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The Straight Truth

By Jennifer Beeston @ Guaranteed Rate Mortgage

By Jennifer Beeston | Mortgage Broker
or Lender in California
  • The Banks That Reject the Most Mortgage. The list you need to see!

    Posted Under: Home Buying in Alameda County, Financing in Alameda County, Agent2Agent in Alameda County  |  September 25, 2013 8:48 AM  |  1,097 views  |  1 comment

    Who you apply with for your loan can greatly affect whether you are approved.  The majority of lenders sell directly to Fannie Mae and Freddie Mac however on top of Fannies and Freddies guidelines they also have thier own individual lending overlays which help them to mitigate risk.  At Guaranteed Rate we sell driectly to Fannie and Freddie and have very limited overlays.  The only one that I can think of is that we will not do investment loans for a person who has never owned a home.  If you got denied by another bank, give me a call and let me see if I can turn you deny to an approve!
    Here is the great article on Marketwatch http://www.marketwatch.com/story/the-bank-that-rejects-the-most-mortgages-2013-09-25

    All my best,
    Jennifer Ready
    VP Mortgage Lending
  • FHA is about to get more expensive due to our Fantastic (Hardly) adminstration

    Posted Under: Market Conditions in Alameda, Home Buying in Alameda, Financing in Alameda  |  February 14, 2012 10:40 AM  |  1,579 views  |  No comments

    The Obama administration in yet another move to stall our housing economy (they say save all indicators and historical data points to stall) has decided that the annual mortgage insurance premium on FHA loans should be raised again.  Yes, again.  This was part of their FY 2013 budget they just sent to Congress. 
    A brief history of Mortgage insurance: It was raised from .55% to 1.15% last year which horrified lenders and borrowers.  Not paying any attention to the negative circumstances they created and increased borrower hurdles they created they are increasing it again.  Apparently, the Obama administration needs a reminder lesson on cause and effect.

    The New Increases:
    1.25% annual premium for loans under $625,500
    1.5% annual premium for loans over $625,500
    Example of why this is horrible: On a $700,000 loan that is an extra $204 per month, making the monthly mortgage insurance $875 per month.  That is a very nice car payment except there is no car and it does not go towards anything tangible for the borrower. 

    They claim that FHA's delinquencies are increasing, which they are.  But they are not on loans originated in the past few years but rather loans originated when FHA had very loose credit score requirements and allowed the borrower to do 100% financing through down payment assistance programs. AKA 4+ years ago.  Also they are not on the higher end loans yet that is who is being hit the hardest.  Seems fair?
    When: The changes are expected to occur in mid April.


  • How you know it is the right time to move forward

    Posted Under: Market Conditions in Alameda County, Home Buying in Alameda County, Financing in Alameda County  |  October 21, 2011 5:04 PM  |  1,430 views  |  2 comments

    We are in a market of uncertainty.  One day the news is covering the end of the recession and the next they are calling out the end of the financial system as we know it.  As a buyer this can cause a lot of uncertainty and anxiety.  Have we hit the bottom?  Will it get worse?  Will prices go up?  Will rates go up?  Will I still qualify in 6 months?  Will I wait myself out of the opportunity? 

    These are all questions that buyers are facing today and to be blunt it can paralyze even the most brave of buyers.  After years of talking these questions through with clients I have compiled a list of questions to ask yourself if you are thinking of moving forward and are not sure.

    Thoughts to ask yourself before moving forward
    1) Do I love where I live now?  What is it like when I come home?  Is it warm and inviting? Does it feel like it is temporary, like biding time? If this is where I end up for the rest of my life will I be happy?  If you will be happy living their the rest of your life then why would you leave?
    2) Do I have somewhere I would rather be?  Is there a different home I imagine myself in?  What is it like?  Is it similar to what I have now? Is it better? Is it worse? Is it available?  If I don't lock it up now will it still be available?  Are there other houses like it? If I don't try to buy it will I regret it?  How much will I regret it? 

    The bottom line is that no one can predict the bottom or to be 100% accurate where the market is going next.   If you are thinking of buying a new house don't settle for something out of fear and don't not buy out of fear.  Fear is the enemy.  Find the house that you want and then make it happen. If you do that you can't go wrong.  At the end of the day there is a reason we have the phrase home is where the heart is.  Ask yourself where is your heart? And then follow it

    -Jennifer Ready  www.readybell.com
  • 2 Great First Time Homebuyer Programs and other loan news

    Posted Under: Market Conditions in Alameda County, Home Buying in Alameda County, Financing in Alameda County  |  September 29, 2011 1:53 PM  |  1,640 views  |  No comments

    2 Niche Programs we are loving right now for 1st time Homebuyers:

    1)   EOM:  For example, in Sonoma County if the borrowers income is under $96,400 they can qualify for our EOM program.  This program requires 10% down but requires NO MORTGAGE INSURANCE.  This is a great program for borrowers.  30 year fixed rate loans with great rates. In Marin, SF and Contra Costa we can do 5% with no MI!!!

    2)   CHF Platinum: For example, in Sonoma County as long as the borrower makes under $97,800 they can qualify for CHF platinum.  This program requires only .5% down. It is a FHA loan where the borrower comes in with .5% and CHF gives them a 3% grant for their down payment. Unlike many down payment assistance or grant programs that require additional hoops to jump through this one is super easy and we can close in under 25 days.

    ·     Please email or call us for additional County limits and more details.


    Rough look at rates:

    FHA 30 year fixed(no points) : high 3’s to low 4’s

    FHA 203K: low 4’s

    Conventional 30 year fixed: low 4’s

    15 year fixed conventional: mid to high 3’s


    BE Wary:  We will be staying away from USDA until all is clear you may want to too


    Annually, at this time of year, USDA usually runs out of funds on September 30th and some years funding is disrupted for a short time.    Usually takes 1-3 weeks for USDA to get new funding in place. What is different this year is that the USDA did not run out of money, rather, the fiscal year ended and the money needs to be appropriated by the government, and thus the few week waiting period.


    If loans don’t have the Conditional Commitment from USDA by this Friday the funding of those loans may be delayed a few weeks.


    “Nothing diminishes anxiety faster than action.” ~ Walter Anderson



    Jennifer Ready & Julie Bell 707-542-5090 Jready@mmcdcorp.com jbell@mmcdcorp.com . 
    Yes, we answer emails on the weekend 

  • Downpayment Assistance Changes; Higher credit scores needed as of July 1st

    Posted Under: Market Conditions in Oakland, Home Buying in Oakland, Financing in Oakland  |  June 27, 2011 12:22 PM  |  2,462 views  |  No comments

    Both CalHFA  and CHDAP have raised their minimum credit score requirement from 620 to 640 as of July 1st

    We are starting to see a tightening up across the board again so if you are on the cusp credit wise now is the time to act.  There is still the CHF Platinum program that requires only .5% down with a minimum credit score of 620.  Act now before the credit score on this one gets raised too.  Call for details

    Jennifer Ready

    Julie Bell


  • Lender Pet Peeve: Tax Return Fantasy Life

    Posted Under: Market Conditions in Alameda County, Home Buying in Alameda County, Financing in Alameda County  |  April 21, 2011 10:08 PM  |  1,717 views  |  1 comment

    Let's role play through a conversation I have more often then I would like: Don't be this person

    : I am divorced
    Me; But your tax returns say you are married.  Did you recently get divorced?
    Client: 7 years ago but we file married for tax purposes
    Me: What?
    Client:  Well it is better if we are married for taxes.

    So here is the deal.  If you are married you need to file as married.  If you are divorced you need to not file as married.  Common sense right?  Apparently not.  So here is the deal.  Absolutley no lender wants to do a loan for someone who is defrauding the IRS.  That is what it is.  Defrauding the IRS. 
    I can't say you are single on the loan application and then give tax returns that show you are married and then supply a 7 year old divorce decree. I can't say you are married if you file as single.  We have to follow the law.  If you are married then on your application and tax returns you should be married unless you just got married within the current tax year.  Same rules for divorce.  Keep the tax returns clean and straight.  It is not worth filing as something you are not for the tax benefit. 


  • FHA; Why we have to ask about your spouse not on the loan

    Posted Under: Market Conditions in Oakland, Home Buying in Oakland, Financing in Oakland  |  April 21, 2011 9:58 PM  |  2,201 views  |  No comments

    FHA; Why we have to ask about your spouse who is not on the loan
    FHA is one of the only loan programs where even if your spouse is not on the loan we have to review their credit report and tax returns if you file jointly.  Why?  Well, FHA believes in community property in all community property states (CA is one)  and that means that even if your spouse is not on the loan we will review his/her credit too. We do not care about their score but only how much debt they have and if they have collections.  If they do we have to:
    1) Hit you with their debt
    2) Hit you with their collections
    If they have no debt or collections but have say a business loss on your tax returns of $25,000 per year we will hit you with that.  By hit I mean add to your debt to income ratio.  This rarely will work out in your favor. 

    Bottom Line: If your spouse has bad credit littered with collections and debt I suggest checking out Homepath financing or a  conventional loan. They will not look at your spouses credit if they are not on the loan.
    Feel free to call to discuss.  Jennifer Ready 707-478-0637 or Julie Bell 415-378-2536

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