Monday, October 29, 2012

Warrior Weekender Report - Oct 26th 2012

Warrior Weekender
October 26, 2012

Presented to you by:

Michael O'Rourke of Big Valley Mortgage

Despite the fact that the Federal Housing Finance Agency released their report accidentally on Tuesday evening instead of Wednesday morning, the important aspect is that the report continues to show an improving housing market. According to the FHFA home prices rose .7% in August following a .1% rise in July. Experts were anticipating an increase of .4% so the fact that the August report was better than expected bodes well for the belief that housing is on the rebound. The August increase is 4.7% better than the same time last year.

The new home market is a greater source of strength for the economy in that new home sales jumped 5.7% in September. This is the largest increase since the stimulus efforts of 2010. Although prices for new homes slid back just by 3.2%, we are still seeing that median home prices are 11.7% higher from a year ago. Despite all of the recent strong news in housing, the stock market has not been reacting to it on account of investors being focused primarily on employment and corporate profits reports.

The pending home sales report continues to lag behind the sales growth for new homes. September’s increase of only .3% was a little disappointing to most that were expecting an increase of 2.5%. The National Association of Realtors remained upbeat in that the report was in positive territory and that the belief that continued low interest rates will spur home purchases significantly in 2013.

Speaking of corporate profits, overall the numbers released this week have been worse than many analysts and investors anticipated. Talk of an economic slowdown is really taking hold as more and more data is showing that consumers are retreating in their spending habits once again. Initially I thought that a big portion of this could be due to the impending election, however the slowdown is on a global scale and not just in the United States.

First time jobless claims have been swinging wildly over the last few months and this week’s report is no exception. After jumping up to 392,000 the prior week, the report this week shows a drop down to a slightly better level of 369,000 which was in line with expectations. What is more concerning is that the prior week’s report initially came in at 388,000 and then was adjusted up to 392,000. Had the initial report come in at the higher level, you would have seen much more reporting about it because that is coming dangerously close to the psychological 400,000 mark.

To no one’s surprise the Fed left interest rates unchanged after this week’s monetary policy meeting. In addition, the Fed reiterated their commitment to keep interest rates exceptionally low as well as continue their massive bond buying and mortgage backed securities purchase programs to keep interest rates down.

Next week’s economic reports are:

  • Wednesday October 31 - MBA Applications and ADP Employment Report
  • Thursday November 1st - First Time Jobless Claims and ISM Manufacturing Index
  • Friday November 2nd – National Unemployment

As your mortgage professional, I am happy to assist you with any information you may need regarding mortgage or real estate information. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at 707-455-7070.

Wednesday, October 24, 2012

Housing Starts Jump Up 15%

Oct. 17 (Bloomberg) -- Deirdre Bolton reports today's top headlines. She speaks on Bloomberg Television's "Money Moves." (Source: Bloomberg)

Sunday, October 21, 2012

Big Valley Mortgage Testimonial

“I contacted Big Valley Mortgage regarding the purchase of a home. Michael O'Rourke sat down with me and walked me through the whole process from everything that I need in order to start the process to the final closing. Michael even directed me to one super-lady of a realtor.

Every single step of the process was amazing, Big Valley originally not only got me a low interest rate (locked for 30 years), the week of final review...I got an even lower interest rate-well below the current 'great rates'. The staff behind the scenes were also so easy to work with (Joanne and Marilyn you guys rock).

Buying a house is a very STRESSFUL experience, however Michael and his team at Big Valley Mortgage made it a breeze. If you are looking or even considering buying a house and want a great/honest and friendly mortgage company, then look no further than Big Valley Mortgage.”

-Perry H. Vacaville, CA

Thursday, October 18, 2012

A Complete Review Of The Major Credit Reporting Agencies And Credit Reports by Linda Meadley

Today we have grown into a nation looking for instant gratification, the buy now pay later syndrome. So, without a good credit rating it will be very difficult to get the things you want at the time you want them. Consumer credit has become widely accepted as a substitute for ready cash, so having good credit is the key to your future of getting all you deserve, and the key to opening doors that make your life more comfortable and worry free.

As a consumer it is to your benefit to fully understand how credit works and every aspect of what is involved when you apply for any type of credit, including the major credit reporting agencies that hold your credit report file. When you understand what the banks and other creditors are looking for, and you know what is in your credit report, you will be able to control your financial future and make the best choices for yourself and not accept anything less than what you deserve.

When you apply for credit, lenders want to know about you, your employment history, your income, your assets, and most importantly they want to know about your credit history. A lender will get lots of information directly from you through a credit application, then, they will pull your credit bureau reports to confirm this information and review your credit references and credit report scores. Then upon evaluation of your credit application combined with your credit report, the lender will determine your credit risk and make a final decision on whether or not to grant you credit and at what rate of interest they will charge you.

So, now that you know the process of getting credit, let us take a deeper look into the factors that can either be an asset or liability to you when applying for credit - your credit report.

What is a credit report
Your credit report is your financial resume, a summary of your financial reliability, containing both personal and credit information. Your credit report is maintained by credit reporting agencies, also known as credit bureaus, and provided to lenders, employers, insurance companies, landlords and other companies who have a legitimate need for this information, based on the federal Fair Credit Reporting Act (FCRA). Your credit and personal information is reported to the credit reporting agencies from various creditors, in most cases electronically, instantly updating your file.

What is in my credit report
Your credit report is divided up into five main areas: personal profile/identifying information, inquiries, credit history, public record information and your credit score.

PERSONAL PROFILE / IDENTIFYING INFORMATION - this is where all your personal information is recorded - your name including any alias and possibly your spouses name, current and previous addresses, Social Security number, date of birth and current and previous employment. You might find some of this information is incorrect or incorrectly spelled, this can occur when creditors pull your credit bureau as they usually enter in the information though the computer where data entry errors can occur, and these mistakes will update your credit bureau report. However, if there is information that is not even close, such as an address, this should alert you to investigate this further as it is a possibility that you may be a victim of identity theft.

INQUIRIES - in this section you will find listed all the parties that have requested a copy of your credit report and the date it was done over the past two years. There are two types of inquires, soft and hard. A hard inquire is when you have applied for something and is initiated by you, for example, you have applied for a loan or mortgage or completed a credit application for a credit card or even applied for insurance. These hard inquiries are the ones that appear on your credit report and are visible to creditors when they access your credit report. A soft inquiry only shows on your credit report when requested by yourself and do not show to the creditors. A soft inquiry can come from your existing creditors that are monitoring your account, companies that are looking to offer you promotional applications for credit and each time you request a copy of your credit report.

CREDIT HISTORY - in this section you will find an itemized list of your credit cards, loans and mortgages, both currently active accounts and past closed ones. The information reported includes, type of account, when it was open, the high balance or limit, monthly payments, date of last payment, how the account is paid including any late payments, date of last activity and a rating of how the account was paid.

PUBLIC RECORDS - this information is obtained from local, state and federal courthouses and includes bankruptcy records, foreclosures, tax liens, monetary judgments, court-ordered payments, and over due child support payments. Public records are a negative credit reference and will lower your credit score. They also stay on your credit report anywhere from six to ten years.

CREDIT SCORE - your credit report scores are a rating determining you credit risk and the likelihood of defaulting on a loan. Lenders will use this score as a tool to assist them in deciding whether or not they will lend you money. Your credit score is a snap shot of your credit at that point in time, and can change on a daily basis. The score is a three digit number ranging between 300 and 850. Statistics show that the higher the number the less likely you will default on a loan, therefore you are a good credit risk; and the lower the number the greater chance there is for you to default on your payments, making you a greater credit risk.

When your credit score is low, you still may be able to borrow money but, you will most likely have to pay a higher rate of interest and you may not get all the money you request and possibly have to pay additional fees, basically you are at the mercy of the lender. However, the higher your credit score is the more you are in-charge, you can get any loan at the best possible rates with no restriction.
Your credit score is a complicated calculation, where the credit reporting agency takes into consideration many factors, including but not limited to, your payment history - late payments, both current and previous will bring down your score; your credit balance in relation to you limit - if you are at your maximum credit limit or if you are over it will bring down you score; the number of inquires - if you have to many in a short period of time it will bring down your score; the length of time you have had credit, the total number of outstanding debts and any derogatory information or public records, such as bankruptcies, collection, judgments and written off accounts - will bring down your score.

Where does the information on my credit report come from?
Your credit history information is gathered at companies called credit bureaus or credit reporting agencies. There are three major credit reporting agencies, Equifax, Experian and Trans Union. They receive information voluntarily from creditors and the credit reporting agency updates and maintains your credit report file with this information. Creditors report, loans, credit cards, mortgages, on a regular basis electronically. Your file is also updated when you apply for credit, as the information from your credit application is submitted to the credit reporting agencies when they pull your credit report.

Who are the major credit reporting agencies
There are three major credit reporting agencies. Equifax, Experian and Trans Union. These are independent companies from one another, and it is important for you to know that they do not exchange information. This means that it is quite possible that you not only have a separate credit report with each of them, but that they may contain different information. There are hundreds of smaller credit bureau companies across the country however these major credit companies are the largest and the main bureaus that the banks and financial institutions use. You will find that creditors may use one of the three credit reporting companies, however it is not unusual for them to use all three.

Who has access to my credit report
The Fair Credit Reporting Act (FCRA) contains rules regarding who can access your credit report. Generally speaking, a credit reporting agency may only provide information from your credit file when the requested relates to the extension of credit, collection of a debt, a tenancy applications, an application for employment or insurance, the issuance of special licenses or potential financial dealings that involve you. The law also gives these companies access to your report as part of an ongoing business relationship. An example of this would be you have a loan at a bank and you miss your payment, this gives that bank a right to obtain an updated copy of your credit reports. Credit card companies use this option a lot. They consider it part of the maintenance of your account.

As credit cards are revolving (not a closed end loan), a customers circumstances can change, so credit card companies will obtain updated credit reports on their customers to review them and look for warning signs of a customer getting over extended in credit which could result in problems fulfilling their obligations. This is how credit card companies can either raise or lower your credit limit or interest rate automatically. However, in the case of an employer, this law does not apply and they need the employee's permission each time they wish to request a copy of your credit report.
You are also entitled to copies of your credit reports, and today with the internet there are many fast and easy ways to obtain credit reports online.

 You can purchase a copy from each of the major credit reporting agencies, Equifax, Experian or Tran Union, the cost may vary however, under the latest Federal Trade Commission (FTC) rules they are restricted to the maximum amount they can charge you. Check with your state laws, as some states require the credit bureau companies to provide you with a copy of your credit report periodically for free. The FCRA gives you the opportunity to receive a copy of your credit reports if you have been denied for credit or other benefits based on your credit report, you are entitled to receive a free credit report from the credit bureau that provided the report. The FCRA also allows you obtain totally free credit reports. If you suspect that you are a victim of identity theft or fraud, if you are unemployed or if you receive welfare assistance.
Linda Meadley is very knowledgeable in the field of credit. Throughout her 20 year career she has worked as a mortgage and loans office, credit manager and financial advisor, assisting consumers in their financial endeavors. To further assist consumers she has a web site dedicated to credit reports. Learn everything you ever wanted to know about credit reports, and where you can obtain totally free online credit reports [].

Article Source:

Friday, October 12, 2012

Sorting Through The Pieces

I am sure if you stand outside the fence by the White House, you will see President Obama doing the happy dance in the Rose Garden.  The President is most likely celebrating Friday’s national unemployment report showing that unemployment unexpectedly declined to 7.8% from 8.1%.  Most experts were expecting the rate to increase by .1%.  This report comes two days after the President, according to 77%of the population that watched the debate, said he got his butt kicked by presidential challenger Mitt Romney.  The unemployment report is certainly welcome news for the President and his campaigning efforts.
The reality of the decline in the unemployment rate has more to do with people stopping their search for work than it does with new jobs created.  The numbers however do show a very slowly improving labor market with September’s report of an increase of 114,000 jobs.  Along with Friday’s employment report, the labor market announced that there was an upward revision to the employment numbers for July and August by 86,000.
There is a risk, however, of the unemployment rate jumping back over 8% in the next report if more job seekers resume their employment search.  The announcement of today’s decline undoubtedly will inspire some people that have given up to once again look for employment.  If many people jump back into the searching for work without a significant increase in actual hiring’s, then the odds on the employment rate jumping in November’s report are quite high.  An announcement of an increase only five days before the election could have a dramatic impact on how voters cast their vote.
In other news the pace of manufacturing is showing modest signs of improvement.  After 3 months of declining production, September showed a better than expected increase providing optimism for future growth.
Construction spending, although down as a whole, showed improvement in the residential sector.  Private residential spending rebounded a notable 0.9 percent, following a 0.1 percent slip in July.  Overall construction spending is up 6.5 percent.

In the release of the FOMC’s minutes from their last meeting, it is quite evident that although there was enough agreement amongst the members to launch QE3, it remains very clear that there are many areas the board is not of the same mind set.
The Fed has stated that they will keep interest rates low until 2015.  Some members have raised concern that this statement sends the wrong message about the economy.  Some members believe that saying rates will remain low for another 2 or more years indicates that the Fed is pessimistic about the economy and the recovery and this may delay hiring by employers and spending by consumers.
As your mortgage professional, I am happy to assist you with any information you may need regarding mortgage or real estate information.  I welcome the opportunity to serve you in any way I possibly can. Call us at 707-455-7070.

Tuesday, October 9, 2012

We're A Full Service Mortgage Provider

Let us help you through the home loan process. With the right information and guidance, getting a home loan can be a fast and easy process.

We’re a full service provider – from conventional loans to refinances, we are here to help you through the loan process:

First Time Homebuyers
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Saturday, October 6, 2012

Introduction to Reverse Mortgage by Alex G Cretu

In the life cycle of an individual it is a natural occurrence to modify priorities depending to their age. Regarding financial needs, for example, children have simple financial worries. Adolescents, on the other hand, have bigger however achievable necessities. Young employees have challenging and usually unnecessary money concerns. Yuppies, as they are referred to in urban slang, have a increased disposition purchasing due to the first excitement of real-world adulthood.

Middle aged individuals have even more challenging still defined economic necessities. The senior bracket or folks approaching retirement have defined monetary needs. Considering that lots of people in their retirement age have a specific idea of their desires, they are the individuals which are usually targeted by bank and financial institutions to get loans or reverse mortgages.

Everyone at the point of pension age would possibly be more interested concerning funds and price savings above everything else. And that is perfectly understandable because exiting the labor force completely would imply ceasing to obtain a paycheck on a regular schedule. Many people, when evaluating and calculating their bank assets and savings would feel that their money may not be sufficient to last them through their retirement period. That is precisely why mortgages and loans benefit from this demographic.

A type of mortgage that is designed exclusively for the senior bracket is a reverse mortgage. It is only available for people 62 years and older. The reverse mortgage is a loan which is placed on the home equity. It is identified as 'reverse' because it is not like normal mortgages when the property owner receives a lump sum and repays the loan provider for the debt. In this kind of mortgage, the financial institution releases money to the property owner for the life of the mortgage and the loan amount boost is directly proportional to the amount released.

The contract gets outdated when the property owner dies, sells the house or moves out. In this case, it may be safe to say that, in effect, the mortgage expires when the property is sold. Should the homeowner die or choose to move out, the allotment from the lender stops when the aim to sell the house is expressed, otherwise, the release of funds to the client will be continuous. In case of death, the beneficiaries will inherit the mortgage and the property, and they can choose to continue the allotment or negotiate the debt, that is if they plan to move out.

Once the property is purchased, part of the proceeds will be used to repay the home equity mortgage. If there is an excess, the homeowner can keep it, if the proceeds are not sufficient to negotiate the amount, the bank or the insurance provider of the bank with the loan will absorb the mortgage.
Before getting a reverse mortgage, one must analyze carefully and consider its advantages and possible complications. This mortgage binds the home to the lender with no chance of getting back the property because as mentioned previously, selling the house is the only factor that would define the conclusion of the mortgage.

Article Source:

Wednesday, October 3, 2012

It's Time For The Vacaville Kid Fest. Sat, Oct 6th, Andrews Park, Vacaville. FUN!

Vacaville Kid Fest was started in 1999, when an idea was born to create a "Children's Festival", a place where families could come and have a day of activities with their children at very little or no cost, and also have the opportunity to learn about many of the services and resources that were available to children and families. We adopted the theme "For the Child in all of us".

A group of City of Vacaville representatives, ranging from business owners and managers, nonprofit groups and media people were approached with the idea and met it with enthusiasm. And thus, Kid Fest was born.

The first Kid Fest Core Committee consisted of Shauna Manina, Meaghan O'Neill from Vacaville Police Dept., Linnea Dischinger from Vacaville Fire Dept., Todd Grames and Suzanne Green from Community Services Dept., and Reggie Hubbard from Housing & Redevelopment Dept. Other business people from The Reporter, Downtown Vacaville Business Improvement District, and others all committed to the vision of a day of low cost or no cost activities, free resources, and fun.

Our first event in 1999 had 1 stage and 40 booths, with everything from food, crafters and merchandise vendors, a wide range of social service and community nonprofit groups, free children's games and entertainment, bounce houses, and a very strong focus on child safety and health. From the beginning, a large component of the event has been the presence of Vacaville Fire and Police Depts., with their equipment displays, children's fire muster, and safety information.

By 2001, there were 2 stages of entertainment and over 120 booths participating in the event. The committee members have changed over the years, but the event has continued, and become part of the fabric of what makes Vacaville a family oriented community. The focus remains on child and family safety and health.

See more about this wonderful organization at

See you there!