Posts Tagged ‘mortgage arizona’

Arizona Mortgage Question of the Day: Can I qualify for an Arizona mortgage if I have co-signed on a loan for another person?

Arizona Mortgage Question of the Day:  Can I qualify for an Arizona mortgage if I have co-signed on a loan for another person?

Well, kind of. 

There is a NEW Arizona mortgage underwriting rule for this.  IF you are qualifying for an Arizona mortgage and you have co-signed (for example for your son to buy a car) BOTH you and your son need to be on the NOTE to repay.   Your son makes the payments on time each month (out of his OWN individual account) then he can provide cancelled checks to show HE makes the car payment.  By doing so, you can qualify for your Arizona mortgage without having that payment included in your debt.

IF, instead, you initiate the loan FOR HIM, you are on the ONLY borrower on the NOTE, then you have to qualify for your new Arizona mortgage WITH the car payment regardless of who makes the payment. 

It always angered me that my father would never co-sign on my behalf, to establish credit.  After what I have seen on individuals mortgage credit reports, I now understand his concern.  Although we all know, I would have made all of my payments diligently 🙂 …… the alternative possibilities are scary.

I would always discourage anyone from co-signing on behalf of another person, however, in certain circumstances it can not be avoided.  IF this is the case- just ensure you are BOTH on the NOTE.

Having a dream is good, owning one is better!

Leslie Nilsen

Owner/ Broker

First Class Financial Services

602.294.9288 (p)         



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)

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)

MB#0902810 / NMLS# 162494

Kids and Money! Start early…

My guy is the most amazing 15 year old on the planet and his first word was “mortgage” so to say I know something about kids and money, is an understatement.  I used to teach a Finance class to 8th graders and it was disturbing their view on money, it’s source and it’s longevity.   So here begins my blog on kids and money!

My first suggestion is an easy one: Start early! As early as your children learn the value of a hot stove they should learn the value of money.   The value of saving it and the value in spending it (spending it specifically on real estate 🙂

How hard we have to work to acquire it and how quickly it is spent.

What a credit card is and that they are more than just a plastic card that comes with wallet. (3 years of teaching and many 8th graders could not explain HOW a credit card was re-paid)

The value of your credit report and identity.

The tremendous benefit of a monthly budget.

I used simple times to explain complex ideas even to my toddler.  Don’t under estimate your ability to make an impact on an incredibly important topic at an early age.    The survey the 8th graders took at the end of the year many wrote “…very thankful I took this class!  I had no idea!” 

I’m sure it goes without saying but practice what you preach, start early and you might learn something about your own finances along the way!

Having a dream is good, owning one is better!

Leslie Pelletiere Owner

First Class Financial Services

602.294.9288 (p)

MB#0902810 / NMLS#162476

Last Mortgage Mistake to Avoid: NOT reading your loan documents.

Ok so some things just should be a given.  Read what you sign before you sign it!  Mark it down. Add it to your list. It’s an always not a sometimes. 

I am not making this up:  99% of my mortgage closings are done at the escrow office however I have probably signed oh, say, 100 mortgage transactions in my career.  I would say what, I don’t know, 100 of them the client said, “Where do I sign?” before even THINKING about reading the document. What? Ok, call me crazy but I read the fine print on my cereal box.  Although important, that is not my 30 year mortgage document!

It is the borrower’s responsibility to read, understand and agree to their mortgage terms.  It is almost impossible to turn back the clock if you decide what you signed was not what you thought it was.  Yes, it’s a pain. Reading through, what is now 50+ pages of mortgage loan documents but it is worth it to confirm what you thought, ask questions about what you don’t understand and make corrections if you see errors BEFORE you sign. 

Don’t be afraid to ask your loan officer or realtor to attend your signing with you too.  It is the last step in your happy new house experience and our last step in future referrals.  We are happy to do it!

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services

602.294.9288 (p)

MB#0902810 / NMLS #162476

Mortgage Mistakes to Avoid: Forgetting to LOCK your rate!

Many clients ask, “When should I lock?” I always answer, “IF you are happy with your rate, lock now!” The benefit/risk scale is tipping heavy on the risk side here.  The markets move all day everyday and we cannot control the movement in interest rates.  IF you are a gambler you can float however you need to be prepared for swings in the market.   I watch the market all day so I can see trends that may lead to a change in rates  however I’m Speedy Leslie not Speedy Gonzalez so many times, regardless of how quick I move, I cannot get into the lock desk before rates change.

Many people then ask “What if I lock and the rates move?” MOST of the time, when your loan is locked,  it’s locked.  Good, bad or otherwise.  The rate will not change.   SOME lenders do have a float down option that if you lock and rates get better, and you meet a miriad of requirments, you may be eligible to drop the rate.  Typically those lenders are priced higher out of the gate so really you are better off just settling into your locked rate and relish in the comfort of it’s security.

Remember, we are globally exposed with our markets these days.  Something crazy can happen in Egypt and our markets move.   Given the millons of things that can impact the market, if you are happy with your rate, just lock it.  You can thank me later.

Never assume your loan is rate locked until you get confirmation in writing from your loan officer.

One last thing, when you are loan shopping:  All the rates you are quoted are only quotes.  That quote is not secure until you lock the loan and with rates moving sometimes several times in one day, you really need to know WHO you are dealing with.   Are you being quoted some fantastic rate just to reel you in? Then when it comes to lock time, the story changes? Hopefully not but this is when a referred loan officer makes all the difference. 

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services

602.294.9288 (p)

MB#0902810 / NMLS#162494

Mortgage Mistakes to Avoid: Sounds to good to be true?

Does the pitch your loan officer made, sound too good to be true? It probably is.  If the payment seems, “let me jump out of my shoes in excitement”, low… there’s a catch.  If the rate sounds, “let me run and kiss a stranger”, low… there’s a catch.  Mortgage lending is not rocket science.  Use common sense with this stuff and you can usually sniff out anything that is not on the up and up.  REGARDLESS of what you might hear from the loan officer!  OR you can just call me.  We can discuss the specifics.  I will likely repeat what I have posted here but certainly am open to the discussion. 

Thankfully with all of the licensing requirements, legislation changes and market changes, most of the scary loan officers have moved on however it is best to just keep it simple.  Go with the loan program that makes the most sense to you.  Go with the loan officer that has done the best job explaining the rate, the fees and the features of the loan. 

In the end, just make sure you ask ALL the questions, over and over, if you have to BEFORE you sign anything.  I have received many phone calls asking for explanations as to what borrowers have gotten themselves into AFTER it is already closed.  Once you are in, whether you like it or not, you are in.   In the short term, it may be too late to do anything about the loan until you are eligible, at a cost, to refinance out of it. 

How does that saying go? Measure twice, cut once?

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services

602.294.9288 (p)

MB#0902810/ NMLS#162476

Mortgage Mistakes to Avoid: Job Hopping!

In honor of Easter, I thought I would talk about Job Hopping!

In this economic environment, it is not unusual for borrowers to have changes in employment however the underwriter is looking for consistency.  The underwriter will want to see that your monthly income is consistent and expected to continue into the future.  The underwriter isn’t necessarily concerned about job changes in the same line of work, however a big career change can be an issue and could require a minimum of a 2 year history.  

Perhaps, if you are considering a change, you just wait until after your mortgage transaction has closed before you make any moves.  Just keep in mind, your impending mortgage payment is going to come due and your job change will need to be able to support your new happy house payment.

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services

602.294.9288 (p)

MB#0902810 / NMLS# 162476

Mortgage Mistakes to Avoid: Simply… applying for other credit…

March 29, 2011 Comments off

Applying for credit.  Yep. Simply applying for credit during your mortgage transaction is a huge mortgage mistake! When qualifying for your new home purchase, the ONLY applying you want to be doing is for your mortgage.  There are many things with this:
1.  After doing your mortgage research,  determine WHO you want to do your mortgage with THEN have THAT loan officer pull your credit report.  You do not need ALL of the loan officers you speak to, to be inquiring on your credit.  Each inquiry can affect your mortgage credit score.  Since mortgages are so tied to credit score, you risk having your credit score drop below where you are eligible.

2.  Applying for NEW credit during the mortgage process.  I had a client offer to drop off her most recent paystub as part of her mortgage closing.  When she got to my office she was very excited to show me her new MERCEDES.  WHhhhAT? NOoooooooo…….  the inquiry for the Mercedes dropped her credit score.  The new account for the Mercedes dropped her credit score.  The high credit limit in relation to her balance dropped her credit score.  In addition to her credit score issues, the new debt of her Mercedes impacted her monthly budget and made her ineligible for her mortgage. I’m all for a beautiful new Mercedes but NO Mercedes is worth that!

3.  IF your mortgage transaction requires you to obtain monthly mortgage insurance (PMI), the PMI premiums are also tied to credit score.  If your credit score drops from applying for alternative credit, this could make you ineligible for issuance of mortgage insurance.

4. INTEREST RATE! Interest rates are determined in part by credit score.  All programs are tiered based on credit score.  Your interest rate can be dramatically impacted if your credit score drops.

5.  Many clients want to start furniture or appliance shopping.  Although I understand the need for these items in a new home, it is critical to wait for these purchases until you have closed escrow.

Ok. You get the point. Shop til you drop…with CASH! Try not to USE credit and definately don’t APPLY for credit during your mortgage loan process.  You will thank me later!

 Having a home is good, owning one is better!

Leslie Pelletiere Owner/Broker


MB#0902810 / NMLS# 162476

Question of the day: How quick can I get Pre-approved?

First, YAY that you want to buy a house! Second, YAY that you want to buy a house!  I’m stumped as to what most people are waiting for… inventory is great, rates are still great, FHA loan limit in AZ is still $346K and FHA allows for a minimim of 3.5% down payment AND you know a GREAT loan officer! What more could you ask for?

Getting pre-approved is easy.  All you have to do is apply! You can do that online or over the phone.  Once we have your application,  your permission to review your credit report and income/asset documentation, we can underwrite your loan in order to provide your real estate agent the important LSR document (remember, this is what shows you are APPROVED not just pre-qualified)

With that LSR, you can hit the streets! It’s that easy!

The LSR and your pre-approval does not obligate you to anything.  It only allows you to begin shopping and make an offer when you find your dream home!

You owe it to yourself to get started today!

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288 (p)

602.294.9830 (f)


NMLS# 162476