Finally, after three tenuous years, as the aviation field began to return to more of a normal activity level, Jim was able to find a good paying job.  They began chipping away a little at a time at the insurmountable debt that had accumulated.

Though they wanted to own their own home, the Smiths just guessed that it would be many years before they could repair their credit enough to be able to become homeowners.  After a couple of years at his new job, Jim thought it might be time to explore the possibility of obtaining a mortgage so he could see his dream come true of providing a nice home for his family.  What he was told was alarming for Cindy and him.  The loan officer told them that the only loan they could be approved for was a sub-prime loan with a high interest rate.  When they saw how high the monthly payment was going to be, they had to decline moving forward with the whole plan.

At first they felt hopeless.  A few months later they saw a public announcement in the local paper for a homebuyer seminar that my brother, John and I conduct in our community.  One of the issues we covered was how to buy a home even with bruised credit.  They attended and based on what was being taught, thought why not try again at the homebuying process.

A week after the seminar Jim met with me for a homebuyer consultation meeting.  We both knew how vital mortgage pre-approval was and so I connected him with John, who is a loan officer with Allied Home Mortgage.  John discovered that Jim was eligible for a VA (Veterans Administration) loan.  He gave Jim a plan of action on some lingering credit issues that needed to be resolved in order to get an approval.  Jim followed the plan of action to the “T” and then a few weeks later John was indeed able to get them pre-approved.

We then looked at about ten homes until we found just the right place for the Smith family.  We made an offer and it was accepted.  I’ll never forget the look on Jim’s face as he sat there in amazement in our office over the fact that John was indeed able to get him approved with a government guaranteed VA loan.  “I thought it would still be many more years before we could own our own home.”  He was under the misconception that he would have to pay off all his debts before he could own his own home.

It very well could have taken a number of years had the Smiths not been willing to get the homebuyer education, inspiration, and plan of action needed to accomplish the American dream of owning their own home.  Willingness to sacrifice plus a reachable plan leads to goals accomplished.

I have lost a substantial amount of business because I did not explain why everyone needs their own realtor.  here’s a letter I wrote this morning.  it may need some tweaking but it might help you save some deals.

Here’s the letter:

Thank you for your interest in homes in the Jacksonville area.  I will begin to send you current listings of homes that meet the criteria you have provided.  I just ask that if you see any that look interesting to you please give me a call or email so I can pave the way for you in the process and give you the legal representation you deserve.

Some buyers make the mistake of walking into a listing or a new construction site and beginning the process without the aid of their Realtor.  When this happens you will usually lose the ability to have legal representation in the transaction.  What’s even worse is that you are still paying for the service of a Realtor but not getting his or her services. When you see a sales price of a listed home or a new construction home, your Realtor’s commission is built into that sales price and it does not matter if you use a Realtor or not, you’re still paying for one.

For example, let’s say you’re looking at a home with a sales price of $250,000.  That sales price pays a 3% commission to the listing agent and a 3% commission to the office of your Realtor.  If you don’t bring your Realtor into the picture from the very beginning you are still paying a whopping $7,500 for a Realtor and not getting anything for your hard earned money.  Now you have tilted the deal in the favor of your seller because they have a Realtor and you don’t.  Buyers that go this route never get all they are entitled to because they don’t have a Realtor fighting for their best interests.

Another way to look at it is that in reality you are paying $15,000 for both Realtors since both commissions are built into your sales price.  If you don’t have a Realtor you’re actually paying another Realtor $15,000 to legally represent the seller of the home.  This is true for both resale homes and new construction homes.  Listing agents and site agents really love when you don’t have a Realtor… for obvious reasons.  Always insist that you are working with your own Realtor and don’t sign anything until you’ve gotten your Realtor there to help you.

Keep in mind that my services are totally free to you in the sense that you don’t pay me a thing out of pocket (except a $195.00 transaction fee at the closing table as part of your closing costs).  The commission for my services are built into the price of the home.  The reason the Realtor on the other side of the transaction does not tell you this is because if you don’t have a Realtor, he or she gets to keep that whole commission for their own pocket, not to mention that they won’t tell you what you can ask for and require in the deal in terms of inspections, repairs, closing costs, etc.  Not having your Realtor fighting for you could actually cost you thousands of dollars.

I share these things with all my homebuyers so you can be best equipped and get everything you’re entitled to in the purchase of your first home.

Call me if you have any questions.

This notice applies to FHA single family mortgage insurance programs. This notice announces FHA’s planned implementation of risk-based premiums, which are designed for mortgage lenders to offer borrowers an FHA-insured product that provides a range of mortgage insurance premium pricing, based on the risk the insurance contract represents

Borrower Information:

_x___Copy of Driver’s License

_x___Copy of Social Security Card

____Copy front and back of Alien Card

____Military Separation Papers Form dd214

_x___Certificate of Eligibility

Income Information:

____Copy of most recent pay stubs for each borrower covering 30 days of pay

__x__Copy of most recent Leave and Earnings Statement (LES)

__x__Copy of most recent TWO years W/2 for each borrower

____Copy of recent awards letter for benefit income (Social security / retirement)

____Copy of most recent two years 1099R forms for benefit income

____If self employed, ONE / TWO Year Business License

____Last ONE / TWO Years Personal and Business Tax Returns

____Copy of Lease(s) for any investment properties

____Employers name, phone #, and address for last 2 years

_x___*Two months bank statements to verify sufficient funds to close, all pages.

Credit Information:

____Mortgage information (name, phone #, account #)

(if private holder, need 12 months canceled checks)

____Landlords name, address, phone number & Fax #

____If second mortgage, need copy of first mortgage note (all pages).

____Copy of Bankruptcy papers, complete to include all schedules

____Signed statement for purpose of loan (reason for cash out)

____Signed statement for any credit issues (late payments, bankruptcy, etc)

____Copy of complete divorce decree and property settlement

____Copy of most recent statement for each account to be paid off

_x___Residence information for the last 2 years

Property information:

____Appraisal of the subject property

(I will order this; you will need to pay for it at the time of inspection)

____Copy of Property Survey if available

____Copy of Homeowner’s Insurance Declaration Page

____Copy of Flood Insurance Declaration Page, if in Flood Zone

____Copy of Purchase Contract, must be signed by all interested parties

____Copy of Pest Inspection from a licensed inspector, clear of any infestation

____Title Report for subject property, (prior title if Refinance)

____Copy of Land Contract/Purchase-Lease Option Contract

____$_____ Appraisal fee written to _______________________________________ .

____Payment Coupon of current mortgage.

Contingencies:

___ Sale of current home located at <<Present Address>>. Obtain executed HUD-1 or equivalent closing statement.

If relocation, obtain executed buyout agreement (evidencing mortgage will be paid by employer/relocation company) and closing statement.

Other items that may be needed:

John Elian
Allied Home Mortgage Capital Corporation
11555 Central Parkway #704
Jacksonville, FL 32224
904-722-9770 phone
904-722-9773 fax
904-838-9117 cell
www.mortgage500.com
email: mgr1621@alliedhomenet.com
click the next hyperlink for a detailed map of our office location. http://www.google.com/url?oi=map&sa=X&q=http://maps.google.com/maps%3Foi%3Dmap%26q%3D11555%2BCentral%2BParkway,%2BJacksonville,%2BFL

There are many reasons why you should get an FHA loan…here are just a few:
• Easier to Qualify – Because FHA insures your mortgage, lenders are more willing to give loans with lower qualifying requirements so it’s easier for you to qualify.
• Less than Perfect Credit – Even if you have had credit problems, such as bankruptcy, it’s easier for you to qualify for an FHA loan than a conventional loan.
• Low Down payment – FHA has a low down payment requirement ranging from 1.25% to 2.85% with a 3% investment requirement, and that money can come from a family member, employer or charitable organization. Most other loans don’t allow this.
• Costs Less – In most cases FHA loans have competitive interest rates because the loans are insured by the Federal Government. Always compare an FHA loan with other loan types.
• Help You Keep Your Home – The FHA has been around since 1934 and will continue to be here to protect you when the others walk away. Should you encounter hard-times after buying your home, FHA has many options to help keep you in your home and avoid foreclosure.
• Assumable – FHA loans are assumable to qualified owner-occupant borrowers. If interest rates increase your lower rate FHA loan could be more attractive to a potential homebuyer thus providing you a huge marketing advantage over competing homes in your area.
Why not take advantage of the many benefits and protections that only come with FHA. There is more to buying your home than just the monthly house payment. Why not ask for an FHA loan that will help you buy and perhaps sell your house and keep it too? FHA is a wise choice.

For more information on FHA loans call us at 904-722-9770.