AUGUST 2019 Vol. 06 | Issue 8
What do the new tax reforms mean?
The credit score you need for a mortgage
DONNELL T. WILLIAMS President of NAREB
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Eric Lawrence Frazier MBA Editor in Chief (800) 401-8994 Ext. 703 Kim Collier Daniels Mungai (800) 401-8994 ext. 712 daniels.george@thepowerisnow.com Goldy Ponce Arratia Graphic Artist and Design Manager (800) 401-8994 ext. 711 goldy.ponce@thepowerisnow.com
CONTRIBUTORS The Power Is Now Research Team
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The Power Is Now Magazine | August 2019
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CONTENTS
the power is now
magazine
12. Consumers continue to overestimate mortgage requirements 18. For the first time in 14 months home prices accelerate creating tension for the homeowners 22. H.R. 3614 the restricting use of credit checks for employment decisions act 26. The new tax reforms might be good but a nightmare to the future economy 32. Donnell T. Williams, president of NAREB 38. This is the credit score you typically need to take out a mortgage
Make your clients’ next home purchase a “gimme”. Your clients can get pre-approved prior to contract, and then close in as little as 14 days. At First Bank, you’ll experience exceptional service. In fact, in a recent survey of clients, 96% reported that they would recommend First Bank Mortgage to a friend or family member. And unlike the pros who will be in town for the championship, your clients won’t be feeling the pressure of making a three-foot putt! If you know anyone who is looking for personal and professional service, I would be grateful for the referral.
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FROM THE
EDITOR
D
ear esteemed readers:
Last week, we celebrated the 72nd Annual NAREB Convention that took place on July 29th to August 1st in Atlantic City NJ. If you missed it, honestly; you missed a lot. However, I will try as much as possible to get you all the nitty-gritty details of what went down during those three days. In case you are not fully acquainted with what NAREB is, check this blog. First, I would like to thank the leadership of NAREB and the people that made the event possible, because we as the black community in the United States, need to be educated, in all matters to do with our economy. Our statistics are alarming with homeownership now standing at 41-42% almost what it was 5 decades ago and so, it is through forums like this that I believe we can start empowering our people again and I want to congratulate President Hicks and his teams for the work they are doing. This year’s annual conference was symbolic in that the first ever NAREB’s convention took place on July 19-20, 1948 in Atlantic City, New Jersey. At the time of the first NAREB’s convention, the “Separate but Equal” law had had a raw grip on the land since its passage in 1896, 20 years before the signing of the Fair Housing Act of 1968. History books tell us that this was a moment of resounding joy, unmatched excellence, and a
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steadily growing economy. A moment marked by synergy and where, without fear of contradiction, men and women matched from across the country into one gathering to voice out their view and stand against inequality and injustices. When they did, they took action against tyrannies and demagogues. This was a moment that I can only imagine our people were getting what they, for decades had been denied. Looking back, I can only smile because it is a blessing that 72 years later, realtists, realtors, professionals, economists are still following the same spirit; assembling together to continue sharing solutions on eliminating barriers that would seal the persistent homeowner gap and wealth disparity in America. What truly inspires me is seeing all these different organizations harnessing the resources at their disposal, no matter how little they are to educate and guide people towards the right path. Four years, the then NAREB’s President Ron Cooper started a great campaign to increase homeownership of the African Americans. The goal of the campaign was to put 2 million African Americans into homes within the next 5 years. This year’s convention addressed that issue and so far, we have made huge progress. President Hicks has focused his efforts in collaborating with corporate partners, government agencies, colleges, universities and faith-based organizations in seeing the fulfillment of this American dream. Spearheading this campaign
The Power Is Now Magazine | August 2019
will be Donnell Williams the 31st president of NAREB. I am confident that NAREB will continue with its mission to expand collaborations across the floor and to focus more on specific economic segments that will ultimately result in more wealth for the black people. In addition, the Congressional Black Caucus Annual Legislative Conference is just around the corner. The CBCF is an America that conducts research on issues that affect the Black Americans and each year; it publishes a report on some key legislation, and some issues forums, leadership seminars and scholarships. The conference will take place from September 11-15 at the Walter Washington Center. Also happening this September is the 2019 NAHREP National Convention. And later in October, the Areaa National Convention. Click here to read more about these events. I feel like these two months will be very busy months full of events and like most people; I am quite torn between which to attend and which to leave. But it will be my pleasure to attend all. I am a champion for knowledge, and if I learn, I really try as much as I can not to let that moment pass. What do you know about your mortgage application requirements? This year, Fannie Mae released a report based on a survey where they found out that most people know so little about mortgage application and I think that is one of the major reason homeownership has declined. I feel we need to populate the internet with tons
and tons of materials that encourages people to take out mortgage because people are afraid, not to take out the mortgage, but afraid of the process involved. Over the next few months, I will share a series on the same and you can reach me to share your experience with your application. Also, we will cover in details the credit score that you typically need to take out your mortgage, a very interesting article and some reforms on tax and major legislations that have happened so far. I want to encourage my team here at The Power Is Now and all the OC Realtist members to attend these events. Even as NAREB and other organizations flex their muscles to see exemplary excellence for our community, I’d like to ask everyone to take part in this transformation. Honestly, it is when we work together that will truly eliminate the gap in wealth for our community. As the Founder of The Power Is Now and a member of NAREB Orange County, I am committed to doing my part as a real estate and mortgage broker. I am conducting educational seminars online and working with various faith-based organizations in Orange County to empower African American borrowers with information and loan programs that can help them buy a home.
Eric Lawrence Frazier, MBA CEO The Power Is Now Inc.
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[FEATURED ARTICLE]
CONSUMERS CONTINUE TO OVERESTIMATE
MORTGAGE REQUIREMENTS C
ould it be that the low mortgage uptake is as a result of lack of education and fear from on the consumer’s part about the whole mortgage application process? Could it be that consumers are actually intimidated by the whole process? These are some of the questions that we’ll be trying to answer. Lenders have an opportunity to help close the deepening knowledge gap. According to a 2018 study by Fannie Mae’s Economic and Strategic Research team, consumers broadly lack an understanding of the basis thresholds to qualify for a mortgage, including down payment, debt-to-income ration and credit score requirements. In an older survey carried out back in 2011, the Wall Street Journal wrote about a consumer survey related to the home-buying process and they asked the respondents what the hardest part of buying a home was. As you can imagine, a good number of people said that understanding the mortgage process was the hard part. It is a problem for many. Honestly, industry players, lenders specifically, have failed to educate consumers about the mortgage application process. In fact, many respondents cited confusion over the loan process as one of the top-three complaints among the respondents. We are in 2019 now and still, consumers are still not sure about the mortgage process. This is where we come in. To put it into perspective, The Power Is Now first priority is to you as the consumer. Our mission is to
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make sure that you have all the information you need to make a financially sound decision when buying a home. This applies to home loans as well. We are partnered with First Bank to make sure that you get the best deals in the market, because believe it or not, the market is changing rapidly, and you want to be on the safe side. This is a series that we are doing trying to get into the root of this problem, uncovering it so that by the end of it, you will be very confident when shopping for your home and home loans. I will also provide some useful external link with additional information.
Consumers are still Afraid of the Mortgage Process Fannie Mae’s research was conducted using a nationally representative sample of over 3000 respondents. The report notes that despite the increased exposure to credit scores and other sources of information, including but not limited to online information, consumers understanding of what it takes to qualify for a mortgage has not yet improved since 2015. However, consumer confidence about the mortgage process in the same time frame has grown exponentially. One of the reasons why I think consumers knowledge and understanding about the mortgage process is that we have subjected a good number of applicants to super-strict underwriting standards, that they have to have record-high credit scores and hard-
The Power Is Now Magazine | August 2019
wired debt to income ratios. With such an environment, why would anyone bother with learning about the mortgage? I think the environment where the mortgage underwriting process works under is a little over the board. That scares consumers and consequentially, mortgage applications have gone down. More and more organization have realized the trend in mortgage consumption behavior and they have investigated it and found it to be true that consumers nowadays think mortgage application is a ma jor hassle. Freedandclear. com and Nerdwallet also conducted their research into the subject back in 2017 where Nerdwallet polled about 2,241 people. The results were perplexing since 42 percent of the polled people said that they found mortgage experience ‘stressful’ while 32 percent said that it was “complicated.” It gets even worse than that, 49 percent said that they regret how they handled the whole process, while some applicants, mostly the millennials and Gen X-ers felt that they didn’t end up with the interest rates they had hoped for.
I can’t help but think that maybe as lenders we have created awesome programs, very attractive and appealing but they have remained shelved, or, we are not doing so much to get these programs out there. Or maybe, it could be that consumers are just not interested in what we have to offer, after all in their mind, ‘the process is complicated.’ So many lenders have absolutely amazing mortgage programs, for instance, The Power Is Now and First Bank offers mortgage program where you are just required to pay as low as 5% down payment as well as other affordable programs, but not many people are aware of this. Here’s the data from Fannie Mae’s Research;
The Fannie Mae report notes that more consumers reported to have accessed their credit score recently, unfortunately, close to half cannot recall what it was. We have to accept the role of technology in our lives and consumers have also taken up the challenge and are now more involved with online sources of mortgage information, nonetheless, they still overestimate the minimum credit score necessary to qualify for mortgage, or they overestimate the minimum down payment necessary to qualify for mortgage or they remain unfamiliar with low down payment programs. Interestingly, groups that you’d think are familiar with the process, such as the homeowners, the people who say they are actively planning to become homeowners in the next few years or the people that have demonstrated financial literacy are still in the dark when it comes to mortgage requirements.
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What does this mean for lenders? You don’t have to look too far for this, simply current sources of mortgage information and education are by far insufficient. How do I know this? Normally, you’d expect that the people actively looking to get into homes have a wide knowledge base of the process, but as it stands out, they have zero or little confidence in the process. That just shows how clueless most people are. In addition to that, the report also notes that most Americans have access to their credit scores, but they don’t know what to do with this information. Most Americans are confident in building and maintaining credit scores, however, monitoring a credit score, not as the same as understanding how the scores impact their financial situation. Lastly, most consumers have the wrong idea of what the mortgage process really entails and that alone is holding most buyers back. The fact is, most people want to get into homes, however, as much as they’d qualify for a mortgage, they assume that the homeownership process is a complicated process. It is far from possible. Thus, a good number avoid any further research or preparations.
Consumers have lost interest in the system Let’s go back to the survey by Nerdwallet. The survey notes that one of every six people said that their application had been rejected. 52 percent of these said that the lenders claimed that their debt-to-income ratios didn’t meet current standards and 39 percent had been told that their scores weren’t good enough for the loan program that they were trying to get. 31 percent of the applicants rejected said that they were utterly surprised by the lender’s decision. I think the problem is deep-seated within the system and when a consumer is exposed enough to it, they just lose the interest. 41 percent of the respondents said that they found the process ‘manageable.’ To most consumers, the mortgage process is a painful process and they rather avoid it than to face it.
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in fact, 75 percent of the borrowers surveyed by freeandclear said that it is ‘unpleasant but necessary’ activity. According to the Freeandclear survey, excessive paperwork in the mortgage application process was the most overwhelming aspect of the process. “Although all the mortgage documents are intended to serve a specific purpose, usually legal or regulatory, the sheer amount of paperwork creates significant difficulties.” Other than that, the second hassle consumers noted is the strict qualification requirements for a loan.
Are tougher measures really necessary? No matter the harsh consumer sentiments, stringent measures had to be taken to govern the mortgage market in the wake of the 2008 financial crisis. Between 2004 and 2006, the mortgage application process was so easy, all you needed was to be able to fog a mirror. No down payment was really necessary, the credit requirements had no implications, verification of income was not necessary, however, all this deregulation of the industry culminated in hundreds of billions of dollars in losses for the lenders and millions of Americans losing their homes to foreclosures. The ripple effects are still transverse in today’s market. I think tougher rules are necessary to avoid the reoccurrence of such a crisis.
So, can consumers be helped? Tough measures or not, these have nothing to do with consumer education. Like I said before, most lenders have beautiful mortgage programs but the information is not out there. I think that more effective mortgage education should be emphasized in a more timely, convenient and simple way. Lenders should customize their information to fit different consumer profiles and then delivered at the right time. Buyers are actively looking to be ascertained whether to buy or not, how much
The Power Is Now Magazine | August 2019
money they should save, what they can afford, the mortgage programs available, if lenders can provide this information, I think there could be a real impact. I would also recommend lenders understand that they are dealing with human beings. I think society is slowly programming us to believe that everything now is ‘digital’ and so you will find that the personal connection between lenders and borrowers has been lost. At the end of the day, we have to remember that these consumers need to connect with the lenders themselves, so I think mobile and online resources are not enough and sufficient to guide consumers through the complexities of the mortgage application process. The Power Is Now strives to bring you the latest developments in real estate economics, mortgage lending, and the market. We are committed to making sure that you are updated with what’s happening around you and to be your resource acquisitions and sells. We are partnered with great agents across the country and with First Bank to provide the products and programs that First Time Homebuyers need to buy a home or income property now because tomorrow it will be even more difficult. Go to www.applytobuynow.com and get started today. The Power to buy is now! Eric Lawrence Frazier MBA Vice President and Mortgage Advisor of First Bank NMLS 461807 President and CEO of The Power Is Now Inc. CalDRE 01143484 www.thepowerisnow.com
Works Cited Consumers Continue to Overestimate Mortgage Requirements Lenders Have an Opportunity to Help Close the Knowledge Gap. 2019. Harney, Kenneth R. “Many Borrowers Say the Mortgage Process Is a Ma jor Pain.” The Washington Post, 28 Feb. 2017. “The Mortgage Process Doesn’t Have to Be Confusing.” Homebuyinginstitute.Com, 2019. “What Do Consumers Want Out of the Mortgage Process? Everything.” Elliemae.Com, 2019.
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NMLS 551928
First Bank Legacy For over four generations, First Bank has enjoyed a legacy of strength, agility, and long-term perspective. Since 1910, we have remained dedicated to serving the communities in which we operate with an unwavering commitment. This commitment began over 100 years ago in a small, rural community in St. Louis to help local clients reach their financial goals. And, although First Bank has grown to be one of the largest family-owned banks in the country, the steadfast commitment to serving our clients—and treating them like family—still remains the same. From Main Street America to large-scale metropolitan areas, First Bank continues to be a vital part of the communities in which we serve. At First Bank, you’ll find the products and offerings typically only found with larger, publicly held financial institutions. Quite simply, we’re big enough to provide the products and services you need, but small enough to provide caring, personal service. At First Bank, our clients become part of the family.
1910
William Dierberg, Sr.,
President, Creve Coeur Farmer’s Bank
1945
William Dierberg, Jr.,
President, Creve Coeur Farmer’s Bank
1966
James Dierberg,
President, Creve Coeur Farmer’s Bank
2016
Michael Dierberg, Chairman, First Bank
1973 Creve Coeur Bank becomes First Missouri Bank
Missouri Bank 1986 First becomes First Bank
1974
First Acquisition: Hermann, MO
1995 First Bank expands into California
1983
Expansion into Illinois
century of treating 2010 Aclients like family
[POWER GREEN]
For the First Time in 14 months Home Prices Accelerates Creating Tension for the Homeowners
F
or the first time in ten years, the market showed all signs of softening. Real estate experts and economists continue to have a positive outlook for the U.S economy, predicting a stronger capital market, and real estate through 2021. Earlier predictions would have buffeted the economy due to the trade disputes, increased tariffs, stock market volatility, and reduced global growth prospects. However, these barriers have had little to no impact on the medium-term economic and real estate market expectations. Researchers at realtor.com revised their yearly outlook, revising up the price growth and overall sales predictions as lower-thanexpected interest rates making homeownership more affordable. The U.S home prices are now expected to rise by nearly 3%, an increase from the previous forecast of 2.2%. The overall sales are predicted to flatline in 2019 as compared to 2018, declining only 0.3% by the end of the year. “The 2019 housing market is different than what we predicted in fall 2018, primarily due to an unexpected drop in mortgage rates in January 2019,” said Danielle Hale, Realtor.com’s chief economist. CoreLogic’s HPI Forecast for May 2019 shows home prices have risen both years over year and month over month. The price has increased nationally by 3.6% from May 2018. Month over month, the prices have increased by 0.9%. We have seen some moderation in the market for several months, however, the HPI forecast predicts a 5.6% rise from May 2019 to May
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2020. On a month to month basis, the prices are expected to rise by 0.8% from May 2019 to June 2019, bringing single-family home prices to an all-time high. “Interest rates on fixed-rate mortgages fell by nearly one percentage point between November 2018 and this May,” said Dr. Frank Nothaft, chief economist at CoreLogic. “This has been a shot-in-the-arm for home sales. Sales gained momentum in May and annual home-price growth accelerated for the first time since March 2018.” A separate survey of 100 real estate economists in March found that there was an improved outlook for the real estate market in 2019. Experts predicted a rise to an average of 4.3% through 2019, which is an increase from the average 3.8% forecasted during Q4 of 2018. “The downturn in mortgage rates since our previous survey appears to have elevated price expectations for 2019,” said Terry Loebs, founder of Pulsenomics, which conducts the Zillow survey each quarter. According to the CoreLogic Market Condition Indicators (MCI), housing stock forms the main basis for the analysis of housing values in the country’s 100 largest metros, 38% of the metros have an overvalued housing market as of May 2019. Even though the labor market is doing well, most Americans are eager to get into a home, the demand rises up and so does the price for homes, however, wages do not follow suit, therefore, buyers remain priced out. What CoreLogic is saying is that homes in these metro areas are priced at least 10% higher than
The Power Is Now Magazine | August 2019
the long-term standards, and the local incomes are not expected to support the prices. “Lower affordability means it is harder for people to get on the track of building home equity. This can have long term negative effects on wealth building,” says Mark Chin, CEO of Keller Williams Tribeca. “Since credit is loosening again (partial-doc loans are back), this could create a credit crisis as purchasers stretch beyond their comfortable limit to purchase homes. In an economic downturn, this can be disastrous (as it was in the Great Recession).” CoreLogic MCI analysis categorizes home prices in individual markets as undervalued, at value, or overvalued, by comparing home prices to their long-run, sustainable levels supported by the local market fundamentals. As of May 2019, 24% of the top 100 metropolitan areas were undervalued, while 38% were at value. Mortgage rates rose steadily in November, to almost 5% and this put most buyers out of the market at the end of 2018. This further fueled
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predictions of a broad cooldown in the housing market. However, the Fed took on a different course in its monetary policy tightening it at the start of this year, and maintaining that it would hold the interest rates steady. The change in monetary policy brought interest rates down to 4% providing buyers with more room in their budgets. Initially, realtor.com expected the rates to average at about 5.5% in 2019 but has now revised the rates to 4.5%. “This will create a slightly hotter, but still cooling housing market relative to the initial forecast five months ago,” Ms. Hale wrote. During Q1 of 2019, CoreLogic conducted research measuring the consumer-housing sentiment in high-priced markets. Given the sharp rise in home prices in these areas, 28% of homeowners were concerned about their ability to afford replacement homes. 40% of the homeowners said that they were comfortable moving outside of their current market to afford another home.
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“The recent and forecasted acceleration in home prices is a good and bad thing at the same time,” said Frank Martell, president, and CEO of CoreLogic. “Higher prices and a lack of affordable homes are two of the most challenging issues in housing today, and every buyer, seller and industry participant is being impacted. The long-term solution lies in expanding supply, which will require aggressive and effective collaboration between policymakers, state and local government entities and home builders.” I remain optimistic about the market and the housing prospects for the rest of 2019. Even if the economy destabilizes and the wages slow, it is likely that the market is primed for a rebound. One reason for this is the continued influx of millennials who reaching the age of buying homes. This will put demand pressure for some years to come. So, going by this, I think the long-term trends are good. Economists since 2016 have predicted a recession and even if it hits, the housing sector will be impacted, but not devasted, as compared to the 2008 recession. However, even though there is some relief for the market, I wouldn’t get too comfortable. I think after the long post-recession retro; it was only fair to give it a break. However, the break is only short term. What we can hope for is an added inventory, one that people can actually afford. Here at The Power Is Now we continue to bring you the latest developments in the real estate market. We are committed to making sure that you are updated with what’s happening around you. We have partnered with First Bank to provide the products and programs that First Time Homebuyers need to buy a home now because tomorrow it will be even more difficult. Go to www.neverrentagain.com and get started today.
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Eric Lawrence Frazier MBA Vice President and Mortgage Advisor of First Bank NMLS 461807 President and CEO of The Power Is Now Inc. www.thepowerisnow.com
Works Cited Conerly, Bill. “Housing Will Weaken Further In 2019 And 2020.” Forbes, 20 Apr. 2019. “CoreLogic Reports May Home Prices Increased by 3.6% Year Over Year.” Corelogic.Com, 2019. Desjardins, Jeff. “Map: Where Real Estate Prices Are Rising Fastest.” Visual Capitalist, 12 Mar. 2019. Maher, William. “Real Estate Economists Forecast Slower Growth and Returns in 2021 - Urban Land Magazine.” Urban Land Magazine, 3 June 2019. Redfin. “Redfin Report: May Home Prices Up 3.6% in May, the Largest Year-Over-Year Increase in 7 Months.” Prnewswire.Com, 20 June 2019. Sherman, Erik. “A Ma jority of Economists Think the Next Recession Will Come by the 2020 Election.” Fortune, Fortune, 4 June 2019. Strum, Beckie. “Economists Give U.S. Housing Market Rosier Forecast.” Mansionglobal.Com, Mansion Global, 23 Apr. 2019. “What It Means to Be in an Overvalued Housing Market | House Method.” Housemethod.Com, 2018.
The Power Is Now Magazine | August 2019
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[POWER YOU]
H.R. 3614 The Restricting Use of Credit Checks
for Employment Decisions Act T
he credit system in the country almost impacts every American live. Certainly, with the way the credit “monopoly” in the country is running things, many have experienced a mix of financial and emotional distress mainly resulting from erroneous information on their consumer credit reports. In the recent past, there has been an emergency of headlines making their way into news outlets about how certain people cannot refinance their mortgage. I’m thinking, how about the people who their stories cannot make it to the news 22
outlets? The fact is, most people are suffering but in silence. While most stories do not disclose the exact reasons, I’m quite sure that being a parent you must be worried for your kids because I am, the future of our kids hangs in the balance if we do not do something to restore sanity in the credit system. Our country’s credit and reporting system is not fair. And it doesn’t make sense. One of the reasons I strongly support what Congresswoman Maxine Waters is doing. Let’s do a quick exercise; The Power Is Now Magazine | August 2019
• Do you know what a credit score is? • Do you know what factors weigh your credit score? • Do you know how the credit score is arrived at? • Do you know what to do if you find erroneous information on your report? If you are honest enough, probably you only got the first question or none. That’s the situation with most people. We have been blindly following something that we completely know nothing about. The result, American people have wasted a lot of opportunities and resources in the hands of the demagogues of economic opportunists, and the people who suffer the most are the minorities. H.R. 3614 The Restricting Use of Credit Checks for Employment Decision Act is a bill that was proposed by Rep. AI Lawson in a bid to ban the use of credit information for most employment decisions, except when required by the law of for National Security Clearance. Over the past few years, restrictions with regards to the use of credit checks by the employers have been passed in various states and municipal levels and the central government has now indicated its interests and concerns of potential discriminatory impact of the use of these credit checks. I have never found the essence of asking job candidates about their financial background and I am very happy with this bill because it also prohibits managers from asking questions about the applicant’s financial position in the past or the credit history on job applications. While the opponents of bill argue that the information on financial status of a person is a good indicator of a person’s judgment and potential risk to the organization especially in certain position that involves finances www.thepinmagazine.com
and accounting, the bill’s proponents say that hiring managers probing into people’s financial situation blocks upward mobility, disproportionately affects the minority job seekers and can be an invasion of privacy.
Checking people’s financial background harms workers Conducting a background check on every candidate is an essential part of the selection process. I am a manager and I do background checks on my employees and the reason for this is that it is the most accurate way to verify the credentials of the candidate. More to that, a background check is a way to allow hiring managers to learn about any less than the desirable information that most of the candidates are reluctant to share in their resumes. However, most hiring managers take the process too far, and it now becomes like an investigation rather than a simple background check and I think that is what The Restricting Use of Credit Checks for Employment Decisions Act is trying to resolve. I don’t see this bill as a single entity but as a multi-bill overhaul of the credit reporting industry lead by Maxine Waters. In a statement, Waters said that she had been very concerned with the credit system in the country especially the way the credit checks are done for employment purposes because in most cases, you will find very qualified candidates not getting the job because of the inaccuracy in reporting or due to financial hardship from years ago. “…An individual’s credit history has been shown not to predict their job performance,” she said. “Nevertheless, credit information is increasingly used by employers. People who have been unemployed for an extended period of time, and whose credit standing has been damaged because they 23
“The growing use of credit checks, therefore, may disproportionately screen otherwise qualified racial and ethnic minorities out of jobs, leading to discriminatory hiring practices,” Waters said. The Power Is Now strives to bring you the latest developments in real estate economics, mortgage lending, and the market. We are committed to making sure that you are updated with what’s happening around you and to be your resource acquisitions and sells. We are partnered with great agents across the country and with First Bank to provide the products and programs that First Time Homebuyers need to buy a home or income property now because tomorrow it will be even more difficult. Go to www.applytobuynow.com and get started today. The Power to buy is now! were unable to pay their bills, cannot secure a new job to end their financial distress because prospective employers conduct credit checks as part of an application process.” The requirement by employers to conduct a background financial check is absurd. Workers who lose their jobs are very likely to fall behind in their bills because of the lack of incomes. Now imagine a scenario where a credit report is used against them, obviously, they will not get any job and they end up being shut out of the job market because they are behind on their bills which leads to a financial distress- a spiral effect where the impact of unemployment weighs heavily on their debts and thus, it becomes harder for them to get a job. I think the credit system in our country has missed the very essence why the credit scores were developed which is to predict the likelihood of a person missing a loan payment and not whether the person will steal from the workplace. Democrats on the committee cited data that clearly showed how the credit checks in the hiring process can be discriminatory against people of color and Latino job applicants. There are numerous studies confirming that black ad Latino households tend, on average, to have lower credit scores than the whites. 24
Eric Lawrence Frazier MBA Vice President and Mortgage Advisor of First Bank NMLS 461807 President and CEO of The Power Is Now Inc. CalDRE 01143484 www.thepowerisnow.com
Works Cited “Committee Democrats Work to Reform Broken Credit Reporting System.” Financial Services Committee, 11 July 2019. “How to Perform a Background Check of a Job Candidate.” Cleverism, 19 Feb. 2018. “Overhauling Our Nation’s Broken Consumer Reporting System | Financial Services Committee.” House.Gov, 2016. “Using Credit Histories in Employment Decisions: An Overview of Divergent State & Local Requirements | Employment Law Lookout.” Employment Law Lookout, 12 June 2018.
The Power Is Now Magazine | August 2019
Bankrate.com
money.cnn.com
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Eric Lawrence Frazier Vice President & Mortgage Advisor 104 E Ontario Ave Corona, CA 92879 (714) 475-8629 eric.frazier@fbol.com NMLS: 461807
credit.com
[POWER LEGAL]
THE NEW TAX REFORMS MIGHT BE GOOD BUT A NIGHTMARE TO
THE FUTURE ECONOMY O
ver the past year, you have heard it in the news about the new updates to the tax system and some of you this year’s tax season might have been a surprise since you found that they had more to pay in taxes than last year or they received fewer refunds from the Internal Revenue Service (IRS). Like most of you, I have been closely following these reforms because they affect me. The refund check is lower this year than it was last year and it seems the more we progress into the future, the harder it gets, even though some taxpayer report their financial circumstances haven’t changed since filing with the IRS in 2018. In more than 30 years, the Tax Cuts and Jobs Act is the first ma jor change the country has seen. And while the Government argues that many of these new rules are expected to benefit the taxpayer, you’ll agree to the opposite of that. The first tax-filing season pushed the upper middle class (people making between $100,000 - $250,000) to become less likely to receive refunds and more likely to owe money with their returns. According to IRS statistics, this year’s tax filing season in more than one way looked similar to last years in that 79% of the taxpayers got their refunds averaging $2879, slightly down from
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80% an average of $2,908 in 2018. However, if you dig a little deeper, you will find that these figures mask some significant variations by income.
The difference in Income Brackets and Marginal Tax Rates These are just some preliminary tallies and they only provide the first hard data from the government about the actual refunds, deductions and the taxes reported at various levels in the new tax system. The income tax brackets and the marginal tax rates were perhaps one of the most talked about changes in the 2018 tax reform. But the problem is, many taxpayers are still in the dark, they are not sure how the new changes affect them according to Betterment. So, what are Marginal Tax Rates? These are the percentages of your income that you pay in taxes. And it means that your income is not taxed at one rate but at several different rates, depending on your income. Tax refunds reconcile you owe with what you paid throughout the year. They affect how people relate the tax system with their expenditure, but they are totally different from the tax cuts. Under the new law passed in
The Power Is Now Magazine | August 2019
December 2017, about two-thirds of households are eligible for tax cuts. According to the Tax Policy Center, about 6% paid more. The tax cut showed up in the take-home pay, not just in refunds as IRS changed the paycheck withholding tables in early 2018. What most people don’t know about the income brackets and the tax rates is that it is fairly common for tax brackets to change to account for inflation each year, but the marginal tax rates only change when a new tax law is passed. That explains why people were particularly interested in this part of the tax reforms. But the question is, is this a good or a bad thing? It depends on how you feel about Trump’s presidency. However, this year for most, the reform will work in their favor. A lower marginal tax rates meaning you get to pocket more money from your paycheck! If you happen to be one of those people with smaller refunds, you probably noticed that you paid less in taxes thanks to the new law. Let’s get realistic and impartial about these reforms. I still don’t know why the changes to the tax have remained underwater, not even in the public polls. Nobody wants to talk about it, because they are confused about these changes and the effects. An April poll by Gallup found that 14% of Americans thought that the reform meant their taxes went down. Individually, how the reforms have been felt depending on factors such as the filing status, income levels, and deductions, people in the higher spectrum of the income bracket might have paid more in taxes this year. In addition, fresh data show that while the refund status for the low- and middle-income earners didn’t change, real movement occurred as you approached the upper end of the income distribution. The outcry is from the people who owed money at the tax time. The IRS gave partial relief from the penalties that apply to those who underpaid during the year. As a result, fewer people owed penalties, but those who did were hit
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harder. Thus, the IRS has collected 24% more in penalties from 11% fewer returns.
Impact on Standard deductions One other change brought forth by the reform is the fact that the bill has made the standard deduction almost double. The standard deduction is an automatic reduction in what you owe in taxes. Most of you are familiar with the concept that when paying taxes, you have the option of taking the standard deduction or itemizing your deductions. Itemizing option means you calculate your deduction one by one; most people don’t like it because it is a hassle, but it’s worth it if the itemized deductions exceed the amount of the standard deduction. Filling Status Single Married Filling Jointly Married Filling Separately Head of Household
2017 Standard 2018 Standard Deduction Deduction $6,350 $12,000 $12,700
$24,000
$6,350
$12,000
$9,350
$18,000
Looking at the data, it would make it instant to disqualify the itemizing option, the figures above are so attractive, but there’s another piece of the puzzle. The 2018 tax reform got rid of the personal exemptions. In 2017 these were about $4,050 per dependent and per tax filer. Therefore, a couple filing jointly with no dependents who made at least $100,000 received $12,700 in standard deductions and $8,100 in personal exemptions, leaving them with a taxable income of $79,200. In 2018, the same couple will receive a $24,000 standard deduction and no personal exemptions, leaving a taxable income of $24,000.
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In some way, the tax reform simplified this part of the tax process. Evidently, the higher the standard deductions, the higher the chances of eliminating personal exemptions, thus more money for the taxpayer. For the upper-class income households, change to the alternative minimum tax was one of the largest tax cut. This is a parallel tax system that features lower top tax rates and also disallows some deductions including the state and the local taxes. The taxpayers subject to it calculate their liability under the regular system and the AMT and pay whichever is larger. Before the reforms, AMT was the predominant tax system for the households making between $250,000 and $500,000 and it showed up on 80% of returns in the prior year’s mid-May data. Now, it is virtually gone for households making under $1 million. For every 62 AMT payers in 2018, there is one in 2019.
The difference for Homeowners Back in 2017, if you itemized your deductions, IRS would allow you to deduct interest paid on your primary or second residence as long as the original mortgage principle did not exceed $1 million. Under the new reform, the maximum mortgage principle was lowered to $750,000, however, the taxpayers with an existing mortgage in between $1 million and $750, 000 will be under the old deduction. Also, something important to note is that before this year, homeowners were allowed to deduct interest paid on the home equity debt, up to $100,000, the tax reform removed that deduction. The tax reforms are one thing that I personally think the government has got right whether short term or into the foreseeable future. What that Act has done is that it has made progressive income taxes more regressive, meaning lower taxes for everyone, however, the upper class as always gets to enjoy the most. I like the expansion the Act has brought in the
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standard deduction and I am sure 6 million taxpayers are set to benefit from this, that’s about 47.5% of all tax filers. The Joint Committee on Taxation says that the Act will increase growth by 0.7% annually, reducing some of the revenue loss from $1.5 trillion in tax cuts. The U.S. Treasury reported that the Act would bring in $1.8 in revenue and projects economic growth of 2.9% a year on average. However, I think the Treasury overestimates the data because it assumes that the rest of the Trumps plan will be implemented. The tax cuts seem to be working for most people, but I will side with the JCT projections as they only analyze the cost of the tax cuts themselves. Clearly, tax cuts increase the debt and the burden will eventually be on the ordinary taxpayers. The impact of the $21 trillion national debt will eventually be higher forcing the future Congress to extend tax cuts to 2025. The eventuality of what’s happening now will dampen future economic growth. I wouldn’t be happy now because of the tax cut because we are creating a problem now that its consequences will be felt by future generations. This is especially true if the ration of debt to GDP is near 77% according to the world bank. We don’t want to cross that line. The World Bank found that every percentage addition above this level costs the country 1.7% in growth. Before the tax cuts, the U.S. debt-to-GDP ratio was 104%. I imagine the government is trying to implement the same tax strategies applied during the Bush tenure. Supply-side economics hold this theory to be true that tax cuts increase growth. However, the Treasury department analyzed the impacts of the Bush Tax Cuts and found them to work only in the short term. Since the tax rates were not prohibitive, their benefits will not be felt to boost consumerism and economic growth. More so, since these changes occurred during the expansive phase, they will not generate many new jobs. The Act
The Power Is Now Magazine | August 2019
will significantly change personal and corporate taxes with the corporate benefitting more since their cut will be permanent. More burden is to the ordinary taxpayer. Here at The Power Is Now we strive to bring you the latest developments in real estate economics, mortgage lending, and the market. We are committed to making sure that you are updated with what’s happening around you and to be your resource acquisitions and sells. We are partnered with great agents across the country and with First Bank to provide the products and programs that First Time Homebuyers need to buy a home or income property now because tomorrow it will be even more difficult. Go to www.applytobuynow.com and get started today. The Power to buy is now! Eric Lawrence Frazier MBA Vice President and Mortgage Advisor of First Bank NMLS 461807 President and CEO of The Power Is Now Inc. CalDRE 01143484 www.thepowerisnow.com
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Works Cited Amadeo, Kimberly. “The US Debt and How It Got So Big.” The Balance, The Balance, 30 Oct. 2006. “Explaining the Trump Tax Reform Plan.” Investopedia, 2019. https://www.facebook.com/thebalancecom. “Republicans Economic Views and How They Work in the Real World.” The Balance, 2017. Lavietes, Matt. “4 Things You Might Not Know about the New Tax Law.” CNBC, CNBC, 25 Mar. 2019. Accessed 9 July 2019. “Personal Exemption.” Investopedia, 2019. Accessed 9 July 2019. “Tax Reform 2018 Explained - MagnifyMoney.” MagnifyMoney, MagnifyMoney, 10 June 2019. TaxSlayer.com. “Tax Law Changes Affecting Families in 2019 | New Child Tax Credit.” TaxSlayer.Com, 2019. “Your 2019 Taxes: What You Need to Know About the Tax Reform Bill.” Daveramsey.Com, 2019.
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Eric Lawrence Frazier MBA Vice President & Mortgage Advisor Office: (800) 261- 1634 ext. 103 eFax: (314) 264-0211 Cell: (714) 475-8629 NMLS: # 461807 eric.frazier@fbol.com https://www.firstbanks.com/hlc/EricFrazier/Eric-Frazier
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ERIC L. FRAZIER MBA Vice President, Home Loan Advisor First Bank NMLS ID: 461807 o: 619-476-3269 c: 714-475-8629 Eric.Frazier@fbol.com
The California Housing Finance Agency does not discriminate on any prohibited basis in employment or in admission and access to its programs or activities. Not printed at taxpayers’ expense. CalHFA is not a direct lender and uses private mortgage lenders to qualify consumers and make all mortgage loans. Sample loan terms: (Amount: $200,000; Term: 30 years; 4.750% sample interest rate, 5.0439% Annual Percentage Rate (APR) includes lender fees and insurance; Est. monthly payment: $1,043.30 includes principal, interest, taxes and insurance).
Donnell T. Williams
DONNELL T. WILLIAMS Real Estate Broker
D
onnell T. Williams is a record broker and the owner of a prestigious real estate firm, Destiny Realty which is headquartered in Morristown, New Jersey. He serves as the current president of the National Association of Real Estate Broker, NAREB.
Donnell has been actively involved in trade associations especially with NAREB’s efforts to promote a meaningful exchange of ideas about real estate business and how to best serve its clientele. Destiny Realty which he leads is one of the largest African American independently owned real estate brokerage firms in the state of New Jersey.
Leadership and Membership positions Mr. Williams has held several leadership positions which has positioned him as the president of NAREB where he encourages professional development and increased industry knowledge. He has also worked to create an environment that fostered creativity in the workplace as a goal for the NAREB members. Apart from his professional commitment to NAREB, Mr. Williams also holds membership in North Central Jersey Association of Realtors and the New Jersey Association of Realtors. He is a member of the Board of Adjustment for Morris (NJ) Township, and a member of the United States Developers Council. In addition, Mr. Williams is a licensed realtor since 1992 and a licensed broker since 2001, he earned membership in the New Jersey Million Dollar Club (1995-2000). He also holds certification as a residential manager and housing counselor. Currently he serves as a chairman of the Board of the New Jersey Association of Minority Real Estate Professionals.
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Community involvement As a resident of Morris Township, Donnell’s community and civic involvements include active membership as a Deputy Grand Master of the Most worshipful Oriental Grand Lodge, a Member of Morris Community Minority Concerns Advisory Committee and an NAACP Silver Level Lifetime member.
An Agenda for the Millennials After his inauguration as the 31st NAREB president in August 1st in his speech, Donnell set a bold yet targeted an agenda to increase Black Wealth through homeownership with a special focus on reaching the country’s millennials. The 72nd Annual NAREB convention happened just a few days after the U.S Census Bureau released its 2nd quarter 2019 homeownership rates which listed Black Homeownership rate at 40.6%, the lowest in more than 50 years. Which in comparison to the non-Hispanic whites, there was a 30 percent gap. “Bold, energetic and effective action must be taken to stop this unthinkable slippage in Black wealth. Homeownership and investment in real
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estate represent the tools Black Americans in general, and millennials in particular can use to build or rebuild their wealth. My plan to reverse the downward slide is to reach the 1.7 million mortgage-ready Black millennials who make over $100,000 annually, but have delayed or not considered homeownership as part of their wealth building strategy,” Williams stated. He also stated some several initiatives that speak directly to the millennial demographics. In spotlight, one program that drew a lot of applause from the audience when he said, “Our people need to know that you’re in violation if you drive a Land Rover and you pay rent to a landlord.” This is an initiative dubbed House Then a Car is set to launch shortly and it concentrates its financial focus on attracting millennials and Gen-X-ers to home buying or investment in real estate investment opportunities to build sustainable wealth. Donnell emphasizes that NAREB members Realtists have to embolden themselves as well their potential customers. He noted, “We must Educate, Empower, and Mobilize oursel ves as well as the Black American public. Wealth building through homeownership is indeed possible and we need to make that happen.”
The Power Is Now Magazine | August 2019
Back to school doesn’t have to mean your clients have to wait until next year to move! Your clients can get pre-approved prior to contract, and then close in as little as 14 days. At First Bank, you’ll experience exceptional service. We track the details of each loan and the market to ensure clients have the best mortgage product for their financial situation. If you know anyone who is looking for personal and professional service, I would be grateful for the referral.
104 E Ontario Ave Corona, CA 92879 FirstBanks.com/Mortgage
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Eric Lawrence Frazier MBA Vice President & Mortgage Advisor Office: (800) 261-1634ext. 703 Fax: (314) 264-0211 NMLS: # 461807 eric.frazier@fbol.com Firstbanks.com
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[POWER YOU]
This is the credit score you typically need to take out a mortgage
C
redit scores and reports can be confusing to most people especially the first-time home buyers. When preparing to purchase a home, it is important that you first understand your credit score and how it affects your mortgage application. The Power Is Now and First Bank have partnered to bring you free homebuyers’ seminars. Very interactive and informative seminars meant to prepare you for the homebuyers’ journey. Find out more about our seminars here. Regularly reviewing your credit report should be on top of your financial habits. A credit report reveals your financial background, helping you assess the personal payment history. your score is more than just a number, it determines a lot more than the loans you can get and the interest rates you will pay. Most insurance companies use credit scores to set premiums for auto and homeowner coverage. In addition, landlords use the credit score to determine who will stay in their homes. Therefore, if you didn’t take your credit score seriously, you better start doing it. credit scores are a financial tool; however, they can be a hammer or a lever, it depends on how good they reflect.
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If you are thinking of buying a home now or in the next few years, the credit score will play a significant role, so I suggest you start working on them. According to a Federal Reserve Report, 90% of the U.S mortgages taken out in the first quarter of 2019 were by home buyers who had a credit score of at least 650 and 75% had a score higher than 700. The report further notes that only 10% of the mortgage borrowers had a credit score under 647. The median credit scores this year sits at 759. Here are the minimum credit score requirements for the conventional, FHA, VA and USDA mortgage program; Mortgage Type FHA VA USDA Conventional
Credit Score 500 (with 10% down payment) 580 (with 3.5% down payment) No set minimum (entire loan profile reviewed instead) 580 (if eligible for a credit exception) 640 (for automatic approval) 620
The Power Is Now Magazine | August 2019
The national average stands at 704. And any score falling between 700 and 749 is deemed as “good” while the scores falling between 650 and 700 are “Fair.” Scores that are 750 and above are excellent scores. In most cases, the lenders will not issue you a mortgage if your credit score falls below the minimum threshold of the scores listed above. Most lenders work with a finite budget; therefore, it is very common for them to sell the loans they make t another company. They do not have unlimited funds to grant loans to every new applicant as they wait for 30 years for you to pay back your loan. To avoid this, most lenders will package their loans and sell them on the www.thepinmagazine.com
secondary mortgage market. Large companies such as the banks or the governmentsponsored enterprises purchase these loans and resell them. It is still possible to qualify for a home loan with a rate lower than the median, a higher credit score simply means better interest rates and loan options. Other factors can also influence the mortgageapproval process. This includes the cost of the home, the size of the down payment and your income.
Mortgage Affordability there are so many factors that go into play when deciding on the mortgage affordability, it
isn’t just about the credit score. Most of the lenders will want to see if you are able to afford your mortgage before they lend you money. Therefore, to minimize risk on their part, aside from looking into your credit history, they will also look at how much money you earn and how much money you spend. And not just the credit repayments but also the regular, fixed costs like childcare and other outgoings you have on a monthly basis.
Improving your credit score The first step towards building and improving your credit score is to pay all your bills on time and in full. Your payment history makes up 35% of your
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FICO score. Most lenders will look if you have paid your bills on time for each account on your credit report. It is important to set your bills on auto-pay and keeping a tab on your payments to ensure that you make routine and on-time payments. By paying all your debts in time, is a good start, but what if you have reached the breaking point? FICO scoring considers your credit utilization ratio where it measures how much debt you have compared to the available credit limits. Here, the system looks at how much of your total available credit you have used, and as a precautionary measure, do not assume that you have to have a $0 balance on your accounts to score higher, nonetheless, less is better, but owing a little bit of debt can be so much better than owing nothing at all. Lenders will want to see if you borrow money if you are responsible and financially stable enough to pay the money back. The amount you owe could earn you up to 30%. One other important factor that you have to consider and I emphasis on this is the length of the credit history. the credit score also takes into account how long you have been using credit. For how many years have you had obligations? How old is your oldest account and such like considerations? Long credit history will streamline the numbers and if not marred by late payments, it could really boost your credit score. That’s not to say that a short one is disqualified altogether, if you have been paying your debts on time and you don’t owe much, your credit score will improve. If you have been following the news, you must be aware that patterns in credit have really changed dramatically over the last few years. But still, I think the credit system in the country is a flawed system. It takes much time to build your credit, and you have to work much harder to maintain that credit. Don’t get me wrong, credit scores are important but they would really be beneficial if they cut across every racial divide in this country. I believe the system has for a long time held hostage the minority groups in the country and that’s why you will find a very large gap in wealth 40
creation between the whites and almost all other minority groups. I’m trying to think what happened to the people who were hit by the 2008 financial crisis? Most of these people are now homeless. That’s exactly what the system has done to most people. I think the credit reporting system in the country should be revised effectively, credit scores no matter how important they are, they should not be the deciding factor for a mortgage. Just because a person has a low credit doesn’t mean that they are financially irresponsible. Think about that. The Power Is Now strives to bring you the latest developments in real estate economics, mortgage lending, and the market. We are committed to making sure that you are updated with what’s happening around you and to be your resource acquisitions and sells. We are partnered with great agents across the country and with First Bank to provide the products and programs that First Time Homebuyers need to buy a home or income property now because tomorrow it will be even more difficult. Go to www.applytobuynow.com and get started today. The Power to buy is now! Eric Lawrence Frazier MBA Vice President and Mortgage Advisor of First Bank NMLS 461807 President and CEO of The Power Is Now Inc. CalDRE 01143484 www.thepowerisnow.com
Works Cited Adamczyk, Alicia. “This Is the Credit Score You Typically Need to Take out a Mortgage.” CNBC, CNBC, 15 July 2019. https://www.facebook.com/asklizweston. “Why Your Credit Score Is Important - NerdWallet.” NerdWallet, 14 Mar. 2019. Leimgruber, Jesse. “10 Problems With Credit in The United States.” Medium, Bloom, 26 Sept. 2017. Slater, Victoria. “ZING Blog by Quicken Loans.” ZING Blog by Quicken Loans, 2 July 2019. “The 5 Biggest Factors That Affect Your Credit.” Investopedia, 2019. “What Credit Score Do You Need For A Mortgage?” Experian.Co.Uk, 2019. “What Credit Score Do You Need For A Mortgage? MagnifyMoney.” MagnifyMoney, MagnifyMoney, 26 Mar. 2019.
The Power Is Now Magazine | August 2019
Your loan officer should be as invested in your home as you are. Let’s feather your nest. First Bank Mortgage offers three tips to help you on the path to homeownership! 1. Start by checking your credit score. Your credit history is an important factor when you decide to apply for a loan. The score reflects how well you manage your debt. It’s important to discuss this, and other factors, with your First Bank home loan consultant. If you find that your credit score is too low, there are a number of steps you can take to improve your credit score. 2. Get organized. Getting a loan requires a few different documentations including, but not limited to, pay stubs, tax returns, and financial statements. You’ll also need to provide copies of additional monthly payments such as car loans, credit cards, and student loans. Keep all of this in mind, when you begin organizing. If you have this information readily available when you decide to apply for a home loan, it will make the process much more efficient. 3. Start Saving! Set up a designated savings account and start saving as much as you can each pay period to use as a down payment on the purchase of your new home. Although we offer first-time homebuyer programs with little to no down payment, it is still a good idea to have some available funds in reserve to use for a potential down payment, utilities, moving expenses, new home furnishings, or unforeseen emergencies. With some preparation now, you’ll be even closer to rolling out the welcome mat on your own, new home later. We’re here to help answer any questions to help make that dream a reality.
104 E Ontario Ave Corona, CA 92879 FirstBanks.com/Mortgage NMLS 551928
Eric Lawrence Frazier MBA Vice President & Mortgage Advisor Office: (714) 475-8629 Fax: (314) 264-0211 NMLS: # 461807 eric.frazier@fbol.com Firstbanks.com
HOME OWNERSHIP By Eric Lawrence Frazier MBA
Home ownership brings stability to individuals and families who have never had a dwelling place that they could call their own. There is something special about owning real estate that is unlike anything else on earth you can own. Real Estate you own is not like cars that decay over time and you have to replace them. Real Estate you own is not like clothes that go out of style and you have to buy new ones. Real Estate you own is not like expensive vacations or experiences that only last a moment in time. Real Estate you own is not like an apartment where the landlord may increase the rent until it’s no longer affordable. Real Estate you own is not like staying at your parents house where you know can’t stay forever. Home ownership is the beginning of wealth that increases over time and becomes your estate & legacy Home ownership is the pride of a mother nurturer and the kitchen her domain Home ownership is the pride of a father provider and protector of his territory and family. Home ownership is the foundation of permanence and the place where life happens, birthdays celebrated, deaths mourned. Home ownership is the place you build memories that can never be taken from you. Memories etched in walls and concrete, experienced in rooms and floors, Memories living in trees and shrubs planted by your hand. Howe ownership is the manifestation of you - your style, your colors, your smell, your stuff, your junk, your memories, your yard and your spaces, your life. It’s the height markers on your first child’s bedroom wall. It’s the hearts drawn in the concrete slabs when you pour your patio floor It’s the birthday parties, and anniversaries in the living room and kitchen. It’s the back yard barbecue with friends, neighbors and family contentions it’s the high school and college graduation, and wedding receptions Its’ the family nights and block parties and the fellowship of family connections Home ownership It’s more than real estate. Land, brick and mortar, wood frame construction and chicken wire. It’s more than money saved, gifts recieved and grants obtained It’s more than the debt you incur to buy it. It’s more than the payments you make to own it. It’s more than the appreciation that comes with keeping it over time. It’s memories, it’s family, and it’s life that can happen in one place Until you say it’s time to move.