Get Your Mortgage Phil

Trade-up home buying has a different set of issues to conquer than the first-time home buying process. The first-time home buying process is about education. The first-time home buyer is figuratively diving into the water for the first time. Whether they make a beautiful swan dive or belly flop depends a lot on how well they were educated before they entered escrow by their real estate agent and mortgage originator.

The trade-up home buying process has an element of education, but it is more about coordination. How does the trade-up buyer coordinate the sale of their existing home with the purchase of their new home? Here are nine points that the trade-up buyer and their real estate agent  need to know about in terms of financing to successfully coordinate the disposition of their current home along with the purchase of the new home:

1. Loan approval does not necessarily mean that you should release loan contingency. A loan approval always has conditions. If you are selling your current home, one condition lenders usually have is a copy of the closing statement from the sale of the current home. What happens if your buyer backs out? How comfortable are you with the ability of your buyer to buy your house? You need to find out all of the conditions from your lender so that you know exactly what has to happen in order to get your loan. Do not release loan contingency until you are aware of the conditions and are confident that you can satisfy these conditions.
   
   
2. Your mortgage originator needs your tax returns, even if the loan approval does not require it. Here is why: some of us try to minimize the amount of income tax we pay. Some of us use form 2106, which allows us to report unreimbursed business expenses on schedule A of our tax return. Lenders deduct this amount from your income for qualifying. Sometimes the lenders will not ask for tax returns, but they almost always ask for form 4506-T. Form 4506-T is a summary of the tax return you have filed with the IRS. If you have unreimbursed business expenses claimed, the lender most likely will re-underwrite the file and may even deny the file because your income is not as much as originally presented! Give your tax returns to your mortgage originator to prevent this problem upfront!
   
   
3. If you plan on renting your current home, you may not be allowed to use the rental income to qualify. I recently wrote a post about this subject - Before You Advise Your Client Rent Their Current Home And Buy Another, You Need To Know This!.
   
   
4. If you plan to sell stocks, bonds, and/or mutual funds for the down payment, you are best served selling prior to having your file underwritten. Here is why: If you do not provide proof of liquidation, many lenders will value the worth of your holdings at 70% of the verified amount. Without proof of liquidation, the lender my determine that you are short on cash to close escrow, even if in reality you are not. Prove it now to save headaches later!
   
   
5. Are you trading-up because of a job transfer? Here is what you need: an employment offer letter, clear of any conditions (drug test is an example), and an affidavit signed by you stating that you will provide a paystub within 30 days of closing.
   
   
6. Try your best to nail down your loan amount and your interest rate up front! Here is why: If you increase your loan amount and/or change your interest rate after your lender has sent their initial disclosures, they may require re-disclosure and a new seven day waiting period before they can close escrow! Set it and forget it!
   
   
7. Take care of your credit score before you write an offer. Most lenders use the middle score of three credit repositories. In addition, the qualifying score most use is the middle score from the borrower with the lowest score among all the borrowers involved in the purchase. Credit scores can be changed if there are errors on the report. Work with your mortgage originator to make these changes now rather than while you are in escrow. 
   
   
8. If you want an impound account, set it up after the close of escrow. Here is why: cash to close is one of the issues that often causes a headache at closing. Impound accounts require more cash to close. Why complicate an already stressful situation? Close escrow, call your lender, and then set up the escrow account when there's not as many hoops to jump through!
   
   
9. Don't count on 100% of your retirement funds as cash reserves. Most lenders are now only counting 60% of the value of retirement funds as cash reserves. For example, if you have $20,000 in retirement funds, the lender will only value these funds as $12,000.  

Here is the latest about the home buyer tax credit. If you are looking to buy a home in San Mateo County you should probably familiarize yourself with the requirements to qualify.

The home buyer tax credit is going to be extended to move-up buyers. What kind of impact do you think this will have on the real estate market in San Mateo County?

It happens more often than not these days when a buyer finds a great piece of property, places an offer on it, the offer gets accepted without delay, the financing gets approved in 2 days through FHA and then the buyer gets "Buyers Remorse".

Is that a bad thing? Does it have to take 3 months before a buyer finds a nice property, the loan which was denied at first gets approved then the buyer is convinced that they have found a treasure? Is that what it realy takes for a buyer to commit?

I have yet not been able to answer this question. Maybe you can give me your input on it.

Soren Darougar
Prudential
San Mateo

price:$1,950,000 MLS#/ListingId:80934264 Property Type: Single Family Square Feet: 2,930 sqft Year Built: 1958  

This San Carlos,CA home for sale in Devonshire Canyon sits on an oak studded 1.17 acre parcel at the very end of Devonshire Canyon in the hills behind San Carlos, this classic California home for sale offers the seclusion and aesthetics of a bygone era with all the modernn conveniences. The original home,nestled under an oak canopy,has been renovated by the family with carefully selected mid century details and updated systems featuring the most current amenities. This home for sale was built in 1958 by Francis Duffield,a local contractor and San Carlos resident since 1947 and this is it's first time on the market. This home for sale Originally built with a stable behind the pool site,access to canyon trails still exists. This San Carlos, CA home for sale in Devonshire Canyon is a Mid Century Rancher With Modern Amenities On A 50,000+ Square Foot Parcel. There are many possibilities with this home for sale- a stable, guest cottage, boat and RV parking. This home for sale is truly a unique property- a secluded private country setting yet minutes to downtown San Carlos and acclaimed schools.

this home for sale will be open for previewing: sunday, August 09, 2009 1:30 PM - 4:30 PM

median home values in Devonshire Canyon are around $1,253,100

median rental price in Devonshire Canyon $2,042

the most popular range of home values in Devonshire Canyon is $1,032,000 - $1,548,00 representing 43.1% of home values in Devonshire Canyon.

making this home for sale above average. 

San Carlos Elementary School District
San Carlos residents are served by the San Carlos Elementary School District. 

Students in San Carlos can attend one of two public high schools (Carlmont & Sequoia High Schools) operated by the Sequoia Union High School District.There are also charter high schools that serve San Carlos high school students - Aurora High School which is operating now and San Carlos High School which is scheduled to start offering classes in Fall 2003.

This San Carlos, CA home for sale in Devonshire Canyon is within minutes of 8 parks located in San Carlos, CA. My favorite park is Cedar park. Cedar Park is minutes away from this home for sale one of the smaller parks in San Carlos, as it occupies only 2/3 of an acre. But that’s actually part of what makes it attractive. Since it’s on the smaller side and relatively unknown, this park isn’t usually all that busy. The playground equipment is relatively new, and is similar to what you’ll find at Burton Park…There’s also a full-sized basketball court. Even though the park is a little out-of-the-way, it’s still only a few blocks from the northern stretch of downtown San Carlos and this  beautiful home for sale. So it’s a snap to grab a sandwich at the Bullpen Deli or a coffee at Starbucks, and within a few minutes you’re enjoying a quiet lunch break outdoors. Downtown San Carlos is only a few blocks away, so getting food for your picnic is a snap.

San Carlos, Spanish for Saint Charles, is a city in San Mateo County on the San Francisco Peninsula. It is a small residential suburb located between Belmont to the north and Redwood City to the south.

Events throughout the year bring locals and visitors to the streets to celebrate. Included in the things to do in San Carlos all within minutes of this home for sale:

The 19th Annual San Carlos Summer Concerts 2009 Presented by Mills-Peninsula Women’s Center are held Friday Evenings 6:00 - 8:00pm July 10 - August 14 at Burton Park full schedule of concerts

also minutes away from this home for sale is the Hiller Aviation Museum. which features:50 aircraft exhibits and numerous displays such as 1869 “Avitor” Hermes Jr. (first aeroplane to fly - unmanned); 1883, 1905, & 1911 gliders (Montgomery); 1911 Eugene Ely’s Curtiss Pusher (the first plane to land on a ship); 1913 Lincoln Beechey’s “Little Looper” (first aerobatics airplane); 1945 Hiller 360 (first inherently-stable helicopter to be licensed by the FAA); 1955 Flying Platform (first ducted fan, man-carrying, VTOL aircraft); 1956 XROE Rotorcycle (fully collapsible helicopter); 1970 Boing 747 cockpit (interactive display). The Hiller Aviation Museum Phone: (650) 654-0200 /601 Skyway Road. San Carlos, CA 94070.

There is also a Museum of San Carlos History located at 533 Laurel Street in San Carlos that is open to the public. Just minutes away from this home for sale

Hometown Days, the Art & Wine Faire and the Heritage Walk. Call (650) 802-4354.

Hot Harvest Nights - Farmer's Market Thursday Nights. Held on Laurel Street minutes from this home for sale in Downtown San Carlos, Hot Harvest Nights features displays and goods from local San Carlos merchants and farmers from the area. With all of its features and all of the great goings on in the community this home for sale is a must see.

                                                                                                                      Tom Stone

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Direct: (650) 596-5451
Home: (650) 594-9103
Mobile: (650) Tom Stone

Direct: (650) 596-5451
Home: (650) 594-9103
Mobile: (650) 483-9103
Email Me