Here’s where YOU, as their realtor, come in.  Does the loan officer that your buyer is obtaining their loan from, even have TWO options? Many lenders are adopting ONLY the lender compensation and ONLY offering the higher rate option to your client.  IF you buyer is unaware that their are two options available to them, they may not know to ask or search for another loan officer (me). 

Keep in mind, many times a lender paid, higher rate option works best.  My job is to ensure that BOTH are presented to the borrower so, through analysis, we can determine which is best. 

Also, on the lender paid option, most lenders have adopted a MINIMUM amount in order to ensure the loan officer receives adequate compensation regardless of the loan amount.  HOWEVER, the lender may have to increase the interest rate, considerably, in order to pay the minimum compensation to the loan officer, again dramatically impacting the quality of the loan for the borrower.

On another note, the new Loan Officer Compensation does NOT allow for ANYONE to pay for ANY additional costs associated with the loan OTHER than the borrower.   This typically comes up under lock extensions.  IF a loan needs to be extended at a cost, the buyer is the ONLY one that can pay that expense.  NOT the loan officer.  NOT the realtor. Regardless of WHY the lock needs to be extended AND given that this is a new expense, the buyer will need to re-disclosed this expense (with mandatory disclosure times) which could affect your close of escrow date.

Just be aware. Ask questions. If your business is referral based as mine is, it is critical we are advisors for our clients not just transactional.

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

 

Kids and Money… The 3 C’s


Critical. Control. Credit.  Critical is #1. Control is 1.1. Credit is #1.2.  (All close in line is what I am trying to say)  

I have talked to my son about all of these since he was a toddler.  Little did he know when we were talking about how inappropriate it was for him to be throwing a fit while begging for candy at the grocery store, that we were really talking about his credit report.   “You cannot get future great stuff without doing the right thing right now” 

Critically think first, practice some control and know that credit is like breathing.   Re-read that last sentence.  If we all jumped out of bed, said “Goodmorning Day” and adopted that as our new mantra… where would we be? 

So many clients come to me with the dream of home ownership only for me to tell them that their credit score it too low to qualify.  They have worked their butts off, they have spent years saving the down payment money, they have changed their lifestyle to handle the new dream mortgage payment but skid…… no dream home for you.  Their credit score is too low because last December, when they bought a new big screen TV instead of making the credit card payment,  they forgot… “You cannot get future great stuff without doing the right thing right now”  I have to also remind them that their credit score plummets and is like climbing Mount Everest to get the score back up again.   THAT conversation is why I write this blog.  Although titled “Kids and Money”, sometimes my 44 year old clients need to be reminded of the lessons they should have learned with they were 4.

Critical. Control. Credit.  Start with YOUR kids when they are 4. 

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services          www.fcfs.net         mortgagedr@fcfs.net
602.294.9288 (p)

MB#0902810 / NMLS#162476

Kids and Money…It doesn’t grow on trees!


The money may not grow on trees but it does come from gifts! I encourage my son’s family members to gift in the form of CASH.  I know. I know. Most gift givers do not want to give cash but it feeds to the rest of my story.  #1 He loves the cash.  Most family members now give him the gift in the form of individual dollar bills.   Admit it, it just seems  like more.  #2 We practice control.  How much to keep? How much to deposit?  #3 We make another trip in the “dream car” to the bank.  With “whats my balance?” being the next thing out of his mouth.  Music to my ears! #4 Once the whole journey is over, he is reminded just how important it is to think first, deposit second, spend third.

My parents have also started contributing directly into his 529 college fund.  They will send him something small and a note that they have contributed towards his college.

This morning we had the “How can I make more money?” conversation.  He is seeing his goal looming on the horizon.  He turns 16 in 310 days, 8 hours and 23 minutes.  Not that either of us are counting.

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services     602.294.9288 (p)      www.fcfs.net       mortgagedr@fcfs.net

MB#0902810/ NMLS# 162476

Kids and Money… Goals. New Account. Compounding Interest!


What is more exciting to talk to your kids about than the magic of Compounding Interest? Ok so maybe thats just me! 

My son and I started by talking about what he wanted to spend his money on.  Initially it was small things he could buy immediately.  The more we talked about it, the bigger his “dreams” got.  He ultimately decided he wanted to save for his first car.  On that note, we drove his “new dream car” to the bank and opened an account.  Ask your local bank about accounts specfically designed for kids.  

Over icecream, to celebrate, we talked about compounding interest.  The conversation is radically different over ice cream and with his own money.  Once he figured out that the bank would GIVE him money, his sense of urgency to get money into the account compounded as well. 

Now every time he makes or is gifted money, he holds out a portion for himself and the remainder is deposited into his account.  He has a picture of his Jeep posted above his desk, right next to his bank statements. 

Might be a good time to think about your own goals (home ownership or upgrading, of course),  open an account and master the power of compounding interest!  You can thank me later!

Over a glass of wine tonight, I’ll decide my new goal for all the money I saved not having to buy my kids first car!

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services

602.294.9288 (p)

www.fcfs.net         mortgagedr@fcfs.net

MB#0902810 / NMLS# 162494