August 2018 Mortgage

August 2018

4 Techniques to fine-tune

your mortgage practice

Kathryn Vatsula also featured:

Nichole Manor

Email marketing 101 All about appraisals

What you need to know

contents

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Secrets of using social media to meet your sales goals

14 4 Techniques to fine-tune your mortgage practice

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All about appraisals — What you need to know Top 10 Things every first-time home buyer should know

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All about appraisals—

What you need to know There’s no disputing that appraisals carry a lot of weight when it comes to real estate. In general terms, an appraisal is the estimate of a property’s market value, in comparison to similar properties in the area.

This estimate is calculated through a painstaking process, and is conducted by licensed professionals who are deemed objective third parties (indicating they have no financial or other connection to the property).

Appraisals are not by any stretch of the imagination, “guesswork.”

A home’s appraisal will be influenced by numerous factors including:

• • • • • •

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Recent sales of similar properties in the area Size of your lot and square footage of the house Number of bedrooms and bathrooms Location of the home Condition and aesthetics Upgrades and home improvements

Appraisals for Buyers — Appraisals are particularly important to buyers, as an appraisal is mandatory when securing home financing. This is because a real estate appraisal serves as an assurance to the lender that the property is worth the amount they are lending.

In other words, an appraisal is a safeguard against risk for a lender, in the event that you default on your mortgage.

Appraisals are incredibly detailed and based upon a licensed appraiser’s on-site evaluation of a home, along with their research and analysis of sales data in the same area. Appraisals include amongst other things: evaluation of the real estate market in the neighborhood, details about the property compared to other similar properties, and any issues that may lower the value of the property.

As a buyer, appraisals that come in lower than the sales price can create a headache. However, if you Copyright Featured Agent Magazine

A real estate appraisal serves as an assurance to the lender that the property is worth the amount they are lending, and is a safeguard against their risk.

Appraisals for Sellers — Appraisals aren’t only important for buyers. For sellers, appraisals can mean the difference between selling your home quickly, or finding yourself with a property on the market for an extended period of time. That’s precisely why many sellers opt to have an appraisal conducted themselves before listing their home for sale. This provides homeowners with a credible idea of how to price their home accurately for a quicker sale.

have your heart set on a home and the appraisal comes in too low, there are a few things you can do. You may be able to appeal the appraisal, working together with your mortgage professional, your REALTOR,® and the seller, to seek out comparable values that may rebut the original appraisal. It should be noted that this process takes time, and it can be an uphill battle, but it’s worth a shot. Alternately, you could order a second appraisal, or try to negotiate with the seller to bring down the price of the home.

Keep in mind that an appraisal is not the same as a home inspection. A home inspection focuses on ensuring that mechanical systems in a home (HVAC, plumbing, electrical, etc.) are in good working condition. Therefore, a home inspection is highly suggested, but the results do not always directly affect the loan approval process. An appraisal on the other hand, is required and plays a significant role in obtaining financing for your home.

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If you’re planning to sell your home, make sure all renovations and upgrades that have been made to your home are brought to the attention of your appraiser.

If you’ve installed new cabinetry, flooring, or countertops, make sure the appraiser knows about it. If you’ve recently replaced your windows or updated appliances, be sure to mention that too. However, keep in mind that the appraiser will need to verify your claims, so you may need copies of work orders or receipts to confirm the dates and costs of the upgrades.

Should the appraisal come in lower than you anticipated, steps to take include appealing the appraisal, reducing the sales price, or asking your buyer to bring in additional money to split the difference.

Appraisals for Homeowner Refinance — Homeowners who wish to refinance will find that appraisals can again make a world of difference. This is because you won’t be able to refinance your mortgage if your home’s value is less than the amount you owe on the property. Likewise, if your appraisal reveals that you have less than 20% equity in your home, you may be forced to refinance with additional costs of mortgage insurance, or you may not qualify for a refinance with a lower rate.

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Top 10 Things every first-time home buyer should know Buying your first home is exciting, stressful and life-changing. You’re going to be faced with a lot of important decisions along the way, and you’ll often have to make them quickly, so the more information you have going into the process, the better. Here are the Top 10 things every first-time home buyer should know.

Mortgage Pre-Approval Isn’t a Guarantee — Getting pre-approved for a mortgage is an important step, but just because you’re pre-approved, doesn’t mean you’ll actually get the mortgage. Financial missteps following pre-approval could derail your chances.

Decide Location Versus Space — Figure out what’s most important to you. Is it the neighborhood you’ll live in, or the amount of square footage you’ll have? Once you decide that, you’ll be less likely to compromise one for the other and avoid being talked into something you don’t really want.

Understand the Total Cost — You’ve saved for a down payment, you can afford the mortgage payment, so that means you’re good to go, right? Not necessarily. You have to take into account the total cost of home ownership, which includes insurance, HOA fees, property taxes, home maintenance & repairs and more.

Don’t Expect Perfection — Very rarely does your dream home look like your dream home the moment you step through the door. You have to be able to envision the possibilities and be ready to transform it into your ideal space. Be sure you’re looking at homes with an open mind.

The School District Matters — Even if you don’t have kids or aren’t planning to, the school district in which your home is located affects the property value.

Don’t Make Rushed Decisions — While it’s true that you may have to make some quick decisions during the bidding process, don’t commit to anything you feel you’re being forced into or aren’t ready for.

Understand the Time Commitment — As a renter, you come and go as you please, and if something breaks or needs to be repaired, you make a phone call and that’s that. As a homeowner, you’re responsible for maintenance and upkeep, both inside and out, which will likely take a bite out of your free time.

Research the HOA — If you’re looking at a home in a community with an HOA be sure you read and understand the covenants, conditions, and restrictions (CC&Rs) and talk with your potential new neighbors to get a feel for how the HOA performs.

Don’t Be Afraid to Ask Questions — You’re about to make a huge decision. It’s perfectly normal to have lots of questions for your lender, your REALTOR®, the home inspector and anyone else involved in the transaction. Most real estate pros enjoy working with and educating first-time buyers, so ask away.

It Should Be Fun! — The home buying process can definitely be stressful, but it should also be fun, too.

After all, you’re about to realize the American Dream of home ownership. Enjoy the ride!

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Kathryn Vatsula

Kathryn Vatsula

Over the course of her 30-year career in mortgage lending, Kathryn Vatsula has played a range of roles in the industry. Beginning in the company mailroom, Kathryn worked her way steadily through the ranks of her field, serving as a processor and an underwriter. Applying years of first-hand insight and experience, Kathryn went on to become a loan originator, a role she passionately fulfills today.

What’s more, she has been bestowed a host of accolades for her commitment to quality and followthrough, including several years of recognition as a Top Producer and President’s Circle awardee, and a coveted designation in the Top 1% of Mortgage Originators of America by Mortgage Executive magazine. All the while, Kathryn has built a steadfast reputation for high-caliber service, education, and authentic character.

Today, Kathryn is part of a tight-knit team that 8

includes two loan partners. Together, they serve San Joaquin County and the greater Bay Area, including the counties of Oakland and Alameda. Likewise, Kathryn and her team provide clients a range of loan products to best suit their needs and goals, and Kathryn offers her extensive experience with VA options, renovation loans, and first-time homebuyer assistant programs. Additionally, her assistants are fluent in Spanish, and happily cater to the diversity of homebuyers in the Bay Area.

In the three decades she’s been in business, Kathryn has built lasting relationships over multiple generations of families. Accordingly, she earns almost the entirety of her business through repeat and referral clientele. To account for this accomplishment, Kathryn cites an emphasis on communication, earned industry knowledge, and abiding forthrightness as the central pillars of her professional philosophy.

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cover photo by Fritz Chin Photography

“I learned by doing, and of course I had a lot of great mentors throughout my work history,” she says.

“I’m a committed person and I have a planner’s mentality. I’m committed to my craft and in all aspects of my life — from my work and family, to athletics. I follow through.”

In fact, the same drive and determination that’s fueled Kathryn’s long career also fuels her athletic endeavors. Not only has she competed in several open water swimming feats — crossing the Maui Channel, as well as swims crossing the Golden Gate Bridge and Alcatraz stretches — but she’s also completed several triathlons, including an Ironman Triathlon at the age of 54.

This knack for discipline and execution inspires much of Kathryn’s working style, and she makes it a priority to continue her industry education and pass Copyright Featured Agent Magazine

along that expertise to the clients she serves. “I come from a foundation of preparation and education,” says Kathryn. “I’m passionate about mentoring and teaching, and that comes across in my consultations with clients. I’m not just taking loan applications and going through the motions. I’m constantly mastering my craft, learning, and trying to become even more knowledgeable about my work. Also, I’m pretty tenacious. I don’t give up when things get tough, and I have the ability to see the big picture and go back to square one when it comes to problem-solving. My longstanding relationships with my referral partners are a testament to that.”

To give back to her community, Kathryn participates in a few key causes that are close to her heart, including St. Mary’s Dining Room, the ASPCA, and Operation Enduring Warrior. In her remaining free hours beyond the office and her community 9

“I’m committed to my craft and in all aspects of my life — from my work and family, to athletics. I follow through.” involvements, Kathryn most enjoys time spent with family and loved ones, especially training alongside her husband who is also an obstacle racer in his own right. Of course, Kathryn is always at work training for her next athletic adventure, as well.

Looking toward the future, Kathryn plans to continue serving her community by applying her 30 years of industry knowhow, offering solutions to buyers of all kinds throughout the Bay Area.

“Character matters,” Kathryn reflects finally. “It’s just like they say: it’s about what you’re doing when no one is looking. Those ethics and that mentality are incredibly important to me. I never forget the families I’m helping. Getting someone into a home is a big deal; it’s one of the biggest decisions people will make in their lifetime. Being part of that process is so rewarding, and I know I’ll always be a loan officer. Educating and guiding others is what I’m passionate about.”

Kathryn Vatsula loanDepot | Stockton, CA 209.323.7902 | KVatsula@loandepot.com | www.loanDepot.com/KVatsula NMLS# 261647 10

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Secrets of using social media to meet your sales goals Social media affords REALTORS® and mortgage professionals alike an unprecedented opportunity to stay in contact with past clients, all the while reaching out to potential clients. That is, if you know how to use social media effectively. While it might be fun to share silly memes, or even articles about subjects you find interesting; as a professional, you’re also taking a gamble in doing so, as you run the risk of alienating past, present, or potential future clients.

Instead, when it comes to using social media to brand your business, share your skillset, and build relationships, it’s best to have a strategy in place. Here’s a Copyright Featured Agent Magazine

look at how REALTORS,® originators, and brokers can utilize social media to increase sales.

Repurpose Other Marketing Initiatives and Share on Social Media — Because social media is incredibly cost-effective, if not altogether free, you have a golden opportunity to repurpose all of your past and current marketing initiatives, thus getting even more mileage out of your efforts. For example, you can supplement your email marketing campaigns through posting your newsletter, weekly, monthly or quarterly on social media sites. You can also use advertisements as new cover photos, profile pictures, tweets, or status 11

Any way you look at it, having a strong social media presence should be a part of any real estate professional’s marketing strategy. It is the fastest, cheapest, and easiest way to keep your name, your business, or your brand in front of people you already know, and those you’ve yet to meet.

updates. Videos you create for your website can easily be uploaded to a YouTube channel, Facebook, Twitter, and even Instagram. In short, social media expands your reach exponentially.

Inquire and Engage with Clients — Social media enables real estate and affiliated industry professionals a terrific opportunity to engage with past, present or prospective clients through opening dialogue. From taking surveys, to asking for feedback on various articles, images, and even new restaurants in your community, you can interact with people you may otherwise never engage in conversations with.

Position Yourself as an Expert and Educator Using social media to share valuable information including market updates or mortgage rate news, secures you a position as a professional who is eager to educate others. Moreover, sharing interesting home value pricing statistics or changes to mortgage interest rates will likely invite questions from your audience, further providing opportunities for client engagement.

Share Rave Reviews About Your Service Got a great testimonial from a client? Share it on social media as another way to brand yourself or your business as one which prioritizes client services. This is a great way to reinforce your dedication without having to boast about yourself, as you’re letting someone else do the talking for you.

Keep an Eye on the Competition — Social media also enables REALTORS® and mortgage originators the opportunity to see what other top-producing agents or professionals are doing to keep their name top of mind. By looking to what some of the top-producing real estate agents and originators are doing, both in 12

your market, or in other markets, you’ll likely get ideas for additional marketing opportunities that you could also implement.

Promote Your Partners — Social media also gives real estate and mortgage professionals the opportunity to support one another, further solidifying referral partnerships through the acknowledgment of milestones, such as a sale or getting a loan closed quickly.

For example, mortgage brokers can help REALTORS® gain added exposure for their listings through sharing listings on their own sites.

Showcase Your Products — Sharing your listings on social media is a smart move for REALTORS.® The potential for others to see and share with a friend who is looking for a home is significant. Likewise, for mortgage professionals, sharing any new loan products or updates to existing products on social media is a smart move toward driving website traffic or calls.

Champion Your Community — As a real estate professional, social media should be used to highlight the perks of the various communities in which you live, work and play. This has the power to attract an audience who may not be sure which neighborhood or community they want to live in.

Any way you look at it, having a strong social media presence should be a part of any real estate professional’s marketing strategy. It is the fastest, cheapest, and easiest way to keep your name, your business, or your brand in front of people you already know, and those you’ve yet to meet. Just be sure to stay away from topics which might upset or otherwise alienate others. Instead, load up your feeds with useful, helpful, and positive information, and you’re likely to see your referrals start to multiply.

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featuredagent Nichole Manor magazine

“Referrals are the best compliment we can get,” says Nichole Manor, Branch Manager and Mortgage Consultant at Element Funding in West Palm Beach. Suffice it to say, with a business that is more than 80% referral based, Nichole and her team are clearly doing something unique.

Yet Nichole says there is no carefully guarded secret to the success of her team. “Customer service is our top priority. We make sure that our clients are informed every step of the way, but we also make sure they understand what is happening.

So many times, people come to us, not knowing how the mortgage process works. We don’t just tell them how it works, we show them how it works, so when they walk away with the keys to their new home, there is no confusion.”

Nichole’s passion for helping clients with real estate financing is rooted in her love of people. “I love that I get to meet new people all the time. I get to help keep them excited about buying their home. If their family is growing, I get to interact in their lives, and I get see their lives change. I become personal friends with my clients, and that’s really rewarding,” she adds.

Her insistence on making sure her clients understand the entire process in a way, mimics her own learning curve in mortgage origination. A graduate of State University of New York at Plattsburgh, Nichole dove headfirst into her mortgage career just about 15 years ago, almost by chance.

“I was working in college admissions, and there was no room for growth,” she says. When the opportunity to become an assistant to Element Funding’s CEO arose, Nichole’s interest was piqued.

“I have the same boss today, as when I first began. He was an originator, and I was brought on as an assistant. I initially worked behind the scenes on pre-approvals, and preparing files for processing. The more I learned about the process, the more interested I became,” she recalls. Soon enough, she was sent to one of the nation’s most revered origination training

courses, and for 90 days was immersed in learning the ins and outs, before earning her stripes as a Junior Originator.

“Customer service is our top priority.

We make sure that our clients are informed every step of the way…”

“I worked my way up,” Nichole says simply. “I was lucky to begin by working for great people, and I still work for them. Now I have a great team with me in the West Palm Beach office,” she says.

Indeed, these days as the head of the West Palm Beach team of Element Funding, Nichole continues to love what she does and has found great joy in mentoring, training, and guiding others, passing on all that she’s learned to the next generation of mortgage professionals. In addition, she continues to seek out her own opportunities to learn through ongoing “Lunch and Learn” events with REALTORS,® whereby a shared commitment to education is the focus of the events.

Though her primary focus is on working with buyers looking for purchase loans, or homeowners needing to refinance in the greater West Palm Beach area, Nichole does lend throughout the state, thanks in large part to referrals from past clients, and REALTORS® who have come to rely upon her experience, expertise and devotion to customer service.

These referrals, which continue to flow in will undoubtedly keep her team growing and flourishing well into the future.

Moreover, her status as a correspondent lender allows her to offer not only universal products such as FHA, Conventional, Jumbo, and VA loans, but she also has the ability to seek out niche products, including those custom tailored for doctors, first-time homebuyers, and 203k loans.

As for when she’s not busy helping others to achieve the dream of homeownership? Nichole is spending time with her husband and twin sons, or participating in various fundraisers or charities, including the Walk for Autism and 5K runs benefitting foundations such as Live Like Jake.

Though she doesn’t have a lot of spare time, she says that her favorite leisure activity is spending time at the beach with her family. “It’s our quiet place, amidst our crazy schedules.”

Nichole Manor

Element Funding | West Palm Beach, FL Branch Manager | NMLS #339002 561.253.0571 | nmanor@elementfunding.com | www.elementfunding.com/nmanor Copyright Featured Agent Magazine

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4 Techniques to

fine-tune your mortgage practice

To stand apart from the pack, a mortgage professional must rise above the status quo. After all, it’s often the little things that separate average loan officers from truly great ones, the kind that clients can’t help but rave about. Plus, fine-tuning your professional approach keeps you and your business fresh and ahead of the curve. With that in mind, here are a few easy-to-apply yet incisive ways to leave a memorable impression on your sphere of influence.

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Cultivate a Track Record — While devising a loan, you’re handling a client’s sensitive financial information, while acting as a guide through what’s often a complex and stressful process. How can you set your client’s mind at ease? For starters, provide proof that you’ve successfully guided others through the lending process and can be trusted to do it again.

Testimonials from past clients, stats that indicate your turnaround time and closing rates, and even displayed Copyright Featured Agent Magazine

lender lags on returning emails and phone calls, it inspires insecurity in the client. To combat this issue, consider sending out weekly update emails or text messages to soothe anxieties and reinforce the lines of communication. This preemptive approach not only serves your clients well, but can limit the worried phone calls or emails you might receive otherwise.

Be Ready to Counsel Clearly — As a lender, you’re the expert. Borrowers not only rely on you to source the appropriate loan, but also to explain any fine print and fees. This amounts to more than simply outlining the terms of a contract or loan product. You’ll need to be ready to translate industry terminology into information easily understood by the average homebuyer. In addition to explaining the function of a certain fee or provision, you’ll need to explain why it is included and how it compares to offerings made by other lenders. In this day and age, transparency is extremely important to consumers, and laying all the details out on the table in clear terms can go a long way in building lasting trust.

certifications can meaningfully convey your expertise to potential clients and referral partners.

Accessibility is Everything — While it may seem obvious that accessibility is a key factor in client satisfaction, lack of availability and responsiveness are among the most-cited issues that borrowers have with lenders. It’s easy to see why: borrowers are in the midst of the biggest transaction of their lives. If a Copyright Featured Agent Magazine

Harness the Power of Technology — Mindfully integrating technology into your practice can save time and positively impact your bottom line, as well. From social media and online marketing to database management systems, there are digital tools out there that can streamline your business for the better.

What’s more, these tools can help you track and quantify your progress, spending, and goals. The fact is, technology isn’t going away. If you want to build a business that can evolve with the times and the market, you’ll need to use it to your advantage. If you don’t want to incorporate these systems on your own, you may consider hiring a team member — even parttime — who can bring their brand of tech savvy to your enterprise.

There are plenty of ways to elevate your professional position, from taking ongoing education courses to hiring a coach. But when it comes down to it, professional growth begins with you and the decisions you make to better your practice. Start with a few of these practical applications and over time, you and your business will be better for it.

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