Nicholas Napoletano

When you sit down with a lender, please be sure to get answers to these 10 questions before you go any further in the loan process.

1. What is the interest rate on this mortgage?
Be sure to ask for the annual percentage rate (APR) of the loan's interest. The APR is usually higher than the originally quoted rate because of the additional fees involved in procuring a loan. You must beware of APR found in advertisements. Often these are used in bait and switch schemes to get customers in the door. Always ask for an itemized list of rates, points and fees.

2. What discount and origination points will I be charged?
Often lenders may charge prepaid mortgage interest points. Find out the kind of points they will be and their effect on your loan.

3. Will you give me a good faith estimate of my closing costs up front?
There are fees that are a part of every loan. These fees pay for the services provided by the lender and the other companies involved in the loan process. Have the lender give you a good faith estimate within a week of receiving your loan application. Experts advise to be wary of any lender that refuses to supply a good faith estimate.

4. What are the fees, if any, involved in locking in an interest rate?
Interest rates are constantly fluctuating and it is possible that it could change between the time you apply for a loan and the time you close. Often you can "lock in a rate" that will keep your interest rate the same from the day you apply. Please make sure that you find out if there are any fees involved with this.

5. What is the minimum down payment of this loan?
A typical down payment is between 5 and 20 percent of the loan amount. The more money you can put down, the better your chances are of being able to lower your rate and improve your loan terms. Often, if you are unable to make a down payment of 20% of the loan amount, you will be required to pay private mortgage insurance (PMI).

6. Is there a prepayment penalty on this loan?
Prepayment penalties may be added to lower the loan's interest rate. There are many types of prepayment penalties that can be added to a loan. Make sure that if your loan has a prepayment penalty, you are aware of the terms and conditions.

7. What documents will I need to have?
This will depend on the type of loan you choose. A "Full-Doc" loan will require full documentation of income, assets, debt payments, etc... A "No-Doc" loan, on the other hand, does not require any documentation. "No-Doc" loans are only open to those with excellent credit and often require a larger down payment. They can also carry higher interest rates.

8. What qualifying guidelines are included with this loan?
These requirements relate to your income, employment, assets, liabilities and credit history. First-time home buyer programs, VA loans and other government-sponsored mortgage programs typically offer easier qualifying guidelines than conventional loans.

9. How long does it take to process a loan?
It can take as little as two weeks, to as long as 60 days or more. Be sure to have the lender give you the most accurate timetable possible so you can determine how far out you need to lock your interest rate.

10. What might delay approval of my loan?
If you provide complete and accurate information to the lender, the process usually runs smoothly. Be sure to tell your lender immediately of any changes to your income or any new debt or marital status while your loan is processing. There could be delays if the underwriter discovers any undisclosed credit problems so be sure to be as accurate as you

Why do I offer this valuble information? I am offering this information because I want to be your mortgage advisor. I offer more than simply a loan: I'll personally advise you on how to use and apply the principles contained in this blog. If you have any questions please do not hesitate to call me. I want to earn your business.

Take Care

Nicholas Napoletano

Don't put your home on the market until you've read this report!

Avoid 11 mistakes that could cost you thousands of dollars.

Selling your home can be an exhausting experience. Last minute walk-throughs, inconvenient calls, price adjustment and the possibility of being stuck with two mortgages to pay at one time are real concerns. If you are not completely prepared, you could end up losing hundreds, or even thousands of dollars.

The difference between a profitable, smooth transaction and a break-even is a miserable experience and often a fine line. In the majority of cases, it comes down to the subtle know-how of your profession. By utilizing the knowledge of a qualified professional, you'll ensure the quick, profitable sale of your home. This report is designed to arm you with the knowledge to avoid common mistakes that cost sellers serious money.

1. REFUSING TO MAKE PROFIT-INDUCING REPAIRS: It always costs you more money to sell "as is" than it does to make repairs that will increase the value of your home. Often, the minor improvements will yield as much as 3 to 5 times the repair cost at the time of the sale. Your agent will be able to point out what repairs will significantly increase the value of your home. Seemingly small fix-up jobs can have a huge impact.

2. NOT CONSIDERING OTHER FINANCING TERMS: Cash is not always the most advantageous transaction. Income level, tax benefits and current legislation are all critical factors when considering purchase terms. Professional Loan Officers are experts at home transactions, and can lead you down the path that will give you the highest yield.

3. PROVIDE EASY ACCESS FOR SHOWINGS: Accessibility is a major key to profitability. Appointment only showings are the most restrictive, while a lock box is the least. However, there are certain considerations to take into account. Your lifestyle, time frame for the desired sale, and the relationship with your agent all factor into the equation. The more accessible your home is for potential buyers to see, the better the odds are of finding a person to pay the price you're asking for the home. You never know if the one that couldn't get a viewing was the one that got away! By having a tool that alerts you to an interested prospect, you will be able to provide a comfortable time to view the home.

4. PRICED TOO LOW OR PRICED TOO HIGH: It is important to find the right professional to work with to ensure your property is priced appropriately for a timely and profitable sale. If the property is priced too high, it will sit and develop the identity of a "problem property" in your marketplace. If it's priced too low, it could cost you considerable profits. The market has subtle nuances and market changes that should be re-evaluated by the professional that is marketing your home, and communicated back to all interested potential buyers when important changes occur.

5. RELYING SOLELY ON TRADITIONAL METHODS TO SELL YOUR HOME: The prospect today wants up-front information about the home they are considering to purchase. After all, this is one of the most important purchases they will ever make in their life. As the seller, you should demand around-the-clock advertising exposure, innovative lead generation methods, and lead accountability and follow up. These services exist and should be offered to you to assist you in selling your home.

6. MARKET TIMING VS. SEASONAL SELLING: Just as a broker continually follows the trends of a stock, your loan consultant continually follows the market trends involved in home financing. Your professional will know if the market cycle is poised to net you the most money. Many people believe that property will always sell better in the spring than in the winter. This doesn't always ring true. Disregard the belief that property sales are seasonal, because selling property really relates to selling with the right exposure and knowing current market trends.

7. REFUSING TO MAKE COSMETIC CHANGES: The prospective home buyer's first impression is the most important one. An incredible number of home sales have been lost to unkempt lawns, cluttered rooms, bad stains, and unpleasant odors. These all seem to be rather small things to think about, but you have to imagine you're the buyer looking at the home, from top to bottom, military style.

8. WASTING TIME WITH AN UNQUALIFIED PROSPECT: Be sure to align yourself with a loan consultant that will eliminate the possibility of negotiating with potential buyers who are simply not qualified to make the purchase. All potential buyers should be screened before valuable time is lost.

9. DON'T TEST THE MARKET: Never put your property on the line to sell unless you are serious. The right professional will find you buyers, and if you are harboring indecision, you will be the one who blows the sale.

10. BELIEVING YOU ARE POWERLESS TO MAKE A DIFFERENCE: Be part of the team! Take an active role in doing what you can to facilitate the sale of your home. Networking with your peers and professional associates can often result in the sale of the home. It's surprising how many homes are sold this way.

11. BELIEVING ALL LOAN ORIGINATORS ARE THE SAME: With all of the intricate detail and decisions involved in selling your home, should you rely on anyone but a top producing professional? Many friends and family members have been estranged as a result of failing to meet the expectations of the seller. Your home sale is too time consuming and difficult a task to trust to someone who is not trained in this area. Maximize your profits by using a professional consultant.

I sincerely hope these tips and ideas are valuable to you. If I can be of service in any way, I would consider it a privilege to assist you in selling your home.

Sincerely,

Nicholas Napoletano

Senior Loan Consultant - FR Elite

Here is a checklist of possible documents you might need to complete your home loan.

This will help you get the necessary form and documents that are most often needed when apply for a loan. By making sure that you have these items on hand when you go to apply for a loan you greatly decrease the time it takes to get you the money you need.

Completed Loan Application
Signed and dated by all loan applicants

Income Documents
For Hourly or Salaried Employment:
Original W-2 for the past year AND
Original paycheck stub showing year-to-date income (within last 60 days)

For Self-Employment, Sole Proprietor:
Complete copy of previous year's federal tax return
Copy of year-to-date Profit and Loss statement

For Self-Employment, Corporation:
Copy of Form 1120 for previous year
Copy of year-to-date Profit and Loss statement
Complete copy of federal tax return for previous year (including all schedules)
Original W-2 for the past year (if applicable)
Original paycheck stub showing year-to-date income (if applicable)

For Retirement Income:
Original Social Security Award Letter or Pension Award Letter

For Rental Income:
Copy of complete tax return for previous year (including Schedule E)
Copy of lease or rental agreement for all properties

Other Income (You do not need to reveal alimony, child support, or separate maintenance income information unless you need it for qualification purposes):
A 1-year history of receipt AND
A copy of the fully executed divorce decree, if applicable AND
Evidence of 1 full year of receipt of payments

Asset Documents
Originals of the two most recent account statements for all checking, savings or other asset accounts
Obligations (debts other than consumer credit accounts)
A copy of the fully executed divorce decree indicating the amount of child support, alimony or separate maintenance payments, if applicable

Property

For Refinancing:

Copy of Mortgage Statement(s)

Copy of Home Owners Insurance

For purchase loans
A copy of the fully executed purchase contract

Take Care,

Nicholas Napoletano

Targeted Mailings

Direct mail is a great way to reach more people, faster. The key to a successful direct mail campaign is the list that you are mailing to. The type of list you need to acquire depends on the type of business you want. You could mail to lists of people who have owned their house for 5 years, people with bad credit, people with great credit, people with kids of college age, people in foreclosure, or just about anything else you could think of.

Determine first whom you want to mail to. Look in the yellow pages under mailing lists or list broker and these people will help you find the right list. There are also companies that cater to the real estate and mortgage industries. For example, there are companies that can help you get lists of people with certain interest rates, or with a certain amount of equity.

After getting your list, you need to write a letter that tells the consumer why they should take the action you want them to. What benefits are in it for them? Sell the benefits of what they will get by doing business with you. Make it a personal letter, coming from you, not a large company. Then make it easy for them to contact you. Offer them something for responding quickly. The more time goes by after they read your letter the less chance they will ever contact you.

Hand address all your letters if possible, and use real stamps, not bulk mail or postage meters. Make your letter seem personal. You do not want it looking like junk mail.

Mortgage Companies (This is my favorite part...lol)

Up until the late 1980's Realtors were the #1 source of business for the mortgage industry. Realtors controlled the buyers and could get them to go to any mortgage company they wanted. It's still that way with most buyers. But the mortgage industry since then has started marketing directly to consumers. That's why nowadays mortgage companies are great sources for buyers.

Mortgage companies all want to work with Realtors. (hint, hint ;-) Most of them still depend on Realtors as their #1 source of business. If you are going to be in the business, you will need your clients to go to a mortgage company. Don't make a rookie mistake and not use this leverage.

Many trainers teach that you should not tell your buyers what mortgage company to use. This makes some sense, but if you do your homework and choose a good one there are many more benefits than pitfalls.

First of all you do not want to recommend a large company where you don't know anyone personally. Almost all real estate firms own their own mortgage and title companies. They want you to send them business. But do these companies ever send you business? I doubt it. What you need to do is find a broker or a particular loan officer that can work with your clients individually and provide great service. This person needs to be available to you and keep you constantly updated through the entire loan process.

And when people approach this person looking to buy a house and they do not yet have a Realtor, expect that person to recommend you. You send them business and they send you business.

A good mortgage company will also have great follow up systems to handle prospective prospects that are not yet ready to buy. If at all possible delegate your follow up duties to the mortgage company. Let them do the work, but make sure those prospects are returned to you once they are ready to buy or sell.

Summary

We've gone over some ways to jump-start your business very cheaply and quickly. The purpose of this report was to get your mind flowing with ideas on how you can generate leads in a hurry. Take these techniques, use them, improve them, and succeed with them. They have worked, are working, and will continue to work.

Don't get fancy and spend money on things you don't need right away. Spend 70% of your day prospecting for leads, calling your sphere, cold calling, passing out cards, etc.

Do these things religiously and I guarantee you'll have enough business to keep you very, very busy.

Warning: Once the leads start coming in and turning into sales, do not stop prospecting. The leads that you generate are all future business. If you have no leads you will have no future income. Don't get so busy putting out fires that you ignore prospecting and marketing.

For more ideas and inspiration read the following:

How to Sell Anything to Anybody by Joe Girard

Guerrilla Marketing by Jay Conrad Levinson

101 Ways to Promote Yourself by Raleigh Pinskey

Good Luck and Good Selling!!!

NN

Sphere of Influence

Everyone that you know has to know what you do. Anytime they hear the words real estate, you want them to think of you. But don't count on them to remember, you have to drill it in their heads.

First, make a list of everyone you know. Friends, family, previous co-workers, previous customers, neighbors, church members, club or committee members, people who you buy things from, etc.

Second, send them each a letter saying that you are now a real estate agent and 10 cards for them to pass out.

Third, call each of them 3-5 days after sending the letter to make sure they read the letter and ask them if they know anyone who needs your help.

If we figure conservatively, every person knows at least 100 people. If each of your 100 people know 100 more people that's 10,000 people that you can reach.

Your 100 contacts need to hear from you at least once a month. Either by phone, fax, email, or letter. Your name needs to keep hitting them again and again. If you call once a month, that is the most effective and cheapest. And as you meet new people and have more clients, they need to go into your database as well.

Out of 100 people, at least 10 will move every year. That is 10 potential clients a year. These 100 people will each know 10 people that move in a year. That's 1000 potential clients for you every year. But only if you keep in touch with your 100 and continue to ask for referrals.

The top performing realtors and real estate agents get that way by mining their databases. They get to the point where people come asking for them and wanting to work with them because so and so said they should. That's the best kind of marketing you get.

Advanced stuff: Who do you know that already has a database of people and will recommend you to them? Is any one of your 100 a salesman, small business owner, attorney, accountant, doctor, dentist, etc? These people already have a client list established. Get them to recommend you to their list and watch the referrals grow exponentially.

More advance stuff: If you work at a large company, see if you can go through the old files and call cold clients. This works especially well if the broker who did the transaction is no longer with the company.

Bird dogs

A birddog is basically a person who brings you a lead in exchange for something. Now let me stress that you must know your state's laws regarding giving gifts and payments. (Refer to my blog about RESPA) But if you get creative, you should be able to come up with some way to reward people for referring people to you. Joe Girard author of How to Sell Anything to Anybody was a Chevrolet salesman for many years. He would give each customer a birddog kit with 25 business cards and the promise that he would pay them $25 for every person they sent him who bought a car. It worked wonders for him, and he is now listed as the Greatest Car Salesman by the Guinness Book of World Records.

Your sphere of influence and all your contacts should know what you will give them if they send you a referral. You can even put it on your business cards. But don't do anything illegal. There is a way to do it legally in every state, you just have to find it.

You probably cannot pay money, but many Realtors give out movie passes or gift certificates for restaurants. If you do the same people need to know that you do this in order for them to go out of their way to recommend you.

Cold Calling

If you have no money at all and plenty of time, pickup the phone and start calling people. Use the cross-reference directory in your office or library to choose a neighborhood and call every house. Yes, it's tedious and a lot of people will hang up on you. But this is the quickest way to drum up business.

In the real estate training systems, they tell you to cold call for 3 hours every day. You keep calling until your 3 hours are up or until you get an appointment with a potential customer. These 3 hours will be the most productive of your day.

Good Selling

NN