SPECIAL INFORMATION

The Ten Biggest Mistakes:

Only One Out Of Every Twenty New Home Buyers Will Ever Be Successful..

This may come as a complete shock to you.  If you take twenty first time home buyers that apply for a mortgage and follow them for 3-8 weeks, based on a national home buyer survey, only 1 will be approved with in 3 weeks with the most favorable rates and terms, 4 will overpay on their mortgage interest and closing costs, 3 will get the wrong type of mortgage, 2 will take more than 4 months to be approved and 10 will be declined.  I don't know about you, but, that's frightening to me.

Here is how you can be that one out of twenty

We pride ourselves on being the mortgage banker/broker who helps their clients become the successful ones.  By utilizing over one hundred lenders, both national and local, we are able to find the optimum loan program for all of our clients.  You undoubtedly have heard the adage "There's someone for everyone" well in the mortgage business there's a loan for everyone.  We try to find that loan as quickly as possible and with as little time delay as possible.

We have developed a system that takes the risk out of financing a home.  The key is that we have learned how to eliminate the costly mistakes that we see being made out there time after time.  We are going to share these with you in this report so you won't make them.

Even more importantly we have learned who the best service providers to work with are (i.e.  Builders, Escrow companies, Title Companies, Realtors, etc.).  You can save time by going with our referral to a preferred service provider in your area and we will be happy to give you some names of people who have been proven to be trust-worthy, hard working and efficient at what they do.

The absolute worst scenario to see is watching a would be home buyer work hard at finding their dream home and complete the negotiations with the seller only to see the deal blow apart at the eleventh hour when they find out that their mortgage has been declined!  "But the loan officer assured me it was no problem" they keep thinking.  Experiences like this are completely unnecessary.

How To Avoid The 10 Biggest Mistakes When Buying A Home and Getting A mortgage!

For over 95% of all American Families buying a home is the single largest financial investment they will ever make.   Spending $100,000 or more and leveraging yourself out for fifteen to forty years is a huge financial decision.  Because it can make or break your financial well-being, you need to know that you have made the right decision.

The truth is, two people can work at the same job, be paid the same salary, buy similar homes in the same neighborhood at around the same time and for one his home can become a financial windfall and for the other his home can be an anchor around his neck.  You wonder how this can be, but, the differences in the way each person performs their transaction can have very long lasting results.

When buying a home you need to make tons of decisions.  Most people make them without really knowing if they've done the right thing.  Have you ever been faced with so many choices?  About interest rates, down payments, the term of the loan, points, escrow's, etc.?

These are tough choices for anyone.   It doesn't matter whether you're a genius, these are hard choices to figure out.  When it comes to making these choices, you either make them on your own, or you get help.

Help from real estate agents, relatives, friends, or parents.  They all will try to help, but they usually don't have the right tools or knowledge to give you the right answers.  When you're dealing with numbers this large you need to make sure you're getting the right information and are making the right decisions.

Most of us will drive across town to save fifty dollars on our groceries, but most people will spend less than two minutes selecting a financing plan for their home.  The truth is you could never spend enough money on groceries to make up for a small mistake on your home financing.  We offer a no cost, no pressure, absolutely painless consultation.  You can have a chance to have all of your questions answered and see all of your options spelled out in plain English for you.  This is the only way you will be able to make the best decision for your needs.

Spread out over a number of years, the wrong decision can literally cost you enough to buy another home.  Because the decisions you're about to make will be spread out over thirty years and several thousand of dollars, even the smallest mistake now can throw you so far off course it can literally change the lifestyle you will be able to live.  We're going to spend the next few minutes talking about the ten biggest mistakes most homeowners make.  As we discuss these problems, try to see if you've made any of them yourself.  Please be honest with yourself.  If you have made any one of these mistakes, you could be dangerously off course!  My goal is to make sure you never make these mistakes.

Studies have shown that the heart rate of the average mortgage loan applicant is actually faster than the heart rate of a NASA astronaut just before take off.  I have heard that in polls people would actually rather go to the dentist than to go to their banker for a home loan.   Personally, I can't stand going to the dentist, so that really makes me feel awful about how people must feel.  Here's a story to illustrate the how things should not be done.

Jim and Donna were totally confused about their situation.  Here they were, sitting in this new banker's office, trying to decide how to finance their new home.  At first, they were as excited as they had ever been. Finally, after all these years, they had gotten enough courage to take the plunge and buy their dream home.

Their current home was nice, but it was just not in the right neighborhood.  They had always longed to upgrade to a street a few blocks away.  It always seemed to be way too expensive though.  Finally, they had made up their minds that they were going to have the home they had always desired.

They had a lot of equity in their home and a real estate agent they knew told them she had a buyer looking for a house just like theirs. "Would you be interested in selling?" She asked.  They had just seen their dream home up for sale so Jim and Donna said  "you bet, we're interested."

They wrote an offer and got a good deal on the house they wanted, sold their home and were ready to get the loan set up.   First, they went to their own bank.  They had been good customers there for maybe twenty years. When they went in to see the banker, he said, "you're in luck."  "We're having a special this month."  "I don't know all the details, but I'll be giving Kathy, our loan processor, your phone number."   "She'll be calling you this afternoon."  Later that day, sure enough, Kathy called with the details of the special.  She asked questions like:

A. Do you want and adjustable or fixed rate?

B. How much will you be putting down?

C. Do you want a thirty year, fifteen year or forty year loan?

D. Do you want a higher rate with less points, or a lower rate with higher points?

Jim & Donna just guessed at the answers and Kathy said that she would be getting back to them with their approval very shortly.  About two weeks later, Kathy gave them a call.  "The investor says you need to give us a more current pay stub." "who's the investor?"   Donna asked.   "It's either Fannie or Freddie, anyway we need this information as soon as possible." Said Kathy.

They sent in their most recent pay stubs, and assumed everything was OK.  About a week and a half later, they got a short, one page letter saying how sorry the bank was, but that they were declined.   Jim called his buddy at the bank and was told, "Sorry Jim, There's nothing I can do."

Disappointed is not a strong enough word to describe their feelings.  But, they had to do something.  So, they called some bank they saw advertised in the paper and were now asked all the same questions again, confusing decisions all over again.

They really didn't know what to do.   They asked for help.  First, they went to the best source of information they could think of, Jim's brother-in-law, Bob.  Bob knows everything about everything.   He told them to go with a 30 year fixed loan, putting 30% down, paying 3.5 points.

Jim and Donna weren't so sure, so they went to the real estate agent.  She told them to go for 15 years, with and adjustable and no points.  Then, they're sitting in the bank and the banker says they should go with a 3 year adjustable, with one point, on a 30 year schedule.  Now Jim and Donna haven't a clue as to what to do.

Donna leaned over to Jim, and said in a whisper, "Honey, I think it's anyone's ball game now."  "Do what you want to do."  Jim replied " I'm worried."  "I guess we should do whatever Bob said, after all, he has done this before."  So they did what Bob said.  After a couple of years later Jim got promoted and they were very sorry the listened to Bob.

They found out they had made all the wrong decisions.  They had wasted money on the points,  put too much down and gotten the wrong kind of loan.  The new job, created a situation that showed them that they had wasted thousands of dollars by buying down the interest rate, when it turns out they weren't going to be there long enough to get their investment back.  Plus, they had the same problem deciding what to do on the house in the new city.  This time, they didn't listen to Bob.  No.  This time they listened to Donna's Brother-in-law, Frank.  Sound familiar.

Let's spend a few minutes discussing these mistakes Jim and Donna made.

• Taking a 15 year versus a 30 year loan.

This question is probably one of the most common ones asked.  Over and over again, people choose the length of their loan for all the wrong reasons.  They choose the length of the mortgage based on the monthly payment, or being able to qualify for the mortgage, or whatever. Sometimes, it's because of an emotional decision.  "I want to pay this baby off!"   "I want it fee and clear, as soon as possible!" (Ever heard that one before?)  What's any of that got to do with the real question, which is: "Which type of loan will be best for me?"

You would be amazed at how much interest you pay on your mortgage over the life of the loan.  For example, over a 30 year loan of $100,000 at 9%, you will pay over $189,000 in interest! That's unbelievable, but true. Now, if you were to set u a prepayment fund, and add only $67 a month to it, which would be forwarded directly to your mortgage company, you would save over $61,000 in interest over the life of your loan and pay off your house in just under 22 years!

If you kept paying the normal $804.00 per month on that loan, you would owe over $55,000 at the end of year 22. (You would still have 8 years left to go.) By setting up this prepayment program, you would owe ZERO at the end of year 22!  What a difference!  Do you think your bank wants you to know about any of this and lose and extra $61,000 of interest you will pay?   This is strategy alone can make an incredible difference in your lifestyle.

The real answer is based on the concept of whether or not you can put more money in your pocket by doing something else.   You need to take into account what your money is costing you and what your money is making you.  By knowing the value of your own money you can see how it's best invested.

If you choose a 30 year loan, your payment will be less than a 15 year loan.  The equation that has to be answered is if you invested the difference between the payments, would you have more money X amount of years down the road?  That's it.  Will you, at the end of 15 or 30 years, have more money, or less money?  The formula to figure this out is not so simple.   But, it MUST be done!

It is not uncommon for someone to waste tens, or hundreds of thousands of dollars because they picked the wrong way to go.   By taking a short term view of this question, most homeowners cost themselves big, big money.  Do you really know if your set up is the best for you?

• Sitting around and waiting for an approval from some giant bank, who couldn't care less whether they give you a loan or not.  Remember that a bank is in the business of loaning money to people who don't need it.  They are in the risk avoidance business.   Bankers are paid bonuses, and promoted, based on the quality of the loans they approve.  If they have even the slightest problem with a loan, it's usually a no go.   You see, your banker will still get his/her paycheck every two weeks whether they approve your loan or not.  But if your loan goes bad down the road, it can cost them extra money and/or their job.  So, is it any mystery why banks are so hard to work with?

• How much should we put down?

Most people strive to have at least 20% down on their house.  Either because of the bank wanting you to, or because that's what they heard they should do.  What's best for you, is the amount of down payment (equity) that will end up putting the most money in your pocket!  It might be 5% down. Or 30% down.  Again, a simple equation MUST be done to tell you what would create the most money.

If you only put 5% down, what would you do with the other 15%? Would you invest it?  If so, where?  Would putting more than 20 % down, end up building more net worth?  It's that simple.  The answer is always going to be different for each person.  There are no "rules of thumb."

• Everyone has a different situation.  The only way to find out what is best for you is to talk with a lending expert about your exact situation. Just as you wouldn't take the medication your friends doctor prescribed for her when she was sick, don't take the advice someone else received for their financial situation.  The financial consultation is free, however; the advice can save you thousands.

• taking the wrong type of loan.  There is no larger dollars lost in the mortgage business than with borrowers selecting the wrong type of loan. Should you use a fixed rate or should you use an adjustable.  That question actually depends on many variables that almost no one takes into account.  For instance, you need to know what index the variable mortgage is based off of, what is the margin above the index that it will raise to and what kind of adjustment caps does it have.

what are your goals for keeping the home and what is your realistic future income look like.  What types of investments are you currently making and how do you plan to keep investing in the future? What are your feeling toward risk, are you comfortable with interest rate uncertainty? Picking a lower adjustable rate might sound great now, but come back to haunt you in a few years time.

No one on this planet can predict what interest rates will do.  No one.  So, while there is no perfect answer, the best way to cover yourself is to run the numbers to see which option makes the most sense based on what we do know.

• Choosing whether to pay higher "points" for a lower rate, or to pay less "points" with a higher rate.  Sometimes the mortgage companies have three or more options.  Which way should you decide to go?  Well, the only way to make sense out of this is to run a comparison of the total up front, ongoing interest costs and see which choice will cost you the least if you were to move when you think you most likely will move.

You'll have to see how long you need to stay in the home to recover the higher points, offset by the lower rate.  Or, how short you may be staying in the house, to warrant taking the lower points with the higher rates.  You just have to run the numbers to see which way will work best.   Doing the math is the only way to get the correct answer.

• What about your other debts?  Should you pay all of them off?  Some of them?   None of them?  Sometimes you are told to pay off debts to qualify for a "traditional" mortgage.  Sometimes this is important.  But, other times, you may be better off consolidating the debts instead of paying them off.  Be very careful because if you use up the money you need for a down payment on paying off debts, you may eliminate or at least prolong your chances of getting financing.   Consult your financial expert before making a wrong move here.

• Income taxes. When financing a home, the issue of income taxes is very real.  You know that there are tax deductions for your mortgage interest. Choosing a mortgage will have an impact on your financial situation.  The bigger your mortgage, the bigger the tax deduction.  But, the larger mortgage payments may not be right for your family.   You have to find the right balance between tax savings, monthly payments, down payments, and so on.  If you're going to be saving taxes, you need to be sure to adjust your withholdings to get the tax savings back now, instead of waiting to get a bigger refund at tax time.

If you will be saving $200 a month in taxes, you should reduce your withholdings by the same amount.  Then you'll be receiving the money right now, and not make the mistake of "loaning" money to the IRS interest free.

As you can see, there is no way to separate the tax planning from all the other questions about taking a mortgage.   Every decision you make about the loan will somehow affect your taxes.  With the government trying their best to spend all of our money, we have no choice but to plan as carefully as we can, to get the biggest tax savings possible!

• Not looking for alternative types of loans and financing.

There are literally dozens of types of loans.

Government programs. These include, but are certainly not limited to,

a: FHA loans

b: VA loans

c: Farmers Home Loan Program

d: State sponsored first time buyer loans

Although these programs differ in their specifics, they all have common features of low down payments, and/or low interest rates.

For example, did you know that a veteran can get a ZERO DOWN PAYMENT loan for as much as $203,000? (As of the date of this report.) Yes, that means a veteran could obtain a mortgage for a $203,000 house, with nothing down!

Other programs, such as FHA, allow down payments as low as 3% of the cost of the house!  Community Home buyer allows 3% down with easier qualifications then ever available before.  We don't expect you to run around trying to find all these programs.  Of course, after we review your situation, We'll help you decide if any of these loans would be right for you. How can you know unless we check it out for you?

401K Hardship Withdraw:

Did you know that many company savings plans allow withdrawals to use the money towards a down payment on a home?   Yes, that's correct.  Of course you would have to check with your employer.   If your plan allows it, you may be able to borrow a portion of your vested savings out of the plan and pay the loan back of of you Co-Signer You may be able to "entice" a family member or a friend to put some of their credit worthiness into your home as a CO-signer.

Gifts:

You may be able to get a gift from a parent or a family member to help with your down payment.

Builders:

It isn't common knowledge, but new construction can offer some real nice financing terms.  Builders of single family, or townhouses, or condos, or modular housing, etc.  Many have cut a deal with a bank or other mortgage company, to help people get into the houses.  Sometimes, for example, they will offer low, low, down payments, and/or special introductory interest rates.

for example, a developer was recently offering a 3% down payment option, with a first two year interest rate of only 4.9% on a $100,000 home, your cost of entry would be $3,000 plus $1,000 in fees, for a total of $4,000.  Your monthly payment, including all taxes and fees, would be right at $600 per month, for the first two years!  How can you compare that with renting an apartment for $600 a month?

There are so many way s to get into a home, that there is almost no one who can not find a way to own a home.  So here's what We would like to offer you:

A FREE CONSULTATION TO FIND OUT THE BEST FINANCING OPTIONS FOR YOUR NEW HOME OR REFINANCE, A "DIAGNOSIS", IF YOU WILL.  We will provide an initial interview and consultation ABSOLUTELY FREE!   It will not be a disguised sales presentation.  It's a time to review what is going on in your financial life and the choices you have available to you regarding the financing of your NEW HOME.

If, at the end of Consultation, you do not feel like we can help you or that you want to keep doing what you're doing, etc., that's fine. We won't bug you.  You go home and we leave it at that.  NO PRESSURE.  NO SALES. NO HASSLE.

I can't think of a better way to work.  Can you?  So think this over and see if this makes sense to you?    If you have any major skepticism left, or maybe have a question or two, feel free to give us a call.  You will find that when we talk, there will be zero push or pressure.  If you are really not interested or ready, that's great.  You have to understand that we love helping new clients to keep from making the same mistakes we see made so often in the mortgage world.

Call for your Free Consultation pre-qualification & Pre-approval 1-800-809-0737 extension 1

Sincerely,

Brandt Stohr (CEO)