Home Buying Experience

09/09/2025

Frenchy's Thoughts
Below is a Checklist to Help Assess Your Readiness to Buy a Home:

1. Financial Health
• Stable income (preferably 2+ years with consistent employment)
• Manageable debt (low debt-to-income ratio)
• Good credit score (ideally 620+ for conventional; 580+ for FHA)

2. Down Payment & Savings
• Enough saved for a down payment (as low as 3%–5% of loan amt)
• Enough saved for closing costs (usually 2%–5% of purchase price)
• Emergency fund (3–6 months expenses for emergency purposes)

3. Understand Homeownership Costs – a Mortgage consists of
• Mortgage
• Property taxes
• Mortgage Insurance (Down Payment < 20%) – protects Lender
• HomeOwners Insurance – Protects you and your property
• HOA Fees (if applicable)
• Maintenance & repairs – must be considered

4. Lifestyle Stability
• Planning to stay in the area for at least 3–5 years
• Looking for long-term stability or raising a family
• Not planning major lifestyle change (e.g., relocating, career shifts)

5. Knowledge of the Market
• Researched neighborhoods
• Understand price trends, crime rates, school zones, etc.
• Know what kind of home (condo, single-family, townhouse)

08/18/2025

Frenchy's Thoughts - Myths about Home Buying - I am continually asked many questions and am shocked that many people do not realize that home buying is really not that hard - Credit, a Little Savings and reasonable debts - means you can buy a home!

The ten of the most common myths about home mortgages, along with the truth behind each one:
1. Myth: You need a 20% down payment to buy a home.
Truth: Many loan programs allow for much lower down payments:
 FHA loans: as low as 3.5%
 Conventional loans (with PMI): as low as 3%
 VA and USDA loans: 0% down for those who qualify

2. Myth: You must have perfect credit to qualify.
Truth: You can get approved with fair or even poor credit:
 FHA loans accept scores as low as 580 (sometimes lower)
 Higher credit scores get better rates, but perfection isn& #39;t required

3. Myth: The interest rate is the only thing that matters.
Truth: Other factors also impact your costs:
 Closing costs, loan terms, mortgage insurance, and fees
 APR (Annual Percentage Rate) gives a better full-picture cost than interest rate alone

4. Myth: Pre-qualification and pre-approval are the same.
Truth:
 Pre-qualification is a rough estimate, usually unverified
 Pre-approval involves income, credit, and financial verification and carries more weight with
sellers

5. Myth: You should always choose the lender with the lowest rate.
Truth: A low rate may come with high fees or poor service. Always compare:
 Closing costs
 Lender reputation
 Customer service
 Loan terms

6. Myth: You can’t refinance unless interest rates drop significantly.
Truth: Refinancing may still make sense for:
 Lowering your monthly payment
 Switching from adjustable to fixed rate
 Removing mortgage insurance
 Shortening your loan term

7. Myth: You’re stuck with one type of mortgage for the life of the loan.
Truth: You can:
 Refinance into a different type (e.g., from adjustable to fixed)
 Pay off the loan early (though check for prepayment penalties)

8. Myth: Renting is always cheaper than buying.
Truth: Not always. Over time, owning builds equity and may be more affordable in some markets. But:
 It depends on location, market trends, and how long you plan to stay
 Upfront and maintenance costs for buying can be higher

9. Myth: You should pay off your mortgage as fast as possible.
Truth: While being debt-free is great, paying it off quickly isn& #39;t always best:
 You might earn more by investing elsewhere
 Keeping a mortgage can offer tax benefits
 Liquidity and emergency funds matter too

10. Myth: You can’t get a mortgage if you’re self-employed.
Truth: You can get a mortgage if you& #39;re self-employed, but:
 Lenders will require more documentation (2+ years of tax returns, profit/loss statements)
 Stable income is key

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08/18/2025

Frenchy's Thoughts - Here's a Graph you may find interesting

08/02/2025

Frenchy's Thoughts Subject: Mortgage Rates Explained What a Home Buyer Needs to Know
Today’s buyer is more cautious than ever. Interest rates remain high and everyone is asking:
Why are rates still so high?
And who controls them?
How Are Mortgage Rates Determined?
Mortgage rates are influenced by several factors, but they are not directly set by the Fed. Instead, they’re determined by:
• The bond market — specifically the yield on the 10-year U.S. Treasury note. Mortgage rates tend to track closely with this yield.
• Inflation expectations — higher inflation typically leads to higher rates.
• Federal Reserve policy — the Fed doesn’t set mortgage rates, but its rate hikes (or pauses) strongly influence lender behavior and investor sentiment.
• Risk-based pricing — credit score, loan-to-value, loan type, and other borrower-specific factors play a role in the final rate offered.
Why Are Rates Still High?
• The Fed combats inflation, which, although cooling, remains above its 2% target.
• Uncertainty in the global economy and strong employment data have made investors hesitant to commit to lower yields — keeping mortgage rates from dropping.
• Sticky inflation in housing, insurance, and services has kept rate relief slower than many expected.
What Will Bring Mortgage Interest Rates Down?
Mortgage rates will begin to decline meaningfully when several key economic conditions shift. Here's what needs to happen:
1. Inflation Must Return to the Fed's 2% Target
The biggest driver of high interest rates right now is inflation. While it's cooled from its 2022 highs, it's still above the Fed’s 2% target. Lower inflation means lower yields on Treasury bonds — and mortgage rates generally follow those yields.
2. The Federal Reserve Must Start Cutting the Federal Funds Rate
While the Fed doesn’t set mortgage rates directly, its policy decisions influence them.
• When the Fed raises its benchmark rate, borrowing becomes more expensive, and lenders increase mortgage rates accordingly.
• When the Fed cuts rates, mortgage rates tend to follow — although not immediately.
3. Slower Economic Growth or Higher Unemployment
This one sounds harsh, but it's true: economic slowdowns or rising unemployment typically cause interest rates to fall. Investors seek the safety of bonds, pushing yields (and therefore mortgage rates) down.
The worse the economy looks, the more likely rates are to drop — but that comes with trade-offs.
4. Global Events Can Shift Investor Behavior
Geopolitical instability, financial crises, or major market shifts can drive investors into safer assets like U.S. Treasury bonds, reducing yields and putting downward pressure on mortgage rates.
So… When Will Rates Drop? Economists & everyone is concerned and all say SOON
What I Do Differently as an Independent Loan Officer
While most retail lenders are locked into their own rate sheets, I shop among 15+ wholesale lenders to find the most competitive rates and programs available. That flexibility allows me to:
• Often beat retail pricing
• Offer creative financing options (temporary buydowns, interest-only, etc.)
• Provide full transparency so your clients feel confident, not confused
• I can show any person real-time mortgage scenarios for properties you may be interested in based on a listing you may see or visit - including rate comparisons and estimated monthly payments.— specifically the yield on the 10-year U.S. Treasury note. Mortgage rates tend to track closely with this yield.
• Risk-based pricing — credit score, loan-to-value, loan type, and other borrower-specific factors play a role in the final rate offered.

06/20/2025

Last week, I had the privilege of helping a family—mom, dad, and two kids aged 11 and 6—purchase their very first home.

It wasn’t just a transaction. It was a moment years in the making, filled with hope, gratitude, and sheer excitement. Watching their faces light up when they realized, this is ours — that’s the kind of moment that reminds me exactly why after retirement I had to find a way to help people. I love what I am doing.

Helping people get into a home they’ve dreamed about isn’t just about mortgages. It’s about freedom. Stability. Possibility. And for this family, it was about planting roots in a place they’ve worked so hard to call their own.
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06/18/2025

I Cannot Make Every Closing But It's Always Enjoyable When I Help Another Family Buy Their First Home

05/07/2025

Frenchy’s Thoughts
I want to let everyone know that buying a home is NOT as onerous as many people feel it is! A good Real Estate Agent and a solid Loan Officer should take the time to explain the home buying process. There are really only four items that are required – Credit, Work History, Savings and Assets, DTI.
Credit - The main point any Borrower should understand is what does a Lender think of my qualifications to buy a home. They are about to give you $100K+ on up to some large number. In order to do so they want to insure that they will not be left high and dry. So the very first thing a Lender looks at is Credit. While it may be possible for some Lender to approve a mortgage for a buyer with under a 580 score, it is highly unlikely. But if they do, they will be charging you heavily to do so! Here are the basics of Credit Score
1. Under 600 – you may be approved but the cost of the Mortgage will be high
2. 600 to 650 – here is where a lot of people fall – You should be able to get a mortgage in this range but the costs are still rather high. I personally will work closely with clients in this range and let them know that with a little tweaking and 3-4 months of work we should be able to get them over 660.
3. 660 - 699 is where most Lenders and their Mortgage product offerings begin to appear. The costs will come down and the ease of approval is there
4. 700 – 800 is considered a good Credit Score and the closer to 800 you get the better rates and costs will come your way
5. Over 800 is tremendous and if the other factors work out OK you will love the benefits
Work History – Every client must have 2 years of continuous work. You can change jobs, have 2nd jobs, and even take a leave of absence but the 2 years is mandatory. We all know that in life things happen - leave of absence, get laid off, take maternity leave, have a family issues that may prevent the 2 years of work continuity. The rules allow for this in that we would go back three years and recoup the time that is missing – if you take 3 months off – then we go back three months into the third year to recoup the time. The Lender wants to see solid Work History
W2 vs 1099/Self Employed – If you are a W2 employee the prior 2 years of W2 statements are required. If you are a 1099 employee or own your own business then the Tax Return will be used. The issue with a 1099 or self employed client s that in many cases your tax accountant is taking writeoffs and your writeoffs can so big that you show little income or in many cases a loss. If you take a loss because of writeoffs, the Lender sees this as you are running a business that loses money and therefore you will not qualify for a mortgage. The advise here - if you know you are going to buy a home but you are 1099 or self employed, then let your Tax Accountant know before filing and take less deductons to show higher earnings. You really want to show about $60,000 in earninigs if 1099 or self employed.
Savings and Assets – It’s recommended to save at least 5% of a home’s purchase price to cover upfront costs like a down payment, moving expenses and closing costs. This means to buy a $300,000 home, you’d want to save up $15,000 (5%). There are many programs available that allow for Down Payment Assistance and there are ways to ease closing costs, but the monthly mortgage payment will become a constant must pay bill. If you are able to get into a home but you have little savings left, where is the backup for a roof leak, water issue, etc. So this should be a thought before buying. Many people feel that since I pay $2,000 a month on rent that if I get a $2,000 mortgage I should be OK. Remember with rent there are no obligations!
Earnest Money and Appraisal - At a minimum you will need to have an account that has enough to cover two items – earnest money and the money for the cost of an appraisal. If you are thinking about a $300,000 home you will need a minimum of $3,000 for Earnest Money and about $750 - $1500 for an appraisal
Debt to Income (DTI) - There is a concept called DTI and if you want to buy a home. There is a front end DTI and a back end DTI. Front end is monthly mortgage should not be more than 40% of your monthly gross income – if you make $4,000 a month your monthly mortgage should not be more than $1,600. In many cases a Lender will allow this to go to 45% but all other factors like Credit, Savings, Down Payment etc. must be good. Back end is monthly mortgage plus all other monthly liabilities – car loans, education loans, credit cards, etc should not be more than 50% of your monthly gross income. Again there are allowances to go above 55% based on the viability of the client.
The reality is that if you are ready with the above – Good Credit, Some Savings, Good Work History, and feel that prospects for the future look good then the next thought should be “one of the best roads to riches in the US is through real estate and I shoould take advantage of this now!"

04/18/2025

Another successful Closing - Congratulations Mercy - See Picture

04/14/2025

I walked into an Open House a little bit ago and met Agent / Broker Judy Jernigan from Sage&Grace Realty - 470-693-7915. The Open House itself was rather slow so we spent quite a bit of time talking when all of a sudden she asked if she could video me. So without having any script and not knowing any questions she might ask, we started. This is the result
https://www.youtube.com/shorts/oO4yleUd7O0 - copy and paste

Buying a home isn’t just about finding the perfect place—it’s about being financially ready to make it yours. In this quick conversation, mortgage loan offic...

11/18/2024

Frenchy's Thoughts

Frenchy's Thoughts
7 Tips For Making Your Best Offer
When you’re shopping for a new home, you may find you have to compete with multiple offers on the same listing. This is especially true in a seller’s market.
While you want your offer to win, the last thing you should do is keep increasing your bids until you can no longer afford the home.
To get the house you want without overpaying, start by following these seven guidelines.
Many of your rivals will skip some of these steps, giving you a competitive edge.
1. Get pre-approved for a mortgage
The home-buying process doesn’t begin by searching real estate listings or even by calling a real estate agent.
Instead, it should start with a mortgage pre-approval from a lender.
A pre-approval accomplishes two important steps:
Verifies your price range so you know what homes you can afford
Shows home sellers you’re serious about the home purchase and won’t fall through
Sellers give preference to buyers who are pre-approved. Pre-approval tells them that when it’s time to close, you will have the money.
Although pre-approval takes a bit longer and requires an application, it’s a worthwhile investment — especially in a competitive market.
And, when the seller accepts your offer and you sign a purchase agreement, your pre-approval gives you a head start on your mortgage application.
2. Leave some ‘wiggle room’ in your offer amount
Just because a bank is willing to loan you $250,000, doesn’t mean you should offer exactly $250,000 for a house. In fact, doing this may damage your credibility.
Experienced sellers and real estate agents get nervous when buyers bid their full pre-approval amount.
Why is this a bad idea?
For one thing, maxing out your pre-approval could eliminate your “wiggle room” in future negotiations. The seller knows you’re already spending up to your mortgage lender’s limits
And, if interest rates rise, you may no longer qualify for that loan amount and will have to back out of the deal
Rates change all the time — up until you lock in a rate — and that happens after you have a purchase agreement
Understand, that just because you can afford your full pre-approved loan amount doesn’t mean you should borrow that much.
Also, be sure you’re planning ahead for closing costs, which will come due on your home’s closing date. Typical closing costs equal 3% to 5% of the loan amount.
3. Research the market and the seller
Your buyer’s agent can do a comparative market analysis to help you find the fair market value of homes you’re considering.
Realtors may call this market data “comps,” and it’s a key piece of the puzzle as you put together your first offer.
But there’s more to market research than finding a fair offer price.
If you or your agent search public records and real estate listings, you may unearth valuable “intel” about the homeowner’s motivations for selling. This could help you structure a winning offer for less money.
Armed with this information, you can craft a more tempting offer than your rivals for the same sale price (or less).
4. Make a respectable offer
Submitting a lowball offer that isn’t supported by sales data usually backfires, especially in a sellers’ market.
Buying a house isn’t like haggling at a flea market. When considering what to offer for a home don't fixate on purchase price, lean on your professionals. Your agent knows their local market what homes are selling for versus the list price and what seller concessions and considerations are being made. Your offer needs to be strategic to help you win the deal and negotiate the best terms.
All too often, the seller will be insulted by your “opening bid” and won’t bother to return your calls after that.
If in doubt about your offer amount, think about the home sale from the perspective of the seller. As the seller, you could have put a decade or more of work and money into the home, keeping the place updated and structurally sound.
This doesn’t mean you can’t offer below the seller’s asking price; it just means you’ll have more success with a serious offer letter backed up by market data.
5. Go easy on the contingencies
Most home purchase offers include a few standard “contingencies” — things that need to happen before the deal can close.
For example, it’s wise to make your offer contingent on a home inspection and your ability to get financing within a specified time.
The transaction should also include an appraisal contingency: If the home’s appraisal doesn’t justify the loan amount, the lender can’t move forward with your loan.
As a rule, however, contingencies are obstacles to successful closings. So keep them to a minimum.
Whatever you do, though, don’t waive the home inspection contingency. If you do, and later discover a major defect, you could lose your earnest money deposit if you back out of the deal.
6. Use your own real estate agent — not the seller’s
When you find the right house, move fast. Delays can be deal killers. At the same time, don’t hire the seller’s agent (aka, “listing agent”) to expedite the process.
Before you start house hunting, hire a buyer’s agent to represent your interests and help you negotiate.
The seller’s agent has a duty to promote the seller’s interests. That means getting the highest price and best terms for the seller, not you.
After all, the agents’ commissions will likely be built into the sale price you’re paying. When you don’t have a buyer’s agent, the entire commission goes to the seller’s agent. That’s a lot of money to pay someone else’s agent.
7. Keep your emotions in the background
Sometimes, buyers are so blinded by certain features — polished hardwood floors or swimming pools — that they overlook obvious defects.
This happens to experienced as well as first-time homebuyers.
It’s another reason to hire an agent. You need a third-party advisor at your side in case you fall in love with a home and try to bust your budget.
No matter how much you love a house, and how good your purchase offer is, you won’t always win. Rather than overpaying, be prepared to walk away.
There will be more homes for sale that meet your needs and wants. It’s possible that your true “dream home” is still out there.

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07/10/2024

Frenchy's Thoughts - I have been working with a lot of First Time Home Buyers (FTHB) and they tend to have the same four issues - 1. Credit not where it needs to be 2. Not enough savings for a Down Payment 3. Not knowing there are Closing Costs 4. Not being able to afford the Monthly Mortgage Payment - which
typically includes - Mortgage, Interest, Taxes and Insurance.
I can work typically around three of these issues. 1. Many communities have Down Payment Assistance Programs 2. Closing Costs can be rectified in several ways 3. Monthly Payments means finding a home that fits their budget. It may not be ideal but its a start and with Equity and Time we can grow them into a nicer home.
The issue I cannot work around is Credit. I do wish that the importance of Credit was taught in Middle School and throughout High School. It is the number one issue preventing FTHB's from qualifying for a home or in many instances, any type of loan. What FTHB's don't realize is that when their Credit Report is run, the Lender is looking at a person’s RESPONSIBILITY. If that person has credit cards and is late not just 30 days, but 60 and 90 days, on a continual basis, what is a Lender to do? I always ask the FTHB who has these issues, if they would lend $100,000 to someone with similar issues. I am never surprised to hear their responses because they are all the same – NO.
I, as an FTHB advisor, must work with FTHB’s to resolve these issues. This means starting them on the path to educate them on the importance of Credit. We first must set a realistic timeframe for when I might be able to get them qualified for a home. This may take 12 to 18 months. I let them know that I will work with them the entire time, but they must want to complete the process and I ask for their commitment.
Once committed, we then contact every Credit Company or Collection Agency on the Report and work out payment plans or pay off the amount due. Most of the time these companies just want to clear the issue off their books and will take a lot less than the total amount due. If someone stays committed, I will get them into a home and I will almost guarantee that this committed person will never allow himself/herself to get into a Credit situation again.
What really amazes me is that two out of three initially commit but less than one in three complete the process. It is sad that Credit is not understood by a vast amount of people throughout the US and might be the main reason why so many people never own a home of their own!

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05/29/2024

Frenchy’s Thoughts – I just read a recent article that said 75% of the people who qualify for a Mortgage stop shopping. Typically, these people qualify through the Real Estate Agent’s Mortgage Officer recommendation. Let me show you why this is not a smart move.
There are two types of Mortgage lenders – Retail and Wholesale. Retail is your Bank, Credit Union or a Mortgage Loan Officer recommended by your Real Estate Agent. These lenders typically have a set of products and rules associated with them by which they must adhere. Wholesale Mortgage Officer is an independent Lender who shops your possible mortgage to multiple lenders who are looking to grow their business. They, like car dealerships, have targets they want to meet, month end issues, etc., and are looking to create new customers through technology and support.
Here is an example – one of my partners, United Wholesale Mortgage, has just introduced a Nationwide Program of ZERO PERCENT (0%) down up to $15,000 for a home. If you are able to get a Seller’s Credit during the buy – a smart Loan Officer may be able to get a Client into a $500,000 home for NO MONEY AT ALL DUE AT CLOSING. UWM is the only Lender in the country offering this program. By the way, this program is open to everyone with no salary restrictions. The key is that the client must still be able to afford the monthly mortgage, interest, taxes and insurance.
Here is the program and feel free to reach out to me to discuss – 201-310-8321