Get Your Mortgage Phil

Peninsula Living: Chase Away the Winter Doldrums with Toe-Tapping Music!

Lottie Kendall, CA DRE#01215160 Seniors Real Estate Specialist (RE/MAX Today) — Wed, 10 Mar 2010 12:51:36 -0600

Saturday, March 13, 2010 7:30 PM

Admission: $20 general; $15 student/senior

Canada College Main Theatre

4200 Farm Hill Blvd., Redwood City, CA 94062

The Peninsula Cantare's March concert features the toe-tapping music of George Gershwin and the clever lyrics of his brother, Ira. Enjoy the distinctive voice of George Shearing as he sets Shakespeare's words in his jazzy style. For more spice throw in The Beatles and some swinging J.S. Bach. The Cantare's versatile pianist, Alex Bootzin, and the Nucleus Jazz Quartet provide the instrumental accompaniment for this concert of familiar favorites.

You can stay informed about Cantare's Activities by signing up with the Cantare email list!

Lottie Kendall, RE/MAX Today, San Carlos, California

DRE#01215160; 650-598-8137-direct; Lottie@LottieKendall.com; www.LottieKendall.com

A Financial Strategy To Help Sell Your Jumbo Loan Sized Home Or Listing

Wed, 24 Feb 2010 19:49:55 -0600

Are you aware how difficult it is to get a jumbo loan these days? If you are selling your jumbo loan sized home or listing one, what are you doing to make it easier for a long line of qualified buyers able to buy your home?

One strategy you may want to consider is a seller carryback. A seller carryback is financing by the seller, usually in the form of a second mortgage.

The easiest way to understand how a seller carryback works is to look at an example. Suppose you own a home worth $1 million. You owe $300,000. You plan to buy a new home for $1,500,000, and make a 25% down payment of $375,000.

Assuming a sale price of $1 million minus 7% selling costs, you net $930,000. If you pay off your $300,000 loan, you can net $630,000. You only need $375,000 for the down payment, plus $25,000 for closing costs, moving expenses, and a little vacation after all this stress! Now you have $230,000 left over. What are you going to do with these funds?

Suppose you offer a $230,000 seller carryback second mortgage. How does that benefit a buyer:

A smaller down payment may be needed
It takes the financing out of the jumbo category and puts it in the conforming category, which is easier to obtain
It gets rid of the need for private mortgage insurance, which is an additional monthly cost to the buyer
The buyer does not have to qualify for private mortgage insurance, which is very difficult these days

OK, you say, that is great for the buyer, but how does a seller carryback benefit me? Here's how:

You get a higher yield than if you put the $230,000 in a low yielding account
You have opened the door to a larger pool of qualified buyers to purchase your home, therefore
You may be able to sell your home for a higher price because you have reduced the toughest barrier to purchase a home today, financing

Now that we have the benefits of a seller carryback, let's talk about implementation. First, let's talk about what the first mortgage lenders usually require with a seller carryback:

The term must be at least for 5 years
There must be monthly payments (no deferral of payments)
The payments must at least cover the interest
The interest rate charged must be a "market" rate (I interpret this to mean not way lower or way higher than the current market rates)

How do I make myself comfortable, you ask, that this buyer can make the payments? Well, the first mortgage lender will only approve the buyer if they are comfortable with the borrower's ability to pay. There is comfort in knowing that, especially today when almost all of the loans being approved are with full documentation.

To make yourself more comfortable, you can write into your contract that you reserve the right to have a mortgage originator of your choice review the buyer's loan application and package. Be specific - ask to review current paystubs, two years of tax returns and w-2s, the most recent two months of bank statements, and a credit report.

Staging your home, marketing it with massive exposure, and making it accessible are all important factors in getting your home sold. Equally as important, and I think even more important in these days of difficult to obtain mortgage financing, is to have a financing strategy in place to make it easier to buy for a larger number of people. The seller carryback is one tool, the seller buydown is another.

Implement these strategies and sell your home fast for top dollar!

Do you need help structuring a loan, or getting a rate quote? Call me at (650) 222-0386, or e-mail me

Look! Sitting at his desk! It's an accountant! No,it's a telemarketer! No, it's Your Buddy The Mortgage Broker!

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Real Estate Dinosaurs Of San Mateo County: We Are Going To Drive You Into Extinction!

Thu, 04 Mar 2010 07:31:23 -0600

Dear Real Estate Dinosaurs Of San Mateo County,

I, a fellow real estate agent, am writing this letter to you as fair warning, you are soon going to be extinct!

You know who you are. You spend thousands of dollars on your advertising. In your advertising you tell us how you are in the top 1% in the universe in sales. There's a picture of you next to your fancy car. You have pictures of homes that you have sold with a red CLOSED banner draped across to impress us.

Your office is a testimony to yourself. Your top producer trophies are spread throughout your expansive office. Your certificates with alphabet soup designations are perfectly placed to impress us.

Who am I, you may ask? I'm that agent down the hall in that small cubicle. It may not be real impressive, but it is where I am implementing my plan to drive you and others like you into extinction!

It is here where I am sharpening my tools to begin the assault. Don't worry, it won't be bloody, but it will be painful!

I won't be conducting this operation alone. I have teamed up with My Buddy, The Mortgage Broker. He is a social media assassin. He has been trained in the art of social media warfare. And to be quite honest, he does not like you! He has called you in the past to introduce himself, but you have not returned his call. He has a chip on his shoulder. He wants you extinct as much as I do.

We are going to fight fair, so I am going to tell you the tools we are going to use to see your demise.

First, we are going to strike you with our ActiveRain blog. We are going to post content that buyers and sellers are looking for. As a matter of fact, we are going to hit you with content from page one of Google!

Next, we are going to poison you with a viral infection. We are going to post our content on our Facebook Fan Page. Our Fans are going to share this with their friends to make sure your virus spreads.

We've knocked you down, and you are staggering! As you are convulsing with your last breaths, we are going to psychologically destroy you by Tweeting our valuable content right in your face! I told you it was going to be painful!

Your days are numbered, Real Estate Dinosaur - I'm coming to get you.

Sincerely,

That Agent Down The Hall In The Small Cubicle

Do you need help structuring a loan, or getting a rate quote? Call me at (650) 222-0386, or e-mail me

Look! Sitting at his desk! It's an accountant! No,it's a telemarketer! No, it's Your Buddy The Mortgage Broker!

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I Want To Buy This House - How Can I Afford It?

Fri, 19 Feb 2010 15:03:47 -0600

You tell your real estate agent "I want to buy this house, how can I afford it?" It's the house of your dreams - the right number of bedrooms, a great kitchen, and a nice back yard. The problem: it's slightly out of your price range. What are your options?

One option you could choose that can help you afford to buy this particular house is to use the buy-down strategy.

The buy-down strategy is made up of two components. The first component is lowering the interest rate by paying points. One point is equal to 1% of the loan amount. Each lender usually has a matrix of rates and points charged. For example, the matrix might look like this:

8% 0 point
7.5% 1 point
7% 2 points
6.5% 3 points
6% 4 points

(rates presented are for illustration purposes only and are not a solicitation)

Paying more points up-front at the close of escrow means that you get a lower interest rate!

To implement part one of the buy-down strategy, the buyer would choose the lowest rate so that he would be able to afford to buy this house.

Part two of the buy-down strategy is to put language into the contract that requires the seller to pay these points as a credit toward non-recurring closing costs. Non-recurring closing costs are the fees that you pay only once at the closing table, and that do not get charged throughout the life of the loan. An example of a non-recurring closing cost is points!

Here is icing on the cake for the buyer: even though the seller credits for the points paid, the buyer may be allowed to deduct these points as prepaid interest (see Topic 504 from the IRS, and check with your professional tax preparer) in the year that the house was purchased! This could be a huge tax deduction for the buyer!

I have prepared a video example for you to see how this works. As you will see from this video, the buy-down strategy is a win-win for the seller and buyer. The seller opens the door to a larger pool of qualified buyers. The buyer is able to afford to buy the house he wants!

Do you need help structuring a loan, or getting a rate quote? Call me at (650) 222-0386, or e-mail me

Look! Sitting at his desk! It's an accountant! No,it's a telemarketer! No, it's Your Buddy The Mortgage Broker!

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Mortgage in Hillsborough CA

Mon, 22 Feb 2010 10:33:55 -0600

Are you looking for a mortgage for a property in Hillsborough CA? I can help you. I work at RMC Real Estate Loans, located conveniently to Hillsborough on Burlingame Avenue in downtown Burlingame. Our company is a mortgage brokerage that has been existence since 1976.

A mortgage brokerage is a company that helps people that want to borrow money find the best terms for their needs. Our mortgage brokerage has partnerships with many of the largest lenders in the country, as well as others that are not as well known. Why would you call me to get your next mortgage? I will save you money, time, and hassle.

I will save you money in several ways. First, you will have access to the programs of many mortgage lenders. I can submit your application to the lender with the lowest rates for your needs. If you go directly to a bank, you will only be exposed to their particular mortgage programs. Their rates may not be competitive.

Another way I can save you money is by utilizing my ratewatch service to help you decide when to lock in your mortgage rate. This ratewatch service notifies me when their is a significant turn in the mortgage rate market. It makes no sense to let the rate float if rates are moving up. Conversely, it may not make sense to lock in your rate if rates are going down. By staying on top of the mortgage market, I can help you save money by making an informed decision about the best time to lock in your rate.

I can also save you money after you obtain your mortgage. I keep your mortgage information in my database. When the opportunity to save money with a refinance presents itself, I will let you know ASAP!

Time is money. You could spend your time calling a bunch of different mortgage lenders. How many should you call to get the best rate? Well, by the time you determine the right number of calls to make, guess what? The rates have probably changed any way! You're time is probably better spent delegating this task to your mortgage broker, whether it's me or someone else that you trust.

Getting a mortgage can be a real hassle. Now, more than ever, there is a lot of paperwork required - there is no avoiding it. What can be avoided is limiting the amount of phone calls to you asking for more and more documentation. I minimize these phone calls to you by asking for all of the documentation upfront that I know will be required to obtain your mortgage.

Although I can help you with all types of real estate loans, I specialize in jumbo mortgages. If you live in Hillsborough, you most likely need a jumbo mortgage. A jumbo mortgage is any loan amount above $417,000. Between a loan amount of $417,000 and $729,750, these loan amounts are called agency jumbo mortgages. Loan amounts above $729,750 are jumbo mortgages. Our lending partners offer competitive rates in all three categories.

Do you need help structuring a loan, or getting a rate quote? Call me at (650) 222-0386, or e-mail me

Look! Sitting at his desk! It's an accountant! No,it's a telemarketer! No, it's Your Buddy The Mortgage Broker!

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Condos For Sale In Burlingame

Tue, 16 Feb 2010 16:14:11 -0600

Are you looking at condos for sale in Burlingame? Here is a recently listed condo for sale by Mary Ann Teixeira of McGuire Real Estate in Burlingame. A 16% down payment will qualify this property for conforming financing up to $417,000.

Via Mary Ann Teixeira, REALTOR, SRES, GREEN (McGuire Real Estate Burlingame):

Light, Bright, Top Floor, Jewel of a Condo in

Burlingame CA!

425 N. El Camino Real #409, San Mateo

Top Floor Light and Comfort

• Soaring living room ceilings and sky lights, a wood-burning fireplace and an office nook for work-at-home.

• Generously proportioned dining area includes a built-in service counter and open wall pass-through to kitchen.

• Kitchen features rich walnut-finish cabinetry, granite counters, ceramic tile and all new stainless appliances.

• Eat-in kitchen breakfast nook with a light-filled skylight above.

• Master suite features two large closets, a private balcony, a vanity counter housing two sinks, and extra storage.

• Over-sized master shower includes an overhead shower head and an optional hand-held shower wand.

• Additional bath and bedroom with designer colors, and new carpeting.

Additional Features Include:

• 2 bedrooms and 2 full bathrooms

• Roomy 1,317 Sq. Ft. (County Records)

• Private balcony with extra storage

• In-unit laundry

• Amenities of pool, recreation room, billiards room

• Conveniently located near bus lines, easy travel access

• Walking distance to downtown Burlingame

Offered at $489,000

Do you need help structuring a loan, or getting a rate quote? Call me at (650) 222-0386, or e-mail me

Look! Sitting at his desk! It's an accountant! No,it's a telemarketer! No, it's Your Buddy The Mortgage Broker!

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Peninsula Living: Peninsula Symphony Orchestra

Lottie Kendall, CA DRE#01215160 Seniors Real Estate Specialist (RE/MAX Today) — Fri, 12 Feb 2010 13:42:03 -0600

The Peninsula Symphony Orchestra is one of the many organizations that add so greatly to our Peninsula Living lifestyle. Celebrating their 60th season this year, they offer a concert series of 4 performances a year.

Community outreach and bringing music to young people is a special passion of theirs.

They are offering a FREE family concert on Sunday, February 21, 2010, at 3:00 PM. This special concert will be held at the College of San Mateo, and since seating is limited, you are asked to call their office to reserve your FREE tickets. You can reach them at 650-941-5291.

You'll be impressed with the quality of the music, and the generosity of spirit of the musicians. With music programs being curtailed and cut in many schools, this is a delightful way to bring beautiful music to young people.

Everyone is welcome--this is not exclusive to families and young people.

Bravo Peninsula Symphony Orchestra!

Lottie Kendall, RE/MAX Today, San Carlos, California

DRE#01215160; 650-598-8137-direct; Lottie@LottieKendall.com; www.LottieKendall.com

Commercial Loan Success in South San Francisco!

Fri, 12 Feb 2010 18:28:27 -0600

If you think you can't get a commercial loan in today's market, think again! Today, we closed escrow on a self-storage facility in South San Francisco. I am going to describe the terms of this commercial loan for you so that you can get an idea of the appetite for these type of loans, and what was required by the lender to get it approved and funded.

This commercial loan was for $3,500,000. My client refinanced his building in order to consolidate the three outstanding loans on the property, and to get cash-out. He used the funds obtained to pay down outstanding consumer debt. In today's lending environment, obtaining cash-out with a commercial loan is not easy.

Here are the terms of this commercial loan:

6.25% fixed for five years
25 year amortization
10 year term
1 point origination fee

The property appraised for $8,000,000. Prior to receipt of the appraisal, the bank issued a letter of interest stating that they would lend up to 65% of the value of the property.

The bank required that my client move his business accounts to their bank. He was perfectly willing to do this in order to receive these very favorable commercial loan terms!

One of the biggest fees to obtain a commercial loan is the appraisal. The appraisal for this particular transaction had a cost of $2850, which my client had to pay for upfront.

The bank also wanted an environmental report. This report cost approximately $1800, which my client had to pay for upfront also.

Qualifying for a commercial loan is different than qualifying for a residential loan. The lender's main concerns are the type of property, and the cash-flow of the property.

The type of property is important because certain types of commercial property are easier to sell, in case of default, than others. For example, an office building with many different businesses leasing space has more potential buyers than that of a single use facilty, such as a gas station.

The cash-flow of a property is important because a lender wants to be able to generate income from the property in case of default. My client has very good cash-flow because he has done a great job keeping a large percentage of the units in this South San Francisco self-storage facility rented. I am convinced this high-occupancy percentage and the amount of equity are the main reasons he had his commercial loan approved.

Helping building owners and buyers obtain a commercial loan is one of the services I provide. If you need this service, click here and describe your needs. I will do my best to find the best terms for you!

Do you need help structuring a loan, or getting a rate quote? Call me at (650) 222-0386, or e-mail me

Look! Sitting at his desk! It's an accountant! No,it's a telemarketer! No, it's Your Buddy The Mortgage Broker!

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A New Statue In Downtown Burlingame

Tue, 09 Feb 2010 18:33:28 -0600

Have you seen this new statue in downtown Burlingame? I was walking down to the convenience store to get a Diet Coke (I'm addicted), and I saw this statue in front of the former Coldwell Banker office. This office is currently vacant, so it was strange to see this statue implanted right in front of this building.

As I was taking a picture of this statue, one of the downtown Burlingame businessmen yelled at me from the building behind "Hey, what are you taking a picture of that for?"

I said, "I think it looks pretty strange in front of this building, what do you think?"

He said, "Well I do to, and so do a lot of the other business owners. If you don't mind, send your picture to City Hall with some thoughts on what you think of it."

Downtown Burlingame stirs the passions of the city's citizens. It has taken roughly ten years from beginning to an affirmative vote to get a new Safeway built. It took so long for several reasons, but mainly because of the differences of a couple of groups who feel very passionate about the appearance of downtown Burlingame.

I have a feeling that the future of this statue is going to debated in a public forum. It's never boring in downtown Burlingame!

Do you need help structuring a loan, or getting a rate quote? Call me at (650) 222-0386, or e-mail me

Look! Sitting at his desk! It's an accountant! No,it's a telemarketer! No, it's Your Buddy The Mortgage Broker!

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A Loan To Complete Construction In California

Sun, 07 Feb 2010 10:39:28 -0600

Do you need a loan to complete construction in California? I may be able to help you. I have access to private money that will loan to complete construction on a wholesale basis, as well as working directly with borrowers.

There are several reasons why you may need a loan to complete construction. First, perhaps you were funding construction out of your own savings, and have run out of funds that you want to commit to the project.

Second, the project may have become more expensive due to upgrades or unforeseen circumstances.

Third, you may have a loan, but your construction lender may have gone out of business! Ouch!

No matter what the circumstances, if this happens, you need a loan to complete construction. Here are some of the parameters that my private money source in California requires:

First, the loan amount must be between $1 million and $5 million dollars. This source for a loan to complete construction likes the high-rent districts!

Second, the maximum loan-to-value percentage is 65% of the future completed value.

Third, the maximum term is three years. However, most of the time, a loan to complete construction will be one year.

Fourth, the minimum credit score must be at least 640. The credit score used is the middle score of three credit scores supplied by the three credit bureaus.

To apply for a loan to complete construction, there are three parts of the approval process.

The first part of the approval process is qualifying the borrower. This part of the qualification process is similar to applying for a loan to finance a completed home. A loan application, income documentation, and asset documentation must be provided.

The second part of the approval process is qualifying the contractor. The contractor must provide adequate insurance and a resume of completed projects to demonstrate his ability to complete the job in a workmanlike manner.

The third part of qualifying for a loan to complete construction is providing project documentation. This documentation consists of plans, permits, a construction contract, cancelled checks and receipts for work completed, and a list of building materials.

Trying to get a loan to complete construction can be stressful! My best advice is to be organized as best you can with your documentation, starting with the first receipt you have from the beginning of the project. Organization will help minimize your stress level.

Do you need help structuring a loan, or getting a rate quote? Call me at (650) 222-0386, or e-mail me

Look! Sitting at his desk! It's an accountant! No,it's a telemarketer! No, it's Your Buddy The Mortgage Broker!

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Peninsula Living: Edgewood Education Center at Edgewood County Park

Lottie Kendall, CA DRE#01215160 Seniors Real Estate Specialist (RE/MAX Today) — Sat, 06 Feb 2010 07:27:34 -0600

Ground breaking ceremonies will be held on Thursday, February 11, 2010 for the long-awaited Edgewood Education Center which will inspire and teach stewardship of Edgewood County Park and Natural Preserve, a wonder in our own backyard.

Located in the hills of Redwood City Edgewood County Park is frequented by hikers, trail runners, equestrians and families throughout the year. Visitors are drawn throughout San Mateo County and the San Francisco Bay Area to enjoy its spectacular spring flower display.

Learn more about the San Mateo County Parks Foundation, the group that is bringing this to reality. If you enjoy the outdoors and are interested in volunteering with a great group of like-minded people, this might be just the spot for you.

Lottie Kendall, RE/MAX Today, San Carlos, California

DRE#01215160; 650-598-8137-direct; Lottie@LottieKendall.com; www.LottieKendall.com

San Mateo, San Francisco, Santa Clara, Fremont, Novato Copperopolis homes for sale

Fri, 05 Feb 2010 18:58:08 -0600

Mayra Espinosa Active Short Sale Listings in San Francisco Bay Area

Visit My Web Site TO SEARCH THE MLS

Visit My Web Site TO SEARCH REO LISTINGS

Mayra Espinosa
Foreclosure(REO)/Short Sale Certified specialist
Prudential California Realty-San Mateo
1116 S El Camino Real
San Mateo, CA 94044
Cell: 650-996-8961
Website: http://www.sanmateomlslistings.com

Owners Of Homes In Burlingame - Be Aware!

Thu, 04 Feb 2010 15:36:36 -0600

If you own one of the homes in Burlingame, you may want to read this article about details in the proposed budget. The mortgage interest deduction is on the chopping block! Owners of Homes in Burlingame would be effected because many of the homeowners' income exceeds the level that would be effected by this proposal.

Via Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate:

LIMITS ON MORTGAGE INTEREST DEDUCTION was once a "sacred cow" of tax law. No more.

The American home owner is square in the sights of the budget released today.

On October 25, 2008, a bolt of lightening struck me and I realized that there is no income protection safe from the government's zeal to play chess with the American tax payer's assets.

An article published by the Wall Street Journal, back in Oct. 2008, discussed the government's need for cash to fund programs that were being discussed by members of Congress.

These days, the Wall Street Journal discussed the Obama budget's plan to limit ALL deductions for tax payers earning $250,000 or more.

"But as in last year's budget, Mr. Obama proposed Monday to go further by limiting the value of those benefits, which include deductions for mortgage interest and some charitable contributions. The highest-income earners under current law can lower their taxes by up to 39.6% of those deductions; under Monday's proposal, that would be reduced to 28%". . . . .More.

However, unless I'm missing something, the mortgage interest deduction is the primary interest deduction for home owners. Credit card interest, auto loan interest deductions have been gone for years. What's left??

Today, $250,000.

Tomorrow, $100,000.

2 years from now? Who knows?

GOING. . . . GOING . . . . GONE!!!

"SORRY, MR. AND MRS. TAX PAYER, THERE IS NO LONGER A DEDUCTION FOR THE INTEREST YOU'RE PAYING FOR YOUR HOME MORTGAGE."

Do you need help structuring a loan, or getting a rate quote? Call me at (650) 222-0386, or e-mail me

Look! Sitting at his desk! It's an accountant! No,it's a telemarketer! No, it's Your Buddy The Mortgage Broker!

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Trade-Up Home Buying: Nine Points About Financing Every Real Estate Agent And Buyer Must Know

Tue, 29 Dec 2009 18:22:55 -0600

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:

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.
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!
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!.
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!
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.
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!
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.
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!
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.

Knowing these points will help the trade-up home buyer and real estate agent coordinate a multi-faceted transaction.

I originally had the idea of giving ten points - anybody have a tenth for the trade-up buyer?

Jumbo Loan Blog

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Do you need help structuring a loan, or getting a rate quote? Call me at (650) 222-0386, or e-mail me

Look! Sitting at his desk! It's an accountant! No,it's a telemarketer! No, it's Your Buddy The Mortgage Broker!

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Private Money Loan Success In Walnut Creek, CA

Sat, 23 Jan 2010 07:57:29 -0600

I recently helped some clients obtain a private money loan for a home they own in Walnut Creek, CA. Here is the story why a private money loan was the best solution for them.

My clients purchased this home for their daughter and husband. They purchased it with cash, so there was no loan on the property. Title was held by the daughter.

The husband became un-employed, and they were financially struggling. My clients wanted to help them during their rough economic time. Everyone decided that the best option was to deed the property back to the parents (my clients). They contacted me to help them obtain a cash-out private money loan.

A private money loan was the best solution for a couple of reasons. The first reason was we could close a private money loan fast! A private money loan is not as paper intensive and bureaucratic as obtaining a loan from a financial institution.

The other reason a private money loan was the best solution was qualification. My clients would not have qualified for a loan from a financial institution because of issues having to do with changing of how title was held.

The private money loan they obtained was at 11% with interest-only payments and a three year term. I expect they will be able to refinance out of this private money loan to obtain a better rate during the next year.

The private money loan solved the problem, at least in the short-term. Cash was obtained in order to help my client's daughter and her family. The payments are interest-only, which helps keep the payment lower. Most importantly, this private money loan eased the stress level during this rough economic time for this family from Walnut Creek, CA!

If you can't obtain a loan from a financial institution, and you really need money, a private money loan can be a short-term band-aid to meet your goals!

Do you need help structuring a loan, or getting a rate quote? Call me at (650) 222-0386, or e-mail me

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