Mar
18
My least favorite email signature quotes
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Email signatures typically have your name, position, company name, phone, cell, fax, url and maybe a quote. Some quotes are more annonying than others. Here are quotes used within the mortgage/real estate industry that get the nod as some of the worst:
- “The Greatest Compliment I can ever Receive is a Personal Referral”
- “Your Lender for life”
- “Helping you finance your dreams.”
- “Building my business, one referral at a time”
- “You’ve got a friend in the real estate/mortgage business.”
Here is the one quote I’d really like to see:
- “Refer me to your friends and family like you said you would.”
Jan
1
Why deal with a mortgage broker?
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There are many reasons why you should employ the services of a professional, licensed mortgage broker when you are ready for your next home loan. Probably the biggest reason is that they are on your side. If you go directly to a bank to get a home loan, the banks loan person has only the banks interest in mind, not yours. Another reason is that mortgage brokers are contracted with banks and lenders at wholesale prices, which mean you can get a better rate. For example, if you had the option of buying a new BMW from either the BMW dealer for full price, or from BMWs wholesaler that gets the cars directly from the plant at a huge discount, which would you choose? Most people like to save money and when you work with a mortgage broker, you are likely to get a better rate.
Mortgage Brokers work to find the best loan program for your specific situation matching you with the loan program that fits best. Having access to hundreds even thousands of loan programs means that your broker will find the best program for your personal needs.
What’s the difference between a mortgage broker and a lender? A mortgage broker counsels you on the loans available from different wholesalers, takes your application, and usually processes the loan which involves putting together the complete file of information about your transaction including the credit report, appraisal, verification of your employment and assets, and so on. When the file is complete, but sometimes sooner, the lender “underwrites” the loan which means deciding whether or not you are an acceptable risk.- Back to Top -Will I save money going directly to a mortgage lender? Not necessarily. In fact, if you are a reasonably astute shopper, you will probably do better dealing with a mortgage broker. Mortgage brokers do not add any net cost to the lending process, because they perform functions that would otherwise have to be done by employees of the lender. Furthermore, because mortgage brokers deal with multiple lenders — in a typical case, 25 to 30, sometimes more — they can shop for the best terms available on any given day. In addition, they can find the lenders who specialize in various market niches that many other lenders avoid, such as loans to applicants with poor credit ratings, loans to borrowers who do not intend to occupy the property, loans with minimal or no down payment, and so on.
The best reason of all, the Mortgage Broker works for you. He doesn’t work for the bank or any lender, but for you. His primary goal is to fit you into a product that is right for you, process the loan as quickly as possible, fund the loan in a timely manner. Another satisfied client and hopefully many referrals
Another reason to work with a Mortgage Broker is that you will have access to hundreds of loan programs instead of the small number offered by a specific lender. Mortgage Brokers also are more likely to help borrowers with poor credit, hard to prove income, or financing for unique situations.
Brokers make banks compete for your business
By having the ability to switch lenders at any time A mortgage broker can also deal with any problems that may arise much more efficiently then a bank.
Mortgage brokers have hundreds of loan products available to them, where as your local bank may have only a handful of loan programs. This means that credit, income, and other factors are not as important when it comes to getting you approved. The mortgage brokers job is to take a completed loan application and present it to various lenders, to find you the best possible rate and program that fits your needs.
Mortgage Brokers are compensated only if the mortgage loan closes. For this reason, mortgage brokers have an interest to see to it that the home buyer’s purchase proceeds quickly and smoothly.
Jan
1
Capital Gains Tax
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Capital Gains Tax is a tax paid on the profit from the sale of any investment or real estate.
When using the 1031 exchange you are not able trade down in value - you must use your equity to trade up. Many investor will use this strategy to move up to large properties until they have their ideal property for cash flow such as a large apartment complex.
The rate that you are taxed can depend on many factors including the length of time that you have owned the property (or investment). The longer you have the property the lower the tax rate on the gains.
Even with prior experience its important to seek the advice of a professional who deals with capital gains taxes. The last thing you need is an expensive mistake.
There are several strategies for deferring the taxes on capital gains, including a 1031 exchange.
Or if you prefer, call for a personal referral to a reputable CPA in your area.
Primary residences may be exempt from a capital gains tax if it meets certain criteria
Contact your personal tax advisor or CPA for additional information about capital gains taxes.
You can receive an exemption on capital gains if you have lived in the home as your primary residence for 2 years. You can be exempt for $250,000 if you are single, and $500,000 if you are married.
By holding a property for over a year, you can sell it and treat the profit as a long term capital gain. This could reduce your tax liability from 33% to 15%. See your tax professional for complete details on your situation.
With the Taxpayer Relief Act of 1997, married tax payers, who file jointly, get to keep $500,000 in profit on the sale of a home. The law applies to the sale of a personal residence after May 6, 1997, and allows the exclusion to be claimed once every 2 years.
The Taxpayer Relief Act of 1997 does not mean to the homeowner that you must have lived in the home for all 720 days out of 1800 days (2 out of 5 years). So long as the home is considered your primary residence, despite brief vacancies due to travel, you may still claim the tax break. If you have to leave for an extended period of time, say 2 years on a relief mission for a non-profit organization, as long as you sell within 5 years and have met the 720 day requirement you are okay.
Many investors will use a 1031 exchange as a way of avoiding Capital Gains Tax.
The 1031 Exchange allows you to rollover the equity from your investment property to the new property avoiding any tax penalties.
If you have taxable capital gains associated with the sale of your home, you may be able to offset these gains with any capital losses you may have from a sole proprietorship or other flow through business entity, losses in your stock portfolio, etc. Consult your tax advisor for more information.
There are very stringent timeframe requirements when identifying and closing on other properties in a 1031 exchange, so be sure that the broker you are working with has executed these transactions before. This may sound basic, but if you find that you are educating them on the process, you should consider another broker. Company training, even from your local banks, will not fill the gaps needed to make this process flow smoothly and do what it should, and avoid unnecessary tax penalties.
Aug
29
Choosing the right person to represent you in negotiating your home purchase is a major decision. Whenever you see the designation of Realtor® (with a registered trademark) you can rest assured that person is a member of the National Association of Realtors® (NAR), and has a commitment to meeting the standards of the organization. My team and I have a network of Denver professionals that have done a great job for our clients in the past, and we can provide you with a referral to a qualified representative, and pre-approval to shop as a cash buyer.
How will you know which Denver Realtor® is right for you?
Seek to work with an experienced Denver Real Estate professional that works with buyers on a regular basis. A real pro will go the extra mile to show you that they will look out for your best interest and gain your respect. Sincerity is a key word here. This type of Denver Real Estate Agent will act promptly to get you information about their team and their methods of doing business, along with quotes and references from past clients.
Once you set an appointment to meet with a Denver Real Estate Agent and his/her team, they should be rolling out the red carpet for you. You should have a personal introduction to each person you are expected to have contact with throughout the buying process. They should go out of their way to establish a long-term relationship with you, rather than thinking of you as a one-time transaction.
An experienced buyer’s representative will ask many questions regarding your goals rather than tell you what they think you want to hear. He/she will also take your finances into consideration so that they can help you make the purchase you qualify for. They will seek to exceed your expectations in every way by having a system in place that provides complete customer satisfaction.
What can an experienced Denver Realtor® do for you?
An experienced professional will have access to the computerized Multiple Listing Service (MLS), which changes daily. He or she can provide you with new listings to consider as they become available, and will also include important demographics and market value information on the area you are seeking to buy a home. This person will serve as a strong negotiator on your behalf and provide guidance every step of the way. In the long run, using a trained professional will save you time and money. It is important to let your Denver Real Estate Agent know what your goals are so he/she can eliminate the listings that do not meet your criteria.