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The Straight Truth

By Jennifer Beeston @ Guaranteed Rate Mortgage

By Jennifer Beeston | Mortgage Broker
or Lender in California
  • 3 Ways to lose your lender: Realtor Edition

    Posted Under: Market Conditions in San Francisco, Home Buying in San Francisco, Agent2Agent in San Francisco  |  July 9, 2014 2:52 PM  |  50 views  |  3 comments

    Overall most Realtors are fantastic and many of the Realtors I work with I consider close friends.  After years in the trenches together you form a bond.  There are however some Realtors who as a lender you just do not want in your life. Below are three things I have seen realtors do that would cause any lender to ditch them. 
    1) LIE ON THE CONTRACT:  Last year owe worked with a Realtor who often lied on contracts.  He did this because he said it was the only way he could get his clients offers accepted in today's competitive climate.  He would write a conventional contract for an FHA borrower.  He would submit his offers without prequal letters since we refused to do inaccurate letters.    He would waive all contingencies for clients who were in no position to waive contingencies and basically put everyone in a terrible position.  By removing all contingencies on the contract the buyers had no chance to back out if for some reason they did not want to move forward with the purchase without losing their deposit. Every contract he wrote had a high deposit too; usually most of the borrower’s down payment.   From a lenders perspective it was terrible.  You had buyers who were in a terrible position, a listing agent who had been lied to and a buyer’s agent who bullied every buyer into closing. Every transaction he would say he would never do it again and then he would do it again. Needless to say it was not a relationship we kept.
    2) Double up on Lenders : The same agent that lied on his contract would also use multiple lenders on transactions.  He would tell the buyer to "double app" which means the buyer would be working with two lenders to secure the loan.  They were always told to never tell the lender what they were doing.  He would then have the buyer close with whoever was fastest regardless of rate or fee.  Doing a loan in today's world with all the government compliance is not a easy thing and lenders only get paid when the transaction closes.  So as a lender if you do a purchase and have loan docs to title in 20 days but the other company had them there in 19 days he would have them close with the other company even if your rate and fee were lower. You would only find out there was another lender involved at the end.  Guess what the lenders team who spent the last 20 days securing the loan just worked for free.   

    3) Send inappropriate pictures etc..; If your other lender sends you pictures from her bubble bath, please don’t send them to me.  I don’t want to see them and there is not a chance in the world I will ever send you anything like that. I am a lender not adult entertainer.  In addition “what are you wearing” is not an appropriate opening line and to respond to one Realtor who asked my partner and I when we went to his office five years ago “would we dance for his business” the answer is still no.   And yes male lenders deal with this too.  I have male lender friend who was invited multiple time by a powerful Realtor to go hot tubbing with her swinger friends. He declined. 








  • Insiders View: What's going on in Real Estate year to date

    Posted Under: Home Buying in Santa Rosa, Home Selling in Santa Rosa, Agent2Agent in Santa Rosa  |  July 8, 2014 12:28 PM  |  51 views  |  No comments

    It has been quite a year so far.  I have not had a chance to keep up with my biog as I have spent the first half of the year adapting to the crazy environment we call 2014.  The year started off slow with Mortgage business across the country down an average of 20%+.  Realtors who have been in the business for twenty years + said the beginning of 2014 was the worst few months in their careers!  With very limited inventory and multiple counter offers on every available property we were seeing it take 10+ offers to get a deal accepted at the listing price.  The buyers who ere getting the homes the first 4 months were going way over asking with in some Bay areas the purchase price being 30% above the list price.   This led to  "clean out" of sorts in the mortgage industry.   I watched as other mortgage professionals who once were doing 4 million a month went to zilch and even saw one of them switch careers to become a masseuse. Had the slow down lasted another few months we would have been left with only the true professionals which would have benefited buyers immensely. 

    Realistically the slow start was a blessing in the mortgage world since the new QM rules have increased the amount of processes and paperwork our processors need to do to meet all the new requirements.  Do the rules really affect borrowers?  Not in the obvious manner but in terms of workload for mortgage companies their is definitely a change.  Our internal staff has had to cope with yet another set of rules and restrictions and T's that need to be crossed.  The loan processors who are surviving in today's world are truly rock stars, 

    We started to see a pickup in April with rates coming down quite a bit in May leading to a flurry of activity. Refinances which were non existent in the first quarter came roaring back.  The hottest loan right now is getting borrowers out of FHA into a conventional loan.  The increase in purchase Prices in the first quarter let to increased home values which is helping to get FHA borrowers out of their loans in 6 months from when they purchased.  This coupled with the current low rates is a huge benefit to buyers and homeowners.   

    Overall the market is coming back to where we were last year in terms of mortgage demand and home buyers looking.  As a buyer we are seeing the market dominated by sellers who are actually people instead of banks and short sales.  This is a great sign that our market s finally recovering.

    Jennifer Beeston
    VP Mortgage Lending
    Guaranteed Rate Mortgage
    707-478-0637
    Questions?  Please email me at jennifer.beeston@guaranteedrate.com

  • Jumbo with only 10% down and no monthly mortgage insurance. One loan NO HELOC

    Posted Under: Home Buying in San Francisco, Financing in San Francisco, Agent2Agent in San Francisco  |  May 6, 2014 8:18 PM  |  537 views  |  No comments
    Jumbo mortgage with only 10% down and no monthly mortgage insurance and no heloc.  This is a very special loan that noone else is offering. 

    Basic requirements to qualify for the loan
    1) Owner occupied purchase or rate and term refinance
    2) Minimum 720 credit score
    3) debt to income below 41%
    4) Max loan amount $850,000
    5) The Rates on this are LOW! 

    Call or email today for more information and to get qualified!
    Jennifer Ready
    VP Mortgage Lending
    707-478-0637
    jennifer.ready@guaranteedrate.com
    or apply online at
    www.guaranteedrate.com/jenniferready
  • Conventional with 1% down! The #1 loan that is going to make this spring market boom under $417,000

    Posted Under: Home Buying in Santa Rosa, Financing in Santa Rosa, Agent2Agent in Santa Rosa  |  February 28, 2014 8:30 AM  |  899 views  |  No comments

    I do an average of 60 prequalification’s a month.  Of those 60 maybe 25 are ready to buy right now.  The issues holding up the other 35?  Down payment.  They are close but do not have enough saved.  Well we have a solution for that!

    Conventional with 1% down.  Yes conventional with 1% down.  It is not a government loan.  This is an easy fast  loan.  No prepayment penalties.  Clean, vanilla 30 year loan.

    Basically the client receives a grant for 4% which with their 1% makes a 5% down payment.  The mortgage insurance is the same as if they brought their own money in to do 5% down.  And since this is a grant it is free money!!!  No payback, no silent 2nd, no tricks.

    The program has very few requirements and we underwrite it in house at guaranteed rate so there are no delays or extensions needed for closing times. Please note very few lenders have this program. 

    The basics:

    ·     Loan under $417,000

    ·     Can be single family home or condo

    ·     Has to be owner occupied

    ·     Does have income limits but they are HIGH

     

    Call today to qualify:

    Jennifer Ready

    VP Mortgage Lending

    707-478-0637

  • Trulia's updated to blogs has put code in all old blogs

    Posted Under: Agent2Agent in San Francisco  |  February 21, 2014 8:03 PM  |  665 views  |  6 comments

    I am all for updating the way blogs are delivered but it is a shame it takes everything we wrote in the past and now has it filled with code.  Please note my past blogs were not filled with code before.  I hope trulia fixes this.  Anyone else having same issue?
  • 5% grant program now on conventional loans. Call to get your downpayment today!

    Posted Under: Home Buying in Los Angeles, Agent2Agent in Los Angeles, Property Q&A in Los Angeles  |  February 12, 2014 10:19 AM  |  988 views  |  No comments

    couple happy in front of new homeCHF BROADENS PLATINUM DOWN PAYMENT ASSISTANCE GRANT PROGRAM

     

    CHF is pleased to announce the addition of Conventional Loans to the CHF Platinum Program. Homebuyers can now apply for the down payment assistance grant provided through CHF Platinum when qualifying for a fixed-rate 30-year Conventional Fannie Mae First Mortgage. Previously, the grant program was only available in conjunction with FHA, VA or USDA First Mortgages.

    With the addition of Conventional Mortgage Loan options, CHF aims to serve more people and provide homebuyers with more choices.

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    Not limited to first-time homebuyers.

    Another advantage of the CHF Platinum Program is that it is not limited to first-time homebuyers. In years past, repeat homebuyers often had cash from the proceeds generated from the sale of their home to use for the down payment on the next home. 

    Today, that is not always the reality. CHF addresses this need by making the Program accessible to first-time homebuyers and repeat homebuyers. 

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    rate button

    Value coupled with flexibility.

    The CHF Platinum Program is a homebuyer assistance program which provides a down payment assistance grant. It is a daily priced program, providing a variety of competitively priced mortgage options.

    The grant can be sized up to 5% of the Loan Amount depending on the type of Mortgage. The grant proceeds can be used towards the homebuyer's down payment and closing costs for purchase of a primary residence.

     

    House keyOn a $200,000 mortgage loan, a five percent grant is $10,000 for down payment and/or closing costs.

    Call to get your downpayment today!
    Jennifer Ready 707-478-0637
    VP Mortgage Lending
    Guaranteed Rate Mortgage
    jennifer.ready@guaranteedrate.com  www.guaranteedrate.com/jenniferready

  • 5 things that will make your loan process a nightmare

    Posted Under: Home Buying in Contra Costa County, Financing in Contra Costa County, Agent2Agent in Contra Costa County  |  January 30, 2014 6:52 AM  |  935 views  |  5 comments
    Below are the 5 things that make the loan process a painful experience for everyone involved.  Avoid these 5 mistakes and you will keep yourself and your lender sane.  Remember your lender is on your side and we are here to help you.  However if you do any of the below 5 you only have yourself to blame.  Every single one of the below is based on a true story/stories that i have experienced in the last few years

    1) Take pictures of the documents we request. A picture on your re factor of the front of your tax return is not the same as the full tax returns we requested.  A picture of your account balance on your computer is not the same as two months most recent bank statements.  Please give us exactly what we ask for.  I like my iphone too but pictures of the documents do not work.  And yes I have had a client try to snap chat me their docs. 

    2) Yell at us for asking for all the paper work we originally asked for.  We send a list of items on day one.  If on day 5 you have only given us half the list you should not be mad at us because we are following up with you on the missing documents. We are doing our job.  In order to get you the money we need all the paperwork we requested.  We do not send a list of things we want for fun.  None of us want extra items to review for fun.  We prepare the package exactly as the underwriter needs it so we can get you your money fast. Remember I am on your side and am not a paper loving devil..

    3) Open a credit card or buy something big in the middle of the transaction.  Any credit line you open during the transaction we have to get additional documentation on.  We run your credit at closing now so we see everything.  If you open a credit card to save 10% at Macys on a $40 purchase I now need to see a Macy’s statement showing what you owe. The underwriter has to sign off on that Macys card.  Was it worth it to save $4?  No.   Every lender requires this now.  Also any debt you incur we have to refactor in your debt to income.  So if you buy something big and you were already on the cusp you may now not qualify for a loan.  DON’T buy anything or open any new lines of credit.  Don’t cosign for anything either as it counts as your debt for the first year.

    4) Quit or change your job and not tell us.  A lot of people feel that if they qualify for the loan it does not matter what happens with their job while we are wrapping up the paperwork.  Wrong.  We verify your employment at the end of the transaction too.  Any changes affect your qualification

    5) Lie to us.  If you are married please admit it.  You cannot be single and married at the same time. I have literally in the last 3 years have this happen 4 times.  Every time when I confront the client they say “I thought it did not matter.”  or "its not your business."  It does matter and it is the lenders business.  California is a community property state and if you are doing a government loan even if your spouse is not on the loan we have to run their credit and hit you with their debt.  Also in California if your spouse is not on the loan they have to sign a quit claim at title at closing.  If we don’t know you are married title is wrong as well as everything else. Beyond the fact it can alter loans it a question on every application.  You are supposed to fill out your application truthfully. 

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