Sunday, March 31, 2013

Should you talk to a mortgage professional before house hunting?

Absolutely! Even if you haven't so much as picked out houses to visit yet, it's important to see your mortgage professional first. Why? What can we do for you if you haven't negotiated a price, and don't know how much you want to borrow?

When we pre-qualify you, we help you determine how much of a monthly mortgage payment you can afford, and how much we can loan you. We do this by considering your income and debts, your employment and residence situations, your available funds for down payment and required reserves, and some other things. It's short and to the point, and we keep the paperwork to a minimum! 

Once you qualify, we give you what's called a Pre-Qualification Letter (your real estate agent might call it a "pre-qual"), which says that we are working with you to find the best loan to meet your needs and that we're confident you'll qualify for a loan for a certain amount.

When you find a house that catches your eye, and you decide to make an offer, being pre-qualified for a mortgage will do a couple of things. First, it lets you know how much you can offer. Your real estate agent will help you decide on an appropriate offer, but being pre-qualified gives you the confidence to know you can follow through.

More importantly, to a home seller, your being pre-qualified is like you walked into their house with a suitcase full of cash to make the deal! They won't have to wonder if they're wasting their time because you'll never qualify for a mortgage to finance the amount you're offering for the home. You have the clout of a buyer ready to make the deal right now!

Thursday, March 28, 2013


Here is a list of information mortgage lenders will use to consider your Loan Application:

For all loans:

Social Security Card for each borrower.
Current Driver’s License for each borrower.
Most recent 2 year address history.
Most recent 2 years employment history; name of employer(s), dates of employment, employer address for current work location,  number of years on current job, number of years in same line of work/profession, current position, main business phone number for current work location.
Current paystubs covering most recent 30 consecutive days.
Last 2 years 1040’s (Federal Tax Returns), including all W-2’s and 1099’s.
 If applicable, Award Letters for Social Security Income and Pension Income and verification of receipt.
2 months statements for all asset accounts, i.e. bank accounts, 401k’s, IRA’s, Investment Accounts (include all numbered pages).  All non-payroll deposits that exceed 10% of combined monthly gross income must be sourced/papertrailed. Any other deposits may require additional documentation, subject to underwriter discretion.  Prior to any questionable deposits, first discuss with us.
If a homeowner, current monthly mortgage statement, tax roll and home insurance policy on your property(s), and rental agreement if applicable.
If a purchase, please contact an insurance company of your choice and request an insurance quote for property once in contract.  Have insurance agent fax or email the quote to us showing coverage and premium amount.
If renting, 2 year residential history showing name, address and phone number of landlord(s).
List of liabilities and balances.
 If applicable, bankruptcy papers, divorce papers or explanation for delinquent accounts.

Other income information you may need:

If you are self-employed:
2 years 1040’s (Federal Returns) for Sole Proprietorship
If a Partnership, include 2 years 1065’s and K-1’s
If an S-Corp , include 2 years 1120S and K-l’s
If a regular Corporation, include 2 years 1120’s
Note: current Balance Sheet and Profit and Loss signed by a CPA may be required.

If you are employed by a family member:
Most recent paystub(s) documenting 30 days income.
W-2’s covering the most recent 2 years.
2 years 1040’s (Federal Returns), verifying no ownership interest in the company.  If not addressed in the personal tax returns, a CPA letter is required to verify no ownership in the company.
Written Verification of Employment covering the most recent 2 years.
A minimum of 24 months average of income must be used in qualifying.

If you are divorced or separated:
Complete executed Divorce Decree and Settlement Agreement.
Payment history of alimony/child support over the past 12 months, if it is a financial obligation.
If you choose to have this be considered as part of your income, (you do not have to) be prepared to provide 12 months cancelled checks or bank statements reflecting income deposits.

If you own real estate:
If you are selling your home but it has not closed: a copy of the sales contract.
If you have sold your home and it has closed and you will use the proceeds for your new down payment:  A copy of the Hud-1 Uniform Settlement Statement.

If you are buying a home:
Purchase Sales Contract or offer to purchase and all addendums and counter offers, fully executed with signatures of buyer, sellers and agents.

If  the source of your down payment is a gift:
Name, address and relationship of donor.
Gift Funds will be verified in both the donor and recipient’s accounts.
Note: Not all loan programs allow gifts to be a part of your down payment.

For VA Financing:
DD214 and Certificate of Eligibility

For Construction/Perm Loan:
Contact us regarding permanent financing requirements.

Monday, March 25, 2013

Friday, March 22, 2013

March 2013 Word on the Street - Command Staff

In this edition of Word on the Street with Vacaville Police Chief Rich Word, we meet the Chief's command staff of three lieutenants - John Carli, Ian Schmutzler and Matt Lydon.

Tuesday, March 19, 2013

Home Loan Mortgage With Bad Credit: An Affordable Route to Home Ownership

Bad credit ratings are supposed to play havoc with the chances of securing approval on a mortgage application, but it is possible to get a home loan mortgage with bad credit. Having a bad credit history is no longer the end of the world when seeking large loans. The right lender is always willing to take the risk.
The fact is that bad credit is not the indication of risk that it once was, with honest borrowers suffering in the economic crises of recent years. And with the growing influence of online lenders as known experts in lending to bad credit borrowers, getting approval with poor credit history is not likely to be too difficult anyway.
There are always compromises to be made, of course, but these can be affordable. Interest rates on a home loan are typically higher than those charged normally, but they are also almost always lower than those charged by traditional mortgage providers.
What Criteria Are Required?
Satisfying the basic criteria is essential first if there is to be any chance of getting a home loan mortgage with bad credit. Of course, the specific criteria themselves are no surprise at all, relating to age, citizenship and employment status. These are simple to prove.
Essentially, all loan applicants must be over the age of 18, while only US citizens and legal long-term residents are entitled to apply. Full-time employment, as well as an income sufficient to ensure repayments are made, are also essential. When these aspects are confirmed, then the task of seeking approval with poor credit history can begin.
That stage of the application process has its own set of issues, not least the debt-to-income ratio that the applicant has, which dictates the affordability of the home loan. The only way in which bad credit scores play a part is in the interest rate to be charged.
The Importance of Debt-to-Income Ratio
While credit scores can have a minor effect on the affordability of a loan, of far greater significance is the debt-to-income ratio the applicant has. Securing home loan mortgages with bad credit is dependent on proving repayments can be made comfortably, and the ratio establishes that as either fact or wishful thinking.
The ratio measures the income earned each month against the total monthly expenditure. Set at 40:60, it allows no more than 40% of income to be committed to repaying loans, so getting approval with poor credit history is heavily dependent on staying within that limit.
Lenders are very strict about the ratio, so if the home loan repayments cannot fit within the 40% limit, then they will reject the application. The size of an income is irrelevant if existing debt is too high, so clearing some of that debt with a small consolidation loan is the best way around that problem.
Use a Large Down Payment
A key part to any property deal is the down payment made, but its importance extends far beyond the role of just sealing the deal. It also reduces the size of the required mortgage, thus lowering the debt. Getting a home loan mortgage with bad credit is greatly helped by a providing a larger down payment.
For example, a 10% payment on a $200,000 property means a mortgage of $180,000 is needed, but a 20% down payments lowers the sum to $160,000, and approval with poor credit history is easier to secure on the smaller sum.
Remember too that with a lower principal borrowed comes a lower monthly repayment. And with every savings made, the better off the borrower is. After all, over 30 years, saving just $50 each month on home loan repayments means a total savings of $18,000 over the lifetime of the mortgage.

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Saturday, March 16, 2013

An Overview Of The Loan Process:

Make no mistake, there's a lot involved in getting a mortgage loan. You wouldn't be here on our website if you could fill out a one-page application and get the best loan for you funded the same day. What we do is most of the heavy lifting for you, so you can concentrate on what's important -- preparing to move into your new home, saving money, or making plans for your home equity line of credit.

There are four main steps involved in getting a loan. You'll see that we've made your part in them as easy as possible, and we do all the work! That's what we're here for.

Step One: Determine how much you can borrow:

This is a function of a couple things. How much of a monthly payment can you afford? And given your unique credit and employment history, income and debt, and goals, how much will a lender loan you? The first part you can get a rough idea of by using the calculators on our website. We'll also help you through different scenarios by asking a few simple questions. Based on standard lender guidelines, we'll get you a good idea of what kind of terms and loan program you can expect to benefit most from.

Step Two: Pre-qualify for your loan:

This is where the rubber meets the road and you save the most money. You supply information about your employment, your assets, your residence history, and so on. We get your permission to run your credit score. When we review all this information we give you a Pre-Qualification Letter. Handle it with care -- to a home seller, it's like a suitcase full of cash! Your realty agent will use your Pre-Qual (as they may call it) to make the best offer on the home you choose, and the seller knows you're pre-qualified. It gives you buying clout! And while you're picking out the home that's right for you, we're busy finding the loan that's right for you.

Step Three: Now the fun begins!

Once you've made an offer and it's been accepted, it's time to complete the loan process. In today's regulatory environment, we will need your help, along with our professional staff, in order to achieve our goal of making this necessary step as painless as possible.  When the time is right, we will also order an appraisal of your new home.

Step Four: Your loan is funded:

Your realty agent and the seller's will work together to designate an escrow/title company to handle the closing of your loan once it's approved. We'll coordinate with the escrow company to make sure all the papers your lender will need are in order, and you'll sign everything at the escrow/title company's office.

You've answered a few questions, given us some detailed information, applied online, and next thing you know, you're moving in!

We're in the business of mortgage loans -- so we do most of the work.

Doesn't that make sense?

Sunday, March 10, 2013


 Offering "Keys On Time Program" Guarantee If your profile meets the criteria; we will guarantee an on time or sooner closing. Call us today to see how this new program can benefit you! 707-455-7070

Read more HERE

Thursday, March 7, 2013

How to Choose a Mortgage Banker

There are several things to look at when you choose a mortgage originator to help you obtain a home loan. This is one of the most important financial decisions most of you will make and it shouldn't be taken lightly. The first thing you want to ask is how long they have been in the business. If it is less than 2 to 3 years, you will want to opt for somebody with more experience or at least 50 originations under their belt. At that point they have seen most of everything that can pop up on a loan and can take proactive measures to hedge their clients against a possible fiasco or mishap that caused you to miss your closing or even worse, lose your rate.
Second don't be shy to ask if they have a college degree or what specializations and certifications they have to handle your mortgage transaction. You want to make sure your originator is skilled and trained and has enough knowledge to handle one of the largest transactions of your life. If they lack a college degree from a 4 year accredited university, preferable in business or the like, make sure they have extensive certifications that are specialized in lending. Don't pick somebody based on what they tell you, ask for proof. If they want to earn your business, they will show you their credentials.
Third, ask for testimonials. If they have a good handful of sincere testimonials from former clients with telephone numbers and email addresses, chances are they are doing a good job and can handle the transaction with customer service in mind. This is the biggest tale of the tape when it comes to how they measure up to the competition. Make sure they give you permission to contact their former clients and verify the testimonial and get any additional information needed. Anybody can write a testimonial, but only the real ones are backed up with contact information.
Fourth, ask your originator what their credit looks like. An originator should have a credit report of their own on hand dated within 12 months just like anybody else should. This is a good time to remind you to check your credit every 12 months and know exactly where you stand. If they can't handle their own finances, can they really handle yours?
Some other key issues that will be of importance to you are the following: What are the lender fees? The lender fees will tell you if they are competitive in the market and are the only variables they control. What is the APR? The APR is how you can compare who has lower closing costs. Is the lender Paperless? This will let you know if the lender is environmentally conscience and this also will shave days off your turn time and save you in courier fees.
The SAFE ACT now requires all originators to be licensed to write loans starting in 2010. A national test is going to be available as well as a state test with the option to take either. Passing the exam coupled with 20 hours of continuing education will be imperative to write loans. When shopping for a lender ask if they have passed the exam to be in compliance with the SAFE ACT passed down by Congress.
Finally ask if the originator is a direct lender. This means their company funds your loan with their own warehouse line of credit. This is important because direct lenders control the entire process from start to finish and can make decisions on their own for underwriting. There are a lot of inexperienced loan officers out there right now just waiting to learn this business with you are there guinea pig. I am not sure about you, but the only times I like being a guinea pig usually doesn't involve hundreds of thousands of dollars.
My advice is for you to do your homework, interview your originators, and narrow down your selection just like an employer does in search of the right man or woman for the job and take action only once you have done your due diligence or you may be sorry you didn't.

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Monday, March 4, 2013

The Reverse Mortgage: What Is It?

Reverse Mortgages
Reverse mortgages (also called home equity conversion loans) enable elderly homeowners to tap into their equity without selling their home. The lender pays you money based on the equity you've accrued in your home; you receive a lump sum, a monthly payment or a line of credit. Repayment is not necessary until the borrower sells the property, moves into a retirement community or passes away. When you sell your home or no longer use it as your primary residence, you or your estate must repay the cash you received from the reverse mortgage plus interest and other finance charges to the lender.

Most reverse mortgages require you be 
at least 62 years of age, have a low or zero balance owed against your home and maintain the property as your principal residence.

Reverse mortgages are ideal for homeowners who are retired or no longer working and need to supplement their income. Interest rates can be fixed or adjustable and the money is nontaxable and does not interfere with Social Security or Medicare benefits. Your lender cannot take property away if you outlive your loan nor can you be forced to sell your home to pay off your loan even if the loan balance grows to exceed property value.

"Licensed by the Department of Corporations under the California Residential Mortgage Lending Act"

CA DRE 01215943

NMLS 1850

Friday, March 1, 2013

Getting a Mortgage: Improve Your Credit Score and Buy a Home

Home buying in the US these days have changed a lot. Due to the downfall of the US housing market, American preferences have also changed and sparked debates over renting and buying a home.
But for now, let's focus ourselves into home buying. Imagine, you have already seen your dream home or let's just say your practical home. Of course, home buying is a tedious process which involves a lot on the financial aspect. One thing that always comes to our minds is getting a good mortgage.
A mortgage, as we all know, is typically the type of loan we use to buy residential or commercial properties. Its either we use it as an investment or for personal purposes. If you want to get a good mortgage rate, one of the inevitable factors that you should take note of is your credit rating.
Common Mortgage Application Problems
1. The property you are planning to buy does not meet the criteria of lenders. It is normal that lenders or banks have their own set of criteria for properties that they can approve for mortgage. If the property you are planning to buy does not meet their criteria, what you can do is to ask the lender to reconsider the property. If not, you would need to find another lender that will fit their criteria to your property. You can also try to ask different lenders or bank, with the help of real estate licensed agents, if they can provide a copy of their set of criteria in choosing properties that can be approved for mortgage.
2. Lenders require you of employment references. Lenders or banks usually take surveys about an applicants' income and other details needed to support their application. Some need to know what is your average income every month to see how much you can pay for your mortgage on a monthly basis. It also helps them determine the applicants' records during his or her past and current employments.
3. Court judgments filed against you. Normally, lenders need to know your credit worthiness. If you have discovered that you have court judgments against you, what you can do is to appeal for these court judgments to clear your name and get the mortgage you need.
4. Bad credit score. Lenders need applicants to have a positive credit score - which ensures them that the individual can pay them the mortgage it owed them. What you can do to improve your credit score is to pay all your unpaid balances, bills and pending payments. Try to pay on time or before the due date as it also helps improve your credit rating.
What more can a home buyer do?
Everyone wants to have their own home sweet home. But not everyone else can afford to get a mortgage. That is where renting can take place. By renting, you can prepare for your plans of buying a home. You can have time to improve your credit score. You can save money to buy your home instead of getting a mortgage. You can plan out well the type of home that you want to buy. You can explore different locations and local markets where you can be comfortable into buying a home and a lot more. But of course, renting and buying both have advantages and disadvantages which you should also be aware of to help you decide which really suits you. In the end, it is still the preference of the individual whether to get a mortgage and buy a home, or rent first before buying a home.

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