The Den: Advanced Mortgage Options With a Mortgage Banker

The Den: Advanced Mortgage Options With a Mortgage Banker

In this interview, Janette Burgin, a regional mortgage banker, discusses topics such as working with self-employed borrowers, construction-to-permanent loans, and lending for physicians and dentists. She also shares her involvement with local nonprofits like Child Help Tennessee and Care Cuts of Knoxville.

Table of Contents

What is it like to work with self-employed borrowers?

Working with self-employed borrowers can be challenging due to the fluctuating income and complex financial documentation required. However, it can also be rewarding to help these individuals achieve their homeownership goals.

How can self-employed people prepare to buy a house?

Self-employed individuals can take several steps to prepare for buying a house:

1. Build a strong credit history: Maintain a good credit score by paying bills on time and keeping personal and business finances separate.

2. Organize financial documentation: Prepare tax returns, profit and loss statements, and business bank statements to demonstrate stable income.

3. Save for a larger down payment: Having a substantial down payment can strengthen the mortgage application.

How do you help self-employed borrowers with their loan qualifications?

Janette helps self-employed borrowers by providing guidance and support to navigate the complexities of loan qualifications. She assists in organizing financial documentation and preparing them for the mortgage application process.

What is a construction-to-permanent loan and how does it work?

Janette explains the concept of a construction-to-permanent loan, highlighting its distinctiveness from traditional mortgage loans. She emphasizes that construction lending involves financing based on "Blue Sky," where the property does not yet exist, making the lending process more intricate and unique. She also discusses the option of a construction-to-permanent loan, which streamlines the process by combining land purchase, construction financing, and permanent mortgage into a single set of closings.

What should people consider when building a custom home?

When building a custom home, individuals should consider the following aspects:

  • Take time to finalize plans: It's important to carefully consider the design and features of the home, as rushing this process can lead to costly revisions later on.
  • Seek multiple builder quotes: Getting quotes from different builders can provide insight into pricing and ensure that the chosen builder aligns with the project's budget and vision.
  • Ensure transparency and adherence to plans: It's crucial to communicate clearly with the builder and ensure that the final construction matches the initially agreed-upon plans to avoid complications and additional expenses.
  • Plan for the long term: Consider the long-term functionality and practicality of the home's design to ensure that it meets current and future needs.

How can a construction-to-permanent loan help minimize closings and costs?

Janette highlights the benefits of a construction-to-permanent loan, emphasizing its ability to streamline the process and minimize closings and costs. By combining land purchase, construction financing, and permanent mortgage into a single set of closings, this type of loan reduces the need for multiple transactions and associated expenses, ultimately providing convenience and cost savings for the borrower.

What is cross-collateralization and how can it help buyers?

Cross-collateralization involves using one loan to combine multiple properties and transfer equity for a purchase. This approach can reduce the cash injection required for a purchase and eliminate the need for a home sale contingency, providing more flexibility for buyers. By wrapping current and new homes into a single loan, buyers can close on the purchase without being dependent on selling their current property.

Janette explains the versatility of cross-collateralization, stating, "You can wrap investments, second homes, or primaries, as long as it's a home. Depending on the equity and purpose of the property, we can allocate that equity to the new transaction, offering a more comprehensive financial solution."

How does cross-collateralization differ from a bridge loan?

Cross-collateralization involves using one loan to combine multiple properties and transfer equity for a purchase. This approach can reduce the cash injection required for a purchase and eliminate the need for a home sale contingency, providing more flexibility for buyers. By wrapping current and new homes into a single loan, buyers can close on the purchase without being dependent on selling their current property.

Janette explains the versatility of cross-collateralization, stating, "You can wrap investments, second homes, or primaries, as long as it's a home. Depending on the equity and purpose of the property, we can allocate that equity to the new transaction, offering a more comprehensive financial solution."

What is special about lending to physicians and dentists?

Janette Burgin discusses the unique challenges and opportunities in lending to physicians and dentists, highlighting the distinctive financial circumstances and earning potential of these professionals.

She emphasizes the significant sacrifices made by physicians and dentists to attain their degrees and establish their careers, often leading to delayed gratification and limited liquid assets, despite their promising earning potential. Janette explains that lending to these professionals requires a deep understanding of their financial journey and the flexibility to accommodate their specific needs.

Furthermore, she outlines the specialized lending programs designed to support physicians, dentists, and other medical professionals, offering tailored solutions to facilitate their homeownership and financial stability. Janette's insights provide a comprehensive understanding of the intricacies involved in providing financial assistance to these esteemed professionals.

What is Child Help Tennessee and how does it help children?

Child Help Tennessee is a vital organization dedicated to protecting and changing the lives of children who have experienced abuse or are at risk. The organization offers a range of comprehensive services, including residential care, prevention education, forensic interviews, trauma-informed therapy, and a unique foster care program. Janette Burgin, a passionate advocate for Child Help Tennessee, provides valuable insights into the organization's transformative impact on the lives of children in need.

Janette emphasizes the critical role of Child Help Tennessee in reshaping the response to child abuse cases, stating, "Child help in our area, the process now is a child's identified as having been at risk or having experienced something, there is a forensic, a specially trained interviewer that child can tell one time, one time." This approach minimizes the trauma experienced by the child, providing a safe and supportive environment for them to share their experiences without being repeatedly retraumatized.

Furthermore, Child Help Tennessee's Foster Care Program stands out for its commitment to fulfilling each child's potential and achieving permanency that benefits them. Janette highlights the organization's dedication to keeping sibling groups together whenever therapeutically appropriate, ensuring that children do not lose everything and facilitating expedited healing.

Additionally, Child Help Tennessee leads the country in operating a child abuse hotline, playing a pivotal role in providing nationwide support and intervention for children in distress. The organization also spearheads legislative initiatives to avoid state custody for some children, advocating for alternative family-based care and maintaining children's normality and identity.

Child Help Tennessee relies on the support of donors, ongoing monthly contributors, one-time givers, and volunteers to continue its crucial mission. Individuals can contribute to the organization's efforts by visiting childhelp.org, where they can donate, seek more information, or volunteer to make a meaningful difference in the lives of vulnerable children.

What is Care Cuts of Knoxville and how does it help the homeless?

Care Cuts is an organization dedicated to providing essential services to individuals experiencing homelessness in Knoxville. Founded by Marty Baker, the organization aims to restore dignity, self-esteem, and hope to those in need through a range of supportive initiatives.

Baker recognized the limitations of existing aid programs and sought to offer comprehensive assistance beyond basic sustenance. The organization's primary focus is to bridge the gap for individuals who may not meet the criteria for other support programs, ensuring that anyone in need can access vital resources and essential care.

Janette Burgin, a key figure in Care Cuts, explains the organization's evolution and the critical role it plays in addressing the multifaceted challenges faced by individuals experiencing homelessness.

She emphasizes the organization's commitment to providing not only grooming services but also access to hygiene facilities, clean clothing, and nourishing meals. Care Cuts operates as a lifeline for those in crisis, offering a safe and supportive environment where individuals can receive essential care and guidance.

Burgin highlights the organization's proactive approach in facilitating connections to existing community resources, such as medical care, employment opportunities, and housing assistance, ultimately striving to empower individuals to transition out of homelessness and regain stability.

Through its unwavering dedication and community-driven support, Care Cuts of Knoxville exemplifies the spirit of compassion and collaboration, serving as a beacon of hope for individuals experiencing homelessness in the region.

How can people get involved with Child Help and Care Cuts?

Child Help Tennessee is a vital organization dedicated to protecting and changing the lives of children who have experienced abuse or are at risk. The organization offers a range of comprehensive services, including residential care, prevention education, forensic interviews, trauma-informed therapy, and a unique foster care program. Janette Burgin, a passionate advocate for Child Help Tennessee, provides valuable insights into the organization's transformative impact on the lives of children in need.

Janette emphasizes the critical role of Child Help Tennessee in reshaping the response to child abuse cases, stating, "Child help in our area, the process now is a child's identified as having been at risk or having experienced something, there is a forensic, a specially trained interviewer that child can tell one time, one time." This approach minimizes the trauma experienced by the child, providing a safe and supportive environment for them to share their experiences without being repeatedly retraumatized.

Furthermore, Child Help Tennessee's Foster Care Program stands out for its commitment to fulfilling each child's potential and achieving permanency that benefits them. Janette highlights the organization's dedication to keeping sibling groups together whenever therapeutically appropriate, ensuring that children do not lose everything and facilitating expedited healing.

Additionally, Child Help Tennessee leads the country in operating a child abuse hotline, playing a pivotal role in providing nationwide support and intervention for children in distress. The organization also spearheads legislative initiatives to avoid state custody for some children, advocating for alternative family-based care and maintaining children's normality and identity.

Child Help Tennessee relies on the support of donors, ongoing monthly contributors, one-time givers, and volunteers to continue its crucial mission. Individuals can contribute to the organization's efforts by visiting childhelp.org, where they can donate, seek more information, or volunteer to make a meaningful difference in the lives of vulnerable children.

Care Cuts is an organization dedicated to providing essential services to individuals experiencing homelessness in Knoxville. Founded by Marty Baker, the organization aims to restore dignity, self-esteem, and hope to those in need through a range of supportive initiatives.

Baker recognized the limitations of existing aid programs and sought to offer comprehensive assistance beyond basic sustenance. The organization's primary focus is to bridge the gap for individuals who may not meet the criteria for other support programs, ensuring that anyone in need can access vital resources and essential care.

Janette Burgin, a key figure in Care Cuts, explains the organization's evolution and the critical role it plays in addressing the multifaceted challenges faced by individuals experiencing homelessness.

She emphasizes the organization's commitment to providing not only grooming services but also access to hygiene facilities, clean clothing, and nourishing meals. Care Cuts operates as a lifeline for those in crisis, offering a safe and supportive environment where individuals can receive essential care and guidance.

Burgin highlights the organization's proactive approach in facilitating connections to existing community resources, such as medical care, employment opportunities, and housing assistance, ultimately striving to empower individuals to transition out of homelessness and regain stability.

Through its unwavering dedication and community-driven support, Care Cuts of Knoxville exemplifies the spirit of compassion and collaboration, serving as a beacon of hope for individuals experiencing homelessness in the region.

Why is Knoxville/East Tennessee a great place for community involvement?

Janette Burgin passionately advocates for community involvement, emphasizing the power of collective action and the transformative impact it can have on individuals facing challenges. She believes in the interconnectedness of people and the responsibility to support one another, fostering a spirit of collaboration and compassion within the community. Janette's insights shed light on the genuine care and dedication prevalent in Knoxville and East Tennessee, where individuals come together to make a meaningful difference through their involvement in local nonprofits and initiatives.

How can people connect with Janette and get more information?

Janette Burgin is dedicated to providing assistance and valuable insights to individuals seeking guidance in various financial and community involvement endeavors. Whether you are interested in home financing, community outreach, or collaborative initiatives, Janette is readily available to connect and support your endeavors.

For direct communication and personalized assistance, individuals can reach Janette through the following channels:

 

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