Lee Barroll's Blog

Home Warranties

Lee Barroll — Tue, 01 Dec 2009 12:56:27 +0000

I confess that I never was a big believer in add on warranties or insurance. Over the years I found that if I would purchase the additional protections, the term would run out prior to having to use the protection. Or the warranty would expire before it was needed. (I have never been able to figure that one out.) As far as the home warranties that are offered on the purchase of a home I personally would never have bought on if it was coming out of my side of the transaction. My Realtor insisted it be part of the contract. and it was paid buy the seller. (He really did an awesome job of negotiating the purchase agreement.) Fortunately for me I listened to him. Last month the air diffuser fan on the HVAC unit failed. As it was cooling down in our area we noticed when we had no heat. I did not even think about the warranty. I just called the HVAC guy I know and asked hi to come out and fix it. $73.95 later we were told we need a new diffuser and the cost was estimated at $724.00 for parts ad labor. Now, I am thinking “How about this home warranty I have?” Called Old Republic and spoke to the representative regarding the repair. He gave me my options, which included a partial reimbursement for the work to be done by my out of network contractor or having the unit repaired by an network contractor and paying the $50.00 deductible. I came to my senses. We had the unit repaired by a network contractor. Kept most of my money. Thank you, Mike. Home Warranties Add Value to the Transaction. Especially when the seller is paying.

Lee Barroll

First Community Mortgage, Inc.

8115 Isabella Lane, Suite 11

Brenwood, TN 37027

615-243-1301

lee.barroll@fcmhomeloans.com

This Month In Real Estate: 2009 First Time Home Buyer Tax Credit Special Edition

Lee Barroll — Tue, 24 Nov 2009 16:51:50 +0000

Everthing you want to know about the First Time Homebuyer Tax Credit.

You can contact me, Lee Barroll at 615-243-1301 or mailto:lee.barroll@fcmhomeloans.com with any questions.

Lee Barroll

Mortgage Consultant

First Community Mortgage, Inc.

8115 Isabella Lane, Suite 11

Brentwood, TN 37013

615-243-1301 (c)

Buying a Condominium in Franklin/Brentwood, TN?

Lee Barroll — Mon, 23 Nov 2009 22:44:00 +0000

As a loan officer I have been called by clients and referral partners about buying or listing a Middle Tennessee Condominum. To say the least it is challenging. The rules keep changing. The concern for the buyer or the listing agent has to be “What kind of financing is available for this unit? Can it go FHA? Can I get a confoming conventional loan? Are there any non-conforming products available for a non-warrentable condominium?

What does this mean? Determine what kind of Financing is available for your UNIT. (A cash offer is the exception.)

Is it a Planned Unit Development? A PUD? If so now worries as these are treated as a single family dwelling attached. Normally a townhome style unit.

What is the ratio of investor to primary residence owned units? If the ratio is above 51% investor owned you may have problems.

Has the HOA been in the control of the residents for more than one year?

Have at least 90% of the units been sold or pre-sold?

Does any single entity own more thatn 10% of the units?

It is best to get with your loan officer early and see what financing options are for the unit you are interested in. Please call Lee Barroll at 615-243-1301 or email lee.barroll@fcmhomeloans.com.

Ever wonder what the current rates are in Franklin, TN?

Lee Barroll — Sat, 21 Nov 2009 18:31:25 +0000

Have you ever wondered what the current interest rates are for a mortgage loan in Franklin, TN? Freddie Mac publishes a weekly survey on interest rates throughout the county. Granted, it is not lender or market specific however it will provide a snapshot of where they are. Lenders typically move together leading or following up or down. At any point we should be within an .125 to a .25 of each other. If you are looking to see where rates should be this is a good resource. Me, I always quote me best rate at the time of the application. And I start with zero origination fees and zero discount points. If my client is looking for a particular rate I will show them what it would cost in discount points and we can see if the savings justifies the cost. Sometimes yes and most times no. Keep in mind discount points and origination fees can be paid by the seller, if you are buying a house, and negotiated into the purchase agreement. Check it out and see where your lender falls. Freddie Mac Weekly Rate Survey.

Lee Barroll

Mortgage Consultant

First Community Mortgage, Inc.

8115 Isabella Lane, Suite 11

Brentwood, TN 37013

615-243-1301 (c)

615-620-4706 (f)

leebarroll@fcmhomeloans.com

www.leebarroll.com

Loan Modification Scams

Lee Barroll — Wed, 18 Nov 2009 14:03:01 +0000

Thinking about Loan Modification Scams. With everything that is going on and the fact that we all are hoping to pull out of this recession and that it is over. There are still people who need help. Unfortunately there are others that will prey on folks when they are at their most vulnerable. Not to ramble, let me get to the point. Not to long ago my phone rang. It was an out of state number showing on the caller ID. When I answered the caller asked for Charles Barroll. My hackles raised immediately as only those who do not know me ask for Charles. I go by Lee. I said “Yes?” He then stated he was from the Attorney’s Office calling about my mortgage. I knew something was up, I did not have a mortgage in my name at the time. When pressed regarding the mortgage in question and what agency was calling the caller hung up. I am thinking it was some sort of scam regarding a home loan or home loan modification. It makes me wonder how many people are getting called and because they in need they think it is a legitimate offer? Loan Modification is not what any of us want to do but it is in some cases unavoidable. What these scammers offering to help with loan modification are doing is charging and upfront fee to do what the homeowner can do for themselves. Deal with the lender and negotiate a modification. Yes it is tedious and frustrating. The only thing a person will do by contracting these companies is give their money away. For a service that may not even materialize. There are several resources available to help at no charge to the homeowner.

Maybe this will help someone you know.

Closing your Tennessee Mortgage loan by November 30th, 2009

Lee Barroll — Mon, 09 Nov 2009 13:36:05 +0000

Closing your Tennessee Mortgage loan by November 30th, 2009. It used to be that closing a loan was a relatively simple process. Call the local Nashville lender, give them the information and within a few minutes they were going over options and planning a closing date. Within the past 18 months most of this has changed. How can you, the borrower, help make sure your mortgage loan closes on time?

Be Prepared. These are the items your loan officer is going to need to process your loan. If you have them ready when you meet it will help tremendously.

Application information -

Residency. We have to go back 2 years from application. All addresses where you have lived. If renting please have the name and contact information for you landlord.
Employment. All jobs held in the 2 years prior to application. Please have the telephone number and address for the employer. In the event the employer is no longer in business we would need the address only.

Income –

2 most recent paystubs. All jobs you currently hold. If you get you paycheck deposited directly into your bank account you will still get a paystub from your employer. They are required to provide this. You may have to ask HR for help if you do not already have access to these.
2 most recent years W-2 forms and 1009’s if paid as a contractor. All forms.
2 most recent years tax returns – complete. With all Schedules. Be sure to sign page 2 of the 1040.

Assets –

Liquid or semi liquid. Bank accounts, checking and savings. Stocks, bonds, money market accounts. Retirement accounts, 401K and IRA. The underwriter will be looking for the most recent 60 days. On most checking accounts the statements cover a 30 day period. They will want to see the 2 most recent statements. For account statements that cover 90 days they will want to see the most recent. All accounts, all pages. (If it says page 1 of 6, then they want all 6 pages even if it is blank.) They are looking to see that the money you plan to use to put down is yours and is not a loan. This is referred to as source and seasoning.
Gift funds- the down payment can be in the form of a gift. If it is a gift you will need to show where the money came from. That is was their money to give. And both parties will have to sign a gift letter attesting that it is in fact a gift and will not be required to be paid back at anytime in the future. The best way is to have the gift funds provided to the borrower in the form of a certified check. Have the person giving the finds listed as the remitter. Make a copy of the check and the deposit slip.
Be prepared to explain any large deposits into your asset accounts. The underwriter will want to know where the deposit came from. That is an acceptable source. (Not a loan.)

Letters of Explanation -

In cases where the paper trial is not clear of if there are items that need to be clarified for the loan officer and the underwriter you will be asked for a letter of explanation. Just a simple letter explaining what happened signed by the borrower.
For credit issues please be prepared to furnish supporting documentation for any items that you may need to dispute. Talk to your loan officer. Not all derogatory items need to be addressed.

Home Owners Insurance –

The borrower is going to have to provide proof of coverage at closing. You may want to use the company that currently has your automobile coverage. I recommend that you shop for at least 2 if not 3 quotes. Because all rates are not the same. And when getting a quote be sure to let the Insurance Agent know that you may be willing to bring your auto policy over to their company as well. This allows for a multi-line discount. It could save you money.

Proof of Identity –

Drivers license or state issued ID card.

Just a few more things to note –

When making copies please be sure that they are clear copies, legible and show the entire document that is being copied. Always copy only one item per page.

Be available to your loan officer. The loan officer will try and anticipate things at the front end of the application. Everything is gathered up front. The underwriter has no questions regarding the supporting documentation and the loan goes smoothly to closing. However there are times when documentation is not available and will need to follow or the underwriter may have further questions regarding the loan application. Or guidelines change. (This happens.) If you are available to you loan officer these items can be addressed and the file cleared to close. Notify your loan officer immediately if anything changes as far as employment or residency. Don’t open up any new lines of credit from the time you apply for the mortgage loan and the time it closes. You want everything to remain the same.

The bottom line. When you have questions, ask your loan officer. They are in the best position to answer the questions as they relates to your mortgage loan application.

Should you have any further questions regarding the loan process please contact me, Lee Barroll, at 615-243-1301 or lee.barroll@fcmhomeloans.com.

Grand Opening – First Community Mortgage, Inc 11/03/2009 4:00 PM

Lee Barroll — Tue, 03 Nov 2009 15:42:13 +0000

Please join us as we celebrate the Grand Opening of our new location. 11/03/2009 4:00PM

First Community Mortgage, Inc., a subsidiary of First Community Bank of Bedford County, is a local bank, with local lending and we are proud to be in your hometown with local service. Andy Voyles and his team of professional mortgage consultants have the perfect loan for your unique needs. Please stop by for refreshments, a tour of our new offices, and to say hello. We look forward to seeing you there! Thank you for your support!

8115 ISABELLA LANE, SUITE 11

FRANKLIN, TN 37027

615.620.4705

www.fcmhomeloans.com

DOs and DON’Ts during the Mortgage Process

Lee Barroll — Tue, 08 Sep 2009 23:45:42 +0000

DOs and DON’Ts during the Mortgage Process. As a buyer you want the mortgage process to go as smoothly as possible for you. So I’ve compiled this list of mortgage DOs and DON’Ts, based on many years of experience helping people like you. By following these guidelines, you can help make sure that your loan processing and closing are completed as quickly as possible.

DO:

Do ask questions and be informed.
Do provide photocopies of all requested documentation in a timely fashion.
Do keep your file current with the most recent copies of your pay stubs and bank statements.
Do continue to make all payments on credit cards, loans and rental or mortgage accounts as agreed.
Do maintain a paperwork trail on everything connected to your application. A good place to maintain this is the document folder provided to you at application.
Do (if purchasing) provide a copy of your pre-qualification,pre-approval or commitment letter and your Mortgage Loan Originator’s contact information to your realtor.
Do be cautious of homes referred to as needing TLC or“fixer-upper.”
Do inquire of the real estate agents/seller as to whether or not a property may be located in a flood zone. If the improvements lie within a flood zone, you may be required to obtain flood insurance coverage as a condition of your loan.
Do consider the merits of having home inspections conducted/required as part of your purchase contract. (An ounce of prevention is worth a pound of cure.)
Do consider negotiating a “Homebuyer Warranty” as part of your purchase offer (existing homes).
Do obtain a legible and fully executed copy (signed by all parties) of your purchase contract.
Do make a copy of your escrow deposit check provided with your contract offer and provide evidence that it has been cashed/deposited by the escrow/closing agent.
Do arrange for a satisfactory homeowner’s insurance coverage binder on your home effective on the date of your closing. This is normally done after receipt of the appraisal as the appraisal may contain information about the home that is needed by the insurance agent to provide you with an accurate premium quote.

DON’T:

Don’t apply or take out new credit cards, auto or personal loans or have new credit inquires in your credit bureau file during the course of your loan process and closing.
Don’t make any large unverifiable and un-documental deposits or withdrawals to your checking or savings accounts. Your good faith estimate (GFE) provided to you will disclose the Required Funds For Closing. Don’t allow your deposit accounts to drop below this amount.
Don’t quit or change employment.
Don’t write any insufficient funds checks (NSF).
Don’t take any cash advances on credit cards to pay for your escrow deposit.
Don’t withhold payments to accounts to be paid off in closing without first discussing it with your Mortgage Loan Originator.
Don’t make a “contract purchase offer” for an amount higher than your pre-qualification or pre-approved amount without first discussing the details with your Mortgage Loan Originator.
Don’t include any seller’s personal property (furniture, machinery, etc.) in the purchase contract as only real estate is permissible.
And most of all, don’t hesitate to call me if you have any questions or concerns at all during the loan process. I am here to help.

Lee Barroll

Mortgage Loan Consultant

First Community Home Loans

615-243-1301

lee.barroll@fcmhomeloans.com

Why Refinance now?

Lee Barroll — Sun, 30 Aug 2009 19:34:07 +0000

Why Refinance now? Mortgage Rates are still at historic lows and most people can take advantage of this opportunity to benefit from refinancing.
If you are interested in any of the following:

1. Changing the rate and/or term of your existing loan. This may save money both on a monthly cash flow basis as well as on the amount of interest you will pay over the life of the loan.

2. Access cash/equity to consolidate debt and save monthly on a monthly basis. This can have a tremendous impact or the interest a person pays on their debt depending on how the debt is structured.

3. Access cash for a major purchase such as home improvements or a automobile or possibly to finance education.

Now is the time to consider refinancing you current mortgage loan.

Even though many loan programs have changed there is still opportunity for most people to benefit from refinancing. Things to consider when researching a new mortgage:

1. Government loans such as FHA loans and VA loans allow for higher loan to values and do not rely so much on credit scores as do the conforming conventional loans.

2. Now is a great time to refinance if you have an adjustable rate mortgage. Converting it to a fixed rate will provide security as well as peace of mind going forward.

3. Convert your 30 year loan to a 20 year term. Your payment may not rise and you will see great savings in the interest you will pay on the amount of the mortgage.

Should you have any questions regarding your opportunity to refinance please contact me:

Lee Barroll at 615-243-1301 or lee.barroll@fcmhomeloans.com

How to compare rates.

Lee Barroll — Wed, 25 Mar 2009 03:07:05 +0000

How to compare rates. As a borrower shopping for a rate, and you should, it is important that you know what you are looking at. It can be hard to figure out how much the rate is costing if you do not have the figures in front of you. The loan officer you are working with has the ability to provide you with an estimate of costs and when disclosed properly this will allow you to see how much the rate is costing you. It might be in the form of a Good Faith Estimate or a Closing Cost Worksheet. There are 4 main parts to this form.

Items payable in connection with the loan or the lender charges. Typically this is the only part the loan officer can control directly. These are the fees you should compare directly. What you should look for is an origination fee, a loan discount and/or a broker fee. These are fees that are directly related to the rate and/or loan officer compensation. It is not that they are good or bad it is that they are a cost to you the borrower. Normally the presence of this fee should allow for a lower rate although that is not always the case. It is best to total up all of the fees and compare them, proposal to proposal. Ask questions about the fees. What they are for, etc. Standard fees you might see are the credit report fee, appraisal fee, tax service fee, and flood certification fee.

Items required by the lender to be paid in advance. These are the days of interest and the Homeowners Insurance required at the closing of the loan. Interest is paid in arrears on a mortgage loan. When you make your mortgage payment at the first of the month interest is paid on the balance of the loan back to the beginning of the month prior. Then the rest goes against the principal. So at the closing of the new loan the lender will prepay interest forward to the end of the month and your first payment will not be due until the first day of the following month. The later in the month you close the loan the less interest you pay on the money you are borrowing.

Reserves deposited with the lender. These are the escrows. This is the money collected at closing to seed the escrow account if you are including the taxes and insurance with your payment. In some cases you can choose to pay the taxes and insurance yourself. This will lower the transaction costs but you will be responsible for paying the taxes and insurance as the come due.

Title Charges. This protects the lender and the buyer against defects of title. This also includes the fees for the attorney to prepare the loan documents and close the loan. The Title Company will also disburse the proceeds of the loan when if funds.

This is the information you should receive in order to evaluate the cost of the loan to you the borrower. Sometimes a lower rate comes at a higher cost. All things being equal if the loan is disclosed correctly the title charges, escrows and items paid in advance should be about the same. It is the Lender Charges that you will have to compare. And if you are happy with the fees and the rate is inline with the market you will know you are getting the loan you want.