How Businesses Can Give Back

Joe Raquiza’s latest blog post!

It’s always important for me to give back to my community I serve as a business leader.  However, losing sight of that goal is surprisingly easy.  Not every business can afford to incorporate social “good” into their model, yet there are still ways you can use your business to give back.  I recently read an article that interviewed members of the Young Entrepreneurs Council, an invitation-only organization made up of promising young entrepreneurs, to ask their opinion on the matter.  Of course, some of these are more specific to startups, but nonetheless offer some interesting insights:

Lead by example: If you want your employees to give back to the community, then get involved yourself.  Share your stories, and if you’re going to an event, encourage your team to join you.  Likewise, make a point to support coworkers at their own events.  

Give back at what you’re good at: Have people give back with something that they can do well; for example, as a basketball enthusiast, I volunteer on a local kid’s basketball team.

Sponsor a local charity event: Get your entire company involved with supporting a local charity event.  This is a good way to generate value for the charity organizations, but also to get your own business some positive exposure.

Make social good a part of company culture: Companies can find great ways to make social good a part of their culture.  For example, giving them a day off once a month to volunteer for an organization of their choice, or maybe creating partnerships with local nonprofits.

Give bonuses to charities: By offering employees a bonus to give to the charity of their choice, employees are given a chance to creatively give back for the social good.

Align interests: The company ContextMedia supports initiatives to give back, and encourages their team members to share their personal causes, supporting through attendance and tickets.  Choose areas that align with what you do and support an organization.  

Provide incentives: If you provide incentives, then people will be more likely to give back.  The article talks about one hedge fund that selects a new charity to support every quarter, and every employee who donated $15 or more gets to enjoy business casual for the quarter.

Go pro bono: Nonprofits are always in need of talent, although they can’t always afford it.  If for-profit employees are looking for a way to give back, then working pro bono is a great way.

http://ift.tt/2lgQ3hf

Check out the latest from Joe Raquiza! http://ift.tt/2lCZDMd

What You Need to Know About FHA Loans

Check out Joe Raquiza’s newest blog post!

For those who aren’t familiar, an FHA loan is a mortgage insured by the Federal Housing Administration. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults. Since they lending standards surrounding them aren’t as rigorous, and the down-payment requirements are lower, FHA loans are popular with borrowers. However, there are things that borrowers need to know before they dive into an FHA. Here are some facts, taken from an article I recently read on bankrate.com:

You don’t need perfect credit: The minimum credit scores for FHA loans depend on the type of loan. As a general rule of thumb, people with credit scores under 500 are ineligible. However, the FHA will make exceptions for certain cases if they think the applicant meets certain requirements.

Minimum down payment is 3.5 percent: For most borrowers, the FHA requires a down payment of just 3.5 percent of the purchase price, which is what makes them so attractive in the first place. While Fannie Mae and Freddie Mac reduced minimum down payments to 3 percent back in 2014, these have limited availability.

Closing costs may be covered: The FHA lets home sellers, builders and lenders pay some of the borrower’s closing costs as an incentive to get the buyer to get a new home. If lenders agree to pay closing costs, they’ll typically charge a higher interest rate on the loan.

Lenders need to be FHA-approved: The FHA is only an insurer, so borrowers need to get their loan through an FHA-approved lender. These lenders offer varying interest rates and costs, so you’ll want to shop around.

Two-part mortgage insurance is required: Two mortgage insurance premiums are required on all FHA loans: the upfront premium (1.75 percent of the loan amount), which is paid when the borrower gets the loan, and then the annual premium, which is paid monthly and varies based on the length of the loan.

You can borrow cash for repairs: The FHA has a special loan product for borrowers that require extra cash to make repairs called a 203k. The loan amount isn’t based on the current appraised value of the home, but rather on the projected value after repairs are completed.

Financial hardship relief allowed: FHA insurance isn’t meant to be a get-out-of-jail-free card for borrowers that are unhappy about their mortgage payments. However, loan servicers can offer some relief to borrowers with an FHA-insured loan that are having trouble meeting payments by offering temporary periods of forbearance or modifying the loan.

http://ift.tt/2m3h5Zb

Check out the latest from Joe Raquiza! http://ift.tt/2lVByQF

Mortgage Tips For 2017

Check out Joe Raquiza’s newest blog post!

As Yogi Berra once said, making predictions is hard, especially about the future.  And predicting mortgage rates is no exception to that.  While they were low throughout 2016, they spiked after the election, even if they’re still low.  In 2017, who knows what they’ll do?  Either way, whether you’re buying a home or refinancing, here are 10 mortgage tips for the new year, taken from an article I found online:

You can make a small down payment (or none at all): Some loan programs allow qualified people to buy homes with down payments as small as 3 or 3.5 percent, while others don’t have any down payments at all.  The Department of Veterans Affairs, US Department of Agriculture and Navy Federal Credit Union all offer zero-down mortgages.  

FHA gets you a loan, even if you have imperfect credit: One plus side of Federal Housing Administration-insured loans is that they’re available to even those with imperfect credit.  You need a credit score of 580 or higher to get an FHA-insured mortgage with a down payment as low as 3.5 percent.  

Hold onto some savings: Mortgage lenders want you to have savings “in reserve” so that you can take care of any unexpected expenses and not have to miss house payments.  Depleting your reserves is a major mistake that first-time homebuyers make.  

15-year loans allow you to save: Even if mortgage rates will most likely rise in the new year, some homeowners will want to refinance, possibly by refinancing into a 15-year loan.  These have a lower interest rate than 30-year loans, and interest is paid over a shorter period.  While the monthly payments are higher, the total interest paid over the life of the loan is less.  

Only borrow what you can repay: People who buy homes often “stretch” to make their initial monthly payments, thinking that their incomes will rise over time.  Yet it’s a much better idea to live within your means.  A good rule of thumb is that all of your monthly debt obligations shouldn’t exceed 36 percent of your income.  

Ask about no-closing-cost mortgages: Typical mortgages have thousands of dollars in fees, and paying these out of pocket often gets you the lowest interest rate you’re eligible for.  However, you might also want to accept a higher interest rate in exchange for the lender paying some or all closing costs.  No-closing-cost mortgages are generally more attractive to people that plan on selling their homes within a few years.  

Get a zero-down VA loan: About a quarter of active-duty military personnel don’t know that they’re eligible for Veteran Affairs-guaranteed loans.  They’re available to any honorably discharged veterans, those on active duty or those who have completed six or more years in the National Guard or selected Reserve units.  

Ask about cash-out refis: Cash-out refinances occur when the homeowner refinances the mortgage for more than what is owed, with the borrower pocketing the difference.  These were popular during the real estate boom of the early 2000s, although not as much after the housing bust.  Yet they’ve been making a comeback as home values have climbed.  

You might be able to refinance into a VA loan: If you’re eligible for a VA-guaranteed mortgage, you could possibly refinance from a conventional mortgage into a VA loan.  In many instances, you’ll be able to refinance for up to 100 percent of the home’s current value.  

Be patient during underwriting: Between when you apply for a mortgage and the time you close on the loan, keep your finances steady.  Yet that’s often easier said than done, especially for first-time homebuyers.  While the mortgage is going through the underwriting process, don’t charge up your credit cards or apply for new credit.  If any change occurs, it might delay your mortgage closing, and in drastic cases ruin your mortgage.  

http://ift.tt/2hJRovz

Check out the latest from Joe Raquiza! http://ift.tt/2hFZfx5

Giving Back This Season

Joe Raquiza’s latest blog post!

This is the season for giving, yet that often gets overshadowed by the blatant materialism that inevitably comes with this holiday.  One great way to move past that is to try and give back to the community.  I recently read a post online about several charitable activities you can do this year to spread the love.  I loved a lot of these ideas, so I thought I’d share a few of them with you:

Send cards to military servicemen and veterans: Members of the military make a huge sacrifice for their country, and sending festive cards is a great, simple way to show them how much we appreciate that sacrifice. You can send the cards through a local Red Cross chapter that participates in the Holidays for Heroes program, or check to see if the nonprofit A Million Thanks has a drop-off location near you.  

Collect donations for a food bank: Food banks distribute food to families and organizations that serve people in need, and you can help by either facilitating your own food drive or gathering cash and food donations to contribute to a food drive run by other organizations.  

Volunteer at a shelter: Even if you’re on a tight budget with your money, you can still donate your time by volunteering at a homeless shelter or women and children’s shelter by doing food prep or meal service.  This can be a gratifying and rewarding experience for the entire family.  

Donate old clothes: If your family has clothes or sheets, you can donate them to Goodwill or put them in a drop-off bin.  Just make sure that the drop-off bin accepts charitable donations, otherwise they might go to a for-profit group.  

Sponsor a family: Another great way to give back is to sponsor or adopt a family for the holiday.  This is often be facilitated by local religious and charitable groups, who collect the clothing sizes and wishlists of needy families.  It might be expensive, but you can always get a group of people to chip in for one family.  

Donate to Toys for Tots: This program created by US Marines collects and distributes new, unwrapped toys to families that can’t afford gifts.  It’s fun to get your children involved by having them pick out cheap toys they think another child will enjoy.  

http://ift.tt/2hp4twD

Check out the latest from Joe Raquiza! http://ift.tt/2hKBRyH

How to Get a Quick Mortgage

Check out Joe Raquiza’s newest blog post!

Picture this: you’ve found the perfect real estate, and you’re ready to buy it that moment, but then you realize there’s a fatal flaw in your plan: you don’t have a loan!

Unfortunately, most sellers only accept offers from pre-approved buyers, and that’s not going to happen in the next twenty minutes.  But fortunately, there are steps you can take so you can make sure you get a loan as quickly as possible.  Here they are:

Shop for loans:  Start by visiting a local bank and searching for mortgage providers online.  A mortgage loan officer will give you an accurate estimate of all the closing costs and interest rates so you can be sure you are in the right state to start a mortgage and will prepare you for everything to come.  Keep your credit score in mind, but don’t try to worry about it too much when you’re shopping for loans.  Every inquiry isn’t going to hurt your credit score if you go about your searching in the right ways.  FICO, the Fair Isaac Corporation, will allow you to do all your shopping without making any hole in your credit score.  They do this by giving you a fourteen-day window to shop in; following a strict timeline is key to staying on track with your home-buying process.

Get a pre-qualification letter: During your mortgage shopping, be sure to ask your lender for this letter.  This should be easy to get, and gives a rough estimate of the size of the loan you are qualified to receive. Most lenders will assess your income, debts, and down payment size in order to get an accurate estimate, so be sure to tell them the truth.  Remember, taking out a loan from the same person who gives you a pre-qualification letter is not required.

Get pre-approved: This means that the lenders will verify everything you’ve said to them.  Make sure you have all your documents ready – your identification, social security cards, proof of income, assets and employment – when you come to this step.  That way, you don’t waste any time going back and forth from the lender’s office.  Then a credit report will be pulled, given that you have stable employment and no debt, so that your pre-approval is certified.  If there are complicated factors, like if you own several houses, have had a divorce, or are in a lot of debt, this process will take more time.

Get your loan-approval finalized:  Now you’re ready to make an offer.  This appraisal is official verification that you are eligible and that the market value on the home is reasonable.  Once the appraiser makes his or her inspection and decision, the approval will come within two days.  After this, if the decision is approved and not rejected, you are finally ready to start packing up and moving into your new place!

http://ift.tt/2fyD5gj

Check out the latest from Joe Raquiza! http://ift.tt/2eDAZa7

How to Get a Quick Mortgage

Picture this: you’ve found the perfect real estate, and you’re ready to buy it that moment, but then you realize there’s a fatal flaw in your plan: you don’t have a loan!

Unfortunately, most sellers only accept offers from pre-approved buyers, and that’s not going to happen in the next twenty minutes.  But fortunately, there are steps you can take so you can make sure you get a loan as quickly as possible.  Here they are:

Shop for loans:  Start by visiting a local bank and searching for mortgage providers online.  A mortgage loan officer will give you an accurate estimate of all the closing costs and interest rates so you can be sure you are in the right state to start a mortgage and will prepare you for everything to come.  Keep your credit score in mind, but don’t try to worry about it too much when you’re shopping for loans.  Every inquiry isn’t going to hurt your credit score if you go about your searching in the right ways.  FICO, the Fair Isaac Corporation, will allow you to do all your shopping without making any hole in your credit score.  They do this by giving you a fourteen-day window to shop in; following a strict timeline is key to staying on track with your home-buying process.

Get a pre-qualification letter: During your mortgage shopping, be sure to ask your lender for this letter.  This should be easy to get, and gives a rough estimate of the size of the loan you are qualified to receive. Most lenders will assess your income, debts, and down payment size in order to get an accurate estimate, so be sure to tell them the truth.  Remember, taking out a loan from the same person who gives you a pre-qualification letter is not required.

Get pre-approved: This means that the lenders will verify everything you’ve said to them.  Make sure you have all your documents ready – your identification, social security cards, proof of income, assets and employment – when you come to this step.  That way, you don’t waste any time going back and forth from the lender’s office.  Then a credit report will be pulled, given that you have stable employment and no debt, so that your pre-approval is certified.  If there are complicated factors, like if you own several houses, have had a divorce, or are in a lot of debt, this process will take more time.

Get your loan-approval finalized:  Now you’re ready to make an offer.  This appraisal is official verification that you are eligible and that the market value on the home is reasonable.  Once the appraiser makes his or her inspection and decision, the approval will come within two days.  After this, if the decision is approved and not rejected, you are finally ready to start packing up and moving into your new place!

http://ift.tt/2fyD5gj

Check out the latest from Joe Raquiza! http://ift.tt/2eDDwkB

Essential Mortgage Facts

Many people are blindsided by their mortgage loans’ terminology.  This is the reason millions of people were in debt after the severe housing bust a few years ago.  Yet still, buyers are not aware of everything they should know about financing a home, including the terms used in documentation.

A recent study by Zillow surveyed homeowners about their knowledge on mortgages.  The results revealed that many of these homebuyers did not know the answer to the most simple mortgage questions.  To make sure you know your basics, and do not fall into the rut that the majority of homeowners are in, here are some extremely important facts that you should know about your own mortgage:

Mortgage rates are always rapidly changing: A common misconception is that these mortgage rates are consistently stable – this couldn’t be any farther from the truth.  Just like bonds, stocks, and other financial investments that rise and fall throughout time, mortgage rates are included within a similar market force.  This results in daily change, from afternoon to evening.

APR measures mortgage costs: Along with interest, you must upfront origination fees, closing costs, and other mortgage points you have encountered in order to get an accurate estimate in the cost of your loan.  The APR gives you a better idea about which comparisons to make between lenders.  Remember, APR means “annual percentage rate.”  Costs of a mortgage loan is usually more complicated than people anticipate.

Refinancing is a possibility even if you’re in a financial crisis: Generally, during crises, homeowners find themselves owing more money on their mortgages than their homes were originally worth.  This often leads to finding it very difficult to take advantage of interest rates and refinancing their homes.  Fortunately, through the Home Affordable Refinance Program, many people have successfully found ways to refinance their mortgages and profit financially even when times are rough.  Of course, this varies on the situation, but always know that refinancing is an option.

Different lenders charge various rates and fees: This means you should do some lender shopping before letting someone handle your mortgage loans.  It’s important to note that there is no federal regulation that requires lenders to offer the same rates on mortgages, you should be aware of price tags and chargers, especially if they seem out of the ballpark.

Keep in mind that low-down-payment loans are available: Most people struggle when it comes to putting twenty percent toward a down payment, but certain loan programs are there to help you get financing with little to no money down.  If you ever find yourself in a tight-budget situation when it comes to down-payments, know that low-down-payment loans are there to help you.

Most importantly, for any homebuyer to be knowledgeable about their own mortgage, you must keep your eyes open and your ears peeled.  Being aware is vital, and knowing these five facts will help you understand many of the simple things that homebuyers don’t usually pay attention to.

http://ift.tt/2eXu9NF

Check out the latest from Joe Raquiza! http://ift.tt/2eVqhx3