Joe Costa's Mortgage Notes For Realtors Volume 2: Commitment Before Ego

Commitment Before Ego

Commitment before ego is one of the most important concepts that one needs to "get clear" on prior to formatting your real estate business model.  How you are in staying the course of your "commitment before ego" will ultimately determine your ability to sustain yourself and your reputation throughout your real estate career.

1- Use this concept to stay the course

2- Learn your strenghts and weaknesses around this concept

3- Use the energy you've been given to practice this concept

4- Help your clients-sellers or buyers with your professionalism

5- Take pride in being this way

For more details and further explanation of this important "commitment before ego" concept check out our website www.joecostamortgagenotes.com or our you tube channel Joe Costa Mortgage Notes for videos each week that will explain the concept in much greater detail.  You can also contact Joe Costa at San Diego's Park Place Financial Group directly joe@parkplacefg.com or call his office (858) 764-2583 or cell (646)245-7856.S

Joe Cost's Mortgage Notes for Realtors Volume 1: Building a "Hurricane Proof" Relationship with a Mortgage Professional

In order to embark on the journey of building a "hurrican proof" with a mortgage professional one needs to clear their mind and let the chattering monkeys go.  The process for this starts with answering the following questions:

1- Is your real estate career a way of life for you?
2- How important is your reputation to you?
3- Do you truly pride yourself on doing the right thing?
4- Are you trying to win a popularity contest or conduct business?
5- Are  you currently working with a mortgage professional? If not, why?

If you are looking to buile a solid foundation with a mortgage professional and would like more

information on Scontact Joe with San Diego's Park Place Financial Group. Go to www.parkplacefg.com or email him at joe@parkplacefg.com

Factors That Can Affect Closing On Time

According to National Association of Realtors, roughly 60% of purchase contracts actually settle on time. This means 6 of 10, of your transactions close on time.

What gets in the way? 

Financing:           39%

Appraisal:           16%

Title and Deed:   11%

Contingencies:     8%

Sellers/Buyers cold feet, HOA obstacles, etc.

Financing being the number one reason why a transaction fails to close. What specifically interferes is buyer’s income is not completely verifiable. Second, is down payment, and last but not least, buyers do something ill-advised during the processing of their loan file.  Call Joe Costa with San Diego's Park Place Financial Group today to guide you through the loan process and help close your escrow on time.

Debt Ratios for Residential Financing

Lenders use a ratio called "debt to income" to decide the most you can pay monthly after your other recurring debts are paid.  How can you figure the qualifying ratio?  In general, most conventional mortgages have a qualifying ratio of 28/36.  FHA loans are a slightly less restrictive requiring a 29/41 ratio.  The first number in a qualifying ratio is the maximum amount (as a percentage) of your gross monthly income that can go to housing ( this includes mortgage principal and interest, private mortgage insurance, hazard insurance, property tax, and homeowner's association dues).  The second number in the ratio is the maximum percentage of your gross montly income which can be applied to housing expenses and recurring debt together.  Recurring debt includes payments on credit cards, auto/boat loans, child support and the like.  To give you an example for a conventional loan using the 28/36 ratio, Gross Monthly Income of $6500 x .28=$1,820 can be applied to housing.
Gross Monthly Income of $6500 x .36 = $2,340 can be applied to recurring debt plus housing expenses.  An example for an FHA loan with a 29/41 qualifying ratio, Gross Monthly Income $6,500 x .29=$1,885 can be applied to housing. Gross Monthly Income $6,500 x .41=$2,665 can be applied to recurring debt plus housing expenses. Remember; however, that these are just guidelines. Joe Costa would be happy to help you pre-qualify to help you determine how much you can afford. At San Diego's Park Place Financial Group we answer questions about qualifying all of the time. Call us at (858) 764-2583 to answer any of  your questions or check out our website at www.parkplacefg.com and apply for a loan online.

Park Place Foundation Group Pays it Forward at Father Joe's Villages and Then Gets Paid Right Back

Joe Costa embarked on his new foundation's, Park Place Foundation Group, first volunteer event at San Diego's Father Joe's Villages. In attendance were Joe's twin boys Hudson and Presley Costa, his Co Chair, Marni Wolf, and her two daughters Jordan and Carly Wolf, and a friend Mason Sandford. It was a great experience helping serve lunch to people that would otherwise go hungry if not for the all of the wonderful people at Father Joe's.

When we first arrived we were taken back to the kitchen where we washed our hands and put on aprons, gloves, and hair nets.  Everyone was given a job from taking plates to serving the different food options.  The kids ages 11-13 did a great job keeping the line moving along and making sure that everyone got exactly what they wanted.  It was a very humbling experience to be able to help people who are basically in survival mode.  To see a mom and her five young children really hit home especially since we were doing this with our own children.

Everything seemed to be moving along very smoothly until my youngest daughter tapped my shoulder and said she couldn't see and that everything was black.  I held on to her tightly when Joe walked up to me noticing that something was not quite right. He grabbed onto her just as her eyes started to roll back into her head and her legs collapsed and she went unconscious. We placed her gently on the ground and rolled her on her side.  At this point I was so panicked, but luckily she quickly came to.  All of the people at Father Joe's were at her side fanning her and putting ice under neck to make her feel more comfortable and safe while they were calling the paramedics.

In the end, Park Place Foundation Group's first volunteer event encompassed two very important life lessons: giving back and appreciating the delicacy of our lives.

Does Your Interest Rate Determine the Actual Cost of Your Mortgage?

There are often misconceptions by homeowners and prospective homebuyers when it comes to the mortgage process.   Joe Costa  a mortgage professional with San Diego's Park Place Financial Group can help you understand how the process works.  A very common misunderstanding is that the interest rate reflects the true cost of the mortgage amount.  The interest rate alone is only a part of your mortgage payment.  The APR or annual percentage rate actually reflects the true cost of your home mortgage payment.  The APR includes not only your interest rate but also other factors such as points, private mortgage insurance(PMI) if applicable, and other fees for underwriting and loan origination.  When a potential borrowere or homeowner is looking to shop around and compare rates for a new loan or a refinance,  it is extremely important to remember that the APR is the more inclusive rate and will give you a better idea of what you will truly pay for your mortgage.