Jason Sardi, Mortgage Banker

Cash-flow is a foreign term to many folks these days. The ability to spend, save, collect and consume aren't where we are used to being. In fact, I would venture to say a whole lot of people have one mindset in their mind... save money.

There's one issue I have with that. What some folks are doing, or rather thinking, is that they should save money in the short-term... and reap wealth when the "economy" and "housing industry" comes back. Let me tell you something about short-term, it seems to translate to those very results as well.

*I should warn you; I like putting quotations around words for no other reasons than it makes me feel special and stupid... all at the same time.*

Let's just say that there's a bunch of individuals out there who aren't feeling (tangibly) the pinch that is going on with others. Let's just say that they are more than making "ends meat". They aren't rich and perhaps will never be. Yet, they are secure in their financial situation. They bought their house exactly two years ago with a 6% rate attached to their 20% down payment. That's a 30-year fixed rate, if you are curious:)

Well, now there is today! If you can get a fixed rate in the mid to high 4% range, keep your mortgage payment similiar or slightly above what it is now... why not shave three years of payments and get into a 25-year term? You will pay (assuming you do;) a mortgage down faster and own your abode free and outright before you reach diapers... that's the goal, at least. That's long term wealth, my friends. If you can afford it, do it. Especially now.

My guess is that some are and some aren't... in the postion or mindset of long-term wealth.

I think we got too heavy in quick bucks in Real Estate, the Greed Factor. We also changed a paradigm from thinking a house is a roof over your head into a house is a way to make some coin. Real Estate allows us to survive, folks. There is no icing when you aren't eating the cake.

Real Estate makes coin, yet it's a roof. It's time to cover your head and ignore your ego... coin in any investment has always been up and down depending on when you sell... or if you even do. Keep when not wanted, sell when it is hot. If it isn't either, just sit back and review the perception. The medium considers all odds.

If you are lucky/capable/competent enough to be in the postion to do so, increase your payment another $100.00 or keep it the same to keep your financial lives in order.

I believe in long-term wealth, even/especially when it involes long-term pain. Wealth ain't "Lincolns" or "Franklins"... it's a smile:)

I typically add a song or song(s) to my post. If you stuck around this long, here it is:)

This post was originally written in May of 2008 but I thought it was not a bad idea to re-post it now. Amidst the talk of rock-bottom rates, there will be a lot of folks out there shopping for a mortgage. So, from the synapses of my brain to your eyes... here's my recommendations when shopping for a mortgage:

I'm well aware that most of us fancy ourselves smart shoppers. Whether we are buying a car, groceries, looking for the next Gas Station, sorting through bids on our next Home Improvement Estimate, shopping cell phone carriers...etc... we want the best deal. We want it cheap and efficient.

After over 7 years of being in the Mortgage Business and learning from and being trained by folks who have been in the business since Jimmy Carter took office, I've learned two things. Like any job, this can be frustrating as hell, but I absolutely love what I do. I've also learned how to shop smart! I'm only licensed in Pennsylvania and have friends & family outside the confines of where I can lend, they count on me to guide them accordingly.

That written, I want to pass some of my own personal thoughts on how you as a consumer can shop smart to make certain you are getting the best Mortgage for your needs. I'd ask for a drum roll but realize you have better things to do ... so I'll get to it.

5 Ways of Shopping Smart For A Mortgage:

- Begin the conversation with any Mortgage Company/Direct Lender/Bank with the following question, "What's your Interest Rate?" If the person on the other end quotes you a rate, hang up! Well, don't hang up ... that's kind of rude, just say thank you and you'll get back in touch with them. If you are being quoted a rate without them knowing anything about your financial situation, credit score and history, short and long-term goals, they aren't doing their job and won't be doing your situation any justice at all.

- Education is always key. While I love to know the what's in what I'm shopping for, I demand to know the why's of what is available and at what price. Look for a teacher, not a preacher. If they use the two ears they have and listen, what comes out of their mouth becomes all that more important. Your goals and desires and needs are on the line, seek out an advocate of those very things.

- There's another question you should ask, "How do you make your money?" In any 'sales' occupation, this tends to throw some off if the consumer dares to ask that question of the Professional. Ask that question though, it's relevant. If they are doing right by you, they are earning every penny. The price you will be paying for this service will be worth its weight ten times over on one of the biggest financial transactions you will ever partake in.

- When narrowing down who you want to make application with, my suggestion is to narrow it down to three entities. Ask a family member, friend or co-worker to refer you someone they had a good experience with. Go to the bank you hold your depositories (checking & savings accounts) with. Finally, do your own leg work by making a few calls and Internet inquiries, you'll want to shop with at least one Mortgage Broker. Use your gut to get a feel for the guy or gal who just clicks with you and your needs.

- Service & Availability. This is a huge one! Answering emails, returning calls, meeting with you at their office, being there every step of the way and beyond your loan closing ... that's probably the person you'll want to deal with. Having someone to inform you every step of the way and call just to say, "How the heck are you?" is something special & human. I don't know about you, but I want to go shopping at a place that is special and quite human. In the end, those folks tend to treat you the exact same.

Don't ever be a statistic!

Jason Sardi

Mortgage Consultant

First Choice Equity Group Inc.

610-439-2166 ext. 229

Toll Free @ 1-866-262-8720 ext. 229

jsardi@fcegi.com

Licensed with the Pennsylvania Department of Banking

Let's get to it...

Should you refinance? There are some homeowners who are on the fence, perhaps scared, in a jam, or have a ton of equity that isn't doing much for them. Those folks are the ones who really need to look at their options (pro & con) and make a decision. This could be a great time to take advantage of a market where interest rates are still pretty low. If not, it is usually a great time to make a plan for down the road.

Should you buy a home? If you are qualified, I don't see why not. It's a buyers market in a lot (if not most) areas. I'll put it like this; if you have money in the bank after you leave the closing table... it may not be a bad idea. If you don't, it's a risk that may not be in your favor.

Should you take out a second mortgage or line of credit? I don't see them often right now, hardly ever. Their availability is almost nill. If you are looking for one, a local bank may be your best bet. To answer the question, to pay off high interest debt and save you money that you won't in turn spend on something else... YES~! To do home improvements~ it may not be a bad idea. To supplement your income... find another job. No, seriously.

You want to sell your home in the worst way but probably won't get what you want out of it? Yup, this can be an issue. In hindsight, you overpaid and are now undervalued. Consult a trusted Realtor... period.

Is it a good time to invest in Real Estate? I'll get to that answer at the very end of this post.

How do I shop for a mortgage? It sounds somewhat odd, but how do you pick out your favorite vegetable? It's somewhat difficult and owns many variables. Folks want a low interest rate, no surprises, accountability, trust, and something that will benefit them now and down that road. That's just a guess; I have no hardened proof. Getting someone referred to you from family, friends, Realtors, attorneys, etc is a good place to start. But you want to know my other piece of advice which you can do on your own... read the blogosphere about mortgages. Not only will you get some insight on Mortgages, you'll get insight on the person. The latter is as important as the former.

I can't qualify to refinance, what now? - That depends on what you are looking to accomplish. If you wanted cash-out, to pay off your mortgage faster, lower your rate... most likely you can't refinance because you lack the equity or your credit doesn't qualify. If it is the former, you have little control in that area. If it is the latter, working with a Mortgage Professional who understands credit is a must. They should be able to lead you in the right direction. But, if your rate is going to adjust soon and you can't qualify to refinance, it's time to modify your loan. I will be writing a post about that upcoming. If you have immediate questions, contact me at my information below.

Are there any out of pocket fees if I refinance? Yes! A one-time non-negotiable and non-refundable fee to yours truly in the amount of one million dollars. Of course I'm kidding. All applicable closing costs can be rolled into the loan amount, providing you have the equity to do just that. The only out of pocket fee is the appraisal fee, a third party fee. On a single family home in Pennsylvania, I've seen that fee range from $300.00 to $400.00.

I want to buy a home, what's the first step? Find a Buyer's Realtor. They will represent you and you don't pay them a dime out of your pocket. The very next step will be to get pre-approved with a lender. Do some shopping on your own and maybe talk to a few lenders your Realtor suggests and has maybe worked with.

One final note that I'd like to point out. I've heard a lot of yells hype whispers from folks waiting to do anything (buy a home or refinancing) until the market 'comes back'. Ponder the following:

The best time to buy something is when nobody else wants it.

Other articles that may answer some Mortgage-Related questions:

Should I pay points?

How to help make sure your loan closes as fast as possible.

Simple but important tips regarding your Credit & Credit Score.

Buying a home in Pennsylvania.

Rehab Loans.

There is the 'norm' and 'not so norm' in lending. Most folks know about refinancing, at least the general aspects of it. Perhaps you want to consolidate debt, shorten your term, lower your rate, turn equity into cash, or some other reason. You probably (whether you are a homeowner or not) have heard about refinancing before. You do a quick search, you'll be able to find a boat load of information on refinancing and a Mortgage Professional who can help you out.

Then there are loans to buy a home (maybe even for the first-time) or purchase an investment property. Those are talked about quite often as well. You do a quick search, you'll probably be able to find the information and a Mortgage Professional to help you out.

In fact, the majority of my business comes from helping people buy or refinance a home. However, there are other products out there that fit the needs that don't seem to be as commonly addressed.

I received a phone call yesterday from a gentlemen who expressed a hint of frustration. Apparently, the guy had a heck of a time finding a source that will do Land Loans. He had searched high and low before he finally found me. That reminded me that there are still some holes in lending that need to be filled, so I'd like to take a brief moment to address some of the loans we offer that fill those very holes.

We are still doing Construction Loans & Rehab Loans throughout the State of Pennsylvania!

Our Land Loans (to buy vacant land) are a specialty that many have already taken advantage of and here's a brief look at them:

* 70% Loan-to-Value

* 25 year term.

* Adjustable Interest Rate that adjusts annually, 6% Lifetime Cap. The start rate yesterday was 6.625%! There is no balloon so you could keep this loan for the duration if you chose too.

* Will even allow for up to 6% seller assist with closing costs!

And here's a few more features and niches that you may not hear about too often:

Feel free to email me or give me a call if you have any questions on the above products or to run your particular scenario by me.

To write that we live in interesting times is probably one of the more vague and dull observations I've ever laid out in my thirty-two years on this earth. If you are looking around and have an IQ below 140, you may be downright confused and a tad bit pissed that there seems to be no full-fleged short-term cure to your ailments. If you are looking around and have an IQ above 140, what the heck are you doing reading my crap? You should be out there promoting your next book on Oprah, or at least waxing intellectual with the 'interestingly' appointed Dr. Phil.

Seriously, it isn't the best of times right now. At least for the majority (I believe) of folks here in the land some vow as the promised one, it's tough. Frankly, I've felt it too. My cat Baxter used to eat Liver & Onions and now has no choice but to settle for Spam & Garlic Salt. He still loves me though and that's a damn good thing. He's an adorable little whiner.

The root of some of our troubles seems to start and end with the almighty dollar. As a guy who has done a mortgage or two in his time, I figure it might not be a bad idea to curb some of this... in my own little way. Buying a house can be a blessing or a curse,,, it depends on who you talk to or who you are working with... maybe even a mixture of the two. Here's a bit of advice from me whether you own your abode or may want to buy a home down the road:

• Do not shop Interest Rate alone! This may sound hypocritical considering one of my 'selling points' is I can get better rates than Retail Operations out there. That simply means some of the big names you see advertised or recognize cost more than a guy like me because I'm wholesale baby! Yet, don't do business with me because I'm cheaper... at least don't make that the only reason. Do business with me because I'm better equipped to handle your transaction and more importantly, YOU. Trust rarely has a price... monetarily speaking.
• Big financial decisions, like owning a home, should be a plan and not an indulgence. If you got or get away with the latter, make it work by planning what the future can hold. You don't have to be smart or lucky, just be informed. I think they call that smucky...
• Any transaction's end result should make you feel and be more comfortable. Statistics aside, if you can accomplish that... then you've done something with your life.
• Ignore the Media. Well, not totally, but take what you see and hear in stride... as their ratings ironically depend on our own demise. Folks tune into train wrecks, whether we are off track or not.
• Watch your credit and your score. I'd advise not to work with somebody who doesn't understand credit. As it stands, your standings are as important as they have ever been. It can cost you money or save you money, that's credit.

And the most important piece of advice I can give is the benefits I may receive...

Win the Lottery and call me in the morning... posing as my rich uncle who cares...