Ed Mawhinney of Oak Mortgage Company, LLC

It All Started on a Mountain!

by Ed Mawhinney of Oak Mortgage/Republic Bank

Back in May 2016 while on a business/personal trip to Las Vegas, I received a phone call from Chris I who was referred to be another client of mine. After playing phone tag after several calls, I texted Chris and told him I was out of town on business and I would text him a link to an online loan application that he could fill out at his leisure and I would get to it once I was done for the day. What Chris didn't know that I was with my son who lives and works in Las Vegas and we were about to climb a 3000 ft. mountain called Exploration Peak in Southwest part of Las Vegas. 

After I sent the text my son and I started our hike up the trail to the first of 2 rest area's. By the time I got to the first rest area, Chris had already started an online loan application. By the time I got to the top, he had completed it and I called him and spoke with him and explained where I was at, he really thought that was neat I could do all that from a mountain. I told Chris once I got back to my son's home I would run his credit and start to explore his purchasing options. 

Later that day I ran Chris's credit profile and pre-qualified him for a home. Chris was interested in purchasing a short sale or foreclosure. I explained to him the pro's and con's of purchasing that type of home and he completely understood the challenges that it presented and wanted to move forward. Chris was interested in purchasing a foreclosed home that needed some work and wanted to use the FHA 203K Loan Program. 

Here is How He Purchased The Home and Made $30,000 in Equity

I told Chris that I was traveling back to New Jersey the next day and contact him the next day. I asked him if he was working with a realtor and he said no. Since he wanted to purchase in Egg Harbor Township I put him in contact with Robert Bergmeister of Keller Williams Atlantic Shore in Northfield. Robert handled all of Chris's Real Estate needs and Oak Mortgage/Republic Bank and I handled the financing of Chris new home. 

Chris found with the help of Robert a home that just came on the market that was a foreclosure, Chris with Robert's guidance placed an offer of $150,000 and the offer was accepted. The home needed some minor repairs since it has been vacant for some time and he needed to make the repairs in order to purchase the home. 

This is How The FHA 203K Loan Comes into Play

Chris hired Miros Renovations LLC to do the work. They estimated the work to be done at $7600.00 and it would take about 10-12 days to complete. So did Chris have to pay out of his pocket for the repairs? The answer is no. Chris was able to use the FHA 203K Loan to purchase and renovate the home all in one loan. $150,000 for the purchase and $7600.00 for the renovation for a total amount of $157,600 was his loan amount. Down payment was only $5516.00 plus normal closing cost. 

In the picture to the top right is Chris and his brother outside his new home and on the right bottom is Robert Bergmeister of Keller Williams Atlantic Shore and Ed Mawhinney of Oak Mortgage/Republic Bank who help Chris realize his dream of Homeownership. With their help and guidance they were able to helped Chris live his dream of homeownership.

The home is a 4 bedroom 3.5 bath with a fully finished basement and 1.5 garage. During the loan process and appraisal was done on the home and the home in it's finished condition according to the contractors estimate the home will be worth $187,000. Not bad for a first time homebuyer. 

To learn more on how Robert Bergmeister of Keller Williams Atlantic Shore and Ed Mawhinney of Oak Mortgage/Republic Bank can help you realize the dream of homeownership contact us today at:

Posted in:FHA 203K
Posted by Ed Mawhinney NMLS# 241133 on December 29th, 2016 7:41 AM

There has been a lot of talk lately about the new Fannie Mae 97% conventional loan were the borrower has to put down just 3% down instead of the FHA loan at 3.5% down and lifetime mortgage insurance.

Some feel that this new loan is in fact the way to go. One of the key components to these loans is the increased mortgage insurance premiums the borrower must pay which can be .3% per month more in the premium over the 95% down loan and even more for the FHA loan.

I have included a short video example one the difference between these two loan. Just view the video below to learn more. If you have any questions please reach out to either your mortgage professional or contact me.

Posted by Ed Mawhinney NMLS# 241133 on March 6th, 2016 11:37 AM


Some Highlights:

  • The Cost of Waiting to Buy is defined as the additional funds it would take to buy a home if prices & interest rates were to increase over a period of time.
  • Freddie Mac predicts interest rates to rise to 4.8% by next year.
  • Corelogic predicts homes prices to appreciate by 5.3% in some area's over the next 12 months.
  • If you are ready and willing to buy your dream home or your first home, find out if you are able to!
It is easier than you might imagine to see if your are able to buy. To see just how easy it can be, view the Path2Buy Homeownership Education Program or contact me at 609-513-0872 if you have any questions or concerns.

 




Posted by Ed Mawhinney NMLS# 241133 on January 26th, 2016 6:42 PM

There are many people sitting on the sidelines trying to decide if they should purchase a home or sign a rental lease. Some might wonder if it makes sense to purchase a house before they are married and have a family. Others may think they are too young. And still others might think their current income would never enable them to qualify for a mortgage.

I want to share what the typical first time homebuyer actually looks like based on the National Association of REALTORS most recent Profile of Home Buyers & Sellers. Here are some interesting revelations on the first time buyer:



 

Bottom Line

You may not be much different than many people who have already purchased their first home. Meet with a local real estate professional today who can help determine if your dream home is within your grasp. You can also view the "Path2Buy Homeownership Education Program". It is a completely FREE program that will help you become and informed buyer. You can view the program by going to Path2Buy Homeownership.


 

 

Posted by Ed Mawhinney NMLS# 241133 on January 25th, 2016 9:13 AM


Last week, an article in the Washington Post discussed a new ‘threat’ homebuyers will soon be facing: higher mortgage rates. The article revealed: 

“The Mortgage Bankers Association expects that rates on 30-year loans could reach 4.8 percent by the end of next year, topping 5 percent in 2017. Rates haven’t been that high since the recession.”

How can this impact the housing market?

The article reported that recent analysis from
Realtor.com found that - 

“…as many as 7% of people who applied for a mortgage during the first half of the year would have had trouble qualifying if rates rose by half a percentage point.”

This doesn’t necessarily mean that those buyers negatively impacted by a rate increase would not purchase a home. However, it would mean that they would either need to come up with substantially more cash for a down payment or settle for a lesser priced home. Below is a table showing how a jump in mortgage interest rates would impact the purchasing power of a prospective buyer on a $300,000 home. 

 

Bottom Line

If you are considering a home purchase (either as a first time buyer or move-up buyer), purchasing sooner rather than later may make more sense from a pure financial outlook. I offer to any potential buyer a Total Cost Analysis that really breaks down the true cost of any purchase in a simple easy to view online report. To see an example of a Total Cost Analysis go to https://mcedge.tv/16j9q0. Call me today to get your free Total Cost Analysis. 


 

 


Posted by Ed Mawhinney NMLS# 241133 on December 1st, 2015 9:45 AM

Millennials: What FICO Score is Needed to Buy a Home? | Keeping Current Matters

In a recent article by the Wharton School of Business at the University of Pennsylvania, it was revealed that some Millennials are not looking to purchase a home simply because they don’t believe they can qualify for a mortgage.

The article quoted Jessica Lautz, the National Association of Realtors Managing Director of Survey Research, as saying that there is a significant population that does not think they will be approved for a mortgage and doesn’t even try. The article also quoted Fannie Mae CEO Tim Mayopoulos :

“I do think that there’s a sense out there in the marketplace among borrowers that credit may not be available, especially for people with lower credit scores.”

So what credit score is necessary?

A recent survey reported that two-thirds of the respondents believe they need a very good credit score to buy a home, with 45 percent thinking a “good credit score” is over 780.

In actually, the FICO score on closed loans (as reported by Ellie Mae) is much lower and has been dropping over the last several months.

FICO Score Requirements | Keeping Current Matters

Bottom Line

Millennials who are considering a home purchase should get advice from a local real estate or mortgage professional now. They may be surprised how much the requirements for a mortgage have eased.

At Oak Mortgage many of our loan products require a minimum of a 640 FICO score in order to qualify. Call me today at 609-513-0872 to discuss your particular situation and get a FREE credit evaluation.

 

Posted by Ed Mawhinney NMLS# 241133 on November 24th, 2015 9:49 AM


Today I would like to talk about some of the REAL reasons why it is a good idea to own a home. With all the negative talk about home buying these days no wonder everyone feels confused. You can dispel that confusion by getting educated from the right sources on home buying today.

Let's watch a short video below on the reasons here and how you can get educated to becoming the most educated homebuyer you can be. : 

And when you are ready to purchase or learn more, just give me at call at 609-513-0872 or email me at emawhinney@oakmortgageusa.com

Posted by Ed Mawhinney NMLS# 241133 on November 21st, 2015 9:40 AM
The Difference An Hour Can Make [INFOGRAPHIC] | Simplifying the Market™

The Difference An Hour Can Make [INFOGRAPHIC]

The Difference an Hour Can Make [INFOGRAPHIC] | Simplifying The Market

Every Hour in the US Housing Market:

  • 634 Homes Sell
  • 347 Homes Regain Positive Equity
  • Median Home Values Go Up $1.46

simplify

This is a test.

Posted by Ed Mawhinney NMLS# 241133 on October 30th, 2015 10:06 AM
5 Financial Reasons To Buy A Home | Simplifying the Market™ 5 Financial Reasons To Buy A Home | Simplifying the Market™
5 Financial Reasons To Buy A Home | Simplifying The Market

5 Financial Reasons To Buy A Home

We have reported many times that the American Dream of homeownership is alive and well. The personal reasons to own differ for each buyer, with many basic similarities.

Eric Belsky, the Managing Director of the Joint Center of Housing Studies at Harvard University expanded on the top 5 financial benefits of homeownership in his paper -The Dream Lives On: the Future of Homeownership in America.

Here are the five reasons, each followed by an excerpt from the study:

1.) Housing is typically the one leveraged investment available.

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

2.) You're paying for housing whether you own or rent.

“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”

3.) Owning is usually a form of “forced savings”.

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

4.) There are substantial tax benefits to owning.

“Homeowners are able to deduct mortgage interest and property taxes from income...On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”

5.) Owning is a hedge against inflation.

“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”

Bottom Line

We realize that homeownership makes sense for many Americans for an assortment of social and family reasons. It also makes sense financially. If you are considering a purchase this year, let's get together to evaluate your ability to do so.

simplify

This is a test.

Posted by Ed Mawhinney NMLS# 241133 on September 8th, 2015 9:42 AM
What Do You Really Need to Qualify for a Mortgage? | Simplifying the Market™ What Do You Really Need to Qualify for a Mortgage? | Simplifying the Market™
What Do You Really Need to Qualify for a Mortgage? | Simplifying The Market

What Do You Really Need to Qualify for a Mortgage?

A recent survey by Ipsos found that the American public is still somewhat confused about what is actually necessary to qualify for a home mortgage loan in today’s housing market. The study pointed out two major misconceptions that we want to address today.

1. Down Payment

The survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 36% think a 20% down payment is always required. In actuality, there are many loans written with a down payment of 3% or less.

Here are the results from a Digital Risk survey done on Millennials:

Millennials & Down Payments | Keeping Current Matters

2. FICO Scores

The Ipsos survey also reported that two-thirds of the respondents believe they need a very good credit score to buy a home, with 45 percent thinking a “good credit score” is over 780. In actuality, the average FICO scores of approved conventional and FHA mortgages are much lower.

Here are the numbers from a recent Ellie Mae report:

FICO Score | Simplifying The Market

Bottom Line

If you are a prospective purchaser who is ‘ready’ and ‘willing’ to buy but not sure if you are also ‘able’, let's get together to discuss your true options.

 

simplify

This is a test.

Posted by Ed Mawhinney NMLS# 241133 on September 3rd, 2015 1:29 PM

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