I am so very excited to introduce Mondie Pic'l of Fairway Mortgage to our Pasadena Real Estate Blog. Mondie has been my personal mortgage consultant for close to 10 years now and has been working very hard for many of my home buyers in providing them with a hassle-free professional experience in these very challenging "lending" times. Mondie will be doing a weekly feature talking about the important considerations of getting a loan, as well as providing us with a Pasadena mortgage update.
Mondie's first guest post is focused on home buyer lender consultations. My home buyers know that I counsel them to contact a lender for a full consultation and pre-approval BEFORE beginning their home search. This helps my home buyers understand their options and whether or not it is the right time for them to buy. It also helps prepare them strategically for that magical home purchase offer submission. Mondie's first guest post is about what to expect from a lender consultation and how to calculate your home buying affordability. So... without further ado, here's Mondie:
What can you expect from a mortgage consultation?
Many times when starting the pre approval process your
mortgage consultant is just a voice on the phone. So how do you know that they
are giving you the best information and advice?
It's often not about what they tell you but what questions
they ask you!
Many mortgage consultants start the process with the
objective of determining the highest purchase price for which you qualify. This
seems reasonable until you know what lenders don't include in your
qualification numbers. It is critical that a mortgage consultant start with
what you think you can afford. The first questions a lender should ask are:
- "What have you budgeted for your monthly payment
for your mortgage?" - "How much do you want to put down on your new
home?" - "What is your target price range?"
Why is this important? Loan qualification is a set formula
but people don't all live with the same lifestyle.
Lenders use a simple formula to determine your
qualification. They take your monthly debts:
- New Loan Payment Principal and Interest, Taxes
and insurance - Auto Loans/Leases
- Credit Card Payments
- Installment Loans
- Student Loans
The total of this is divided into your monthly GROSS income
and should not exceed 45%. There aren't many people that budget monthly off
their gross income so this calculation does not help you determine if you can
afford the monthly payment each month out of your NET income. Some buyers are more conservative
savers and have more taken out each month and deposited to their 401K resulting
in a lower net income, not to mention variations in health care costs and tax
withholding.
Lifestyle is another factor. Many families have child care and education expenses that
are not considered in lender qualification. Discretionary spending can also
vary between households depending on lifestyle. This is not taken into account
for qualification.
So the question is not what the lender can approve you for,
but what can you afford!
It is important
to work with a mortgage consultant that always has this in mind when working with you and
approaches your specific situation.
It is helpful for you to run a budget and consider your take home pay
and an average of your monthly expenses. Compare the new loan payment to your
current housing expense. How much more can you afford? Start your consultation
armed with this information so you can make the best decision and don't let a
mortgage consultant steer you into a home that is going to stress your budget
and keep you up at night.
Working with a mortgage consultant that takes the time to
understand your specific financial situation is the key to getting the right
financing for the right home.
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Mondie Pic'l is the Branch Manager for Fairway Mortgage. She has over 25 years
mortgage banking experience and has demonstrated a lasting commitment to
providing personalized customer service.
Mondie has proven that a mortgage business can be built one
satisfied customer at time. Mondie's business is driven by satisfied customers
and referral partners. Her extensive expertise in underwriting is crucial when
helping her customers navigate the today's more stringent credit guidelines.
She strives to understand the individual financial needs of each customer and
assist them in structuring the best loan for their situation. Mondie believes
that information and communication are the keys to a successful transaction;
her primary goal is to share her knowledge with borrowers to produce
outstanding results.
Mondie was in the top 10% of Mortgage Originators at Wells
Fargo Bank from 2004 until 2008. She was recognized for her customer
satisfaction in 2006, 2007, 2008 and 2009 with an average over 95% customer
satisfaction.
Although Mondie has an unusual name she was born and raised
in Southern California. She is married to her husband Greg who the IT manager
for a top 5 accounting firm. She also has a beautiful daughter, Danielle who is
in the third grade.
Please feel free to visit Mondie's web site at www.mondiepicl.com. Her
direct line is 626-233-1303
