PRICE DOESN'T MATTER, PAYMENT DOES!

Copyright © 2020 by Julio C Roque

Printed in the United States of America

All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other non-commercial uses permitted by copyright law.

For permission requests, please contact the publisher using the contact information below.

Published by Roque Enterprise, LLC

Copyright © 2020

For any requests, please contact the publisher

[email protected]

All rights reserved

Disclaimer: This book is for educational and informational purposes only. It is not intended to provide any financial, legal, or credit advice. Always be sure to consult with the right professionals before making any decisions.

Contents

Dedication

Introduction

About The Author

Chapter 1: True Affordability: How a Mortgage Really Works!

DTI Explained

The Truth Behind a Bank Pre-Approval

More for Your Money

Owner Occupied Investment Property

Chapter 2: Proper Planning

Type of Home

Budgeting

Credit

Co-Signing

Required Funds

Chapter 3: Understanding Income

W2 Income

Using Multiple Jobs

Commissioned and Variable Income

Self-Employed Borrowers

Schedule E Rental Income

Social Security, Retirement, Child Support, and Foster Care Income

Chapter 4: Loan Programs

Overlays

FHA

Conventional

Fannie Mae HomeReady

Freddie Mac HomePossible

VA

USDA

Community Grant Programs

Chapter 5: Getting a Pre-Approval

The Secret to a Smooth Transaction

Organization is the Key

Chapter 6: The Dream Team

The Right Team = A Successful Transaction

Chapter 7: Your Dream Home Awaits

Searching for the Right Home

Bidding Wars and Negotiating an Offer

Important Offer Dates

Home and Other Inspections

Negotiating Inspection Results

The Purchase and Sales Agreement

Chapter 8: Securing Financing

Required Documents

Motivation Letters and Letters of Explanation

Getting Insurance

The Appraisal

The Wait

Chapter 9: Cleared to Close & The Closing

CTC Music to My Ears

The Closing

Chapter 10: Post-Closing

Utilities

Check Your Windows

Outdoor Water Faucets and Hoses

Look for Cracks

Filters and Heating

Flashlights & Batteries

Don’t Ignore the Leaves

Check for Water Leaks

Your Fixed Payment Isn’t So Fixed

A Closing Note

Dedication

I would like to dedicate this book to all of the amazing people that have been there for me throughout life’s journey; to my amazing wife, Maiden Gomez, who has always supported me through good and bad times, and whose love has helped me through some of my toughest challenges; to my uncle and aunt, Carlos and Elizabeth Palacios, who provided me with a home when I needed it the most; to my brother Mario Roque whose love and loyalty is unmatched; to Ann Sabbagh, who kindly gave a stranger an opportunity to grow, shine, and succeed.

I dedicate this to all the new friends and family I have made through the mortgage and real estate industries. I have touched the lives of so many people as they have mine. I have been to their weddings, birthday parties, family gatherings, first communions, Christmas Eves, and have even welcomed newborn members of their families into the homes I helped them achieve. I’ve been warmly welcomed into the homes and lives of so many people with such love. Seeing how many lives I have impacted along the way has made me fall in love with the industry. A home is something so much more than brick and mortar. It’s a place where memories are made; we laugh with loved ones, cry through hardships, and feel comfort when we seek escape from the rest of the world. It’s the place where we forever hold the fondest and most intimate memories of our lives. I truly feel blessed to be a part of all of these memories.

Lastly, I dedicate this to a good friend whom I have yet to meet but God willing, someday I will, Tony Stark Policci. At one of my lowest points in life, Tony kindly stepped up to help me on a project while I was trying to get back up on my feet. He is a dear friend. He definitely knows how to put my words into perspective.

Introduction

I was tired of seeing people lose unimaginable amounts of money, time, and sanity on failed home purchase transactions. I launched Re-Connect to help people achieve the dream of owning the right home, while also making agents' lives a lot easier. This book isn't about those agents. It's about you the home buyer. I believe everyone can invest and save a lot of money once they understand one basic principle: 

Price doesn't matter payment does, is a phrase that will change your home buying experience. At its core, it might sound like a riddle to people outside of the industry but I am here to tell you that it absolutely needn't be difficult. This simple guide will tell you everything you need to know. Better yet, it'll do it in a way that you can understand. Let's leave the technical terms to the professionals, and get a grasp of your financial future together. With this book at your side, you'll save a lot of money, and you’ll never walk into a transaction blind again.

I am infinitely passionate about helping people make smart financial decisions. Through creative thinking and inventive solutions, everyone can have the investment opportunities they deserve. This book is just one part of the plan to level the playing field of home buying. 

Through an extensive 18+ years of real estate, mortgage, underwriting, and loan origination experience with background on both sides of transactions, I’ve learned a better way than the industry standard of purchasing. This is a book for the buyers; you deserve to get the most bang for your buck, and can only do that by understanding the industry from the inside out.

Most people don't realize there is a direct correlation between mortgage denial and true affordability. The Consumer Financial Protection Bureau recently released loan-level mortgage lending data submitted by more than 5,600 commercial banks, savings associations, credit unions, and mortgage companies covered by the Home Mortgage Disclosure Act (HMDA). (Corelogic, 2019). That data showed that 2.65 million loan applications secured by single-family one-to-four-unit properties (including manufactured homes) were denied, making the overall denial rate