“NAIBRS is about Wealth Creation”

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By Ms. Barrett, President of NAIBRS

As  your incoming president, I wanted to share my perspective on why NAIBRS is an important organization and mission. You work incredibly hard serving the needs of your clients, and for many of you it is not just a transaction, it’s a long relationship with someone who wants to plant roots in our community.

I’ve found myself in the real estate industry after a 13-year stint as a commodities trader on the Chicago floor.  My mom was a real estate agent, and I remember how each deal was more than a transaction.  There were families looking to buy their first home after having their first child. Subconsciously, I knew being in real estate is a real career opportunity.

When my colleagues at NAIBRS speak of our mission, it is about rebuilding our communities, creating jobs locally, filling a housing shortage, creating new ways to promote new construction, and creating a unified platform for many of us who are independent small business owners.

I have a new defined purpose for NAIBRS…we are wealth creators.  My colleague, Paul Imura, who is founding chairman of our organization, often addresses at  our conferences the impact the real estate.  If you sold a house ten years ago versus a car, which purchase turns out to be a better deal for the consumer.  Everyone understood the analogy, but  I wanted to see the expected numbers.  If you assume 4% appreciation for homes vs 15% depreciation for cars,  what happens after 10 years?    These are basic assumptions that we can find numerous supporting sources.

If we start with a $100,000 purchase (which is possible to buy a car or home today), in 10-years the home is worth $142K versus $22K.  

Although a fancy new car would be exciting initially, I think many homebuyers would be happy providing shelter for their families and then as a nice surprise, see their home worth more providing much needed wealth for important events like children going to college or one day, retirement.

My message is simple, we in the real-estate business are wealth creators.  I look forward working with you on driving more transactions, more happy clients, and more economic strength back to our communities. 

Respectfully,

Sondra Barrett

President of NAIBRS

National MI to Co-Sponsor New Construction Housing Summit in Chicago.

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Fannie Mae, Fifth Third Bank, NAIBRS and other top housing industry experts are among the speakers who will discuss a variety of topics relevant to Realtors and mortgage lenders.

EMERYVILLE, Calif., Sept. 17, 2019 (GLOBE NEWSWIRE) — Leading industry experts will gather to discuss new ways to address the housing shortage on October 3, 2019 from 10:00 AM to 2:30 PM Central at Fifth Third Bank in Rosemont, IL. The housing summit will be followed by a networking and cocktail reception. The free event is being hosted by National MI, a subsidiary of NMI Holdings, Inc. (Nasdaq: NMIH), along with Fifth Third Bank and National Association of Independent Builders and Real-Estate Services (NAIBRS). Registration is required.

Experts in mortgage lending, real estate and housing will discuss ways to grow new construction opportunities, often overlooked as an option in buying a new home. One in two homebuyers are willing to consider building a new home, yet only 10 percent actually end up doing so, according to an extensive Zillow study. In a roundtable format, summit participants will look at the reasons behind homebuyers’ choices and will discuss ways to boost new home purchases.

Jim Pippin, business relationship manager at Fannie Mae, will speak about housing market challenges today. National MI Vice President, National Accounts, Jim McGurk will address low down payment options for mortgage financing. James Pesavento, CEO of Proposed Properties LLC, will talk about driving new construction and Fifth Third Bank Area Sales Manager Jeff Gomoll will speak on financing options.

“Our bank has always supported new construction with our mortgage products, such as construction-to-permanent loans,” says Fifth Third’s Gomoll. “Our partnership with NAIBRS and its sponsors will drive much-needed education in our industry.”

“By focusing on the conversion of vacant lots into new construction, we can make a serious dent in the housing inventory shortage,” says NAIBRS President Sandra Barrett. “Ten thousand lots in the Chicago area alone represent about 20 percent of the sales opportunities in the Chicago market.”

“We’re thrilled to be working with Fifth Third Bank and NAIBRS to help increase homeownership,” says National MI’s McGurk, “We want to dispel the notion that building a new home is only for the financially wealthy and let people know that private mortgage insurance is a valuable low-down payment solution for borrowers.”

Details on the event are as follows:

Date:October 3, 2019
Time:10AM to 2:30PM CST
Location:Fifth Third Bank, 6111 N River Rd. Rosemont, IL 60018
RVSP:Required as seating will be limited to first 100 acceptances.

Please contact Lindsay Kozlowski at [email protected] for any additional information or to register for the event. You may also follow the link below to register.

https://www.eventbrite.com/e/fifth-third-bank-naibrs-housing-leadership-summit-tickets-71534749361

About National MI
National Mortgage Insurance Corporation (National MI), a subsidiary of NMI Holdings, Inc. (NASDAQ: NMIH), is a U.S.-based, private mortgage insurance company enabling low down payment borrowers to realize home ownership while protecting lenders and investors against losses related to a borrower’s default. To learn more, please visit www.nationalmi.com

Press Contact for National MI 
Mary McGarity
Strategic Vantage Mortgage Public Relations
(203)260-5476
[email protected]

Investor Contact for National MI
John M. Swenson
Vice President, Investor Relations and Treasury
[email protected]
(510)788-8417

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Proposed Properties launches its patent-pending matching technology, Lot2Home™ to allow homebuyers to expand options in selecting the right building site and home design.

CHICAGO (PRWEB) SEPTEMBER 05, 2019

Proposed Properties launches its patent-pending matching technology, Lot2Home™ to allow homebuyers to expand options in selecting the right building site and home design. New construction is making a come-back because market tailwinds are driving consumers to consider building instead of buying existing homes.

Jim Pesavento, CEO of Proposed Properties states “Technology has always been a game-changing catalyst in our real estate industry. Over the past 20 years, we’ve seen the power of the internet in providing homebuyers more information than ever imagined. Today’s buyers want choice, transparency and ease of understanding options with their home purchase decision-process. Our Lot2Home technology was designed with the end-goal of providing tools for buyers to visualize their dream home with our participating builders, and providing them a simple solution to help them build their dream home.”

Many real estate professionals struggle with connecting their clients with new construction options. However, Mike Zawilsak, a broker with Baird & Warner (established in 1855), finds Proposed Properties’ solution quite effective. Mr. Zawilsak states “I first heard Proposed Properties approach three-years ago on their smarter way to build homes. With their comprehensive construction process coupled with a strong technology tool, my clients are at ease in building their dream home.”

Sondra Barrett, president of the National Association of Independent Builders and Real-Estate Services, believes new construction can have an enormous impact on the US housing gap. Ms. Barrett shares “This program alone would bring $400M in Chicagoland new construction product sales and mortgage financing. This brings many economic benefits to our local economy.”

For more information on Proposed Properties or to get a demo of their unique matching technology, please contact [email protected] or Lindsay Kozlowski at (312)-625-8053.

About Proposed Properties 
Proposed Properties LLC was formed in 2018 and is based in Wheaton, IL. The company is focused on creating residential construction opportunities by providing a common platform for industry participants to best serve homebuyers. With its proprietary matching technology, homebuyers are able to customize and expand design options for building on lots and teardowns. The partners of Proposed Properties are experienced leaders from top REALTORS® firms, and Fortune 100 financial services and technology companies.

NAIHBR is now NAIBRS

Since being launched in the fall of 2017, the National Association of Independent Homebuilders and Remodelers has always had strong ties to the real estate community, and other professionals critical to the housing industry. Although rooted in the education and support of builders and remodelers, these other key service providers in the housing industry ecosystem have been essential components in NAIHBR as an organization. In an effort to recognize their contribution to the NAIHBR organization, the National Association of Independent Home Builders and Remodelers has been renamed The National Association of Independent Builders and Real-Estate Services, or NAIBRS!

 

This change has also been made to be more inclusive of real estate agents, lenders, title companies and other service providers that are key to the housing industry. And the change goes well beyond the name alone. NAIBRS will now be hosting classes and connecting members to other educational sessions for several of these specific groups to educate and promote the housing and contracting business, as well and create a more seamless and transparent experience for consumers.

 

Housing is a critical component of the US economy. For every single-family home built, 3 full time jobs are created. In additional, there is a significant economic lift and increased stability when new homes are constructed in a neighborhood. We are proud to be a part of this effort and support the housing industry.

 

To commemorate this change in our membership and organizational scope, NAIBRS will be offering new members a FREE year of membership in the organization until August 31st, 2019. That is a $49.95 value! Invite your friends and colleagues to join NAIBRS, and become a part of the movement that will promote and support the housing initiative in your community.

naihbr now naibrs

NAIBRS welcomes Proposed Properties

NAIHBR is proud to be working with some of the best service partners in real estate, lending, and construction to provide a more transparent and seamless experience for consumers. That is why so many of our members have decided to “Start With Your NAIHBR,” and introduce their clients to us. Clients can now understand the benefits of new construction, interact with the area’s best builders and receive guidance to make the home building process as easy and efficient as possible.

 

NAIHBR would like to welcome Proposed Properties as a Platinum Partner. Proposed Properties provides a sophisticated software platform that provides the matching services buyers need, allowing them to compare lots, builders, products and pricing. Agents can now register clients with Proposed Properties and the program will smoothly guide them through the home building process. You can even take a class and become certified as a New Construction Specialist (NCS) so you can take advantage of expanding construction opportunity in your market. Did you know over half of ALL buyers consider new construction before they buy? Save time and money by having your new construction homebuyer experience start with Proposed Properties.

For more information about Proposed Properties click below.

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NAIHBR Welcomes Proposed Properties

NAIHBR is proud to be working with some of the best service partners in real estate, lending, and construction to provide a more transparent and seamless experience for consumers. That is why so many of our members have decided to “Start With Your NAIHBR,” and introduce their clients to us. Clients can now understand the benefits of new construction, interact with the area’s best builders and receive guidance to make the home building process as easy and efficient as possible.

 

NAIHBR would like to welcome Proposed Properties as a Platinum Partner. Proposed Properties provides a sophisticated software platform that provides the matching services buyers need, allowing them to compare lots, builders, products and pricing. Agents can now register clients with Proposed Properties and the program will smoothly guide them through the home building process. You can even take a class and become certified as a New Construction Specialist (NCS) so you can take advantage of expanding construction opportunity in your market. Did you know over half of ALL buyers consider new construction before they buy? Save time and money by having your new construction homebuyer experience start with Proposed Properties.

For more information about Proposed Properties click below.

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What Does it Mean to be “Out of Balance” on a Construction Loan?

Shared by Ed Currie of Associated Bank

Being out of balance means you don’t have enough funds remaining in the loan based on the costs needed to complete the project.  This generally occurs when the costs of the project have increased from the original budget.
For lenders it is important that there are sufficient funds available in the loan to complete the project in case the homeowner does not complete the project.  This way the lender can use the funds set aside to complete.  Lenders never want to take back a home much less an incomplete home.
When a loan becomes out of balance, it needs to be remedied to get back in balance.  Typical remedies include having the homeowner bring in cash or have the builder reduce his or her fee to make up for the cost increase.
New Home Model Concept
Ed Currie Associated Bank

Ed Currie

Associated Bank

Meet the Author ...

Ed Currie

Ed Currie began assisting clients with mortgage financing in 1994 during one of the slowest mortgage markets in the last 25 years. The slow market allowed Ed to develop his client-centric philosophy and drive to make the process as stress-free as possible. Since that time, Ed has assisted over 5000 clients with total loan production exceeding $1 Billion.

NAIHBR Opens East Coast Office in Washington DC

NAIHBR continues to grow. We are proud to announce the expansion of the NAIHBR organization to the North Virginia and Washington DC area with our east coast chapter located at 1300 I Street NW Suite 400E, Washington DC, 20005. NAIHBR has partnered with key sponsors like EverBank and National Mortgage Insurance (MNI) to organize a Leadership Summit that will be held at the North Virginia Association of Realtors headquarters in Fairfax Virginia on July 26th, 2018.

Key topics for the event include…

  • Local Market Overview by Industry Experts
  • Financing options for new construction and renovation, that Pay Commissions Upfront
  • High-tech solutions to connect Realtors to today’s buyers and sellers
  • Launching of the 3/2 Program that triples commissions and doubles marketing opportunities by bringing the real estate and construction communities together to sell more new homes and help builders secure construction projects.
  • Introduction of the Homebuyer Benefit Program, which gives NAIHBR Preferred Members up to $550.00 of valuable home improvement credits and services to provide to as many of their buyers and sellers as they wish – unlimited use!
This event is sure to be a full house, so interested attendees can reference this EventBrite link to register and reserve their seats:
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We are excited to expand NAIHBR to yet another market, and hope to see you in Fairfax!

What Can I Do To Prepare For Applying For a Construction Loan?

Shared by Ed Currie of Associated Bank

Being prepared to apply for a mortgage can be very helpful in making the process smoother.  Mortgage companies are required to “fully document” a file.  Below are a few items that can ensure your loan application is not derailed, and will also limit the amount of documentation needed.

Income

Don’t Change Jobs: Changing jobs just before or during a loan application could possibly render your new employment income unusable or delay closing until your new income can be documented.

When you change jobs, your income will change.  While very few people change jobs to make less money, the way compensation is structured from how mortgage companies view “stable income”  may reduce the income that can be used to qualify.  For example, if you go from a salaried position to a commissioned position, your income may be viewed as less.  Even if the new employer communicates that your new variable income is “guaranteed”, they will very rarely put that in writing in order to make it usable.

Bottom line – if at all possible hold off on a job change until after closing.

Credit

Check your credit: Check your credit at www.annualcreditreport.com.  This is a free report available to all consumers once per year.  Make sure it is accurate and there are no negative items listed.  If there is collection activity on your report that you were unaware of and they are less than a year old, pay them off.  If they are older than two years you may be better off leaving them for now.

Don’t pay for your credit score: There are hundreds of different credit scoring models out there.  The only model that matters is the mortgage model that the mortgage company will pull when you apply for your loan.  Just because superdupercreditscore.com has your credit score at 900 doesn’t mean your mortgage score is 900.  There is NO correlation.  Save your money and work on the things that hurt your score.

Applying for new credit:  Limit new credit inquiries.  Credit checks hurt your score.  In most cases it’s not a big deal, but if you are on the bubble it can be the difference between approval and denial.

Keep your credit card balances low: One item that has a significant impact on credit scores  is the balance on credit cards relative to the limit of the card.  The “utilization rate” can absolutely obliterate a credit score.

As the utilization rate get above 10% (i.e. balance of $1,000 on a $10,000 limit) your credit score drops. It is common to see someone’s credit hurt by 50-75 points for having high balances on credit cards.  Keep them as low as possible; definitely below 30% and ideally below 10%.  If you use credit cards on a regular basis, make a payment on a weekly basis to keep the balance down (you can do that).

Also, the credit score impact is per card.  If you use multiple cards and as a whole are below 30%, but one or two are at 75%, you are still going to be penalized.  The credit score model looks at each card.  If you want to optimize your scores when they are pulled, keep the balances low on all cards before, during and until you close on your mortgage.

New Home Model Concept

Assets

Documenting the borrower’s source of funds is an area that is highly scrutinized.  Documenting the source, the acceptability of that source, and any “large” deposits can add a lot of additional documentation and in extreme cases, get your loan denied.

Season assets: You will be required to document two months of bank statements when you apply for your loan.  Any funds that go into your account previous to the preceding months statement are seasoned.  If there are any funds that you would like to avoid with the additional documentation, get those in your account well ahead of applying for your loan.

Large deposits: A large deposit is generally viewed as a non-payroll deposit of 50% or more of your monthly income.  A large check deposited into your account will need to be sourced.  Where did it come from?  Is it an acceptable source for down payment? For example, an unsecured loan from any source is generally not allowed.  If the funds won’t be in your account previous to the two months of statements you will provide, be prepared to prove where the funds came from.

Moving money around: Moving money from different accounts can create a lot of extra documentation.  Do you have multiple accounts with the same bank and move funds between them routinely?  If you do you will most likely have to provide all of the accounts to show that you are the account holder of the account.  It’s a lot of documentation.  Avoid or limit money movement if you can.

Where is the down payment coming from?: There are a lot of different, acceptable sources for a down payment.  There are also unacceptable sources as well such as unsecured loans and credit card advances.  If you won’t be pulling your down payment from your own liquid account (ie checking and savings accounts), be sure to talk to your mortgage person before you move any funds around or make a deposit.

One account?: If you have the time and ability to plan 3-4 months ahead, you could move all funds into one account that you plan on using for the down payment.  If you did that and had no activity in or out, it would drastically limit the bank statement documentation you will need to provide for the loan application.

Documents

There is a bunch of documentation that is needed for a loan application.  While you may be able to alleviate some of it by the suggestions in this article, you will still need to provide a number of items.  You might as well start gathering some of those items or at least know where they are:

  • Make sure you have pay stubs and can access them

  • Locate your complete tax return and W2s

  • Do you have K-1s listed on Schedule E?  We will need those too.

  • If you own 25% or more of a business or partnership, we will need the corporate returns as well.

  • If you own 25% or more of a business, we may need a year to date, unaudited, profit and loss

  • Bank statements – we need actual statements.  If you no longer get them mailed to you, be sure you know how to access them online

Construction Items

You generally won’t have your construction items for a while, but there are a few items to consider early on:

Timing issues if you will be purchasing a property:  If you plan on purchasing a property and closing on your construction loan at the same time, be sure you understand the amount of time you need.  You will need time to decide on a contractor develop the project scope, and time to get a firm budget.  Only then can you order the appraisal which you will want to do no later than 30 days prior to closing.  As you might imagine, it can be very difficult to get all of that done in a 45-60 average closing time frame.  Depending on your potential project, you may want to consider closing in two steps; property acquisition and then the construction loan.

Understand what will be needed for the project cost:  For a construction loan you need to document the complete cost of the project.  It most cases the project cost will be the budget from the builder or general contractor (GC) you select.  But in some cases, clients may opt to have some costs separate from the GC.  If this is the case, you need to obtain bids for the material and labor for all items outside the GC budget before the appraisal can be ordered
Ed Currie Associated Bank

Ed Currie

Associated Bank

Meet the Author ...

Ed Currie

Ed Currie began assisting clients with mortgage financing in 1994 during one of the slowest mortgage markets in the last 25 years. The slow market allowed Ed to develop his client-centric philosophy and drive to make the process as stress-free as possible. Since that time, Ed has assisted over 5000 clients with total loan production exceeding $1 Billion.

NAIHBR Expansion Set for Fairfax/DC Market

As NAIHBR continues to grow, we are proud to announce the expansion of the NAIHBR organization to the North Virginia and Washington DC area! NAIHBR has partnered with key sponsors like EverBank and National Mortgage Insurance (MNI) to organize a Leadership Summit that will be held at the North Virginia Association of Realtors headquarters in Fairfax Virginia on July 26th, 2018.

Key topics for the event include…

  • Local Market Overview by Industry Experts
  • Financing options for new construction and renovation, that Pay Commissions Upfront
  • High-tech solutions to connect Realtors to today’s buyers and sellers
  • Launching of the 3/2 Program that triples commissions and doubles marketing opportunities by bringing the real estate and construction communities together to sell more new homes and help builders secure construction projects.
  • Introduction of the Homebuyer Benefit Program, which gives NAIHBR Preferred Members up to $550.00 of valuable home improvement credits and services to provide to as many of their buyers and sellers as they wish – unlimited use!
This event is sure to be a full house, so interested attendees can reference this EventBrite link to register and reserve their seats:
reduced image finger with magnifying glass
We are excited to expand NAIHBR to yet another market, and hope to see you in Fairfax!
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Contact Info

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(855) 733-8100
[email protected]

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