The Morning Shot

I received a call from a wonderful real estate partner of mine by the name of Gary. When the call came in, Gary said, "Matt I have a problem!" I said, "What's the problem Gary?!?" He said "I've been working on a transaction for a little over 40 days, and I'm on the list side of the transaction, and I just got word that the buyers mortgage lender is issuing a decline."

And I said to Gary, "Geez that's horrible." And he said, "Well, thanks Matt I already know that, and the sellers already packed up their house…"

So Gary moves on and says, "Matt, what do I do in this scenario?" And I said, "Well Gary, this is what we refer to as a mid-stream transaction. A mid-stream transaction accounts for about 15-20% of my current production, it is a transaction where the current mortgage lender declines a buyer, and we are referred into the transaction in an effort to resuscitate the deal. Now the good news is, we are successful the majority of the time."

So Gary says to me, "Geez that's great, so where do I go from here?" "Here's what we can do: refer the client over, and we'll be more than happy to quickly get them preapproved. We built out a specific process flow to expedite the preapproval due to the time sensitivity in your transaction. While I can't guarantee we can do the transaction, what I can guarantee is that all parties involved will know where the buyer stands in factual form.

"My gosh Matt, I greatly appreciate you and I'll have the buyer call you right away."

And I said, "But Gary before I let you go I have but one question for you…"

"Did you ask 10 and did you demand 15?." And Gary said "excuse me Matt?"

"Did you ask 10 and demand 15?" 

Gary said "Matt, I'm sorry I have no idea what you're talking about."

Well geez Gary, I know that I invited you to my Elevate conference…"

"I know Matt, however I just didn't have the time to attend."

"Well I understand that Gary, but I also know my assistant reached out to you to set up a refresher call where I try to reach out to my partners every quarter and tell them about new concepts and so on."

"Again Matt I'm sorry, but I just didn't have the time."

"Well you see Gary what we cover in Elevate is Ask 10 demand 15 – which 10, represents the top 10 essential questions that you or your team can ask the buyers mortgage lender before having your seller execute on any offers. Now, these top 10 questions won't give you 100% certainty but they will increase your percentages exponentially." And 15 represents demanding a 15 day loan commitment."

So as an example Gary, what was the loan commitment period on this transaction we're talking about?"

"Well Matt the commitment period is left blank so it was 45 days."

So I said, "Ok. And when did the mortgage lender issue a decline?"

And Gary says to me, "well it's been 42 days."

So I said, "Exactly."

I said, "You see Gary lenders are only human beings just like you and I. So the more time you give, the longer you're going to wait. So what I try and arm our real estate partners with is the importance of asking for a shorter loan commitment time frame."

"Also, many of my real estate partners leverage ask-10 demand -15 in a listing presentation because it offers sellers piece of mind knowing that their reducing the risk of transactions falling apart."  

And Gary says, "Wow. Thank you so much Matt, I would certainly like to schedule that refresher call you were telling me about?"

And I said "Geez Gary, there's one major problem with that…I don't have the time"

Agents, if you would like the top 10 essential questions sent to you – message me or call me at 561-864-2458. Don't relate to Gary, learn from him.

Our first ever Heavy Hitters speaker series is coming up and we are excited to have Mark Rucco of the Mark Rucco Group joining us. Mark was ranked as the #1 Agent for Palm Beach County by Most Closed Transactions in 2016 closing over 330 transactions, and ranked in Wall Street Journal's Top 200 Realtors Nationwide. I know Mark's story well, and can assure you that at some point in his career you will find common ground, and more importantly, stories from this shared experience that can help us overcome whatever difficulty currently preventing you from your best self.

This event will no sell out quickly and in fact, we're well over 75% of capacity within 24 hours, as Mark is certainly the type of professional we all wish to learn from. So please reach out and RSVP your seat today by calling 561-864-2458, or emailing Brett Vidro at [email protected]. Our Heavy Hitters interview with Mark Rucco will be held at the Cinemark Theater in Boca Raton on October 26th from 9:30am – 12:00pm. While this is only the first of many in this series, it is surely one you will not want to miss.

The views of this blog, "Your Morning Shot" podcast, and on this site in general are solely those of the authors, Matt Weaver (NMLS-175651) and Zack Lewis, and do not express the views or opinions of Finance of America Mortgage.

As I am sure many of you are aware, we are having our very first Heavy Hitters speakers series coming up with Mark Rucco, a well respected member of the local real estate community who closed over 335 transactions last year. Well in preparation for this exciting event, we had Mark in the office to flesh out some of the stories on how he came up with his secret sauce to ensure everyone who attends the event leaves with at least 3 valuable new ideas for how to grow their business.

What I found to be most interesting in talking to Mark was that much of his success came from mastering and consistently applying the fundamentals. Mark told us about the two primary components of his daily practice that he feels allows for him to continue achieving great success: 1.) Get face-to-face appointments and 2.) Have product knowledge.

Many agents in Mark's eyes try to skirt around the prospecting of the side of the business and seek to try and create new and innovative ideas for how to touch prospective clients in every possible way that does not involve the telephone. Mark was adamant; pick up the phone and call. If new to the real estate industry pick up the phone and call listing agents, ask if you can market their property in order to generate buyers and clients for yourself. Call your friends, neighbors, follow-ups, everyone…call with the end game in mind of getting a face-to-face meeting. Texting and email do not make the same impact on a person…pick up the phone and call.

As Mark goes on, he points out one additional piece for us to keep in mind – be the resource. Which brings us to his second fundamental of product knowledge, knowing your market and the world you operate in better than anyone else. Getting the prospective homebuyer on the phone and ready to meet is great, but if we know nothing about the availability of homes available based on the specific needs of the homebuyer, it is going to be difficult to achieve our goal of getting them the one they'll love and earn the commission we work so hard for.

Mark told us about how when he first got started he'd read the MLS reports first thing in the morning on a daily basis. He studied the homes that just came up for sale, the price per square foot and the agents representing the seller…everything he could possibly absorb. This made him the go to guy in specific neighborhoods. He became a specialist, something that Mark would end up finding to be a keystone ingredient for his long term success.

We don't want to go in to much more detail about Mark's stories as they are better shared through his own animated personality. I know Mark's story well, and can assure you that at some point in his career you will find common ground, and more importantly, stories from this shared experience that can help us overcome whatever difficulty currently preventing us from becoming our best selves.

This event is already booked over 75% of capacity. So please reach out and RSVP your seat today by calling 561-864-2458, or emailing Brett Vidro at [email protected]. Our Heavy Hitters interview with Mark Rucco will be held at the Cinemark Theater in Boca Raton on October 26th from 9:30am – 12:00pm. While this is only the first of many in this series, it is surely one you will not want to miss.

The views of this blog, "Your Morning Shot" podcast, and on this site in general are solely those of the authors, Matt Weaver (NMLS-175651) and Zack Lewis, and do not express the views or opinions of Finance of America Mortgage.

There are certain prerequisites I have before eating out at a restaurant; things such as the fact that they serve food, provide utensils for me to eat that food, and a bathroom for me to wash my hands before and after a meal. That's basically the bare bones, if any eating establishment is missing any one of those three things there is a 0% chance I am willing to enter the building.

But these prerequisites are nothing more than the bare essentials, and on a standalone basis don't give me any real reason to try the place in the first place, let alone come back. What makes a great restaurant great are all the things they offer above and beyond the perquisite necessitates for putting a plate of food in front of me – the ambiance of the restaurant, the friendliness of the staff or the quality of the food. Countless restaurants open and close on a daily basis that can offer a meal, but the handful that stand tall as community landmarks for generations to come do so because they recognized that offering an extraordinary experience generates extraordinary results.

In 2010 I made a decision to step out of the norm and offer an extraordinary experience to my real estate partners. To close and fund a loan in a reasonable amount of time is a prerequisite for being a lender – being able to accomplish this task is the basics of our responsibility to our clients, but it is not extraordinary. How am I to differentiate myself from the thousands of other lenders around the country doing the same thing? How could I be of greater service to my real estate partners in helping them to be extraordinary for their clients as well?

Over the course of the last 7 years I have worked diligently to design and implement a suite of extraordinary services to provide my real estate partners so that they could take their business to extraordinary heights. To many of my colleagues this suite of services seemed unnecessary, and very expensive to offer – but I asked myself, what was I willing to do to be extraordinary for you, my real estate partners? Here's what I've come up with:

1. My Four Pillars of Value:
   1. Thorough Pre-Approval Process – I implemented what is among the most meticulous and extensive pre-approval processes in the industry, never compromising thoroughness for volume.
   2. 7/24 – Designed for winning in multiple offer scenarios, offering loan commitments in 7 days or less and the ability to close transactions in 24 days or less. If you want to close in 7 days or less, we can make it happen.
   3. Service Advantage – A fully operational team from application to closing under one roof, able to service your clients between the hours of 8:00am – 9:00pm 7 days a week.
   4. Growing Together – A relentless focus on adding true value to our real estate partners through innovative products, concepts and content ahead of market trends.

Growing together is a pillar we have worked tirelessly on to refine and improve as of late. In doing so, we've been pleased to offer a range of additional services with our real estate partners needs in mind:

1. The Morning Shot Podcast – The leading podcast for the modern day real estate professional, 5 minutes or less, published three days a week of industry news and insight focused on enhancing your business.
2. Our Monthly Facts and Figures call – 15 minute monthly call designed to deliver the most relative facts and figures of the real estate industry when you need it – right now.
3. Dine n Grind Events – Redefining the lunch and learn experience, offering a well-structured best-in-class luncheon packed with value and knowledge to leverage in your business.
4. Smartbuyer Workshops – Held 2x a month and designed to further educate homebuyers on how to prepare for their upcoming purchase, be it first time homebuyers or seasoned homebuyer.
5. Credit Essentials Workshop – Monthly educational session catering to those potential buyers that have experienced credit challenges to provide them with a structured plan in getting them back to 'purchase ready'.
6. And our Behind the Curtain Series – In-depth interviews with our industry's top professionals sharing their experiences and insights with our partners in pursuit of similar professional achievements.

My team and I believe that in order to be truly extraordinary, we must provide all the resources possible to our partners to make them extraordinary too. It gives me great pleasure to extend our offer to you for your own copy of our Agent Suite of Services Menu to keep and use as you please. No matter how busy we are, we are always available to you. Please call me directly at     561-864-2458, or email [email protected] to get your copy of our menu of services. We look forward to serving you.

Our first ever Heavy Hitters speaker series is coming up and we are excited to have Mark Rucco of the Mark Rucco Group joining us. Mark was ranked as the #1 Agent for Palm Beach County by Most Closed Transactions in 2016 closing over 330 transactions, and ranked in Wall Street Journal's Top 200 Realtors Nationwide. I know Mark's story well, and can assure you that at some point in his career you will find common ground, and more importantly, stories from this shared experience that can help us overcome whatever difficulty currently preventing you from your best self.

This event will no sell out quickly and in fact, we're well over 75% of capacity within 24 hours, as Mark is certainly the type of professional we all wish to learn from. So please reach out and RSVP your seat today by calling 561-864-2458, or emailing Brett Vidro at [email protected]. Our Heavy Hitters interview with Mark Rucco will be held at the Cinemark Theater in Boca Raton on October 26th from 9:30am – 12:00pm. While this is only the first of many in this series, it is surely one you will not want to miss.

The views of this blog, "Your Morning Shot" podcast, and on this site in general are solely those of the authors, Matt Weaver (NMLS-175651) and Zack Lewis, and do not express the views or opinions of Finance of America Mortgage.

There's a story in Napolean Hill's famous book Think and Grow Rich that tells the tale of two ambitious men who gave up on their gold mining dream only 3 feet from hitting the mother load – the story in its own right is famously referred to as "3 feet from gold." If you've never heard the story before I highly suggest picking up Hill's book as it is indeed a classic far beyond just this story, but for our purposes we'll share a brief summary here. Essentially there are two men caught up in the gold rush that decided to try and make it out west to dig and grow rich. So they headed out on their journey to Colorado and bought the equipment they needed to get digging. At first they were pulling in so much gold they thought they might just have one of the richest mines in Colorado! In just a short period of time they had nearly recouped in full the cost of the machinery, and could faintly taste life in the fast lane. But something happened, the vein of gold ore disappeared. They had come to the end of the rainbow, but kept drilling frantically trying to find it again. Long days, and longer nights of relentless and frantic drilling – but to no avail, it seemed all was lost. So they quit.

The two men sold off their machinery to some junk man for a fraction of what they bought it for and headed back home tail tucked between their legs. The dream was over…But not for the junk man! The junk man decided based on what he came to understand of that mine, maybe it was worth hiring an engineer to do a little math and flesh out what went wrong. Well wouldn't you know it, the engineers calculations came to find that the project failed because those men were not familiar with "fault lines", and in fact his calculations showed that sweet sweet vein of gold they were looking for could be found just three feet from where the quitters stopped drilling…and that's exactly where it was found, and the junk man made millions.

There's an old saying that goes "more gold has been mined from the brains of men than has ever been taken from the earth." Many of us have been raised under the guise that hard work alone is the recipe for success, but we find here that maybe, just maybe, this is not the whole truth. The two men traveling west were completely ignorant to the industry they set out to conquer, only to find that such ignorance coupled with arrogance to neglect seeking experienced counsel would ruin them – but credit where credit is due, their work ethic was impeccable!

Know your strengths, and outsource your weaknesses. Think smarter, then work harder. And for god sakes, let's put our pride to the side so as to give ourselves time for the miracle to happen. When you feel like quitting, may it be a business venture, fitness routine or relationship – ask yourself, what would I do if I knew I was only 3 feet from gold?

For our first Heavy Hitters event we are excited to have Mark Rucco of the Mark Rucco Group joining us. Mark was ranked as the #1 Agent for Palm Beach County by Most Closed Transactions in 2016, and ranked in Wall Street Journal's Top 200 Realtors Nationwide. I know Mark's story well, and can assure you that at some point in his career you will find common ground, and more importantly, stories from this shared experience that can help us overcome whatever difficulty currently preventing you from your best self.

This event will no sell out quickly and in fact, we're well over 50% of capacity within 24 hours, as Mark is certainly the type of professional we all wish to learn from. So please reach out and RSVP your seat today by calling 561-864-2458, or emailing Brett Vidro at [email protected]. Our Heavy Hitters interview with Mark Rucco will be held at the Cinemark Theater in Boca Raton on October 26th from 9:30am – 12:00pm. While this is only the first of many in this series, it is surely one you will not want to miss.

I look forward to seeing you there to stand on the shoulders of a giant.                  

Thank you all for listening. We are committed to supporting you. So send us a friend request on Facebook or LinkedIn @mattweaverspeaks.

The views of this blog, "Your Morning Shot" podcast, and on this site in general are solely those of the authors, Matt Weaver (NMLS-175651) and Zack Lewis, and do not express the views or opinions of Finance of America Mortgage.

It is said that no great success has ever truly been accomplished alone, and that the narrative of being "self-made" is in itself a misrepresentation of any individual's journey to greatness. Take it from Sir Isaac Newton, who once wrote, "If I have seen further it is by standing on the shoulders of giants" – one of the most brilliant thinkers in history attesting to how mentorship is such a crucial ingredient for the recipe of success. But first, we should understand what a mentor is really in order to determine how we go about finding one.

A mentor is a guide. A guide that may be found to come into your life and help guide you on your journey to personal, professional, financial or relationship success. A guide who has successfully been down the path for which you seek to venture and possesses the knowledge to help navigate you on your own unique journey. Consider a mentor like a mountain field guide or a Sherpa on Mt. Everest – sure, you could attempt the climb on your own, but why force yourself through all the trials and pains that others have already experienced and can show you a better way? A more effective path with a greater likelihood of success?

Mentors come in all shapes and sizes, but unlike the folklore of Hollywood, don't necessarily always have to be the wise old man with a long white beard. Mentors may come into your life in the form of friends, family, business associates, teachers, books, radio show hosts, biographical documentaries, keynote speakers and more. There is great misconception of what a mentor has to look like moreso then the actual impact the individual's story and experience has on our lives.

In my 20 years experience within the real estate industry I can attest to how especially valuable the importance of having a mentor is. The real estate business is tough, actually I'd go as far as to say absolutely brutal. There are reportedly over 20,000 active real estate licensees in Palm Beach County alone, and the vast majority of newly registered agents end up in search of another career before the end of their first year.

So what differentiates those that struggle from those that have made it as a career? What differentiates those career real estate agents from the ultra successful real estate professionals who run their own teams? Both have walked the path you currently walk, and both have tremendous insight as to how you can navigate this path to suit your personal and professional goals – knowing that, why would we even want to go it alone?

This is what lead my team and I to launch our first ever Heavy Hitters speaker series – where we interview local industry leaders to learn from their experiences and enrich our careers. For our first Heavy Hitters event we are excited to have Mark Rucco of the Mark Rucco Group joining us. Mark was ranked as the #1 Agent for Palm Beach County by Most Closed Transactions in 2016, and ranked in Wall Street Journal's Top 200 Realtors Nationwide. I know Mark's story well, and can assure you that at some point in his career you will find common ground, and more importantly, stories from this shared experience that can help us overcome whatever difficulty currently preventing you from your best self.

This event will no sell out quickly and in fact, we're well over 50% of capacity within 24 hours, as Mark is certainly the type of professional we all wish to learn from. So please reach out and RSVP your seat today by calling 561-864-2458, or emailing Brett Vidro at [email protected]. Our Heavy Hitters interview with Mark Rucco will be held at the Cinemark Theater in Boca Raton on October 26th from 9:30am – 12:00pm. While this is only the first of many in this series, it is surely one you will not want to miss.

I look forward to seeing you there to stand on the shoulders of a giant.                  

Thank you all for listening. We are committed to supporting you. So send us a friend request on Facebook or LinkedIn @mattweaverspeaks.

The views of this blog, "Your Morning Shot" podcast, and on this site in general are solely those of the authors, Matt Weaver (NMLS-175651) and Zack Lewis, and do not express the views or opinions of Finance of America Mortgage.

Growing up I never liked the game broken telephone. It confused me. I couldn't wrap my head around the fact that reciting the words "walk the dog" could go in the ear of the kid to my right, and come out as "Jeff eats bugs" from the kid to my left. It seems so simple, each of us has but one responsibility – to convey three simple words to the person sitting next to us – yet not once, not even one time, has the combination of words that went into that circle come out the same by the end. It's incredible.

Now I get that as children it was meant to be a joke, but I continue to find myself being apart of this same game as an adult, which is less funny than it is sad. Broken telephone is supposed to be a game my kids play at summer day camp, not to serve as a training exercise for communicating as working professional adults.

How many times have we come to find that stories shared from one friend to another reach our ears completely different and leave us with a misunderstanding of some product or service? How often have we made premature decisions about eating at a restaurant, hiring a contractor or purchasing a product because someone told us we shouldn't, only to find out that claim had gone through its own journey of broken telephone – or was simply miscommunicated from the beginning?

Unfortunately the game of broken telephone has proven popular in our industry as well – and with one particular situation I feel to be very costly to my real estate partners...

As a mortgage and real estate professional with over 20 years of experience I would like to clear the air right now – you should accept FHA offers. That's right you should accept and embrace FHA offers, buyers and the like. The broken telephone lines are relaying you incorrect messages that are costing you deals. Deals that account for 35% of market share! That's right 35%.

FHA loans, when pre-approved properly, can provide for a great deal of value on both the buy and list side, because FHA products provide for more lenient guidelines for the buyer, and the lower down-payment requirements can allow sellers to perhaps capture a greater sales price.

Agents that take listing with the stipulations of "cash or conventional" are missing out on a HUGE segment of the market. I want you to really think about that and keep it in mind.

I designed what I would consider to be the most through pre-approval process in the industry over the last 7 years, providing thorough pre-approvals accurately reflecting the facts of each buyers scenario between the hours of 8am – 9pm 7 days a week. It is available to you as listing agents if you need to leverage it, without the expectation of me or my team funding the loan...think about the offer I am extending to you!

We're here to fix the broken telephone lines and ensure our partners have all the facts to allow you to capture the fabulous opportunities FHA buyers have to offer – call us anytime at 561-864-2458 even if I am not a part of the transaction and you want to run a scenario by me, please know that I am here for you.    

Thank you all for listening. We are committed to supporting you. So send us a friend request on Facebook or LinkedIn @mattweaverspeaks. If you need a fresh perspective on a transaction you're working on, even if we are not apart of it, please give me a call I'd be happy to have a look.

I am very excited to share with you all our next upcoming Behind the Curtain Series Event – Heavy Hitters. We are pleased to have Mr. Mark Rucco of the Mark Rucco Group joining us to discuss some of the keys to his success that have allowed him to be ranked as the #1 Agent for Palm Beach County by Most Closed Transactions in 2016, and ranked in Wall Street Journals Top 200 Realtors Nationwide.  

This event will sell-out and seating is limited. Our first ever Heavy Hitters event will be held at the Cinemark Theater in Boca Raton on October 26th from 9:30am – 12:00pm. To secure your seat today, please email Brett Vidro at [email protected]. We are very excited to have you with us and learn from one of the biggest heavy hitters of real estate in south florida.

The views of this blog, "Your Morning Shot" podcast, and on this site in general are solely those of the authors, Matt Weaver (NMLS-175651) and Zack Lewis, and do not express the views or opinions of Finance of America Mortgage.

The numbers are in and Florida is ranked 37 in the nation by creditworthiness for mortgage applications…that's right 37. That's a low number folks, considering there's 50 states in the country.

The national average credit score is 682, which is generally considered "fair" by the major credit bureaus and lending institutions that make credit decisions based on these scores. In the state of Florida, the average applicant's credit score is a 672, 10 points below the national average. The minimum qualifying credit score for, let's say a conventional loan products is 620, and for FHA loans, 580 – resulting in a relatively thin margin separating qualified homebuyers from unqualified applicants.

I've been all too aware of how much more difficult on average a Florida homebuyer is to qualify than most other areas around the country, and it's the primary reason I designed and implemented what I believe to be the most thorough and extensive pre-approval process in the industry – we do all the heavy lifting up front, so that all the facts are delivered to our real estate partners, and their clients, on a silver platter with everything they need to know for how to best spend their time with any particular client.

The reality is this solution is not cheap; in fact it's very expensive – take it from me! Which is why the majority of other lenders in the country don't implement this same type of system – for the typical lender it makes more sense to gamble with your time, the real estate agents time, then it does to invest the money into ensuring their real estate partners are maximizing their energy where it's needed most.

So what does this mean? Follow me on this for a moment…

This is our application data and the numbers we follow here within my team structure. Let's say you have 100 prospective South Florida homebuyers looking to buy a home. On average 70 of them can do exactly what they want to do today, meaning, buy the home they want to buy on the terms they want to buy it. So 70% are usually good to go. But what about the other 30%? The other 30% fall into 3 different buckets:

1. The client will have to reduce their purchase price in order to qualify;
2. They'll have to fix something within their credit profile and purchase over the next 2-4 months; or
3. They will not be in a position to purchase a home for at least a year.

With that in mind, let's take a moment to think about how that impacts the day-to-day of you as a realtor vs the lender.

If a lender doesn't have a thorough pre-approval process, they will look at the basics of the clients paperwork and generate a pre-approval based on some DU results, then hope and bank that client falls into that 70% bucket.

Now as a real estate agent, you take that homebuyer and search for homes that fit their criteria – as the agent, you now have to physically leave your office, and go from house to house in the hot Florida sun during unusual hours to support the work schedules of your clients. After that preapproval letter is issued, hours of your time goes into finding the right home for the client and submitting an offer…all this with a 30% chance of failure – let's call it what it is, there is, typically on average, a 30% that all of the work you've done will be for nothing when a contingency that could have been identified upfront brings your transaction to a complete halt.

So what happens to the lender at that point? Well technically the pre-approval letter that they give has some type of verbiage saying "subject to further review"…

They'll tell you how it's a numbers game right? You win some you lose some and that no lender could have possibly identified any type of problem like this up front…but they don't have any skin in the game with you, but they confidently await your next referral.

For the last 7 years I have invested heavily in the most thorough and extensive pre-approval process in the industry. So thorough and so valuable, that in multiple offer scenarios our clients win well over 95% of the time. Yes, over 95% of the time. That's because we've developed a reputation in this market, a market more difficult to find qualified buyers than most other places in the country, with a reputation for ensuring that the homebuyer submitting an offer has had an extensive review of their background with a high likelihood for an approval in a short period of time – we're issuing loan commitments in 7 days and closing transactions in 24 days or less. Listing agents know when they receive a pre-approval letter from my team that it's worth its weight in gold. Buyers agents know when they receive a full pre-approval their clients can rest assured knowing they have all the facts and figures of their scenario because our team has put in all the time and energy up front whether they're looking to buy today, 6 months from now or 2 years from now.

There's a better way for your clients and for your business, and it's available to you 7 days a week from 8:00am – 9:00pm 364 days a year. Give us a call at 561-864-2458 

Thank you all for listening. We are committed to supporting you. So send us a friend request on Facebook or LinkedIn @mattweaverspeaks.

I appreciate you joining me today, hopefully you can find a way to apply your shot into today, until tomorrow, have a better day today than yesterday.

The views of this blog, "Your Morning Shot" podcast, and on this site in general are solely those of the authors, Matt Weaver (NMLS-175651) and Zack Lewis, and do not express the views or opinions of Finance of America Mortgage.

As a real estate agent, you are the first point of contact a client makes when considering the purchase of a home. For this reason, it's important to have some basic knowledge of mortgage products for making a strong first impression as to the breadth of your industry knowledge. Of course everyone has their specialization, and maintaining a strong working partnership with a reputable lender will ensure your clients are well educated on the financing of their home purchase, it is also important to have some basic fundamental knowledge for strengthening your sales presentation.

With that in mind, let us tackle some of the more common questions we've found clients have for their real estate agents with regards to considering FHA or Conventional loans – the down-payment, credit score and gift funds requirements, as well as the difference between FHA's Mortgage Insurance Premium (MIP) and Private Mortgage Insurance (PMI) on conventional loans.

When it comes to down-payment, both programs offer very aggressive options for empowering your clients to achieve their American Dream. The FHA program offers homebuyers a standard low down-payment option of 3.5%. With conventional loans, the home-buyer has a unique opportunity to qualify for a loan with as little as 3% down.

The majority of the time these two options allow a current renter to tangibly see that the same dollars they have spent on renting their current home could be better used on a property they could call their own.

So, with down-payment options being very similar, what truly differentiates the monthly payment schedule of these two programs?

First, qualifying factors. FHA loans are supported by the Department of Housing and Urban Development and seek to empower first-time and cash-constrained buyers to enjoy the fruits of homeownership. In doing so, they allow for lower qualifying credit scores compared to conventional loans. With FHA the lowest qualifying score is a 580, while the lowest qualifying score for a conventional loan is 620.

When it comes to the source of funds for down payment, the FHA programs are much more lenient in their requirements and allow for 100% of the down-payment to be sourced as a gift. Conventional loans on the other hand are more restrictive, and depending on property type and loan-to-value ratio, the majority of funds typically must come from the homebuyer.

For the above reasons FHA loans are considered riskier than conventional loans, which is reflected through the differences in mortgage insurance. FHA loans require what is known as a Mortgage Insurance Premium, and in the case of home purchases where the borrower puts down less than 10%, this form of insurance is required for the life of the loan. In the case of conventional loans, Private Mortgage Insurance is required on all loans with less than 20% down payment, however the cost is cheaper than FHA's Mortgage Insurance Premium and falls off the loan when the loan-to-value ratio of the property drops to 78%.

So as a brief recap:

1. Both Conventional and FHA loans offer programs with low down payment options varying from 3%-5% depending on property type and use.
2. FHA loans are more flexible with credit scores and gift funds, as the minimum qualifying score is as low as 580 and 100% of the down payment can be sourced as a gift. Conventional loans on the other hand require a minimum credit score of 620 and have a number of restrictions on the source of the cash used for down-payment.   
3. Mortgage insurance is more expensive with FHA loans and depending on the down-payment, will remain for the life of the loan. Conventional loans allow for less expensive mortgage insurance, depending on the borrowers credit profile, and are removed from the loan when the loan-to-value ratio hits 78%.

We're glad some of our listeners reached out to us to request this topic, and it is our hope that today's episode has provided you with the information you need for being able to enhance your sales presentation and serve as a resource to your clients. This is also why we provide a written copy of every episode's transcript – so you can take the information with you and have it readily available for when you need it!

Of course, we are here for you as well. If you have any questions about mortgage products or are looking to determine what the best scenario might be for a client actively searching for a home, please give me a call directly at 561-864-2458.   

Thank you all for listening. We are committed to supporting you. So send us a friend request on Facebook or LinkedIn, and follow us @mattweaverspeaks.   

I appreciate you joining me today, hopefully you can find a way to apply your shot into today, until tomorrow, have a better day today than yesterday.

The views of this blog, "Your Morning Shot" podcast, and on this site in general are solely those of the authors, Matt Weaver (NMLS-175651) and Zack Lewis, and do not express the views or opinions of Finance of America Mortgage.

In today's market, fixer-uppers have a tremendous opportunity to shine. As home prices for turn-key properties continues to rise due to limited housing inventory, many agents will find that with a few tweeks to their sales presentations mastering this untapped market could be the key to separating themselves from the herd.

Leading real estate resource Inman published an article entitled "Make that Fixer-Upper Shine", and offered a handful of tips on preparing the property for showings. What I liked most about some of the ideas the article presents is how to give a diamond-in-the-rough property the fighting chance to show off its true potential as a beautiful first home. Some of these ideas include:

1. Fix the Curb Appeal – they point out that the first thing potential home-buyers will see is the front yard - the lawn, front door and porch. A minimal investment of time and money into making a good first impression can generate tremendous returns in exchange. Have it looking nice, it will be worth it.
2. Highlight the Positives – every house has its own great perks, it's important as a sales professional to find what great perk your property has and highlight it for your clients. Maybe a cute little breakfast nook? Extra large living and/or entertaining area? Every property has something if we are imaginative enough to see it.
3. Give Each Room a Purpose - When it comes to showing any property, homebuyers need to be able to envision what life will be like in that home. When it comes to fixer-uppers, homebuyers will need even more assistance from their real estate agents to see the true potential of the property. One effective way of doing this is expressing the layout of the home by room and its purpose.

From a lending standpoint, we offer a fantastic mortgage program known as the FHA 203(k) loan really designed for supporting the fixer-upper market. When utilized properly, the highlights of this program can take your sales presentation to the next level.

One example some of our partners have found successful is to bring along sales materials for lets say, fixtures, paint splotches, kitchen cabinets, appliances and much more. This way when showing their clients homes and telling the story of each room, additional visual aids can be used to enhance the imagination of what life might be like with their new home – they can immerse themselves in the story and connect to its potential.  

The 203(k) programs are really nice and especially fitting for a low-supply/high-demand market. These loans offer the same low down-payment option as the standard FHA loan, but with the ability to finance up to an $35,000 or more for home improvements, renovations and upgrades. While it wouldn't allow your client to necessarily install a new pool, when looking at interior design and appliance options this provides a very real number to tangibly make improvements and modifications to meet their personal preferences.

My team strives to support you in being the go-to real estate resources in your community. In doing so we offer what's called our Dine n Grind events focused on specific topics to help agents grow their business. One of these events is built specifically around the FHA 203(k) program and arms real estate agents with the information needed to strengthen their sales presentations. If you would like to join us for our next 203(k) Dine n Grind, call me directly at 561-864-2458, or send us an email at [email protected]   

Thank you all for listening. We are committed to supporting you. So send us a friend request on Facebook or LinkedIn, and follow us @mattweaverspeaks.   

 I appreciate you joining me today, hopefully you can find a way to apply your shot into today, until tomorrow, have a better day today than yesterday.

The views of this blog, "Your Morning Shot" podcast, and on this site in general are solely those of the authors, Matt Weaver (NMLS-175651) and Zack Lewis, and do not express the views or opinions of Finance of America Mortgage.

One of the main points we discussed in this months Facts and Figures call was the impact the housing inventory shortage is having on home prices. The combination of soaring demand and limited supply available has provided a wonderful environment for clients looking to sell their home – sellers get to enjoy fewer days on market and the ability to capture a greater percentage of the original listing price.

With that said, the steady rise of home prices means buyer dollars don't get the same amount of house today as they would have last year. For many millennial and budgeted home-buyers eager to achieve their American Dream, this has forced the option of remaining renters back to the forefront of conversation.

In our last podcast we shared an astonishing statistic based on the research of the National Association of Realtors, and I want to share it again with you here as it is more prevalent than ever:

• 90% of homebuyers are in the research and educational phase of the purchase cycle (6-12 months), and 10% are in the transaction phase, meaning they are buying in the immediate future;
• Very few real estate agents spend time capturing buyers and sellers in the research and educational phase;
• As a result, agents spend 98% of their time and money competing for that 10% of the market that's in the transaction phase;
• So, the true opportunity for business growth lies within cultivating prospective clients in the education and research phase…which is the path least explored.

The #1 opportunity in today's market that will differentiate the good real estate agents from the great ones will be whether or not they go fishing in this new pond.

Buyers typically rely on the real estate agent as their primary source of information – agents are the first person they reach out to when a decision is made to shop for a home.

As an agent, have you discussed your clients financial circumstances, educated them on the true dollar amounts required for downpayment or the various loan programs designed specifically with the cash-constrained buyer in mind? Do they know that there are programs that require as little as 3% down, or our program that requires 0% down? Most mortgage lenders have a suite of programs designed to allow these same buyers to pursue their American Dream in today's environment – but if they don't know it's possible because they haven't yet been educated as to their existence, they will likely elect to remain renters and postpone their home-ownership dreams until the market realigns with their misconceptions.

Our solution is one we've been working with our realtor partners on for years, and we are happy to share with you what has worked successfully for them – lead the charge in homeowner education. Host events for prospective home-buyers with the tools and resources they need for making an educated decision as to the factual nature of their situation. Become the source of information when those buyers in the research phase prepare to take the leap. Share articles on social media, pass along The Morning Shot or our Blog that cover these specific topics to your prospects. We are committed to helping you do this, so when you decide to take the next steps in becoming the leading source for your communities home-ownership needs, we are here to help design and host your next event and make sure you have everything you get that next transaction through education!

Thank you all for listening. We are committed to supporting you. To connect and work on getting your next event off the ground, send me an email at [email protected]

 I appreciate you joining me today, hopefully you can find a way to apply your shot into today, until tomorrow, have a better day today than yesterday.

The views of this blog, "Your Morning Shot" podcast, and on this site in general are solely those of the authors, Matt Weaver (NMLS-175651) and Zack Lewis, and do not express the views or opinions of Finance of America Mortgage.