The Lending Coach

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

Page 67 of 78

Playing Baseball and Mental Preparation

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We all have been there at one time or another – when you are playing with confidence and playing “free”, even when you are exhausted.  The game seems slower, in a good way – you see the seams on the ball more clearly and it doesn’t seem to be moving as fast. You can’t wait for your next at-bat or the ball to be hit to you or to throw that next pitch.  Really, it’s all about mental preparation and being ready in that particular moment.

“My ability to fully focus on what I had to do on a daily basis was what made me the successful player I was. Sure I had some natural ability, but that only gets you so far. I think I learned how to focus; it wasn’t something that I was necessarily born with.”

Hank Aaron

How do you get there?

I’d highly recommend that you first check out this video/interview with Evan Longoria about how he made the decision to really work on his mental preparation. Click on the image below to play:

longoria

As Tom Hanson and Ken Ravissa write, “working on the mental game is not a substitute for hard physical work. Regardless of how good your mental game is, if you are not putting in the effort on your physical body….you will not find out how good you can be.”  Hanson and Ravissa have co-written Heads-Up Baseball: Playing the Game One Pitch at a Time.

I’d invite you to take a look at their book, here:

It’s the mental side of the game that makes the difference in getting to that “zone”.  Most athletes leave their thinking to chance.  If they are playing well, they are easy going and loose – but when things are not going well for them, they can’t heads-up-coverget out of their own way.

I’m a big fan of both authors – and I hope you become one, too.  I love the fact that these guys want players to embrace being uncomfortable in practice – so that they will be better prepared when the game is on the line.  They encourage players to have a mental plan of letting the uncontrollables go and moving on to the next pitch or play.

I’d also highly recommend that you take a look at a variety of other “mental coaches” and read what they have to say.  Here’s a list to start:

If you are a parent, take the time to sit down with your player and watch the Longoria video.  And make sure to check out the links listed above.  Take heart – you never know when your physical tools will catch up to your mental side to take you to that next level!

Stop Paying Rent – A Home Ownership Strategy

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I have the privilege of talking to many would-be home-buyers, that’s what I do.  You would be surprised how much they understand the market relationship of low inventory at particular price points and high rent.  High rents are partly caused by declining inventories of available, affordable homes.

It’s frustrating to spend a significant percentage of monthly income on rent – and rent doesn’t generate any equity. To add insult to injury, the renter misses out on significant tax advantages of a mortgage.

How Do We As Agents & Lenders Help These Customers?

Long Term Relationships –It is important that buyers develop long term, trusting relationships with real estate agents and mortgage lenders.

Agents and lenders are competing for buyers – and buyers are competing for the affordable listings that are available, putting the sellers at the advantage. Sellers often receive multiple offers and bidding wars have become quite common. It is important that agents and lenders have strategies, outside of just the highest offer, to make their buyer the most attractive.

chalkboardHowever, we must realize a competitive market is not necessarily a bad market.  Homeowners are certainly due their return on investment.  Obviously, the renter wants to enter the ranks of homeowners so they can get their return on investment too.

Back to the question – how do we as agents and lenders help these customers?  The answer is relationships, knowledge, and execution.

The agent who understands the needs of the buyer reacts quickly in a changing market.  The lender who has a keen understanding of all mortgage products equips the buyer to present a compelling offer relative to other bidders.  The point is this, relationships between buyers, agents, and lenders are crucial in a competitive market.

Relationships & Knowledge – Keys to Strategy

Knowledge – Understanding the connections between a buyer’s financial condition, housing inventory, and mortgage products is vital to purchasing a home.

A reputable lender has many wonderful mortgage products at their disposal.  These products give financing options to a lot of potential buyers. Products such as USDA, VA, Conventional, FHA, and Non-Prime all have features that make buyers attractive to sellers.  If your lender doesn’t have a working knowledge of these products, the buyer will be at a competitive disadvantage.

shopping-cartLikewise, the real estate agent that has knowledge of the market will give a competitive advantage to the buyer.  These agents act quickly and fulfill buyer requirements while meeting the financial expectations of the seller.  A strong relationship between the agents, the buyers, and the lenders ensures the perfect home is financed with the right mortgage.

The Execution Phase

ExecuteThe real fun begins once the relationships are in place.  Naturally, the nest step is executing a Purchasing Plan and visiting listings.  The Purchasing Plan must match buyer’s needs, financial ability to purchase, and seller requirements.  A well-executed Purchasing Plan will maximize the buyer’s ability to own their dream home.refinance totter

Maximizing purchasing power relative to the available inventory requires constant communication, partnership, market research, and financial review by the real estate agent, the lender, and the borrower.  It is a team strategy that requires knowledge, relationship, and communication.   Executing a well thought-out Purchase Plan usually results in happy homeowners.

 

Closing Timeframes Continue to Lengthen

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Since the implementation of the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosures rule last October, continuing evidence shows the impact of TRID in lengthening the time to close real estate transactions.  Both purchase and refinances have been severely impacted by these new regulations.

Now, a report from Ellie Mae shows more statistical evidence on how deeply the impact of TRID is being felt, with the time to close a mortgage loan climbing yet again.  Additionally, 2016’s average time to close a loan is 10 days longer than just one year ago in 2015, when the average time to close a loan was 40 days.

If you find 50 day closes unacceptable (as I do), please reach out to me so we can get your customer in their new home sooner rather than later!  Take advantage of Equity Prime’s 30-day On-Time Closing Guarantee.

The gist of TRID is that mortgage lenders must send particular paperwork to mortgage borrowers 72 houRealtor Guarantee 3-1-2016 (2)rs prior to closing, and that changes to any of the documents require a re-disclosure of said terms and another 72-hour waiting period.

Since October 2015, then, closings have had an additional 3 days tacked on; a government-mandated delay affecting all closed loans.  But Equity Prime is still holding to it’s 30 day on-time closing guarantee!

The faster you can close on a mortgage, the lower the mortgage interest rate can be and the faster your client gets into their new home! Know the steps in a mortgage approval, and where you cut time and corners to get to closing quicker.

Source: The Mortgage Reports

Warrantable & Non-Warrantable Condo Mortgages

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There is confusion about  condo financing versus financing for detached single family residences.   I suppose this is why buyers and agents ask me about the financing differences between these two property types.  It really is important to understand what “warrantable” means and how it impacts the condo sale transaction.

Source: The Mortgage Reports

What is a “warrantable” condo and does it affect financing?

condo-loansA warrantable condominium is a condo unit or building that meets specific financing and operations standards required for a government-backed mortgage loan approval.

These condos satisfy Fannie and Freddie conventional financing guidelines…and therefore  qualify for purchase and sale on the secondary market.  This is important because lenders buy and sell mortgages this way.

If you are an agent working with buyers interested in condos, make sure you have done the research to determine the warrantability of the condo.  

A qualified lender can give you guidance and a condo questionnaire – and the ownership of the condo complex should provide the information for the questionnaire.  Once complete, the lender can send it to underwriting for evaluation to determine its warrantability.

To be “warrantable” a condo community must meet certain requirements. For example, the condos can’t be part of a timeshare, and at least half of the units must be owner-occupied. In addition, the community must contribute at least 10% of its annual budget to its reserve account every year.

Do lenders think condos are more risky than detached homes?

biltmore-jewel-condos-1Yes, condos are more risky for a lender than a detached home.  The lender on a single unit shares some of the risk for the entire complex.  Because of this shared risk items such as liability, fire, foreclosed units, vacant units, and delinquent HOA fees are all risks carried by both the lender and the individual owner.  Before the lender will loan money for the condo, the lender does the research necessary to quantify the financial risk of the property.

What happens if the condo is “non-warrantable”?

A full service direct lender has access to a multitude of financial products.  There are products for both warrantable and non-warrantable condos.  Since the non-warrantable condo does not satisfy conventional guidelines the cost of financing will show increased risk.

It’s important to understand that non-warrantable condos aren’t sub-standard, they just don’t meet the lending guidelines for Fannie Mae, Freddie Mac, and the FHA.

A non-warrantable condo is also one that can operate as a hotel or provides short-term rentals. Therefore, these types of condos are sometimes located in touristy areas like beach resorts and in college towns.

Other features of a non-warrantable condo can include:

  • a single person or entity owns more than 10% of the units
  • many units are rentals
  • more than 25% of the space within the community is used commercially
  • the community is involved in a litigation

Click on the article linked at the top of this blog for more information.  Gina Pogol wrote the article for The Mortgage Reports.

If you are a buyer looking at condos, make sure you have the warrantability conversation with the agent early in the process.  Nothing is more heartbreaking to find the condo of your dreams only to have the financing fall through late in the approval process.

The Lending Coach Title Bar

Hitting Mental – Planning to Hit

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The mental game of baseball is always a great topic – because it is important, clearly has value, and players perform better the more time they spend on their mental game.  One of my favorite reads is Justin Dedman’s “Hitting Mental” blog – he has great content for players looking to better themselves at the plate.

“Failing to prepare is preparing to fail.” – John Woodenslid-show-pic-of-batting-practice

Says Dedman “Wooden nailed it when it comes to hitting, too. Whether you are a college, high school or travel ball coach, or a hitter working on his craft during the summer or winter months, you better have a plan.”

Year-Round Planning

Dedman talks about how his team plans for the fall – they plan in segments.

“Over the course of a fall season, we have a skill work segment, team practice segment, and then more skill work. Our first set of skill work is three weeks, with one hour each week to work with a hitter, divided into two, thirty-minute sessions. Without a distinct focus and direction, we couldn’t optimize the time allotted to help our hitters improve.”

They then begin video work of their mechanics, although there is very little talk of mechanics in the first three weeks. Their plan is to develop rhythm, tempo and timing (their approaches) first. Justin believes that when a hitter implements these things first, there are fewer mechanical adjustments needed.

“Our plan also includes side work (next to the main BP cage) of exit velocity testing, forearm/grip strength development, mental game training, breathing techniques and mirror work. In the cages, during those two weeks, hitters throw to each other, work tee drills, overload and underload train, front toss, do mirror work and hit mini wiffle balls with a taped broom handle.”

Source: Justin Dedman’s Hitting Mental Blog

DeadmanThe Mental Workout

Secondly, Justin shares his “Mental Workout” – a pre-game process that will help players focus on the tasks at hand:

1.) Centering breath: Breathe in for six seconds, hold for two, breathe out for seven.
2.) Identity statement. Say a preconceived personal mantra to yourself that reflects your strength and desire for success.
3.) Personal Highlight reel: Spend 30 seconds visualizing three “done-wells” from the previous 24 hours, and then spend another 30 seconds visualizing three things you want to do well in the upcoming 24 hours.
4.) Repeat your identity statement (same as Step 2)
5.) Centering breath: Take another centering breath to prepare yourself for the upcoming performance. Again, breathe in for six seconds, hold for two, breathe out for seven.

If all hitters would take the time to see themselves doing great things – and breathing effectively to slow things down, I guarantee their success rate will go up!

 

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