The Lending Coach

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

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Hitters: Never Be Satisfied – Torque Hitting and 4 Key Things

I’ve linked to Paul Petricca’s Torque Hitting before (his blog is here and I highly recommend his book which can be found here).

Paul is back as the hitting coach at Wheaton College in Chicago, and I know him pretty well. He works with both softball and baseball players to maximize their power from the ground up.

I‘m a believer of what he teaches. I love his passion for hitting…and the commitment he has to his players.

Here are a few excerpts from one of his torque hitting blog post, entitled “Hitters Should Never Be Satisfied”:

“As a hitting coach, it is difficult for me to observe the “real” swings of my hitters until they are in the batter’s box in live games. The goal of every hitter should be to use the same hitting mechanics in games as they do in the batting cage. Unfortunately, many hitters struggle with this.”

Hitters…

  • Don’t be content, even if you are leading your team in hitting.
  • Continue to search for small ways to generate extra power by using your body more effectively.
  • Strive for more consistency by continually working on perfecting every hitting key, which will lead to a repeatable swing.
  • Transfer your batting practice swing to games.
  • Never be satisfied!

Here are 4 of his torque hitting hitting keys….

Hands Back

Even though I can objectively prove to my hitters with a swing speed radar that by merely moving the hands back toward the catcher a few inches, bat speed will increase dramatically, some don’t trust this advice in games.

They move their hands in towards their body in an effort to be “quicker to the ball”. This only leads to a slower bat and less power. I’m convinced that most hitters don’t want to accept this very simple fix to their swing, because they want to look “cool”. They see professional hitters with their hands and bats in all kinds of crazy positions before the pitch is thrown.

What they don’t see is how all professional hitters move their hands back toward the catcher at some point before the pitch is thrown. They can get away with some pre-swing bat movement, but amateur hitters cannot!

Powerful Load

Hitters who adopt a leg lift that is slow and powerful will enjoy both increased power and consistency. Hitters who decide not to lift the front leg at all will be at the mercy of pitchers who are able to effectively pitch on the corners of home plate. They will have to reach for outside pitches and will be forced to swing earlier than necessary for inside pitches.

I tell my hitters that hitting success begins with a slow and powerful leg lift (load). Without this important hitting key, the entire swing sequence is negatively affected. In my book, Hitting With Torque: For Baseball and Softball Hitters, I detail why lifting the front leg is imperative to be a complete hitter.

Back Elbow Rotation

The most common cause of inconsistency in hitters, especially fastpitch softball players, is the collapsing of the back elbow as the swing sequence is initiated. When hitters move the back elbow close to their bodies as the swing begins, the bat quickly loses the important 45-degree power angle.

This angle is critical for consistent hard contact with the ball. The back elbow should be totally still as it rotates around the body. This rotation without lowering the back elbow will ensure the angle of the bat is maintained until the arms move toward full extension at impact with the ball.

High Finish

In practice, I encourage my hitters to let the bat finish where “it” wants to finish, which is high and away from the body. Average hitters will often manually change the path of the bat (higher or lower) before the swing is fully completed. Not only does this affect the flight of the ball, it also decreases bat speed and power.

Some coaches and hitters erroneously believe that where the bat finishes is not important. They contend the ball is already gone, so it doesn’t matter where the bat finishes. I believe the velocity and trajectory of the ball off the bat has everything to do with the path and finish of the swing.

Ask any professional golfer the key to a successful swing. They will always point to a balanced, powerful, and high finish to the swing. When hitters focus on the end of the swing and trust the rest of the swing sequence, the results are typically very good!

Both baseball and softball players alike can take a ton away from what Coach Petricca is saying here….and best of luck to Paul and his Wheaton team this upcoming season!

VA Loans: Some Specifics and Fee Structures

Veterans Affairs mortgages, better known as VA loans, offer considerable benefits for eligible military veterans, service members and spouses who want to buy a home.

What makes the VA loan so attractive to veterans is that they offer no down-payment loans and more lenient credit and income requirements than conventional and FHA mortgages.

With that said, there is some confusion surrounding what can and can’t be charged to the veteran at closing. The article below will outline some of the benefits of the VA loan as well as the fee structure associated with the loan.

The Specifics

VA loans generally offer more competitive rates compared to conventional financing. In many cases, these loans consistently offer the lowest rates on the market, according to reports by mortgage software firm Ellie Mae.

VA mortgages are made through private lenders and are guaranteed by the Department of Veterans Affairs, so they don’t require private mortgage insurance, known as PMI.

Most members of the regular military, veterans, reservists and National Guard are eligible to apply for a VA loan. Spouses of military members who died while on active duty or as a result of a service-connected disability also can apply.

The Details and Fee Structures

The seller is allowed to pay all of the veteran’s closing costs, up to 4% of the home price. So, it is possible to avoid paying anything out of pocket to close your home purchase.

If you have little or no funds available for closing cost, let your real estate agent know that you are purchasing your home with a VA loan. Your agent may be able to request that the seller pay for some or all of your closing costs.

Also, the VA limits the amount of fees the lender can charge. This is a great benefit to the VA loan.

Fees Not Allowed to be Charged to the Veteran

Some fees are not allowed to be charged, per VA loan guidelines. Here are the specifics:

Attorney Fee

An attorney fee cannot be charges unless it is for anything besides title work.

Escrow Fee/Settlement Fee/Closing Fee

The VA does not allow the veteran to pay an escrow fee. The escrow fee varies greatly and can be quite expensive, so this is a great benefit to the VA loan.

Application Fee

This is a fee the lender sometimes charges up front before the borrower takes an application. This is not allowed on VA loans.

Mortgage Broker Fee

Sometimes charged by mortgage brokers when they broker a loan out to the lender.

Closing Protection Letter (CPL)

The CPL fee is often included in the escrow fee but sometimes charged separately. It is a letter that makes the title company responsible if escrow does not appropriate loan proceeds correctly.

Document Preparation Fee

Fee charged by escrow for preparing final loan documents.

Lock-in Fees

Fees charged by the lender to lock the interest rate.

Courier Fee/Postage Fees

Sometimes there are original documents that need to be hand-carried or sent via overnight service, and can’t be emailed or faxed. In this case, the escrow company will often charge a courier fee to ensure these services are paid for. The veteran is not allowed to pay these fees.

Notary Fees

Fees charged by escrow to send a notary to the borrower for a signing appointment outside escrow’s office.

Termite Report

The veteran cannot pay for a termite inspection or report in all but 9 states in the US.

Tax Service Fee

This fee is paid to the mortgage company to ensure they pay the real estate taxes.

The Fine Print

This list of allowable and non-allowable fees above is not all-inclusive and there may be other fees on your purchase transaction that are not mentioned here. In that case, it’s best to contact your lender to find out if the charge is allowable on VA loans.

Fees That Can Be Charged to the Veteran

VA Upfront Funding Fee

This fee goes directly to the Veteran’s Administration to defray the costs of the VA program. This is not a fee that is generally paid for in cash at closing – usually VA homebuyers opt to finance it into their loan amount. If the fee is wrapped into the loan amount, it does not increase the total amount of cash needed to close the loan.

Appraisal Fee

The appraisal is paid by the veteran and is usually paid at closing.  For more regarding appraisals, go here….

Origination Fee

The VA limits the lender’s compensation on VA loans to 1% of the loan amount. This fee is meant to compensate the lender in full. Fees for items such as processing and underwriting may not be charged if this 1% fee is charged to the veteran.

Third Party Fees

Companies involved in the transaction other than the lender are called third parties. Examples are title and escrow companies, credit reporting agencies, and appraisers. Their charges are called third party fees. Common fees are title insurance policies, recording fee, credit fee, and flood certifications.

Prepaid Items

Prepaid items are items the buyer has to pay in advance. Lenders require insurance policies and taxes to be paid in advance. Not paying for taxes and insurance can jeopardize the integrity of the collateral for the loan, which is the house.

More Information Available

For more information regarding VA loans and eligibility, don’t hesitate to contact me – as it would be my pleasure to help!

Stop Revisiting Negatives From Past Games

As you probably know by now, one of my favorite mental coaches is Dr. Patrick Cohn of Peak Sports Performance. Dr. Cohn is a sports psychologist out of Orlando Florida.

He’s always preaching about mental toughness – as well as the techniques athletes can use to grasp it.

He sent out an e-mail blast recently that I’ve posted below regarding eliminating negative thoughts regarding past performance – and how to best get past it.

For instance, you whiffed the last two at-bats swinging at balls in the dirt and now you are facing the same pitcher with a runner in scoring position, “Here we go AGAIN!”

Or you walked the bases loaded and are having difficulty with your control and are now facing a hitter that has torched you in the past, “Here we go AGAIN!”

Or your team has blown the lead in the ninth inning the last two games and now you are clinging to a one-run lead in the bottom on the ninth, “Here we go AGAIN!”

This is a common problem among baseball players, but this mindset is based on a misconception. This misconception implies “what happened in the past will continue to happen in the present.”

It is an over generalization to believe the past will repeat itself but many baseball players, in the moment, buy into the “here we go again…” mindset.

When you allow past outcomes to influence your mindset in the present, the pressure heightens, which creates anxiety and tension.

Playing anxious and tight ball is a recipe for athletic disaster and under-performance.

In Action

The San Francisco Giants could have easily defaulted to the “here we go again” mentality after a breakdown against the Texas Rangers.

The Giants started out the first game of a three-game series against the Rangers with a tough game, blowing a six-run lead to lose in extra-innings at home.

To add to the potential pressure, the Giants had lost 10 of the previous 13 at their ballpark.

The San Francisco Giants had to quickly re-focus in Game 2 of their series.

The Giants quickly jumped out to a 5-0 lead but gave up three runs in the eighth inning.

Despite similar circumstances, the Giants fought forward and San Francisco relief pitcher Mark Melancon closed out the game with the bases loaded to secure a 5-3 win over Rangers.

Hunter Pence, who had a pinch-hit home run in the seventh, talked about their “keep attacking” mindset rather than succumbing to the “here we go again” mindset.

PENCE: “It’s very important to continue to send that message of relentless attack. Even where we are and as clouded as it may seem, you still never know. When there’s still a chance in this game of baseball, things can get hot in an instant.”

Knowing there is a chance is a great strategy to keep your head in the game and avoid the pitfall of “here we go again.”

Keeping Your Head in the Game

Knowing you have a chance comes in many forms:

*Knowing there is a chance to still win.

*Knowing there is still a chance to bounce back the next game.

*Knowing there is still a chance to hone your skills and improve your game.

*Knowing you can learn from the past and adjust.

If you can adopt the “there’s still a chance” mindset, you can focus on making things happen in the moment.

Let go of what’s already happened, look for signs to build momentum, and get things moving in a positive direction. Instead, take a trip down memory lane to when you did drive in that run!

 

Rising Interest Rates Aren’t Deterring Buyers

Mortgage interest rates have risen consistently over the last year-and-a-half. At that time, rates for the 30-year fixed were just under 4%. Lately, the average is closing in on 5% percent for a 30-year fixed-rate mortgage.

Let’s take a look at the facts and crunch the numbers. You’ll likely find that minor rate fluctuations won’t affect a buyer’s ability to purchase a home

Despite these rising mortgage rates, there’s good news:

  • Rising mortgage rates don’t have to stifle the buyer’s dream of owning
  • In fact, a new study by Redfin shows that rising rates aren’t scaring off many shoppers
  • Rates remain historically very affordable, even if they are a bit higher today

Source: You can find out more here – by reading Erik Martin’s entire piece at The Mortgage Reports

What the research found on interest rates and purchasing patterns

A recent survey of potential buyers by Redfin reveals some interesting findings:

  • Only one in 20 would call off their search if rates rose above 5 percent
  • One in four said such an increase would have no impact on their search
  • Nineteen percent would increase their urgency to find a home before further rate increases
  • Twenty-one percent would look in other areas or search for a more affordable home
  • One-third would slow down their search to see if rates came back down

This means that many buyers understand the environment today – and realize the long-term benefits of home ownership.

How to read the data

Taylor Marr, senior economist at Redfin, says these results are telling.

“Only a small share of buyers will scrap their plans to buy a home if rates surpass 5 percent. This reflects their determination to be a part of the housing market,” he notes.

Marr says buyers are well aware that rising mortgage rates mean slightly higher monthly payments. Yet buyers are willing to make compromises, as they understand that actual wages are higher today, making the purchase more affordable. Also, they know that real estate generally appreciates.  Finally, today’s rates remain very low, compared to historical norms.

“By historical terms, 5 percent mortgages are not that high. A rate below 7 percent is really a good deal on long-term money,” Joshua Harris, clinical assistant professor of real estate at NYU’s Schack Institute of Real Estate, says. “Plus, rents are generally high. So even at 5 percent, many buyers will still be saving money on monthly housing costs.”

What buyers can do now

Most experts recommend the following steps:

Buy now if you can afford it – “While rates are going up, so are home prices in most markets,” says Harris. “The job market is great. Many are seeing wage growth in many sectors. These forces will push rates up and give people more money to spend on a house. So waiting can be a very costly decision if you need a house and don’t want to rent.”

Get your financial house together – start the pre-approval process and get qualified for a loan. “Ask questions and understand the monthly payments you’ll need to make,” suggests Suzanne Hollander, real estate attorney, broker and Florida International University instructor. Will your income be able to cover the principal, interest, taxes and insurance? Will it provide enough money to live the lifestyle you prefer?”

Don’t sweat a minor rate hike – “So long as you intend to hold the home for at least five years, these small fluctuations shouldn’t affect your decision to buy,” Harris adds.

With economic gains outpacing mortgage rate interest rates in many markets, you may be better able to buy a home today than at any time over the last 10 years. Don’t hesitate to reach out to me and find out more!

The Top 5 Down Payment and Mortgage Insurance Myths

For first-time home buyers, it can be more than overwhelming to hear all the stories from friends and colleagues about getting their first home loan.

Many times they are led to some false conclusions.

If they don’t know the real facts about the loan qualification process, it can keep them from taking the necessary steps toward owning the home they’ve been dreaming about.

Let me clear up some facts and make sure the correct information is out there.

The Top 5 Down Payment and Mortgage Insurance Myths

Number 1: Borrowers need a 20% down payment

According to the National Association of Realtors, the majority of first-time home buyers believe they need at least a 10% to 20% down payment. However, that’s simply not true with all of today’s different loan types and programs. Across the US, today’s average down payment is generally in the range of 5-10%. Even so, there are loan programs that allow as low as 3% and even a few no-down loan options.

Number 2: Mortgage Insurance (PMI or MIP) is required on all home loans with less than 20% down

Mortgage insurance is generally required by the lender when a borrower purchases a home using conventional financing with less than a 20% down payment. But there are dollar house questionmarkloan programs available that don’t require PMI. VA Loans do not require PMI, for instance. There are other loan programs with possible reduced mortgage insurance, so be sure to check in your mortgage lender to find out what might fit your particular situation.

Number 3: Mortgage Insurance is Permanent

Mortgage insurance is in place to protect the lender when there is less than 20% equity built up. Once more than 20% equity is in place, this insurance can be removed. Believe it or not, PMI will automatically be terminated when the principal balance reaches 78% of the original value. You can also request cancellation sooner in writing if your home value has increased enough (contact your lender for exact requirements and instructions).

For those with FHA loans, borrowers can refinance into a conventional loan to eliminate the insurance when your loan-to-value reaches 80%.

Number 4: Mortgage Insurance Protects the Borrower

Interestingly, many borrowers make the mistake of thinking that PMI is insurance that either protects the home or protects them if they end up in a foreclosure situation.House_key_digital

Actually, mortgage insurance is in place to protect the lender from default on the loan, which enables lenders to help more borrowers get loans. It does not provide protection for the borrower if they go into foreclosure.

Number 5: No Gifts Can Be Used for a Down Payment

It’s common for today’s U.S. buyers to receive cash down payment gifts. First-time home buyers are most likely to receive a cash gift among all buyer types, but repeat- and move-up buyers receive them, too.

The down payment gift rules are (1) the gift must be documented with a formal “gift letter”; (2) a paper trail must be shown for the gifted monies as they move from the giver’s account to the home buyer’s account; and (3) the gift may not be a loan-in-disguise. You can find out more about the specific of gifts from Dan Green at The Mortgage Reports here.

Now that you know more of the facts about down payments and mortgage insurance, let me know how I can help you begin your home ownership journey!

Tom Title Bar

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