Archive for July, 2009
Trying To Time The Bottom Of The Market Before Buying Your Rancho Bernardo Home? Ten Points To Talk About With Your Lender
July 25th, 2009 Categories: 4S Ranch, Brookside Escondido, Carlsbad, Find Your Home, Mortgage News, Real Estate News
Are you thinking of buying a home in Rancho Bernardo? If so, with the world of financing having been turned upside down in the last year, reviewing your options is what our team recommends to our clients and in conjunction with our team’s lender.
The right or wrong decision when signing your home mortgage can mean thousands of dollars difference in interest paid. There are very important considerations to evaluate before you commit to a 15 or 30 year note. For many of us, our mortgage payment is the most important financial decision we’ll ever make. Doesn’t it make sense to know as much as possible about the financing of our home? Take the time to thoroughly investigate all of your options!
Unbelievably many of us sign the first mortgage placed in front of us. Typically the excitement of the new home purchase reduces the mortgage to not much more than an afterthought. What you read here could save you hundreds or even thousands of dollars. Your real estate professional has established relationships with the top lenders in your area. By aligning yourself with a professional agent you ensure all the financial steps are taken care of properly and economically. 
1. Utilize a Lender With Established Ties to an Agent- Lenders are much more flexible with the real estate agents who have done business with them previously. Their relationship establishes them as a team member. The lender and agent work effectively together. That’s why a good agent can make substantial difference in setting up the most economical financing. And the right financing can, literally, save you tens of thousands of dollars over the life of your loan!
2. Don’t Attempt Paperwork Alone- All the paperwork required to complete the purchase of a home can be quite intimidating and frustrating for a home buyer. Make sure you have your lender help you with all the paperwork. Get help from your team, your lender and agent. Their expertise will help alleviate the stress and it will prove to be invaluable before you sign your mortgage.
3. Look at All Your Options- Make sure you see at least 3 loan programs for your mortgage. Lenders have at least 5-7 programs and should work with you and your agent on deciding what is best for your circumstances. Evaluate all your options. After all, it’s your money you’re spending – not theirs!
4. Demand Service- There is little difference between a bank, savings and loan, or a mortgage broker when it comes to the competitiveness of their loan rates. The difference is in the service they provide. It is their job to serve you! You want to get the loan approved and move into your new home as quickly as possible, but don’t overlook the fact that you are the one spending the money and they are the ones who should cater to your needs. Don’t let the process become so intimidating that you lose that understanding.
5. Stay in Complete Touch- You should receive a written report from your lender concerning every step. This will ensure that no details are overlooked and there will be no surprises.
6. Don’t Give Up on the First No- Initial decisions are not always final decisions. Going to a higher authority can sometimes get you the loan, but do so with the assistance and compliance of your lender and agent. Many times, special circumstances, when explained properly to the person in charge, will win you the loan.
7. Don’t Wait for the Bottom of the Market- The odds of your hitting the bottom of your market are about like the odds of you hitting your state lotto! You will almost never hit the bottom of a market. And trying to time it exactly right is often costly. It usually causes a person or family to miss out on the opportunity to purchase a very nice property. You’re better off simply negotiating the best rate and terms you can at the time you find a property. If interest rates go down, you can refinance. This is a much better approach because you won’t miss out on the property you’ve spent so much time locating.
8. Be Honest With Your Lender- Your lender wants to help you with your loan. The only time they get paid is when you get approved. The more information (good or bad) you provide your lender, the easier it will be for them to get an approval. It helps them present the loan in the best light. This in turn helps the loan get the highest approval rating.
9. Become Completely Educated- Pick your lender’s brain. Lenders will teach you all about your various options, even if you haven’t found the right property yet. They will be very patient with you while you are looking, especially if you have aligned yourself with the right agent. They understand all the up-front work will pay off in future business. Your agent will then continue to refer people to the courteous and service-minded lender on down the line.
10. Get Pre-qualified- Lenders will provide you with a certificate of pre-qualification. By getting pre-qualified, you know exactly what financial parameters to stay within. Your agent and lender will consult with you and help you get qualified for the loan that best fits your needs. Many times, they are able to get you a larger loan than you may have thought possible.
Getting approved for a loan is often times much easier than you might think. If you’ve been house hunting in Rancho Bernardo, you know that prices are at levels we haven’t seen in years. Great neighborhoods, excellent amenities and fabulous prices and loan rates make this a perfect time to buy. So if you are really trying to time the bottom, remember that we won’t know what it truly was until it’s passed.
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Condition Of The Property: What Lenders Will (And Won’t) Lend On
July 17th, 2009 Categories: Brookside Escondido, Carlsbad, Mortgage News, Real Estate News
The New Reality In Today’s Market
With today’s focus on the value of residential real estate, one of the most critical aspects of purchasing a property is it’s physical condition. The professional appraisal required to obtain financing is a very comprehensive analysis of the property’s value, including condition. In particular, when a Buyer is looking at foreclosed or bank-owned properties (known as Real Estate Owned or REOs) the property’s physical condition will come under very close scrutiny by both the appraiser and the lender.
Certain property conditions will be considered normal wear and tear, while others indicate a need for freshening up. Still other physical aspects fall into the category of health and safety issues. It is this latter category that concerns lenders and may affect the ability to obtain financing.
Financeable – Minor Deferred Maintenance and Functional Obsolescence
Those are mouthfuls, aren’t they? Common examples of deferred maintenance can include worn carpeting, neglected landscaping or the need for fresh paint. Functional obsolescence refers to issues such as obsolete floor plans (I.e. three bedrooms and only one bathroom), outdated fixtures or old-style floor or wall heaters. While these conditions may affect the over-all value of the property they are generally acceptable to lenders and will not (in most cases) affect the ability to get a loan.
Non-Financeable – Health and Safety and Structural Issues
This is the area where some Buyers are finding it difficult or impossible to obtain financing. These conditions can be found in any property but are more likely to occur with foreclosed, bank-owned properties:
- Open walls – holes knocked into walls or other damage
- missing fixtures or cabinets
- damaged or non-existent flooring – exposed concrete or subfloor
- roof with less than 5-years of remaining life
- a non-working pool or spa
- cracked foundation or slab
- extensive water damage or mold
- inoperable, damaged or missing heating systems
- damaged electrical or plumbing system
These conditions are generally not acceptable to lenders and unless they are remedied will disqualify the property for conventional financing.
Solutions – Yes, There Are Some!
Some Sellers may be willing to fix or repair the problem or credit the Buyer an amount of money to account for it. Of course, the Buyer also has the option of curing the problem at his or her own expense. However, the condition must be taken care of and verified by a follow-up appraisal report before the lender will agree to finance the purchase and the sale can conclude. If the Seller is a bank or lender, some may be willing to cooperate with the Buyer while others are selling the property strictly “As-Is”. Another option is to seek non-conventional financing such as “hard-money” or perhaps a construction or rehab loan. While an option, these types of financing are often difficult and/or expensive to obtain and ultimately may not be a viable alternative to the average home buyer or investor.
This is an area where a little knowledge will go a long way for the typical real estate Buyer. Being aware of how the property’s condition can affect your financing at the beginning, rather than several weeks into your escrow, can save you more than a few gray hairs!
Contact Paul at (800) 775-7334 or paul@mycwmtg.com
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Sue Johnson of HotOnSanDiego Earns Prestigious GRI Designation
July 8th, 2009 Categories: Real Estate News
Sue Johnson has earned the prestigious GRI (Graduate of Realtor Institute) designation. She joins other top producers in the residential real estate industry who hold the designation across the nation.
Sue Johnson earned the “Graduate REALTOR® Institute” (GRI) designation by attending a specific, intensive series of a minimum of 90 hours of classroom instruction, covering a variety of subjects including: contract law, professional standards, sales and marketing, finance, and risk reduction.
In addition, she has learned the fundamentals of brokerage and other areas of real estate specialization. With this designation and through increased awareness of current topics important to the real estate professional, such as legal issues, these REALTORS® can better serve prospective clients and customers.
The REALTOR® Institute is designed to educate practitioners about local, state and national real estate practices that affect them, their clients and customers. The Institute is taught by leading real estate professionals from around the country.
The GRI designation sets the individuals who have attained it apart from other practitioners because it indicates to the public that the individual has obtained a professional educational foundation on which to base the services they provide and that they are a member of the NATIONAL ASSOCIATION OF REALTORS® .
Obtaining the GRI designation is a beneficial way for a REALTOR® to advance their professional image. The extra measure of knowledge and prestige achieved by completing this course work is a tool that will advance a career in real estate on attracting and building new business.
The REALTOR® Institute has been in existence more than twenty-five years old and has graduated thousands of REALTORS® .
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