Monday, November 24, 2014

Let’s Talk Types of Mortgage Lenders Which one is best for you?


When you apply for a mortgage, you are most likely going to apply with one of these three types of mortgage lenders- Credit Unions, Banks, or Mortgage Brokers/ Lenders.  The main things that will play into your decision of which type to use are your credit score and the type of relationship you want to have with your lender.  Each of the three are different in some very important ways.

Mortgage Brokers:

·         Mortgage brokers have access to several lenders and different mortgage programs.
·         Mortgage brokers often can offer better loan programs and rates.
·         They can better meet your individual needs.
·         Mortgage brokers usually have access to wholesale rates and financing options.
·         Mortgage brokers must disclose all of their compensation to their borrowers.
·         Mortgage brokers only pull your credit once, then search for the best lenders for your
       personal needs.
·         They can also find the lenders who specialize in special market niches such as Condo’s,
       Mobil Homes, Manufactured Homes, Land Loans, and Construction Loans.
·         Most often if a mortgage broker cannot meet your needs they suggest other places for you to
       go.
  
Credit Unions:

Most people think that you have to belong to a special group to belong to a credit union,  but more and more we are seeing several credit unions opening up to the general public.  Credit Unions do mortgage loans and are a really good source.

·         Credit Unions are non-profit organizations, they are funded through their members.
·         Credit Unions because of their non-profit status don’t pay taxes which usually result in lower
       rates passed onto you for comparable products.
·         If you have an account with a credit union you are treated as an owner and you get to vote
       on important matters.
·         Credit Unions usually keep their mortgages they write in their own portfolios.  Loans are
       written to their own standards as they don’t usually need to sell your loan.
·         Credit unions usually have lower income requirements.
·         Credit unions don’t usually offer sub-prime loans so they don’t take as many losses which
       can also result in lower rates.
·         Credit Unions are usually insured through the federal government.
·         Credit Unions have less fees

Banks:

Banks usually have many more restrictions.  Here are some of the things to consider in using a bank:

·         Banks usually have only one set of underwriting guidelines and only offer loan programs that
       they have available.
·         Banks will either approve, decline or counter-offer you on their programs as they don’t have
       available different lenders to offer.
·         Banks are usually not required to disclose all of their compensation to their borrowers.
·         Banks have often been known to take longer to process the loan resulting in a longer close
      of escrow period.

My personal opinion on the subject of choosing a lender is to check out each type of lender as the differences above can vary with each individual person’s situation.  Also, lenders often change their guidelines and restrictions so I always suggest to check out your options up front. 

Important:  Check out your options well before you get into an offer on a home as once you place an offer and are accepted there are very strict time frames you must meet to close the sale.  Not planning ahead can lead to loosing the option to buy the home you fell in love with.

Buying a new home there are still many benefits to having your own agent (no cost to you) and you will often do better by using their financing as they may offer many benefits for using them. 

Be careful with on line company's they may offer rates sounding too good to be true and promise quick closing. Often the rates they quote are only for specific clients and not something offered to everyone and a lot of them never meet the quick closing promise.  It can make a big difference having a live person who is in the area, has access to the loan processors and underwriters, and can even visit them personally if issues arrive.  This can make the difference of closing on time or not.

Thursday, November 20, 2014

5 ways to get the best mortgage deal

By Michele Lerner • Bankrate.com

It's much tougher to get a home loan these days. Lenders now are required to perform more due diligence on mortgage borrowers than in the past. And thanks to the Great Recession, many mortgage shoppers may struggle to pass these stricter tests.
But that doesn't mean you have to give up hope. Following are five expert suggestions to improve the odds of getting a loan at the best mortgage rate.

Mortgage shopper's most important move is to request a credit report and make sure it is accurate, according to Cindy Tessier, manager of mortgage processing and closing for Navy Federal Credit Union in Vienna, Va.
Tessier says lenders look to a borrower's credit score when deciding what interest rate to charge, so maintaining a high score is especially important.
"If there is anything negative on your credit report, you need to call the creditor to correct it or to work out a payment plan," Tessier says. "When you apply for a mortgage loan, be sure to provide documentation of any negative accounts, especially if this is something in dispute."
Once the error is corrected, go back to the credit reporting agency to see if the negative item has been updated.
Financial experts also recommend paying off collections and credit card balances before applying for a loan.
Todd Dal Porto, a national sales executive with Bank of America Home Loans, says, "Keep your debt low and the amount of credit you're using under 20 percent of what's available to you. Always paying your bills on time is one of the best ways to maintain healthy credit.

Don't hide flaws such as credit problems, and don't fudge     information about income or assets.
"Take your time to carefully fill out the loan application as accurately as possible," Dal Porto says. "Trying to hide credit problems or holding back requested documents can only work against an applicant by delaying the process and possibly even preventing a mortgage approval."The lender wants to make sure the borrower has the capacity to repay the debt. So applicants should be prepared to disclose all assets and income, Tessier says.
"If you earn overtime pay or a bonus, be ready to provide documentation for extra income," Tessier says. "Make sure you document all your assets, including a 401(k), an IRA, CDs and savings, even if you won't be using those funds for the home purchase."

A large down payment can make a big difference in whether your home loan application succeeds "The more you can contribute to the down payment, the more attractive you'll be to lenders," says Dal Porto.
Contributions from family members or friends for down payment money are allowed by most loan programs. Lenders typically require such contributions to be accompanied by a gift letter asserting you won't have to repay the money.

Don't focus solely on getting the lowest rate. Evaluate your overall budget, monthly payments and fees.
"A home loan is not just about getting the best deal -- it's about getting the right mortgage with no surprises so you can be a successful homeowner," Dal Porto says.
"Everyone should calculate their own debt-to-income ratio, look at the full cost of homeownership and determine how much they can comfortably afford to spend each month."
Tessier recommends borrowers do their homework, comparing good faith estimates and making sure they won't have to pay a prepayment penalty if they decide to refinance in the future.

Monday, November 17, 2014

What is the first step I should take to purchase a home?


This is a question that comes up often from buyers and it is an important first step and worth writing about. 

Your first step should always be to secure a lender if you are planning on getting a loan.   In most cases you have no idea what price of a home you qualify for or what you are comfortable buying based on what the payment would be.  This is the information only a lender can provide you.

Benefits to you:  Knowing exactly what you can afford and what you are comfortable spending based on the payments..

Benefits to your Realtor:  They can then help to narrow your home search based on the homes you could buy and would be most interested in.

Once you have picked a lender, (our next blog will be on the difference between types of lenders)  the lender will provide you with a letter stating that you have been pre-qualified or pre-approved for a certain amount so both you and your agent know what to look for.

The next question people always ask is “what is the difference between being pre-qualified and pre-approved?”  There is a big difference for both you and the seller of the home you intend to buy.

Pre-qualified usually means you have called a lender and told them verbally a little about yourself, how much you earn, how long you have been on your job, etc.  

Pre-approval means the lender has taken the time to ask for specific documents like pay stubs, tax records, run a credit report, etc.

It used to be that just being pre-qualified was good enough to submit an offer on a property, but due to several issues with pre-qualifications it has now become much more important to have a pre-approval (Desktop Underwriting). 

A pre-approval will benefit you in several ways:

1.       It will take you through getting about 90% of the way to a full formal loan approval.
2.       Less chances of unsuspected surprises coming up after you have your heart set on a home.  (Fraud on your credit report, an incorrect amount showing on your credit report, questions around your tax returns, employment dates, etc.)
3.       Stronger offer as the seller will know that your lender has taken the time to make sure you are a qualified buyer.

It may take more time up front to get pre-approved but it is well worth it when it comes time to make that offer.  Your agent has to submit a copy of a pre-qualification or pre-approval at the same time with your offer and the pre-approval will carry more weight with the seller and there agent. 

For information about our preferred lenders call us:

 Steve (916) 425-1100 or Sandy (916) 544-2066

                                     Stay tuned for our next blog (Wednesday) about different types of lenders


Sunday, November 16, 2014

Polar Express Elk Grove Event



Polar Express

I just learned of an event that Elk Grove is offering for the holidays.  Here is a link that will take you to that event   http://www.elkgrovecity.org/events/merry-movie-night.asp 

When you are on this website look to the left and there are City Events – that gives you more events throughout the year. 

There are also a couple of other links that will let you know what is going on in Elk Grove.

 "Picture yourself living Elk Grove” http://www.inelkgrove.com/  

 CCSD’s event calendar,http://www.yourcsd.com/events/ .  




Saturday, November 15, 2014

Holidays Events 2014 Placerville and Roseville

Placerville

festival of lights
Nov 28, 2014  5:30pm-8pm
Historic Main Street in Placerville. The old-fashioned festivities will close Historic Main Street and begin around 5:30PM at various locations up and down Main Street with music, entertainment, visits with Santa, stagecoach rides (4-6pm) and the tree-lighting at 6PM at the Courthouse. Sponsored by the Placerville Downtown Association. For info call (530) 672-3436.
http://placerville-downtown.org/events.html


36th annual christmas parade
Dec 7, 2014 
This big Holiday Parade takes place rain or shine and starts at the Broadway Plaza parking lot on upper Broadway in Placerville at 1pm and continues down Main Street. This year's theme is "Rockin' Christmas."  Sponsored by The Mountain Democrat and benefitting Toys 4 Tots in our community (bring a new, unwrapped toy for a boy or girl). For info call (530) 344-5088 or pick up an application at The Mountain Democrat or El Dorado County Chamber of Commerce offices.
http://placerville-downtown.org/events.html


Roseville

winter wonderland skate party
Dec 5, 2014  7-10pm, Skatetown Ice Rena, 1009 Orlando Ave., Roseville, CA  916-783-8550
Family-friendly; great for all ages! Beginner skate helpers and loaner helmets available. Free skating lesson. $12.50 admission – includes skate rental. Games, prizes, sing Christmas songs, live DJ, laser light shows, black lights and snow play.


TEDDY BEAR TEA
Nov 30, 2014  2-5pm at The Flower Farm  4150 Auburn Folsom Rd., Loomis, CA
Grab the little ones and join us for the 3rd Annual Teddy Bear Tea benefiting Roseville Home Start. Holiday festivities include story time & photos with Santa, carolers, and much more. To purchase tickets visit http://www.rosevillehomestart.org.


BREAKFAST WITH SANTA/KING KANDY’S WORKSHOP
Dec 20, 2014   8am-12:00pm  at the Rocklin Event Center.
This family event is for area preschool-age children and their families. Breakfast is provided by local Boy Scout Troop 29. Attendees are treated to a visit to King Kandy’s Workshop after the breakfast, where they engage in a variety of activities.


PLACER THEATRE BALLET PRESENTS THE NUTCRACKER
Dec 6, 2014  1pm-3pm  at the Placer High School Theater, 275 Orange Street (corner of High & Agard)  Auburn, CA.
Join Clara as she travels to the magical kingdom of sweets in Placer Theatre Ballet’s annual presentation of the holiday classic The Nutcracker. The cast is comprised of over 100 talented dancers representing the greater Placer and Sacramento areas. For more information, call (916) 630-7820.

Holiday Events 2014 Elk Grove and Folsom


Elk Grove

Nov 27, 2014

Elk Grove Event Info   When & Where: Thursday, November 27, 2014 – Thanksgiving Day Starts and Finishes at Cosumnes Oaks High School Kid’s 1/4 mile fun run 9:00 AM 5K/10K  Start at 9:15 AM What Do We Have For You? 1/4 Mile Fun run (for kids 10 and under) – not timed, but they get an AWESOME shirt! Disposable RFID Chip Timing for...View event details...
Dickens Street Faire
Nov 29, 2014    Old Town Elk Grove on Elk Grove Blvd. between 2nd Ave. & Derr St.
Enjoy arts, crafts and food vendors distributed throughout, Free entertainment is available all day at both East & West stages featuring live music, magic acts and more…The children will love playing in the snow park where 15 tons will be brought in.


Breakfast with santa
Dec 6, 2014
Laguna Town Hall  8am – 11am
Santa is stopping by for his annual breakfast at Laguna Town Hall 3020 Renwick Ave., Elk Grove, CA 95758


Parade of lights
Nov 29, 2014  One of the highlights of the weekend in Elk Grove following Thanksgiving is the Parade of Lights! The even follows the Dickens fair and the parade starts at 6 pm.


STAGE STOP MUSEUM Old Fashioned Christmas
Dec 6, 7, 13, 14, 20, 21  2014  1-5pm  916-685-8115

The Old Fashioned Christmas starts with the Black Tie & Santa Event on November 30th.  Please see Black Tie & Santa to order your tickets now.
Beginning on Saturday, December 6, we’re open every Saturday and Sunday from 1 – 5 PM.  Our last day will be Sunday, December 21st.  Don’t miss this opportunity to see the 1850s Stage Stop dressed in its Christmas finest.  Pictures with Santa are also available every Saturday and Sunday.  Come by to experience the beauty of the holiday season! Admission is only $5 and goes toward helping us maintain Heritage Park.



Folsom

Folsom Ice Rink
Nov 11 -   Open daily, 10 am to 10 pm. including Thanksgiving and Christmas Day!
We do make every effort to stay open during all weather conditions unless the conditions become unsafe for our visitors. If weather conditions are extreme please call 916-985-4181 in advance to ensure we are open.
(please note: last session begins at 8 pm)
http://www.folsomicerink.com/

historic Folsom tree lighting
Dec 5, 2014  6-9pm,  Rain/Snow or Shine. 
Located in the plaza at the ice skating rink. The tree will be lit at 7:30pm, Free train rides and performances beginning at 6:30pm at the ice rink.


47th annual christmas arts & crafts fair
Dec 6, 2014  8am-4pm  Sutter Street is filled with quality arts, crafts and gifts, the fair is the perfect place to complete your Holiday shopping plus fum for the whole family! Live music, carolers, face painting  and much more. The event is rain or shine.


historic Folsom holiday home tour
Dec 12 & 13 2014  2014 Historic Folsom Holiday Home Tour features 9 charming historic sites decorated for the Holidays, a lovely art and hand-crafted holiday gift boutique at the Murer House, musical entertainment and an opportunity to enjoy the season as you step back in time. Tickets are $20 and be purchased at the following locations: Dorthea’s, Folsom History Museum, Folsom Chamber of Commerce, Green Acres Nursery-Folsom, Murer House, Not Too Shabby and Raley’s – Blue Ravine.
Event Contacts:  Candy Miller 916-988-7699 and Mary Asay-Skiles 916-456-1012.


Holiday Events Sacramento 2014

Holiday Events 2014

Sacramento Area

Trans-Siberian Orchestra
Nov 26, 4pm          
Sleep Train Arena, 1 Sports Prkwy, Sacramento, CA 95834
http://www.ticketmaster.com/TransSiberian-Orchestra-tickets/artist/780815

Sacramento Holiday Ice Rink
November 7, 2014 to January 19, 2015
Downtown Plaza, 701 K Street


2014 Singing christmas tree
Dec 5 to Dec 14
Capital Christian Center is pleased to announce the 58th annual presentation of Sacramento’s Singing Christmas Tree. This year’s presentation is entitled Radio Days. The Singing Christmas Tree features the Capital Choir, a 40 piece symphonic crchestra, the SCT Vocal Ensemble, the Capital Children’s Chorale, and the SCT Choreography Team.

OLD SACRAMENTO UNDERGROUND TOUR

Nov 14, 2014 - Dec 14, 2014

This event occurs weekly on Sunday, Thursday, Friday and Saturday.It’s the best time of year to experience what Old Sacramento Underground Tours have to offer!  Hidden beneath the city for nearly 150 years, Old Sacramento’s underground has long been the capital’s best-kept secret.  Underground tour visitors have the unique opportunity to uncover the facts behind the legends that lie below historic buildings and sidewalks. Tour...View event details...

FESTIVAL OF TREES

Nov 23, 2014

Don't miss the 2014 Festival of Trees featuring "A Taste of Northern California" with special guest Petri Hawkins-Byrd, area restaurants.provide hors d'oeuvres & desserts,live holiday music provided by Joyous Brass & activities for the kids; auction & raffle. Festival benefits The Birth Connection, a local non-profit dedicated to keeping children out of foster...View event details...

6TH ANNUAL THEATRE OF LIGHTS!

Nov 27, 2014 - Dec 31, 2014

This event occurs weekly on Sunday, Thursday and Friday.Make your holidays magical this holiday season…don’t miss Old Sacramento’s 6th Annual Theatre of Lights!  The free outdoor performances artfully mix the historic charm of Old Sacramento with state-of-the-art sound and lighting technology to create a memorable and visually-exciting holiday experience for visitors of all ages.  Old Sacramento’s Theatre of Lights...View event details...

THE NUTCRACKER

Dec 6, 2014 - Dec 21, 2014

This event occurs weekly on Sunday, Friday and Saturday.Best-known and most beloved of all Sacramento Ballet productions, Ron Cunningham’s The Nutcracker has been seen by hundreds of thousands of people. The images of young Clara battling the Giant Mouse King, being saved by her Nutcracker Prince, and then journeying to the magical Snowflake Forest and Kingdom of the Sweets have become a part of our culture. Joining the professional company inView event details...

Wednesday, November 12, 2014

This is what the California Association of Realtor's had to say about 2015

Monday, November 10, 2014

Flipped Homes

Over the past few years buyers and sellers have come to know the term “Flippers” in the real estate business.  Investors who buy primarily run down homes, fix them up, and resell them in  a short period of time.

In an attempt to protect buyers, FHA put restrictions on buying flipped homes, (90 day requirement on the seller owning the home before refinancing could be done with FHA).  As the housing crisis continued FHA waived these standard restrictions in an effort to stimulate sales in hard hit areas, (About 100,000 homes were resold using the waiver).

Now, FHA has plans to return to their previous guidelines beginning in January 2015, (per an article out of Washington DC).  This appears to mean that no contract can be written, no escrow opened, no appraisal ordered, nothing done during the first 90 days from the time the owner purchased the property. There will probably be additional guidelines to better define who this will impact but it is important to know this seems to be coming.

What does this mean to you as a buyer or seller?  Only investors who are flipping will be affected as a seller (we aren’t seeing to many flipped homes coming on the market as it has become harder for the investor to buy homes at a price point that makes sense for flipping).   This will only affect Buyers who are buying a recently flipped home (one purchased by the flipper in the last 90 days) it will prevent them from getting an FHA loan and therefore purchasing the home.  Your real estate agent can advise you on the time frame on each flipped home you may want to purchase. 


General signs of a flipped home, new paint, carpet, counter tops and appliances.  If a home appears to have been redone for selling it is wise to have your agent check to see when that home was purchased by the current owner.

Friday, November 7, 2014

Picking the Right RE Company and Agent

How to Pick a Real Estate Co
And a Good Agent

There are so many Real Estate Co’s to choose from and even more agents. What should you look for?

5 Good Questions to ask about the Real  Estate Co.

  • Is the company well known in the area?
  • What is the company’s track record?
  • Does the company provide on going training for their agents?
  • Does the company require every agent to go through legal training every year presented by a Real Estate Attorney?
  • Does the company provide state of the art technology for marketing your home or finding your dream home?

Company’s who have a name that is well known in the area usually draw more buyers and sellers to them, making your exposure better as a buyer or seller.  Past track record will give you solid information of how successful they have been in the past for helping people.  Training is so important for agents no matter how long they have been selling Real Estate.  The market changes, buyers and sellers change, lending rules change, technology changes, paperwork changes and agents need to be kept up on all of these areas.  Having good training on the current laws and paperwork is so important to protect you as the buyer or seller of a home.  As generations change and we begin working with buyers and sellers across generations we have to always keep up with the newest technology to best service our clients.  As an agent it is impossible to keep up with all this on your own, you are busy working with people and not always aware of all the new laws, rules, paperwork changes or technology. 

10 Good Questions to ask Yourself about the Agent

  • Do they work for a good company?
  • Do you trust them?
  • Are they readily available to you?
  • Do they ask good questions to clearly understand your wants and needs?
  • Do they listen to you?
  • Can they answer all your questions on a timely basis?
  • Can they provide solid and reliable information about the market?
  • Are they honest and reliable?
  • Are they willing to earn your business?


All these questions are very important as they are responsible for one of the largest monetary transactions you will probably make in your life.