Wednesday, August 28, 2019

Ask your Realtor a question. Any question!

Is there ever a question you CAN’T ask a Realtor? Never. When it’s your future and your money at stake, you owe it to yourself to pose any questions that eat at your gut, so ask away. Here's a few more common questions. 
How will you help me find other professional?
Most Realtors are very good at having just the right person needed for many situations you might come across during your house hunt or trying to sell your home. Inspectors, Movers, Cleaners, Landscapers, Painters, MORTGAGE BROKERS! So ask! 
What are the draw backs to my house! 
Take that step and ask this one, most Realtors will want to go over this with you. Make that list of things you need to do to sell your home faster and for more money! It could be very simple things are needed like decluttering and removing personal items to making small updates to your home. But the truth is important to hear and remember your Realtor wants to help! 
Do I really need to replace my carpeting before the first open house?
If it's worn, smelly, discolored or worn out and YOU were a potential buyer walking through your house for the first time, how would you react? Buyers think about two things when they tour a property that has not been updated or repaired: time and money!
We are smokers. Do we really have to worry about what our home smells like?
Looking at online photos of your home show one thing. Walking through the front door and smelling the smoke that has permeated your flooring, drapery, cabinets and even furniture are an entirely different experience. Many a buyer will turn on their heels right there in your entryway and head for the next listing. So yes. Be concerned. Be very concerned.
Is it okay to decorate my home for the holidays while it’s on the market?
Absolutely. ’Tis the season. But if you are prone to filling every nook and cranny with happy Santas, hanging stars and extra Christmas trees, this is the time to scale back. You’ll obscure spaces that might otherwise be considered spacious.
Does having a dog make my house harder to sell?
Hopefully you have dealt with and remediated (1) doggie odors (2) doggie damage and (3) your furry friend’s tendency to bark or scare homebuyers. It's a good idea to have these few doggie issues under control before you list your home. Then it's a non-issue. 
Can I keep my displays of vintage guns, religious paintings, and my grandmother’s doll collection while my house is on the market?
If you hope to get the highest prices and sell your home in the shortest length of time, remove as many of these things as possible so the widest range of buyers walking through there will not be distracted. It’s a great idea to pack them up early and have them waiting to grace the interior of your next home.
The important take-away is to ask those sometimes uncomfortable questions. Your expert Realtor is a gold mine of information so don't hesitate to ask them anything. In addition do your research on the subject too, then ask them just to be sure. 

Thank you for visiting my blog, please leave me a comment, they are always welcome and encouraged. 

Roxy Redenbaugh
SR Loan Consultant
Branch Manager
NMLS #269926 ACMC #222
Source:  TBWS 

Saturday, August 24, 2019

Flipping Houses 101 - Hedging Your Bets on Your First Flip

So you think you’ve read enough books, gone to enough seminars, watched enough HGTV, finally got an offer accepted on an investment property and are now waiting for it to close. What should you expect? Smooth sailing or a nightmare? Is there an in-between?
Go over the possible outcomes..Sometimes it’s good to talk to others who have been there/done that. And even though none of it will insulate you from reality, here are a few ways things can go.
Best case scenario is, of course, that it goes swimmingly, making you think you’ve got a handle on this investor/flipper thing. No major issues, be confident that investing in real estate is much less complicated than you originally thought. Do your homework. Take the time to speak to other flippers, studied how to evaluate the value of a property, take notes of what damages or potential expense to look for, and learned how to evaluate the housing market. Get wisdom from others on the importance of how to communicate with sellers. If you do all these things, “Then you stand a much better chance of having a really smooth, profitable first purchase. Of course, a lot needs to be learned on the job, and you’re bound to make mistakes here and there, but this ‘pre-deal education’ will go a long way.”
The key in the beginning, anyway, is to be involved in EVERY aspect of the investment — from knowing the numbers to knowing the area to analyzing the repair costs. Don’t leave any of this in the hands of others. Success depends on your commitment to learning the process and keeping updated with the market. 
Many investors buy too high; get their rehab estimates wrong; miss something in the walk-through that’s going to cost them later. “Profit on your first deal is by no means a guarantee. However, your first close can make you money. So let’s say you’ve done your homework and educated yourself on the process, how to price and value things, and you’re ready to go!
Crunch time. Your accepted offer is accompanied in your mind by a certain profit figure when all is said and done.  We learned very quickly that it’s good to trust people, but you must VERIFY that their information is true. Keep track of permits and contractor delays, hiring the wrong people and finding more repairs than originally anticipated can be costly. The silver lining in all this?  
Don’t consider mishaps a mistake, it was just an expensive learning experience. 
Here's some takeaways to remember:
  • Learn by doing, not just reading about it. Know that ANYTHING can happen.
  • Profit is never guaranteed (at least not what you may have originally had in mind).
  • Gather a solid, trustworthy team around you.
  • Make sure the information the homeowner is giving you is true. Don’t take their word for it, even if they had good intentions.
Have a heart. You are buying what was once someone’s home. Treat them and the deal with care and compassion. Closing a profitable deal was only half the excitement. The other half is coming through for your seller. To them, it may be much more than a transaction.
And of course make sure you are working with a professional knowledgeable lender, who has access to great loan program for fix & flip or fix and keep. I am always available to lend a hand :)
On the right side panel of my blog you will find a ebook for investors, download it for FREE! 
Thank you for visiting my blog, don't forget to leave a comment or question? I'd love you hear from you. 

Roxy Redenbaugh
SR Loan Consultant
Branch Manager
NMLS #269926 ACMC #2225

Monday, August 12, 2019

Homeowners What's your Joy Score?

There are a number of ways to judge homeowner satisfaction. You can just ask someone if they love the home they purchased. Or you can ask them what their “Joy Scores” are. What’s a Joy Score? It’s the measure of how much value you place on renovations that make you the happiest as opposed to it being done to give you the greatest return on investment (ROI).
While homeowners, investors, lenders, and other financial professionals usually use ROI as the grading criteria for whether or not a remodel is successful on their report cards, sometimes you’re not remodeling with selling in mind. You are doing it to get more enjoyment out of your home.
“The Joy Score measures value in a whole new way, determining which renovations make people the happiest,” says RealtyTimes Jaymi Naciri. “More money in your pocket notwithstanding, some renovations may put an even bigger smile on your face.”
She adds that the National Association of Realtors (NAR) first added the Joy Score to their 2017 Survey of Consumers Who’ve Completed Remodeling Projects, based on a survey of 2,287 homeowners conducted by HouseLogic. It was calculated by combining the share who were happy and those who were satisfied when seeing their completed project and dividing the share by 10 to create a ranking between 1 and 10. The higher the Joy Scores, the greater the joy reaped from the project.
2019’s report discovered that Joy Scores were higher for consumers who completed DIY projects than those who hired professionals to do the same job. High scorers included kitchen and bathroom renovations.
The top 4 reasons given for the question, “What was the single most important result you wanted from remodeling their home?” were better functionality and livability, durable and long-lasting results, materials, and appliances, beauty and aesthetics, and adding more of the owner’s personality to the home.
Man’s best friend also figured into the score, with renovation projects for pets getting high numbers. Some of the more popular ones included putting in a fence, adding laminate floors, and building a doggie door.
Thank you for visiting my blog, don't forget to leave a comment or question? I'd love you hear from you. 

Roxy Redenbaugh
SR Loan Consultant
Branch Manager
NMLS #269926 ACMC #2225
Source: Realtytimes, cookremodeling, TBWS

Wednesday, August 7, 2019

Take Your Own Home Purchase Readiness Quiz

There is no doubt about it. If you are an adult with a good job, a logical mind, and an eye toward the future, you may be asking why you are not yet a homeowner. Interest rates are low, and there are homes out there waiting for buyers. While no one wants to pressure you, it does offer food for thought. How would you know if you were ready?
What questions should you ask yourself before you buy?
First, can you “show me the money?” While there are few upfront costs associated with buying a home, the down payment has got to be there, somewhere, sitting in a bank. Depending on the type of mortgage you are looking at (FHA, conventional, 203K or jumbo), you'll need between 3% to 20% of the purchase price socked away. If the property qualifies for USDA rural or you're a veteran and are eligible for a VA loan, you may be a candidate for 100% financing. Get in touch with me and I’ll help you see which program fits your situation.
The second question would be “have I been good?” We're talking about credit. You don't have to be perfect, but if your credit score is at least 620-640 or higher, you have much better odds of being approved, with a slightly lower threshold for an FHA loan. Lenders look at your credit score to determine if you are a good risk. That you pay your rent-on time. Have no issues with credit cards payments or maxed out accounts.  Making car payments on time? Of course, a steady job is key here too. You will need a two-year history in the same line of work. It can be with multiple employers but doing the same job.
The next question to ask yourself is whether you can afford a mortgage payment. Lenders look at your debt to income ratio. Different types of loans vary on these ratios, so again, check with your loan consultant, hopefully that me.
What about actually becoming a homeowner? Are you ready for the responsibility of a hot water heater failing you, a plumbing leak flooding your bathroom, or a roof that needs to be replaced in a few years? Your agent will recommend that you have the property inspected by a licensed professional and receive a report on what you're buying, but that doesn't mean you shouldn't be ready for the unexpected once you own the home. It's no longer a matter of simply picking up your phone and calling the landlord.
Another biggie is the question about truly needing a real estate agent. The answer is, yes.
It is in your best interest to have someone representing YOU!
Trying to find a home and negotiate the price is best left to a trained professional. It’s pretty common in today’s market to have multiple offers on one property, this means you will be up against another agent who has been there/done that all day long and will be acting in the interests of the seller.

As a buyer you don't pay for the services of a real estate agent, the seller will pay for your agent’s commission. Sweet right, so there is no money out of your pocket for their services. 

Plus, an agent is the neighborhood expert, advising you what you should look out for, what is happening in the area, and whether the price being asked for the home is in a reasonable range for values for that size/age home in that neighborhood. So once we’ve got you pre-approved and you are ready to go shopping for a home, ask me I’ll provide you with the name of a great real estate agent in your area.

Thank you for visiting my blog, I encourage you to leave a comment or questions. Let me know if my blog has helped you. I would love to hear your thoughts and any ideas for future posts.

Roxy Redenbaugh
SR Loan Consultant
Branch Manager

NMLS #269926 ACMC #2225

Thursday, August 1, 2019

Why Should You Use VA Loan

The VA loan is hands down the best mortgage loan there is. Here are some reasons why.

First, VA guarantees the loan for 100% of the appraised value of the property (technically, the loan is for the Notice Of Value amount, which in most cases is the same thing). This guarantee means that the lender is willing to make the loan. The loan amount for 100% financing goes as high as the maximum amount in each county.

Veteran buyers can get a loan for more than the county maximum; they just have to pay 25% of the amount above the county maximum. In pricey California, for example, a veteran could buy a home for $800,000 with a $40,963 down—roughly 5%. Which brings me to the next reason to get a VA loan:

There is no mortgage insurance. A buyer with a 700 credit score will pay about $400 per month for mortgage insurance if he puts 3% down on a conventional loan.

The rates are slightly lower in some cases. Also, underwriting standards are easier. Where conventional loans use dent-to-income ratios to qualify, VA loans use "residual income." This looks at how much money they actually have available each month after meeting normal expenses from their take-home pay. Conventional loans are typically capped at a 45% debt ratio (or thereabouts). VA loans can many times be approved above 50% depending on the overall strength of the borrower.

When rates drop, refinancing is easy. VA loans offer a "streamline" refinance option, called an Interest Rate Reduction Refinance Loan (IRRRL). This allows the veteran borrower to reduce his or her rate with no appraisal, and very little underwriting of income. The primary criterion for approval is that the borrower has an acceptable payment history and that they are improving their position.

If a veteran wants to refinance and get cash out of his or her equity, there is no pricing adjustment for that process. A conventional loan will typically be about .25% higher in rate to get cash out.

For anyone who is a qualifying veteran, NOT getting a VA loan would be a costly mistake.

You can always contact me for more information. I would love to hear your comments or questions. 

Thank you for visiting my blog, Let me know if my blog has helped you. I would love to hear your thoughts and any ideas for future posts.

Roxy Redenbaugh
SR Loan Consultant
Mortgage Coach
Branch Manager

NMLS #269926