Greater Sacramento Mortgage News & Views

Another Great Active Rain Meet-Up!

Fri, 27 Apr 2012 11:27:42 -0700

I attended my second Active Rain Meet-up last Friday at the Yard House in Roseville. It was a great way to cap off a busy week and relax while exchanging war stories and information relating to our industry with other local Active Rain Members. I met several new members for the first time and when I thought I had heard it all, I learned some new things about this crazy real estate business. I was encouraged to hear that most of us are staying optimistic while experiencing some painful challenges. The most rewarding part for me personally was sharing some information with a business owner that could potential help increase their business. I was reminded of a quote by Zig Ziglar; "You will get all you want in life if you help enough other people get what they want.

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

1/2% Down Payment Option Now Available for First-Time Homebuyers!

Wed, 07 Mar 2012 21:15:16 -0800

If you are considering buying your first home, you may be able to do so with only a ½% down payment!

FHA requires a 3.5% investment of your own funds when using FHA financing for a home purchase. But, beginning March 1, 2012, the California Homebuyer's Downpayment Assistance Program (CHDAP) is offering downpayment assistance of up to 3% of the purchase price or appraised value, whichever is lower. That means you would only need ½% of your own funds to purchase a home!

Are you eligible for 100% financing through VA? Searching for properties in an area eligible for 100% USDA financing? You can use the CHDAP program for closing costs, too!

As with all loan products, the CHDAP program has guidelines. Give me a call at (916) 849-9200 to see if you qualify!

With home prices and interest rates at record lows, this dowpayment assistance program adds one more reason why now is a great time to buy a home!

For more information on CHDAP, FHA, VA, Conventional, Jumbo and USDA loans on properties anywhere in California, give me a call at (916) 849-9200!

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

“No Closing Costs” Loan? Think Again.

Mon, 23 Jan 2012 20:16:31 -0800

“No Closing Costs” Loan? Think Again.

I recently had two clients opt to use an online lender rather than me for their financing. The reason? They believed they were going to get a VERY low interest rate AND pay “no closing costs”. That’s right. Gonna buy a home with nothing more out of pocket than the down payment!

I explain to clients that, with extremely rare exceptions, the only way to avoid or minimize closing costs is through the lender credit associated with the interest rate. The higher the rate, the higher the borrower’s credit for closing costs.

Face it—the title company doesn’t work for free. Impounds must be prepaid. The hazard insurer doesn’t give away free policies. These costs must be paid, either directly by the consumer at closing or via a lender credit associated with the rate.

So where are home buyers getting the idea that they can buy a home bringing in only the amount of the down payment while getting an extremely low interest rate?

Let’s look at CashCall as an example. As of today, their Web site reads:

Today's Advertised Special - "No Closing Costs"

3.99% / 3.99% APR

Today's low 30 year fixed rate as of 01-06-12

Apply Online or Call Now!

Click for loan assumptions Click for No Closing Costs disclosures

Great rate! And no closing costs!

But notice there’s a link to closing costs disclosures. The disclosures say:

'No Closing Costs' loans

The following Fees are covered on a 'No Closing Costs' loan.

On purchase transactions the 'No Closing Costs' option covers the cost of the appraisal fee, credit report fee, flood certification fee and tax service fee. The borrower is responsible for paying all title fees, escrow/closing fees, notary/signing fees, prepaid interest, property taxes, state mortgage taxes, insurance, mortgage insurance and recording fees.

Uh-oh. Looks like you are paying closing costs after all!

But there is more in those disclosures:

Please note that for the 30 Year No Closing Costs 3.99% and 10 Year No Closing Costs 2.99% advertised rate specials, the following pricing adjustments apply: Loan amounts from $300k to $417k priced as shown. Loan Amounts $250k-$299,900 add .135 to rate. Loan Amounts $200k - $249,900 add .26 to rate. Loan Amounts $150k to $199,900 add .385 to rate.

So, unless you are financing $300,000 or more, you aren’t getting the advertised 3.99% rate.

The lesson here is not to trust your largest financial transaction to a person working in a Web site’s call center. Find a reputable person in your state who can be reached during and after business hours by cell phone. They will provide you a no fine print rate quote customized to your specific financial situation.

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

What It REALLY Costs to Get a Mortgage

Mon, 28 Nov 2011 14:29:06 -0800

What It REALLY Costs to Get a Mortgage

Recently, I have had a few clients be shocked at closing cost quotes I have given them. On each, I went back and checked my numbers very carefully and, yes, the quotes were right! The client just didn’t realize that there were many costs associated with a home purchase!

No one wants any unpleasant surprises that involve money! So, here is some information on closing costs to help you better prepare for a home purchase.

In addition to a down payment, home buyers should anticipate these possible costs:

Home Inspection

An inspector will review the mechanical, electrical, and structural aspects of your home then provide a written report.

Condominium/Home Owners Association-related Fees

These may be required if you purchase a home in a condominium complex.

Well and/or Septic Certifications

If the property has either of these systems, a buyer will want professional testing to ensure they function properly.

Pest Inspection

A qualified professional inspects the property, looking for termites and other pests and pest damage then submits a report.

These costs are common in a purchase transaction:

Credit Report

This fee covers the cost of a three bureau credit report which shows each borrowers’ credit history. The borrowers will be provided a copy of their credit report.

Appraisal

An appraisal is a professional opinion about the value of your home, prepared for the lender. The appraisal is usually paid for up-front by the borrower. And, in a few cases, more than one appraisal may be required. Buyers receive a copy of the appraisal.

Title and Escrow services, such as title search and insurance, so buyer and lender are sure that no one else has any lien, claim, or encumbrance on the property; recording the Deed and mortgage with the County Recorder; Notary for signing services; and, preparing documents necessary to close a real estate transaction.

Lender’s Origination Services

For services involved in the creation of a mortgage loan, such as loan processing and the underwriting of the loan.

Property Taxes

Payable to the County. The amount collected depends upon the month of the year the property sale closes.

Insurance

Lenders typically require the first year of fire and hazard insurance be paid up front. Flood insurance will be required if the house is in a flood hazard area.

Impounds (also call Reserves)

Prepayments of funds, held in an account, to cover annual charges for homeowner’s insurance and property taxes which will be paid by the lender on the borrower’s behalf. Sums will be added to the impound account each month from the monthly mortgage payment.

Prorated Mortgage Interest

Depending upon the time of month a loan closes, this per diem charge may vary from a full month’s interest to a few days interest. Future interest payments will be made through the monthly loan payment.

Supplemental Property Taxes

The buyer will be billed by the County for these, by mail, after the sale closes. Supplemental taxes that are assessed due to a change in ownership.

The amount of closing costs varies, depending upon the amount of the mortgage and type of loan (i. e., VA, FHA, USDA or Conventional). A mortgage professional can provide an estimate of costs when a potential buyer completes the prequalification process.

What if you don’t have enough money for closing costs? Consider a gift from a family member or participating in a down payment assistance program.

Shopping for a Hazard Insurance Policy

A Lesson about Hazard Insurance in California

Making Sure Your Cash to Close Comes from the Proper Source

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

Wordless Wednesday: Happy Thanksgiving, Fellow Rainers!

Wed, 23 Nov 2011 13:15:45 -0800

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

Help for California Homeowners with Financial Hardships

Wed, 09 Nov 2011 01:24:25 -0800

Help for California Homeowners with Financial Hardships

If you are a homeowner experiencing financial hardship, the California Housing Finance Authority (CalHFA) might be able to help!

CalHFA has a mortgage assistance program called “Keep Your Home California”, a federally funded initiative for low- and moderate-income homeowners who are delinquent or facing default on their primary residence. The program has four components:

Unemployment Mortgage Assistance*

For homeowners receiving California EDD Unemployment, mortgage payment assistance up to $3,000 per month for up to nine months.

Mortgage Reinstatement Assistance*

One time payment of up to $20,000 for principal, interest, taxes, insurance and HOA dues for those who have fallen behind on their first mortgage.

Principal Reduction*

Funds to be matched, dollar for dollar, by the loan servicer (the company to which the monthly payment is made each month) for loan principal reduction. (For mortgages originated before 1/1/09)

Transition Assistance*

One time funds up to $5,000 for homeowners involved in a short sale or deed in lieu of foreclosure.

* These programs have income limits and eligibility criteria. Homeowners may qualify for more than one program.

The funds are disbursed directly to the participating loan servicer, to be applied to the first mortgage. The assistance is a conditional lien that does not require payments. The lien becomes a loan subject to repayment, however, if the home is sold or the first mortgage is not kept in good standing for three years following the disbursement.

For assistance and more information, call 888-954-KEEP.

If you are not experiencing a financial hardship and would like to refinance an underwater mortgage, please call me at (916) 849-9200.

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

CHASE Hosts Ontario Event for Mortgage Customers Needing Assistance, November 17-19

Wed, 09 Nov 2011 00:37:09 -0800

CHASE Hosts Ontario Event for Mortgage Customers Needing Assistance, November 17-19

For a non-hardship refinance, please call me at (916) 849-9200.

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

BofA Hosts Sacramento Event for Mortgage Customers Needing Assistance, 11/17-19

Tue, 08 Nov 2011 22:34:47 -0800

BofA Hosts Sacramento Event for Mortgage Customers Needing Assistance, November 17-19

For more information, see page 2.

For a non-hardship refinance, please call me at (916) 849-9200.

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

Greece, the Fed and Inflation—Oh, My! How Do We Get Mortgage Interest Rates?

Thu, 03 Nov 2011 12:57:00 -0700

Greece, the Fed and Inflation—Oh, My! How Do We Get Mortgage Interest Rates?

First, here’s how we don’t:

There are three common misconceptions about how mortgage rates are determined: 1) solely by each lender, 2) by the Federal Reserve and/or 3) based on the 10-Year Treasury Note. There are still mortgage professionals claiming rates are based on the 10-Year Note. Wrong!

Now, here’s how we do:

While there are several generic interest rate trend indicators, rates can be influenced at any given moment by at numerous different variables in the market and with each individual loan approval scenario. The mortgage rate marketplace is dynamic and complex.

Lenders set their rates every day based on the market activities of Mortgage Bonds, also known as Mortgage Backed Securities (MBS). A lender might adjust their pricing up to five times in one day depending on what’s taking place in the market. A printed rate sheet can become obsolete the moment it is printed!

So what are the major influences on Mortgage Backed Securities (MBS)?

Inflation
Federal Reserve Actions
Unemployment Figures
Gross Domestic Product (GDP) Figures
Geopolitics – Unforeseen events related to global conflict and political events

Why does this matter to you?

With multiple market indicators reporting and changing throughout any given day, timing the market for the best possible opportunity to lock a mortgage rate on a new loan is a big challenge. Top notch professionals have access to real time market data and expert analysis to guide them. Don’t work with a lender that doesn’t! Why? Because your loan’s interest rate determines the amount of lender credit you will receive for your closing costs! Locking an interest rate too early or too late can be an expensive error for which YOU end up paying!

Home shopping or refinancing and want to learn more about interest rates? Watch this video! For more information and a real time look at the mortgage market, please call me at (916) 849-9200!

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

I Got to Be a Hero for a Hero!

Thu, 27 Oct 2011 16:32:12 -0700

I Got to Be a Hero for a Hero!

I recently got a call from a local REALTOR, asking me to contact a family member in Sacramento who needed to refinance.

I called him and was delighted to discover he was veteran, just like me. I met him at his home later that week.

This gentleman had served over 20 years in the Army, serving six tours in the Middle East, the last of which left him badly wounded. I was humbled to hear his stories; my service was peace time.

The Major was already in process with another lender for his refinance. The appraisal had been completed and his rate locked. Looking at the quote, I advised him that I could possibly beat his loan terms but it really wasn’t worth him starting the refi process all over again, including the need for a new appraisal. He thanked me for my honesty.

A week later, he called. He had decided he wanted me to handle his loan anyway, even if he had to get a new appraisal and the interest rate was the same. I was stunned and honored to have earned his trust.

I found a lender that, after some arm wrestling, agreed to accept the other lender’s appraisal. Rates took a downturn and I locked the rate slightly lower than the other lender was offering. Finally, after the masses of paper were sent to the Underwriter, the loan was fully approved and ready to fund.

Then the Funder called for the Verification of Employment, didn’t like what she heard, and handed the file back to the Underwriter. When I called the Major to explain, he told me that he would pay me from his pocket for my work on his loan if it didn’t go through. (“No, Sir,” I thought. “You have done more than enough for me in your career!”)

The next couple of weeks were spent explaining and documenting how military employment works. Thankfully, the lender signed off on the loan and we FINALLY recorded today!

The Major’s rate was cut nearly in half and his payment significantly reduced. Best of all, he never has to hassle with refinancing his house again!

There has been a lot of discussion here in the Rain about whether we do what we do primarily to help people or to make money. It was an honor to help someone who had served all of us.

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

Roseville’s New “Party Place” is Great for Kids and Grown Ups Alike!

Mon, 24 Oct 2011 17:20:22 -0700

Roseville’s New “Party Place” is Great for Kids and Grown Ups Alike!

The Party Place is Roseville’s newest and best play and party destination!

They are open for Open Play Monday - Friday from 10:00am-2:00pm and Thursdays from 4-7:30 pm. The cost is $5 per child over 18 months, parents and children under 18 months are free! There are two bounce houses, play structure with slide, arcade games on free play, and Wii center with over 80 games.

And they always have complimentary Starbucks Coffee, Cappuccino and WiFi for the grown ups!

The Party Place has several party options, which are available during any private party time slot. Multiple slots can always be booked together to expand your party time. Perfect for birthdays and sports team parties!

PREMIUM PARTY Private 2hr Party	Enjoy the facility all to yourself and at your own pace!
PREMIUM PIZZA PARTY Private 2hr Pizza Party	Same party fun as the Premium Party but enjoy 6 extra large pizzas and soda from local New York Pizza! Plates, cups, and napkins also included.
BIG SCREEN BASH Private 3hr Movie Party	They will project a movie on their drive-in style screen. You can choose from one of the many titles on their list, or bring in your own!
PICASSO PARTY Private 2hr Art Party	Have a blast in the facility, and then enjoy a half hour art project for up to 15 kids, led by Robert Lindsey of www.bettermurals.com. Materials and clean up are included.

Catering arrangements, magician and party planning assistant also available.

And the Party Place is not just a gathering place for kids! The park-themed room is available for weddings, showers, corporate meetings, or luncheons!

The Party Place can accommodate groups up to 75. And you can even….

…bring your own food!

For more info, call the Party Place at (916) 521-9728.

Don’t forget your sox!

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

Trunk or Treat in Roseville, Saturday, October 22nd, 5-9 pm

Tue, 18 Oct 2011 15:37:28 -0700

Trunk or Treat in Roseville, Saturday, October 22nd

Come join the fun at the Trunk or Treat Harvest Festival in Roseville on Saturday, October 22, from 5-9 pm! It’s FREE!

This event features:

· Bounce houses

· Face painting

· Candy

· Games

· Bake sale

· Live music by "Karma Jazz"

Bring your family and friends and wear your favorite costume!

For more information, call The Party Place at (916) 521-9728.

Trunk or Treat Harvest Festival

October 22, 2011

5-9 pm

@The Party Place

8413 Washington Blvd. #145

Roseville, CA 95678

(916) 521-9728

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

Understanding a Mortgage Payment

Thu, 13 Oct 2011 23:33:04 -0700

Understanding a Mortgage Payment

As you go thorough the Folsom mortgage process, you’ll hear a series of terms and acronyms related to your mortgage payment. Let’s look at what they mean.

Your mortgage payment is generally due on the first of the month, and most lenders start assessing late fees on the 15th. It is extremely important not to make a mortgage payment late.

When you receive a mortgage bill, there will be a few numbers that add up to your total payment:

Principal

This is the portion that goes towards paying down your balance on your Folsom mortgage.

Interest

The interest payment is essentially the amount you’re paying the bank over time to borrow the principal balance.

Taxes

Real Estate Taxes due to the County where your home is located can be included (Impounded) in your monthly payment.

Certain government loan programs like FHA require that taxes and insurance be included with the total mortgage payment.

Insurance

This is your hazard insurance, which protects your home and belongings. It can also be impounded in your monthly payment. While there are many ways to save money on your property insurance, it’s important to know and trust your insurance agent so that you can be fully aware of what’s covered in your policy.

Mortgage Insurance

Mortgage insurance is in addition to hazard insurance and completely unrelated. A lender will require a borrower to pay mortgage insurance on a property when you put less than 20% down. FHA and USDA have mandatory mortgage insurance, but in a different form. The main purpose of mortgage insurance is to protect the lender from foreclosure losses if the borrower fails to meet the monthly payment obligations.

Now you know where the money goes!

Shopping for a Hazard Insurance Policy

A Lesson about Hazard Insurance in California

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

Every First-Time Home Buyer Needs a Team!

Thu, 13 Oct 2011 02:03:41 -0700

Every First-Time Home Buyer Needs a Team!

A Sacramento home purchase is literally a team sport since there are so many tasks, important timelines, documents and responsibilities that all need special care and attention. It's important that every Sacramento first-time home buyer have a team they can trust and that the individual players have the ability to effectively communicate and execute important tasks together.

Real Estate Agent

A Realtor® is a licensed agent that belongs to the National Association of Realtors®, which means they are pledged to a strict Code of Ethics and Standards of Practice.

A few of the important roles your agent performs for you:

Determine your home buying needs
Define your property search criteria - neighborhoods, school districts, local amenities...
Provide insight on market trends and property values
Negotiate purchase contract
Monitor due-diligence periods and other important timelines
Articulate inspection and appraisal reports
Professionally estimate fair market value on listings

A common misconception among many Sacramento first-time home buyers is that hiring a real estate agent will end up costing more money. However, the typical arrangement in a purchase transaction is for the seller to cover the buyer's agent commission. Even if you are buying a developer home or For Sale By Owner property, you should still have an agent in your corner to protect your interests.

Mortgage Professional

A Sacramento mortgage professional establishes the purchase price and monthly payment a borrower can qualify for. Other details your mortgage professional handles:

Explain all loan program options that may fit your investment goals
Collecting / organizing loan approval documents
Watching economic indicators that influence daily rate changes
Locking interest rates
Communicating with title / escrow officers
Submitting loan package to underwriting departments
Updating disclosures / GFE paperwork within proper time frames
Following funding through to the final recording

Insurance Agent

The lender in any mortgage transaction will require a homeowner’s insurance policy (hazard insurance). This policy protects the property in the case of fire, theft or other damage (except flood or earthquake, which are separate). If it is determined that the property that you want to purchase is in a flood zone, flood insurance is mandatory.

Title and Escrow

The title and escrow officers are often thought of as the same role, but in reality are quite different positions. The title officer takes care of all issues that have to do with the title of the property. They issue a title insurance policy guaranteeing that the title is free and clear of all liens except those being filed by the lender.

Escrow takes care of receiving, signing, and notarizing the final loan documentation, as well as collecting the other paperwork associated with the home sale. The escrow officer is a neutral third party that makes sure no money is transferred until all conditions for each side are met. The money management of an escrow company include:

Real estate commissions
Funds to mortgage company
Homeowner's Insurance Premiums
Property Taxes
HOA Dues and other third-party fees

Finally, the escrow officer will see that you are properly recorded as the new owner with the county.

Appraiser

While a Sacramento first-time home buyer does not see the appraiser, an appraisal is obviously an important component of a home purchase transaction. The appraiser will conduct an analysis of the property to determine the current market value. The bank will almost always require an appraisal, and in some cases a second opinion of value if the program guidelines or loan amount require it.

Appraisers compare the sales prices of similar properties sold in the neighborhood and surrounding areas with the subject property. This can be a very tricky process, especially if there are few properties to choose from, or if there is an overwhelming amount of foreclosures and short sale listings, and since two homes are rarely identical.

When done, the estimate of value is given. If that value is below the purchase price, then negotiation may take place. If it is at or above the purchase price, we are ready to go forward!

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

Making Sure Your Cash to Close Comes from the Proper Source

Tue, 11 Oct 2011 16:57:14 -0700

Making Sure Your Cash to Close Comes from the Proper Source

Proper asset documentation and source of the funds is a critical element in successfully closing a Roseville mortgage.

There’s nothing worse in a Roseville home purchase than making it all the way through the hoops and hurdles just to have a loan denied after the final documents have been signed due to the borrower using unacceptable funds for the down payment or closing costs.

Seasoning of the down payment money is just as important as the source, which is why underwriters typically require at least two months bank/asset statements in the initial mortgage approval process. All large deposits on those statements have to be fully explained and documented.

Acceptable Sources of Down Payment Include:

· Bank Accounts – checking and savings

· Investment Accounts – money market, mutual funds

· Retirement Funds – remember that borrowing against a 401(k) plan will require repayment, which will be calculated in the Debt-to-Income Ratio

· Life Insurance – cash value

· Gifts – family members can gift down payment funds with certain restrictions

· Inheritance or Trust Funds

· Government Grants – many state, county and city agencies offer special down payment assistance programs that can be used with a Roseville mortgage

It is extremely important that your loan officer is aware of the exact source of your down payment as early in the process as possible so that all necessary questions, documentation and explanations can be reviewed and approved by the Underwriter. Whatever funds you’re using as a down payment have to be fully pre-approved by an Underwriter at the beginning of the mortgage approval process.

So, if you accidentally forget to deposit money in your checking account on the way to the closing appointment, it is not acceptable to get a cashier’s check from a friend’s account until you have a chance to pay them back later!

What It REALLY Costs to Get a Roseville Mortgage

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

Do I Need to Sell My Home before I Can Qualify for a New Mortgage on Another Property?

Mon, 10 Oct 2011 21:10:41 -0700

Do I Need to Sell My Home before I Can Qualify for a New Mortgage on Another Property?

As a Roseville mortgage broker, I see a few home buyers qualify for a mortgage on a new home while still living in their primary residence. Some want to buy a larger or smaller home, maintaining their current home as a rental. A few are relocation from out of the area and want to keep their current home as a rental.

So, what is the answer to the question?

“It depends.”

What if I rent my current property?

Then the answer would be, “Maybe."

If you're not quite qualified to carry both mortgages, you may have to rent the other property in order to offset the mortgage payment. However, the lender will typically only count 75% of the monthly rent you are proposing to receive toward qualifying for the new mortgage. So, if you are going to receive $1000 a month in rent and your current payment is $1500, the lender is going to factor in an additional $750 of monthly liabilities in your overall Debt-to-Income Ratios.

The Underwriter may require a copy of an executed one-year lease agreement on your current home, proof that the renters have paid a deposit, and a full appraisal with rent rate survey. Lenders also take into account possible vacancies and will calculate for that as well.

Another factor is the reserve and equity ratio requirements most lenders have in their guidelines. In some cases, if you are going to rent out your current home, you will need to have at least 25% equity in it in order to count the rental income toward credit qualification. Without that hefty amount of equity, you will have to qualify to afford BOTH mortgage payments.

You will also need some significant cash in the bank. Generally, lenders will require cash reserves equal to six months payments on the old and new properties. For example, if you have a $1500 payment on your old house and are buying a home with a $2000 monthly payment, you will need over $21,000 in the bank.

Keep in mind, this reserve requirement is in addition to your down payment on the new property.

What if I can't qualify based on both mortgage payments?

If you are in this situation, the answer is, “No.” You will have to sell your current home before buying a new one.

Got questions about this post?

Buying or refinancing a home?

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Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

Football Season Begins: A Time Once Again to Remember Dad

Thu, 08 Sep 2011 17:37:56 -0700

My Dad, for whom I was named, was born on February 25, 1931, in Kearney, NJ. He and my mother married in 1956 and moved to Burbank, CA, where I was born.

Sadly, Dad chose his vices over his family. I never did get to know him well. My sister and I did talk with him by phone during our adult years and even visited on occasion but Dad remained an enigma to us. But there were two things that I did know about him: he was proud of his Purple Heart service as a Marine in the Korean War and he was a rabid New York Giants fan. His wife told me that, when the Giants were on TV, he would don his Giants hat, sit in his favorite chair and he was NOT to be disturbed under any circumstances.

I called Dad early in 2008 to congratulate him on the Giants’ playoff victory that sent them to the Super Bowl. Unfortunately, Dad passed 10 days before the big game; we buried him with his special hat. I watched the Super Bowl that year, pulling for Dad’s Giants. I’ll never forget that game winning catch by Plaxico Burress. It was like a miracle win crafted just for Dad. (If you missed the big game or would just like to recount the game winning drive that earned the Giants the Lombardi Trophy in Super Bowl 42, click here; http://www.youtube.com/watch?v=ths70-zBdQA. Warning: may not be suitable for Patriot fans!)

Now the 2011-12 NFL season begins. And, in Dad’s honor, I’ll be rooting for the Giants.

Got questions about this post?

Buying or refinancing a home?

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Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

KaleCoAuto: THE Source for Hard to Find Auto Parts

Mon, 05 Sep 2011 01:01:04 -0700

Having trouble finding a 710 cap? Been working on your engine all day and run out of elbow grease? Your troubles are over! KaleCoAuto is your best online source for those hard to find auto parts!

Current specials include:

Heavy Duty Clutch Belt	$19.95
Muffler Bearings	$49.99
Cross Drilled Brake Lines	$69.95

Here’s a tip: KaleCoAuto is currently sold out on their patented, high quality synthetic blinker fluid. Order now to ensure you get quick shipment when their new supply arrives.

Gift certificates are available! Get some for your fellow auto enthusiasts!

Need a gift for your Mr. Goodwrench? Check out KaleCo’s Check Engine Light t-shirt!

Visit the KaleCoAuto site today!

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

Free Mortgage Assistance from HUD

Sat, 03 Sep 2011 18:44:47 -0700

“HUD ANNOUNCES MORE THAN $10 MILLION IN COUNSELING GRANTS  TO HELP FAMILIES DEAL WITH MORTGAGE MODIFICATION AND MORTGAGE SCAMS 

In an effort to help families keep their homes and avoid mortgage scams, HUD today (09/02/11/) announced more than $10 million in housing counseling grants. This is unspent funding from the 2010 appropriation that was re-competed and awarded to HUD-approved counseling agencies.

The funding is predominately for foreclosure prevention counseling, assistance with application to Federal and other mortgage modification and loss mitigation programs, and related outreach. It will also support outreach and counseling efforts designed to identify and assist victims of mortgage modification scams, and report those cases to the applicable authorities.”

California HUD-Approved Counseling

Community Housing Council of Fresno

Housing Authority of the City of Fresno

Fresno, CA

Eden Council for Hope and Opportunity (ECHO)

Hayward, CA

Tri-Valley Housing Opportunity Center

Livermore, CA

Los Angeles Neighborhood Housing Service

Los Angeles, CA

The Spanish Speaking Unity Council of Alameda County, Inc. (a.k.a The Unity Council)

National Coalition for Asian Pacific American Community Development (National CAPACD)

Oakland, CA

Neighborhood Partnership Housing Services, Inc.

Ontario, CA

Project Sentinel

Redwood City, CA

Community Housing Development Corp of North Richmond

Richmond, CA

Fair Housing Council of Riverside County

Springboard Nonprofit Consumer Credit Management (Springboard)

Riverside, CA

Rural Community Assistance Corporation (RCAC)

West Sacramento, CA

Neighborhood Housing Services of the Inland Empire

San Bernardino, CA

Neighborhood House Association

San Diego, CA

Mission Economic Development Association

San Francisco, CA

Consumer Credit Counseling Service of Orange County

Legal Aid Society of Orange County

Santa Ana, CA

City of Vacaville Department of Housing and Redevelopment

Vacaville, CA

Community Services and Employment Training (CSET)

Visalia, CA

Services are available in other states as well.

Strugging with Your Mortgage Payments and Need Assistance?

Got questions about this post?

Buying or refinancing a home?

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Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

Rocklin Fall Recreation Activities

Wed, 31 Aug 2011 17:30:41 -0700

Rocklin Fall Recreation Activities

The City of Rocklin Parks and Recreation department has published its Activity Guide for the 2011-12 School Year.

The online Guide features information on:

Facility rentals
Preschool
Before and after school care program
Arts, sports, and training for all ages
Local special events

Did you know that Money Magazine rated Rocklin as one of their top 100 places to live in 2010?

There’s lots to do for all ages in Rocklin! Take a look at these great opportunities and sign up now! Join the fun!

Rocklin Schools

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And if you are planning to buy a home in Rocklin, I can help you with the mortgage financing! Please call me at (916) 849-9200!

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

Lincoln Fall and Winter Recreation Opportunities

Wed, 31 Aug 2011 17:07:56 -0700

Lincoln Fall and Winter Recreation Opportunities

The City of Lincoln, California, Parks and Recreation department has published its Fall/Winter Recreation Guide.

The Guide features information on:

· Sports camps

· Tot and youth sports, music, and dance

· Youth and adult sports leagues

· Facilities and parks

· Libraries

Lincoln is a great place to live and there are lots of fun things to do for all ages! Take a look at these great opportunities and sign up now!

Lincoln Schools

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Are you shopping for a home in Lincoln? I can help you with the mortgage financing! Please call me at (916) 849-9200!

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

Roseville Fall Recreation Opportunities

Wed, 31 Aug 2011 16:30:17 -0700

Roseville Fall Recreation Opportunities

The City of Roseville has published their Fall Recreation Guide!

The City is offering:

before and after school child care
preschool
special community events
birthday party packages
aquatics at the indoor pool
activities and classes for tots, youth, teens and adults
trips
park and facility maps
museum activities

Fun opportunities abound for the entire family! Take a look and sign up now!

P S

And if you are planning to buy a home in Roseville, I can help you with the mortgage financing! Please call me at (916) 849-9200!

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

How a Mortgage Broker Works for You!

Fri, 19 Aug 2011 00:27:48 -0700

How a Sacramento Mortgage Broker Works for You!

Many Sacramento home buyers and owners automatically think of banks when they need a purchase or refinance residential home loan. Mortgage Brokers, however, can often provide a wider variety of loan options at a better cost. So, how does a Sacramento mortgage broker do this?

It helps to understand that there are two main channels for Sacramento mortgage financing today. Retail, the lenders the public can access directly (like banks and credit unions), and wholesale lenders, those lenders available via a third party (a mortgage broker). Retail lenders usually offer only their own loan programs; a mortgage broker offers you the loan programs of multiple lenders.

So, let’s say that you want to buy a home with 20% down and your credit profile (job, scores, assets, etc.) doesn’t have any tricky elements to it. I would evaluate the 64 lenders to which I have access, looking at:

Ease of Underwriting

Interest Rates

Fees Charged to Borrower

Customer Service Ratings

Quality of Appraisers

Based on this information, I can recommend a lender or two that offer you the best deal.

Now, let’s say you have a tricky loan scenario. You own a home and 9 rentals. One of those rentals has no mortgage and you would like to do a cash out refinance. Now I review those 64 lenders to see who will lend on that scenario. I find the lenders that:

Refinance rentals but don’t do cash out

Refinance rentals but only up to 4 properties

Refinance rentals but only up to 8 properties

Refinance up to 10 properties but no cash out

Refinance up to 10 properties and will do cash out!

As a Sacramento Mortgage Broker, I search among multiple lenders to place a particular loan scenario.

When shopping for a Sacramento mortgage, consider this: when shopping for a shirt, would you buy from a store that sells 6 shirts in six sizes or 50 shirts in six sizes? The more options the better, right?

Assembling Your Home Buying Team -- Knowing the Players

Got questions about this post?

Buying or refinancing a home?

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Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

Buyer Beware: The Underwriter May Be Googling You!

Thu, 18 Aug 2011 17:22:47 -0700

Buyer Beware: The Underwriter May Be Googling You!

I just attended a refresher training on mortgage fraud. Mortgage fraud is very high here in California and, as a Sacramento Mortgage Broker, I have to keep up on the latest ploys. I have had three fraud attempts cross my desk this year.

Underwriters are keeping up on the ploys, too.

When your loan package is submitted to a lender, assume that the Underwriter is going to use Google to confirm information on your application. For example,

Does your employer really exist?
Does your employer’s address match your application?
Does your employer have a physical address?
Is your employer engaged in the business you claim?
Is your employer actually a family member?
Is your home address actually a rental property?
If you are self employed, is there a business license on file?
Is your business listed with the Department of Corporations?
Has the business been in business as long as you claim?

Priority #1 for an Underwriter is preventing fraud. Don’t try it; if caught, you’ll be facing up to 30 years in prison and a $1,000,000 fine. Home prices are likely to remain low for quite some time. You’re not going to miss out by waiting until you can qualify truthfully.

Remember that Kid in Your Class that Kept You from Recess?

Got questions about this post?

Buying or refinancing a home?

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Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.

Dixon California Schools

Mon, 15 Aug 2011 01:11:43 -0700

Dixon California Schools

The Dixon Unified School District has published its 2011-2012 calendar and events calendar.

There are new immunization requirements for students beginning this school year.

Are you home shopping in Dixon and want to know about the schools? Read the School Accountability Report Cards. And learn more by visiting each school’s Web site.

The DUSD Web site is a great resource for students and their families. You can learn about the food services, health services, School Board and so much more!

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Are you home shopping in Dixon? I can help with the mortgage financing! Please call me at (916) 849-9200!

Got questions about this post?

Buying or refinancing a home?

Call me!

Ed Gillespie

Academy Mortgage

(916) 849-9200

FHA, Conventional, Jumbos, USDA and Specialty Mortgages

Serving Greater Sacramento and All of California

Subscribe to my blog!

Content in this blog is original to Ed Gillespie and does not reflect the views of Academy Mortgage (NMLS #3113, DOC #4170013), nor is intended to be legal advice.