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The Straight Truth

By Jennifer Beeston @ Guaranteed Rate Mortgage

By Jennifer Beeston | Mortgage Broker
or Lender in California
  • 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  |  194 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
    Questions?  Please email me at jennifer.beeston@guaranteedrate.com

  • 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  |  1,036 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


  • The Government Shutdown explained via RAP. Anyone else had enough?!

    Posted Under: Quality of Life in Santa Rosa, Financing in Santa Rosa, Agent2Agent in Santa Rosa  |  October 7, 2013 9:10 PM  |  933 views  |  2 comments

    This is the best sum up I have seen to date.  Enjoy and lets all take a moment to hope tomorrow we wake up to a Government that is doing its job. 
    Government Shut down Rap

  • Pay Alimony? Read this so you do not end up being a renter forever

    Posted Under: Home Buying in Santa Rosa, Financing in Santa Rosa, Agent2Agent in Santa Rosa  |  September 4, 2013 12:28 PM  |  1,020 views  |  No comments

    Getting divorced is never mathematically fun especially when you end up paying alimony.  Paying alimony affects your ability to qualify for a loan in that different loan programs hit your income with it in different ways. For instance FHA takes the alimony off your gross whereas conventional treats it as a monthly debt.  This DRAMATICALLY affects your ability to qualify.

    Really the best way to illustrate this is math:
    Pat makes $30,000 a month gross.  The ex gets $11,000 a month in alimony . 
    We are going to assume Pat also has a car payment of $500 and a monthly credit card bill of $75

    Conventional loan: $30,000 x .45= $13,500 minus alimony ($11,000) = $2500 Minus car and credit card = $1925.  Pat's total housing payment including taxes and insurance cannot exceed $1925

    FHA Loan: $30,000 minus alimony ($11,000)= $19,000 x .55= $10450 minus car and credit card = $9875.   Pat's total housing payment including taxes and insurance cannot exceed $9875

    Between the two loans it is a $7950 monthly difference in what Pat can buy!  If you pay alimony you want to consider FHA. FHA recognizes that alimony is tax deductible so it treats it as such.  Conventional loans (Fannie Mae and Freddie mac) treat it as a non tax deductible item.  
    Bottom Line:  If you pay alimony you will be able to qualify for more with FHA 

    Feel free to call or email questions
    Jennifer Ready
    VP of Mortgage Lending

  • A new app every Realtor should try

    Posted Under: Agent2Agent in Santa Rosa  |  May 22, 2013 1:14 PM  |  1,115 views  |  1 comment
    Check out the new app Property Evaluator!
  • Straight Truth

    Posted Under: Home Buying in Santa Rosa, Home Selling in Santa Rosa, Investment Properties in Santa Rosa  |  May 6, 2013 10:10 PM  |  1,386 views  |  No comments
    The past 6 months have been a whirlwind in lending and the market.  The market is literally on steroids.  I have been largely quiet for the past few months because I have been watching in almost disbelief.  This new price climbing monster known as the California real estate market has brought out the beast in everyone.  We have every Disney type villain in full play as buyers, lenders and Realtors fight over the meager inventory.  Look forward in the next few weeks to the introduction of these villians and how to protect yourself as well as insiders view into loans.  Bottom line get ready for the Straight Truth! 
  • 2 Real Estate/Market articles you should read

    Posted Under: Home Buying in Santa Rosa, Home Selling in Santa Rosa, Investment Properties in Santa Rosa  |  March 4, 2013 8:17 AM  |  1,237 views  |  1 comment
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