How I Bought My First Home – Part 2

 First Time Homebuyers  Comments Off on How I Bought My First Home – Part 2
Sep 062017
 

Last week I told you of the real estate agent who laughed me out of his office in 1987.  I was dejected yet determined that one day I would own a home.  Today I want to share with you the nasty surprise I received on my birthday and how that led to my becoming a homeowner.

It was my birthday!!!   

It was October, 1989 and I was unwrapping a beautiful red Fender Stratocaster guitar for my birthday.  We had a few friends and family over to my apartment in Astoria.

The phone rang; it was my boss, Rich.

Trevor I have some bad news.  The company is out of business; don’t come back to work tomorrow.  Human Resources will be in touch about any s

Yeah, this is me!

everance you might be owed.”

I was shocked because I thought we had been working for months to save the company from disaster.  I was obviously wrong.  I had a great position as Regional Manager in Customer Service and I had worked my way up from lowly Customer Service Rep at the company.

Happy Birthday to me, by the way.”

Three weeks later I had an invitation for an interview with a mortgage company on Long Island.  Someone in the family knew someone whose brother owned a mortgage bank.  I met the man and soon thereafter began my career as a Mortgage Banker just 30 days after losing my job in electronics.

I was determined to accomplish three things:

1.       Work on commission and never work in the corporate world again

2.       Buy my first home

3.       Help my Mom and Dad buy their first home.

I’m happy to report that I have accomplished all three goals thanks to that nasty birthday surprise.

Stay Tuned: Next week, my mortgage education and house hunting

Take a look around here and find more great advice on buying your first home.

Follow me on Twitter! @tcurranmortgage – https://twitter.com/tcurranmortgage

Do you have questions?  Click on ASK TREVOR and I’ll respond to any and all inquiries, even if you’re not buying a home in
New York State.

Check out my Trulia profile HERE

Check out my Zillow profile HERE

Find me on TWITTER: @tcurranmortgage

Happy House Hunting!

Jan 312017
 

There are several reasons why Buyers can’t use FHA Financing for their home purchases. You would think that Homebuyers should have the full range of loan programs options available to them when making their financing decisions.  They DO!  But Buyers are too often getting discouraged and diverted from using FHA Financing by realtors, home sellers, and, yes, mortgage professionals.

And many of those Buyers don’t qualify for other types of financing, which makes these reasons all the more insidious and dastardly.

REASON 1: Inexperienced FHA Appraisers. Unfortunately, the FHA program has an incorrect reputation for “difficult” appraisals, i.e., appraisals requiring lots and lots of repair items prior to closing.  I hear often from real estate agents of the terrible experiences they had with FHA loans, specifically the appraisals. Thanks to the radical changes in our mortgage business since 2010, many very experienced Appraisers left the business. This deficit was eventually filled, especially as the economy improved, by new appraisers.

These Appraisers simply don’t have the necessary understanding of FHA appraisal standards. I reviewed once such appraisal yesterday. The Buyer found me after an intensive Google search for an expert mortgage professional on FHA 203k Renovation financing. She’s been trying to buy a bank-owned foreclosure property (REO) since last July!  The Lender she was working with simply couldn’t figure out how to make the financing work with the renovation financing.  When I reviewed the documents she submitted, I realized the main problem with her file was the appraisal.

First, this was a terrible appraisal all around: Incorrect purchase price, comments skewed all over the report instead of properly situated in the addendum, crazy comments on, and use of, comparable sales, and I mean CRAZY.  Secondly, and most importantly for this poor Homebuyer, the appraiser demonstrated a crystal clear LACK of understanding of FHA “health and safety” and property condition guidelines.  This appraisal is for a property in Westchester County, an area where I often hear the objection from realtors about their bad experiences with FHA appraisals.

REASON 2: Realtors’ bad experiences.  First and foremost, let me state this radical idea: NO ONE gets to tell a Home Buyer what type of financing they can or can not use to complete a home purchase. But too often, that’s exactly what happens.

Because Realtors have had a bad experience with an FHA transaction—or worse, they’ve “heard” of people having bad experiences—they strongly discourage Home Buyers from using this option.  I have personally had Realtors tell me on the phone, “Oh, no, they can’t use an FHA loan for this house.”  No kidding!  When I inquire as to the reasons why, there ensues a litany of false information embedded in the Realtor’s mind about how the FHA program works.  I will then explain that, since I work for the Lender, and have extensive experience with FHA financing, these ideas in their heads are, ummm…WRONG!

Let’s be clear: if a Realtor, or a home Seller, by extension, has had a bad experience with an FHA loan, that does NOT prevent a Buyer from going ahead with the financing of their choice.  I mean, what if these people once had a bad experience with home buyers who showed up driving silver four-door cars?  Would they be prevented from buying the home?  Of course not because that is just absurd!  Well, so is the idea that a Buyer cannot use their preferred (or ONLY) method of financing a home purchase.

REASON 3: Inexperienced or misinformed mortgage professionals.  The answers given to home buyers by mortgage professionals range from, “Oh, you cannot buy a home with FHA financing over $417,000 with less than 10% down.” FALSE. To, “You know, FHA financing is only for people with bad credit.” FALSE. To, “That program is only for First Time Buyers.” FALSE. To the all-time doozy, “My bank does not Offer FHA financing.” From the depository lender with the HUD Eagle on the front door!

Make no mistake, the lack of understanding of the FHA program and/or lack of experience/education by these professionals is probably the biggest reason why so many Buyers have difficulty using FHA financing (and why Realtors and Sellers have so many bad experiences).

What to do?

If you are buying a home using FHA financing, let NO ONE discourage you from using the loan program.  It’s an excellent program and has been available to home buyers for more than 80 years!  And, when selecting a mortgage professional, do your background research on that person’s experience in general (HERE on the NMLS Consumer Access website by clicking “Self-Reported Employment History” on an individual’s licensing profile) and for FHA financing specifically.  GOOGLE is your friend!

Do you have questions?  Click on ASK TREVOR and I’ll respond to any and all inquiries, even if you’re not buying a home in New York State.

Check out my Trulia profile HERE

Check out my Zillow profile HERE

Find me on TWITTER: @tcurranmortgage

Happy House Hunting!

Jan 252017
 

The National Association of Realtors (NAR) released their 2016 annual report. The good news: sales of existing Single Family homes (including Condos and Co-Ops) are the best in a decade. The bad news: Inventory of homes for sale hit a record low.

I’ve experienced this low inventory trend anecdotally through my experiences working with First Time Home Buyers here in New York.  

Lawrence Yun, NAR chief economist, said, “Solid job creation throughout 2016 and exceptionally low mortgage rates translated into a good year for the housing market,he said. However, higher mortgage rates and home prices combined with record low inventory levels stunted sales in much of the country in December.”

Here’s my advice to you First Time Buyers out there:

First, you must be prepared before you hit the streets looking for homes. If there are not enough homes available, but lots of Buyers walking around competing with you for that limited supply of houses, then being well-prepared can put you ahead of the crowd. One of the best ways to beat out another Buyer when competing for a house is to have “all your ducks in a row” even if your Offering price is LOWER! I’ve seen it happen, time and time again.

Second, you must strike while the iron is hot. If you see a home which comes close to your “Wish List” for location, features and price, present your OFFER the same day! The early bird gets the worm!

With homes inventory at record low I have also seen in my travels lots of homes that have no business being on the market! Yes, there are homes out there which you actually cannot or should not buy. The reasons are many and varied but they range from unrealistic Sellers with over-priced homes and a stubborn refusal to negotiate price to bad Listing Agents who tell you that your financing package won’t work for their Seller if it’s an FHA or VA loan to homes with serious physical or legal problems (mold in the basement; ancient and leaking roof; an extension without permits/certificates; a deceased owner with improperly filed estate documents, and etc., and etc.).

If you are prepared with a solid team of professionals they will guide you away from potentially harmful or crazy deals. Which brings me back to being prepared!

I have seen it time and again when existing home inventory is low: the Buyer who is clear-eyed and prepared wins and accomplishes their goal of homeownership!

Do you have questions?  Click on ASK TREVOR and I’ll respond to any and all inquiries, even if you’re not buying a home in New York State.

Check out my Trulia profile HERE

Check out my Zillow profile HERE

Find me on TWITTER: @tcurranmortgage

Happy House Hunting!

NEGOTIATE Your Offer: Hit Them Like a Freight Train!

 First Time Homebuyers, How-To Negotiate, Uncategorized, Veterans  Comments Off on NEGOTIATE Your Offer: Hit Them Like a Freight Train!
Jan 182017
 

I have a client making an Offer tomorrow on a multi-family house in The Bronx. This client—a First Time Buyer and a Veteran of the Armed Forces using VA financing—has been working very hard to find the right house.

Three weeks ago he was moments away from signing a contract to buy a home. He had done the home inspection and there were serious concerns about the property. He presented these concerns to the Seller through the Seller’s Agent, notably, a very bad roof and a serious water and mold problem in the basement. The Seller’s response: not gonna fix it. Have a nice day. Home inspection fee of $550 out the window; in the garbage; down the drain. Not really. “Money well spent,” I told my client. “You found out for minimal cost the potential money-pit-nightmare this house could become for you. Walk away.”

And walk away he did. Yesterday he saw another house he really likes. This time, I suggested we go at the Seller like a freight train bearing down on him.

Hit ’em hard. Provide a clear and concise layout of the price and terms of your Offer. Let me, the Mortgage Banker, speak to the Realtor about how well-qualified you are and the rapid timeline for an approval and closing. Put it all in writing. Have all your “ducks in a row” with the Offer spelled out with price and closing timeline, Attorney information, date for the home inspection, and your Prequalification Letter for VA mortgage financing.

As if that isn’t enough of a speeding train on the tracks, give the Seller a deadline: just over 24 hours to respond. Present your Offer mid-day Thursday; require a response by 3pm Friday. Tell the Seller’s Realtor you have appointments to look at other houses starting Saturday morning.

WOW. FREIGHT TRAIN!

Listen, anyone, any Buyer anywhere can do this. You need two things to see this through. One, have your Prequalification letter and your “team” lined up: Attorney, Home Inspector, Mortgage professional. Two, just DO IT. You have nothing to lose and everything to gain. You’ll find out if the Seller is serious; if they really want to have a constructive dialogue with a Buyer; if the Realtor is a serious professional.

Line ’em up on the tracks, make your Offer, run at them like a freight train and hit ’em hard. I promise you, this method WORKS.

Do you have questions?  Click on ASK TREVOR and I’ll respond to any and all inquiries, even if you’re not buying a home in New York State.

Check out my Trulia profile HERE

Check out my Zillow profile HERE

Find me on TWITTER: @tcurranmortgage

Happy House Hunting!

May 182015
 

inspector 1You definitely want to be present at the inspection; budget anywhere from 2 to 5 hours for the inspection. Dress as if you might get dirty; bring a flashlight. You’ll go through the house side by side with your Inspector. After the inspection, your Inspector will discuss with you any major issues you need be aware of to discuss with your Attorney. You’ll get a written report shortly after the inspection day.

Typically your Home Inspection will alert you to problems in five key areas, and these key areas directly relate to the contract of sale in a New York home purchase:

1. Foundation: sound and solid
2. Roof free of leaks
3. Plumbing working and leak-free
4. Heating system sufficient and operating
5. Electrical system sufficient and up to code

image w definitions

If there is a serious problem with any of these five items, typically the Seller has a responsibility under the terms of the contract of sale to repair the problem at their expense, not the Purchaser’s expense. Sometimes a Purchaser will receive a credit at closing to repair one of these items (assuming the home and the defective issue has not compromised the Lender’s appraisal). When the Purchaser receives a credit at closing, the amount of the credit is based upon legitimate estimates for repair and negotiations between the Attorneys representing each party.

Other items you discover are in need of repair/upgrade (i.e. dishwasher not operating properly; air conditioner on second floor inoperable, etc.) can be negotiated for a repair credit or replacement at the Seller’s expense. Again, these negotiations are typically handled by the Attorneys.

It is not as common as you might think that a purchase price is reduced due to repairs from a Home Inspection. Best to consult with your Attorney for more detailed information in this area.

 

 
Do you have questions?  Click on ASK TREVOR and I’ll respond to any and all inquiries, even if you’re not buying a home in New York State.

Check out my Trulia profile HERE

Check out my Zillow profile HERE

Find me on TWITTER: @tcurranmortgage

Happy House Hunting!

What Is The Future of the Real Estate Market?

 First Time Homebuyers  Comments Off on What Is The Future of the Real Estate Market?
Aug 232013
 

What Is the Future of the Real Estate Market:

Buy NOW with a 30yr Fixed Rate mortgage

I recently answered a question on TRULI.com  about the future of the real estate market.  Here’s what I had to say about that:

The future of the real estate market is the past: it is CYCLICAL. As with many other markets—commodities, stocks and bonds, comic books and baseball cards—prices, values and activity go UP and they go DOWN.

If you seek to buy a home to live in and to reap the intangible benefits of homeownership, then the LAST thing you should be thinking is about market peaks and valleys. Create your “dream list” of location and features you want in a home. Get prequalified for mortgage financing so you know your limits in terms of the monthly payment for a mortgage loan. Then jump in the water, so to speak, and buy your home.

 

If, on the other hand you’re attempting to “time the market” well,

Good Luck with that.

In my nearly 24 years working in this field, I’ve seen many different “markets” come and go. But one thing has been constant: many people want to live in a home of their own. To them it doesn’t matter what the “market” is doing.

 

 

I welcome Comments for all my blog entries

but they must be approved.

I will be happy to review and approve all legitimate comments provided by readers of tcurranmortgage.com. I do not permit unfettered access to comments for obvious reasons: mortgage spammers and their ilk.

If you wish to Comment on any entry, please do so and I will quickly review and approve.

Thanks for reading tcurranmortgage.com.

Hope that helps!

Definitions: Earnest Money Deposit or EMD

 Definitions, First Time Homebuyers, The Affordable Home, Veterans  Comments Off on Definitions: Earnest Money Deposit or EMD
Aug 192013
 

Earnest Money Deposit or EMD

When you sign a contract to purchase a home, you’ll provide an “earnest money deposit” to be held until closing in an escrow account by the attorney for the homeowner. If you are purchasing a HUD Home the EMD check is presented with your Offer by the HUD Approved Broker in the bidding process.

If you’re applying for an FHA loan, the EMD usually equals your 3.5% down payment. If you apply for other types of financing—-VA or Conventional—then your  Real Estate Agent or Attorney will guide you as to the amount requested by the Seller.

There is no “set” or required amount for the EMD, although many Sellers’ often request 10% of the purchase price. This is a matter of some negotiations between your Real Estate Agent/Attorney and the Seller’s Agent/Attorney.

For example, what if you’re closing out a CD for your entire down payment but you only have $10,000 cash on hand for the EMD today? It’s important to discuss with your Real Estate Agent/Attorney before you come in to sign the contract the amount of the EMD.

Do you have questions?  Click on ASK TREVOR and I’ll respond to any and all inquiries, even if you’re not buying a home in New York State.

Check out my Trulia profile HERE

Check out my Zillow profile HERE

Find me on TWITTER: @tcurranmortgage

Ask Trevor A Question

How To Buy A HUD Home

 First Time Homebuyers  Comments Off on How To Buy A HUD Home
Aug 192013
 

How to buy a HUD home

1. You must have a Prequalification letter from an FHA Approved Lender
2. You must present your bid/Offer through a HUD Registered Real Estate Broker
3. Helpful Hint: when you make your Offer, add a 2 digit number to the end of the bid price. Example: $357,019 instead of $357,000.
4. You’ll need a Cashier’s check to present with your Offer; the HUD Real Estate Broker will advise of the amount.
5. You can request a renovation loan with your Offer: ask for the 203k Streamline
6. Have a GREAT Home Inspector lined up
7. Have a GREAT real estate Attorney lined up
8. Make your bid and GOOD LUCK!

Find HUD Homes at the HUD Homestore: http://www.hudhomestore.com/Home/Index.aspx

My friends at Yahoo! Finance’s “Destination Home” Series provide a great summary on buying HUD Homes:
How To Buy A Home for $15,000

I welcome Comments for all my blog entries but they must be approved.

 I will be happy to review and approve all legitimate comments provided by readers of tcurranmortgage.com. I do not permit unfettered access to comments for obvious reasons: mortgage spammers and their ilk. If you wish to Comment on any entry, please do so and I will quickly review and approve.

Thanks for reading tcurranmortgage.com.

Hope that helps!

How-To Convert from “Renter” to “Homeowner”

 First Time Homebuyers, Rent Vs. Own, The Affordable Home, Veterans  Comments Off on How-To Convert from “Renter” to “Homeowner”
Aug 182013
 

Rent today; Buy tomorrow. ???????????????????????????????How to convert from Tenant to Homeowner.

When I rented my first apartment in Astoria, I did not want to be a Tenant my whole life and pay my Landlord’s mortgage. I longed to become a Homeowner.

That’s why I found my way into the mortgage business in 1989 and soon afterward became a Homeowner. Here are the fundamentals any Tenant should know to prepare to become a Homeowner in the future, no matter when that might be.

Credit: Establish 3 credit accounts, no more than 5. Pay your bills on time. Keep your balances to no more than 50% of your credit limit. Don’t pay off the accounts in full. Keep balances active for 12-24 months. All of the above will provide both a good credit score and adequate credit history to qualify for a mortgage loan.

Assets: A basic savings budget isn’t hard to accomplish. Pay your rent first in your budget; then set aside 10% of your income before taxes . Make it a budget priority and you’ll still have money left over for entertainment and restaurants and clothing.

How much money do you need to buy a home? Many buyers spend no more than $25,000 to buy their first homes. There are loan programs with low down payment requirements and many real estate agents negotiate for their Buyers a “Seller’s concession” to include the Buyer’s closing costs (which are HIGH here in New York!) in the price of the home.

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Imani got the keys to her new home with a VA Loan

 

Income: Two years consistent income is the basic requirement for either a salaried individual or a self-employed person. Income from Bonus, Commission, and Overtime is treated differently and is best discussed with your Mortgage Banker.

Market Survey: it doesn’t hurt to go out and get to know neighborhoods where you might like to buy a home. Visit open houses on Saturdays and Sundays. It’s okay that you’re not yet buying; tell the Realtor at the Open House you’re just beginning your “survey.” You’ll also get to know market prices for different kinds of homes. It’s okay to “window shop” homes on the weekend at Open Houses!

I hope these fundamentals will help you better understand the path to homeownership is a process that, with preparation and dedication, you can move through easily.

George S. converted from Renter to Homeowner!

George S. converted from Renter to Homeowner!

Do you have questions?  Click on ASK TREVOR and I’ll respond to any and all inquiries, even if you’re not buying a home in New York State.

Check out my Trulia profile HERE

Check out my Zillow profile HERE

Find me on TWITTER: @tcurranmortgage

Ask Trevor A Question

Never Fall In Love With The House

 First Time Homebuyers, How-To Negotiate  Comments Off on Never Fall In Love With The House
Aug 162013
 

RULE NUMBER ONE in my Playbook for First Time Buyers: NEVER FALL IN LOVE WITH THE HOUSE.

Of course, you often have no choice. The reason is simple: buying a home is a very emotional process. You’re going to LIVE there! You’ll create new life experiences and, frankly, that’s emotional.

But when you’re shopping for a home and you want to win at negotiations with a home Seller, or, you just want to be treated with respect by crazy aggressive real estate agents, you have to tamp down your emotions.

 

I believe in the negotiating tactic of “first one to leave the negotiating table wins.”

That’s really what I mean by “never fall in love with the house.”

How To WIN:

1. Move quickly: Offer your price promptly, don’t explain your price, and sit back and wait for the Seller’s response.
2. Be prepared to sign a purchase agreement (contract of sale) and get your home inspection immediately your Offer is accepted.
3. Watch the Seller’s reaction to your prompt, efficient moves.

  • Does the Seller respond in a timely manner?
  • Does the Seller’s real estate agent put up barriers to your Offer being presented/accepted?
  • Is communication between all parties clear and concise?
  • Are the other parties driving you kinda sorta NUTS with ridiculous statements and/or demands?

 

If you get a negative or confusing reaction to these focus points then you need to WALK AWAY. Let the Seller chase after you. IF the Seller is serious about selling the home, they’ll come running after you. IF they have unrealistic expectations on price and/or terms then your walking away is going to save you a lot of headaches.

Don’t fall in love with the house;

be prepared to walk away so you can get what you want.

Do you have questions?  Click on ASK TREVOR and I’ll respond to any and all inquiries, even if you’re not buying a home in New York State.

Check out my Trulia profile HERE

Check out my Zillow profile HERE

Find me on TWITTER: @tcurranmortgage

Ask Trevor A Question