Jason Sardi, Mortgage Banker

This post, in part, was inspired by my friend JL Boney. His sarcastic piece of script was asking why one should wait to buy in this market. Let this particular piece be not a wake up a call or a call to action, but a simple reminder. There are options, explore them.

The Top 10 Reasons to not use that 100% USDA Product:

• You can borrow 100% of the appraisal amount plus the guarantee fee (approximately 102% financing). It's not an uncommon occurrence for the applicant to be able to include all or most of the closing costs within the loan. I've been a big advocate of having money in the bank after closing for any costs that occur once you own the home, yet isn't it easier to have money (that you could be investing, at even the lowest returns) and save it by not making a down payment? After all, borrowing others people's money doesn't make sense at all, especially when you can invest yours instead.

• Most of the closing costs may be included in the loan amount, if justified by the appraisal. Or you can chose to spend every last dime you have on a down payment and closing costs!

• No private mortgage insurance necessary. This actually makes your monthly payment lower. But frankly, who wants that? Besides, mortgage insurance is our friend;)

• The processing on these loans is done by local lenders. There's no need to let local folks see up your skirt when you can spread your financial legs to a National Lender whose awareness of your community is akin to Charlie Sheen's awareness of fidelity.

• Repayment Ratios are somewhat Liberal. Compensating factors such as (credit score, rent payment history, cash reserves, ongoing increases in wages) are all factors. Common sense doesn't figure into the rationale for lending these days, though. Ignore that stuff. Common sense is no longer a part of lending.

• Whether they be new or existing homes, many qualify in areas across the country. "Rural" may not be what you think it is, as defined by the USDA. Sure, we are rural in some areas, but don't let that fool you... this is about lending on a piece of land that cows can graze and consume with acreages that would make Jed Clampit blush. If you don't live on a farm, you can't get this loan.

• If you are of moderate income, you are in like sin. But who in their right mind that has moderate income wants 100% financing?

• Low fixed rates with that 100% financing! Ugh, most folks want to pay out their ears in down payment money to get a low rate. Right?

• Hire a good Realtor. Why? Heck, there is no limit to seller's contribution if done that way. Your Realtor can help you negotiate this. Check with your funding source/lender and their particular overlay (meaning that government guidelines are what they are, yet the lenders making these loans may not always follow these guidelines to T). Or, take the alternative route and save thousands of dollars by not hiring a Realtor and doing it yourself. I mean, how hard could it be?

• One of the best Mortgage Deals across this Nation is awaiting. But who needs a great mortgage deal when cash is flowing through your accounts like beer through a tap at a keg party. I know, yet another alcohol reference. Speaking of which, it's 7:22 and I just got home an hour ago. Time to open the old adult malt beverage.

~ Jason Sardi is a Mortgage Consultant licensed throughout many states on the East Coast. While having no Best Sellers to his name, he's really a decent chap for all intensive purposes. By email, Sardiman can be reached at jsardi@ihmci.com. By phone, he can be reached directly at 610-653-0317. Don't you just love when folks talk in the third person?~

Perhaps you've been throwing around the idea of entering into the wonderful world of buying a home. Maybe you've even came across a house that not only tickled your fancy, but left that euphoric taste of bliss running through your bones. Either way, probably the most important thing you can do is to become educated. From there, there's one place to start... Behold, The Basics:

• Cash isn't necessarily King. If you are paying rent, pay it on time and do so by check. That's a documented housing history. Any applicable down payment you have has to be sourced from the banking institution with whom holds your depositories. Documentation is one of the important things lenders look for these days. So, if you are slinging crack in the alleys in your spare time, instead of putting that money in a jar beside your bed... put it in the bank. Of note, I don't endorse slinging crack. I just endorse documenting your rental history and funds that you have to come to the table with to close.
• Before even traveling down the road of tangibly looking to buy a home, know what your credit score is before making any decisions. In the current lending atmosphere, your credit score has never been more important. Here's a link to help you get a grasp on the importance of credit in borrowing money in general, let alone to buy a home.
• Don't be Mortgage Poor. Many times you are pre-approved for X amount of dollars because on paper, that is what the lender deems "affordable" in your world. There's one small problem with that, the lender doesn't live in your world... You Do! Sit down and go over your monthly expenses (utilities, credit cards, student loans, car payments, insurance, groceries, any vices you like to partake in, etc) and come to an understanding of what type of payment is comfortable for you. And don't forget to figure in the taxes, home owner's insurance, and PMI/MIP (if applicable) along the way. Your Mortgage Professional can help you with that. By the way, I'm a Mortgage Professional and enjoy helping:)
• A Tax Advisor can be your friend. While I realize that the words 'tax' and 'friend' are strange bedfellows in the same sentence, read on. A lot of you folks may have heard about the tax credit for home buyers and for those who haven't, remove the rock and continue reading. First-time home buyers (includes folks who have not owned a property for at least three years) qualify for a tax credit of up to $8,000 if purchasing a home before December 1st, 2009. As long as it's owner-occupied for at least three years, that credit does not have to repaid. If that doesn't give you enough incentive, all homeowners qualify for tax credits for various home energy efficiency improvements throughout 2009!
• Hire a Buyer's Agent. They represent you and you alone. It doesn't cost you a dime and you can be relatively certain that your best interests will be at the forefront of your Agent's heart. Buying a home doesn't have to be complex, a Buyer's Agent can make your life and the transaction so much easier.
• Get a Home Inspection. A lot of lenders don't require it (whereas they require an appraisal) but a Home Inspection could very well save you a bundle of money down the road. Imagine for a second you just bought a home and the boiler breaks down, the roof starts to leak, the electrical system takes a dump, etc... all could have been avoided with an initial Home Inspection. Consult your Buyer's Agent to see if getting a Home Inspection is the right thing to do for you.
• With the large amount of inventory on the market, you may find a lot of homes that need some work. The condition of some of these properties may be such that Conventional Financing of any sort is just not possible. No worries, though. A great product to utilize in these cases is the FHA 203(K) Loan.
• Once you are pre-approved and have a signed sales agreement, don't apply for any additional credit at all. While I'm aware that many folks want plush and extravagant furniture to accentuate the decor of their home, do not start buying anything on credit until after your loan closes. Applying for credit of any kind in the thralls of the transaction could adversely affect your credit scores, disrupt your debt ratio, and even flat-line the transaction all together.
• If you have questions, ask them. I don't care how mundane you think they are, ask. The only stupid question is silence when one is on the tip of your tongue.

There are many ways to save money when buying a home. You can look for the best interest rate, lowest fees, have your Cousin Al become a Loan Officer so you can get a Family Discount, etc. Yet, the one way you can save maybe the most money is to become as educated as you can going forward. Seek out quality education, don't count on it to always seek out you.

Jason Sardi

"Your Friendly Neighborhood" Mortgage Consultant

610-653-0317

jsardi@ihmci.com

Seconds come, seconds go. Some move fast, some move slooooowwwwww. That is life and the time we keep of it.

When it's all said and done, I'd rather not go to this place. Then again, rumor has it that the company is good;)

But I'll be honest (strange concept, I know) most folks want to make their lives better right now. If you just walked into a Real Estate Forum via the progressive entity we know as the Internet, you're probably trying to make sure you are educated as you can be about buying or refinancing a home. I'd even go so far to say write that you want the latest news on loan products, government mandates, what your home is worth, and the fact that there is "only so much land, invest in Real Estate". I'm here to tell you the latter is pretty damn true. All the other stuff can be found on (cheap plug ahead)activerain.com.

If you want to make your life better right now, I have a solution. Now, I'm well aware that most folks reading this have probably read me before. I'm certainly not a demi-god or a picture of righteous self-fulfillment, or a Tony Robbins knock off for that matter. I'm pretty honest about shit stuff. Like marriage, for better or worse.

Avoiding mistakes in a Real Estate Transaction is becoming a passion of mine. That solution I mentioned earlier, comes from knowing them and avoiding them. Mistakes can be like a persistent zit commonly placed just below the jawline. As much as you want to pop it, the zit will show again if you do. This is about prevention:

• How many of you have heard the term, "Cash Is King?" Well, that's accurate if you have the type of cash that allows you to buy a home outright. Let's face it, though. Not many can do such. If you are inquiring to a Lending Institution (Mortgage Broker, Mortgage Banker, Local Bank, Mortgage Company, etc) they want everything documented. The money in your bedside jar doesn't typically count. If you do have that stash, they want to see it sourced (where it came from, ie... a bank) and seasoned (available for 60 days). They want to see canceled checks, proof of funds, documented transactions along the way. Right or wrong, that's the way it is... for now.
• Your home's worth can be a tough nail to hammer down these days. The best way to interpret an accurate value of your home is paying attention to other homes in your area (like yours) and what they sell for. Notice that I didn't say "Listed for" ... but rather sold for. While I believe the market is about perception and participation, know how that affects your greatest asset... that roof over your head.
• If you are renting right now and don't already pay your rent by check, start doing so immediately. Unless your landlord is a Management Company, very few lenders will take a private (Joe The Landlord) verification of on-time rental history. Generally, they want to see 12 to 24 months of canceled rent checks. This establishes a housing payment for you.
• When you are refinancing, keep paying your mortgage on time until your loan closes. I've heard nightmarish cases of someone who was told to not worry about paying their mortgage because their loan would close and then there is a delay, hiccup in the transaction, whatever. Simply put, keep paying your mortgage on time as if you weren't even thinking of refinancing in the first place.
• Hire a Buyer's Agent when buying a home. If you want your best interests looked out for, hire somebody to do just that. It doesn't cost you a dime to hire a buyer's agent. It may cost you some time to find one you jive with, yet a quality agent is worth more than the monetary eye tends to see.
• The pre-approval process is often debated around these parts. When you are looking to buy a home and don't have the cash to do so, a firm pre-approval is necessary to make sure the seller is confident you can get financing to buy the home they are selling. For me, not only is a complete 1003 Application & Tri-Merged Credit Report needed, but supply all your supporting documentation to ensure that your pre-approval isn't a meaningless piece of a now fallen tree.
• Have money in the bank after you close on your home. I don't say this too often, but just trust me on that one.
• Don't buy what you want, buy what you need. Especially when first starting out on the path to owning a home(s). Then again, never forget what you want. That's something to shoot for and part of what this strange life is all about.
• Your Credit Score & History are more crucial these days than they ever have been. At least, that's my take. Click here for some information to keep you in the know and the flow. Forgive the gadget at the end, only my email has changed:)

I stop at nine, rather than try to provide a perfect ten. My reasoning is that I've made mistakes in life and Real Estate... you can expect another post outlining other things I experience along my merry way.

If you've read this far, you're a trooper. I will leave you with this.

This should start things off quite nicely:)

Being a counter-culture type of guy, I was more than happy to attend my first ever Roller Derby Event... live and in color.  Shoot, the last time I saw Roller Derby was on World Wide Sports back in the day.  A friend of a friend invited me and I had a very good time. 

The event took place at the Independence Family Fun Center in Schnecksville, Pa.  To be fair, the Lehigh Valley Roller Girls are still a minor league team, compared to their opponents, a major league team... The Hard Knox Roller Girls from Tennessee.  We'll get to the pictures momentarily.

I had some pre-conceived notions about Roller Derby before actually attending this event.  I guess that came from those Saturday Mornings watching ABC.  This is the real deal, though.  Unlike the over the top pomp and circumstance of professional wrestling (which I'm an avid fan/critic/practitioner, if anybody has the testicles:) this stuff doesn't have a script.  By no means does this mean some of those gals aren't charismatic and entertaining, it just means that it's a legitimate sport.  The music was great, the skating was fast, the hits were hard, and it made me want to don the skates.  They'd kill me, though.  These gals are entertaining, athletic, strong and independent people who showcase their talent quite nicely.  I also gotta say that they are as tough as they come. 

With all that written, the Lehigh Valley Girls lost:(  It was your classic case of a Harlem Globetrotters/Washingtion Generals type of loss.   Such is life and evolving.  As I mentioned above though, they aren't (at least yet) in the same league as their opponents. 

The next event will take place Saturday, May 23rd... same place... same time (doors open at five and the bout starts at six).  I'll be there, soaking in the feeling of tucking my genitals between my legs and watching some very athletic women do what they do best... being physical and entertaining... unlike some of the more "marketed & popular" sports out there. 

Some folks may wonder where to sit at these events.  I say you should sit close to the second corner, where some of the more furious action takes place.

On a final note, Roller Derby needs Vince McMahon.  I say that for no other reason than I'd like to see these gals profit from the sweat and bruises they entail.  I even wore my Vince McMahon shirt to send my subliminal message of support:)  Then again, perhaps their profit is in their passion for what they are doing.  If that's the case, we could all learn a bit or two from that.

Sometimes the best laid plans go unplanned. Before Jennifer moved in with me, she visited a few months earlier. On our way to pick up some mundane cleaning supplies, we accidently came across The Allentown Farmer's Market. Now, despite living here since the tender age of twenty-four, I'd never been there. Okay, so I don't get out much.

We decided to peruse this uncharted territory and had a freaking blast! We both fell in love with the place. We go there almost every week.

One place stood out above all the others. Clover Farm's has a stand there selling some of the highest quality meats I've ever had a chance to chow down. While I may not get out much, I've had my fair share of high quality cuisine, working at a few dining restaurants before entering the wonderful world of mortgages.

I wrote that Clover Farm's stands out. And I mean it. One of the main reasons for this has to be this guy. When God handed out personalities, he/she went the extra mile with Mr. David. This chap has more personality in his pinky finger than most folks have when popping poppy seeds. And he knows his meat (avoid perverted takes on that comment until a later date;)

While I'd love to list some of the wonderful menu items, I will let the pictures speak for themselves.

And here's a buddy of mine from my bachelor days, when I climbed trees, scaled fences, and spent way too much money at the locally watering hole.

To pre-order any of the fine feasts that can be had, contact David at 610-751-4211. And if you still have money left over to buy a home, contact yours truly at 610-653-0317 or email me at jsardi@ihmci.com.

For a zen look into romantic bliss, see below:)