The Lending Coach

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

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Mortgage Loan Term versus Mortgage Loan Rate

June 1, 2016 /

Nelson Post

My good friend and colleague, Mike Nelson, has put together a fantastic primer regarding the importance of the term of the mortgage loan versus the interest rate of that same loan.  I’d highly recommend clicking HERE for more.

Mike’s point is a very good one  – don’t get emotionally invested in the lowest possible interest rate.  It’s a big factor, for sure, but it isn’t the be-all-end-all of the conversation.  It’s very important that you identify your goals before you make any binding decisions.

“Customers always want to talk about interest rates.  It is the first question I get – how low are your rates?  My answer is this: the interest rate is important for sure, but the term of the loan should get equal consideration.”

Is it the single lowest possible monthly payment, or the lowest interest to be paid out over the course of the loan?  These are just a few questions to consider – so make sure you get with a reputable mortgage professional in order to find the best loan for you.TimeisMoney

“I can’t tell you how many times I have worked with borrowers who are so fixated on the lowest possible interest rate that they will finance $5,000 in points to have a rate discounted by 1/8 or 1/4 – without a considering the term of the loan.”

As Mike talks about, if you are sure you will stay in the house over the course of the next 25 to 30 years – spending thousands of dollars on discount points can be a financially sound decision.

However, if there is a possibility that you will sell or refinance a 30 year mortgage in the first 7 to 10 years of the loan – have your loan officer do the math and calculate the “actual” cost of the $5,000 discount.  Most of the time you will be surprised at just how much more money that “low” interest rate actually costs.

It would be my privilege to help you and anyone you know find the right mortgage product that best suits their needs!

Source: Mike Nelson’s “Observations From A Loan Officer” – Efficient Selling Blog

Pre-Qualification for Potential Home Buyers

May 13, 2016 /

Key Exchange

I’ve been speaking with a number of Realtors lately regarding the importance of the Pre-Qualification process and thought it might be a good idea to highlight its importance.

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!

“Going shopping for a home without a pre-qualification letter is like going shopping with one of those left over Visa gift cards you find in your wallet. You have absolutely no idea if the funds left on the card will cover the purchase.”

“If you’re serious about buying a new home, show the sellers you are serious. Start off by getting pre-approved for your loan – you’re more likely to get that house you love and the rest of the transaction will go much more smoothly!”

Amy V., Realtor

In order for a real estate agent to best help you find that right home, it’s vitally important to laptop coffeeknow how much “house” you can afford.  That’s why you should reach out to the right Mortgage Professional first, before you contact an agent and start looking at houses.

Your chosen lender should sit down with you to assess your goals and objectives – and then help you choose the optimal loan program that best fits your needs. The first step in this process is the a pre-qualification or pre-approval.

Source: The Mortgage Reports

The Form or Letter

The Pre-Qualification Form was developed to provide information on the buyer’s ability to qualify for a loan without an actual loan contract. This form provides information to the Realtor regarding the ability of the borrower to obtain financing – and that way, your agent can begin the process of identifying particular areas and homes that are the right fit for you.

The form sets forth the loan amount for which the buyer can prequalify, assuming a maximum monthly housing payment.  Most importantly,  in states like Arizona, an offer on a home can’t be accepted without this Pre-Qualification Form.

piggybank-houseReasons Why

For all of these reasons, home sellers and their Realtors insist that home buyers submit a valid pre-approval letter along with their initial offer for the home.

Sellers don’t consider offers from people who haven’t taken the time to determine if they can even get approved for a loan in the first place.

Again, make sure to reach out to a mortgage specialist prior to going house hunting!

Elbow Injuries in Young Throwers

May 9, 2016 /

047

With the increasing participation and competitive level of today’s youth sports, more adolescent and pediatric patients are being evaluated and treated for a variety of elbow injuries. Each year over two million children participate in Little League activities. Previous surveys have shown elbow pain occurs in up to 20% of all little league throwers and a more recent study found a 26% frequency of elbow pain in 9-12 year-old baseball players.

Most of this pain is due to overuse. The most common elbow injury in young baseball players is medial epicondyle apophysitis, better known as “little league elbow.” This is an overuse injury to one of the growth plates on the inside of the elbow.Second Game 6-26-12088

Source: Elbow Injuries in Young Throwers

The key treatment of most elbow injuries is prevention.This responsibility is widespread, involving the team physician, coach, athletic trainer, parents and officials. Emphasis must be placed at an early age on preseason conditioning, proper throwing mechanics and proper warm up exercises. The main culprit of pediatric elbow injuries is simply allowing children to throw too much. Because of this, most youth leagues have pitch count rules in place.

Complete pitch count guidelines should take into account the age of the thrower and include limits on the number of pitches that should be made during each game as well as the maximum number of pitches that should be thrown in a week, during the entire season and even throughout the year. Adhering to pitch count guidelines is critical for the longevity of a pitcher’s arm.

Jeff Passan’s “The Arm”

May 4, 2016 /

The Arm

One tiny ligament in the elbow keeps snapping and sending teenagers and major leaguers alike to undergo surgery, an issue the baseball establishment ignored for decades. For three years, Jeff Passan, the lead baseball columnist for Yahoo Sports, has traveled the world to better understand the mechanics of the arm and its place in the sport’s past, present, and future.

Every year, Major League Baseball spends more than $1.5 billion on pitchers—five times the salary of all NFL quarterbacks combined. Pitchers are the lifeblood of the sport, the ones who win championships, but today they face an epidemic unlike any baseball has ever seen.

Purchase a copy here…

He got the inside story of how the Chicago Cubs decided to spend $155 million on one pitcher. He sat down for a rare interview with Hall of Famer Sandy Koufax, whose career ended at 30 because of an arm injury. He went to Japan to understand how another baseball-obsessed nation deals with this crisis. And he followed two major league pitchers as they returned from Tommy John surgery, the revolutionary procedure named for the former All-Star who first underwent it more than 40 years ago.

Passan discovered a culture that struggles to prevent arm injuries and lacks the support for the changes necessary to do so. He explains that without a drastic shift in how baseball thinks about its talent, another generation of pitchers will fall prey to the same problem that vexes the current one.Slope pitcher

Equal parts medical thriller and cautionary tale, The Arm is a searing exploration of baseball’s most valuable commodity and the redemption that can be found in one fragile and mysterious limb.

 

Why you should make your home your first investment

May 2, 2016 /

house_on_cashTwo activities have stood the test of time throughout history as the best ways to make money:

  1. Trading
  2. Real estate investing

If you look at America’s list of millionaires and what they did to get there, you will observe the most common path to millionaire status in America has been real estate.

 

Sure, you have the Warren Buffetts who did it by investing in stock, and you have the Zuckerbergs and Gateses who did it by starting new companies and riding them to fortune. But most of the lower profile millionaires built their wealth with real estate.

Check this out from one of my favorite bloggers….Get Rich Slowly

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