<![CDATA[The Straight Truth]]><![CDATA[Multiple offers oh my! 3 tips to compete]]>
1) How much are they offering?  Seems basic right but a lot of people are under the impression they can low ball if they have cash and win.  Wrong! Those days are gone.  Lending, although still intensive, is not as tight as it was two years ago so the majority of sellers are willing to take the risk on a person getting a loan to net the higher profit. If you are in a multiple offer situation you need to lean on your Realtor to see what to offer. It will be over asking so be prepared.  If their are 15 offers and you will not go over the asking price you will lose and you will be wasting yours and the Realtors time.

2) Will this close?  This is a very important question when reviewing buyers who will be obtaining financing.  A listing agent is always going to be more likely to take an offer with a lender they know can close the deal. They can tell their seller the loan will close which is a powerful sentence.   It is like picking an airline to travel with.  You are less likely to go with ones you do not know.  Cheapo air anyone?  Pass.  It may be great that XYZ mortgage online is offering you the lowest rate every but you may never get the loan because no seller will want to take the risk. Having a lender people know in the community can help you a ton.  Not just a brand like Wells or Bank of America but the actual loan officer.  Reputation is everything in lending and Real Estate.  As a lender we work very hard to make sure Realtors have no issues on deals we work on.  That way when they see a preapproval from us they know the borrower is golden and will close which helps the borrowers odds of being chosen

3) How fast can you close this?  If a seller has two similar offers they often will go with the fastest close.  Having a lender that can close quick is a nice negotiating point and it does not cost you any additional money.  See if your lender can close in 20 days if they have to.  If they cannot you need another lender. 

www.Readybell.com
]]><![CDATA[Buying a house after a short sale: what you need to know]]>Short sales are very comman these days and as a home owner who has short sold your home you can often think that you will never be able to buy again.  That is so far from the truth!  

When You Can Buy Again

2 years after a short sale you can qualify for a conventional loan as long as you have 20% down.

3 years after the short sale you can qualify for a FHA loan with as little as 3.5% down.  That is the same for foreclosures. There is not a higher rate because you had a short sale either!

The Details:
1) Your credit score needs to be over 640 so if you only went late on your home, your credit is probably above that.  If you went late on everything and have active collections you probably are not at 640. Ideally you only went late on the house
2) You need to be able to show that you had to short sale.  If you made $120,000 and your payment was $1000 a month and you now make $90,000 and want to buy a house with a $2000 per month payment that will not work.  It has to make sense which 9 out of 10 times it does.
3) If you are in the process of short selling your home you should keep a copy of the hardship letter you sent to the short sale bank as well as the closing hud and tax returns for that year and the year prior.  Having that documenation available will make your loan a lot smoother as we will have the documents instead of trying to recreate what went wrong

Had a short sale and thinking of buyng again?  Call or email today to qualify!

Jennifer Ready 707-478-0637 & 714-701-6433
Julie Bell 415-378-2536
www.Readybell.com





]]><![CDATA[Homepath VS FHA. The Battle Royale]]>Effective April 9th, FHA once again raised their monthly mortgage insurance. With the new raise Homepath is the clear winner. With FHA you are putting ½% more down and end up with a higher loan amount and higher payment. Homepath is the way to go!

Let’s look at the math

 

Homepath    VS   FHA

 

Purchase price:

$ 250,000

$250,000

Down payment:

3%

3.5%

Upfront MI financed into loan

0

1.75%

Loan Amount:

$242,500

$245,471

Est Rate (No points)

5.25%

3.875%

Principal and interest payment

$1340

$1154

Monthly mortgage insurance

0

$256

Est taxes and insurance

$360

$360

 

Total Monthly Payment

 

$1700

 

$1770

 

 

 

Beyond the upfront and monthly savings Homepath does not require an appraisal. Why pay more for a potential headache?  Also, with Homepath investors and 2nd home buyers can put down as little as 10% with no mortgage insurance.   Homepath is the way to finance Fannie Mae foreclosures☺

 

Call or email today to get qualified for a Homepath loan!

 

Jennifer Ready , NMLS #247743    Julie Bell, NMLS#240206

 

707‐478‐0637 & 714-701-6433    415‐378‐2536

 

jready@mmcdcorp.com     jbell@mmcdcorp.com

 

www.ReadyBell.com

]]><![CDATA[House shopping rule #1]]>Often many potential buyers start with the Realtor and want to look at houses without getting qualified for a loan.  Their theory is that they have been on line and based on the online calculators they can qualify for $xxxx per month.  The online calculations are not always accurate and banks do not qualify you based on what you think you can afford but rather what THEY think you can afford. A good loan professional will also help you find the right loan for your situation and if you are not qualified to buy right now, they will put you on a path for the future. This is very important.  You need a lender/loan professional who will work with you for the long term.

Thinking of buying a home? Let us get you qualified today!

Jennifer Ready 707-478-0637 or 714-701-6433
Jule Bell 415-378-2536 
www.Readybell.com
]]><![CDATA[Where the market is and where we are heading]]>

The first few months of this year have been much busier than they have been in the past three years.  Generally January and February are the slowest months of the year giving many people in the industry time to pause, take a breath and recalibrate.  This year has been unlike the others.  It has been a whirlwind of excited buyers, multiple offers and limited inventory.

This is great news for our battered housing market.  If we can keep this momentum we may see an upward swing in terms of prices which is great for current homeowners and for our economy as a whole.
 
There are still tons of foreclosures but the government is attempting to implement new ways to keep them off the market. My suspicion is that this is due to it being an election year and our current administration cannot handle and more bad press. Basically they have realized that dumping foreclosures on the market does not help the economy.  Yes, I know this is shocking.  Like adding flour to water, if you put too much flour all at once it will never work.  You have to slowly add as you stir.

 Here are their plans:
1) Selling foreclosure properties in bulk to investors.  Are big investors getting killer deals and then flipping the properties on the market to sell to homebuyers at a profit.  Yes.
2) Fannie Mae announced instead of selling foreclosed properties they are going to start renting them.  This will eliminate a mass foreclosure inventory and they will slowly turn them (list for sale) on to the market as it can bear it. 
3) I have also heard from multiple sources that the larger banks have been advised to hold their inventory and trickle it in.
4) Harp 2.0; the new and improved refinance loan for people underwater. 

Time will tell how these plans work but what we will continue to see in 2012 is an increase in short sales to fill in the declining foreclosure inventory.  This means that homebuyers will still have tons of opportunity but that hopefully current homeowners will see an increase in their values.

]]><![CDATA[FHA raises FEES 4/1/2012 ]]>FHA has lost its way.  Once a loan designed to help and protect home buyers it has morphed into a very expensive low down payment loan. Once a great loan for borrowers as of April 1st it becomes a loan with questionable cost

They are
1) Raising the upfront mortgage insurance premium from 1 to 1.75% of the loan amount
AND
2) Raising the monthly mortgage insurance
1.25% annual premium for loans under $625,500 a .10% increase
1.5% annual premium for loans over $625,500  a .25% increase

So if you are currently qualified for an FHA loan I suggest you start shopping serious so you can lock the loan down before the fees increase. You need to be in contract before April 1st to use the current lower fees,   Also you should call and see what else you qualify for. We may be able to save you money with another loan.

Jennifer Ready 707-478-0637 714-701-6433 jready@mmcdcorp.com
Julie Bell 415-378-2536 jbell@mmcdcorp.com

www.readybell.com ]]><![CDATA[FHA is about to get more expensive due to our Fantastic (Hardly) adminstration]]>

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. 

Why: 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.


www.Readybell.com

]]><![CDATA[New Construction loans are back! Build your new home from scratch]]>Bare lots of lands can be great deals right now.  Basically because there is not a lot of financing for them and not a lot of lenders are doing new construction financing. 

Well we DO finance new construction with as little as 3.5% down

Here is how it works:
1) Get prequalified.  We will look at your income, assets etc to see how much you qualify for.
2) Go find your land
3) Find a builder
4) Have the builder sketch and bid on your dream home
5) We finance the cost to build the house as well as purchse the land
6) You put down 3.5% and make no payments until the home is built
7) The loan will be fixed for 30 years and the rates are currently under 5%!!!
8) Yes, It is that easy

For more information please contact Jennifer Ready at 714-701-6433 or 707-478-0637
or email at jready@mmcdcorp.com

www.readybell.com]]><![CDATA[VA loans Fact vs Fiction]]>VA loans are one of the most competitive financing options in the Home Loan industry. Often though they get a bad name from lenders and Realtors who are not familiar with them or how they work.  Personally, they are one of my favorite loans to do.  It is nice to be able to help the Men and Women who have protected our country get a great deal and get taken care of.

MYTH
1) A VA loan takes 45+ days to close.  This is not true!!!  A VA loan can easily close in under 30 days.  We just got loan docs to title on a VA in 12 days!  The reason we were able to do this is that the house that was being purchased had a clear section 1 and section 2 pest report.  Also known as the house was in good condition.
2) VA Loans have more paperwork than a normal loan.  Also not true!  It is the same amount of paperwork to do an FHA.  Yes with a VA we have to verify your eligibility but you can do that before you even start home shopping.
3) The seller has to pay a ton for the buyer.  That is not true!  The buyer can cover the majority of the closing costs and what the buyer cannot cover the lender can kick in. 
4) Use VA only when you have nothing down. WRONG!  I have a client putting 20% down and he decided to go VA because the rate was .5% lower.

FACT: 
1) VA loans require no downpayment
2) VA loans have NO MORTAGE INSURANCE
3) VA loans have rock bottom rates
4) VA loans are ONLY for owner occupied purchases or refinances.
5) The house needs a clear pest report
6) New as of 9/1/2011 The Ready Bell Group only charges $500 in lender fees to do a VA loan.  That is an $750 savings off of our regular fee. Lender fees include underwriting, processing, doc drawing etc...!

If you are eligible for a VA loan or think you may be I strongely suggest checking it out as a serious option.  It is true that some sellers stay away from VA loans but with a lender that can explain that VA is not bad you often have a strong chance,

For Questions or info Please contact
-Jennifer Ready 707-478-0637 or 714-701-6433
Mason McDuffie Mortgage - Jready@mmcdcorp.com
www.readybell.com]]><![CDATA[How to finance a fixer upper. The 203K]]>

FHA 203 K loan. The Rehab loan

If this market has shown us anything positive it is that there are great housing deals if you look for them.  Unfortunately, sometimes these great housing deals require work to bring them to average condition or "liveable".  Your everyday FHA or conventional loan will not work on these houses.  Enter FHA 203K. 

FHA 203K is a rehab loan.  Basically you buy the house and finance additional money to bring the house into financeable condition.  If the amount of repairs is under $35,000 it is considered a streamline FHA 203k.  If it is over $35,000 it is a full FHA 203K.    The one major thing to keep in mind is that it is for owner occupied properties only.  Qualifying for a 203K is exactly the same as qualifying for a normal FHA loan.

These loans are feared by the majority of the real estate community due to horror stories that circulate of the FHA 203K that took 6 months.  I do a lot of 203k's and can close them in 30 days.  Below are my tips for having a successful 203k transaction.

Tip#1:  The King of the FHA loan.

 The major thing that most lenders and Realtors do not pay attention to is the one thing that affects the speed and duration of the loan process.  The Contractor.  The contractor is the king of this loan.  If the contractor is fast and good and understands what his role is, the loan can move quickly.  If you have multiple contractors involved that are slow and do not understand what they are supposed to do, you can have a nightmare. 

I always suggest that you use one contractor for the entire job.  Ideally, the contractor has done a 203k before or they are very interested in doing one and are willing to take direction from the lender.  For a streamline 203K they need to understand that there are 2 ways for them to get paid. 1) they get paid once they have completed all the work 2)  They can go for two draws, meaning they do half the work and get paid for that and then finish and get paid the rest.   If the contractor does not expect this upfront you can find yourself in a situation where you are being harassed by the contractor for payment.  Not a good place to be. If you have multiple contractors and one is slower than the others.  The others have to wait until the “slow one” completes his job.  This can also lead to unnecessary drama.

Tip #2:  Know everything you want done early. 

You need to know everything you want done to the home prior to the contractor doing their bid.  This is not a loan where you can add additional work. Once we get the contractor bid , we order the appraisal.  The appraiser has to go through the bid and address the items in his/her appraisal to show that this work will add value to the house.  If you decided you want to add  additional items then the contractor has to do a new bid and the appraiser has to go back out.  That costs additional money and time.

Tip #3:  The Foreclosure angle:

We are starting to see foreclosures where if the property is in less than average condition they are countering the offers with a 203K.  Basically, you write an offer with a basic FHA loan and the bank is coming back and saying the only way they will sell this house to you is if you do an FHA 203K.  The bank knows this house will not go straight FHA due to work needed so they are countering you with the only loan product that will work.  If you are trying to buy a foreclosure where you are countered to a 203K make sure if you decide to move ahead you ask for 45 days to close the loan.  Your original offer was probably for a 30 day close.  Closing a 203k in under 30 days is extremely  tough and ideally not a risk worth taking. Ask for 45 days.

Tip #4:  It can be a higher end Eco Loan:The maximum loan amount for a 203K is the same as FHA.   It is not just a loan for "shacks."  It can be a fantastic way to buy a dated house and update it.  Want some solar/eco friendly features?  You can do that with this loan also.

Questions?  Email me at jready@mmcdcorp.com or call Jennifer Ready 714-701-6433 and 707-478-0637

]]><![CDATA[Newport Beach Gets Ready! Literally]]>
www.Readybell.com

Always a great song to live by- Gotta love fate

]]><![CDATA[Buying a home after a foreclosure; What you need to know]]>Many people think a foreclosure will damage them forever.  That simply is not true. Foreclosures in California are extremely common.  A very large percentage of available houses for sale in California are foreclosures (REO's). So you had a foreclosure now what?

3 years.  That is the most important fact.  Through a FHA loan you only have to wait three years to be eligible to buy another home after a foreclosure.  

What that means: Three years after a foreclosure you can be eligible to buy a new home with only 3.5% down. Amazing right?  It truly is.  Keep in mind that you will have to explain why you had the foreclosure and it needs to make sense.  If you make $100,000 and had a $700,000 loan you did not have a chance of keeping that house.  If you now are looking at a $300,000 home that makes sense.  If you make $600,000 a year and had a $300,000 house you should not have lost the house. Ideally you want the rest of your credit to be in good shape.  

What you should do:  At three years contact us and get qualified.  There are some great deals out there and with rates so low, owning a home often is less expensive then renting

Call or email Us;
Jennifer Ready  jready@mmcdcorp.com 707-478-0637 & 714-701-6433
Julie Bell  jbell@mmcdcorp.com 415-378-2536
www.ReadyBell.com

Blue skies smiling at me...nothing but blue skies....

]]><![CDATA[3 Financial websites that will change your life]]>
1) www.mint.com : This is the website to start at.  It will track every single purchase you make and then graph your areas or expense.  This website is beyond user friendly and is easily the best budget software I have yet to see. It literally does everything for you and then terrifies you with its data.  
2) www.wisebread.com : Wisebread is where you go for tips and tricks on saving money.  The articles range from how to get the most frequent flyer miles to how to make your own cleaning supplies. Whether you are a casual cost cutter or an "extreme couponer," wisebread covers the spectrum.
3) www.retailmenot.com : At some point you will have to buy something and every online retailer always asks for promo codes for discounts.  Personally, I get irritataed if i think there is a promo code I am missing.  Why should I pay10% more because i do not have the special promo code that went out in an email blast?  Enter www.retailmenot.com  It tracks all those promo codes so that you can use them even if you missed the mythic email blast.  This site has saved me so much it is silly.  A must stop for any online shopper.

Bottom Line: Know what you spend and make sure you are getting the best deal.  
www.ReadyBell.com



]]><![CDATA[3 things to NEVER do during the Home loan process. ]]>
3 THINGS YOU MUST NEVER EVER NEVER DO DURING THE LOAN PROCESS

1) Buy a new car/boat/toy: NEVER BUY ANYTHING when you are trying to buy a home.  Want a new car?  Great, you better get the house first or that pretty, shiny, new car may become your house. Yikes!  When you are qualified for a loan, you are qualified based off of your debt to income ratio.  Any new debt you incur changes that ratio which can affect your ability to get the loan. Every lender runs your credit twice.  Once at the beginning of the loan process and once at the end. If you buy anything in between the beginning and the end we will know and we will have to re underwrite your file with your new debt to income which could hurt your ability to buy a home.  Even if it is the worlds best deal with zero % interest DO NOT BUY ANYTHING until your loan closes.

2) Stop paying bills: NEVER STOP PAYING YOUR BILLS NO MATTER WHAT
True story; John was buying a house for his daughter.  They had looked for 2 years.  John was qualified and they finally found the perfect home.  Right before they wrote an offer i re-pulled Johns credit as it had been a few months.  John was very conservative and highly educated, I was not worried. Silly me!  John's credit score had dropped 60 points in 3 months!!!!  Why? Well, because a credit card company charged him a protection fee he did not agree to and they would not take it off so he did not pay it. It does not matter if you are in the right if the company in the wrong trashes your credit. This applies to utility bills and medical bills as well.  They will report you and they will ruin your credit.  I have seen large companies ruin peoples credit literally over $1.  The client says it was $1 and I have to say that $1 cost your ability to get a loan because your credit score is now below lending standards. Tragic.  I actually suggest double paying certain companies because they are so dodgy.  Personally, I would rather have a credit then let them nick me over $1.  When in doubt pay and pay fast. Fight after your loan closes but realize your fight may be futile. 

3) Change Employment: NEVER CHANGE YOUR EMPLOYMENT 
Basic employment rules of thumb:
-If you go from being a w2 employee to starting your own business you no longer qualify for up to 2 years
- If you quit your job and start a totally new line of work, even if it pays better you no longer qualify.  You need two years history in the same line of work to count the income.
- If you are switching jobs in the same line of work you have to be employed when we close the loan. You cannot take 2 weeks off to do the loan and move.
- If your new job has bonus income I cannot count it until you have a 2 year history.

BOTTOM LINE: There is really nothing lamer then losing your home buying dream over $1, a new car, or a job switch.  You can buy the car later, get good karma by paying the $1 and the job will be there after you close your home loan.  Life is way too short to miss out on what you want by silly mistakes that could have been prevented.


www.Readybell.com
]]><![CDATA[Had a foreclosure over 2 years ago? OK with VA LOAN]]>Another reason to use your VA Eligibilty

The standard rule after a foreclosure is that you have to wait at least three years before you are eligible for financing.  This rule does not apply to veterns applying for VA loans.  If you had a foreclosure on a non VA loan over two years ago and you are a qualified vetern you can get a VA loan!  It is one of those little niche VA facts. Bankruptcy over 2 years ago, same deal. 

Call or email to get qualified today.

Jennifer Ready 714-701-6433
Julie Bell 415-378-2536

www.Readybell.com]]><![CDATA[QUICKIE: The #1 thing every Home Buyer needs to know]]>1) What you can afford: Knowing what you can afford is the foundation of your home shopping adventure. Not knowing this info up front is like going to the grocery store with someone else's ATM card and no idea what is in their account.  Many people go online and do calculators to determine what the think they can afford.  This is a truly horrible way to start.  You really need to speak with with an actual lender to help you determine what you can afford.  There are many variables that go into what a person can afford and many times what you can actually afford vs what you can afford on paper are very different. Don't be intimidated about calling a lender to help you. There are hundreds of loan programs and options. An experienced lender can help you navigate the options.   This is what we do and love to do.

www.Readybell.com

We are happy to help you figure out what you can afford.  Always complimentary, quick and painless
Jennifer Ready 714-701-6433 and 707-478-0637
Julie Bell 415-378-2536]]><![CDATA[FHA Streamline Refinance]]>Whenever something is streamlined that means it is super easy?  Right?  Well, in this case it actually is.  So here is the deal: Let's say you bought a house over 210 days ago with an FHA loan and the rate is higher then today's very low rates.You want to refinance but do not want to deal with getting an appraisal etc...  No problem enter the FHA streamline refinance.  It is designed to help you the homeowner capture low rates without all the hassle of doing the whole loan again.

The Basics:

1) Max loan to value is104% based on the last appraised value
2) Must have made at least 6 payments on loan (so basically you have had loan for over 210 days)
3) Borrower must be employed and have same or better income
4) All original borrowers must be on the new loan

Ready to save some money?  Email or call today jready@mmcdcorp.com or www.Readybell.com

]]><![CDATA[3 Lender Types to avoid at all costs]]>3 lender types to avoid:
1) The CHARMER:  You want a 30 year fixed loan but now you are doing a 3 year adjustable mortgage with" little to no money down". This is how it happened to you.  Meet "John" your lender.  This is what he said to you "Don't worry about the fine print, you are making an investment that will pay you richly.  Look how low the interest rate is on the 3 year arm. Are you one of those suckers who does not trust his investment so he goes with a fixed rate loan at a higher rate???  Fixed rates are for suckers, real money men and investors do adjustable rate mortgages and you look like a serious investor to me." Meanwhile you are a first time homebuyer who has spent the last 5 years saving every spare nickel so you can put down 20% and get a safe loan. Now look at John's desk, somehow your wallet is on it opened and your wife's phone number.  That is the power of "John".  "John" is a amazing sales person not an advisor.   After dealing with "John "you will have 3 houses you cannot afford and rates that will adjust throwing you into bankruptcy or foreclosure. 
2) The ABUSER: The abuser is tough on his/her clients.  No one is ever quite good enough.  If the client has a lot of money than their job is not quite right.  They will find something negative about everyone’s file and then make the client know they are doing them a favor for even touching their loan. They are known to be short and testy no matter what. I do know a few who actually yelled at clients.  Yelled!   If you bring them cookies, they are on a diet and if you bring a baby to their office...well just don't...for the sake of the baby. I once had a client who was sent to me by their concerned Realtor after dealing with an abuser.  When the abuser found out the client had come to me he literally drove to the client’s house and hurled their loan file out of his car window at their door.  No one deserves that.  You should be treated with respect and decency.  If you are not, then choose another lender.
3) THE AVOIDER: Plain and simple They do not and will not call you back:  If you have to call the lender 7 times for a call back you need to pull the plug.  Now keep in mind this does not apply if you call them 7 times in a 10 min or 3 hour period.  At worst they should get back to you within 24 hours of you leaving the message.  If they do not get back to you within 24 hours then you are not a priority  and you should be a priority. "The avoider" is a master procrastinator.   They do not want to talk to you because then they would have to actually look at your file.  Financing a home is not a game of hesitation. Avoiders are bad news and can ruin your chance of getting a home.  Realtors can't stand lenders who do not call them back and if you are working with a lender who has a reputation for being avoider you may find that no Realtors want to accept your offer.

www.ReadyBell.com 

.
The below always makes me laugh especially when discussing the above 3 types.  Enjoy.  Gotta love Kanye!
 
]]><![CDATA[5 Reasons your lender will dump you]]> If your lender is not returning your calls you may want to make sure you have not committed any of the 5"foul"  offenses.  All of these have happened to almost every lender at least once. 


The FOUL FIVE:

1) You will not accept that you qualify for a certain amount : I want you to be happy but if after reviewing your financial docs I say the maximum I can qualify you for is $410,000 it does not mean $420,000, $425,000 or $415,000 unless something in your financial world has changed. Paying your Macy's bill on time or getting $1000 from Aunt Bertha does not change the big financial picture.  If it has not changed dramatically, then when I said $410,000 I meant it. Also, you should never want to buy at your max. Your entire paycheck will go to your housing payment.  How fun is that? Remember I am on YOUR side.  I want you to get the perfect house and be able to afford it without living on "top ramen."  Nagging, Negotiating and resorting to threatening me for a higher qualification will get you nowhere except on a list for security.
2) You call me when you are drunk:  I am not kidding. Clients have actually called me when they are drunk.  If it happens once fine.  Everyone makes poor judgments once and awhile but if every time you call me you are drunk I cannot work with you. Beyond constantly having to repeat things,  it is simply not a good time to be discussing large financial investments. I would hate to have you wake up with a hangover and the keys to a house you do not remember buying. Same goes for drugs. 
3) You text me in the middle of the night: I am fairly accessible but 3am texts do not get responses.  The golden rule is unless it is an emergency you really should not be texting me after 9pm or before 7am. I want to be there for you but I do have to sleep and have a life. If you would like to know what your payment would be in the middle of the night you can visit our website and use one of our calculators. The website is open 24/7 and has a wealth of info.  Still need more? There is our Ready Bell blog, facebook and if you want to know what I am having for dinner, twitter.
4) You are less than sane:  If you have a gun collection and tell me stories about all the people who have cheated you, which based on your stories is everyone you ever met, I cannot work with you. Add to that a couple stories about the ladies you picked up the night before at the casino (who you refer to as B#$!@ and Sl&*)   and you are drunk and we are done.   The above is a true story and sadly I have about a dozen more like them
5) You make it clear you are trying to commit loan fraud and ask me to tell you how to "get away with it."  Loan fraud is a serious thing.  People think it is not like killing someone but our courts treat loan fraud more seriously then murder. It is not worth playing with to save .5% on an interest rate.

As a lender we want to help as many people as we can but if you commit one of the foul five...you may find yourself with a new lender or no lender. 

]]><![CDATA[5 Housing Rules and Philosophies for the New Year]]>5 Housing Rules and Philosophies for the New Year
1) When one door shuts another brighter one opens:  If you did not get your "dream house" it just means there is a better one waiting for you to find it.  Smile and know that it will appear.  It always does will a little elbow grease and perseverance.  I have seen it happen time and time again
2) Never settle for something you think is just OK:  Why would you commit to something just OK?  Keep looking until you find something that you are excited to walk through the door. Who wants to come home and feel defeated? Even if it makes financial sense, is it worth your sanity? Committing to a 30 year loan of blah?  Why?
3) It is not just about the house:  It is also about the location.  Better to be in a slightly less than nice house in a great location then a mansion across the street from a scrapyard.
4) If you want to sell, sell: There is a lot of hesitation on the selling market by home owners with equity because they think they should wait till the market goes up.  Guess what, if you wait your new house will also be more expensive.  If you can sell and want to sell then just sell.  Perfect timing is a myth.  Very few things in life can be controlled perfectly.
5) Don't Be Afraid to take a Risk:  How many times have we heard the greatest things in life often involve the most risk?  We hear this constantly because it is true.  Better to go big then go home and wonder what would have happend if you went big. I dont hear a lot of buyers remorse but I do often hear I wish I had bought remorse. 

It's your life, right?  Enjoy;)




]]><![CDATA[5 Basic Reasons to Live in Corona Del Mar. Full time or Part Time]]>Let me start by saying I am bias. I grew up in Corona Del Mar on the "flower streets."  My childhood was filled with walks around town and countless hours spent in the ocean.  I know every rock on the jetty and every secret spot in the tide pools. After living many wonderful places in California such as Santa Barbara, Laguna Beach, Santa Monica, and Healdsburg, I still think Corona Del Mar is the place to be.

5 Basic Reasons to Live in Corona Del Mar

1) The Beach: I have yet to be to a beach in California that compares. The sand is soft and clean.  The waves are big but not so big that you dare not swim.  The tide pools have just enough edge that you can go exploring and feel safe but still have the thrill of a risk if a big wave comes in. The perfect beach. 
2) The Food: Five Crowns: A steak house/ cozy English style pub.  The food is to die for.  The ambiance is just as great. Gina's Pizza  AKA the best pizza in Newport Beach. C'est Si Bon. Technically, it is now in Newport but it started in Corona Del Mar and it still has the best chocolate croissants in the world;)
3) The Shopping:  Fashion Island:  If you live on the flower streets it is just a short bike ride away. I know this because I rode my bike to work every day after school. It is really the only place you need to go to do all your shopping. It has Nordstroms, Neimans and a host of boutique designer stores.  It also has a movie theater and great restaurants.Check out the store directory in the link.  It is inspiring for a shopper.
4) The Schools:  Corona Del Mar has great schools.  Harbor view is the public school and Harbor Day is the private.  Both are everything a child could ever need. If your budget allows Harbor Day is really an incredible school.   High school is good old public CDM high which rivals private high schools.
5) The Lifestyle: The Beach + everything you need within walking distance.  What is not to love?

And as a bonus for the kids and grown ups who will forever be kids Disneyland is only 20 min away:)]]><![CDATA[Great News! FHA extends Flip Waiver]]>

Posted:
12/23/2011

In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Acting Federal Housing Administration (FHA) Commissioner Carol J. Galante will extend FHA's temporary waiver of the anti-flipping regulations.

With certain exceptions, FHA regulations prohibit insuring a mortgage on a home owned by the seller for less than 90 days. In 2010, FHA temporarily waived this regulation through January 31, 2011, and later extended that waiver through the remainder of 2011. The new extension will permit buyers to continue to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. It will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

The extension is effective through December 31, 2012, unless otherwise extended or withdrawn by FHA. All other terms of the existing Waiver will remain the same. The Waiver contains strict conditions and guidelines to prevent the predatory practice of property flipping, in which properties are quickly resold at inflated prices to unsuspecting borrowers. The Waiver continues to be limited to sales meeting the following conditions:

  • All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
  • In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the Waiver will only apply if the lender meets specific conditions and documents the justification for the increase in value.

The Waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

]]><![CDATA[2012; Housing Predictions]]> 
1) We are starting to see appreciation:  In the last few months we have had clients who bought in the last few years refinance to get the insanely low rates and their houses are worth more than what they bought them for.  One client went up 20% in 6 months in Sonoma County. This is a new occurrence!  Prior to 2011 we did not even try to refinance past clients because the values were so low and most houses had depreciated 20%. This is a fantastic sign
2) Banks have finally figured out how to sell foreclosures:  After years of drama banks finally have the selling side of a foreclosure down.  We are seeing more reasonable asset managers who understand that sometimes a house needs to be fixed up prior to sale and that buyers really need help with closing costs etc.. Also they are accepting FHA and FHA 203k offers.  I remember when those were deal breakers. We have made progress!
3) Short sales are getting shorter:  In the past short sales could take 1 year+ or never close at all.  We are now seeing short sales approved in as little as 30 days.  Realtors are more comfortable doing them and banks are more comfortable approving them.
4) Buyers are more optimistic: 2009 and 2010 were the years of the hesitant borrowers.  We are seeing less hesitation and more aggressive buyers who want to get in on low prices and low rates. Mood is huge and having optimistic buyers is a great sign for our economy as a whole. The job market is also more stable.  We are hearing a lot less fear about losing a job which is another great sign.
5)  Rates are low: and they look to stay low.  As long as we are under 6% on a 30 year fixed as a borrower you are doing great. Right now we are at 4% which is insanely low
6) Jumbo money is back:  There are more nontraditional jumbo loans coming out every day.  Investors are comfortable lending large sums of money again. Want to buy that beautiful three million dollar home.  No problem
7) Guidelines are loosening:  We are seeing the proverbial pendulum swing away from overly conservative underwriting and guidelines.  We are not to happy days yet but even a little movement away from the oppression is helpful

Bottom line: 2012 is going to be the best one yet!

 

]]><![CDATA[Why I love FHA loans]]>
The Basics of FHA
1) Only 3.5% down and with special grant programs as little as .5% down.  Yes, 1/2% down with special grants.  You can buy a $400,000 house with only $2000 down
2) Seller concessions up to 6%
Which means when you buy that $400,000 house you can get the seller to pay all your closing costs so that seriously you are only bringing $2k to the pot if you have a grant program or $14,000 if you do straight old FHA
3) Debt to income as high as 55% on the back end.  That means that your housing payments + credit payments can be as much as 55% of your pre tax income.  With a conventional loan where you are putting down 20% the maximum back end is 50% in special circumstances but generally caps off at 45%.
4) Credit not that great?  No problem.  As long as you can squeak by with a 580 (most lenders require 640) you are good.  Foreclosure 3 years ago?  No problem, FHA is for you.
5) No reserves Required: If all you have is that 14k for that $400,000 house that is A OK with FHA

 
www.Readybell.com
Questions?  contact Jen at jready@mmcdcorp.com]]><![CDATA[Turkey Drive @ Century 21 in Cloverdale. Be There!]]>The Ladies at Century 21 organize a Turkey Drive every year. It is tonight from 5-7 at 114 Lake street in Cloverdale.  If you get lost their phone number is 707-894-5232

WHY:Many families in our community do not have the financial resources to have a Thanksgiving meal.  These are families who sometimes just don't eat because they cannot buy food. This is a good cause.
WHAT TO BRING: A Turkey to donate.  You can also donate money or stop at rays and get a gift certificate for a turkey.  Every Turkey helps and the need is getting higher every year. If you want to donate more than one; great!
WHAT TO DO WHEN YOU GET THERE:  There will be food and beverages.  The food every year is always very good.  It is like coming home to your Mother's kitchen if you mother was a fantastic cook. Mingle with your neighbors and make new friends.]]><![CDATA[What are you waiting for?? Holiday Home Sales Start Now!]]> 
Here's the deal:  In July they may not have been as motivated to take your lower offer because they still had 6 months to unload the property.  Well guess what?  The clock has started. Only 1 month and a few weeks left before the end of the year. Time to unload some houses!

Now is the time to go for that house and see what deal you can pull off.  For the non emotional investor this can be your time to shine.  My tips
1) Write offers like a bandit.  Gage desperateness.
2) Make it crystal clear you will close by the end of the year
3) Start now.  If you get too close to the end of the year they will not think you will be able to close so you will be treated like a New Year deal. 
4) Be Realistic.  We are not talking about an additional 50%.  These are big numbers we are playing with and even 10% off can save you huge over the long run.
5) Plan.  Make sure the lender you are using can close fast.  If they can't call/email us.  We can close in under 15 days. jready@mmcdcorp.com & jbell@mmcdcorp.com
 
]]><![CDATA[Why backup offers can work for both buyers and sellers]]>If you want the house the last thing you should do is give up without finding out two things.  Now not all Realtors will give you this information but is worth asking. If you are selling a house you also should check out the below so you know why a backup offer may be a good idea. 
1) Will the seller accept backup offers?  If yes, that means that basically you are in 2nd place and if 1st place falls apart you can swoop in and get the house. Many agents like having a backup offer in today's market due to the financing obstacles and general flakiness of many borrowers. It makes the seller feel better because they have a plan B, C and sometimes D. If you are the one selling the house taking back up offers is a great idea because then you are not dependent on the whims and moods of one buyer.  If that buyer gets difficult or too demanding or there financing evaporates you can explore offers B,C or D.
2) What type of financing is the accepted offer?  If they say FHA and the house is in less then perfect shape you may want to get your offer in backup provided you too are not FHA.  Things that can blow up on a FHA offer are things such as obvious pest damage, lack of flooring etc... Now it is not just FHA loans that can fall apart.  Cash buyers can also bail on deals and if the listing Realtor knows you are there they may call your Realtor as soon as they sense trouble.

Bottom line: 
Sellers:  Always have a backup plan or 6
Buyers: Sometimes you will get what you want by being patient and being the backup

]]><![CDATA[Let's talk about VA loans]]> 
VA loans are one of the most competitive financing options in the Home Loan industry. Often though they get a bad name from lenders and Realtors who are not familiar with them or how they work.  Personally, they are one of my favorite loans to do.  It is nice to be able to help the Men and Women who have protected our country get a great deal and get taken care of.

MYTH
1) A VA loan takes 45+ days to close.  This is not true!!!  A VA loan can easily close in under 30 days.  We just got loan docs to title on a VA in 12 days!  The reason we were able to do this is that the house that was being purchased had a clear section 1 and section 2 pest report.  Also known as the house was in good condition.
2) VA Loans have more paperwork than a normal loan.  Also not true!  It is the same amount of paperwork to do an FHA.  Yes with a VA we have to verify your eligibility but you can do that before you even start home shopping.
3) The seller has to pay a ton for the buyer.  That is not true!  The buyer can cover the majority of the closing costs and what the buyer cannot cover the lender can kick in. 
4) Use VA only when you have nothing down. WRONG!  I have a client putting 20% down and he decided to go VA because the rate was .5% lower.

FACT: 
1) VA loans require no downpayment
2) VA loans have NO MORTAGE INSURANCE
3) VA loans have rock bottom rates
4) VA loans are ONLY for owner occupied purchases or refinances.
5) The house needs a clear pest report
6) New as of 9/1/2011 The Ready Bell Group only charges $500 in lender fees to do a VA loan.  That is an $750 savings off of our regular fee. Lender fees include underwriting, processing, doc drawing etc...!

If you are eligible for a VA loan or think you may be I strongely suggest checking it out as a serious option.  It is true that some sellers stay away from VA loans but with a lender that can explain that VA is not bad you often have a strong chance,

For Questions or info Please contact
-Jennifer Ready 707-478-0637
Mason McDuffie Mortgage - Jready@mmcdcorp.com
www.readybell.com]]><![CDATA[Let's talk about fraud]]>Fraud Fraud Fraud.  What most people think is not a huge deal is actually loan fraud which can lead to a 30 year jail sentence and 1 million dollar fine.  Yep, that is the penality for loan fraud.  I am 90% sure you can murder someone and often serve less time and have no fine.  Crazy right? 

Below are 4 of examples of fraud that we see the most 

1) Turning in tax returns to your lender that are different then the ones you actually filed
2) Saying you are single when you are married:  California is a community property state.  This little white lie could put a huge cloud on title and give the spouse you are pretending does not exist half of your new home.  It also makes the lender have less of a say in the property since your spouse could have judgements which then could become liens on the house messing up the banks ability to foreclose and net the most money should disaster strike.
3) Occupancy lies:  If you are going to live there full time it is owner occupied.  If you are going to live there part of the time and NOT rent it out it is a 2nd home.  If you are going to rent it out or have a plan different then mentioned earlier it is an investment. This is the biggest form of fraud I see.  It is also the biggest one lenders look for too by the way
4) Not Disclosing debt:  Have a private loan you took out on a piece of land? You need to tell your lender.  Any debt you have that you make payments on you need to tell your lender.  When in doubt tell your lender 

Why lenders care about the above?
Lending is a game of risk.  It is about looking at the information and evaulating risk.  If you tamper the information you are giving a unfair view of the risk and a lender may lend money that they otherwise would not.  

Bottom Line:  All lenders have safeguards now so the above 4 get caught before the loan closes.  Don't get yourself trapped in a lie. It is not worth it.  If you think you want to lie to us listen to below first:)


 
]]><![CDATA[The Occupy Movement AKA we are the 99%: Yes we are getting political and a little outraged]]>In general I am not a fan of protesting. Perhaps it is because I do not like camping and I lack all artistic skill needed to draw a motivational sign.  Perhaps it is because in general I do not feel it accomplishes anything.  In the Occupy Movement I do believe it is working.  When was the last time we saw this much interest in politics? It is great!  I feel as though our current economic crisis is very Alice and Wonderland like and finally The Red Queen is on the chopping block.

I realize the movement has many messages. Some which I do not agree with.  I am however so glad that people are finally being outraged by the abuses allowed and encouraged by the current administration.  This housing crisis has been nothing but a debacle with the large institutions profiting while doing nothing but hurting the everyday homeowner.  The modification programs have been huge failures. They are failures because in many cases (aka most) banks make more money by foreclosing.  The programs have been set up to protect the institutions while failing the people all under the guise of "it’s to help homeowners."  It is a mess.  A giant embarrassing mess and we need better than this.

Our current administration's solution to the crisis was/is to roll out mortgage programs that even a first year loan officer can tell you have enough holes to drain pasta and by handing money hand over fist to institutions in the hopes they will do the right thing.  Banks are businesses, you give them money with limited rules and you are surprised they use it for their own benefit?  Really?  Really?? I do not have a MBA but...this seems obvious.  

The administration has also pledged to reform the mortgage industry. Although in truth they are only reforming the less affluent part. They have imposed huge costs on smaller mortgage companies and increased the amount of licensing, education and security etc... But only for non bank lenders.   It is great to increase the education, licensing and security requirements but it should also apply to all lenders right?  Right?? Oh Wait the smaller mortgage companies are not in the 1%.  Oops my bad, we should just sit back and take our fate. The lenders at banks are clearly more ethical and educated and better citizens because they work for a bank. Right.  Oh, and all this regulation has done is put a bunch of the smaller companies out of business which has further increased banks market shares in home loans thus domination.  

There is a large amount of propaganda being spewed right now and the fact that people have realized this and are protesting is great.  I truly hope it gets the attention of the large institutions and the administration to make some real changes.  The time of dusting off old broken programs and hobbling them together again saying it is something new has passed.  There is a way to fix this; we just need the common man's interests or maybe even the middle classes to come first for once.  It would be refreshing for a change.  I believe change was promised.  Time to give us some good change instead of the rubbish that has been served up for the last few years.


Hmm look at that. I may need to put together a sign:) 



  

]]><![CDATA[The housing bottom and other questions]]>The Questions:
When will the bottom hit?  Are we there yet?  When will we be there? Should I buy now?  Are you sure it is good to buy now?

The Answers
No idea. No idea. No idea. Yes. Absolutely

The Logic:
There are many predictions about the bottom but even the most seasoned and savvy investors will admit that knowing when you hit bottom is nearly impossible.  The bottom is usually identified once the recovery begins. So based off of the theory that no one can predict when the bottom will hit it seems foolish to wait until the bottom has passed to buy a home.  Because then in fact you will have missed the bottom by waiting for it.  Quite a riddle right?   

The Solution:  Find a home you can afford that you like and look as soon as you are emotionally and financially ready.  Often when waiting for the perfect opportunity you blind yourself to equally as good or better opportunities.

And in the end what should a house really be?
 

www.readybell.com]]><![CDATA[How to Save: Two Words: Cash Diet]]>Part of being a lender is helping people reach their goals of home ownership. Many of the people who we work with are not ready to buy a home when they first start speaking with us.  Often credit, income and savings need to be tweaked before they are ready. That is why it is very important to speak with a lender first before you start house hunting.  A phone call now can save you misery down the road. Often something as simple as going on the cash diet for a few months can be the difference between getting a house and not getting a house.

THE CASH DIET

The Goal:To save money.  To build a nest egg or to grow a decent down payment.

The Method:  Cash Diet. This is really easy as there is only one rule.  You can only use cash.  Banish all debit cards, credit cards etc.. and only use cash for everything you buy beyond your basic bills.  You electricity, phone bills mortgage, rent etc.. you can still pay with checks/online but for everyday switch to cash.  That mean cash at the gas station.  Cash at the grocery store.  Cash at the mall, cash at lunch etc...

Why it Works:
1) It makes you aware of what you spend and by doing this you will make better choices. You will be far less likely to be lured into "impulse buys."
2) You will plan your purchases. After the first week you will realize that in order to not hit the atm machine every day you will need to plan.  Ideally you want to hit the ATM no more than once a week. And note I said hit the ATM not withdraw from the bank.  ATM machines have limits on how much you can pull out at anytime and that limit could help your savings dramatically. 
3) It is eye opening.  Once you do the cash diet for a few weeks your entire perception of money will change. 
4) Random Bonus to Diet: You may actually lose weight and improve your health.  Studies have shown that you are less likely to buy junk food when you pay with cash


Bottom Line: You really will not believe how effective it is until you try it.  Money is money no matter how you spend it but it has been proven it is far harder to hand over actual dollars then to swipe your atm card. 


www.readybell.com]]><![CDATA[How to Finance the repairs for your Home]]>
So you have found your dream home and it needs a little tender loving care so that you can finance it and move in and begin your new life...what to do? 

The Solution = FHA 203k. 

FHA 203k is a rehab loan. It is a loan that use to strike fear in every lenders heart.  It has lots of rules and there are contractors involved and a lot of variances that make it a very niche loan.  Well, I am and always have been a lover of niche loans and I can tell you these are so easy to do that if you are looking at fixers you really should be qualified for this loan,  Keep in mind you should be qualified by a lender that does these on a daily basis.  You do not want to be there first 203k.  It may make it more special but it will not be in a good way.

5 Basics:
1) The house must be owner occupied.  Not for use on 2nd home or investment purchases.
2) You can update or rehab a house and finance the cost of the repairs at a low FHA rate.The rate for a 203k is only about .25% higher then regular FHA which we have been quoting on the very low 4%'s. A much more economical way to fix up the house vs financing through Home Depot etc...
3) There are two varieties to it.  The streamline 203k and the full 203k.  The streamline is for houses that only need about $30,000 in work.  Anything above that and you need to do a full 203k
4) For a streamline 203k you only need one contractor bid and the streamlines can close in under 35 days.
5) For a full 203k a consultant is involved and it can take 45-60 days to close


Feel free to call or email questions.  As always we are happy to help
www.readybell.com]]><![CDATA[A ray of hope for upside down homeowners? The Government's newest idea]]>Our current administration has a fairly terrible track record of coming up with and enacting programs that actually help homeowners.  Realistically, their programs and increased regulation on the mortgage industry has done little more then making the ability to qualify for a loan just a tad shy of a miracle.  Millions of trees have been destroyed by the needless new disclosures and required file documentation.  If you were divorced 12 years ago I would like that divorce decree please etc...

But life is all about odds right?  They are zero for five at this point.
1) Harp= FAILURE
2) Hafa=FAILURE
3) Banks doing loan modifications= FAILURE
4) Helping unemployed stay in houses=FAILURE
5) Stabilizing housing market= FAILURE
Based on their 0 for 5 game performance it seems that this one they have to get right. Right? 

The Deal: AKA Let's hope this works better now
Basically they are revamping HARP.  HARP was created to help refinance underwater homeowners into safe mortgages.  The full program rolls out mid November
It initially failed for two reasons
1) They capped the max loan to value ceiling at 125%.  Most of California and our Country was way more upside down than that
2) It was only available on Fannie Mae loans.  Fannie Mae was only up to a $417,000 loan amount and the bulk of the houses having trouble had mortgages above $417,000  

The New and Improved "Press Worthy" program:
1) They are taking away the 125% cap
2)  The program will go through December 31, 2013 but your loan has to be from on or before May 31st 2009

The Bottom Line:  If you are upside down, call (707-542-5090) to see if Fannie Mae owns your note.  If they do we will see if you fit into the new and improved criteria.
The below represents my true theory on the program.  Really it is the chrous but it is such a classic. Enjoy:)!

 
]]><![CDATA[How you know it is the right time to move forward]]>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]]><![CDATA[.5% down LAST CALL!]]>Great news!  We still have a bit more time to get those CHF platinum loans.  This is the loan where you only have to come in with .5%.  Below is the announcement.  If you have limited $ to put down.  Call today before the opportunity disappears 707-478-0637

Platinum Program Update

October 18, 2011 - Bulletin  #11-1018

Effective immediately and to be consistent with the recent announcement from Bank of America regarding loan locks, the final registration, delivery and purchase dates associated with the CHF Platinum Program are as follows:

  • Final Registration(lock date):        November 30, 2011
]]><![CDATA[What your lender really wants from you. The 4 basics]]>I am not sure if it is just because Adam Lambert has been on the radio for the past few weeks but the phrase "whataya you want from me" has been a constant theme.  Borrowers also feel this way in today's world of excessive paperwork required.  This is meant as a bit of a short checklist that helps you know exactly what your lender wants from you beyond the basics of honesty and trust. These 4 items help us help you.

In order to qualify a borrower we need the following 4 basic items:
1) 2 years tax returns and w2's.  This means federal tax returns.  We do not need your California returns and they will not work in place of the federal
2) 2 most recent consecutive bank statements all pages.  Even if the page is blank we need it.  If the statement says 1 of 7 we need all 7 pages.  No exceptions. This is a standard lending rule based on the theory that a missing page could be hiding information the lender needs.  paranoid?  Absolutely, It is finance.
3) One months pay stubs.  Let me clarify by saying we need consecutive pay stubs.
4) Application filled out accuratley.  If you are married you need to say married you can't pretend to be single (not kidding I have seen this).  If you pay alimony or child support let me know upfront.  I really do need your two year address history etc...

If you bring your lender these 4 items you will have a happy lender.  And who really wants to work with an unhappy lender?  No one!

 
]]><![CDATA[Rates: How to handle the market]]>I get asked at least twice a day where are rates going.The best answer is rates are going up, down, up, down, up, down.  We are in what I would describe as  a volatile "see saw" market. Remember the see saw as a kid?  It is like that but there is money on the line.  The base line for rates is low but we are seeing .25 to .5% changes on a daily basis. 
How do you handle a see saw market?  With patience and a good sense of humor.  I often see a lot of panic.  The common reaction is "Ahhh lock me now I don't want rates to go higher."  Then the next day the rates go lower and instant regret hits.  The key is to know what you want and be able to wait for it especially if you are refinancing.  With a purchase you do not have the luxury of waiting always.
The key is to lock as soon as you hit a rate you are happy with and have realistic expectations..  If you are a gambler and want to ride it out in hopes of getting the lowest rate possible I suggest watching the below.  It is a Disney classic song but has some solid advice. I take it as basically with the up down, have a snack and exercise.  You will feel much better as you ride the see saw.

www.Readybell.com
]]><![CDATA[What Bank of America's news means to you]]>

You may have seen the news or heard the rumors.  Bank of America is closing its correspondent division(http://www.miamiherald.com/2011/10/04/2438329/bank-of-america-to-shut-down-lending.html)  The only effect this will have on Borrowers and Realtors is that loans such as Calstrs and CHF platinum will be discontinued until they find new servicers.  If you have any borrowers who were prequalified with Calstrs(teacher loans) it is time to get them re qualified with a new loan program.  CHF platinum (.5% down program) will still be accepting locks through the  end of the month (means they have till November 20th to close).  If you are in contract with a CHF borrower you should be fine but if they are not in contract yet I suggest sending them back to their lender or us to get re qualified.  Another low down payment option which we offer  is CalHfa which requires only 1% down.  Once these loan programs are up and running again we will let you know. As always we appreciate your business and are happy to answer any questions you may have.  

www.readybell.com

p>]]><![CDATA[A must attend Healdsburg Event! Crush Festival October 15th]]>Want to go to the biggest party in Healdsburg for 2011?  Perhaps the best party in all of Sonoma County?  If you are ready for a night of fine wine, fancy food and exciting people now is the time to get your tickets.http://www.healdsburgcrushfestival.org/  Have fun!!]]><![CDATA[2 Great First Time Homebuyer Programs and other loan news]]>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 

]]><![CDATA[Lets talk about the terrific things in the housing market]]> 

3Top

1) Rates are really low.  I never thought I would lock a 30 year fixed rate loan at 3.875% with zero points but I have and do on a daily basis now.
2) Housing prices are even lower. For buyers this is fantastic news,  The entire housing market is like a half price sale with further reductions.  Now in the grand scheme of things this is troubling for our economy as a whole but as a buyer this is great!
3) Lenders are still lending:  We still can get people loans.  Loans with only 3% down or loans with 10% down and no mortgage insurance exists.  We are also seeing more and more jumbo opportunities every day

Time for a market song.  Enjoy!
 



www.ReadyBell.com]]><![CDATA[Calstrs SHOCKER!!! ]]>I have always been a fan of Calstrs loans.  The 80/17 was by far one of my favorite loans over the past few years.  About a month ago it was announced that that program was to be discontinued and a new program would be released.  However, now since Bank of America (services Calstrs loans) has announced it intends to sell its correspondent lending business, ALL CALSTRS LOANS ARE DISCONTINUED AS OF SEPTEMBER 30,2011. 

The Bottom Line:  Calstrs loans are a thing of the past until Calstrs decides to relaunch.  If you were counting on a Calstrs loan, time for a new plan. We are happy to help you find a new plan.

RIP Calstrs, you will be missed

www.Readybell.com

]]><![CDATA[Conforming Loan Limits decrease October 1st]]>Let's all take a deep breath and exhale a big sigh because as of October 1st loan limits are decreasing and brace for it..at the end of this year they may go even lower.  Without a congressional miracle the days of super conforming have left us. 

New Local County Loan Limits as of October 1st:
Alameda, Contra Costa, Marin, San Francisco and Santa Clara: $625,500
Sonoma County: $520.950

What this means to you?  If you were going to buy a $715,000 house in Marin you are now a jumbo loan.  We do have some new loans that pair a 1st and 2nd but if you were planning on a FHA loan you need a new plan.


www.ReadyBell.com

]]><![CDATA[When to Walk Away; Part One]]>   One of the hardest things in life is walking away.  Whether it is from a job or a relationship or a situation, walking away is generally considered a big “no no”. The reason is that as a society we are trained to “stay the course” or “never give up “or “hang in there.”  Regardless how dire the situation we are taught to "keep our chin up."  Walking away on the other hand is akin to “cutting and running.”  Historically to “cut and run” is a term used to describe cowardly withdrawal from battle. Nice right? 

Walking away however in many cases is what is needed to be done in order to self preserve. The economic situation of the past few years is a very strong example as to why “staying the course” can often lead you straight to a financial hurricane and then desolate.  In regards to housing there are two times you should consider walking away.  The below is not meant as advice to walk away but rather questions to ask yourself before you steer into a financial hurricane.

You Own A Home:

I have heard the situation a million times in the last four years.  It goes like this: “I need to refinance, I make my payments every month but my loan adjusted last year and my payments doubled.  If I can get into a 30 year loan I can make my payment.  In a 30 year loan my payment would be $2000 per month.  Right now it jumped to $4500. I called my bank to see what they could do and they said they can’t do anything because my house is worth less than I owe on it and I am not behind on payments.  I have liquidated my all my savings and 401k to make the payments but I have nothing left and I do not make enough to pay $4500. Help, I love my house”

In the above situation they are already in a financial hurricane about to be desolate.  They have liquidated everything they have to preserve a home that they cannot afford.  A home that ultimately will be shortsold or go to foreclosure.  You do not want to get to this position.  If your loan adjusts to where you cannot make the payments or your pay decreases do not touch your retirement.  You will just deplete your retirement and once that money is gone not be able to make the payment and find yourself right back where you were prior to tapping your retirement.

Here are the 3 basic questions you should ask yourself if you are thinking of walking away

1)   Can I afford this house based on my earnings?  If your payment is more than 56% of your gross income then No you cannot afford that house based on your earnings (go to #2). If it is less than 30% of your earnings you can afford the house.

2)   Do I have equity in my house or can I refinance into a lower rate?  Contact a local loan consultant (yes, you can call us) to see if there is a loan option to lower your payment.  If they can Congrats!  If they cannot got to #3

3)   Will the bank work with me or modify my loan?  If the answer is No then you still cannot afford the home

If you have come to #3 and still cannot afford your home it is time to contact a local Realtor about a shortsale.  Making that decision can be extremely difficult but it is better to make that decision before you lose your house and your future. 

Life after a shortsale: If you do not go late on the mortgage you can apply for a home loan for a house you can afford right after the shortsale.  If you go late on the mortgage you can buy another home 2 years after a shortsale with 20% down. 3 years after a shortsale you can do a 3.5% down FHA loan.  Keep in mind if you go late on everything else it will affect your ability to qualify. 

As a lender we are seeing people who short sold their homes in 2007 get into new houses now.  They are buying homes half the price of their old homes and they are getting in payments they can afford. 

Bottom Lines: If you can’t afford your payment, you can’t afford it. Don’t lose your future and your mind trying to keep something you cannot keep.  Sometimes you need to call a spade a spade.   In the end a house is nothing more then how you feel when you walk through the door. How do you feel when you walk through that door?

 

Image Detail
www.readybell.com

]]><![CDATA[Things that keep me awake. The carbon monoxide law. Take note Realtors]]>The past three nights I have woken up drenched in a sweat with a feeling of terror.  Not little terror, full terror.  What has me so panicked?  The economy?  The global economy?  Nope.  I am afraid of forgetting to remind Realtors about the Carbon Monoxide alarm law.  Basically, California has this new law where every house that is sold now needs carbon monoxide alarms.  The problem?  Most people don't realize it yet.  Which means we get into escrow the appraiser calls out the lack of carbon monoxide alarm, the seller has to put one in and then I have to pay the appraiser another $100 to go out and verify it is there.  Nightmare?  Kinda. It is one of the lamest money wasters in a transaction.  I love appraisers, they do a great job and there time is valuable but $100?  Really?  

The Basics: Senate Bill 283 effective July 1st says that all single-family homes with "an attached garage or a fossil fuel source" will need to have a Carbon monoxide alarm in place 

Why Carbon Monoxide is Scary: Odorless, colorless, in high enough concentrations can kill you in minutes.
 
How many do you need:  One per floor

Great Realtor Tip:  One of my favorote realtors just bought 15 carbon monoxide alarms and has a ladder in her car to install at any time.  She is quite the girl scout always being prepared. Also, her clients love that she took the time to get and install the alarms for them.

For more details check out this great blog I found http://siliconvalleyrealtorsblog.com/2011/07/29/carbon-monoxide-faqs-what-homeowners-should-know/



www.Readybell.com]]><![CDATA[The #1 Easy Money Move you should be making]]> Invest in your 401K:  If you have access to a 401K you are lucky.  If your employer matches contributions to a certain percentage you are even luckier.  You should start investing in your 401k the moment you have access to it. This is pre tax money that is being invested.  It reduces your tax liability and sets you up for later in life.  It can be very hard for many people to willingly have money deducted from their paycheck but based off a rough calculator if you did 15k a year towards your 401k for 15 years by the end of the 15 years you would have close to $450,000. Check out the calculator and play with the numbers http://www.bloomberg.com/personal-finance/calculators/401k/
The maximum you can contribute is $16,500 per year  but your employer may have a percentage limit.  If both you and your spouse can contribute $16500 each year to your 401k you are reducing your family tax liability by $33,000!  If you cannot contribute the max contribute whatever you can.  Every nickle counts.  Start with 5% of your pay and slowly increase your contributions until you max out.  After a year or two you will see your money grow and upping that % will be a lot easier.    There has never been a better time to start contributing to your 401K. Stocks are at rock bottom prices and although the economy may not recover for another 5 years think about what will happen when it does recover if you invested at the lows? If you are uncomfortable with investing most companies have resources to help you.  You can also check out Kiplinger, Smart money, or Money magazine.  All of them have good tips.

The Bottom Line:  If you ever want to or will need to retire the earlier you start saving for that retirement the better.  There is absolutely not one good excuse not to contribute to your 401k.
Also, from a home loan angle we like to see that you have savings and a 401k counts.. 

www.Readybell.com]]><![CDATA[The real skinny on VA loans and why I love them]]>VA loans are one of the most competitive financing options in the Home Loan industry. Often though they get a bad name from lenders and Realtors who are not familiar with them or how they work.  Personally, they are one of my favorite loans to do.  It is nice to be able to help the Men and Women who have protected our country get a great deal and get taken care of.

MYTH
1) A VA loan takes 45+ days to close.  This is not true!!!  A VA loan can easily close in under 30 days.  We just got loan docs to title on a VA in 12 days!  The reason we were able to do this is that the house that was being purchased had a clear section 1 and section 2 pest report.  Also known as the house was in good condition.
2) VA Loans have more paperwork than a normal loan.  Also not true!  It is the same amount of paperwork to do an FHA.  Yes with a VA we have to verify your eligibility but you can do that before you even start home shopping.
3) The seller has to pay a ton for the buyer.  That is not true!  The buyer can cover the majority of the closing costs and what the buyer cannot cover the lender can kick in. 
4) Use VA only when you have nothing down. WRONG!  I have a client putting 20% down and he decided to go VA because the rate was .5% lower.

FACT: 
1) VA loans require no downpayment
2) VA loans have NO MORTAGE INSURANCE
3) VA loans have rock bottom rates
4) VA loans are ONLY for owner occupied purchases or refinances.
5) The house needs a clear pest report
6) New as of 9/1/2011 The Ready Bell Group only charges $500 in lender fees to do a VA loan.  That is an $750 savings off of our regular fee. Lender fees include underwriting, processing, doc drawing etc...!

If you are eligible for a VA loan or think you may be I strongely suggest checking it out as a serious option.  It is true that some sellers stay away from VA loans but with a lender that can explain that VA is not bad you often have a strong chance,

For Questions or info Please contact
-Jennifer Ready 707-478-0637
Mason McDuffie Mortgage - Jready@mmcdcorp.com
www.readybell.com]]><![CDATA[Ready Bell News]]>We have a new blog on our Ready Bell site. You can request rate quotes, get loan information, use loan calculators etc...  Check it out

Www.readybell.com

Blog: http://readybell.com/blog/]]><![CDATA[3 quick credit tips. Higher score= lower rate. Protect your credit]]>3 ways to ding your credit
1) Store Cards:  To be blunt store cards do nothing positive for your credit.  They have lower limits and higher interest rates.  It may seem like a great idea to get 10% off a $200 purchase but when your credit limit is $300 you look over extended and it hurts your credit. Also, these cards tend to report lates quicker than other cards.  2 days late on your Macys/Kohls etc... card can hurt your score for years to come.

2) Tickets:  Never ignore parking tickets or any ticket of any sort.  If you do not pay it, it will hit your credit and it will hurt your credit.  Don't be late and pay it before you argue it.  The damage we have seen to people credit from one unpaid ticket is mind blowing.  100 point drops you bet.  Guess what?  The Library also reports to the credit bureaus and not returning a book can hit your score.

3) NEVER COSIGN:  If someone is not a good credit risk to get a loan you do not want to cosign for them.  If they miss a payment it is your perfect credit that is destroyed.  Many people say well I will make the payment if they do not.  Unfortunately, you will not know they did not make it for up to 6 months later.  I have seen peoples credit destroyed because they cosigned.  Don't do it.  If you have to, have the person pay you every month and you make sure the bill gets paid.  Trust is great and all but when it comes to your credit and financial future be wary of trusting others.

www.Readybell.com]]><![CDATA[The Ready Bell Wine Industry Loan Advantage]]>My first out of college job was in the wine industry.  I spent 3 years being everything from a "cellar rat" to national sales for a small Sonoma winery.  It was one of my most memorable and treasured life experiences which is why I am thrilled to announce our new program.

The Ready Bell Wine Industry Loan Advantage
Just as firefighters, teachers and policemen have special home loan deals we think wine industry employees should too.

The Ready Bell Wine Industry advantage is a .5% credit towards the closing costs for your home loan.  You can use it on a home purchase or a home refinance.

How to qualify for the Wine Industry Advatage:  All we need is a business card showing that you work in the wine industry. Do you have vineyards or sell corks or barrels or glass?  Work in a winery, tasting room, sell wine? You must also be purchasing or refinancing a home in California.

What you get: The .5% is based off the loan amount.  For example, on a $400,000 loan that is a $2000 credit.  You can use the credit to cover any closing costs.

Call today to learn more 707-478-0637 Jennifer Ready or 415-378-2536 Julie Bell
http://readybell.com/wine-loan-advantage/

]]><![CDATA[Big Calstrs news! Goodbye 80/17 We will miss you!]]>

California State Teachers Retirement System (CalSTRS)

Home Loan Program

Retiring the CalSTRS 80/17 Program

Announcing the CalSTRS Home Connection Program

 

The California State Teachers Retirement System (CalSTRS) will discontinue the CalSTRS

80/17 Home Loan Program on October 1, 2011. The last day to lock any new CalSTRS

80/17 loans will be September 30, 2011. Any loans locked prior to or on September 30,

2011, should follow all current posted CalSTRS 80/17 guidelines.

 

CalSTRS will be offering a new program, the CalSTRS Home Connection Program with a

target release date of October 1, 2011.

 

 

Here are some highlights of the new CalSTRS Home Connection Program:

• 80% first lien – fully amortized 30 year loan

• 15% second lien – fully amortized 30 year loan

• 5% down payment

• SFR Minimum FICO 700/ Condo Minimum FICO 740

• 60 day rate lock

• Interest Rate for the second lien remains the same rate as the first lien

 

]]><![CDATA[Cash In Refinance?? How about a 10% guaranteed return on your money]]>
Cash In Refinance is making sense.
 
What it is and how it works: If you have a loan amount of 567K at 5.75% rate, you are paying 36K interest per year. If you bring in 150K to get to 417K and a rate of 4.75% you reduce the annual interest by 16K per year. Take the 16K and divide by 150K; that gives you a 10.6% return on your  money. And what are you currently getting? 1% maybe.  These are real numbers and returns.  Also, rates are really low right now and getting low 4's is totally realistic.  Call today for a free quote.

Jennifer Ready: 707-478-0637
Julie Bell: 415-378-2536
www.readybell.com]]><![CDATA[Fed says rates will stay low through 2013; Bright Sunshiney day?]]>The Fed came out today and said they plan to keep rates extremely low through 2013.  What this means to you and me is that the entire housing market will not shut down.  Woohoo!  With the tighter guidelines, higher rates would brought housing to crippling halt.  Yes, there are tremendous issues still with our economy, government etc... and will be for years, however I think we need to celebrate each grain of good news we get. 


]]><![CDATA[3 Random usefull Home Tips]]>
1) Drain your water heater - Over the course of a year, hard water sediment tends to collect at the bottom of your water heater tank. The sediment deposits reduce the efficiency of your heater, costing you money!  To drain your water heater, simply connect an ordinary garden hose to the outlet spigot near the bottom of the water heater tank. If possible, drain the water into a sink, tub, or floor drain, as pumping the hot water outside is likely to kill your grass due to the temperature of the draining water. 
 
2) Sharpen and clean your garbage disposal all at once - By putting a few ice cubes into your disposal and running the unit, you are quickly cleaning and sharpening the blades of the unit!
 
3) Change your furnace air filter - Experts recommend changing your furnace filter once a month. Filters are cheap and can be purchased at most discount department or home supply stores. If you haven't done it in a while, there's no time like the present!

]]><![CDATA[Sonoma Property Values now Online]]>

FOR THE FIRST TIME the Sonoma County Assessor has posted the annual assessed Value Notices on their website.  That’s right, all you need to find your 2011-2012 property value is your assessor’s parcel number, or the site address. 

 

Only properties that have an increase in value from the prior tax year must be noticed either by mail or website posting.  The EXCEPTION to this requirement is the annual increase in value which reflects only the annual inflation factor increase are not required to be part of the annual notices. 

 

For Property Owners without access to the country website, you can obtain a printed value notice by calling the Assessor’s Office: 707-565-1888, or by writing to us, or coming to 585 Fiscal Drive Rm. 104F, Santa Rosa, CA 95403. 

For those of you who finish reading because you finish what you start or are waiting for this to get good I’ll end with this fascinating fact; The 2011 tax bills based on these values will be mailed out in October of 2011.  To find your Annual Value Notice go to: www2.sonoma-couny.org/assr.

 

Thank you for spending a minute of your life reading this.  After all Knowledge is Power.  And what doesn’t kill you makes you stronger.  So now not only are you stronger, but more powerful.  You’re welcome.

-Written by Mark Damon

 
 

]]><![CDATA[Mortgage Interest Deduction. Why we need to NOT let politicians take it away]]>Mark Damon has recently joined our office.  He brings a fresh and passionate viewpoint to Home Financing and what owning a home means. 

Money in your pocket and the Home you deserve.  Mortgage interest deductions (MID) save homeowners money! 


Written by Mark Damon


Who benefits from Mortgage Interest Deductions?  The straight-forward pertinent answer is you and I.  Hardworking individuals  who own or are in the process of achieving the dream of home ownership.  So why are some politicians trying to eliminate the one decent quintessential break an average Joe/Jane  can receive in tax relief, while seemingly unapologetically bailing out banks and handing billions to oil companies? 
How do they justify such a decisively poor decision to remove homeowners “Christmas bonus”  that extra key source of additional income so many of us cash-strapped tax payers utilize for a buffer in our savings or much needed consumption / home maintenance?  Contingent on reshaping the tax code and the cataclysmic elimination of the Mortgage insurance deduction, home values will further fall as many fall way behind in maintenance be it windows, doors, roofs, siding, landscaping, energy efficiency projects; YOU name it!  The answer is based as always on politics and paying for the mistakes of the inexorable past.

 

 Speaking of the past, the Mortgage Interest Deduction has been part of the federal tax code for over 100 years.  That said, I find it pungent when misplaced arguments are regurgitated from Politicians who don’t expect you and I to do our homework as they share grotesquely motivated assertions that the MID was a cause of the housing market bubble and is suddenly part of the deficit problem.  We’re more intelligent then that.  It’s safe to say at this complicated time in history that  we’re on a plane ladies and gentlemen.  In case of an emergency one must put on their own oxygen mask first in order to take care of others.   And what are the “haves” saying to the “have-nots”  to evoke false belief’s in the benefits of removing the MID?  They pack the headlines with the misconception that only the wealthy benefit from the MID, when in REALITY it benefits primarily middle – and lower income families.  Almost two-thirds of those who claim the MID are middle-income earners and 91% of people who claim and benefit from the MID earn less than $200,000 per year.

 

Friends, tax day is behind us, but if some Washington policy makers get their way, so too might be one of the most reliable sources of extra much needed income and the ability for so many of us to enjoy and improve our very own homes.  Concordant, the Mortgage Interest Deduction saves the itemizing American household up to $3,000 per year. Precisely as you are undoubtedly gathering  Cash is King these days, don’t allow the irrevocably political bureaucrats to empty your pockets to clean up their monumental failure.  A USA Today/Gallup poll shows that a clear majority ( 61%) of taxpayers oppose eliminating the MID.  It’s time the government lived up to it’s claim of serving the people.  Tell your local politicians we need this profound affirmation if only to show that the government still has OUR BACK. We have to fight to keep the mortgage interest deduction!

Jennifer's Bottom Line:  Many politicians are fighting to get rid of the Mortgage interest deduction.  Eliminating it will bring the government more revenue at the expense of you and I.  The Mortgage Interest deduction is not just for the wealthy and anyone who claims it is is doing nothing but pandering.  This deduction helps every day Americans every day.  This is a Call to Action!  Write your local politicians and let them know eliminating the mortgage interest deduction is not acceptable!

www.READYBELL.com

]]><![CDATA[If you are thinking of buying a home or refinancing a loan between $520,951 and $662,500 you need to read this!]]>The temporary High Balance Loan Limits are set to expire on September 30, 2011.  Barring any extension by the US Congress, loans will need to comply with the reduced loan limits that are based on the county where the property is located.  Agency loans with notes dated on or after October 1, 2011 will be subject to the new high balance loan limits defined under the Housing and Economic Recovery Act (HERA).  The maximum loan amount will vary depending on the location of the subject property, however, it will never exceed $625,500 for one-unit properties. 

WHAT THIS MEANS TO YOU:  Currently your counties  high balance loan limit is $662,500.  As of September 30th that amount will go down to $520,950.  If you are thinking about refinancing or buying with a loan between $520,951 and $662,500 now is the time to act to take advantage of non jumbo rates.  This is a last call situation.  Counting on Congress to extend the loan limits would not be a bet I would take.


]]><![CDATA[If you owe between $625,501 and $729,750. Now is you last chance to refinance for amazing rates!]]> 

The temporary High Balance Loan Limits are set to expire on September 30, 2011.  Barring any extension by the US Congress, loans will need to comply with the reduced loan limits that are based on the county where the property is located.  Agency loans with notes dated on or after October 1, 2011 will be subject to the new high balance loan limits defined under the Housing and Economic Recovery Act (HERA).  The maximum loan amount will vary depending on the location of the subject property, however, it will never exceed $625,500 for one-unit properties. 

WHAT THIS MEANS TO YOU:  Currently, your counties high balance loan limit is $729,750.  As of September 30th that amount may go down to $625,500.  If you are thinking about refinancing or buying with a loan between $625,501 and $729,750 now is the time to act to take advantage of non jumbo rates.  This is a last call situation.  Counting on Congress to extend the loan limits would not be a bet I would take.

www.Readybell.com. Call today to see how we can save you $

Julie Bell 415-378-2536
Jennifer Ready 707-478-0637 or 650-224-6522

]]><![CDATA[Time to Refinance. We will even cover $400 of your closing costs!]]>Since the debt ceiling deal passed rates have taken a dive.  They are the lowest they have been since last November.  What that means at mason McDuffie Mortgage is Refinance fever is starting.  Now is the time!  Call today for a complimentary quote and credit check.  If you chose to refinance with us, Mason McDuffie will cover $400 of your closing costs.  Pretty sweet deal!  And YES, we serve all of California,

Call Today 707-542-5090  or 415-378-2536 Ask for Jennifer or Julie and mention Trulia for the $400 savings

For more about how low rates are check out this article
http://finance.yahoo.com/news/Rate-on-15year-mortgage-falls-apf-2849071239.html?x=0
 

www.readybell.com]]><![CDATA[The debt ceiling:let's get political!]]>On August 2nd the United States may default on their debt.  August 2nd is the drop dead date for the debt ceiling to be raised.  If the debt ceiling is not raised the United States will lose its triple A credit rating and will basically stop paying their bills. This will affect every American as interest rates on everything from mortgages to credit cards will increase due to our countries lower credit rating.  If it happens it will harpoon any chance of recovery we are heading towards.   Also,this also could effect the paychecks of our soldiers and social security.  Nice right?

Basic Analogy:  The United States is a debt heavy person who lives off of credit.  They pay all their bills with credit because their income goes straight to paying the interest on the credit.  Currently, they have maxed out their credit and unless everyone agrees they get more credit the US is maxed out.  They will not be able to pay their bills since they need credit to pay them and the interest rates on any credit they have will go up because they are now higher risk. 

Currently, the Congress, Senate, president etc  are "working" on a resolution.  However, just a few days away and they cannot come to agreement.  A few days away.  The country is unsettled, the markets are unsettled.  I am unsettled.  If they cannot come to agreement our country could be thrown into a historical moment that will never looked back upon warmly. 

!Bottom Line:  I am hoping they come to an agreement and I have to say I will be surprised if they do not.  But for the sake of our country can they knock off all the drama?  Do we really have to wait till the last minute on everything?  I understand it is used to negotiate by increasing the stakes but haven't we as a Country already been through enough? ]]><![CDATA[3 reasons Fannie Mae is great to buy a foreclosure from; Hidden Gems]]>

1) They get the market.  Most buyers need help with closing costs and Fannie understands that and makes it easy by running specials like they have now where they are giving 3.5% towards owner occupied closing costs.  3.5% is a pretty decent chunk of change and is really helping a lot of homeowners
2) They use knowledgeable agents to represent their properties.  All of the agents that we have encountered that get listings direct from Fannie Mae are real tried and true hard working agents. These are agents who have proven themselves time and time again.  They know all the niche stuff about what will hurt or help a property and Fannie holds them to high standards.  Random property checks to make sure the properties are being maintained to a high standard? You bet!
3)HOMEPATH:  Special financing only for Fannie Mae foreclosures.  Owner occupied as little as 3% down with NO mortgage insurance.  There is even no mortgage insurance for investors with 10% down. Homepath is a fantastic loan program that not enough people know about. Buying a 2nd home with only 10% and no mortgage insurance...only on a Fannie Mae foreclosure. Tahoe is looking better every day!


www.Readybell.com]]><![CDATA[Great news for homeowners short selling their homes!]]>Lets Talk about Senate Bill 458 which Jerry Brown signed into law in California.

The Basics:
Previous law required that first mortgage holders who agree to short sales must accept the agreed-upon proceeds as payment in full. The NEW LAW extends the same rules to holders of 2nd mortgages and other junior liens
 
Why this is huge:  In the past the junior liens were a nightmare that could and did chase and haunt short sellers for years ultimately leading the home seller to bankruptcy to escape them.  This eliminates the unknown and brings closure to the short sale process.  This is HUGE! And such FANTASTIC NEWS!!!!!

Effective Date: NOW

Great job Jerry!

-J Ready

www.readybell.com]]><![CDATA[3 ways to lose your lender fast]]>3 ways to lose your lender fast:
1)  Dishonesty.  If you misrepresent yourself on a loan application it is not just you who can be prosecuted but also us and the companies we work for.  If I hear a story change multiple times and in varying ways I will ask the client to use another lender. No loan is worth ending up behind bars
2) Rudeness.  As a lender our job is to help you find a home loan and then close that loan on time.  Our job is not to be yelled at or screamed at because we need your tax returns and bank statements. I am sure you are very trustworthy but I can't rewrite basic lending rules.  Abusing your lender will get you nowhere.
3) The Compulsive Shopper:  Feel free to check your lenders rates against other lenders.  Just do it before you lock.  Rates change every day and from a lenders view it is super annoying when your client asks you to lock a rate and then two weeks later they are comparing the rate they had you lock against the current rate of EVERY Internet lender.  If the market has changed enough we can often lower your rate even if locked but .125% is not a big enough of a market move. Don't hesitate to ask your lender if they can do better but locking and then shopping every day after the lock can hurt your transaction and drive your lender to the edge.  
-J Ready]]><![CDATA[What DTI is and how it affects your ability to get a loan]]>DTI= Debt to Income
Having a debt to income within guidelines is a key component to securing a loan in today's market.  You could have the most stable job in the world and a 800 credit score but if your DTI is too high you will be denied.

The debt to income calculation has 2 components.  The front end ratio which represents your total housing cost or PITI (principal, interest, taxes and insurance).  The back end ratio represents your total debt load.  Your total debt would include items on your credit report, PITI and alimony or child support if you pay any. See example below:

Sandra makes $12,000 per month gross (before taxes etc are taken out)
She is buying her first home with a monthly payment (piti) of $3400
Sandra has a $500 car payment but no other debt and does not pay child support or alimony
To get her front end ratio I take $3400 and divide it by $12000 which equals = 28%
For her back end ratio I add all her debt $3900 and divide it by her monthly income $12,000= 32%
Sandra's DTI is 28/32.  That is a great DTI

So what is an ideal DTI?  I feel very comfortable the client is going to be able to afford the home if they are below a 30/40. (30% front end and 40% back end)  A ratio such as 30/40 or below gives the borrower access to all the loan products currently in the market.  If they need private mortgage insurance they are within guidelines.  A borrower with a 44/54 is only going to qualify for FHA.  A borrower with anything over 56% on the back end does not fit into any of the loan products offered by mainstream lenders.  FHA is the only program that will let you go up to 56% on the back end and the majority of other loan programs are 45% and below.  You can do a conventional loan with up to 50% on the back end but you have to have compensating factors (good credit etc...)

How to lower your DTI:
1) Reduce debt load:  Pay off car + credit card debt.
2) Reduce what you want to buy: If the home you are looking at puts your front end DTI over 43% it really is too much for you. No one ever wants to hear they are looking outside their price range but having your home alone be over 43% of your gross income will make you house poor and miserable.
3) Have a cosigner;  Certain loan programs allow you to have a non occupant coborrower which can help if you need to lower your DTI.

Questions?  Comments?
Jennifer Ready
707-478-0637 - 650-224-6522
www.Readybell.com
]]><![CDATA[Fannie Mae is making buying a house make a lot of sense]]>Fannie Mae really wants you to buy one of their foreclosures.  REALLY!  Through October they are offering a 3.5% credit towards closing costs for owner occupied borrowers.  Let's do the math

On a $200,000 house that is $7000.  That should cover all your closing costs so that all you have to come in with is your downpayment.  If you do a Homepath loan (owner occupied) you could move into your new home for $6000.  That is less that 1st months rent and a security deposit at most places. 

Don't have $6000?  No problem.  You may qualify for our CHF platinum program where you only need $1000 as your downpayment.  That is certainly less than 1st month rent and security deposit.

With rock bottom prices, super low rates, low downpayment requirements and the seller covering all the closing costs, it has NEVER made more sense to buy a home.

Call or email today for details

Jennifer Ready
707-478-0637 or 650-224-6522
jready@mmcdcorp.com

Julie Bell
Jbell@mmcdcorp.com
415-378-2536

www.readybell.com
]]><![CDATA[Downpayment Assistance Changes; Higher credit scores needed as of July 1st]]>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
707-478-0637
650-224-6522

Julie Bell
415-378-2536


www.Readybell.com

]]><![CDATA[Words to live by in today's market]]>Life is what you make of it.  If you see everything as obstacles that is what your life will be.  If you see life as endless opportunities that is what will be open to you.  It is not "the secret" or rocket science, it is just plain old good fashion common sense, Work hard and look for opportunity.  As a buyer, Realtor or lender if you work hard and look for opportunity you will find what you need.  I recently started humming in my head (a little Ally Macbeal like) whenever I hit a "Negative Nelly", a great song from the past.  Enjoy below:

 
]]><![CDATA[Misssed your chance refinancing into super low rates? Your 2nd chance is here]]>refinance last year because you were waiting for the perfect rate moment NOW is the time.  Over the past few weeks rates have dropped to their lowest levels of the year.  Every morning when I look at our rates I gasp because they are so low.  It seems as though the market has finally figured out that the "recovery" was little more than smoke and mirrors and is reacting to the realization in panic mood which means in my world that rates drop.  This is an emotional market so in two weeks rates could be right back where they were last month (.375-.5% higher!)  I strongly suggest that if you want to refinance you start looking into it now. 

Call us for a quote, we would love to help you seize the moment
Jennifer Ready 707-478-0637 & 650-224-6522
Julie Bell 415-378-2536
Or visit us online for a rate quote www.Readybell.com]]><![CDATA[Only 10% down on Jumbo loans]]> 
So here is the deal with our newest loan.  I call it The "about time" loan.  It has been three years since we have had a loan product like this and it is about time:)

The Basics:
The maximum loan amount depends on the county you are in.  It is basically the high balance limit + $250,000.  Here are a few examples
County   High Balance Limit    About Time Loan Limit   Purchase up to with 10% down
Sonoma $662,500 $912,500 $1 Million and some change
Napa   $729,750 $979,750 $1,078,000
Marin  $729,750 $979,750   $1,078,000
Santa Clara $729,750   $979,750   $1,078,000
San Francisco $729,750   $979,750   $1,078,000
Sacramento $580,000  $830,000   $922,000

Basic Guideline:
760 minimum credit score
no more than 4 financed properties
must be owner occupied
need 2 months of reserves
2 years tax returns
debt to income must be under 45%
If property is marked as a declining area by appraiser an additional 5% is required down

These are either 5, 7 or 10 year Arms .  There is monthly mortgage insurance but is is low.

Call for more details and to qualify
Jennifer Ready 707-478-0637  or Julie Bell 415-378-2536
www.readybell.com]]><![CDATA[Home buyer mistake. Having a hard to get lender ]]>99% of offers require a preapproval letter of some sort before you can submit your offer.  That means that your lender can either help you or really harm you.  If they can get you the letter when you need it, you are good, but if they take days to respond to you they can ruin your chances of getting a home.

The majority of home shoppers write offers on the the weekends. Ironically, this is the exact same time that most lenders are not working.  There are few things more frustrating to a home buyer then having to wait to put your offer in until your lender is available on Monday to do a prequalification letter.  You could lose the house to another buyer whose lender was available and got the info over so that the buyer could submit their offer immediately.

When you are looking for a lender you should test their availability before you commit.  See how quickley they call you back.  If they do not call you back within 24 hours, bail now.  The last thing you want to do is lose a house because you did not get a call back.  Ask them if they can get preapproval letters to you on the weekends.  This is important. If they can't, cut your losses now.
Make sure you know their cell phone. 

What Is Realistic:  You should always get prequalified with a lender before you start shopping.  That means they should review your tax returns, asset statements, paystubs etc,,, before you ever get in a car with a Realtor.  After you have been prequalified you should expect your lender to get back to you within 3 hours on any day of the week if you leave them a message saying you are writing an offer and need them.  On the weekends make sure you call their cell phones.  If it is after 5; call the cell phone.

Remember you need a lender who is there for YOU. The last thing you need is a lender who plays hard to get.  If they are too busy to call you back at the start then they will treat you that way through the entire loan process. You deserve better.

-J Ready


www.Readybell.com



]]><![CDATA[Make sense underwriting back for Jumbo loans. FINALLY!!!!!!!!]]>Tax returns show not enough income?  No problem if you have enough money in the bank! 

I am happy to announce that we have some new Jumbo products that can help borrowers get into jumbo loans if their financial picture is a bit outside of the box.  Basically, we are working with an investor that really wants Jumbo loans for their portfolio.  They have asked us to get those loans for them. 

By Utilizing 
-Asset depletion
 -Cross collateralizing
- Pledged assets
- Make sense underwriting; This is portfolio so if it makes sense it gets done.

We are able to open a lot of doors that have been nailed shut the last few years.  The investors bottom line is that if it makes sense they will do it. 

If you want to buy a home with a Jumbo loan and are having a tough time due to tax returns or not wanting to liquidate your assets or you just want more options give us a call. 

Jennifer Ready 707-478-0637 or Julie Bell 415-378-2536
www.Readybell.com]]><![CDATA[Great new loan program! 5% down with no mortgage insurance]]>

Over the past few years we have seen the market get more restrictive.  Well, we are starting to swing the other way. Hooray!!!  This program is really good.  Here is the deal:

 5% down NO MORTGAGE INSURANCE. 

-Good on any SFR, PUD, condo
- Minimum 620 credit score
- Minimum only ONE year employment for salary employees

- The rates are competitive with current 20% down rates.  
- Owner Occupied Only  


The Fine Print:

- There are income limits HOWEVER if property is in designated census tract there is NO INCOME LIMIT.  We can determine this on an address by address basis

- 3% must be your own funds

- Homebuyer education required in most cases (you can do online; super easy)

- You can only own no other properties.  If you put 10% down you can own one other property
- Max loan amount $500,000 in certain areas
- No granny or 2nd units
- 5% down program is available only in the following counties: Alameda,Contra Costa,Los Angeles, Marin, San Francisco and San Mateo 

To inquire about income limits or to qualify please email Jennifer
Ready at  jready@mmcdcorp.com 707-478-0637 or Julie Bell at jbell@mmcdcorp.com 415-378-2536

 

]]><![CDATA[Great new loan program. 10% down with no mortgage insurance!!!]]>Over the past few years we have seen the market get more restrictive.  Well, we are starting to swing the other way. Hooray!!!  This program is really good.  Here is the deal:

 10% down NO MORTGAGE INSURANCE. 

-Good on any SFR, PUD, condo and Manufactured (yes, we are doing manufactured again now)

- NO CREDIT SCORE NEEDED- NO minimum FICO score!!!! (you cannot have liens, judgments or collections)

- Minimum only ONE year employment for salary employees

- The rates are competitive with current 20% down rates. 
-Owner Occupied Only   


The Fine Print:

- There are income limits HOWEVER if property is in designated census tract there is NO INCOME LIMIT.  We can determine this on an address by address basis

- 3% must be your own funds

- Homebuyer education required in most cases (you can do online; super easy)

- You can only own one other property
- Max loan amount $417,000 (can do $500,000 in certain areas)

To inquire about income limits or to qualify please email Jennifer Ready at  jready@mmcdcorp.com 707-478-0637 or Julie Bell at jbell@mmcdcorp.com 415-378-2536

 

 

]]><![CDATA[Abalone diving is a bad idea; Really it is; Seriously!]]>I covered this last year but it seems as though once again the abalone diving deaths are piling up.  The coasts of Northern California are incredibly difficult to swim on even if you are a professional ocean swimmer.  Abalone is super yummy but SOOO not worth your life.  Go the Ready way and buy the abalone.  Sure you have to pay for it, but then again buying it at a grocery store is cheaper than your family burying your body. For the latest abalone deaths see below
http://www.pressdemocrat.com/article/20110531/WIRE/110539944/1350?Title=Two-men-die-on-Mendocino-coast
http://www.pressdemocrat.com/article/20110422/ARTICLES/110429761]]><![CDATA[Lender Pet Peeve: Tax Return Fantasy Life]]>Let's role play through a conversation I have more often then I would like: Don't be this person

Client: 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. 


www.Readybell.com

]]><![CDATA[FHA; Why we have to ask about your spouse not on the loan]]>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

www.readybell.com]]><![CDATA[How to get in a home with only .5% down TOTAL That's $2000 on a $400,000 home!]]>Have you seen the articles on great bargain hunters who combine coupons to get their groceries for almost free? Well, that does not just apply to groceries anymore.  By combining special offers with certain loan products and incentives you can actually buy a $400,000 home with only $2000 at closing.  Yes, you can get into a $400,000 house for 2k. That is less than a rental deposit. 

Why and How:
When you buy a home you have two main costs that come into play that determine how much cash you will need to bring to the table. 
1) Downpayment
2) Closing costs

On a $400,000 house the lowest figures generally look like below
1) Downpayment: $14,000
2) Closing costs: $10,000+
Total needed from you $24,000+!

By being a savvy shopper it can look like below
1) Downpayment $2000 (CHF platinum program is a grant(free money) that will cover other 12K)
2) Closing costs $0 (Buy a Fannie Mae home and they are offering to cover 3.5% of closing costs (14k more free money).  Or if it is not a Fannie Mae property many other sellers are willing to give a credit towards closing costs.  You would be surprised what you can get just by asking.
Total needed from you $2000

For more info on CHF platinum or Fannie Mae's incentives check out the links to prior blogs I did on these programs. You can always email or call us to qualify. jready@mmcdcorp.com

CHf Platinum Program

Fannie Mae covers closing costs

Happy House Hunting!
Jennifer Ready
www.Readybell.com

]]><![CDATA[Homepath Vs FHA; What you need to know]]>Effective April 18th, FHA will once again raise their monthly mortgage insurance.  With the new raise Homepath is the clear winner.  Let’s look at the math

 Homepath   VS       FHA

Purchase price:      $ 250,000           $250,000

Down payment:   3%     3.5%

Upfront MI financed into loan   0     1%

Loan Amount:     $242,500       $243,662

Est Rate (No points)    5.875%      4.875% 

Principal and interest payment    $1434          $1289

Monthly mortgage insurance 0  $233

Est taxes and insurance    $360    $360

Total Monthly Payment   $1794 $1882  

Beyond the monthly savings Homepath does not require an appraisal.  Why pay more for a potential headache?   Also, with Homepath investors and 2nd home buyers can put down as little as 10% with no mortgage insurance.    Homepath is the way to finance Fannie Mae foreclosuresJ

For more information and to qualify contact The Ready Bell Group at Mason McDuffie Mortgage

Jennifer Ready , NMLS #247743     Julie Bell, NMLS#240206

707-478-0637  & 650-224-6522          415-378-2536

jready@mmcdcorp.com jbell@mmcdcorp.com

www.thereadyway.com www.readybell.com   

       

]]><![CDATA[Great News! Seller to pay closing costs]]>I have always been a Homepath Fan and huge advocate.  It is special financing for the Fannie Mae foreclosures.  Now there is an added bonus to check out the Homepath foreclosures. If you decided to look into doing a Homepath loan make sure you use a lender that really understands how they work.  We can close these loans in under 20 days.  See below

Fannie Mae brings back REO buyer incentives

By Inman News, Tuesday, April 12, 2011.

Inman News™
Fannie Mae is once again offering closing-cost assistance for buyers who close on a home in the mortgage giant's real-estate owned (REO) inventory.  Buyers who put in initial offers on or after April 11, and close on the sale of a Fannie Mae HomePath property by June 30, will be eligible to receive up to 3.5 percent in closing-cost assistance.
The offer is only good for buyers who intend to occupy the home they are purchasing as their primary residence -- second homes and investor properties are not eligible.
Offers submitted before May 15 have the best chance of qualifying, Fannie Mae said, as offers submitted after that "are particularly questionable for closing" by the June 30 deadline.

To check out Homepath homes in your area go to www.homepath.com

]]><![CDATA[Tick tock. Get your FHA loan now before it is 25% more expensive.]]>Today is April 11th.  You only have 7 days to get into contract with an FHA loan before it will cost you 25% more.  On April 18th FHA monthly mortgage insurance is increased.  If you get into contract before then you get the lower mortgage insurance even if you do not close for 30 days as long as your loan Guy/gal locks your FHA case # up. 

If you are on the fence with a property; hop on it.  Get the FHA case # reserved and decide later.  You want to lock in the lower mortgage insurance rates.  You can do this up till the 18th. ]]><![CDATA[Why your loan modification was declined]]>As usual the test lenders do when they determine if they should modify you tell them if they would make more by foreclosing. If they make more by foreclosing your modification is denied.  Nice right?  Read the article below for the specifics. 
http://www.housingwire.com/2011/03/23/crl-study-finds-modification-benefits-investors-more-than-tests-find]]><![CDATA[Deal Killer #22; The hidden bomb]]>In the past few months we have seen a lot of changes to guidelines and loan requirements in general.  A few months ago Fannie Mae (the rule setter for the majority of loans) started requiring that any accounts listed as "in dispute" must be taken out of dispute and then a new credit report run and new underwriter findings.  I am assuming this is in response to some of the new scams we are encountering, however it has gone to overkill land. 

If you have a collection from 2006 for $800; we will require it to be paid at close 9 times out of 10.  If that account is in dispute we need a letter from the collection account saying the account is no longer in dispute, so that we can fix your credit.  In order to fix your credit we use a product called "rapid re score."  Ironically if you as the client dispute an account and write a letter saying you no longer dispute it, rapid re score cannot fix your credit.  They need the letter from the creditor.

If you have ever talked to a collection company you know they do not always operate on the same wave lengths. If they refuse to do the letter and the bureaus say the account is in dispute you cannot buy the house. I wish I was kidding

Bottom Line: Do not dispute accounts. Have a lender check your credit before you start shopping and start clearing up any accounts in dispute now.]]><![CDATA[How to check your lenders NMLS license]]>Are you a double checker?  Great, make sure you do it right:)

First see what your lender NMLS# is.  If they have one it will be on there business card, email or on your loan application.  Once you have that number visit
http://nmlsconsumeraccess.org/
Type in their NMLS # only. You do not need to put nmls or the # sign
On the next page you will have to type in the code and click a box agreeing to the sites rules
Voila there is your lender.

Keep in mind at this point loan officers at banks are not required to be licensed. ]]><![CDATA[Why you want to buy now]]>FHA is the number one loan being done across the country right now. As of April 18th, the cost to have that loan increases. 
If you do not have quite enough saved yet check out our DOWN PAYMENT ASSISTANCE PROGRAM.   Below is what is going on with FHA that will affect your pocket book if you hold out on buying.


As of April 18th, 2011 FHA will once again be INCREASING their monthly mortgage insurance premiums. 

What this will look like in $

Example: $400,000 loan, less than 5% down, 30 year loan

Current monthly Mortgage Insurance: $300

New April 18th monthly Mortgage Insurance : $366.67

That is over a 20% increase!

That is an additional $800 per year in this scenario.

 

I would strongly suggest you

1)   Get qualified under upcoming changes and explore other loan programs

2)    get serious now.  You will need to be in contract prior to April 18th to avoid these changes.

Questions:  Jennifer Ready jready@mmcdcorp.com

]]><![CDATA[Realtors watch out for dry rot; Financing FHA]]>
The number one item on an appraisal that we see most often that can make your FHA deal a whole lot more complicated is DRY ROT. Just like the pic you see above.

Often overlooked by Realtors and clients, appraisers love to call out dry rot.  Once dry rot is called out in an appraisal the underwriter will require  a pest report then all section 1 items will have to be cleared before that loan will close.  Often we will see dry rot only on the frame of one window.  Just that one frame is enough to call out a pest for the ENTIRE property.  

How to protect your clients:
It is horrible to potentially have a purchase become a nightmare because of one piece of wood. As an agent/Realtor you should really look closely at the property before you have the appraiser out.  If you see any dry rot you should have that repaired before the appraiser gets out there.  The cost is generally nominal and a lot of listing agents will either do it if you ask or allow you to do it.  The strongest agents I know make sure all pieces with dry rot are repaired before an appraiser ever gets out there.  30 minutes of your time and $30 could save your client thousands of dollars and your paycheck.

What is Dry Rot: As defined on ehow.com (they have great pics too)
  • Dry rot is the destruction of wood caused by certain times of fungi. When the wood becomes moist, the fungi infest the wood. The process becomes a vicious cycle. The fungi increase the permeability of the wood, which lets the moisture soak in further and encourages the growth of more fungi. The three main types of fungi that cause dry rot are wood-decay fungi, sap stain and mold.


    • Read more: The Definition of Dry Rot | eHow.com http://www.ehow.com/about_6642961_definition-dry-rot.html#ixzz1F5EBSYlt
    ]]>    <![CDATA[Foreclosures; the unspoken VILLAINS. The Fraudsters type 1]]>The majority of the business we currently do is foreclosure sales. It is what is driving our market. "Real" sellers are rare, almost like unicorns, and the world in which we work is controlled by asset managers and institutions. Currently, there are tremendous opportunities for home buyers. Tremendous opportunities...

    Julie and I often go out to the properties and it can be heartbreaking. I can handle a "trashed" house any day. Holes in walls, flooring ripped out...no problem. There is however nothing more visually upsetting then a well maintained home with a chart penciled in on the wall showing the growth of a child for the last 15 years. There was a family here. This was a home.

    Today however, I am not going to talk about the displaced families, instead I am going to cover the unspoken villains who helped throw our housing market into such disarray. Generally, it is the lenders who are blamed for exotic mortgages, which is in fact quite a contributing factor. There is however a contingent of villains that is not covered as much who is just as guilty

    The Fraudsters Type 1:The Fraudsters, type 1, thought they were super smart and could work the system. They are the "shot-gunners." "Shotgunning" is when you take out multiple mortgages out on the same property at the same time with different lenders. For instance, if your home is worth $400,000 you would apply for three mortgages at the same time with three different lenders and three different title companies. None of the lenders knew about the other lenders and if timed perfectly all three mortgages would go through recording just a day or so after each other. Since the timing was so tight the title companies and lenders would not catch on. You would have $1.2 million out on a $400,000 house. This was a scheme that was extremely popular in 2006 and 2007. Today, there are safeguards in place that make this almost impossible, at the expense of the honest borrower of course.

    Reality Check: Amazingly, most of these fraudsters did not think that far ahead. Some people just did it to get extra money. They kept making their payments and then when the housing market tanked and they felt they lost too much value in their homes they walked away. They just walked away. But here is the deal; you can't just walk away from being a shotgunner. When a house goes into foreclosure it suddenly goes under a microscope. The lenders will figure out what has happened as soon as they try to take clear title. They will go after the fraudster as will the FBI.

    Effect: It is villains like the "shotgunners' who make the system more expensive and tougher for the rest of us. The lenders charge higher fees in order to make up losses incurred by these types of white collar criminals. It also creates another set of hoops for the honest borrower to jump through. You want to know why Fannie Mae now requires that we pull your credit right before funding? It is because of the "shotgunners." Another step, another hoop all because someone thought they could beat the system.]]>    <![CDATA[Why if you are home shopping you should buy ASAP]]>Check out the two articles below as well as my post from yesterday.  They sum up the upcoming (April) changes that will adversly affect you as a home buyer if you are putting down less than 20%.

    "How the Reform of Fannie Mae and Freddie Mac will affect you" by Wisebread

    http://www.wisebread.com/how-the-reform-of-fannie-mae-and-freddie-mac-will-affect-you

    and "Why you should buy that home now" Smart Money

    http://www.smartmoney.com/personal-finance/real-estate/why-you-should-buy-that-home-now-1297456803897/]]>    <![CDATA[FHA strikes again; Mortgage insurance to climb higher]]>

    As of April 18th, 2011 FHA will once again be INCREASING their monthly mortgage insurance premiums. 


    What this will look like in $

    Example: $400,000 loan, less than 5% down, 30 year loan

    Current monthly Mortgage Insurance: $300

    New April 18th monthly Mortgage Insurance : $366.67

    That is over a 20% increase!

    That is an additional $800 per year in this scenario.

     

    I would strongly suggest you

    1)   Get qualified under upcoming changes and explore other loan programs

    2)    get serious now.  You will need to be in contract prior to April 18th to avoid these changes.

    Questions:  Jennifer Ready jready@mmcdcorp.com

    ]]>    <![CDATA[Scam Artists strike again; Watch out Northern California]]>
    Mortgage Elimination:
    Yes, they claim they can make your loans disappear by having their lawyers argue that the bank cannot provide proof they own your note.  They are taking excerpts from news articles and outdated court cases to present a very moving argument to people they are trying to convince to do this.
    Problem is, this is nothing but a scam. 

    Here is how the scam works:
    1) They ask you to deed your house to their non profit.
    2) They provide fake documents showing you being "released" from your loan.
    3) They deed the house back to you
    4) You have to sell the house immediately.  They get 80%.  You get 20%

    Problem was your loan was never released.  They filed false documents with the register of deeds for the county so it looks like the loans were gone.  They are not
    On your credit report it will show accounts "in dispute." They will tell you this is temporary and that your credit will soon be clean.  WRONG.  The account in dispute will become an account due and you no longer have the property but you still have the loans.  Joy!
     Check out article on a similar outfit that was shut down.  The difference with this operation is they have you sell the house which means you are not the only one being ruined but also the people who buy your house thinking it has clear title. Welcome to lawsuit city.  Keep in mind it is not only the scam artist who is going to be in trouble. The process implicates the homeowner from start to finish and by the time lawsuit city hits they will be long gone.  All they have to do is do this with 20 homes to be set for life. 

    Note:  Scam artists are not always dark, shady types.  It could be a family friend or member of your church.  Greed is universal and people can justify anything if it suits their personal lifestyle.]]>    <![CDATA[The deal with 2nd preapprovals. Why you need one.]]>Why certain properties require a 2nd approval by the sellers preferred lender:

    1) If it is a bank foreclosure asking you to qualify through their bank, They are requiring this because:

    A) They want one of their people to check you out to make sure you are really qualified.  Sadly, a large percentage of  pre qualification or pre approval letters are not worth the paper they are typed on.  Some lenders do not even run credit before they say you are pre approved! 

    B) They want an opportunity to get your loan business.  Banks make money off of each loan they close.

    C) If the bank approves you and you go with another lender and the loan "blows up" you can go back to the bank and they can close the loan for you.  Remember they already approved you.

    2) It it is a foreclosure asking you to get a 2nd approval through their preferred lender.  This means that the foreclosing entity and lender are not in the same company.

    A) They want a lender they trust to go through your file to make sure you have the ability to close the purchase because of reasons mentioned in 1A

    B) They make absolutely no additional money if you use their preferred lender.  They do get peace of mind which can be priceless.

    C) They know if their preferred lender does the loan it will close.  If you use another lender and it "blows up." you can go back to the preferred lender to close the deal and rescue the deal.

    D)  Certain financing is available on certain types of foreclosures.  Very few lenders take the time to learn "niche" loans which is another reason you will see a preferred lender.  The preferred lender knows how to do the unique financing.

    Note:Due to the complicated nature of financing these days we are seeing preferred lenders on both short sales  and regular sales now too.

    Lenders' perspective:  I am fine with the 2nd approval process.  I am happy to call the other loan agent and see what they need and get it over to them as quickly as possible.  It is the nature of our business right now. Also, they are providing a complimentary service for my client. They are providing options.   I am always suspect of lenders that dislike this process.  It is really not that much extra work. It makes me wonder why they do not want their clients to have additional options.  

    Questions?  Jready@mmcdcorp.com

    ]]>    <![CDATA[FHA flipping waiver extended]]>

     

     

    FHA EXTENDS 'ANTI-FLIPPING WAIVER' TO HELP STABLIZE HOUSING MARKET:

    Measure continues effort to boost home values and accelerate resale of vacant properties:

     

    In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Federal Housing Administration (FHA) Commissioner David H. Stevens today extended FHA's temporary waiver of the agency's 'anti-flipping rule.'  The extension announced today is intended to accelerate the resale of foreclosed upon homes in neighborhoods struggling to overcome possible property abandonment and blight.

    With certain exceptions, FHA regulations prohibit insuring a mortgage on a home owned by the seller for less than 90 days.  Early last year, FHA temporarily waived this regulation through January 31, 2011.  FHA today posted a notice extending this waiver through the remainder of 2011.  This action will permit buyers to continue to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. It will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

    "As I noted when we first announced this policy change early last year, because of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers," said Stevens.  "Today I can report that this policy change has been effective.  Since the original waiver went into effect on last February, FHA has insured more than 21,000 mortgages worth over $3.6 billion on properties resold within 90 days of acquisition."

    FHA research finds that in today's market, acquiring, rehabilitating and reselling these properties to prospective homeowners often takes less than 90 days.  Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

    Stevens added, "Because of past restrictions, FHA borrowers have often been shut out from buying affordable properties. This action enables our borrowers, especially first-time buyers, to take advantage of this opportunity and buy a home that has recently been rehabilitated.  It will also help to move more foreclosed properties off the market and reduce the number of vacant homes in neighborhoods throughout this country."

    The extension announced today is effective through December 31, 2011, unless otherwise extended or withdrawn by FHA.  All other terms of the waiver will remain the same, and HUD continues to invite public comment on it. The waiver contains strict conditions and guidelines to assure that predatory practices are not allowed.

    To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver continues to be limited to those sales meeting the following general conditions:

    •    All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.

    •    In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.

    The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

     

    Read the waiver: http://www.hud.gov/offices/hsg/sfh/currentwaiver.pdf

    ]]>    <![CDATA[Down Payment Assistance Programs]]>There are currently a few programs designed to help homeowners into owner occupied homes with little to no money down. Generally, you will see a flyer or lender advertising about Down payment assistance but it never clearly says were the money is coming from.  Never take money if you do not know where it is coming from.  The last thing you or your family needs is a nasty surprise. A few of these programs are great and can really help you get into the home you would like. Today I will be covering the CHF Platinum Program  

    CHF Platinum program. 

    The CHF platinum program was designed to provide down payment assistance in conjunction with the purchase of a primary home in California.  It is a 3% grant that can be used towards closing costs or your down payment.  It can only be used if you are doing a FHA,VA or USDA loan.  Also the program does have income limits.

    Sonoma County: $96,480
    Marin County: $119,280
    Napa County: $98,160
    Contra Costa/Alameda:$108,360
    Santa Clara: $124,200
    San Francisco: $119,280
    Mendo/lake County: $85,200


    What is great about this program is that the income limits are fairly high and the 3% is never expected to be repaid.  It is a grant, also know as free money.  Qualifying for the money is as simple as being below the income limits and buying a house with a loan under $417,000.
    We do quite a few of these loans and they have helped quite a few people get into homes without depleting their reserves. 

    Example on how to use program: 
    Lowest down FHA: You contribute .5%, have grant cover 3% and ask seller to pay 3% of closing costs. You just bought a new home with only .5% down.

    When you need a little help:  Perhaps you are planning to go FHA and you have 3% saved.  You found your dream home but the seller will not help you with closing costs and you cannot afford them on top of your down payment.  Use the grant to cover your closing costs. The 3% can also be used to help with closing costs on VA or USDA.

    If you would like more info and would like to qualify for the program you can get me at jready@mmcdcorp.com or 707-478-0637.


    CHF Platinum
    ]]>    <![CDATA[Buying at auction; the dirty truth]]>For years we have heard whispers of faux bidders at both the large auctions and on the court house steps.  The theory was always that the banks/note holder would have a "undercover" representative that would bid the property up.  The goal being the bank/note holder does not lose too much $ to a lucky low bid.  Strangely this article is not about that but rather about bid rigging on the court house steps amongst buyers.  Hmmmm... Is the government focusing too much on the wrong group? Check it out
    http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/01/21/MN491HBP8L.DTL&tsp=1]]>    <![CDATA[Another theory on why rates are rising]]>Check it out:
    http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/01/16/BU2M1H92KB.DTL]]>    <![CDATA[FHA 203K. It does not have to hurt]]>

    FHA 203 K loan. The Rehab loan

    If this market has shown us anything positive it is that there are great housing deals if you look for them.  Unfortunately, sometimes these great housing deals require work to bring them to average condition.  Your everyday FHA or conventional loan will not work on these houses.  Enter FHA 203K. 

    FHA 203K is a rehab loan.  Basically you buy the house and finance additional money to bring the house into financeable condition.  If the amount of repairs is under $35,000 it is considered a streamline FHA 203k.  If it is over $35,000 it is a full FHA 203K.    The one major thing to keep in mind is that it is for owner occupied properties only.  Qualifying for a 203K is exactly the same as qualifying for a normal FHA loan.

    These loans are feared by the majority of the real estate commuity due to horror stories that circulate of the FHA 203K that took 6 months. 

    Tip#1:  The King of the FHA loan.

     The major thing that most lenders and Realtors do not pay attention to is the one thing that affects the speed and duration of the loan process.  The Contractor.  The contractor is the king of this loan.  If the contractor is fast and good and understands what his role is, the loan can move quickly.  If you have multiple contractors involved that are slow and do not understand what they are supposed to do, you can have a nightmare. 

    I always suggest that you use one contractor for the entire job.  Ideally, the contractor has done a 203k before or they are very interested in doing one and are willing to take direction from the lender.  For a streamline 203K they need to understand that when your loan closes they get half the cost of the materials upfront and then that they will not get the rest until the job has been completed and signed off by the lender.  This can take up to 6 weeks from the job completion.  If the contractor does not expect this upfront you can find yourself in a situation where you are being harassed by the contractor for payment.  Not a good place to be. If you have multiple contractors and one is slower than the others.  The others have to wait until the “slow one” completes his job.  This can also lead to unnecessary drama.

    Tip #2:  Know everything you want done early. 

    You need to know everything you want done to the home prior to the contractor doing their bid.  This is not a loan where you can add additional work. Once we get the contractor bid , we order the appraisal.  The appraiser has to go through the bid and address the items in his/her appraisal to show that this work will add value to the house.  If you decided you want to add  additional items then the contractor has to do a new bid and the appraiser has to go back out.  That costs additional money and time.

    Tip #3:  The Foreclosure angle:

    We are starting to see foreclosures where if the property is in less than average condition they are countering the offers with a 203K.  Basically, you write an offer with a basic FHA loan and the bank is coming back and saying the only way they will sell this house to you is if you do an FHA 203K.  The bank knows this house will not go straight FHA due to work needed so they are countering you with the only loan product that will work.  If you are trying to buy a foreclosure where you are countered to a 203K make sure if you decide to move ahead you ask for 60 days to close the loan.  Your original offer was probably for a 30 day close.  Closing a 203k in 30 days or less is extremely rare and not a risk worth taking. Ask for 60 days.

    Tip #4:  It can be a higher end Eco Loan: The maximum loan amount for a 203K is the same as FHA.  In certain counties that is as much as $720,000!  It is not just a loan for "shacks."  It can be a fantastic way to buy a dated house and update it.  Want some solar/eco friendly features?  You can do that with this loan also.

    Questions?  Email me at jready@mmcdcorp.com

    ]]>    <![CDATA[Own a home and you are struggling? Or are you a Realtor with past clients struggling?]]>Remember those interactive stories where your answers alter the story and affect the ending?  Well, apparently marketing at Fannie Mae is really into them. 

    Fannie Mae has created a new interactive video where you control the outcome of the story based on your answers.  It basically lets you role play through your financial situation.  I played with it for awhile and it does actually have some solid points.  It is at least a different way to look at your financial situation and thankfully they are honest.  Check it out
    http://www.knowyouroptions.com/ways-home

    I would recommend this for Realtors to send past clients to if that client is now in trouble. It answers the questions in a safe, non threatening way and the entire website is a resource that will help your clients. ]]>    <![CDATA[5 2011 Predictions; Crystal Ball edition]]>The last few years have been a roller coaster for everyone in the real estate market. With Crystal ball in hand this is what I see happening in 2011 

    1) An emotional yet controlled recovery: 
    The emotional aspect:  If you read the business section you can see the view on the recovery swing rapidly from day to day.  On Monday we are recovering and on Tuesday the market is being hailed as the next big depression.  On Wednesday everything is sunshine and rainbows and on Thursday we are doomed.  There is a lack on consistency in mood.  This is what we call an emotional recovery.  Every speck of data is sending the media and emotional investors to the extreme on each side. It is manic depressive to say the least.

    You can take advantage of this by investing when they say it is the end of the world.  It is amazing some of the deals on solid companies that have been offered up in the last 36 months due to doomsday news. It is a great time to start saving for retirement or increasing your retirement savings.   Rates also will go up and down with the news. Quick cheat sheet below
    Great Depression = lower rates    Recovery= higher rates

    The Control Factor:      This recovery is being controlled and pushed along by the government and the "powers that be."  Look at the housing issue.  Our country cannot afford to let the foreclosures all hit the market at once. There are just too many.  This happened in 2008 and it devastated home values and threw the economy into the dump.  Since the 2008 free for all, there has been a much more controlled release of foreclosures.  Between the attempts at modifying, moratoriums and behind the scenes deals we have been seeing foreclosures come out in a low controlled movement.  Expect this to continue. The flood of 2008 will not happen again. It will be the trickle of 2011,2012,2013 and 2014.  I say no to the double dip.

    2) The Year of the Short sale:
    Short sales are speeding up a little bit which is great but what is even greater is that in the past few months we have seen more and more buyers  actually wanting to buy a short sale.  In the past people were hesitant due to all the unknowns involved.  However, short sales in many cases are now priced more aggressively than foreclosures, there is more short sale inventory and lenders are more willing to approve them. Also, there is new legislation in CA that makes it more attractive for homeowners to short sale their homes.

    3) Lending to loosen a bit:  We are starting to see the beginning of slightly looser lending. Debt ratios are not loosening up but some of the documentation is. Stated is still a far way from coming back although there are some hard money sources offering stated income as long as there are assets.  We are starting to see more products coming into the market and more investors wanting to do local deals that are unique.  A big part of our 2011 plan is trying to say yes twice as much as we say no.  


    4) Modifications to remain problematic:  The way in which modifications are being handled is so poor that I have absolutely no hope that it will be fixed by the end of 2011.  For example, I was reviewing a friends credit report who was going through a modification and even  though they had made their modification payment every month on time their credit history showed 7 lates due to partial payments (the modification payment).  Their score had dropped from 780 to 540.  They did everything right and their credit was hit harder than if they had done a short sale.  Bank of America is being sued by a few states over their modification processs and their have been countless stories of modifications gone bad.  The bottom line is that the servicers make more money by foreclosing or a short sale than they do by modifying. Until this is changed expect modifications to remain useless for the masses.

    5) Foreclosures are here to stay:  There will not be a flood but the trickle will continue.  There will continue to be some great foreclosure deals.

    For buyers and investors 2011 will be a year filled with opportunity.  For everyone hoping they can gain equity to refinance their house we are still a few years off. I do still hope that a no equity refinance will be introduced but I am not holding my breath.

    -Jennifer Ready

    ]]>    <![CDATA[4 quick money tips]]>Below are a few quick ways to save money without cutting into your lifestyle.  By paying attention to what you are using and what you are spending you would be surprised how easy it is to save some money

    #1 Cell Phone plans: Log on to your cell phone account and check your usage.  If your rate plan is for 900 minutes but on average you have been using 300 minutes by dropping to a plan that is 450 or 500 minutes you will save an average of $20 per month and still have a minutes cushion. 

    #2 Insurance Companies:  Insurance companies thrive on consumers laziness. You should compare your insurance once a year to see if you are getting a good deal or if you could get a better deal.  A few years back, I made the rookie mistake of not doing this and found out my husband and I had been overpaying our home insurance by over $60 per month!  I got the same exact coverage with a different insurance company and saved $720 a year.  That new insurance company then tried to raise my rate the next year and I called around again and found a better deal for the same insurance.  Shopping tip: Try to stick with local insurance agents. You generally will get better service then calling an 800 number and they have the ability to fight for your business.

    #3: Take advantage of what your employer offers:  If you are fortunate enough to work for a company that will match contributions to your 401k make sure you are contributing to your 401k.  They are giving you extra money make sure you take it.

    #4  Use Coupons:If you buy a Sunday newspaper they are generally filled with coupons for everyday items.  Clip them out and use them.  You would be surprised how quickly they add up. You can also download coupons on www.coupons.com

    -Jennifer Ready

    ]]>    <![CDATA[Secrets you need to know about you Realtor]]>Secrets you need to know about you Realtor

    I am assuming these are secrets because some of the behavior I have seen by buyers recently has frankly got me convinced these must be secrets
    1) Your Realtor works for commission
    2) They do not get paid a nickle unless you buy a home with them
    3) They do not get an hourly wage from the company they work for.  Generally they pay the company a fee to work for them.
    4) Realtors are professionals and their time should be respected just as you would like your time respected. 
    5) They are investing time in helping you find a home so that ultimately they will get paid.They sell houses for a living not show
    6) You should work with one Realtor.  Interview a few early on and pick one and stick with them

    In the past three months I have seen the following happen.  When each of these stories were told to me I was floored. Names have been changed

    1) Jane had been showing Jill and Bob houses for 2 YEARS.  Every other weekend Jane would take them house hunting.  They had very specific areas they were interested in that Jane took them to.  Two days after Jane spent 10 hours in the car with them Bob calls her up.  "Jane great news!  We found a house and we are writing an offer!."  Jane is excited she replies, "Which house? Was it that we saw was it that nice one in Napa or..?"  "No no." says Bob "we found a house in forestville and the agent already wrote the offer for us ."   Jane chokes, "what?"  Bob explains, "well we had areas we were looking at with you and we recently met a new agent who showed us other areas".  Jane just lost a million dollar sale.  She had never looked in other areas because they had been very specific about what they wanted.  Two years every other weekend and the buyer thought it was "great news" and Jane would be excited that he was buying a home with another agent.
    2) Grace had shown Sue and Bill their dream home.  It was a shortsale and Grace got their offer accepted by the seller and followed up with the listing agent every week for status.  While waiting for the shortsale she would show them property for about 10 hours once a month.  6 months turned into 7.  Sue and Bill told Grace they were going to switch to the listing agent so that the listing agent would have more incentive to get the shortsale approved.  The listing agent was not the most moral and went with this.  Sue accidentally called Grace a week after delivering this news and said "sorry wrong number."
    3) Jerry had been helping Joel look for houses for 6 months.  Joel's family was super involved so every time they wanted to see a house for Joel,Jerry would also show them.  Joel finally found a house he wanted.  While Jerry was preparing the offer (it took a few hours he had some other clients to wrap up) Joel determined he was not getting good enough service and called an agent out of the phone book and asked them to write the offer.

    Every buyer deserves to have an agent they like and who will get the job done for them.  It is best to meet a few when you first start looking and pick one.  Keyword is one. Let them know every area you are interested in and respect their time. They will take great care of you.  Also, get prequalified early that way they will show you the right price range.

    A parting thought: If your Realtor does not answer the phone at 10pm when you call it is not because they are not giving you good service it is because it is 10pm. 

    -Jennifer Ready

    ]]>