Client Spotlight: Legacy Mutual Mortgage

“Michael has been a great business partner! He and the Red Team Property Management staff are patient and proactive. They handle each situation with dignity and class and work to ensure they are completed to their clients’ satisfaction. I look forward to working with them on the next transaction.”

Jenni Jones

About Legacy Mutual Mortgage

Legacy Mutual Mortgage is a local full-service mortgage company conveniently located minutes from Downtown Fort Worth. With in-house processing, underwriting and closing, Legacy is at the top of their game in the mortgage lending industry. Legacy offers Conventional, FHA, VA, USDA, and Jumbo programs for both purchase and refinance transactions. I have been a licensed loan officer since 2004 and pride myself on “thinking outside the box” to consider all available options and find the best mortgage for my clients. Others say that I am reliable, approachable, and extremely knowledgeable in the industry. Customer Service is my #1 priority!

Jenni Jones
Loan Officer
MLO NMLS #263547
JJones@LegacyMutual.com

Legacy Mutual Mortgage
A Gardner Financial Services, Ltd/Crockett National Bank Company
Institution NMLS #278675
1300 S University Dr, Ste 110
Fort Worth, TX 76107

Office: 817-870-2777
Fax: 817-546-1656
legacymutual.com

Thinking About Buying or Selling A Home In 2016?

Here’s What You Need To Know…

Who could forget the nightmare of the foreclosure crisis? Borrowers didn’t understand the terms of their loans, many were blindsided by last minute changes in fees and rates at the closing table—essentially, home buyers were most upset about the lack of disclosure in the mortgage process.

Since then, the Consumer Financial Protection Bureau has been working on making the loan process more transparent than it had been leading up to this, and as of October 3, 2015, there are two new forms that have replaced the previous (four) more misleading and confusing ones.

Both the Loan Estimate and Closing Disclosure are intended to streamline the loan application process and make it easier for borrowers to understand their contract by clearly spelling out the most relevant details all on one page—including the interest rate of the mortgage loan, the amount of the monthly payments and a listing of all the closing costs. Even if you apply for an adjustable rate mortgage, your documents will explain how the interest rate and future monthly payments could change based on certain factors.

The good news is that the “Know Before You Owe” forms have built in many protections for borrowers. Although making that big step into your new home should be (financially) more clear and sound—Purchasers not paying cash could be waiting up to 45 days for their contract to close, along with other set-backs.

The NAR is recommending you have everything ready seven days prior to closing, so before you start house shopping, here are the things you need to know:

Rather than waiting until the day of the closing to see the final figures, Borrowers now receive the Closing Disclosure three days in advance. To prevent any unwanted closing delays, a good rule of thumb is to have all the paperwork in order a week before your scheduled closing date. When you go into the three-day period, you’ll want to avoid any unnecessary changes. Making changes as the clock winds down can come with a cumbersome set of hurdles.

So this means that you and your settlement providers, including your Lender and Agent are really under the gun to get everything squared away—more so than ever before. Buyers and Sellers have to be cooperative as well, because if last-minute negotiations are made, a new three-day waiting period kicks in.

With zero tolerance for error throughout most of the disclosures, it’s vital everyone is working with a Real Estate Broker and Lender who understands the multiple new systems that have been introduced with these forms.

For those of you thinking about buying or selling a home in 2016, there’s a lot to do, and now is the time to get started!

We invite you to connect with us at Red Team Real Estate. Our Realtors are skilled in handling all types of real estate, and our comprehensive knowledge concerning the latest laws and market trends, along with the ability to network with other Agents and Lenders will truly benefit you. Contact us today and find out how we enhance both the buying and selling experience for each and every Red Team client.

Winning. Clients.

Red Team Real Estate and Property Management
Red Team Real Estate and Property Management was started in 2012 to focus on being the provider of quality service that has never been seen before in property management. Our approach is to serve our owners by providing professional, knowledgeable service with maximum value.

2016 Must-Knows for Real Estate Investors

Red Team’s Year in Review

What a year! I hope that you found 2015 and all its new developments to be as exciting and rewarding as we did.

Among the changes this past year is the implementation of what is called the TILA-RESPA Integrated Disclosure rule, which has literally changed the way we’ve done business over the last several decades.

The ball started rolling back in 2011, when the Consumer Financial Protection Bureau began working on making the loan process more transparent than it had been leading up to the foreclosure crisis.

As of October 3, 2015, the two “Know Before You Owe” forms have replaced the four disclosure forms you’re probably accustomed to: the Good Faith Estimate and the initial Truth-in-Lending disclosure (provided when you applied for a loan), and the HUD-1 Settlement Statement and the final Truth-in-Lending form (issued just before closing).

By introducing forms that are expected to be less confusing, they hope to make sure consumers understand at every step along the way, the terms of their loans and the fees that they are paying. The following new forms will be used in every mortgage transaction:

The Loan Estimate form includes the interest rate, the fees for both lender and third-party services such as appraisals and title insurance, estimated closing costs and whether the borrower has the right to shop for services like title insurance. It also lists any prepayment penalties or future expected changes in interest rates. Lenders will be required to provide this form within three days of a loan application.

The Closing Disclosure includes the final figures for closing costs, prepaid taxes and insurance, payments, fees and mortgage terms, plus what costs are being paid by buyer and seller—and for the first time, how much is paid to each real estate company involved in the transaction.

Although it should make understanding what fees are being charged and what amount of money is needed at closing much easier, the new variables are going to create some problematic confusion as well.

We’ve already witnessed many delays of the closing process, especially with Investors who were working with Real Estate Brokers who are not yet familiar with the new rules and forms. And it’s also creating fundamental challenges for the Lending industry as well…

Rather than waiting until the day of the closing to see the final figures, Borrowers now receive the Closing Disclosure three days in advance. If the type of loan changes, a prepayment penalty is added, or the rate changes more than one-eighth of a percent, another waiting period of three business days is required again—after the redrafted documents have been sent out and received by the buyer.

Another big change is that you’ll be seeing the closing documents drawn up by lenders, rather than by closing agents. While the law doesn’t require the lender to draw up the documents, it now holds the lender accountable for any errors.

The National Association of Realtors has advised its members to add 15 days to contracts.

The good news is that these forms have built in many protections for borrowers. But for Investors who are not paying cash, it can make the time to close from contract execution take somewhere around 45 days. With zero tolerance for error throughout most of the disclosures, it’s vital you’re working with both Real Estate Brokers and Lenders that understand the multiple new systems that have been introduced with these forms.

For those of you looking to navigate through this new process both smoothly and effectively, we invite you to connect with us at Red Team Real Estate. We work for our owners, making your investment in your rental property create as much value as possible!

Winning. Clients.

Red Team Real Estate and Property Management
Red Team Real Estate and Property Management was started in 2012 to focus on being the provider of quality service that has never been seen before in property management. Our approach is to serve our owners by providing professional, knowledgeable service with maximum value.