November 2022 Nationwide

Down payment secrets, myths and misconceptions

Agents and mortgage brokers alike understand that one of the biggest hurdles facing their clients is the financial burden of a down payment. Though navigating the house hunt and sourcing an affordable mortgage are key, affording a down payment looms large in the minds of first time homebuyers The fact is, there are decades of misinformation and confusion out there when it comes to how much is enough for a down payment. Plenty of would-be homeowners write themselves off, assuming they’re not qualified or don’t have the capital to afford a home. While some mortgage brokers and agents understand that there are alternatives available for all kinds of home buyers, here are a few facts and options to keep in mind to rewrite what you think you know about down payments.

The Myth of 20% Down 40% of American homebuyers believe that a down payment unequivo cally means forking over 20% of the home’s purchase price, up front. What’s more, even homebuyers with a healthy amount in savings may balk at trading in their nest egg for a home they then won’t be able to afford All that withstanding, it’s completely possible to afford a home with as little as 3.5% down. How about 0% down? The truth is, it can happen.

There are a variety of loan products and programs available to entice skeptical homebuyers For instance, conventional loans that adhere to the federal govern ment’s standards as outlined by Fannie Mae and Freddie Mac require just 5% down for loans up to $417,000. For loans larger than $417,000, down

The right down payment isn’t one size fits all, so homebuyers would be wise to explore the options that work best for their wallets and overall plans.

payments remain as low as 10%. This empowers first time homebuyers to make that leap and buy into the market at a down payment rate that won’t break the bank.

Other worthwhile programs that cut the costs of down payments include: Fannie Mae’s 3% program, FHA loans, and VA/USDA loans. FHA loans are sponsored by the federal government’s Housing and Urban De velopment (HUD) agency and call for just 3.5% down

for qualified buyers. Similarly, VA and USDA loans are cost effective choices for most military veterans and active duty military servicemembers VA and USDA loans require 0% down and focus on homes for sale in rural and outermost suburbs. Altogether, the tides have turned when it comes to the myth of 20% down. The loan offerings out there are diverse and speak to would be buyers from most all walks of life.

The Benefits of Mortgage Insurance

Here’s another question to consider: why do banks and mortgage institutions allow homeowners to utilize low down payment loans in the first place? While low down payments benefit buyers, what about the institutions that back mortgages? Here’s where mortgage insurance comes into play.

When securing a low down payment, lenders pair these loan options with mortgage insurance. For those who didn’t pay that notorious 20% up front, mortgage insurance is a vehicle that protects lenders, while al lowing buyers to build equity in their home over time. The basic idea is for buyers to steadily pay into their mortgage insurance policy until they’ve accumulated that 20% they might have put towards a sizable down payment This allows the initial investment of buying a home to cost less, while giving lenders some peace of mind, too.

What else do you need to know about mortgage in surance and how it relates to the right down payment? It does increase buyers’ monthly home payments. However, the monthly cost of mortgage insurance isn’t astronomical, though it certainly should factor into a buyers budget when determining a property’s afford ability The bright side is this: once a buyer has paid off a portion of their loan (typically that 20% equity rate) then they can cancel mortgage insurance and save themselves the monthly cost.

At the end of the day, finding the right down payment when purchasing a home is all about examining finan cial wherewithal and homeownership goals. The right down payment isn’t one size fits all, so homebuyers would be wise to explore the options that work best for their wallets and overall plans.

How to manage client stress

Real estate professionals are responsible for guiding clients through some of the most signif icant transactions of their lives. And because these transactions involve making huge life changes, coupled with major financial decisions, they’re going to be inherently stressful. But that doesn’t mean they have to be unpleasant. Learning how to manage clients’ stress (along with your own) can help make every aspect of the deal go more smoothly for everyone involved Try some of these client stress management tips:

Stay in the Moment Clients will cause themselves lots of stress and sleepless nights envisioning all the ‘what if?’ scenarios that could possibly derail the deal. Encourage your buyers and sellers to stay in the moment and make decisions based upon facts you know to be true, not things that may or may not happen.

Focus on the Positive Buyers and sellers can get caught up in the negative aspects of a deal and talk themselves out of it entirely. Try to keep clients focused on the positive aspects of the deal and work through challenges one at a time, as they come up, rather than waiting and then trying to tackle them all at once.

Keep Your Ducks in a Row Clients will follow your lead, so be sure you’re setting the tone for a relaxed and productive partnership from the start Stay organized and informed so you can address concerns quickly and never leave a question unanswered. Not keeping clients informed is one of the quickest ways to undermine trust and create unnecessary stress.

Customize Communication Each client comes with a different set of needs and expectations re garding communication Some will get stressed out if they don’t hear from you every day even if there’s nothing significant going on Others will prefer to hear from you only when there’s noteworthy news to report Learn each client’s preferred style and communicate accordingly, whether that’s through text messages, email, or good old-fashioned phone calls.

Take Five When you sense a client’s stress level rising, take a quick break to breathe and regroup; talk about something else for a few minutes You can also suggest going on a short walk, or stopping to have a quick bite. In fact, steady blood sugar and proper hydration will go a long way toward reducing everyone’s stress level. If you’re heading out for a full day seeing properties, put a small cooler with bottles of water and healthy snacks in your car so everyone (including you) can refresh when needed.

Kim Jarrouj

Kim Jarrouj

Kim Jarrouj has roots in Charleston; her mother grew up there, and Kim recalls visiting her grandparents frequently during her childhood. When she met her husband there while in college, they made Charleston home. After their first child was born, Kim and her husband decided it was time to find a bigger home. They put theirs on the market as a for sale by owner listing, and were able to close on it in just 12 days That experience inspired Kim to pursue a future in the real estate industry.

Kim got her real estate license in 2009, and now serves Kanawha and Putnam counties and the surrounding areas in West Virginia. She works with both residential and commercial properties, and has certifications in lux ury homes and military relocation She has always had a particular interest in working with first time home buy ers, and has slowly been transitioning toward working with step up homes and luxury properties, making her well equipped to work with a wide variety of clients.

With her history in sales and self employment, it’s no wonder clients continue to return to Kim. More than 90% of her business comes from repeat clients and re ferrals and she makes sure that her values are conveyed to everyone she works with. She says, “I take pride in being honest and trustworthy, and always have my clients’ best interest at heart ”

Kim has been well rewarded and recognized for her work She will be featured on the cover of Real Producers Magazine, and has been nominated for the SUCCESS Magazine National Trendsetter award. She was proud to be recognized as the ICON Agent for eXp Realty in both 2020 and 2021 In addition, she was the top pro ducing agent with eXp Realty in West Virginia in 2021. She has been rookie of the year, a member of Berkshire Hathaway’s Leading Edge Society in 2018, a member of the million dollar club since 2010, and has received high rankings from fastexpert.com, expertise.com, and propertyspark com With an obvious passion for real estate, Kim is an agent clients will return to every time.

It has always been important to Kim to be an active

“It’s important for me to give back to my community. I am so grateful to do what I love every day, and hope to spread my joy.”

member in her community. She served on the board and helped the Ronald McDonald house bring back the McGala after its three year hiatus, and co chaired the e v e n t a l o n g s i d e h e r h u s b a n d f o r a l m o s t t e n y e a r s . To gether, they have donated and helped to raise millions for the charity She says, “It’s important for me to give back to my community. I am so grateful to do what I love every day, and hope to share that joy through acts of kindness ” Most of her marketing dollars are spent helping local schools, universities and other worthy causes in her community. In the past, she’s donated branded water bottles to local concession stands, spon sored sports teams, community 5Ks, and even made care packages for businesses during the pandemic so she could help others while promoting her brand. All of her branded gifts and donations are sourced from local businesses to further support West Virginia.

Currently, Kim serves on the local Kanawha Valley Board of REALTORS® forms committee and has fantastic work ing relationships with others in the industry, such as agents, lenders, appraisers, inspectors, and title and closing companies. Kim says, “I love being a REALTOR,® and I love sharing my passion with others. I take every oppor tunity I can to get involved with and help educate other agents in West Virginia.” Her words to live by are Maya Angelou’s “When you learn, teach. When you get, give.”

Kim uses live and professionally produced videos to help educate future buyers and sellers, assist current home owners with household tips, help fellow REALTORS® by sharing videos to uplift them and educate them on marketing strategies. She is honored to be a mentor through eXp Realty, and enjoys helping new agents get started in the industry

Kim’s brand is only continuing to grow. In the future,

she hopes to work with local organizations to host more events in her community. She says, “In the future, I’d like to collaborate with other brokerages to make changes in local circles, like building housing for those in need or teaching courses for first time home buyers about industry and transaction tips.”

Kim has co owned the Olive Tree Cafe & Catering with her husband for seven years, which is a thriving restaurant in South Charleston While she has been more hands on

with the business in the past, Kim’s thriving real estate business does not allow her much opportunity to assist her husband, but she still likes to offer input on market ing and help with special events As a mother of four, when she’s not working, Kim can be found cheering on her children at their sports games, and also enjoys un winding by listening to podcasts and audiobooks An expert in the industry with a keen eye for marketing, Kim Jarrouj is an agent that can be an asset for clients no matter what their needs may be

“I love being a

and

love sharing my passion with others.

every opportunity I can to get involved with

Top 10 Reasons to be thankful you’re a REALTOR®

Every day is different Whether you’ve been in real estate five days or 15 years, you’ve never had two days that were exactly the same. And you love it that way!

You are your own boss While you may have a managing broker or team leader, for the most part, you get to plan your days and work at your own pace.

You have a flexible schedule Sure, you’re going to work nights and weekends sometimes, but you have the chance to mold your schedule around important events in your life.

There are always learning opportunities Becoming licensed is just the beginning Growing as an agent means there’s always something new and exciting to learn about.

You are in charge of your own destiny When it comes to how much you can earn, the sky’s the limit. Very few careers offer so much potential to create the life you want.

You can work from anywhere With so many ways to work remotely, you can take your work with you and be productive from almost any location.

You get to see beautiful homes There’s nothing quite like walking into a beautiful home and seeing it for the first time. REALTORS® get to have that experience a few times a week.

You’re an in-demand guest for career day Many people are curious about how REALTORS® spend their days. You have the chance to spread the word about this amazing career.

You get to meet incredible people As a REALTOR® you have the chance to meet and become friends with tons of interesting new people.

And you get to help make their dreams come true Of course, the best reason to be thankful for being in real estate is getting the chance to help wonderful people buy or sell a home and change their lives.

7 Essential winter home prep projects

With winter on the horizon, now is the time to prepare your home for this unpredictable season. Properly preparing your home for winter will help keep you and your family comfortable, reduce heating costs and prevent structural issues that could result in costly repairs later. Most winter home prep can be completed as DIY projects. And even the ones that require professional assistance are a small investment now that can help you potentially save thousands later Let’s get started:

Start at the top Your home’s roof is the first line of defense against leaks and water damage. Inspect it for any loose, worn or missing shingles and have them replaced. Also look for any breaks in the flash ing seals around vent stacks and chimneys If your home has a flat roof (often found in warmer climates), use a leaf blower throughout the season to clear off leaves and other debris; this will help you detect any damaged areas.

Clear out gutters Gutters are another way to protect your home from water damage, but they only work properly when they’re clean. To prevent water from backing up and causing leaks, clean out all the fall leaves and other debris that has accumulated over the past few months. This not only protects against water damage, it will also keep pests and rodents from making themselves at home in the mess. If you find any missing or damaged gutters or fascia boards, have them replaced

Send water away Gutters are only one part of the equation when trying to minimize the chance of water getting where it doesn’t belong. You’ll also want to make sure the water they collect gets diverted far enough away from the home’s foundation To do that, add extensions to your downspouts. Ideally, you want the water to flow at least three feet away from the foundation to prevent the possibility of leaks and damage.

Inspect the system Have your furnace or heat pump inspected and repaired, if needed, by a professional, who will catch any current or potential issues before they leave you out in the cold. In addition to keeping you warm, a properly running heating system minimizes the risk of carbon monoxide issues and helps reduce heating costs. As the season progresses, remember to change the furnace filter monthly to ensure maximum efficiency.

Insulate hot water heater and pipes What’s not to love about a simple project that can save money and keep you more comfortable? Wrapping your hot water heater and pipes can help reduce utility costs while maintaining a comfortable water temper ature for bathing You can hire a plumber to do the job, or take it on yourself with specially cut insulation or foam available from home improvement centers.

Catch the cracks Winter is all about keeping

Winter Prep Quick Tips

• Have the heating system inspected and repaired before the first cold snap

• Inspect and repair roof, gutters and downspouts to prevent water damage

• Reverse ceiling fan blades to circulate warm air

• Find and fill any cracks around windows and doors

• Have the chimney cleaned before burning a fire

cold air and moisture and in warmer climates, pests out of your home, which is why you need to find and fix any cracks around doors and windows Inspect around window and door frames outside and if you find any gaps larger than the width of a nickel, fill them in with weather-resistant silicone caulk. Inspect all door sweeps and weather stripping and replace any that appear worn or cracked.

Sweep that chimney A crackling fire is a cozy way to help heat your home, but before you burn the first logs of the season, you need to make sure you can do it safely. Call a chimney sweep to inspect the chimney and clean it if needed The inspection and cleaning together should ring in at less than $500, but any amount is a small price to pay if it prevents a chimney fire and the possibility of carbon monoxide leaking into your home.

No matter the climate you live in, the winter season can be hard on your home. Taking these precautions at the start of the season will help ensure your home makes it through winter without any serious issues and you stay comfortable and cozy until spring arrives.

Make your mark 5 Ways to stand out

If it seems like everyone you meet knows someone who is “in real estate,” there’s a good reason for that There are approximately 2 5 million licensed real estate agents in the United States. But, only about 20 percent of those agents are responsible for more than 80 percent of closings. Still, with such a crowded field, it can be challenging to stand out and rise above the masses. Here are several things you can do to connect with clients and potential clients and become one of the go-to real estate professionals in your community.

Become a Local Expert

A lot of agents will say they know their communities, but how many ac tually do? Take a deep dive and learn about everything your clients will want to know: schools, employers, hospitals and health care providers, places to worship, where to shop and what to eat. Go outside your com fort zone and daily routine and think about what others with a different lifestyle will want to know Find the best vegan restaurant, discover where someone can get the perfect cup of coffee on their morning commute, and learn which park has the best playground. If you’re a Millennial, investigate recreational opportunities for retirees If you’re a baby boomer with an empty nest, get back in touch with the school system so you can share that information with clients who have young children. Creating deep connections in the community not only means you have more knowledge to offer your clients, it helps you develop your pipeline of referral partners

Make Social Media Matter At this point, it’s no longer a question of if real estate professionals should use social medial. If you’re not, you are missing out on opportunities to connect with clients and pros pects in a meaningful way The most important thing with social media is to think before you post, and ask yourself if it’s something your clients need or want to see. Make an effort to offer social media content that is simultaneously useful, relevant, and enjoyable. Post updates on market conditions, your latest listings, links to your blog and content you find informative, and in spiring, motivational quotes. Remember, consistency is key. Only posting a few times a month if you happen to remember makes it seem like an afterthought. For extra impact try “boosting” Facebook posts or

purchasing Twitter ads to increase your reach; it’s a small investment that can pay off big

Stay True to Your Brand Now more than ever, consumers are bombarded with a steady stream of marketing messages at every turn. That’s why it’s so important to maintain a consistent look and feel for your messaging across all channels You want to reach the point where prospective clients recognize that something is coming from you, even before they look for your name. Using a consistent color scheme, font, message tone, and style of photography across all dig ital and print media helps to establish and reinforce your brand identity

There’s Always More to Learn You know those REALTORS® who have the alphabet soup of designations after their name? They’re on to some thing Achieving specialty designations shows clients you are serious about real estate and in it for the long haul. Plus, knowledge is power. Staying educated on what’s happening in the constantly evolving world of real estate will give you an advantage over agents who haven’t cracked a book since they first studied for their license

Consider Coaching While it’s not the right fit for everyone, enlisting the services of a real estate coach can be the push many agents need to rise above and reach the next level Having an objective outsider look at your business can help move you past your comfort zone and see opportunities for growth you might be missing. Plus, having someone who is on your side and invested in your success feels inspiring.

Real estate is such a crowded field. It can be challenging to stand out and rise above the masses.

featuredagent m agazine

Vincent Cignarella is making quite a name for himself in the real estate world, however he didn’t initially start off in the business. Prior to starting his real estate career, he was on Wall Street for 40 years working as an interest rate and foreign exchange trader He also co managed a commodity bro kerage firm called Intercontinental Exchange Partners, which works across three continents, and Vincent learned many valuable lessons from the vast amount of work he put in. “I can’t even tell you how many cities and customers we had,” he says. “I personally did about a billion dollars a day in trans actions.” Later, Vincent transitioned to working with the Wall Street Journal, where he would write a column about the news he once traded After nearly half a decade of this line of work, he knew it was time to add something new to the mix.

One of Vincent’s friends, who was in the process of selling him a property, saw potential in him immediately. “We had multiple conversations as we were doing our searches,” Vincent reminisces. “He kept saying to me, ‘You really need to get your real estate license one of these days, because you do these numbers in your head. My agent can’t do it with a calculator ’ We had a good laugh over that.” His friend was right, and Vincent dove right in.

Once he made the decision to try out his hand in real estate, the adjustment was simple. His work with high transaction values as a trader has made Vincent very comfortable with numbers “The numbers don’t get big enough to trouble me, and it’s easy for me to work with people and navigate for them, especially first time buyers,” notes Vincent. This skill allows him to achieve things for people that they didn’t think possible, which is one of his favorite aspects of the job. “I think the most rewarding thing is finding something truly special for

V I N C E N T C I G N A R E L L A

a client, and in many cases, something they didn't think they would be able to afford,” Vincent explains He en joys guiding clients to a decision within their price range that will make them happy.

But it’s not just Vincent’s knowledge of numbers that makes him a great real estate agent. Many of his clients appreciate his honest and straightforward nature If a client asks for help with something that is not Vincent’s strong point, he will not hesitate to send them to another agent. He elaborates, “If I have shortcomings, I tell my clients straightaway ” He also explains that he tries to make himself available according to his clients’ schedules, rather than his own. With his honesty, flexibility, and amiable personality, Vincent is truly unparalleled as a real estate agent.

Based out of New York and mainly serving the lower Westchester area, Vincent also has knowledge of Fairfield county in Connecticut. He mostly works with residential real estate, including condos and co ops. When he’s not at work, you might find Vincent cooking delicious Italian food for his family. “I play some tennis when my knees let me,” adds Vincent with a laugh. He also likes to help out in the community He takes part in Creative Spirit, a charity that assists intellectually disabled people of which 85% are unemployed in getting jobs. He has a soft spot for the people in this community, and although it is challenging, he devotes himself to finding these in dividuals jobs so they can achieve financial stability with a salary and insurance.

As for the future, Vincent plans to continue slowly trans i t i o n i n g t o t h e r e a l e s t a t e f i e l d . H e w i l l a l s o t e a c h financial economics at a nearby university “It will keep me busy and keep me out of my wife’s hair,” he shares Vincent enjoys the social aspect of working in real es tate, and looks forward to moving forward on that path. “The interesting part about it is, especially as you tran sition towards retirement, that it’s nice to continue to meet new people and make connections.”

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