First Time Buyer Guide: Know exactly

By Ruby Frazier

FIRST TIME BUYER GUIDE:

KNOW EXACTLY WHAT TO ASK FOR FROM YOUR MORTGAGE LENDERS

About 65% of American homes are owned via a mortgage, so you are certainly not alone if you are considering one. However, being your first time, you might find the numerous options for borrowers offered by financial institutions uneasy to navigate. This article is here to provide you some guidance on the top questions to ask your mortgage lender when shopping for a mortgage.

• IS THE INTEREST RATE FIXED OR VARIABLE?

One of the first questions to ask your lender is the nature of the interest rate. When it is a fixed rate, it would be a lump sum that will remain constant throughout your loan. The variable rate - its name suggests - follows market changes. Research has shown that, in the long run, variable rates can be a better pick. For instance, the prices of homes in highbrow cities generally fell as an economic effect of the pandemic last year. A variable-rate would have reflected that in lower payments. Nonetheless, if you have a stable income and the location is projected to experience a boom in prices - fixed interest rates might be just the cut.

• WHAT KINDS OF MORTGAGE

LOANS DO YOU OFFER A

PERSON BUYING A HOME?

There are many types of loan products and even down payment assistance programs available. The different mortgage lenders offer varying types of loan products. These home loans can differ in the amount that is offered to you, the interest rate, the types of payments, the length of the terms. Some popular home loans include FHA mortgages, veterans affairs mortgages, jumbo loans, etc. Just be sure to get clarity from your lender so you can know what you are seeking.

• ASK IF THERE ARE

ADDITIONAL COSTS

A mortgage usually has hidden costs -additional costs which you must take into account before signing an offer. These fees are not included in the credit amount and are payable once funds are released. One of such is the warranty fees. This guarantee (bond or mortgage) required by the financial institution protects it if the borrower fails to pay loan maturities.

• WHAT ARE THE CONDITIONS

OF THE CONTRACT?

In a loan offer, there are clauses that you have to negotiate with a lender.

The early repayment clause offers the opportunity to repay all or part of the loan before its term.

The maturity adjustment clause makes it possible to increase the monthly payments to repay your credit more quickly; hence you can reduce its total cost. It is also possible to reduce the monthly payments to a limited extent. That will result in extending the credit with additional costs for the borrower.

The loan transfer clause allows you to keep your current credit rate on the new loan. Also, if the loan guarantee is attached to a surety organization, it will be possible to transfer it to the new credit. In the event of a rise in rates, this is an excellent opportunity!

The deferred repayment clause: this option allows you to defer the repayment of its maturities several months after the release of funds. That is ideal when you are buying a new home or embarking on a moneyconsuming renovation.

The suspension of maturity clause: this option offers you the possibility of suspending repayments for a few months -with a maximum of 12 months - over the term of a loan. Deferred maturities are carried over to the end of the loan, with additional fees.

• HOW LONG WILL THE

CLOSING TAKE?

Missing a closing date can put your entire purchase at risk. Ask your lender what you can do (perhaps submitting certain documents on time) to avoid the unexpected. Also, ask if your lender guarantees closings on time. Some financial institutions will pay borrowers a fee if they cannot close within a certain period, as long as the bank is the cause of the delay.

• WHAT ARE THE CLOSING

COSTS?

These costs comprise issuance expenses, title insurance, appraisal fees, credit report fees, prepaid property taxes, homeowners insurance, and other items. Get an accurate quote so you can plan the amount you will need to finalize the loan.

References

https://www.quickenloans.com/learn/ questions-to-ask-your-lender https://www.nerdwallet.com/article/ mortgages/mortgage-questions-andanswer https://bettermoneyhabits. bankofamerica.com/en/homeownership/10-questions-to-askmortgage-lender

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fortune.com

MEET ROBERT REFFKIN

It is now official. Compass inc. his company going public, Reffkin House as a fellow. Soon after, is now public and there is an may soon enter the not-so-long Reffkin joined Goldman Sachs incredible story behind the roster of black billionaires in the before co-launching Compass. company, but more so about the US. young founder, Robert Reffkin.

From the Whitehouse to Lazard His rise to the helm of influence and McKinsey and then to and power has been somewhat

Goldman Sachs, this young a quick one! But much of his talented man has rubbed success can be attributed to his shoulders with who’s who in upbringing. the country to become a very Robert grew up in Berkeley, CA influential personality, especially with a single mom, and before in the real estate industry. With long, he was already at the White He was an only child and was raised by a single mother who by the way is a real estate agent for Compass. After his company went public, Reffkin had this to say, “I started Compass because of my mom, Ruth, a single mom who embodies the entrepreneurial spirit.”

Reffkin lives in New York City with his wife

Benis Reffkin who is a business and life coach. In a LinkedIn post, Reffkin praised his wife saying that she was the most important person in his life. “my best friend, my partner, my wife, and the mother of our three children, Benís. I’m thankful to be part of her narrative and to be able to share her story — one that

I hope makes you and your family see that anything is possible and that we can all change our stars.”

Apart from being charming, and loving, Robert has been a founder before!

Robert started his first business when he was only 15 years old. The business, a DJ Company was mostly funded by his Mitzvah and the savings he’d got from babysitting. At the time, he heavily invested on hightech gadgets that helped him mix CDs, guaranteeing that he could mix up to 50 songs his clients requested. The company was called Rude Boy Productions and by the time he was graduating from high school, he’d already made more than $100,000. According to Reffkin, the experience was in a large part influenced by his teenage involvement with the Network for Teaching Entrepreneurship. “NFTE taught me that if you set a dream, you can realize it,” Reffkin says. “And if someone were to tell me no — which my mom did initially — it’s more a reflection of their fear than my ability.”

That resilience has paid off! Not once but in so many areas of his life. It has helped him navigate the finance world and found two philanthropic educational groups even before starting Compass.

Reffkin co-founded Compass and became the CEO of the company. Basically, Compass revolutionized the industry by developing software that both speeds up and simplifies the home buying process.

The company develops software to be used by both buyers and sellers. The program provides details about the houses that are moving on the market and what industry trends might affect the price, the interest rates, and possible fluctuations that might occur. The company has been hailed as the “Pinterest of real estate” due to its user-friendliness as users can comfortably create a collection of photo galleries on intriguing

mylalifestyle.com

properties, share the photos with family and friends.

Robert now celebrates collaborating with programmers, designers, and many agents all across the country. Through his social events, Reffkin builds inclusive workspaces and networks such as the Women of Compass that have philanthropic programs.

According to Reffkin, his agents should help clients not only find their dream homes, but also the ideal community. “A place where they can feel valued and safe and have a sense of belonging,” he says. “What inspires me the most about Compass and our mission is that we’re helping people find their place in the world.”

The company’s product was designed with the mindset of a local, friendly shop, and with that, it rose up the ranks becoming a strong competitor of momand-pop offices and real estate heavy-hitters alike. Three years after its inception, Compass was named Mid-Sized Business of the Year by the Manhattan Chamber of Commerce. Apart from that, the company has been honored with the Business School’s Distinguished Early Achievement Award. Reffkin himself has appeared on Crain’s and Fortune 40 under 40 lists.

In just over 5 years, Compass has grown from just a single office in New York into a billion-dollar enterprise with offices all over the country.

The Guy Can Run!

Reffkin’s generosity is beyond all measures. Aside from founding two philanthropic organizations, he has found a hobby in running to help others. One of his primary philanthropic activities has been to run a marathon in each of the 50 states to raise $1 million for youth education and enrichment programs.

REAL ESTATE WAS NOT HIS FORTE

While he may have created one of the disruptive technologies in real estate, sources indicate that he had less knowledge about the operations of the industry. In fact, his knowledge of the industry was rudimentary and he actually didn’t know the difference between a co-op and an apartment. But that was his motivation, his driving force. Doing things that made him step out of his comfort zone.

His confidence is overwhelming. One person actually said that Reffkin lacked experience in almost everything he did. His former boss, Cohn actually said that Reffkin has an “aura of confidence.” Sources close to the man say that he might someday run for public offices, such as the mayor of New York City.

HIS PHILOSOPHY IN LIFE

His definition of success is not a financial bottom line. It is more than that. According to him, real success comes from a rewarding work environment and a strong mission to change lives. He says that people are motivated by meaning; “I believe Compass will help more people realize their dreams than any other company on Earth,” he says. Talking to him for just a few minutes you will see his sincerity. His big dreams along with his powerful conviction in the power of a community. All of this encompasses his personality and they have been with him since childhood.

Data Sources

https://www.college.columbia.edu/cct/issue/summer17/ article/%E2%80%9C-journey-was-exciting-part%E2%80%9D https://africa.businessinsider.com/tech-insider/6-importantthings-everyone-should-know-about-robert-reffkin-who-left-asuccessful/rpqf7k4 https://www.crunchbase.com/person/robert-reffkin