Joe Costa Mortgage Notes For Realtors Volume 4: Learn Your Role And "Own It"

Learn Your Role and "Own It"

This is a concept that requires a real estate agent to understand that your mortgage professional is on your side and very much so wants to get your joint client through a successful escrow. Understand, just like your mortgage professional doesn’t want to overstep his/her boundaries with advising your client on the real estate side do the same on your end.

1-Let the mortgage professional shine and “do their thing”. After all you trusted your mortgage professional to refer your client to them. Follow through with that approach and “Own It”. If you need to have another lender review a particular file that has a challenge, discuss this with current loan officer so everyone can be clear and on the same page.

2-Learn your strengths and weaknesses 

3-Inspire through desire 

Call Joe Costa, San Diego's mortgage professional, with Park Place Financial Group or go to www.joecostamortgagenotes.com to gain insight on how to make your escrow process run more smoothly

Joe Costa Mortgage Notes for Realtors Volume 3: Inspect Not Expect

Inspect Not Expect

This a concept most of us try to practice and some of us are better at it than others. This is a simple approach that helps to put you and your clients in a position to hopefully succeed. The escrow process has so many moving parts and when you expect things to get done rather than inspecting things that need to get done you probably find yourself getting frustrated and losing your focus of commitment before ego. This is the second part of the concept, if not followed, could lead to the beginning stages of deteriorating the relationship with your mortgage professional.

1-When referring a client to your mortgage professional set up time lines to review and discuss buyers buying possibilities.
2-After escrow is opened review with mortgage professional times and important inspections. Keep in mind these time lines are not etched in stone. 

If you are interested in learning to build a "Hurricane Proof" relationship with a mortgage professional contact Joe Costa with San Diego's Park Place Financial Group.

Park Place Foundation Group Pays It Forward At The Bannister Family House

Joe Costa's new foundation,  Park Place Foundation Group, is looking to pay it forward by hosting a meal at San Diego's Bannister Family House.  The  Bannister Family House was opened in 1994 for families whose relatives are receiving medical care with the UC San Diego Health System.  It provides an affordable place for families to stay and feel like they are being surrounded by the comforts of home.  The BFH is not only a place to sleep but also a place to eat, do laundry, relax, and meet other families going through a similar experience. Joe, his co-chair Marni Wolf, and their children will work together to come up with a lunch menu to be served to the guests.  The children are excited to be a part of the foundation and helping give back to their community and other families in need.  Park Place Foundation Group will also be donating canned goods as well as the meal to be served.  Joe will be talking about the upcoming event on his weekly radio segment,  "Joe Costa Mortgage Notes" on 1170 am Friday from 7-9pm on San Diego's The Answer.  For more information about getting involved with the foundation or donating canned goods to The Bannister Family House please contact Joe Costa at joe@parkplacefg.com or Marni Wolf at marni@parkplacefg.com.

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.

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.

Reasons to Refinance Your Current Home

There are a variety of reasons why homeowners want to refinance their current mortgage.  Mortgage rates are still low in the current market, and one reason to refinance would be to obtain a lower interest rate over the course of the loan and lower your monthly payment.  Maybe you are hoping to cash out some of your home's equity by doing a refinance? Your house needs updating or you need help paying for your daughter/son's college tuition, or what if you just want extra cash to take that vacation of your dreams? With this in mind you will want to get a loan that is above the remaining balance of your current mortgage. This doesn't necessarily mean; however, that your monthly payments will go up.  If you refinance at a lower interest rate than you have now, you may be able to take out money and still have a lower monthly payment.  Another reason you may want to consider refinancing is to consolidate some of the other debt you might have built up with higher interest rates (ie. credit cards, vehicle loan).  Refinancing is an option if you have enough equity in your home. Finally, some borrowers are looking to pay off their mortgages over a shorter period of time while building up their equity at a more rapid pace.  Going from a 30 year loan to a 15 year loan might help you achieve this goal.  To help you understand all of your refinancing options, contact Joe Costa at San Diego's Park Place Financial Group.  www.parkplacefg.

Why Should a Borrower Go with a Boutique Mortgage Company?

The mortgage industry, along with most industries today, is highly competitive.  As a borrower it is often dificult to know which mortgage company or lending institution to go with when applying for a home loan.  San Diego's Park Place Financial Group is a boutique mortgage company that prides itself with hands on service.  Joe Costa, broker and owner, states that "it is essential to build long lasting relationships with our clients.  This begins with building a solid foundation from the beginning with our borrowers.  At Park Place Financial Group we are available at all times any day during the week to answer any of our clients questions or help walk them through any part of the loan process."

The Importance of Dealing with a Mortgage Professional Prior to Looking for a New Home

It is extremely important in today's market to speak to a  mortgage professional before you even begin your search for a new home.  Getting a loan to purchase your new home can be a very complicated process especially with time frames that are put into place by real estate contracts.  By consulting a professional prior to your search you will have a much clearer idea of all of the details going through the application process entails.  Do you  know how important your down payment, FICO score, and employment history are to obtaining the right loan? Do you know that you should not buy a car, change or quit your current job, or use your credit cards excessively when you are going through the loan approval process?  Joe Costa, a San Diego mortgage professional from Park Place Financial Group can help you start the process by prequalifying or preapproving you before you begin your home search.  When you do find the perfect home and are ready to make an offer, you will have more leverage by being preapproved and having already consulted  a mortgage professsional.

Getting a Low Interest Rate

When you are offered a "rate lock" from your lender, it means that you are guaranteed to keep a specific interest rate over a determined period while you are working on your application process. This means that your interest rate will not get any higher while you are working through this application phase. Rate locks can vary in length, between 15-60 days, with the longer time periods usually costing more. You can get a longer period for your rate lock, but in making this choice, you will probably have a higher interest rate than you would have with a shorter rate lock period.

In addition to going with a shorter rate lock period, there are several ways that you can attain the best mortgage interest rate. The bigger downpayment you pay, the better your rate will be, since you will have more equity from the beginning. A borrower can opt to pay points to improve an interest rate for the term of the loan, which means you will have to pay more initially.  Joe Costa from San Diego's Park Place Financial Group educates his clients on this strategy and is a good option for certain borrowers to pay points up front to improve the interest rate over the life of the loan. You will pay more initally but you will come out ahead in the end.  

Determine How Much You Can Borrow

A couple of factors determine the amount you can borrow when purchasing a home.  What kind of monthly payment are you looking for? And given your unique credit and employment history, income and debt, and goals, how much will a lender loan you? Use the calculators on our Park Place Financial Group website to determine your monthly payment amount. We'll also help you through different scenarios by asking a few simple questions. Because lender guidelines are fairly standard, we can give you a good idea of how much you can borrow after a short conversation.  Call San Diego's premier mortgage professional Joe Costa at (646) 245-7856 or apply online at www.parkplacefg.com.

Park Place Foundation Group's Charitable Participation

Park Place Foundation Group is excited about our first group event in which we will participate in serving lunch at Father's Joe's Village on Thursday, August 13, 2015.  Joe Costa, CEO of Park Place Financial Group's mission is to Pay It Forward to the San Diego community where he works, lives, and raises his twin boys.  The San Diego mortgage company is establishing this charitable foundation to give back in a way that not only helps people financially but also to be able to meet and interact with the people the Foundation is helping.

Park Place Financial Group Pays It Forward

Park Place Financial Group has recently established it's own charitable foundation known as The Park Place Foundation Group.  Joe Costa, CEO of Park Place Financial Group, wants to pay it forward to his community in San Diego, California.  Park Place will donate $100 for every purchase loan or refinance that the company closes. Our first charitable event will be serving meals at Father Joe's Village.  We are also establishing an ongoing virtual food drive for Feeding America.  You can donate to the food drive by either accessing our webiste at www.parkplacefg.com or on our Facebook page The Park Place Foundation Group.

Loan Programs With Little or No Down Payment

Often borrowers don't have 20 percent to use as a down payment on a home purchase.  There are several different options instead of the traditional loan program with PMI(Private Mortgage Insurance).

• Federal Housing Administration (FHA) mortgage loans
  The Federal Housing Administration (FHA), which functions as part of the U.S. Department of Housing and Urban Development (HUD), plays an important part in helping low to moderate-income buyers get mortgages. Part of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA provides mortgage insurance to private lenders, enabling homebuyers who might not qualify for a typical loan, to obtain a mortgage. Interest rates for an FHA loan are typically the market interest rate, but the down payment amounts with an FHA loan will be lower than those of conventional loans. Closing costs can be included in the mortgage, and the down payment may be as low as 3 percent of the total.
• VA mortgage loans
  With a guarantee from the Department of Veterans Affairs, a VA loan is offered to veterans and service people. This special loan does not require a down payment, has limited closing costs, and provides a competitive interest rate. Even though the VA does not provide the loans, it does issue a certificate of eligibility to qualify for a VA loan.
• Piggy-back loans
  You may finance a down payment with a second mortgage that closes with the first. Generally the first mortgage covers 80% of the cost of the home and the "piggyback" is for 10%. Instead of the usual 20 percent down payment, the homebuyer will just have to cover the remaining 10 percent.
• Carry-Back loans
  In the option of the seller "carrying back a second mortgage," the you borrow a portion of the seller's home equity.. In this scenario, you would borrow the largest portion of the purchase price from a traditional mortgage lender and borrow the remaining amount from the seller. Typically, this kind of second mortgage will have a higher rate of interest.

Call Joe Costa at San Diego's Park Place Financial Group today to find out about all of your options.

Your Down Payment

Lots of buyers can qualify for a mortgage loan, but they don't have a lot of money to pay a down payment. Get started here

Tighten your belt and save. Scrutinize your budget to discover ways you can cut expenses to save for your down payment. You might also decide to enroll in an automatic savings plan at your bank to automatically have a specific amount from your take-home pay moved into your savings account. You could look into some big expenses in your budget that you can give up, or reduce, at least temporarily. For example, you may move into less expensive housing, or stay local for your annual vacation.

Sell items you don't need and find a part-time job. Look for an additional job. This can be rough, but the temporary difficulty can provide your down payment money. In addition, you can put together an exhaustive list of items you can sell. Unused gold jewelry can be sold at local jewelers. A closet full of small things could add up to a nice sum at a garage or tag sale. You might also look into what your investments may bring if sold.

Tap into your retirement funds. Explore the details for your particular plan. Some homebuyers get down payment money by withdrawing funds from their IRAs or borrowing from 401(k) plans. Be sure to ask your plan representative about the tax consequences, repayment terms, and possible early withdrawal penalties.

Ask for help from generous family members. First-time homebuyers are sometimes lucky enough to get help with their down payment assistance from giving parents and other family members who are willing to help them get into their first home. Your family members may be pleased at the chance to help you reach the milestone of buying your first home.

Learn about housing finance agencies. These types of agencies provide special loan programs to low and moderate-income homebuyers, buyers with an interest in rehabilitating a house in a targeted area, and additional specific kinds of buyers as specified by the agency. Financing with this kind of agency, you may be given a below market interest rate, down payment help and other advantages. These kinds of agencies may assist you with a lower interest rate, get you your down payment, and offer other assistance. The main goal of not-for-profit housing finance agencies is boosting residential ownership in particular parts of the city.

The satisfaction will be the same, no matter which method you use to come up with the down payment. Your brand new home will be well worth it!

Want to discuss the best options for down payments? Call Joe Costa at Park Place Financial Group located in San Diego, California 646-245-7856.

Is Refinancing Worth The Cost?

Some have said that only when your new interest is at least two points lower, should you refinance your loan. That could have been accurate a while back, but with refinancing dropping in cost recently, it's a good time to think about a new loan! Refinancing has various advantages that will often make it worth the initial expenditure a few times over.

Advantages of Refinancing

You might be able to lower your interest rate (sometimes significantly) and reduce your mortgage payment amount with your refinanced mortgage loan. You also might be given the option of pulling out some of the equity in your property by "cashing out" a sum of money to renovate your home, consolidate debt, or take your family on a vacation. With lower rates, you might also be able to build up home equity faster by moving to a shorter-term mortgage loan.

The Cost

Of course, you will have some fees and expenses during your process of refinancing. When you refinance, you're paying for basically the same things you were charged for at the time you got your original mortgage loan. Included in the list will typically be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other fees.

Do the Math

Paying discount points can get you a better interest rate. The money you'll save over the life of the mortgage loan might be significant if you have paid up front about 3% of the new loan total. We recommend that you talk to a tax professional before acting on hear-say that the paid points can be deducted on your federal income taxes.

Another thing about taxes is that if your interest rate is lowered, naturally you'll also be lowering the interest amount that you'll be able to deduct on your federal income taxes. This is another expense that some borrowers consider. We can help you do the math! Call Joe Costa at San Diego, California's Park Place Financial Group (646) 245-7856.

All things considered, for most the total of initial costs to refinance will be made up soon in monthly savings. We can help you find out your options, considering the effect a refinance may have on your taxes, if you are likely to sell your home in the near future, and your money on hand. Call us at (646) 245-7856 to get started.

Want to know more about refinancing? Call us at 646-245-7856.