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Archives for September 12, 2018

Real Estate Remains A Strong Wealth Management Investment

September 12, 2018 by Joel and Jodi Redmond

Real Estate Remains A Strong Wealth Management InvestmentA young long-haul trucker driver once took an elder’s advice and invested all of his money into real estate. Even though he was seldom at home to enjoy the fruits of his labor, he hired a property management company to handle the properties. The advice that stuck with the driver was simple. “They’re not making any more of it, land that is.”

In terms of growing personal wealth, the real estate market may fluctuate, interest rates change, and the GDP can bounce like a ball. But, land is permanent. That may seem like a simplistic view of wealth management. Maybe it is. But that trucker retired early with multiple investment properties and a reasonably wealthy man.

His portrait in wealth management success highlights the notion that real estate remains a strong financial driver. The next logical question is whether or not now is the time to build a powerful real estate portfolio.

Current Market Conditions

Real estate investment does not necessarily follow the popular stock market thinking about buying low and selling high. In fact, investors such as the trucker had no plans to sell at all. That being said, the current real estate trends are widely considered a “seller’s market.” Are they really?

With Millennials and soon Generation Z buying up homes, inventory remains lower than demand. That naturally has resulted in an uptick in listing prices. Couple the supply and demand issue with a Fed raising rates and one might think this is a bad time to buy. Nothing could be further from the truth.

Buying rental properties are long-term investments. Buyers would be wise to do the math on how much the monthly mortgage, insurance, taxes and overhead measure against the potential revenue. Some property owners do their math based on 10 months rather than 12 to account for unexpected expenses. If the math works, it could be a valuable asset.

Real Estate Less Risky Than Stocks

Return on investment in real estate has the potential to far outpace stock buys. Consider that when you purchase a stock, things outside your control impact value and dividends. Think for a moment about how Elon Musk turned Tesla stocks into a roller coaster ride due to a few odd tweets and media interviews.

Owning property insulates investors from many external forces. Over time, rental revenue pays down the note. This allows owners the ability to siphon off money or leverage equity for additional real estate buys. With measured determination, your wealth management portfolio could include multiple properties that are paid off at retirement age. It worked for a truck driver who took some simple advice from an elder.

There’s little doubt that real estate remains a strong asset for increasing personal wealth. If you are considering a purchase, be sure to contact your trusted mortgage professional as soon as possible.

Real Estate Tagged: Investments, Market Conditions, Real Estate

What To Ask About How Loan Application Data Is Kept Private

September 12, 2018 by Joel and Jodi Redmond

What To Ask About How Loan Application Data Is Kept PrivateAfter hackers breached Equifax and stole vital financial records of 145 million Americans, people have a right to be afraid of disclosing personal information. That’s why it’s imperative that lending institutions to do everything in their power to protect your privacy.

When a prospective home buyer submits a loan application, defining information such as date of birth, home address, social security number, credit cards, bank accounts, and pay stubs are included. Basically, everything a hacker needs to penetrate an individual’s financial world is disclosed on a loan application.

If you are applying for a mortgage, get answers to these and other questions before handing over information. Hackers are too skilled at breaking into computer systems and the financial risk is too high to take any chances.

Does The Lender Take Submissions Via Email?

With the flurry of high profile email hacks making headlines, it may surprise borrowers that some lending institutions continue to take data via email.

Some estimates say that upwards of 70 percent of lending institutions routinely use email during the application process. When an applicant doesn’t have a bank account or credit card number handy, some lenders will take it electronically to complete the process. This is a major misstep.

Despite efforts to protect email, it continues to be a doormat for hackers to breach systems and steal data.

Does The Lender Use Encryption Software?

Although there is no perfect method to protect online data, many companies enlist the help of high-level IT personnel to maximize security. One of the better standards is the use of encryption.

When files are encrypted, the data enjoys two-tier protection. First, the hacker would need to breach the system to lift financial and personal information. Even if the internet criminal manages to steal data, they will be tasked with decoding it.

Breaking encryption software acts as a strong protection and future deterrent. Hackers tend to go after the low-hanging fruit. Ask about encryption protocols when applying for a loan.

Does The Lender Share Information?

The days of lenders sharing and selling personal information without consent are over. Under the Gramm-Leach-Bliley Act, banks must provide applicants with a disclosure form that states information sharing policies.

Don’t be startled that the form lists third parties who will review your information. Banks often reach out to businesses in their network when making a determination about loan approval or rejection. Nothing happens in a vacuum so to speak.

But take the time to review this form carefully. If you do not feel comfortable with some of the outfits on the list, trust your instincts and walk away.

Ask About The Lender’s Data Protection Policy

Data protection has emerged as a significant problem. For every new protection program a hacker will find away to breach it.

Cybersecurity has grown into a major business sector and borrowers would be wise to ask about a lending institution’s policies, protocols and investment into data protection. Compare how each company addresses threats and make an informed decision about who can be entrusted with critical personal and financial information.

Your trusted mortgage professional is an essential part of your home buying experience. Be sure to ask these questions to increase your confidence in this important partnership.

Mortgage Tagged: Mortgage, Privacy, Security

Joel and Jodi

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