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Cleaning the carpets at my Arizona rental… secret to stains!
Cleaning the carpets at my Arizona rental…. secret to stains!
First, I know this has nothing to do with the insides of the Arizona Mortgage business. However, a good pointer I could not pass up.
I have tried everything to get the stains out of my WHITE carpet. I rented a carpet cleaning machine and even purchased the spot remover. Nothing worked. HOWEVER I remembered the Queen of Clean mentioning something about Baking Soda/Vinegar and Water. The baking soda WORKED! Literally took the BLACK stains from years ago, out of the carpet completely! I sprinkled down the baking soda, sprayed it with a water bottle and let it sit. That’s it! Pulled it right out!
You can all thank me later!
Having a dream is good, owning a rental property with clean carpets is great, owning your own home is even better!
Leslie Pelletiere, Owner
First Class Financial Services, proudly mortgage lending since 1999!
602.294.9288(O)
602.294.9830(F)
MB#0902810
NMLS #162494
AZDFI Loan Officer # LO-0911453
AZ Mortgage Question of the Day: How long do I need to be out of an Arizona bankruptcy, short sale or foreclosure to be eligible to mortgage a new home?
AZ mortgage Question of the Day:
How long do I need to be out of an Arizona bankruptcy, short sale or foreclosure to be eligible to mortgage a new home?
Here is a generic guideline – keep in mind that many lenders have additional requirements depending on their own guidelines:
Bankruptcy:
Chapter 7:
FHA – 2 years with re-established credit / 1 year if bankruptcy was from extenuating circumstances and have shown substantial ability to manage new affairs since. A minimum 640 score.
CONVENTIONAL – 4 years and a minimum 680 credit score.
Chapter 13:
FHA – 1 year has elapsed since filing, all payments have been made to the trustee on time and ONLY with trustee prior approval.
CONVENTIONAL – 4 years and a minimum of a 680 score. All payments have been made to the trustee on time and ONLY with trustee prior approval.
Foreclosure:
FHA – * 3 years has elapsed from the finalized date of the foreclosure.
CONVENTIONAL –
* 3 years if borrower can prove extenuating circumstances. Additional occupancy, credit score and down payment requirements.
* 7 years if financial mis-management. Additional occupancy, credit score and down payment requirements.
Short Sale:
FHA – * 3 years has elapsed from the finalized date of the short sale.
CONVENTIONAL – * 4 years – Additional occupany, credit score and down payment requirements.
One additional note to consider: Many lenders will NOT follow these guidelines if they had their own prior loan included in the bankruptcy, foreclosure or short sale so keep this in mind when applying. All of this information is in a generic sense and can only be guaranteed with an approval directly from your lender. This is another reason that applying and getting loan approved BEFORE you start home shopping is so important.
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)
MB#0902810
NMLS #162494
AZDFI Loan Officer # LO-0911453
To Condo or not to Condo?
Ugh. Condo’s. I don’t want to be a big downer on condo’s but… here it comes. Specifically to Arizona, condo’s are increasingly more and more difficult to lend on. There are several reasons for this but primarily the lenders make a distinction between whether the condominium project is warrantable or non-warrantable. Simply put, lendable or not?
Conventionally the project needs to meet a miriad of restrictions: (this is the short list.. there are more)
* 70% of the units need to be owned and occupied as primary residences.
* The HOA cannot be in any litigation with the homeowners.
* One owner cannot own more than 10% of the units.
* The HOA cannot have more than 15% delinquency.
* The HOA has to be turned over to the owners.
* In a new construction project, 90% of the units have to be delivered.
* The HOA has to carry a minimum of a $1million dollar liability home owners insurance policy and carry an employee dishonesty rider (Many other insurance requirements but this tends to be a big one)
For FHA, the project needs to have received its NEW FHA approval (all FHA approved condo projects needed to get reapproved in 2010)
Given the above restrictions, you can see why I would be a big downer on condos. With the amount of default we have seen in the state of Arizona, most projects have a higher than 30% investor occupancy. Many investors have gone in and bought several units and made the projects ineligible OR the current owner is in default/ delinquent on HOA dues.
I understand the draw to the condo projects as there are many that are priced too low to pass up. Ask the right questions initially in order to determine if it is eligible for lending. On a conventional loan, the HOA MUST complete a “Condo Questionaire”. Most HOA’s do not hand complete them any longer. They are typically done through HOA Questionaire Services for a fee.
My last question? How difficult will it be to re-sell given the difficulty 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(O)
602.294.9830(F)
MB#0902810
NMLS #162494
AZDFI Loan Officer # LO-0911453
YAY! Lender LOWERS FHA credit score requirement to 580!
I ask you… IF you can get a mortgage with:
1. A 580 credit score
2. Your grandmother can gift you the 3.5% down payment
3. The seller can pay ALL your closing costs
4. (You can have ZERO contribution of your own money)
5. You do not need reserves to qualify.
6. You can get an interest rate below 5%
7. You have more inventory to choose from than eggs at an easter egg hunt.
8. You can have a new mortgage payment less than you are paying in rent.
9. You LOVE your realtor.
10. You LOVE your loan officer.
11. You HATE your roommate.
What is everyone waiting for?
Spread the word. Life is good. We need to take advantage of it!
Having a dream is good, owning one is better!
Leslie Pelletiere, Owner/Broker
First Class Financial Services, proudly mortgage lending since 1999.
602.294.9288(p) mortgagedr@fcfs.net www.fcfs.net
MB#0902810/ NMLS#162494
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)
MB#0902810
NMLS #162494
AZDFI Loan Officer # LO-0911453
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
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)
www.fcfs.net mortgagedr@fcfs.net
MB#0902810 / NMLS#162476
First Class Financial 