Category: Blog

Last year, the IRS announced that all tax-preparers are required to

• Register with the Federal Government
• Pass a competency test
• Take continuing education courses
• Obtain a federal Preparer Tax Identification Number (PTIN)

But, even if they are registered and have a PTIN number, it does not necessarily mean that they are competent.  In a recent audit, the IRS had found substantial errors—overlooking common deductions, or incorrectly interpreting the tax code.

You might even want to hire another tax preparer to review previous tax returns to make sure you claimed everything you were entitled to deduct.

Before hiring a tax preparer, consider the following:

• Check with the Better Business Bureau to see if any complaints have been filed
• Check to see if they have a PTIN number from the IRS
• If CPA or Attorney, check with your state’s professional board for complaints and if they have a current license
• Ask what continuing education courses they have taken within the last 12 months
• Ask if they belong to any professional organizations
• Ask how long they have been preparing tax returns
• Ask if he/she is familiar with the “type” of tax return you need to file
• Find out how they determine the fees you will pay (will it be hourly or flat fee?)
• How many clients have they represented in IRS audits?

Steer clear of tax preparers who claim they can get you a larger refund—without reviewing your paperwork first.

Steer clear of tax preparers who charge a “percentage” of your refund—the tax return may contain inaccurate info in order to pump up the refund amount.

Steer clear of tax preparers who have “a lot” of experience with representing clients who have been audited—this may be a sign that they claim “questionable” deductions.

If you need a good tax preparer, please email or call me, because being in the mortgage business, I know several who are truly competent and I know will help you get your tax return filed accurately and filed on time.

Hello Everyone… Seems like it has been forever since I have posted.

A lot of changes for Myself and my team that has made this a bit crazier month.. and school started!! Can every Mama say “AMEN”. Getting back in the swing of school can be a bit overwhelming but yet so exciting at the same time.  I wanted to take a quick moment on a question I get asked ALOT!! ” Can I get a manufactured home”?

I know a lot of lenders try to defer clients from a mobile/manufactured home due to them not having that product available. But it is defiantly an option that is available for many loan programs. I have attached the program matrix below. As you can see for VA loans, you can get 100% financing, you can also do a cash out refinance if you own your home at 100% LTV. With FHA , there is no difference in LTV , it is the regular 96.5 ( 3.5% down). Conventional is a little different when it comes to a refinance, but it is still a doable option for most. It can still be purchased as a 2nd home for conventional. ( It can not be an investment property) .  As far as credit scores, it isn’t different then buying  a single family dwelling. But some lenders have overlays, so that is a question to ask your lender.

Each product has its rules and guidelines when it comes to set up and what is looked at  during the loan process. It must be “real property” and has to be immobilized. Please see below on what lenders are looking for when doing a manufactured home.  There can be rate adjustments for a manufactured home with some products… But not all. An extra inspection is needed with most programs. That is usually a structural engineer report. The ones that we come across can run anywhere between 350-600 dollars. So that is something to keep in mind.

As I always say” know your facts”. That will be an important key on finding your dream home and the lender that fits YOUR needs. Lenders have overlays that can be misinterpreted as guidelines. So it is so important not to get discouraged.

I hope I touched on questions that you may have. I wish everyone a Happy end to MONDAY and a great rest of the week.

I know that we all want to get the best deal with the least amount of money right? Ever heard the saying” You pay for What You Get”?  An expert guide.  Buying /Selling a home usually requires dozens of forms, reports, disclosures, and other technical documents. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes. Also, there’s a lot of jargon involved, so you want to work with a professional who can speak the language. When you are making one of or possibly the biggest purchase/investment of your life, it is very important that you are protected.

Myth: I can save money buy not using an agent

One of the biggest Myths I hear often” Going direct to the seller will save money.”
Some lucky people do get this to work out. But, the vast majority are buying a property blind. A real estate agent has access to market comparables that help them see what the real cost of a property should be. They can advise you if you are over paying. They can also put you in touch with a professional community that can inspect for termites, structural damage or title problems before an expensive mistake is made. Legal problems can also arise from botched negotiations or inappropriate contract paperwork. Let an agent accept the liability and do things right. When the home is listed the seller is paying for the agent fees already. So the buyer has no cost. You can choose your own agent if you choose and that is already factored into the cost that the seller is paying. So why not have someone work and guide you at no cost??

Myth: Looking at Homes Is the Best First Step

It might be tempting to visit open houses, drive through neighborhoods where you’d like to live and talk to neighbors and friends. But your transaction will go much smoother if you get your ducks in a row first. “Assuming that you will be financing your purchase, the first step is to get a preapproval letter — or a pre-qualification letter at a minimum — from a lender of your choice,” said Keith Hickman, Realtor at Compass in Beverly Hills, Calif. “This will not only prepare you to make an offer when the time is right but will help you to focus your search within the price range that you qualify for and are comfortable with.”Waiting to get a loan approval letter until you find a home that you want to make an offer on puts you at a disadvantage in a competitive market,  Most offers will not be accepted without a lender approval letter. Potential buyers that have their approval letter in hand will be in a better position to move quickly with a successful offer.

Myth: You Don’t Need an Agent to Buy a Home

Did you know that you can sell your home without an agent? In fact, you can even buy a home without an agent.

“It’s true that sites such as StreetEasy, Zillow and Trulia have made it easy for consumers by providing them with information at their fingertips,” said Judy Williams, licensed real estate salesperson with Halstead Properties in Manhattan. However, “many underestimate the value an experienced agent can bring to them.”

Buyer agents have a duty to put your best interests in the transaction at the forefront. They can provide you with knowledge about the current market conditions and use their expertise to negotiate the best deal for you.

Myth: The agent can only show me the homes that has their name or picture on…

No, agents can show you ANY home that is listed. So if you have a good relationship with an agent , give them a call or send them an email to look up the home for you. If you go from agent to agent that can cause confusion and frustration for the home buyer. It is important to create a relationship with the agent and they will get to know your likes and dislikes to find your perfect home.  A home is so much more than four walls and a roof. And for most people, property represents the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on the issues most important to you

Everyone has different personalities and that is ok. If you are unsure about what agent to choose, set up interviews. ( get pre-approved first so they know you are serious), Check them out on social media, Check their client ratings or ask around. I work with some awesome agents, contact me and I can send names as well. Agents are commission based so they only make money when the deal closes.  So all the gas and time to show homes comes out of their pocket. No one wants to work for free so being mindful. Taking the necessary steps to ensure that your experience is as seamless as can be….

   Today we will go over FHA and some misconceptions. When you are getting ready to buy a home, everyone wants to give you advice. One type of loan that people always spread misconceptions about is FHA.

FHA loans are harder to qualify for–

That would be False… FHA loans are actually less restrictive, so many people qualify somewhat easily. This gives borrowers with lower credit scores and/or limited down payments funds an opportunity to purchase homes.

All FHA-approved lenders offer the same loan terms.

False- Not every FHA-insured loan package is the same, meaning you should shop around for the best offer.

You must have a 620 credit score to qualify for FHA.

That is what you call and overlay and not a guideline…

Per FHA The lowest credit score for an FHA mortgage loan is 500, the FHA will insure mortgage with a 10% down payment (90% loan-to-value ratio). If a borrower has a minimum 580 credit score then the FHA will insure the mortgage with just a 3.5% down payment. Now keep in mind, that credit score is not the full piece to the puzzle. With lower credit scores you must meet the manual UW conditions or have an approved eligible through the automated UW system. More information on this can be found
FHA guidelines

Your debt to income CANNOT go over 31/43…

Again , there are always exceptions to the rule… depending on the over all file. Credit, compensating factors and automated approval. Automated approvals can approve up to 56.99 and manual UW up to 50% DTI.

FHA loans are really for first time homebuyers.

Lets go with no… FHA are great for first time home buyers with lower credit scores or a bankruptcy in their past, and others who are having a hard time qualifying for a conventional loan. FHA loans can also be used by disaster victims. The 203H is a great program that provides 100% financing through approved lenders for the reconstruction or purchase of homes after they were severely damaged in a disaster. It can also be used to purchase a new home if your home was destroyed.

You can only be on a FHA loan if you will live in the home… Ummmm nope!

FHA will allow a non occupant co-borrower to be on the loan with the primary borrower that will be occupying the residents. This can help with limited credit borrowers or debt to income issues.

Down Payment must come from your personal funds…

If you are a manual UW or require reserves, that must be from your personal funds, but as far as the down payment there are options. We are so quick to think when we hear “down payment”.. we don’t have that amount in our checking/savings account. Here are a few options you have with FHA for your down payment.

•  Earnest money deposit
• Savings bonds
•  IRAs
•  401(k) and Keogh accounts
•  Stocks and Bonds
•  Thrift Savings Plans
•  Savings and checking accounts
•  Cash saved at home
•  Cash accumulated with private savings club
• Gift Funds See HUD 4155.1 5.B.4
• Sales proceeds
• Sale of personal property
•   Collateralized loans
•  Grants and loans
•  Employer’s Guarantee Plans
•  Employer Assistance Plans

    I am sure I could go on all day with guideline vs overlays. But since time and space will not allow for that ,  you can always send me a message if you have any other questions about FHA. You can always refer to the FHA HUD handbook for guidelines at FHA Guidelines

A New Year brings new goals, new beginnings and a new perspective!!

Most clients that come into my office has been turned down from other lenders and feel defeated before we even start the credit check. What I tell each client is that a No is sometimes for a better YES down the road. Discouragement and defeat will not get you to the place you want to be, but hard work and dedication will.

Keep in mind that there are so many loan programs available that most lenders all can offer. The difference is some lenders underwrite using guidelines set by the program and some lenders have overlays on top of the guidelines. As in some lenders will go down to a 580 credit score and some will start at 620.  So if you get a turn down, don’t give up!

Do your research.

Ask questions…

What is your minimum credit score?

What do I need to do in order to purchase a home? ( If the lender can not sit and make a plan with you, then get another lender. )

What are my best 3 loan options? This is very important. You are the one making the purchase not the lender. Let the lender know your long-term goals. This can make a difference in the loan product that fits your needs.

As a home buyer the most important thing you can do is be upfront and honest during the loan application. It is easier to get a solution to an issue ahead of time than to go backwards in the loan process.

Here a few tips of the Do’s and Don’ts when you are trying to purchase a home. So remember positive thought get positive results. If you have any questions on the loan process please shoot me an email or comment. Let’s make 2018 the year you turn Realty into Reality!
Blog Credit Do’s and Dont’s during the loan process