Knotek knows his tech.

Since Homes for Heroes started doing Bio’s on our affiliates, we have asked the affiliate to provide some background information for us. With that info we would put together a post and put it out there. Reading this affiliates bio, there was not much more we needed to do. In his own words, Homes for Heroes, would like to introduce you to Mikal Knotek.

In 2006, the economy was beginning to unravel. The mortgage industry was the stone that broke the camels back with fraud and poor lending practices acting as the heaviest weight. I saw misinformed loan officers through out the industry using poor judgment and taking advantage of unknowing clients.

In 2007 I re-evaluated my business plan and included room to give back. I wanted to give back because the greedy side of our industry had taken so much. I wanted to change public perception and bring confidence back to my clients. It was important for them to know that Bell Mortgage was one of the good guys in the industry

I searched for several months to find an organization to align myself with that would take advantage of my skills in the finance industry. I knew right away after speaking with David Cohen and Ruth Johnson (Homes for Heroes) that Homes for Heroes would be the perfect fit.

The HFH philosophy is easy, do what’s best for our heroes. Homes for Heroes unites a whole industry on behalf of the Hero. No other program that I have seen does this. Becoming a Homes for Heroes affiliate has given me the opportunity to say thank you to the people who give everything of themselves every day.

MIkal Knotek

Mikal Knotek has been a successful mortgage professional, manager, technology entrepreneur, and industry consultant.

 

Mikal entered the mortgage industry in 1991 after the purchase of his first home.  Learning the business from the ground up, he quickly moved his way up the ladder and became a leading roll in production.  In 1997 he co-founded The Harrison-Knotek Group with his residential business partner, Kathy Harrison.  In 1998 they moved their group to Bell Mortgage and helped evolve Bell into one of the area’s premier residential mortgage lenders.  His residential origination’s exceed 300 million dollars over the past 15 years.

 

While still in the mortgage industry, Mikal founded Audit Technologies, a lender based audit and consulting firm.  His keen industry insight gave new light to how lenders manage their service portfolio.

Audit Technologies and Mikal’s growing residential mortgage business led to the founding of Clear View Software, Inc. in 2001.  Mikal used his industry knowledge and technical background to develop ground breaking industry technology that moved data to and from consumers and lenders with the highest level of speed and security.   His company was later purchased by a leading Minnesota lender.   Mikal’s extensive technical insight keeps Bell Mortgage at the forefront of industry changes and improvements.

 

In addition to Mikal’s residential originations, he is also co-founder of the Bell Mortgage Commercial Lending Group and oversees its day to day operations.

 
 
 

What do old drinking buddies do? They get HFH.

A few years back a Homes for Heroes founder was talking to an old friend. Old drinking buddies as they describe the relationship. They were discussing the Homes for Heroes program. Mark, being one of the founders, was plying his wares, showing his old friend how this program works and how it helps our Heroes with substantial savings. The old friend, Paul, listened, liked what he heard but wanted some time to think about it. Well he did and we are glad with the decision he came to. Paul got HFH.

Paul Krawczyk

Paul is a senior loan officer and owner of The Morris Long Group, a residential mortgage company. Paul takes a very personal and enthusiastic approach to mortgage banking educating and coaching clients about home financing. His experience in owning and managing investment property gives additional knowledge to property asset management.

Paul and his wife Janna are residents of Minneapolis and have a two year old daughter Lucy and a four year old son Oliver. Family hobbies include Mountain bike and cross country ski racing, yoga, commuting to many of Minneapolis’s outdoor festivals and gathering with family and friends ant their home.

Paul has found great satisfaction being an affiliate with Homes for Heroes because he feels it is his way to contribute back to those who work so hard for others. Janna’s background is teaching which has helped fuel Paul’s passion to want to give back through Homes for Heroes.

I called Paul today to run the bio past him to make sure it was accurate and found out I had some stuff wrong about buying and selling a car. He mentioned that he has been pleased with the police and teachers he has been working with. If you are looking to buy or refinance you can get a hold of Paul through our web site at Homes for Heroes.

Enjoy your weekend and keep all those in the Red River Valley in your prayers.

Just how hard can you hit your kid?

Had the radio going during lunch today. I usually sit at my desk at the Homes for Heroes office for lunch. It affords me time to rummage the office without too many questions. I heard something that made me laugh out loud. The commercial was dealing with kids concussions. Not that I think a kid with a concussion is funny but the ad was talking about a work shop that would discuss “impact testing” for kids! What does that mean? Do you attend these meetings to find out just how hard you have to hit your kid to induce a concussion? I think the ad writers need to clarify a little bit more, other wise I may just have to go home and start swinging and recording how hard I can hit before the kids go down.

Speaking of get hit hard, home sellers seem to be the punching bag today. I have heard stories of sellers offering cars along with the home. We have talked about the issues with short sales and banks. And I have have told you all that it is a buyers market right now. Where does that leave the seller?

The seller wants to maximize his profit yet the buyers want the home for free. A price is usually agreed upon where both parties feel they have pulled the wool over the others eyes. That is the best scenario in a real estate, however, today that is a rare thing to find. So what must the seller do in order to feel like they got the best deal possible?

First and foremost the seller must take heed of this video. In order to price the home to take advantage of the market. Meaning that there are a lot of homes out on the market right now and a good amount of them are foreclosures, short sales and HUD homes. If the seller is not one of those categories the right price is where you are going to be able to compete. So take a look at the video and we will discuss what it means.

One of the hardest parts of a Realtors job is to get the seller to look at the home realistically. If you come to my home I can guarantee you that the home made spice rack I made out of old cheese boxes and baby food jars adds at least 2 or 3 grand to the home value. I built that myself and it is the neatest thing in the kitchen! Does that make sense? No, but when you sit down with your Realtor, they will listen to all those improvements and great things you have done to your home then with great tact and skill let you know that very few of them will have an impact on the home. Ceiling mirrors hold no value while an additional bathroom will. Get the idea?

Next is staging your home. What does this mean? It means you have to make your house seem like you do not live in it and that you don’t own anything. All those great colors you fought with the spouse over, get rid of them. Cleaning? You will need to have the home so clean it will make a Drill Instructor cry. Your Realtor will usually have a check list of these things but if you are like me and do not read anything that does not have a cartoon on it, this next video will give you a good idea of what you will need to do to get your home ready to sell.

Now that them home has had 90% of its contents removed and stowed away and all traces of human beings erased you will need to market the home. If you think a sign in the front yard is all you need, think again. 70 to 80% of all home buyers are using the internet now. It is not like the old days when you got in the car and lugged the kids around the neighborhoods you liked looking for open houses. In todays market open houses are pretty much an invite to your neighbors so they can find out how much you are selling your house for and if they should get their home on the market. Your home should be marketed in several medias. But the biggest pay off is having your home all over the web. Make sure that your Realtor has the correct tools and skills that it will take to ensure that your home is seen by people not even looking for homes. I found this video and thought the Realtor that did this was spot on. The home sold if you can believe it.

Now admit it, you might not have liked the home but you watched the whole thing. And I would be willing to bet that you were amused at the Realtors audacity. But the home sold is a short period of time. A good Realtor is a good marketer. Make sure you ask about marketing before you sign listing agreements. A Sunday ad in the local paper won’t cut it anymore.

This last video quickly sums up what a seller must know when selling a home. Again we see that it does not take a lot of money to market your home. This Realtor combines recycling and marketing and for an added bonus had a celebrity appearance. Watch and see how creativity from your Realtor can get your home sold.

Have you figured out that being the seller in todays market isn’t the end of the world. Sure, it smells funny and at times you might feel like someone is searing your eyes out with hot spoons, but if you stage, market and price your home correctly the pain only lasts weeks instead of months. Just remember, there is a silver lining in being a seller. Once the home sells, all those buyers that were trying to get your home for penny’s on the dollar, you get to be one. Revenge is sweet.

See you tomorrow.

Semper Fi

New assignment, ninja skills not required.

ATTENTION Homes For Heroes Blog followers! My boss called me back into her office this morning and indicated that she was beginning to worry about me, what with Ninja stories and levitating people. I have a new assignment… she wants me to feature introductions of our Homes For Heroes affiliates so that all of you followers will get to know them. All I can say is, since I can’t locate my ninja master, “She’s the boss” so here goes.

Homes For Heroes affiliates with Realtors and lenders throughout the country to offer substantial discounts and rebates on real estate related services. They provide these rebates and discounts to those who serve our country and communities every day and include military personnel, firefighters, police officers and first responders. Homes For Heroes could not reach the number of heroes that it does without their affiliates.

Watch in the coming weeks as we introduce to you the caring real estate professionals who provide outstanding service to our heroes.

Our first introduction is to Jennifer Ott, Dallas, Texas.

Jennifer Ott is a seasoned loan officer of 13 years. She is currently a Branch Manager with AmericaHomeKey, Inc. Prior to joining AmericaHomeKey, Inc. she was with Southwest Mortgage, AmeriNet Mortgage, and CTX. Jennifer has experience in processing, closing/ funding loans, Underwriting, originating loans, and managing originator teams. Jennifer has worked in both the broker and banking industry.

Some of Jennifer’s services with being a Branch Manager / Loan Officer are:

• Provide information, terms, rates, value of collateral and other requested information and keeps applicants fully informed of any requirements or necessary information
• Work directly with clients, completing all application materials, pricing the loan program, and placing them with the appropriate lender
• Communicates directly with applicants to notify them loan approval or denial
• Prospects through real estate agents or builders, and configures finance loans for new home buyers & people looking to refinance
• Manage the following key relationships: title, loan consultants, vendors and borrowers

Today she continues to enjoy helping her clients with their real estate financing needs. A longtime resident of Dallas, Texas, she is married with three young daughters who are active in soccer, cheerleading, Girl Scouts, and the community.

Jennifer Ott is also a sister to a fallen soldier. Her brother Army Specialist Chad Drake was fatally wounded in Baghdad, Iraq, when his patrol vehicle came under attack by enemy forces using small arms fire. Chad was lost in the war September 7th 2004. Chad was and is a true Hero and proof that freedom is worth fighting for. Through her loss she has found away to give honor back to the heroes amongst us. Jennifer feels truly blessed to be a part of Homes for Heroes and she is committed to servicing the heroes that are among us daily in our communities.

We at Homes for Heroes have nothing but praise for Jennifer and we are truly blessed to have her on board. So if you are living in the Texas area (yeah the whole state) and are looking to re-finance or buy a home, Jennifer is the one to call. You can get a hold of her by visiting the Homes for Heroes website.

Speaking of financing, this latest down trend is having an impact on Soldiers when they receive orders to another duty station. (In the military that is called PCS Orders, or Permanent Change Station) The good news is that at least the Congress has addressed it in the “stimulus” package. $400 million has been set aside to assist those that have to sell a home because they have received orders. The full article is here. If you want to save even more when you receive your orders get a hold of a Homes for Heroes affiliate.

My boss is pleased, I made no mess in the office today, or in the parking lot. My colleagues had no desk accessories removed, reshaped or retasked as a result of my new assignment. I on the other hand have some things I will have to take care of first thing tomorrow morning. My desk critters will need feeding soon, but I have read that a single mouse can keep them alive for months.

See ya tomorrow.
Semper Fi

Conspiracy, Google or Government? Balut and talking animals.

My, My, My.  It seems the consequences of typing into Google “IRS helping homeowners” was not such a funny thing after all.  Yes, we all witnessed a miracle and that was fantastic and all that.  But now I am experiencing something a little bit odd.  On the news this morning I saw we had a house fire in St. Paul.  I thought to myself, man it must suck trying to put out a fire in sub zero temperatures.  I read the article in the paper and the cold weather was mentioned also.  I went to the Google and typed in “cold weather fire fighting”, hoping to get some insights to the hazards and obstacles of putting out a fire in freezing temperatures.  Now I am not saying what came up was conspiratorial, but it was not right also.  The first two pages dealt only with UFOs, then started to move into video games and then into music lyrics?????  I thought maybe the cold fingers mistyped, so I entered it again.  This time the top article’s title was, “USAF ordered to shoot down UFO“.  It was a Youtube link.  I showed this to my Homes for Heroes colleagues.  Everyone was somber and I thought I heard a gasp from one of them.  But after an awkward moment of silence, they all chuckled and went back to their desks, sort of.  Now we have people doubling up on desks that are far away from me.  Not sure why, they are the safe ones, after all it was I that typed those infamous words.  So my question, who is after me?  Is it Google?  They have reason.  I put forth a scenario that they never thought of and it taxed their engine to the extreme.  Maybe I broke Google.  I red-lined the engine and it has not yet recovered.  Is it the government?  Did I stumble across a top secret program that no one is to know about?  Anyway, I think I will have to take it easy on my searches.  I think I will stick to puppies and kittens.  Ahhh!?!  I think I am going to take a long lunch………..Where’s my passport?

Lunch was tense, I could have sworn there was a black SUV following me through the drive thru.  Got back to the office and had another panic attack.  My desk was missing!!  As I started to hyperventilate a co-worker just pointed to the far end of the office.  It seems the office rearranged desks.  One colleague came over to point out that the desks were arranged to keep any flash bangs at least 30 feet away from the closest co-worker.  Neat.  So I crossed the 30 foot blast zone and powered up my computer.  With some relief I find that Microsoft Internet Explorer users are also under a cyber attack.  If you use IE, get the security update.  I use Firefox for my browser and there are some issues, but it works great and it is a smaller target than Microsoft.

NOW LISTEN UP FOR A MOMENT.  WE HAVE A URGENT ISSUE THAT YOU CAN HELP OUT ON!!.  Homes for Heroes received an email today from Hope4Heroes.  This organization helps vets with disabilities and PTSD.  He called on us for help.  He has a soldier that has lost his home to fire, disabled from Iraq, medically retired and 4 of his 6 children are living at home still.  He is in temp housing but will need another place to stay soon.  Please call First Sergeant Luebker at 210-544-3188 or visit his site above if you can offer any assistance.

I also think the Canadian government has taken interest in my blog.  Look at this article about Tazers.  Hmmmmm.

Now some good news for home buyers.  With the feds interest rates at .25%  we may see a drop in mortgage rates.  Keep your fingers crossed. Usually when the feds drop the rates, mortgage rates generally follow.

Now here is an article that has been a topic of discussion between my wife and I for a long time.  I am not sure I want to put this up because it will keep her track record of being 100% correct unbeaten.  This article was a study of pet owners who claim they understand their pets barks and mewings.  We have our Angel and my wife knows each and every bark that comes out of Angels yap.  Ruff, Ruff means there is someone walking down the side walk.  Ruff, Ruff Growl Ruff, Growl means someone walking with a dog.  Ru, means I want to come in now.  Raowwarf means, I want to go out.   I would give you the one for squirrels in the yard but I am trying to keep the word count under 10,000.   So I will have to tone down my skepticism in the future.  Now what will I do for fun?

Okay, I saw this article at Spousebuzz.  It is about military members sending home odd things while stationed overseas.  I can relate to this perfectly.  In my travels around the world I look for the oddest things to buy and send home.  Best place to find those odd things? Grocery stores and the local markets. They make great conversation pieces and in the case of Spousebuzz, great gifts.  Well I don’t think I could separate with my stainless steel chop sticks, or my 4 oz. can of Budweiser, or my “Operation Desert Storm” soda can, and the many other things I have collected over the years.  So the question goes out to the world.  What is the oddest thing you have purchased while overseas, whether on duty or on vacation?  Food can be included.  In fact, one of the oddest items I bought in the Philippines was Balut.  What is Balut?  Well it is boiled duck or chicken eggs.  Doesn’t sound too odd to me you ask?  Well take a look at how you have to eat Balut.  Warning, this will also effect your constitution. So those with weak stomachs or are munching granola might want to steer away.  Enjoy.

Semper Fi

Homes for Heroes in congress, Pookies, buying and Mount Washington

Yes ladies and gentleman, Homes for Heroes is in congressional news. Not really, but the name of senate rule S.1084 is the Homes for Heroes Act. It will provide housing for low income and homeless vets. Please let your law makers know that us vets would appreciate passage of this bill for our brethren who have fallen on hard times. I wonder if they got that name from some where, we did have a big name Senator (once a Presidential candidate) call about the program a little while back……

Housing market news/opinion from radio talk show host Hugh Hewitt. It seems the government is now going to buy up loans held by Fannie and Freddie to free up some of their money. That in turn will allow them to go back to loaning out money. That means that now is starting to be a good time to be looking for great deals on homes. The more homes are bought the more stable the market will become. Pricing will stop dropping and inventory will get back to a more manageable level. So contact your Homes for Heroes affiliate and start buying!

Here is something out of the past, the Pookie. Any one remember the Pookie? I do and seeing the photo brought back the memory of me trying to build a model of one with left over model parts. Still not sure what it is? Another hint then, the name has nothing to do with Japanese cartoons. Still nothing? Well click on the link and have a look for yourself. Go ahead, I’ll wait……………………. Now isn’t that the strangest thing you ever saw? It does kind of tell you what kind of kid I was back in the day. I thought that was the coolest thing put together for its purpose.

I still haven’t seen any stories to top mine yet. And I put some pretty lame ones out there. I have got better stories than just Monkeys and drinking. There is the one where a bunch of us jar heads thought we would take our military training and put it to the test. 12 of us decided to climb Mount Washington in New Hampshire. Well, you’ll have to wait and see who ended up naked in a sleeping bag with another naked Marine! It is not what you think, read the link, the first paragraph should explain how the Marine mind works.

Get busy y’all! Give me something to work with.

Semper fi.

FREE HUNTING LICENSE AND TAX EXEMPTIONS!!

We start our second entry with the highly anticipated story of my promotion to Sergeant. Once the stripes were “pinned” on, my buddies thought it appropriate to stay intoxicated for 48 hours. During this time they worked in shifts not allowing me to pass out, fall asleep or become sober. It is harder than you think to stay drunk that long. I was in Iwakuni Japan and during one of the nights the jar heads managed to talk one of the bar owners in town to let us stay the night. They locked up the booze except for what we bought, then turned down the lights and locked us in. Theres not much else I remember except the hang over lasted about 4 days and I went through a whole lot of aspirin.

I know not much of a story but I bet there are not too many of you who can claim to be drunk for 48 hours straight and live to tell about it! Or will I prove to be naive in the world of binge drinking?

Found out some cool things for you vets living in Minnesota. In the last couple of sessions the MN legislation has passed some laws that I think you should take a look at. One BIG items is that if you have been on active duty in the last 24 months, your
hunting and fishing licenses are FREE!! Also if you don’t have a Hunting Safety Certificate, the DNR does not make you go through the course. I suppose they figure you know how to hunt safely.

Okay here is some thing else I thought was cool. The state of MN passed legislation that if you are a disabled vet, starting for the tax year 2008, you have an exemption on homestead property taxes!! It is good to see that politicians can sometimes get stuff done right.

Matters pertaining to Police. I was bouncing around blogs and came across
“The Chiefs Corner” and the Chief was talking about a new software service from the guys at “Omega Group”. It is called “Crimemapping” and it will send the user alerts when a crime is reported within a selected distance of your home. It is not every where in the states but I think all Police Departments should consider this as part of their community service. I would definitely sign up. Make sure to push this on your local PD.

The Homes For Heroes Foundation is starting to brainstorm on ideas on how to get the word out. We would welcome all ideas and opinions. Since we are just starting out and we are of limited manpower, anyone who has been there already I sure would appreciate some advice. You know, to keep us from reinventing the wheel?!

Next in the series of untold stories, “Don’t throw stones at Monkeys!!”

But then who can top getting promoted? Hope to hear some stories soon.

Houston Realtors and Lenders Needed

    

Help!

Homes For Heroes is in desperate need of at least 2 Realtors and Mortgage Lenders in the Houston, TX area!  We are no longer working with previous affiliates in Houston and we must fill their spots to assist our community heroes with their real estate needs.

 If you are interested and want additional information go to www.homesforheroes.com or call 1.866.443.7637.

 

What is Annual Percentage Rate?

At Homes For Heroes we often have one of our heroes say that they found a lender who will give them the same discount as the Homes For Heroes affiliate does.  That’s great but we caution our heroes to pay attention to all of the fees that they are being charged so that the discount that they think they are getting isn’t made up somewhere else in the transaction.  I am posting an article that we received from Paul House, one of our Houston, TX mortgage affiliates, on the topic of APR.  I was amazed at how this article takes the often misunderstood and confusing topic of Annual Percentage Rate (APR) and actually makes it understandable!  Here you go:

THE TRUTH ABOUT APR’S

APR stands for Annual Percentage Rate

It is also one of the most misunderstood numbers people find when applying for loans. As consumer loans and mortgages in particular, turned more complicated it became necessary to help regulate the way lenders advertise and notify the potential borrower of their interest rates. The attempt was to help people compare similar loans from different lenders and to explain the ultimate cost of credit. The APR is defined as the cost of credit to the borrower in relation to the amount borrowed expressed as a yearly rate. This is required by the federal Truth in Lending Act, Regulation Z.

When you apply for a mortgage the Federal Truth in Lending Disclosure form will be sent. At the top of the page you will see lots of numbers. Two of those numbers are the Note Rate (the actual rate used to calculate your monthly payments) and the Annual Percentage Rate (APR). The Annual Percentage Rate will most always be slightly higher than the note rate because the APR includes other items associated with obtaining a mortgage.

Did you need an interest rate to get a mortgage? Of course. But you also needed some other things. Origination fees, points, mortgage insurance premiums, inspections, prepaid interest and other items may also be required to obtain a mortgage. If so, these things need to be included when calculating the APR. Why is the APR useful? I’ll give you an example:

Great Big Bank offers a 30 year fixed mortgage for 8.00%. Really Small Bank offers a 30 year fixed mortgage for 7.00%. Easy choice, right? Maybe. Before lenders and mortgage brokers were required to state the APR it was hard to tell. Really Small Bank has the lowest rate (note rate) but neglected to mention a few other items.

There were also 7 points, an origination fee, and mortgage insurance required.

Great Big Bank had no points, no origination and just prepaid interest (your first month’s house payment).

On a $100,000 loan, Really Small Bank charged an additional $10,000 when compared to Great Big Bank’s fixed rate loan. You could save an additional sixty eight bucks per month with Really Small Bank’s mortgage but you had to pay $10,000 for the privilege. The $10,000 must be included as a cost to obtain the mortgage and is reflected in the APR number.

Here’s another example: Mr. and Mrs. Smart want to buy a $85,000 home. The Developer of the project they really like has a home and offers an interest rate similar to what they could get at their Credit Union. The Developer quotes 6.00% fixed with no points. The Credit Union also quotes 6.00% with no points but had an origination fee equal to 1 percent of the loan amount (for all practical purposes an origination fee is another name for a “point” if it is expressed as a percentage of the (loan).  BUT WAIT! The Developer failed to disclose there was a 2 percent origination fee!  What looked like a better deal at the Developer’s lender turned out to be higher. If the APR’s were given, it would be evident. In this instance, the APR for the developer would be 6.24% and the Credit Union APR calculates to 6.15% due to the higher fees charged by the Developer. Even though the note rate (the rate used to figure monthly payments) was the same, it cost more at the Developer. Therefore, Mr. and Mrs. Smart (the name is more than just a coincidence) chose the mortgage from their Credit Union.

There are many other examples, but if I’ve still got your attention thus far I won’t want to lose you with boring annual percentage rate stories, except this one: The higher the loan amount, the less impact additional fees or points will have on the APR. Why? If you obtain a mortgage with $2,000 of closing costs and you borrow $10,000, then the $2,000 will be nearly 20% of the loan amount. This increases the cost of your money dramatically.

Usually home equity or home improvement loans show a higher disparity between note rate and APR because of this. Likewise, if you borrow $100,000 and have $2,000 of closing costs then the fees won’t make as significant an impact on the cost of funds. The bottom line is the APR is your friend, a way to compare like mortgages.

The Fees used to calculate the APR?

There are some fees that are excluded from the calculation but below you will find fees typically included when calculating APR:

1. Origination fees

2: Points

3: Buy down funds from the buyer

4: Prepaid mortgage interest

5: Mortgage insurance premiums

6: Other lender fees (application, underwriting, tax service, etc.)

Other fees such as title insurance, appraisal and credit are not included in calculating the APR. The idea here is these other fees are not coming from the lender, and they would be charged anyway, although in the real world, this also may not be true. Like I said we’re talking Federal Government here. Many states now have additional laws that require the lender or broker to state the APR in their advertisements beyond the requirements of the Federal Regulation. When you compare APRs, ask the lender which additional fees are included when calculating their APR. If they don’t know the answer you may want to find a lender that does know. APRs are a way of helping the consumer determine the best loan.

Get to know your new friend!