Tim Eickhoff is the branch manager at Stockton Mortgage in Florence, Kentucky. He’s also known as the Northern Kentucky Mortgage Coach. Originally on the path to becoming a teacher, Tim now uses his passion for coaching and educating to help first-time home buyers navigate the often-complicated world of mortgages. He believes in making things simple and understandable, emphasizing the critical role of education in the home buying process.
Tim highlights the importance of credit scores, not just for getting a good mortgage rate, but also how they affect other areas of your life, like insurance costs. He walks us through different mortgage options, from FHA and USDA to VA and conventional loans, explaining how each fits different needs.
Plus, he shares a golden tip: multiply your gross monthly income by .29 to figure out a comfortable mortgage payment. Tim’s advice? Don’t wait on the sidelines – the right time to jump into the market is now, with good credit as your best ally. Let’s dive in and demystify the mortgage process with Tim’s expert guidance.
[00:59] Tim shares his background. He almost became a teacher, but switched to the mortgage industry. He still coaches in many sports.
[01:34] Tim loves educating, sharing the process, and making things as easy as possible.
[02:05] He wants first time home buyers to really understand the process. The more they understand the easier his job is.
[02:46] Tim explains how education is key and the series of questions he takes his potential home buyers through.
[03:10] What do you want your payment to be and how does it fit in your budget?
[03:46] They reverse engineer the payment into a price and try to make the process as smooth as possible.
[06:08] A consumer-based credit report is like a light version of the mortgage credit report.
[06:33] Credit scores affect a lot in your life like home insurance and car insurance. Try to preserve your credit the best you can.
[07:19] The 620 to 680 range is more of an FHA buyer. 680 and above is more of a conventional type loan.
[08:04] There’s a lot of different loan types and programs that all have different qualifications.
[08:29] FHA loans require three and a half percent down and are a little more forgiving. USDA is 100% payment with no down required. VA is zero down with no mortgage insurance. Conventional programs range from 3 to 5% down.
[08:50] Each program has pros and cons. When going through client mortgage applications Tim and his team explains what program would be best for them.
[09:29] Multiply your gross monthly income by .29 to get an idea of what your payment should be.
[10:02] Some accounts will require escrow accounts and mortgage insurance. The government programs require taxes and insurance being included in your monthly mortgage payment.
[11:08] If you put 20% or more down with a conventional loan you aren’t required to have an escrow account.
[12:16] Tim advises to get in the market now because some people are on the sidelines waiting for interest rates to come down.
[15:46] Tims #1 advice: credit is the key to everything.
[17:54] Having an expert to help navigate the current market is good advice.
[18:10] If your realtor refers someone to you that means they trust that person.
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