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.

The Home Buying Process

By: Stewart Zemil, Chief Operating Officer

Home ownership has always been a major aspect of the American dream.  Regardless of your home buying experience, buying a home can be an overwhelming process. Understanding the steps of this process will help make the experience more manageable and enjoyable. With over 20 years in the industry, I’ve worked with many families to help achieve their homeownership goals and wanted to share the full process and some tips! Now is a great time to buy a home, here are the steps to get you into the home of your dreams:

1. Start savings towards your down payment
2. Set a personal budget
3. Get pre-qualified/pre-approved: Give me a call! We’ll set up an appointment to meet and review your employment/income/assets/debts and pull your credit report to determine the loan size you qualify for, and the type of loan program that meets your needs. Getting pre-approved not only helps you shop smarter because you know your finance options before shop, but it also strengthens your offer and lets the seller know you're serious. More to come on the importance of pre-approvals in a future blog!
4. Pick a Realtor: Your agent will represent you throughout the entire transaction beginning with determining the area in which you want to live and showing you homes in that area that fit your needs at your pre-approved price range, to writing and negotiating the best price for your purchase. They’ll even help manage all of the required vendors (home inspection, pest inspection, septic, handling the repairs, removing contract contingencies, scheduling a final walk through) until the date of your closing. If you currently don’t have a realtor, I’d be happy to recommend one to you.
5. Finalize your loan: Once you have a ratified sales contract, your next step would be to work with my team and I on the following:
1. We’ll prepare the loan application and disclosures with all current information as of the date we meet
2. Order title
3. Order the appraisal
4. Review the sales contract and disclosures to make sure you are in compliance with our lender’s guidelines
5. Order homeowner’s insurance
6. Process the loan application – obtain third party confirmations on all documents you provided to qualify for the loan in order to verify their accuracy
7. Submit the loan to our in-house underwriting department for loan approval
8. At this point, the underwriting department may request any additional documentation required
9. Once those documents are obtained, we’ll resubmit the loan to underwriting for a clear loan approval
10. We’ll send  the settlement company loan closing instructions and review the final HUD-1 settlement statement for accuracy
11. Review the settlement statement line by line to make sure you have no additional questions 
12. Wire closing funds to the settlement company
6. Go to closing: Our last step is to meet with all parties on the contract at the closing company to review and sign your closing papers. This is your chance to ask the seller any last minute questions about the home, and when you’ll receive the keys to your new home!

If you’re considering a move, I’ll be happy to walk through the home buying process with you one on one. For additional information, visit my website or feel free to review  this homebuyer’s handout I put together which further dives into the loan process.

Five Small Signs That Can Indicate Much Bigger Problems with a Home

It's not uncommon for homebuyers to recount horror stories about properties that appeared to be fine at first glance, but were actually hiding very expensive problems. If you fail to do your due diligence, you might find your dream house turning into a nightmare. The next time you walk through a house, pay attention for these five signs that the property might be hiding a unfortounate secret or two.

Mold, Water Spots and Water Damage

Older and newer homes alike may develop a leaky pipe or another similar plumbing issue from time to time, but any type of water issue can result in mold growth inside the walls. Water spots and warped wood indicate that the property has had a water issue in the past, and this means that the property should be more thoroughly inspected for mold growth before you make a purchase.

Doors and Windows That Stick

One of the most common signs of a foundation issue is doors and windows that stick or that are difficult to open and close. As you walk through the home, open and close the doors at leisure to identify if they are not in the frame properly. The issue should be reviewed by a structural home inspector or foundation contractor.

Small Cracks in the Walls

Some cracks in both interior and exterior walls can indicate that the home's foundation has shifted and is no longer flat and level. Significant issues may be indicated by molding or door frames that appear to have shifted after installation.

Fresh Paint on a Small Area of the Wall

Many property sellers will apply fresh paint to walls before listing a home for sale, and this is not necessarily a sign of damage to the home. However, when fresh paint is applied on one area of the wall alone, this may be a sign that the homeowner is attempting to conceal water damage or other related issues with the property. Further inspection of the property is in order.

Floors That Slant

Any time a floor slants to a level that you feel as though you are walking up or down across the home, this is a significant indicator that the foundation has shifted. Foundation issues result in the movement of the foundation that the entire home rests on, and this can result in an uneven feeling when you walk across the floor. If you notice that the floors in a property slant, you should schedule an inspection of the foundation.

Lowballing 101: How to Avoid Insulting a Home Seller when Making a Low Offer for Their House or Condo

Buying a home is a huge step for people who are ready to make an investment in their future. Getting a great deal on a home is just as important and knowing how much to offer could be confusing. It is important to make sure the home seller is not insulted by the lowball offer and is ready to negotiate to make sure everyone wins.

Make a List of Necessary Improvements

One of the best ways to validate a lowball offer on a home is to list improvements that need to be made to the property. If the home needs a new roof or a new heating and air conditioning system, these are reasons to offer less than the asking price. Sometimes a home may also need new flooring, paint, or matching appliances which all cost money. The buyer can make a lowball offer stating additional expenses of making sure the home is move in ready.

Explain Any Issues with the Location

Another option when considering a lowball offer is to point out problems with the location. If the home is on a busy street or close to a manufacturing district, the buyer has legitimate concerns. In the offer, list the potential problems of living too close to fast food restaurants, train tracks, or airports. A less desirable location could equal a great buy on a new home.

Provide Pricing for Comparable Homes in the Area

A knowledgeable real estate agent can help compare homes that have sold in the area. When you are writing up a lowball offer, look at the lower priced homes that have sold in the same neighborhood. A seller will quickly realize that if he wants to sell the home, he will need to accept a reasonable offer or risk letting his house sit on the market for weeks or months.

Consider the Seller's Reasons for Selling

Finally, the seller's situation can also be key in getting a good deal on a home. If the seller is desperate to sell because of a job relocation or if he has already bought a new home this can be the perfect reason to make a low offer and take the home off the seller's hands. Without insulting the seller, the buyer can make an offer for less than the asking price and agree to a quick closing.

Experiencing 'Purchase Anxiety'? How to Calm Your Nerves Before Committing to Buy a New Home

Whether this is your first big purchase, or your family is moving to a new location or looking for more space, buying a home has its share of ups and downs.

It's perfectly normal to feel anxious about whether or not you've found the right property. Here are some things you can do to make yourself feel more secure with your decision.

Do The Math

You've probably already done this, but it's okay to go over it a number of times to be sure. Factor in your household income and all the bills you expect to pay every month. Add everything up.

It sounds like a stressful activity, but when you look at the numbers and realize that buying a home is actually doable, it can be a liberating feeling.

When you know for sure you can make it as a homeowner without getting underwater, you will feel more confident.

Meet The Neighbors

If you haven't had the chance to knock on a couple of doors yet, you should spend some time saying hello to people in the neighborhood. The more you can get to talking with families that are just like yours, the more you will be able to picture yourself as a member of the community.

If you have kids, find out if there are other kids the same age nearby. That will help to ease their anxiety about moving as well.

Ask Your Agent

Don't feel like you are being overly cautious if you ask your real estate agent and or mortgage professional your lingering questions. Make sure you're getting a good price for the area, and make sure you know about any issues with the condition of the property.

You should be able to trust that your realtor and mortgage professional are excited for your decision.

Familiarize Yourself With The Neighborhood

Take a drive and figure out which stores you're nearest to, the route you can take to get to work, and which other amenities you might take advantage of. Home buyers often underestimate how important living in a safe neighborhood with plenty of accessible businesses can be.

The more you can imagine yourself living at your new address, the better you will feel.

Remember, never sign the papers on a new home unless you feel one hundred percent secure in your buying decision.

Invest In Real Estate Like A Pro With These Quick Tips

Real estate investments are still going strong and will probably continue to be a popular method of financial gain into the future.

Real estate is solid. It is a tangible product that is attractive to both beginning investors and experienced pros. The most important part of getting started in real estate investing is knowing what you're getting into and what to watch out for.

Here are 4 top tips from real estate investment professionals:

Understand The Realities

Real estate investment, like any form of investment, is risky. Do not use money you cannot afford to lose. Careful study, understanding the market, and practice help alleviate a lot of the risks but things happen in the best of situations so don't play with what you can't afford to lose.

Research Is A Constant

Research in real estate investment isn't something you do once. Research is constant. It is a daily part of your efforts and should always be at the forefront of your mind. From changing banking methods to market changes, researching and learning must be ongoing to be a successful real estate investor.

Know The Property

Research isn't limited to financing and the real estate market. You need to thoroughly investigate each property before you buy. Fill out an investment worksheet to see if all the costs associated with the purchase will allow a satisfying profit.

Learn About Personal Protection

Taking risks with the money you have set aside for investment is one thing. Taking risks with your family's savings, property, and other assets is another. Consider starting an LLC. You can choose from a single LLC to cover all of your real estate holdings, or having a separate LLC for each property purchased.

Millenials Have Great Homebuying Tools Available To Them

The economy seems to be finally turning, and home loan interest rates are still historically low. Real estate values are starting to climb as well, all of which makes for a growing opportunity for new homeowners to get into the market before it gets too expensive again.

Millennials Don't Seem To Be On Board

They represent the next generation of homebuyers, but a number of barriers can seem to be smack in the way, discouraging many. Yet there are ways around these issues.

According to the Boston Globe, only 32 percent of Millennials are homeowners in 2014, either with a house or a condominium. A number of factors contribute to this situation, and the big issue is finding a viable career. The general unemployment rate for young people is at 16 percent nationwide, almost double the regular average for all ages combined.

Add in the fact that many have large student loans eating up what income is earned in loan payments, and that doesn't leave much for saving into a down payment or a mortgage payment. In fact, one out of three college graduates right now has moved back in with the parents.

The career-chase situation is not a new one. The previous bunch, Generation X, experienced the same thing in the early 1990s with just as high an unemployment rate. The big takeaway from their experience is that the dip and labor famine is temporary. Most Generation X folks now are well-employed and living in regular, affordable homes across the country.

Further, Some Very Helpful Tools Are Still Available For New Buyers:

• Any homebuyer with military status can take advantage of Veterans Administration loans with far better rates than the normal market, making mortgage payments cheaper.
• Those buying in rural areas can take advantage of rural homebuyer's assistance programs provided by the U.S. Department of Agriculture to help people move to small towns and similar communities.
• The Housing and Urban Development Agency provides HUD loans that make it very affordable for those with limited income to purchase HUD-owned homes as first-time buyers and get into real estate.
• And the current market still has plenty of quality used homes from prior foreclosures that are marked well below their real value to move these units in sales.

Of course, the big response from Millenials is how do I earn more to even get started. Like Generation X folks before them, Millenials can't wait for a job to be made available on a platter. While looking, many smart folks have started their own businesses on the Internet. If a current job is enough to cover current bills, a second income can be entirely dedicated to saving, which can generate thousands of dollars quickly. Even a part-time second job that creates $1,000 a month produces $12,000 a year and in two years enough for a sizable down payment.

Don't give up, but definitely try smarter.

The Pros And Cons Of Making Biweekly Mortgage Payments

Have you ever considered paying off the mortgage on your home in two biweekly payments rather than one monthly payment? It might seem like this wouldn't make a difference, but the truth is that biweekly payments really do add up more quickly.

Since there are 52 weeks in a year you will end up making 26 payments in total – which is equal to 13 months rather than 12. This means that your mortgage will be paid off more quickly and you will save money on interest payments in the long run.

This arrangement might be the best for you when it comes to paying off your mortgage quickly and saving money, but it's important to consider the possible disadvantages before you make the decision.

Cons Of A Biweekly Mortgage Payment

• Often lenders do not offer biweekly services free of charge. You will be required to pay a registration fee as well as paying biweekly charges.
• If your budget doesn't allow the room to pay more toward your mortgage every year, this could be a foolish move. Don't neglect the importance of having an emergency savings fund or paying your bills.
• If you have your mortgage payment set up via direct debit from your bank account, taking out a payment every two weeks could catch you out if the funds are not there, especially if you are only paid once per month. This would result in charges for insufficient funds from both your lender and your bank.

Pros Of A Biweekly Mortgage Payment

• Some people find that paying their mortgage biweekly fits better into their budget because it's easier to plan for a smaller payment amount – especially if they are paid every two weeks.
• By shaving years off the length of your mortgage, you are reducing the amount of money you will pay over the long run.
• You will also be speeding up the time it takes to build equity in your home.
• You will be compelled to make an extra mortgage payment per year, enforcing good habits on yourself that will eventually pay off.

These are just a few factors to consider before deciding whether you should make biweekly payments on your mortgage. If you don't want to commit to biweekly payments on your home mortgage, you can always save up your money and make a lump sum payment at the end of the year.

For more tips and advice, feel free to reach out to your trusted mortgage professional today.