First Ohio Home Finance

Think it’s a strange time to invest in real estate? Well, think again. With the discounts offered by home builders and competent Realtors, there are a number of good ways to become invested in real estate.

Some clients are surprised when I mention investing in new homes. Most people think of real estate investment as the rougher multi-family units, such as near college campuses. But those situations are not for everyone.

The hard part about investing – having your units torn up, chasing down rents, patching up 60-80 year old homes – can go away when you buy a new unit. And with builders stinging from a plunge in new buyers, they have begun to offer some genuine discounts that make cash flowing an investment that much easier.

One of these programs is with long-time local builder Dunmoor Homes. Gary Dunn and Bill Moorhead have worked hard to build quality homes and place lease option clients in them. With two-year leases and reasonable cash flow already in place, it’s a good time for investors to step up.

The other thing that really sets Dunmoor Homes apart from a mortgage and personal finance perspective is Bill understands the financial condition, perspective, and traps for average Ohioans. He’s even held countless seminars in the Columbus market called Seven Steps to Smart Homeownership. He makes a personal investment in setting up tenants to succeed so one day they, in turn, can own the place they’ve called home.

I personally can’t think of a better answer to the current foreclosure mess, than to have men with integrity doing everything possible to ensure your neighbor can succeed in the American Dream!

The best way to find out more about this easy way to invest in real estate is to shout out to Bill.Moorhead@DunmoorHomes.com or visit their website at www.1031homes.com.

Matt Berardi makes more loans than any other employee at First Ohio Home Finance, so sometimes we wonder how he gets it done. There’s always a secret somewhere when you have a salesperson out in front.

We received a piece of mail last week about Matt Berardi’s mortgage lending that really made an impression on nearly everyone at our branch of First Ohio Home Finance - and told part of the secret to the way he does business.

Like every loan we make, there was a little luck and a lot of caring communication and hard work involved in this story.

Dear Matt,
We can’t thank you enough for all the work that you did on our behalf for our recent refinance. Your expertise and patience cut our loan duration in half and we still can’t believe that low rate is really, really true! A huge weight has been lifted from our shoulders - thanks to you.
Warmly,
Carol L.

I couldn’t help but blog about this mortgage lending success. Thanks, Carol!

We love what we do here at First Ohio and work hard to find opportunities to help other Ohioans!

I have to say April is one of my favorite months of the year. It contains one of my favorite family birthdays. And you gotta enjoy sunshiny blue skies, breezy days and crisp nights, flowering bulbs and trees, watching the kids hunt for Easter eggs - even the occasional shower.

It’s also tax day. But April means more than this for Ohioans.

This collection of fabulous spring days has been designated as Financial Literacy Month in Ohio, which makes it a great time to re-focus on getting your finances in order. I don’t mean to encourage the kind of stress that comes from worrying about bills, fighting with your spouse, or trying to figure out how you are going to pay for college years in the future.

There are some great ways to get a clear picture of your financial health. And then take simple and clear steps toward improving the future for yourself and your family, if you have one.

A good place to start this process is at Your Money Now web site established by the Ohio Treasurer’s office. While many people are cynical about government officials actually helping the average citizen, I don’t write about this because Cordray is a ‘Public Official’. After following his career for almost a decade, I see a very smart individual who uses all available resources with a genuine interest in helping others.

With knowledge comes control – and it can be even be fun. This site does have some helpful information about avoiding fraud, tracking your cash flow, teaching your kids the basics, and managing debt. They even have a section in Espanol.

Other fun resources include personal finance blogs like here, here and here. There are even some focused on singles, marrieds, women, news, the heavily-indebted, and goals. Pick the one that meshes with you or put them all into a feed reader.

We recommend getting an annual mortgage review to make sure your loan is still the best for your ever-changing situation. And now is a great time of year to do that. If you’ve had changes recommended by your tax preparer, inherited money, changed jobs, or are even having trouble making your house payment – now is a great time to talk with a loan officer. The worst thing you can do is ignore the problem.

Here’s the Your Money Now website link. YourMoneyNowOnline.org Oh, and enjoy the fantastic spring!

The state’s Department of Financial Institutions (DFI) audited our company’s mortgage practice last month with little notice.

I’d be lying if I didn’t admit the audit – before, during, and after – made me feel unsettled, mistrustful, and maybe even confused. We’ve all heard stories about new Ohio Attorney General Marc Dann, and I’m sure some of them get blown out of proportion – you know, the mythical $50,000 fine for having a file’s paperwork in the wrong order.

Even as we knew most of our files were in order, one concern was the additional mortgage disclosures which became required starting in January 2007. The paperwork and attending regulations tend to be confusing to borrowers and loan officers. The changes ushered in by S.B. 185 required a new Mortgage Loan Origination Disclosure Statement (MLODS), as well as re-disclosure of certain documents if the terms, payment, closing costs payable to us, or escrow changes.

The burdensome part of the new law is this re-disclosure is required 24 hours before closing. While it sounds like a common sense requirement, in the reality of our broader real estate industry it can be an aggravation to the very people it is supposed to protect.

In one humorous situation last year, we had a purchase closing scheduled during the summer. One of our borrowers happened to be a DFI employee. When the settlement statement was completed and approved by all the parties the morning of closing, it was discovered that the closing costs had changed - by less than $100. The borrower understood and agreed to the change. However, we were required to delay the closing until the following week in order to have a re-disclosure signed by the borrower. The borrower had to re-schedule his moving company, and the Realtor had a delay in their paycheck.

Needless to say, the borrower was not happy with us or the law. But they understoood – and we’d rather stay in business and help more Ohioans find the right mortgage product for their needs.

Another cause for concern was stated income mortgages – or in the current environment, called ‘liar’s loans.’ In making a loan, it is very important for loan officers not to lead borrowers to state a specific income. It is also unethical to leave that issue out of the loan application and later ‘back in’ the level of income that an underwriter would approve. Without internal auditing of every closing (which a small business like ours only does in a cursory way), we did not know what the state auditors would find.

The two state employees were unexpectedly thorough, spending 4 days occupying our conference room instead of the 2 they had asked for when first announcing their assignment. But they were courteous enough.
The result in our office was immediate. After getting an in-person clarification about new regulations, company owners called a meeting and made the requirements very clear.

All in all, I think the audit was positive in that it reinforced the need for more assertive management and record keeping if we are to stay out of ‘QC jail.’ But I know the company will be in the game - for another few decades at least!

Many people like you and me are hearing news of rate cuts but are uncertain about refinancing. If you are like most Ohioans, you bought a home with little down payment in the last few years and home prices don’t seem to have risen much. But mortgage rates are returning to 50-year lows…fixed rates this month touched 5.0%!

1. Now that the Fed has cut rates, you can lower my mortgage payment, right?
Actually, it’s not that easy. We often see mortgage rates rise when the Federal Reserve Bank cuts rates. The Fed adjusts the rate that banks borrow from each other, not consumer rates. Mortgage rates are directly tied to the bond market. But after 5 of the last 8 Fed rate cuts, mortgage rates have risen in the next three months.

2. So how can I take advantage of lower rates?
Most homeowners are angling to get into a fixed rate loan. That’s often a good idea when mortgage rates are low. Now the hot mortgage product is FHA loan. In the past, these programs were little used because of more favorable terms from subprime lenders. Now, the government has loosened its credit and appraisal guidelines to include more normal Americans and average homes. Also conventional loan rates are near 50-year lows!

3. What refinance options are available?
Many homeowners can save hundreds each month if they refinance. Usually it is getting out of an adjustable or second mortgage. With rates falling, this is a great time to do that. We have introduced programs to help no matter your equity position.

4. Can you help if I’m behind on my payments?
Most often we can. FHA has a special program now to help borrowers who have fallen behind on an adjustable rate mortgage (ARM). If you started missing payments after your ARM went up, we want to talk with you!

5. What if I bought from a builder and I owe more than my home is worth?

Many home buyers were sold on payment - without regard to historical price - and few saw the decline in home prices coming – hitting new subdivisions especially hard. We’ve helped a number of people who owe more than their home is worth. Call today!

6. I’d like to move but have heard stories of long times on market. What should I do?
People are still able to sell in this tough market. If you don’t have an exceptional home, it is taking longer and you may get less than you expect. The first step is to get preapproved. Next, you should find a builder or Realtor you trust. We have relationships with GREAT professionals in almost every market. We also know about innovative lease options and land contracts. We’ll steer you right - give us a shout.

7. What is a preapproval and why is it helpful?
Deciding how much you can and want to afford is a critical step to getting and keeping a home. Take a few minutes to discuss your situation with an officer at First Ohio Home Finance. We will explain the process and look over your income, asset and credit documents. You will get a Realtor referral and a preapproval certificate. You’ll also have confidence that offers you make will be able to close in a timely way.

8. Why would I work with First Ohio Home Finance instead of my local bank?
Unlike bank employees, mortgage companies in Ohio now have strict background checks, state testing and licensing, and thorough continuing education requirements. With 12 years in business and more than 6 years HUD-approved, First Ohio Home Finance has thousands of satisfied customers. We are the oldest mortgage company in each of our locations.