The Lending Coach

Coaching and teaching - many through the mortgage process and others on the field

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Slowing Down the Game and Getting into “The Zone”

Ball on rubber

We’ve all heard about the game can seem to move at a slow pace for my players who are “in the zone”…so how can a player get there?

man wearing black cap with eyes closed under cloudy sky

Many athletes, and baseball players in particular, use multiple techniques to focus and help the game “slow down”, allowing them to perform at their best in high-pressure situations.

Here are seven strategies that involve mental and physical practices that players can use to enhance their concentration, reduce anxiety, and improve decision-making.

Here are some key ways players achieve this focus that can allow the game to “slow down”:

1. Pre-Game Routine

Players often establish a consistent pre-game routine that helps them get into the right mental state. This routine can include activities like stretching, visualization, listening to music, or engaging in breathing exercises.

By following the same steps before every game, players create a sense of familiarity and control, which can reduce pre-game jitters and increase focus.

2. Visualization

Visualization is a powerful technique used by many athletes, including baseball players. They mentally rehearse different scenarios they might encounter during the game, such as hitting a fastball or making a difficult catch.

Pitched ball

By visualizing success, players can build confidence and prepare their minds for actual gameplay. This mental rehearsal helps players anticipate actions and reactions, making real-time decision-making more instinctual and less rushed.

3. Mindfulness and Breathing Exercises

Mindfulness practices and controlled breathing exercises help players stay present and calm under pressure. Techniques such as deep diaphragmatic breathing or box breathing can slow down the heart rate and reduce anxiety.

Staying mindful allows players to focus on the current pitch or play without being distracted by past mistakes or future outcomes. This heightened state of awareness helps them process information more clearly and react more deliberately.

4. Focusing on the Process

Experienced players often emphasize focusing on the process rather than the outcome. This means concentrating on what they can control, such as their stance, swing mechanics, or fielding technique, rather than worrying about the result of a hit or play.

By breaking down the game into smaller, manageable tasks, players can maintain a high level of concentration and prevent the game from feeling overwhelming.

5. Positive Self-Talk

Frowns and smile

Positive self-talk is another crucial technique. Players use affirmations and encouraging phrases to maintain a positive mindset. This practice helps combat negative thoughts that can lead to anxiety and distraction.

For example, a hitter might remind themselves of their strengths or recall past successes before stepping into the batter’s box. Positive self-talk reinforces confidence and keeps the mind focused on the present task.

6. Developing a Strong Mental Game

Mental toughness is developed through experience and intentional practice. Many players work with sports psychologists to enhance their mental game. These professionals provide strategies to deal with pressure, maintain focus, and bounce back from setbacks.

Techniques such as goal setting, mental imagery, and relaxation exercises are often part of this training. Building a robust mental game enables players to stay composed and focused during critical moments.

7. Staying in the Moment

In high-pressure situations, the ability to stay in the moment is crucial. Players practice grounding techniques to keep their attention on the immediate action.

Mind bookcase

This can include focusing on sensory details, such as the feel of the bat, the sound of the ball hitting the glove, or the sight of the pitcher’s release point.

By anchoring themselves in the present moment, players prevent their minds from wandering and maintain a clear focus on the task at hand.

In Conclusion

Baseball players can use a combination of things, ranging from pre-game routines to grounding techniques to enhance their focus and slow the game down.

 These strategies help them manage pressure, stay calm, and perform at their highest level, ultimately contributing to their success on the field.

The Lending Coach

The Importance of the Home Inspection

Hard hat and gloves

Home inspections are a critical step in the home-buying process, offering buyers a detailed assessment of a property’s condition.

These evaluations provide valuable insights that can affect purchasing decisions, safeguarding that buyers make informed choices.

Inspector at window

Hidden Issues

Firstly, home inspections are essential because they uncover hidden issues that may not be visible during a casual viewing.

Many potential problems, such as structural damage, plumbing issues, or electrical faults, can go unnoticed without a thorough inspection. A professional home inspector examines every aspect of the property, identifying defects that could require significant repairs.

By revealing these issues early, buyers can avoid unexpected expenses and make better-informed decisions about whether to proceed with the purchase.

Negotiation Opportunity

Home inspections can also provide buyers with valuable leverage during negotiations.

Inspector on roof

If the inspection report highlights significant defects or necessary repairs, buyers can use this information to negotiate a lower purchase price or request that the seller address the issues before closing.

This negotiation power can result in substantial savings or improvements that enhance the property’s value, making the investment more worthwhile.

Ensuring Safety

The overall safety of the home is another critical reason for conducting inspections.

Inspectors check for safety hazards such as faulty wiring, mold, asbestos, or radon gas, which can pose serious health risks to the occupants. Identifying these dangers before purchasing allows buyers to make informed decisions about their safety and well-being.

It also provides an opportunity to address and mitigate these hazards before moving in, ensuring a safer living environment.

Valuation Help

Moreover, a home inspection helps validate the property’s value. The inspection report offers an objective assessment of the home’s condition, which can confirm whether the asking price is reasonable.

Negotiations

If the inspection reveals that the property is in excellent condition, it can justify the price and give buyers confidence in their investment. On the other hand, if significant issues are found, buyers can reconsider the value proposition and potentially renegotiate the price or walk away from the deal.

Peace of Mind

Beyond the practical benefits, home inspections provide buyers with peace of mind.

Knowing that a professional has thoroughly evaluated the property reduces the uncertainty and stress associated with buying a home. This assurance allows buyers to move forward with greater confidence, knowing that they have made a well-informed decision.

The peace of mind gained from a home inspection is invaluable, particularly when making such a significant financial commitment.

Planning for Future Expenditures

Finally, home inspections facilitate future planning for buyers. The inspection report not only identifies current issues but also provides insights into potential future maintenance needs.

Wood roof and coins

Understanding the condition of major systems and components, such as the roof, HVAC system, and foundation, allows buyers to budget for future repairs and replacements.

This proactive approach helps buyers manage their investment more effectively and avoid surprises down the line.

In Conclusion

Home inspections are truly an indispensable part of the home-buying process. They uncover hidden issues, offer negotiation leverage, ensure safety, validate the property’s value, provide peace of mind, and facilitate future planning.

By paying up-front for a professional home inspection, buyers can make informed decisions, protect their health and financial interests, and plan for a secure and well-maintained home.

If you’d like to talk more about the steps involved in the home buying process, don’t hesitate to contact me!

The Lending Coach

The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deductions.

Do You Need a Real Estate Agent When Buying New Construction?

Newly Built Home

Do you need a real estate agent when buying a newly built home?  Can you just use the builder’s representative?

It’s important to understand that as a buyer, when you walk in a new construction site, that on-site agent that’s working in that model home does NOT represent the buyer. They’re representing the builder, and it’s their job to get the builder top dollar and under the best conditions.

Home drawings

The pros of using a real estate agent for new construction FAR outweigh the cons…and it’s not even close.

What Can Happen When You Visit New Construction Without a Realtor?

In many cases, if you visit a builder’s office by yourself, once you sign into a builder’s sales office without your own real estate agent, they may not allow you to have one.

As a buyer, you may be out of luck having a buyer’s agent represent your best interests.

Unfortunately, sometimes nothing is posted anywhere at the builder’s sales center that tells you this. It may be posted in multiple listing services (MLS), but only real estate agents will see it…and that doesn’t do you much good.

Table and seat

So, don’t sign your name or provide other contact information when you visit a new construction development if you are going there without your real estate agent. Instead, speak with your agent regarding new construction.  Have them accompany you on your visit to the builder’s site.

Having your real estate agent with you will be one of the smartest things you can do as a buyer.

Negotiations

Negotiation is critical area where real estate agents prove their value.

Purchasing a new home often involves negotiating with builders and developers, who typically have their own interests at heart.

Real estate agents are skilled negotiators, adept at securing favorable terms for their clients.  They can negotiate on various aspects, such as upgrades, closing costs, and warranties, ensuring that buyers get the best possible deal.

Their ability to navigate these discussions can result in significant savings and added benefits for buyers.

Negotiators

Legal Issues

Moreover, the legal complexities involved in purchasing a new home absolutely necessitate the involvement of a real estate agent.

The process includes numerous legal documents and contracts that require careful review and understanding. Real estate agents are familiar with these legalities and can ensure that all paperwork is completed accurately and in compliance with regulations.

They will help identify any potential issues or red flags in contracts, protecting buyers from future legal disputes and financial liabilities.

True Value

Real estate agents offer invaluable expert guidance throughout the home-buying process.

Bricks and mortar

For many buyers, purchasing a new home can be overwhelming, filled with unfamiliar terminologies and procedures. A seasoned real estate agent brings extensive experience and knowledge, ensuring that buyers understand every step.

From selecting the right neighborhood to navigating the intricacies of builder contracts, agents provide clarity and direction, preventing potential pitfalls that could arise from a lack of understanding.

In Conclusion

Utilizing a real estate agent when purchasing a newly built home is essential for multiple reasons.

Their guidance, negotiation skills, and legal assistance are just a few of the many values that they bring to the table.  By leveraging the expertise of their real estate agent, buyers can make better decisions, secure superior deals, and navigate the complex process with greater confidence and ease.

The Lending Coach

The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deductions.

The Mortgage Pre-Qualification | What’s Needed…and Why All The Paperwork?

Mortgage approval

So, you are thinking about buying a house?  Good for you!!  Now, let’s get to work on a mortgage pre-qualification.

Many potential home buyers begin looking at homes without understanding the steps involved prior to engaging a Real Estate Professional.  It’s essentially a matter of making sure the horse is in front of the cart!

Being prepared with the documents needed for mortgage pre-qualification will help make the process go more smoothly and quickly.  Here’s what you will need to provide…

When buying a property, getting pre-qualified is a crucial step in the process of getting a mortgage. Before you can get there, though, your lender will need to review and verify information about your assets, income, and credit.

Magnifying glass

Standard Buyers

For borrowers who are regular employees (hourly or salaried) and are not self-employed here’s what your lender will need:

  • Pay stubs from at least the past 30 days
  • Tax returns (including W-2s) from the past two years
  • Bank statements from the past two months to three months – checking, savings, money market accounts
  • Employment information – contact information of employers in the past two years (some employers have an employment verification phone number lenders can call)
  • Other income sources – bonuses, child and/or spousal support, disability or VA benefits, pension, Social Security or other sources
  • Account statements from the past two months to three months – 401(k)s and/or IRAs, CDs, mutual funds or other investment or retirement vehicles
  • Driver’s license, Social Security card or other form of ID
  • 2 years of residential history
  • Down payment gift letter, if applicable

A few caveats…if you are planning on using part-time employment income to qualify, you will need to have had that job for 2+ years. 

Stack of documents

Secondly, if you are commissioned or are using bonus income for qualification purposes, you will need to show a 2 year history of receiving those.

Self Employed Borrowers

If you are considered self-employed (or a 25% or more owner of any company from which you derive income), here’s what else will be required, in addition to the list above:

  • 2 years Federal tax returns, business and personal
  • Year-to-date profit and loss
  • Copy of business license

A few other consideration for self-employed borrowers…lenders will require that you’ve been in business for yourself for 2 years, minimum. 

Also, qualification income will be based on net profit from your tax returns, not gross sales receipts.

Investment Property/2nd Home Buyers

If you already own a home and are looking to purchase an investment property, your lender will require a few more things:

  • Schedule of Real Estate Owned – information about the home’s value, occupancy status and purpose, as well as the property’s monthly expenses. You will also need to provide information about your current mortgage, including the lender’s name and account number, loan type, monthly payment amount, outstanding balance and credit limit.
  • The Schedule E from your 1040 tax return that shows owned properties that are currently rented.
  • Any investment properties that do not show on your Schedule E will require a copy of the lease of that property.
  • If you are moving to a new primary residence and will be leasing the home you are in now, the lender will require a signed lease agreement AND a copy of the deposited first month’s rent and security deposit.

Why So Much Documentation?

In today’s regulatory environment, the paperwork requirements can seem quite intrusive.

Glasses and cash

It seems like they need to know everything about you, including your blood type!

Many of today’s buyers are told by friends and family that the process was much, much easier when they bought their home ten to twenty years ago…and they were right!

There is one main reason that the loan process is much more burdensome for today’s buyer than in prior years…

It’s that the federal government has set new guidelines that now demand that lenders prove beyond a doubt that borrowers are capable of paying the mortgage regularly.

During the run-up to the housing crisis years ago, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home, so new protections were put in place to make sure this can’t happen again.

In Conclusion

Although the process can be cumbersome, if you partner with the right lender, things should work out just fine.  Do reach out to me, as it would be my pleasure to be your “Lending Coach” through the purchase process.

Lending Coach Title Bar

The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deductions.

Why Mortgage Rates Are Staying Stubbornly High…and What Does The Future Hold?

MBS graph

Mortgage interest rates are staying higher than initially anticipated, due to the staying power of inflation today.

Inflation is a terrible thing for prosperous, economic growth…and it significantly impacts mortgage rates for the worst.

Dollar rope home graphic

Today, we are seeing the impact of stubbornly sticky inflation in the mortgage marketplace – and relief doesn’t appear to be coming in the near term.

The most recent inflation data showed prices rising by 3.5% year-over-year in March, which exceeds the Federal Reserve’s 2% target.

Why Does This Happen?

Rising inflation shrinks buying power as prices of goods and services increase. Higher prices can then influence the Federal Reserve’s interest rate policy, affecting the cost of borrowing for lending products like mortgages.

inflation erodes the purchasing power of money over time. As the cost of living rises, the value of each dollar decreases, leading to a decline in the real value of mortgage payments.  Hence, mortgage lenders must charge more in interest to make the same profit.

Then, as inflation cools, mortgage interest rates can be expected to ease as well.

The Federal Reserve and the 10-Year Treasury Note

When inflation rises, the Federal Reserve banks has respond by tightening monetary policy to control inflationary pressures. This involves raising the federal funds rates to reduce borrowing and spending, thereby slowing down economic growth and inflation. 

Federal Reserve building

At this point, this strategy hasn’t worked nearly as well as expected.

More importantly, the Federal Reserve does not set mortgage rates. Instead, the central bank sets the federal funds rate target, the interest rate that banks lend money to one another overnight. A Fed increase in this short-term interest rate often pushes up long-term interest rates for U.S. Treasuries.

Fixed-rate mortgages are tied to the yield on 10-year U.S. Treasury notes, which are government-issued bonds that mature in a decade. When the 10-year Treasury yield increases, the 30-year mortgage rate tends to do the same.

You can read more about that here…

Short Term Outlook

The average mortgage rate for a 30-year fixed is 7.12%, nearly double its 3.22% level in early 2022.

“There is some optimism for rate cuts, however, we were forecasting three to four rate cuts in 2024 at the beginning of the year, and it now is unlikely. People are now adjusting those expectations down to two,” says Ali Nassirian, vice president of consumer & home lending at Travis Credit Union.

Percent graphic

“Looking at the current data, there’s roughly a 50% chance we’ll see a rate cut in June,” Nassirian adds.

As little as two weeks ago, there was generally a greater optimism that the Fed would start rate cuts in June. However, that now seems to many like a hopeful start date.

There’s also a good chance that mortgage rates will remain relatively unchanged for the remainder of 2024.

“I don’t see a rate cut at the next Fed meeting. I think June would be the soonest cut we see. Even if they cut rates two or three times this year, I don’t think we will see many moves in the mortgage market from those,” says Brian Durham, vice president of risk management and managing broker at Realty Group LLC.

“The things that will have a bigger impact on the mortgage markets will be things like the Fed’s quantitative tightening policy, job numbers, and other inflationary or deflationary variables like the cost of oil,” Durham adds.

You can find out more here from Jake Safane at MoneyWatch…

In Conclusion

Mortgage rate forecasts vary depending on the expert you ask, but the overall consensus seems to be that there won’t be significant decreases in the near future. With that said, conditions can change, as recent expectations of rate cuts so far in 2024 have not come to to pass.

It’s actually possible that we’ll even see mortgage interest rates rise if inflation persists.

So, some buyers might prefer to act now, rather than waiting for however long it might take for mortgage rates to become more favorable, if at all.

Please do reach out to me to discuss how to make the best mortgage and purchasing decisions in today’s environment.

Lending Coach Title Bar

The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deductions.

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