New Year's Resolutions

By Tammie.VanDeusen@nafinc.com January 4, 2018

It's that time again…time to reflect on the previous year and prepare for the New Year ahead. If you had resolutions last year that you didn't achieve by the end of the year, trust me you are not alone! I have come to realize that in order to truly make a change in my life I have to have an action plan and I have to actually do the tasks required to make it happen (as silly as that may sound). Are you ready to make changes in your daily routines and start your New Year's Resolutions on the right path? If you want to have something that you have never had or do something that you have never done there is no-one stopping you but the person in the mirror. The great news about this is that you also have the power within you to make it happen and there are great resources available to help guide you into making changes today and lead you towards achieving your dreams. Here are my tips to help you create and triumph over your New Year's Resolutions. Make it a great year!

Letting Go

Before you can even begin working on yourself in the New Year or at any point in time in your life you should take some time to reflect on where you have been and let go of things that may be holding you back. Letting go of stress, worry and fears can make a major impact on your resolutions in 2014. Check out this great article that lists 20 things to let go of to help you feel better physically, emotionally and spiritually.

Develop a Personal Mission Statement

When it comes to mission statements the first thing that comes to mind are businesses and non-profit organizations, however have you ever thought of creating a personal mission statement? A personal mission statement is about you and your values and true vision for your life. The mission statement should be applicable to every area of your life and it should be something that will serve as a reminder when you feel that you may be getting off track of your main goals in life. Ask yourself what you see as your purpose in life; what are you most passionate about, and what are your values? Don't be worried if this takes you some time, there is no one path or one method as this should be something very personal for you. Here are some steps that may be useful in the process of developing a personal vision and mission statement.  You may also be interested in reading or listening to Stephen R. Covey's Habit 2 of The 7 Habits of Highly Effective People.

Setting S.M.A.R.T Goals

Have you ever wondered how to set goals or where to begin? What do you need to set your goals? First, be sure that you are setting S.M.A.R.T goals. S.M.A.R.T is an acronym for specific, measureable, attainable, realistic, and timely.  These goals can be a combination of short term and long term goals but make sure that each one can be defined by these 5 steps.  If your goal is to get in better financial shape here is an example of a S.M.A.R.T goal: To decrease my personal credit debt by $4,800 by December 31, 2014 with the remaining $200 of each paycheck. For an additional explanation of setting S.M.A.R.T goals for your New Year's Resolutions.

Believing in Yourself

I deeply value the quote from Napoleon Hill which states, “Whatever the mind of man can conceive and believe, it can achieve." From personal experience, I can attest that it is not easy to change because it feels uncomfortable at first but if you believe in yourself and take the actions necessary to reach your goals you can do it. You must have a desire to achieve your dreams and believing that you can do it can make all of the difference in the world.

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Down Payment Download: How Much Do You Really Need?

By Tammie.VanDeusen@nafinc.com December 6, 2017
There is a well-rooted perception that to buy a home, especially your first one, you should keep saving and renting until you can make a 20 percent down payment. Reality is far different and knowing your options may get you through the door to homeownership that much sooner.

Doing More with Less

Black Knight Financial Services reports that 1.5 million borrowers became homeowners in the 12 months ended June 2017 with down payments of less than 10 percent. Most of these loans were conventional, fixed-rate offerings made through the Fannie Mae, Freddie Mac, and FHA loan programs. Because these agencies are now able to accommodate this type of loan, close to 40 percent of all new mortgages are being made with low down payments.
Mortgage Programs- Minimum Down Payment
Conventional Loans 3–5 percent
Conventional Jumbo 10 percent
FHA Loans 3.5 percent
VA Loans 0 percent
USDA Loans 0 percent

Weighing the Trade-Off

While it’s possible to get into a home sooner with less money up front, mortgages made with low down payments do come with the added expense of mortgage insurance premiums until that 20 percent equity level is achieved. They also typically result in the borrower paying more interest over the life of the loan, which could make the ultimate cost of the home higher.
However, proceeding with a low down payment might still save you money over the long run. You will no longer be paying rent and may realize tax savings after deductions for your higher interest expense and property taxes. Potential gains in the home’s value can also make the earlier purchase and expenses worthwhile over time. So, it is important to consider how these varying factors may affect your near-term budget as well as the potential for a long-term gain in your net worth. In many cases, your Loan Officer or financial advisor can help you weigh the alternatives.

Next Steps

Going through the preapproval process with a Loan Officer is an effective way to gauge how much home you can buy—and afford—given different down payment scenarios. It will also help you engage the attention of a Real Estate Agent. Having a preapproval letter will ensure they view you as a serious buyer instead of an aspirational browser still building your savings.
When it comes to down payments, in today’s market it isn’t as much about the amount you put down as it is how much you can comfortably afford to owe. Once you know that, homeownership is in reach.
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Buying a Home While Managing Student Debt

By Tammie.VanDeusen@nafinc.com November 29, 2017
If you’re a Millennial and attended college, there is an excellent chance student debt is part of your financial life. Total U.S. student loan debt surpassed $1.3 trillion and now affects some 40 million Americans. The percentage of individuals between the ages of 25 and 34 who have $50,000 or more in student loan debt doubled between 2005 and 2015. Meanwhile, the amount of mortgage debt held by this age group fell by half.
As pervasive as student loan debt is, it doesn’t need to define your future or keep you from reaching your homeownership goals.

How to Move On With Student Debt

Buying a home and repaying student debt are not mutually exclusive. The key to achieving both goals is balance. Here are seven tips for finding that middle ground within your own household’s finances.
  1. Know your options. You have options regarding your repayment programs if your debt is federal and your loans aren’t with a private lender. You also have the ability to switch repayment programs as your income, financial circumstances, and goals change. Visit the Department of Education’s website for a rundown of the repayment programs.
  2. Look beyond interest rates. Student debt management isn’t so much about the lowest interest rate as it is finding the most affordable repayment option. That affordability is what allows you to meet financial goals in addition to repaying your student loan debt.
  3. Keep up. Student loan debt can interfere with home buying if you have a history of late or missed payments. Payment history accounts for roughly 35 percent of your credit score. Timely payments and demonstrating your ability to handle the repayment of debt are actually positive attributes on a credit profile.
  4. It's all about DTI. From a Loan Officer’s perspective, it’s not about how much you already owe as it is about the ratio of that debt to your income (DTI). There are two ways to improve this ratio. The first is the one that many focus on: reducing your debt level. However, increasing income through a better job, freelancing, or having a nonworking spouse go back to work part time can also help you qualify for a mortgage.
  5. Take advantage of your first time buyer status. There are a number of first time homebuyer programs that can help you qualify for a mortgage. These programs may offer low to no down payment requirements, which makes owning a home and repaying student loans doable. Also, various loan programs will treat student loan debt differently when approving applications. Get advice from a Loan Officer to see which program may be appropriate for you.
  6. Work it. Many municipalities and, increasingly, corporations are offering student loan repayment programs as an employee benefit or as an enticement to locate to underserved areas. When looking at your employment options, consider how having access to such benefits might impact your ability to achieve your financial goals sooner.
  7. Think after tax. Take a holistic look at your current spending on an after-tax basis. Focusing on being free of student debt may sound good, but pouring your money into loan repayments while paying rent may actually be costing you more money depending on where you live. Under the current federal tax laws, mortgage interest is tax deductible for most filers. The tax savings, especially if it comes in the form of a tax refund, could help you retire your student debt even as you build your home equity. It’s a good idea to consult a tax professional to help you decide.
Don't let student loan debt stand in the way of your homeownership goals!
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Tips for Hosting a Successful Thanksgiving Turkey Fest

By Tammie.VanDeusen@nafinc.com November 22, 2017

Tips for Hosting a Successful Thanksgiving Turkey Fest
For most people, Thanksgiving is about celebrating family, giving gratitude, and, of course, enjoying food! It’s also means putting your kitchen and your cooking skills through their paces. With extra sets of helping hands around and often the preparation of more food than you may be used to cooking in a week, it’s also a day for taking extra precautions to ensure your home and everyone in it remain safe.
On Trend or in the Oven?
Deep-frying is an increasingly popular way to cook the Thanksgiving turkey, particularly because it frees up the oven. Also, those who prefer this method say it results in a superior bird. When trying this approach, it’s best to set up outside on a flat surface and well away from your house, decks, and awnings. Once you’ve finished, be sure to leave the cooking oil in a place where it can cool down to a safe level before disposing of it.

You Have to Be This High to Enter
Most turkeys take a few hours to cook, which means a lot of sustained heat is emitted from the oven, roaster, fryer, or grill. It’s advisable to keep the area clear of smaller family members, four-legged or otherwise. For younger kids, consider setting up an area of your house filled with enough distracting activities and snacks that they’ll be busy until dinnertime. Older kids can help with side dish preparation or may even be willing to run interference with younger guests, if you make it worth their while. For pets that might be tempted to come in for a closer look, consider setting them up in the backyard or distract them with long-lasting chew treats. Also, consider using gates to keep them out of the cooking area, if your floor plan allows for it.

What You Wear Matters
Since Thanksgiving generally involves a full day of cooking, most people want to be as comfortable as possible in terms of what they wear. However, loose-fitting clothing may pose a problem while cooking. So, you may want to trade in any long sleeves for a shorter model and encourage your helpers to secure any hanging material as well. With all the basting and lifting of large, heavy pans, wearing both an apron and shoes can help prevent direct contact with any hot liquids that may be inadvertently splashed.

Clear a Path
Between the back and forth of preparing the Thanksgiving meal and all the guests coming for dinner, your house will see a lot of traffic. In the kitchen, try to limit the number of people helping at any one time. This prevents accidental jostling and spills. It’s also a good idea to have a designated “clear space” where you can set something hot until you transfer it to a plate. That way, no one is stranded with a hot dish in their hands longer than they have to be. When removing the turkey from the oven, make sure the turkey pan is stable and the person doing the lifting has a good grip and enough room to maneuver.
Finally, make sure the path from the kitchen to the dining room is clear. You’ll most likely be making a number of trips from one room to the other while carrying hot food.
Enjoying Thanksgiving dinner at home with family and friends is something many people look forward to all year. It may even have influenced the type of home you chose. Make sure the holiday is thoroughly enjoyed and remembered for the right reasons.

Let’s Talk Turkey!
Here are some tips to keep in mind when preparing the main dish:
  • Thaw your turkey completely in the fridge before cooking.
  • Be sure to remove the neck and giblets from inside the turkey.
  • Spring for a good meat thermometer, or two, rather than relying on the pop-up.
  • When cooking stuffing inside a turkey, make sure it reaches 165° F in the center.
  • Allow turkey to rest 15–20 minutes before carving.
  • Have Butterball’s hotline number handy: 1-800-288-8372 (BUTTERBALL).
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Managing Your Financial Reputation

By Tammie.VanDeusen@nafinc.com November 9, 2017
Consumers and Loan Officers received a wake-up call in early September with the announcement of a data breach at Equifax Inc., one of the three credit-reporting bureaus. While such lapses happen, one of this size and scope occurring at a firm some consumers pay to protect their financial information—and others have no direct relationship with—highlights the need for added vigilance. Whether it was your information that was compromised or information you use in your job, greater care and awareness about safeguarding personal and financial information may be warranted.
What to Do
Generally, people gravitate to one of two extremes. Either they accept that breaches happen and do little to protect their information or they allow their anxiety to make them overly cautious. The best response resides somewhere in between, by being preventative and regularly monitoring your information even as your lenders, banks, and credit card issuers do the same.
The following tips will help you take quick action if you suspect an attempt is being made to improperly access or use your information.
#1: Stay informed. When you hear of a breach, be proactive. Find out if you were directly impacted instead of waiting for the company to reach out to you. In the Equifax matter, you can find out if you are among the 143 million affected by visiting www.equifaxsecurity2017.com. The site will also provide you with a course of action if you were.
#2: Put your information on lockdown. Freeze your record at each of the three credit bureaus: Equifax, Experien and TransUnion. Fortunately, you need only call one of the firms to initiate a freeze at all three. You can always grant access to your credit report once you enter the mortgage process through a temporary lift of the freeze. Then, you can speak with your lender about the right time to put the lock back on.
#3: Resist the urge to click. When you receive emails looking to confirm financial or personal information, don’t. No matter how official the email looks, pick up the phone and call the institution using a number you found that’s not on the email to confirm what information is needed and why.
#4: Monitor your information. Periodically check your own credit report. You can order copies at annualcreditreport.com. Signing up for an alert service is fine, but it only notifies you to activity after the fact. That enables you to take action, but it is not preventive.
#5: File your tax return as early as possible. Thieves who gain access to Social Security numbers often attempt to file earlier than you in hope of a snagging a tax refund. While the IRS is vigilant and has a protocol to guard against this type of fraud, it helps to be defensive and file early, even if you have to amend later.
#6: Change passwords regularly and agree to two-step verification processes. Many firms will now text you an access code before allowing you to reset a password. Additionally, some financial companies want to verify your identity, even if you entered the correct user name/password combination, by texting a confirmation number to your phone. Agreeing to this extra step creates an added layer of security.
Keeping your personal information safe is the goal. However, should you have any reason to suspect it has been compromised, report the theft and contact your state’s attorney general’s office. Also, notify your financial institutions. Being proactive is your secret advantage when keeping your information and finances safe.
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5 Home Maintenance Must-Dos for Fall

By Tammie.VanDeusen@nafinc.com October 23, 2017

In many parts of the country, fall is the perfect season. It’s not too hot or too cold, the air is clear and crisp, and the turning leaves create a backdrop for daily life. It’s also the best time to get your house ready for the coming change of seasons. With just a few preventative measures, you can ensure your home will be ready to take on the rougher weather that is sure to follow. Plus, once you’re finished, you can relax and really get outside and enjoy the season.

A Homeowner’s Fall To-Do List

1. Inspect the Exterior

Really look at your home’s outer shell and be on the lookout for things like peeling paint, missing shingles, eroded caulking, clogged downspouts, and loose gutters. By catching and addressing any of these conditions early, you can prevent moisture from penetrating the exterior of your home and potentially damaging your interior walls.

 2. Make a Clean Sweep

It is important to have your fireplace and chimney inspected and cleaned annually if you use them regularly during colder months. This will prevent soot from building up. Even if you do not use them or use gas logs, test your fireplace flue to make sure it forms a tight seal when it’s closed. The loss of heat can be expensive and make a room uncomfortable.

 3. Take It Inside

Scheduling a furnace tune-up ensures that your home will heat itself efficiently and safely, while replacing filters regularly keeps the system running optimally. Installing a programmable thermostat and reversing the direction of your ceiling fans also improve efficiency and heat distribution. Fall is also a time to check the batteries in your smoke and carbon monoxide detectors and run tests to make sure they are functioning properly.

 4. Treat Your Garage Like Your Closet

With the change of season, you will want to bring the equipment and outdoor decorations you plan to use in the coming months to the front and store the planters, tools, and furniture you won’t need until spring in the less accessible areas. Since you won’t be using it in the near future, it’s a good time to send your mower out to have its blade sharpened. It’s also important to make sure each of your cars is equipped with ice scrappers and an up-to-date emergency kit. Additionally, make sure your shovels and any other snow- and ice-removal tools are ready for duty.

 5. Shift Your Yardwork Focus

Think green even as your grass is about to go dormant. Fertilizing now strengthens roots to encourage growth in the spring. Raking also promotes a healthy lawn, and the leaves you collect make good mulch for your garden by helping insulate plant roots against the cold. Once watering is no longer likely, bring in your hoses and turn off the water supply to your spigots. This prevents any potential issues that might arise from water becoming trapped in the pipes and freezing.

We’ve all heard the saying, “An ounce of prevention is worth a pound of cure.” When it comes to your home, fall is the season of prevention. Taking the time to ensure your home is in good shape now can lead to worry-free months ahead.

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It's More Affordable to Own Than to Rent

By Tammie.VanDeusen@nafinc.com October 3, 2017
As rent prices continue to climb higher in many of the country's larger metro areas, saving for a down payment on a future home purchase is becoming an increasingly serious concern for a number of prospective home buyers.
The latest Real Estate Markets Report from Zillow revealed there are only 12 markets among the nation's 100 most populous metro regions in which both rental units and local home prices have been deemed affordable based on the median earnings of the area's residents—and that's almost exclusively because of skyrocketing rent prices. Through July, renting was officially more expensive than ever in 88 of those 100 real estate markets. Following three months of relatively modest movement, national rents increased 0.6 percent from June. Much of the issue associated with rental affordability is derived from the fact that rent prices never plummeted during the recession the way home values did, meaning their recent climb began from a higher starting point.

Affordable Homes for Those Who Earn and Save

What is perhaps most indicative of the current cost of renting in a metro area, is that through June, homeowners in only six of those 100 metro markets were paying a greater proportion of their monthly incomes toward their mortgage than apartment dwellers were toward their rents. With mortgage rates hovering near historically low levels—through Aug. 21, Freddie Mac data revealed 30-year FRMs had reached new lows for the year—buyers are allocating approximately 15 percent of their incomes toward homeowning each month. By comparison, during the pre-recession, housing-bubble era, the average American owner was spending more than 22 percent of his or her monthly income on mortgage payments and other associated costs.
"The affordability of for-sale homes remains strong, which is encouraging for those buyers that can save for a down payment and capitalize on low mortgage interest rates," said Stan Humphries, Zillow's chief economist. "But the health of the for-sale market is directly tied to the rental market, where affordability is really suffering. As rents keep rising, along with interest rates and home values, saving for a down payment and attaining home ownership becomes that much more difficult for millions of current renters, particularly millennial renters already saddled with uncertain job prospects and enormous student debt."
Humphries added that the wage gap between renters and buyers remains wide—around $30,000 in salary separates the average person in each contingent—and until wages grow at a more substantial pace, the challenges faced by renters will remain in place. Home value appreciation rates have slowed, which certainly helps with affordability, but in order to save for a down payment, the average renter simply needs to begin earning more.
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Working With Those Who’ve Served: What You Need to Know

By Tammie.VanDeusen@nafinc.com September 28, 2017

Whether they are still active or retired, U.S. service members account for 21 percent of all homebuyers and sellers. As a market segment, this demographic is very attractive. These individuals and their families move more frequently, and a bit farther, than their peer groups. They also tend to rely more heavily on Real Estate Agents to help them find their homes and close quickly. So, it’s important to help them understand their options, both in terms of housing and financing.

What’s Different About the Military Buyer Clients who are still active in the military tend to buy higher priced homes than their civilian peers. This may have something to do with the access they, along with veterans, have to the VA home loan program. This program gives active military—as well as—veterans a decided advantage by making homes more affordable.
The VA home loan program was developed several decades ago. It takes into account the special financial circumstances military personnel face due to repostings and periods of deployment. As a result, the program offers six key advantages to active military and veterans:

  1. No down payment required
  2. No mortgage insurance
  3. A limit on closing costs
  4. Lower mortgage interest rates
  5. Flexible credit standards
  6. 100% cash out refinance
A recent survey by the National Association of REALTORS found that slightly more than one-quarter of active military homebuyers do not take advantage of the VA home loan program. Additionally, a bit less than half of veterans use it for purchases or refinancing. This represents an opportunity for Real Estate Agents to educate military homebuyers on the program's benefits, such as the fact it may be accessed throughout a veteran’s life. There is no limit to the number of times the program can be used, nor does the benefit expire for those who are eligible.

Veterans and qualifying spouses should be encouraged to check their access to the VA program by requesting a Certificate of Eligibility from the U.S. Department of Veterans Affairs. They will need this anyway, if they do decide to borrow under the program.
Understanding the Nuances For Real Estate Agents, becoming familiar with the advantages of a VA home loan program is essential to assisting military clients. As an example, the VA has a set of minimum property requirements (MPRs), though these primarily impact condo purchases. While some purchases are allowed, the list of condos that may be financed using a VA home loan is limited. The list is maintained online here, making it easy to identify potential issues before going under contract.

Helping Without Asking Possibly the biggest barrier to helping active and retired military clients get the most out of the VA and other loan programs and incentives available to them is, in many states, veterans are considered a protected class. Depending on where you are located, you may be prohibited from asking questions about your clients’ military service.
An effective way of making sure clients are aware of these programs and incentives is to create a summary table of all programs, grants, etc. available to buyers in your area. This can be included in the welcome kit you hand your clients as they start to search for a new home. This way, you still provide essential information that may impact which homes they will be able to afford without asking for their military service status.
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Refinancing a VA Loan

By Tammie.VanDeusen@nafinc.com August 9, 2017
Among the benefits members our armed forces receive for their service is access to the VA loan program, which helps finance homeownership. These loans tend to be more attractive—in terms of rates, credit requirements, down payments, and refinancing—than those available to nonmilitary homebuyers.

Lifelong Benefits

Many who used this program to purchase their homes may not realize that they typically can continue accessing it throughout their lives as they buy and sell homes. The VA also offers its borrowers options for managing mortgages through a streamlined refinancing process.
The VA’s Interest Rate Reduction Refinancing Loan (IRRRL), which is also referred to as a “Streamline” or “VA to VA” loan, enables borrowers with a VA loan to refinance into a new, lower rate VA loan.
The interest rate on the new VA loan needs to be lower than the one on the current mortgage in order to qualify for this option. The exception is when an adjustable-rate mortgage is refinanced into a fixed-rate loan.

Hassle-free Refinance

Here are some other benefits to refinancing your current VA loan using an IRRRL.
  • The loan typically bypasses the credit underwriting process.
  • A new appraisal is rarely required.
  • No new money is necessary since associated costs can be included in loan.
  • Additional funds may be borrowed (up to $6,000) for energy-efficiency improvements to the property.
  • A new certificate of eligibility is not required, the one you used previously may be reused.
  • The occupancy requirement is more flexible.
  • Some lenders allow you to reduce your term from 30 years to 15 years.
With interest rates still near historical lows, an IRRRL could help lower your monthly payment further, freeing up funds for other uses for you and your family. The streamlined process for refinancing a VA loan makes it an option you’ve certainly earned the right to explore.
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Remodel or Relocate? 7 Steps to Decide

By Tammie.VanDeusen@nafinc.com May 24, 2017

A popular TV show involves a designer competing with a Real Estate Agent for the heart and finances of the featured homeowners. The designer offers a remodeling plan—within the homeowner’s budget—to address as many of the things about the home that led to considering a move. Meanwhile, the Real Estate Agent looks for a “dream” home that offers all the features the homeowners would like. Viewers watch the homeowners struggle to make budgetary and emotional tradeoffs and their final decision.

In real life, homeowners don’t receive cash and access to designer from a TV show to help them visualize their current home’s true potential before making an informed decision about selling. Instead, they have to balance their wants, needs, and finances on their own. So, how do you make an informed call on staying or going? It helps to have a plan.

Take Action

What follows is a step-by-step plan for gathering the information you’ll want to consider before making your next move.  

Step #1: Make a list of what you want from a home and from your neighborhood.

Homes are more than features—they are where a family’s memories and many of their relationships are made. It’s important to consider the emotional cost of leaving, especially if you’ve been in your home for a while.

Step #2: Grade your current location on how well it meets those requirements.

In addition to sufficient storage and bathrooms, for instance, think about how well the schools meet your needs. It’s also important to consider commuting and how you want to spend your time.

Step #3: Talk to designers and/or contractors.

Meet with professional renovators to discuss your wants and needs in regard to your current house. Get several opinions about what fixes can reasonably be made to your home, at what cost, and the anticipated timeframe.   

Step #4: Attend open houses and browse listings online.

This will give you a better idea of what your alternative housing options are and which neighborhoods or towns you might want to focus your search on if you do decide to move.

Step #5: Meet with a Real Estate Agent.

Once you have an idea of what might work for you, the next step is to understand the market value of your home as it is, along with the estimated value if you were to remodel. You will also want to get an idea of what small fixes and repairs the Real Estate Agent thinks would be needed to get your home ready to sell and factor those costs into your consideration.

Step #6: Contact a Loan Officer about financing options for both scenarios.

Cash-out refinancing arrangements, in particular, can make remodeling more affordable. You can access the equity you’ve built up in your current home and use it to pay for your remodeling expenses.

Step #7: Do your analysis—both financial and emotional. Be sure to include the expenses associated with moving, from the movers and closing costs on a new mortgage to the new furnishings and improvements needed for a new home.  

Stay or Go?

Will you remodel so that your home reflects your current needs and lifestyle preferences or put it on the market and enjoy your memories as you start a new phase in your homeowning life? Armed with your numbers and your available options, you’ll be better prepared to decide.

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