The Meeting of Two Detail Gals

I could tell right away that Sarah was a ‘detail gal’.  She showed up to our First-Time Homebuyer Education meeting looking tense and determined.  She had a folder filled with printouts and notes under her arm.  Before she even sat down, she had her notebook open and her pen in hand.  No doubt about it…..Sarah was there to learn. 

After covering the home buying process flow with her and sharing some foundational mortgage wisdom like why she might pick a conventional loan over a government insured loans, how to save money with bi-weekly payments, yada yada, Sarah was ready to see some hard numbers.  “So…” she asked  “I’m thinking about buying around $135,000.  What mortgage types are there and what would the payment and costs be for each of those options?”

This is the point where many mortgage lenders would freeze up.  Why?  Because there are A LOT of loan options out there and calculating the payments and costs for each one can take time.  To pull that all together while a client sits with pen in hand can be nerve-wracking.

Luckily, though, Sarah wasn’t the only ‘detail gal’ in the room.  I’m a proud numbers nerd and had worked up possible options for her before she came in.  I opened the spreadsheet, plugged in the $135,000 price, and showed her the payments and costs for the options.

 

“Shoot.”  Sarah said.  “I was really hoping for a lower payment.  Can you show me options for that?”  “Sure!”  I replied, and typed it a couple of different prices to see how the payments moved with them.  Within 30 seconds, we’d found the one that got the payment range she wanted.

 

“OK”.  Sarah replied.  “That’s more comfortable for me.  But which one of these options is best for me?”

“Glad you asked” I said with a smile.  “Let’s go through each one and talk over the pros and cons….”

When Sarah left my office 30 minutes later, the tension had left her shoulders.  She had pages of notes in her notebook and an optimistic smile on her face.  “You know I’m going to have more questions for you, right?”  She said with a grin as I walked her to the door.  “I count on it Sarah, and I’m looking forward to it.” I said with a returned smile. 

During the three weeks that followed, Sarah did have more questions.  And I had more answers.  And earlier this week, she made an offer on a home she loves with complete confidence that the mortgage type she’s using is the best one for her. 

If you want to have that same confidence when making an offer on your home, give me a call!  I’m happy to review your options with you so that you can make an informed home buying decision. 


(This information contained above is shared as an illustration only and is not an offer for extension of credit or a commitment to lend. All loans must satisfy company underwriting guidelines. Information and pricing are subject to change at any time and without notice.)

Lori Hiscock is a Sr. Loan Officer at Ruoff Home Mortgage‘s South Bend office.  One of Michiana’s top mortgage loan officers, Lori started her lending career in 1995 after obtaining her bachelor’s degree in Finance from Western Michigan University.  You can connect with Lori Hiscock or apply online here. NMLS#404320.

Ruoff Mortgage Company, Inc. is an Indiana corporation licensed by the Indiana Department of Financial Institutions (DFI) and operates with the following licenses:

Indiana-DFI First Lien Mortgage Lending License #10994;
IL Residential Mortgage Licensee #MB.6760734;
Michigan 1st Mortgage Broker/Lender License #FL0017496.

When Close Isn't Close Enough

Amanda and Josh had been house shopping for months with no success.  They were trying to keep their expectations realistic and view homes with an open mind, but the houses just weren’t measuring up.  They had come to my office hoping to find a solution that would put this home shopping torture to an end and get them into a new house soon.

“So….you haven’t found ANYTHING you like?”  I asked at our meeting.  “Well….”Josh replied.  “There is one.  It’s close…..” he looked at Amanda.  “But not close enough” she added with a frustrated scowl.

“What if we could make it close enough?” I asked.

That led us into a conversation about the FHA 203k streamline renovation mortgage.  The 203k is a mortgage option that lets a buyer buy a home that needs some work.  They find the home, get bids on that work, and then get a mortgage to cover both the home purchase and the renovations.  The renovations are done after the closing, allowing the buyer, seller and Realtor to finish the transaction in a normal timeline (typically 45 days) with the renovations being coordinated by the lender and buyer after the closing.

A new spark came into Amanda and Josh’s eyes as they realized this option might work.  That night, they looked at the home again, this time with renovations in mind.  The next day they contacted me with their wish list.

“We’d like to get a new roof put on the house. The flooring is horrible too and needs replaced.  Oh, and we want some of the rooms painted.  And new countertops in the kitchen.  And the front window really needs replaced.  And a few new doors would be great.  Would that work?”  They asked.  “Yep, that would work.   You can have non-structural repairs up to $35,000 and, as long as you’re not over-improving for the values in the neighborhood, that should be fine.”

With that, they made an offer on the ‘close but not close enough’ home.  The offer was accepted and they hurried to get bids for the repairs.  Once those were in, the process worked like any other mortgage.  The appraisal was done, the loan was underwritten, and 45 days later we closed.

Amanda and Josh closed on their purchase last week and they are now in their new home.  They are working with the mortgage escrow team and their builder to get the renovations done and they expect those to be completed in the next 30 days. 

This couple isn’t alone on experiencing home buying frustration.  A lot of buyers find homes that are ‘close but not close enough’ so they give up.  What if a home could become all the buyer hopes for and more though? 

Home buyers - don’t give up!  This option could very well work for you too.  To learn more about the FHA 203k streamline renovation mortgage, give me a call at 574-234-5201 or email me at lori.hiscock@ruoff.com.

Lori Hiscock is a Sr. Loan Officer at Ruoff Home Mortgage‘s South Bend office.  One of Michiana’s top mortgage loan officers, Lori started her lending career in 1995 after obtaining her bachelor’s degree in Finance from Western Michigan University.  You can connect with Lori Hiscock or apply online here. NMLS#404320.

Ruoff Mortgage Company, Inc. is an Indiana corporation licensed by the Indiana Department of Financial Institutions (DFI) and operates with the following licenses:

Indiana-DFI First Lien Mortgage Lending License #10994;
IL Residential Mortgage Licensee #MB.6760734;
Michigan 1st Mortgage Broker/Lender License #FL0017496.