6 Tips for a Successful, Stress Free Loan Process

By: Lorraine Packett, Mortgage Banker

1) Ask your financial adviser, tax preparer, realtor, family, friends and coworkers who they recommend as a loan originator. You can have it all with the right relationship and still receive fair market rates and fees.

2) Prepare yourself to be responsive and be sure you are ready to access your financial information for the initial application including: 2 years tax returns, 2 pay stubs and 2 monthly bank statements to cover the basics.

3) Make contact with the loan originator that was referred to you and tell them of all the information that makes your situation unique. The loan process may seem invasive, however, it is very important to show all of your cards. It is better to address any difficulties up front, so that your originator can find the best mortgage solution for your needs. Know that the relationship is long term. Over the course of their life, the average person buys, sells and potentially refinances their mortgage several times.

4) Once you have spoken to the referral(s), choose and plan to work with that one person. Rates are constantly in motion and will always be competitive. Having personalized service from a responsive loan originator is key to ensuring that the loan is done correctly and closes on time.

5) From the initial application, preapproval, as well as finding the perfect property, it is critical that you provide all the information that is requested rapidly and completely.

6) Ask as many questions as necessary to make sure you are comfortable with the outcome of the dollars and cents beforehand to avoid surprises. The responsibility is with you and the originator working together for your goals!

Apex Home Loans is equipped to provide you with other referral partners for homeowner’s insurance, closing attorneys, estate planning and financial planning services as needed. The goal is simple – surround yourself with a team that will have your best interests in mind.

Follow these tips and you’re on your way to a successful, stress free loan process. Ready to begin the home buying process? Request a copy of our homebuyers guide or apply online.

5 Critical Steps You Must Take Before Listing Your Home For Sale

By: Glen Lazovick, Senior Vice President, Business Development

Summer is approaching, and you’ve decided that it’s time to put your house up for sale. Drawing from my 25 years’ experience in the industry, I’ve compiled this list of things to consider before you list your home. Taking these steps now can go a long way towards assuring that you'll successfully sell your house quickly and at a good price.

1. Walk through every room and around the outside of your home. Make a list of what needs to be repaired, updated or replaced. Remember you only get one chance to make a first impression.

• Which rooms need to be repainted?

• Wash the windows both inside and outside.

• Do the carpets need to be cleaned, stretched or replaced?

• Clean all light fixtures and make sure the blubs are clean and working. A bright well lit house will give a good impression.

• Make sure heating and ventilation vents as well as bathroom exhaust fans are vacuumed and clean.

• Have the HVAC system serviced and cleaned.

• On the outside of your home, prune trees and shrubs, replace any shrubs that did not make it through the winter, add some color with flowers. Put down fresh mulch.

• Power-wash siding, driveways, walkways and decks. Re-stain decks if needed.

• Repair and paint trim as needed.

2. De-cluttering your home will make rooms and closets appear larger and more inviting.

• Now is the time to go through your closets and get rid of the clothes you have not worn in the past few years. Don’t forget the linen closets, pantry and kitchen cabinets; they all should be orderly and uncluttered.

• Clean out the garage, basement and attic.

• If you have items that you do not use often but want to take with you to your next home consider renting a storage lockers or portable storage container. (Do not keep the portable storage container on your property have the company store it at their location, you do not want to call attention to a perceived lack of storage space).

• Hold a garage sale, or better yet donate your excess furniture, household items and clothing to a charity. You will get a tax write off and help someone in need.

3. Visit listed homes similar to yours.

• How do they compare to yours? Are they in better or worse shape? You will notice things that you might have overlooked in your own home (refer to number 1 above)

• How are they priced?

• Get some staging ideas to efficiently use space.

4. Meet with a Mortgage Loan Officer.

• Make sure you will be able to purchase your next home. There have been many changes to the mortgage process in recent months.

• Get pre-approved to increase you negotiating power.

5. Interview 2-3 Real Estate Agents.

• Get a referral from your Mortgage Loan officer. Your loan officer will know the top Realtors in your area and would be happy to make a referral.

• Ask for references from clients that they have worked with in the past.

• Ask for a detailed listing plan including a Competitive Market Analysis (CMA). All Agents should be in the same ballpark with a suggested listing price. If one is much higher or lower than the other ask them to justify the suggested price. They may give you an inflated price to gain the listing, only to have you lower your asking price in a week or two.

With these simple steps, you’ll be in a great position to sell your home. I’m always available to help you in the process in any way I can. Are you ready to begin the home buying process? Request a copy of our homebuyers guide or apply online.

10 Tips to Save for Your First Home

 By: Amy Smith, Mortgage Planner

Saving money is hard!  But just like anything if you try hard enough the payoff is fantastic.  Follow these not easy but rewarding steps to save for your first home….

1.  Start a budget.  Plan your expenses and budget in an amount for savings every month 
2.  Get a travel mug!  Making your coffee at home to take with you can save you $2 or more a day. 
3. Skip the bagel.  Buy your breakfast when you do your grocery shopping and pack it.
4. Along the same lines – pack your lunch.  Savings $7 a day (or more) on lunch out could be a huge savings at the end of the month.  
5. Eat dinner at home.  We are all busy so getting delivery or eating out always seems easier.  If you cut out dinners out at least twice a month you could save $50 to $100 just for those two sacrifices. 
6.  Review your auto insurance plan.  Make sure you aren’t paying too much because you’ve stayed with the same carrier. 
7.  Stop spending needlessly!  Stick with just your needs for one month and see what that leaves at the end of the month.  Stash it away and do it again.  And again. 
8.  Get rewards cards.  Make your spending work for you!  Saving on gas because you shop one place and earning discounts on your purchases another place help to cut costs for the things you have to buy anyway.  
9.   Have the time?  Get a part time job or start consulting (as long as you aren’t planning to claim a loss on your tax returns).  
10.    Have a yard sale.  Sell all of the stuff you don’t need to drag with you to your new home.

Follow these tips and you’re on your way to putting more money away each month towards the home of your dreams. Ready to begin the home buying process? Request a copy of our homebuyers guide or apply online.

Tips for a Successful FHA 203k Renovation Transaction

By Paul Pykosh, Director of Renovation Lending/Senior Mortgage Banker

The FHA 203k rehabilitation mortgage program has grown in popularity as the nation’s housing stock has aged.  It allows a homebuyer to roll in the repair costs into the loan up front.   The 203k loan is perfect for homes that require cosmetic or major rehabilitation in order to make them livable or more desirable. These steps will prepare you for a successful FHA 203k loan transaction: 

1. Get pre-approved with an experienced 203k lender.  First, make sure your loan originator is well-versed in the FHA 203k mortgage, can explain the process in detail to you, and has a history of closing FHA 203k loans.  It is also important to obtain a quality mortgage pre-approval that states the terms of the 203k loan (sale price, approximate rehab costs, approximate final loan amount, interest rate, etc.).   To originate and close a successful 203k loan, the lender needs to have experience with navigating the complexity of the additional paperwork and additional players involved.  If your lender slips and calls the program the 401k loan, you know you are dealing with inexperience from the beginning! 
2. Do some homework!  Take advantage of the HUD Approved 203k Consultants before making an offer on the home.  They offer a preliminary feasibility study that will allow for a rough estimate of the necessary and desired repairs and the costs of those repairs.  Using the consultant for this can help you weed out potential ‘money pit’ properties.   Once you know the scope and cost of the work involved, this can help you structure your initial offer price more favorably.
3. Create your equity through negotiation of the sales price!  The equity in the home is determined greatly by the original ratified contract sale price.  Be careful not to bid too high since the property has to appraise high enough to include the cost of repairs.  The items that can be included for rehabilitation are flexible, but the after-completed appraised value has to validate the repair costs being done.  I have seen buyers end up with less equity because they did not negotiate the sales price low enough.  While it’s easy to get caught up in the whim and appeal of fixer uppers, it’s important to take your emotions out of the deal and treat it as a business transaction. Visit the property a few times and at least once with your contractor and/or Consultant so you know where to start and end the negotiations.   Remember that with FHA, a borrower can negotiate a seller credit for closing costs and pre-paid items up to 6% of the purchase price.
4. Work hard in the beginning of the process to have a smooth closing.  The sooner the consultant, borrower, contractor, and lender get the Specification of Repairs (a list of the specific details of the work to be done and the cost for each part of the work) completed and agreed upon, the sooner the appraisal and the underwriting of the loan can occur.  Be pro-active and help facilitate the process by staying on top of the people involved.
5. Take time to hire a good licensed contractor.    Start with referrals of professionally licensed contractors that have done jobs recently.  Interview a few, get references, and use web sites like Angie’s List to find out about a contractors reputation.  A good contractor is important to the entire loan process, both in the beginning when proper documentation is required and after closing the loan when being on budget and on schedule is vital.  Studies have shown that the lowest priced contractor has the highest number of delays and cost overruns.  The cheapest contractor often leads to the lowest quality work.

These 5 tips should put you in great shape for a successful FHA 203k loan transaction. If you have any questions on the process or to get started on your loan give me a call at (240) 238-2402. You can also check out our mortgage calculators, request a copy of our homebuyers guide or apply online.