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A Word from Tommy Mortgages

A Word from Tommy Mortgages

11/3/11

 ‎7 Things You Should NOT DO When Applying For A Home Loan
1.Don’t buy or lease an automobile! Lenders look carefully at your debt-to-income ratio .
2.Don’t move assets from one bank account to another!
3.Don’t change jobs!
4.Don’t buy new furniture or major appli­ances for your new home prior to loan process!
5.Don’t run a credit report on yourself!
6.Don’t attempt to consolidate bills befor­e speaking with your lender!
7.Don’t pack or ship information needed for the loan application! Important paper­work such as W-2 forms , divorce decre­es, and tax returns should be easily accessible.

Do not, do not, do not open any new credit until after your closing.  The lender will recheck your credit right before closing, if you opened up new credit it will be counted in your debt to income ratio and could jeopardize your closing.  When in doubt, call your loan officer.

 

Tom “Tommy Mortgages” Mellett

Senior Loan Officer

NMLS # 146418

Cole Taylor Mortgage,

A Division of Cole Taylor Bank

P: (215) 657-9600

C: (267) 688-1973

F: (215) 657-9677

E: TMellett@coletaylor.com

 

1126 Horsham Road | Suite D | Maple Glen, PA 19002 | http://coletaylormortgage.com/tmellett
9/22/11

Fantastic Client Testimonial

To Cole Taylor Management,

I am writing this to praise the hard work of Tom Mellett.  I recently completed the purchase of my first home. As you know, for a first-timer, this is a complicated and sometimes confusing process. After my offer was accepted by the seller, I was off to the races to secure a loan. At that point I began to shop around for a lender and spoke with representatives from four different mortgage services. From our first meeting, Tom stood out. Tom was very straightforward, not patronizing, and practical. Tom’s honest personality was very comforting and I felt I could depend on his services. From the initial meeting to settlement, Tom was very involved. Tom worked on my behalf around the clock and kept me abreast of everything. At the time, there was some movement in interest rates for VA loans, and Tom’s strategy help secure me an extremely low rate. I can’t stress enough my gratitude for this. I feel that with another agent, I would not have gotten such a low interest rate along with a credit. This is important because in the future when I refer Tom to others, I can cite this. Interest rates aside, Tom made the process work for me. Tom was there every step of the way in terms of my application process. When my realtor’s title company was moving slow, Tom was on top of it. Tom and I had lengthy conversations about life, personal finance and property. These conversations really helped put my mind at ease and made me more comfortable with my decision to purchase a home. This kind of care in service should be recognized and commended. I can assure you that all of my future mortgage or commercial loan needs will be directed to Tom. Tom values his reputation as an honest and competent professional and it is evident in his approach. In regards to this letter, please feel free to contact me for further testimony of my satisfaction with Tom’s work and of Cole Taylor Mortgage.

Thank you,

Lucas Huerta

U.S. Navy (CIV)

7/29/11

Government Considers Removing Foreclosed Homes, Renting Them Out

In an effort to clear out the glut of unsold properties in today’s real estate market and prevent home values from continuing their downward spiral, the Obama administration is considering pulling foreclosed properties owned by Fannie Mae and Freddie Mac off the market and renting them out. This could, according to Credit Suisse analysts, ultimately help avert another 3-5 percent decline in home prices. Although this move would place the federal government in the somewhat controversial position of landlord to potentially thousands of tenants, the proposal to “trim the glut of unsold foreclosed homes on the market is worth looking at,” according to Federal Reserve chairman Ben Bernanke in testimony to Congress last week.

Given that national rent rates are on the rise, it will probably surprise no one that the cash-strapped federal government is considering getting involved in this aspect of real estate.  However, another idea rumored to be on the table is that federal officials might sell the foreclosed properties to investors in bulk to rent out. Do you think either of these options will work?

Tom “Tommy Mortgages” Mellett ~Cole Taylor Mortgage

(267) 688-1973 ~ TMellett@ColeTaylor.com

7/7/11

How a mortgage works.

If you are just about ready to buy your first home you might have a lot of anxiety. I understand that. Buying a home is a big commitment and it can be frightening….especially if you don’t know how a mortgage works.  Having the responsibility of a mortgage can put stress on your credit score to say nothing of your marriage.  It’s a big deal.

The good news is that it’s not all that complicated.

A mortgage is just a loan that you promise to repay. These loans are usually very large and in order to guarantee your repayment, the person who loans you the money (usually a bank) uses your house as collateral.

If you fail to repay the loan, the people who made the loan to you will force you to vacate the home. They do this through a process called foreclosure. Once they get you out of the house, they’ll just sell it to someone else.

So one thing that makes a mortgage different from other types of loans is that it is backed up by something–in this case your home. Credit cards are also loans but they aren’t backed up by anything. If you fail to make your credit card payments, the credit card companies can’t take your home away from you.

Every month, you’ll make mortgage payments.  Unless you have an interest only mortgage, part of the money you pay goes towards the principal – that’s the amount you borrowed.

Another part of the payment you make goes towards the interest you owe the lender. For example, let’s say you borrow $300,000 for 30 years at 5%. Your payments will be about $1600 a month. During the first year, almost all of that $1600 goes towards interest and here’s why.

If you take a look at your $300,000 balance and multiply it by 5%, you’ll see that you owe $15,000 in interest during the first year. $15,000 divided by 12 months is $1250. So out of each payment you make, $1250 goes towards interest and the balance ($350) goes towards the principal that you borrowed. At the end of the year, you still owe xxxxxxx.

Now your payments stay the same every year for a fixed mortgage but your balance is a bit lower, so a tad more of the monthly mortgage payments go towards the balance. So, over time, more and more of your money goes towards the balance and less  and less is charged for interest.

Less is charged for interest because your balance is lower and lower.  But keep in mind that (at least for now) the interest you pay is deductible for tax purposes.  That means, if you pay $15,000 in interest this year, you effectively reduce your taxable income by $15,000.  If you’re in the 30% tax bracket, that saves you $5,000 in taxes.  In short, for many people, having a mortgage is smart.

So that’s how a mortgage works. If you’ve read this post to the end, I salute you.  Everyone talks about mortgages all the time but not everyone understands how they work.  I know that sometimes people feel they should know so they are embarrassed to even ask.  Here’s a reminder; the only silly question is the one you don’t ask.  To learn more, please contact:

Tom “Tommy Mortgages” Mellett

Cole Taylor Mortgage

(267) 688-1973

TMellett@ColeTaylor.com

7/1/11

With a decade in the business, put my knowledge, experience and courtesy to work for you today!

As a mortgage professional, I have the necessary experience to guide you properly through the home buying process.  Buying your first home can be intimidating but it doesn’t have to be.  Let me help you and experience for yourself why my clients become friends.

My areas of expertise include but are not limited too:

*Quick, no cost, no obligation pre-approvals for confidence when placing offers on homes.

*Take the time to answer all your questions in a way that makes sense.

*Assistance with coordinating inspections, appraisals and contingency dates.

*Ensuring adequate qualifying ratios to make sure you are getting a loan you can truly afford.

*Research and present all viable options.

*Close your loan in the quickest and most efficient way possible.

*Refer you to my preferred network of professional associates including realtors, home inspectors, appraisers and insurance agents.

In today’s market, perseverance is more important than ever.  I will be there for you every step of the way, as long as it takes, with patience and perseverance.  You need someone to stand by your side throughout this important process.  I have the resolve and determination to see you through the realization of your piece of the American Dream.

“My greatest enjoyment is to see firsthand the joy and feeling of accomplishment in my clients that comes when they purchase a home.  I’m there for my clients every step of the way and see each deal through to the end.”

About Tom “Tommy Mortgages” Mellett:

“Tom is a Senior Loan Officer at Cole Taylor Mortgage.  He has 10 years of experience that has helped shape and guide the way he approaches the business.  He understands that the loan process requires persistence and dedication and is proud of his ability to get loans closed.  He thrives best when helping first time homebuyers.

Tom’s favorite part about working at Cole Taylor Mortgage is the family atmosphere and the fact that everything is done in-house.  From origination, to processing, underwriting to funding, he loves that he can watch his clients’ loans through the entire process and the personal stake that he takes in that.  Tom’s clients’ become friends, which has allowed him to thrive in this ever-changing business.  Put his knowledge and experience to work for you today.”

Tom Mellett

Senior Loan Officer

Cole Taylor Mortgage,

A Division of Cole Taylor Bank

P: (215) 657-9600

C: (267) 688-1973

E: TMellett@coletaylor.com

1126 Horsham Road | Suite D | Maple Glen, PA 19002 | www.coletaylor.com


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