Gettin' a Mortgage Loan

Buying a home will most likely involve getting a mortgage loan. To get a mortgage loan, you need to work with a mortgage loan officer. This mortgage loan officer will need a handful of documentation from you to basically give you the biggest credit card that you will ever get to shop with!! Really, who else gives you a couple hundred grand and tells you to find the home of your dreams?!! So, to get that big a&$ credit card, you need to prove that you can pay it back on a month to month basis; thus the need for the amount and type of paperwork. (Digression: Have you read, If You Give a Mouse a Cookie? Doesn't this paragraph remind you of the book?!!)

Here is what I recommend, find a great mortgage loan officer. Don't choose your neighbor's sister-in-law's-second cousin by marriage because you feel that you HAVE TO (don't do this with your real estate agent either...chose who is a fit for YOU!).  Ask around for a few referrals. If you have a friend who recently bought a house, ask them who they worked with on their mortgage. If they were happy with their lender/mortgage loan officer, get the contact info; because chances are that if your friend is happy with their lender you will be too. Ask your real estate agent as to who has a great reputation in the mortgage industry. Your real estate agent will be your best resource on many things, so pick their brains, and use them to find not only your home but people they have experience working with. Feel free to ask for a couple of names of different lenders so you can interview the lender. Buying a home is a HUGE investment obviously, but also a huge time and emotional investment. Work with someone you are comfortable with on the real estate side as well as the financial side. Your lender is HUGE in making sure your transaction closes in a timely manner. So choose wisely my friends. 

To get pre-approved for a mortgage loan, your lender will ask you for various documents that will prove you can afford the payment. The more organized that you are with your documentation, the better they can serve you. If they have to wait on documentation from you, it will hold up the whole process. Your lender is there to help YOU get the best loan program at the best rate for you so when they ask you for documentation, they are not compiling the info for any other reason than to help you get into your dream home.  To prove you can pay back the mortgage, the loan officer will ask for these documents:

• Where the down payment is coming from (checking account, saving account, gift?)
• Last Two Years of your W-2's
• Last Two Years Personal Tax Returns filed with IRS (all schedules)
• Thirty Day Current Pay Stubs
• Two Months Current Bank Statements for ALL accounts (all pages)
• Investment Accounts/401k and Retirement Statements (most current, all pages)
• Homeowners Insurance Agent Name and Number
• Copy of Mortgage Statement
• Proof of Taxes/HOA-other properties

And if any of these apply, you will need to supply this documentation as well: 

If Retired

• Social Security Award Letter
• Pension Award Letter
• Last two years 1099s

for a VA Loan:

• Copy of DD214 
• Certificate of Eligibility 

For USDA Loan:

• Proof of Income for Non Borrowing Household Members

BUT WAIT, there's more: 

• Copy of Mortgage Note/Agreement for Sub 2nd
• Copy of Permanent Resident Alien Card (s)/ Visa
• Divorce Degree
• Child Support Order
• Bankruptcy Papers and Discharge Notice
• Rental Agreements for all Properties Owned
• Copy of Drivers License

So, there is a theme here. To get a mortgage loan, you will have to show documentation that proves you can pay this loan back on a monthly basis. The mortgage loan officer/lender/insert your favorite title here, is working on YOUR behalf.  Do your research, interview real estate agents, mortgage loan officers and get your paperwork ORGANIZED and ready to roll. The more YOU are on top of the game, the better everyone working on your behalf can do their jobs. 

It is always my goal to make this process as painless and stress free as possible, but, I, along with your lender, will NEED you to be Johnny-on-the-Spot getting this documentation in!! And, if you are not in the best place financially, or need to know how to fix your credit so you can be in a position to purchase in your near future, call me and I will help you get on the right track! 

Till' next time peeps! 

Disclaimer:  All information listed in the bullet points came straight from a  Guild Mortgage handout I received on April 21, 2015. If you would like a copy of this flyer, let me know and I will get it to you!

And my normal disclaimer:
*Disclaimer: I do not claim to be a professional writer nor am I am proficient in where to place commas, when to italicize (or is it appropriate to italicize or use parenthesis?) and that my sentences are grammatically correct. I am merely releasing all the thoughts that are in my brain and sharing them with you. If you enjoy my posts GREAT but I know they are written with many errors. Taking a creative writing class or a grammar class is next on my “to do” list. I promise. I also like to use double exclamation points!!!! (sometimes more than 2 and sometime a question mark and exclamation point!) I am  NOT a licensed mortgage lender, property manager, credit expert, professional negotiator or anything of that nature.. This is strictly "good info" to know regarding Real Estate as I learn it on the job!

Real Estate Transaction In Bullet Points

So often I work with new home buyers or people who haven't purchased a new home in a very long time so here is a quick guide to the real estate transaction. Feel free to share this with your network of friends! 

 Real Estate Transaction In Bullet Points

• Once the purchase offer is submitted by buyer, the seller has a chance to say Yes or NO
• If NO/NOT accepted, then there isn't else to to do. Finito!
• If the answer is YES then the seller signs the contract, sends it back to the buyer. 
• The earnest money is submitted to the title company by a cashiers check or wire transfer, within the time-frame that is agreed upon on the contract.
• Within  10 days of the offer being accepted by the seller, the buyer will have the home inspected by a licensed home inspector. This is the time for the buyer to all their research on the property. Research includes but is not limited to: schools, crime rate, evidence of mold, evidence of termites AC/HVAC inspections, pool inspections, etc. 
• The home inspector will provide a report, which then will be reviewed by your real estate agent and ask the seller to make some repairs
• Right after the home inspection, the appraisal will be ordered by the lender. As long as the appraisal comes back at the sale price or above the sales price, you are good to continue on in the transaction. If the appraisal comes back lower, there are a few negotiations that will come into play.  
• If the transaction is going smoothly, the next step is that of the lender. She will send loan documents to the title company. The title company will schedule times with the both the selling party and buying party to sign all documentation for the transaction. 
• Once the documentation is signed, the title company sends the signed paperwork back to the lender and the lender "funds" the loan. (ie., the seller gets paid, or the mortgage loan is satisfied!)
• Once funded, the title company takes the whole package to the county recorders office. 
• The county recorder records the deed in the county records and we have a closed transaction! The county communicates with the title company that the deed has been recorded, the title company calls the buyers and sellers real estate agents and the buyer's are handed the keys to their new home!

Sound simple? It can be, but that is not always the case!

Please know this is a VERY BRIEF OUTLINE of the real estate transaction. A real estate transaction is not, by any means,  simple. You should always consult a licensed Realtor for your particular situation. Your Realtor will work on your behalf to make sure the transaction is handled professionally and legally. A real estate transaction is very layered and is interpreted differently by everyone involved in the process. 

*Disclaimer: I do not claim to be a professional writer nor am I am proficient in where to place commas, when to italicize (or is it appropriate to italicize or use parenthesis?) and that my sentences are grammatically correct. I am merely releasing all the thoughts that are in my brain and sharing them with you. If you enjoy my posts GREAT but I know they are written with many errors. Taking a creative writing class or a grammar class is next on my “to do” list. I promise. I also like to use double exclamation points!!!! (sometimes more than 2 and sometime a question mark and exclamation point!) I am  NOT a licensed mortgage lender, property manager, credit expert, professional negotiator or anything of that nature.. This is strictly "good info" to know regarding Real Estate as I learn it on the job!

How Well Can You Negotiate?

Even if you don't think you negotiate on a daily basis, you do. I negotiate with my kids, husband, family, friends, clients, other real estate agent and even with myself.  There are days when I am SO on top of my game. Really. I can out negotiate my children, which is HUGE and by far more challenging than negotiating with another real estate agent. Can I get an "Amen?" Let's hear it for our children, some of the best negotiators out there!

Recently I was involved in a situation where I literally had an internal break down while trying to negotiate a simple transaction. I think my biggest block was how incredibly defensive the other person in the situation was in regards to what I thought were reasonable requests. I pointed out a few items that weren't completed up to standard and the other person pointed out my errors in writing out what items I requested to be completed. Sounds fair, right? Right. Well, I shut down. I knew no matter what I said, how nice I could have said it, the situation was not heading in a healthy negotiation.  I firmly believe that I am an excellent Realtor. I am moral, have integrity, represent my client to the fullest, I follow the rules, understand the contract, follow the time lines, play well with others and do what I can to keep all parties in the transaction happy. So, what's the deal this time Camille?

I think it is a combination of a few things. For starters, frustration. I was frustrated as to where the emails were headed, down the accusatory and defensive lane, so not how I play the game. Secondly, high expectations. Here I go expecting all parties involved to be playing with the same set of rules. Note to self, before my next contract negotiation, I will be sure that the other player is aware of my rules. I won't expect anyone again to live up to the expectations I hold for myself. Third, and lastly, professionalism. I will never let myself be anything but the consummate professional. My name is my brand in this business and I don't want to be associated with playing the game in any way that is less than professional. So, now what to do with these revelations?

Like everyone, I turned to my BFF Google. I searched online for negotiation experts and negotiation tips and came across this great article written by  an an attorney. https://www.themuse.com/advice/negotiation-101-expert-advice-for-getting-what-you-want. Great stuff. When I worked at NSA  there were a handful of speaker's with the expertise of negotiating, so if you want additional info, check out that site too. So much to learn in such a little amount of time. I also have a friend who is a trained negotiator for the FBI, so perhaps I need to pick her brain. Although she is trained to negotiate with criminals, I am sure she will be able to teach me the skills to not shut down out of frustration.  She will be a wealth of information for me too, but then again, I have seen her six year old try to out negotiate her, so maybe I just need to take notes again from our children!

Being a Realtor is like being a college student. Each transaction is the equivalent of a semester in college. You learn and grown and then keep learning and growing again. This post may be off the beaten path of tip, tricks and how-to's in real estate, but it's a significant lesson that we can learn as a life skill. My lesson this "semester" was to figure out why I let this situation affect me like it did and not repeat that internal break down in the future.

What is your biggest challenge with negotiations, whether it be with a family member, an ex-spouse, co-worker, your boss or child? I would love to hear them. Feel free to post here OR join me on my Facebook Business page: https://www.facebook.com/pages/Camille-Kooi/486468058073154

I think the next blog post will be an exploration on my conflict management skills....stay tuned but don't hold your breath because who knows what will come up between now and then!

*Disclaimer: I do not claim to be a professional writer nor am I am proficient in where to place commas, when to italicize (or is it appropriate to italicize or use parenthesis?) and that my sentences are grammatically correct. I am merely releasing all the thoughts that are in my brain and sharing them with you. If you enjoy my posts GREAT but I know they are written with many errors. Taking a creative writing class or a grammar class is next on my “to do” list. I promise. I also like to use double exclamation points!!!! (sometimes more than 2 and sometime a question mark and exclamation point!) I am  NOT a licensed mortgage lender, property manager, credit expert, professional negotiator or anything of that nature.. This is strictly "good info" to know regarding Real Estate as I learn it on the job!