Are you prepared for a client to visit you all of a sudden? I’m not just talking about someone that just shows up at your office, but that is certainly one situation. I’m talking about a client that wanted to stop by for a few minutes to discuss a home they noticed or the loan documents you asked for. How prepared are you and your office to have such a visit?

Maybe you keep a neat office, so this isn’t an issue for you. But let’s take it a step further. How about if your client(s) brought the rest of the family? If you want to be sure that your client(s) is not distracted, its best to have something in your office for children. Having a ‘play box’ in your office is a start. Fill the box with things like these:

• Crayons
• Coloring Books
• Toy Cars
• Dolls (‘action figures’ for the boys)
• Puzzles
• Crosswords
• etc.

Do they have older kids? It doesn’t hurt to have a Nintendo DS (or similar hand held game system) and a few games. A good used Nintendo DS can be picked up at a GameStop, or local game store. They are pretty inexpensive and come with a charger. Plus while you are there, you can pick up a few games. It does not have to be expensive and you may have this stuff lying around your house already.

It will help keep the kids occupied while you and your client(s) talk about business. Plus your client(s) will appreciate the extra thought.

Should your life stop just because you’re buying a home? Truthfully, you never know what affect actions you take today will have on the mortgage you apply for. Even if you don’t plan on refinancing or purchasing for another three to six months from now.

Something as simple as transferring money from your savings to your checking account can create hassles in the mortgage process. I know it may seem a bit much, but lenders are paying closer attention to mortgage transactions today. Sure, the transfer of money seems simple enough.. and maybe it is. But when lenders see a large sum of money transferred into an account, they want a paper trail to know where the money came from and be sure that all accounts balance.

There are at least six things that should be avoided when purchasing a home or refinancing your existing mortgage. Even if you are already ‘pre-approved’, you should wait until the loan has closed.

Buying, Leasing, or Refinancing a Car – Many people are inclined to ‘improve their social standing’ by purchasing a car and buying a home at the same time (yes, this includes leasing a vehicle). There’s nothing wrong with the concept itself, but buying the car before buying a home can affect what the lender determines you can afford for a home. Since a car is such a big ticket item, it can greatly raise your debt-to-income ratio, which lenders use to determine the amount of home you can afford. Ultimately, it will affect how much home you can purchase. Refinancing your automobile can affect your credit scores. Even though you are probably lowering your payments, the refinanced loan is considered new debt when calculating your credit score.

Becoming Self-Employed or changing jobs – Either of these could have a negative impact on your loan application and overall approval. In most cases, lenders want to see at least 2 years of self-employment. Keep in mind that this means 2 years worth of tax returns, which really means you probably have to be self-employed for more than 2 years in order to provide a full 2 years worth of returns. ** also, income is determined based on the ‘Adjusted Gross Income’ (after your deductions) ** Wait until after buying a home to become self-employed.

Changing jobs to a ’sales’ environment is also risky while you are considering a home purchase. Even though the position you accept is not considered ’self-employment’ is it still sales based. If you were receiving a salary prior to your new ’sales’ job then you will need to show 2 years worth of sales income. Being in a sales position has similar considerations as being self-employed.

Moving Money Between Accounts – I mentioned this in an example above. When a lenders underwrites your loan to determine your eligibility, they will request complete statements (yes, even the blank pages) from your accounts that contain liquid assets. When you move money around between these accounts, especially if they are large amounts, you will have withdrawals in some and deposits in others. The lender will want to see documentation for these transactions. Most people do not keep all of this paperwork, so it’s much easier to leave the money in the accounts until after you have purchased or refinanced your home.

Change Banks – This pretty much ranks up there with ‘moving money’. It just creates additional paperwork for you and the lender. The more paperwork, the more likely issues could arise for your home purchase. Not only could there be questions/concerns from the lender, but it could cause unnecessary delays in closing your loan. Stay with your current bank until the mortgage process is complete.

Make a Large Purchase – A large purchase is not just about a car or boat. Now that you are moving into a bigger place, you will probably want to fill it with furniture… and that ‘One Year Same As Cash’ deal sounds really tempting. Resist the urge to purchase that new sofa set until after you have obtained the mortgage. Again, this is for two reasons. First, it could affect your credit scores and debt-to-income ratios. Secondly, remember that you are not done buying a home until the loan closes. There are no guarantees until that happens. Unfortunately, there are a number of things that could happen which results in a declined loan application. Contact your local mortgage professional to help you avoid any costly mistakes.

Apply For a Credit Card – Although this is the last item I mentioned, this is equally as important. The new credit card won’t hurt your credit score too badly if you already have good credit, but it will cause the to question your financial stability for buying a home. For the time being, don’t apply for no interest credit cards or department stores. After you are settled into your new home, there will be plenty of time for shopping.

In summary, when you are buying a home or refinancing your current mortgage, it is best to stay away from anything that will look as though you don’t have your finances under control. The items above are just a few examples that could cause such a determination.

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If you live in the state of Texas and are looking for a reliable Mortgage Professional to assist you with the loan product that best fits your financial situation, give me a call. We do not charge upfront fees to run scenarios or charge unnecessary application fees.

Do you want to know all of your options? Call me today and let’s discuss them further.

Always available for your Frisco Texas Mortgage needs!

John Cannata  Legacy Texas Mortgage p# 214.728.0449

www.JohnCannata.com

Frisco Texas Mortgage Consultant

Windsor Place HOA – Fall Festival

On Saturday, October 24^th, 2009, Windsor Place HOA in Frisco Texas will be hosting a Fall Festival Party.

The festival will be held in the Pavilion at Newman Park, located on the corner of Angel Falls and Twin Falls. Party starts at 3 pm until 5 pm. Don’t be late or you may miss some of the activities.

What’s on tap?

-       Pumpkin Carving Contest (check out last year’s entries)

-       Kids Costume Contest (parents and pets are also welcome to dress)

-       Fall Photos

-       Goodie Bags

FOOD WILL BE PROVIDED! That’s right. Windsor Place HOA has hired Mooyah Burgers to cater our family fun event.

So, bring your kids, your smiles, and plan on having some good food and lots of fun!

You heard the radio adds, the television commercials, and your neightbor talk about the mortgage rates being at an all time low. Then you called your local mortgage company only to find out the rate was not much better than your current rate. Now what? Don’t worry, you still have options and it wont take a refinance to do it.

Did you know that most mortgage companies will allow you to make additional principal payments on your loan balance? Perhaps you receive a larger than expected tax return, an inheritance, a non-taxable cash gift, or that work bonus you were not expecting. You could apply this money toward your loan principal which result in a signicant savings and shorter loan life.

For this example, I am using a loan balance of $150,000, a rate of 5.0%, and a 30 year fixed rate mortgage. Please note that these examples are useful on Conventional, FHA, and VA loan programs. The only time this will not apply is if you currently have an Adjustable Rate Mortgage.

Based on the above numbers, your mortgage payment (principal and interest only) would be $805.23 per month. If you made each payment on time, with no additional principal, then at the end of 30 years, you will have paid $289,885.27 in payments ($139,882.27 in interest).

Does your budget allow for you to make one additional mortgage payment per year ($805.23 per year) which would be applied directly toward your principal? If so, you would pay off your mortgage in 305 payments (25 1/2 years). This is a savings of $$24,524.59 in interest. Think you can save $805.23 a year? No? How about if you broke up the $805.23 in 12 easy installments?

Look over your budget and see if you could afford $67.11 per month to add to your mortgage payment. By making this additional principal payment each month, you have increased your overall savings to $25,453.13. Your mortgage would be paid off in as little as 303 payments (25 years, 3 months).

All of this without spending ONE DIME on refinance fees. If you already have a great rate, but would like to pay off your mortgage sooner, this is the best way without refinancing to a shorter term. For best results, apply principal reductions more often rather than making one time payments each year. If making a principal reduction once a year, or once every 5 years is your only options, still do it. The reduction should still save you thousands of dollars in the long run.

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If you live in the state of Texas and are looking for a reliable Mortgage Professional to assist you with the loan product that best fits your financial situation, give me a call. We do not charge upfront fees to run scenarios or charge unnecessary application fees.

Do you want to know all of your options? Call me today and let’s discuss them further.

Always available for your Frisco Texas Mortgage needs!

John Cannata  Legacy Texas Mortgage p# 214.728.0449

www.JohnCannata.com

Frisco Texas Mortgage Consultant

Ask any parent and they will tell you “It’s GREAT to be a parent!”  I completely agree and would not trade my kids for anything in the world, but sometimes you need some time for yourself.

Family Frisco YMCA has organized a ‘Parents Night Out’ for THIS SATURDAY (8/15/09)! But you need to act quickly as they only have room for 50 kids.

You may register online or in person. I would suggest to go to their online site in order to ensure you get a spot. Here is the link to the online registration for easy access.

So, here is what you need to know:

PNO will be hosted by Frisco Family YMCA located @ 3415 Main Street in Frisco Texas.  You’ll have 4 hours to go to dinner, see a movie, have coffee with friends, or just TAKE A NAP!  PNO starts at 6 pm and goes until 10 pm.

If you are a member of YMCA, the cost is $25 for the first child and $15 for each additional child. Non-members cost $30 for the first child and $20 for each additional child.

The cost covers Top Notch care from your YMCA Camp Counselors, a G-rated movie, crafts, snacks, friends, and LOTS of fun activities.

Enroll today and start making plans for Saturday!