James R. Gill's Blog

VA Interest Rate Reduction Refinancing Loan!

James R. Gill — Fri, 29 May 2009 19:29:41 -0700

I just helped a client reduce his VA loan to 5% (zero points) with an "IRRRL" loan! No appraisal necessary, no income verification necessary, and no asset verification necessary! Leave all 3 blank on the application!

The loan must be VA to VA
must result in a lower rate (unless going from adjustable VA to Fixed)
can be no money out of pocket by including closing costs in the loan
You must NOT receive any cash from the loan proceeds
no appraisal, so loan to value ratio is not a concern
discounted funding fee and lower underwriting fees

Lot's of disclosures to sign, but a relatively painless process to go through! Call to see if this loan can help you!!

Leadership Manhattan Beach Now Recruiting Class of 2011!

James R. Gill — Tue, 03 Feb 2009 22:53:36 -0800

Leadership Manhattan Beach Now Recruiting Class of 2011!!

Leadership Manhattan Beach

Now Recruiting Class of 2011!

Leadership Manhattan Beach is the premier leadership training program in the region for mid-level and high-level professionals. It provides comprehensive training through interaction with the community's top leadership, experiential learning opportunities and community-service team projects.

The nine-month program identifies people of promise, familiarizes them with community issues and services and develops their leadership skills to prepare them for prominent business, cultural and political roles.

The 2011 class will begin in September '10 and end in May '11. Sessions include history, civic identity and the arts; government; education; quality of life; business and economics; and personal development.

Program Informational Meetings for Potential Class Participants

You are invited to learn more about the LMB program and meet board members and graduates. Please choose the date that is most convenient for you. There is no obligation.


March 31, Wednesday 6:30 -7:30 PM	City Council Chambers 1400 Highland Ave. Manhattan Beach, CA 90266

For more information or to RSVP, please contact James Gill jamesrgill@aol.com or (310) 947-1195

Please forward this e-mail to those whom you feel would be interested in this program. Thank you.

Applications are accepted:
March 1 - June 1, 2010

To receive an application:

1. Application on our website http://www.leadershipmb.org/

2. To request information :

· via e-mail, to recruiting@leadershipmb.org

· via phone, 310-947-1195

· via mail,

Leadership Manhattan Beach Recruiting

c/o James Gill PO BOX 3046 Manhattan Beach, CA 90266

Beware! Misleading property tax reductions being offered for a fee!

James R. Gill — Tue, 03 Feb 2009 22:46:40 -0800

Misleading Mailers Offer Lower Property Taxes For Homeowners

Los Angeles County Assessor Rick Auerbach and County Consumer Affairs Director Pastor Herrera, Jr. recently warned homeowners to be wary of solicitations from private companies offering to file property assessment reduction forms for a hefty fee to pay for a review by the Assessor's Department for free.
"We are again receiving calls from homeowners who have been sent these deceptive mailers, many of which could be mistaken for government notices and mislead property owners into thinking they must pay at least $100 to apply for a review of their assessed value," Auerbach said. "Because of the real estate market downturn, however, my office will begin reviewing nearly 500,000 residential properties for their 2009 assessed values.

103% financing in today's market?!?!? YES!

James R. Gill — Thu, 28 Aug 2008 02:04:19 -0700

I am just wrapping up yet another wonderful 100% financing VA LOAN!!!!!

The way a VA Loan works is you pay a "Funding Fee" to the government up front. This Funding Fee is basically a mortgage insurance you pay for up front and then the government insures the loan against forclosure. The VA allows the borrower to roll the Funding Fee into the loan and now we are at 103% financing. Get this: you can even add another $6000 to the loan if you wish to upgrade the appliances to something more efficient! There is no monthly mortgage insurance fee; this is the benefit for the Veteran.

To qualify for a 100% VA Loan you must be:

owner occupied
able to prove your income qualifies you
a US Armed Forces Veteran in good standing
at or under a $417,000 purchase
UP TO $737,500 IN SOME COUNTIES AS THE NEW "HIGH BALANCE GOV'T LOAN"

FICO scores and reserves are not critical for this loan and the seller can pay most of the closing costs!

Make sure you are reaching out to the Veterans you know to spread the word!!

Community Police Academy

James R. Gill — Mon, 10 Mar 2008 22:21:10 -0700

Another great program to go through! Includes police ride-alongs, 911 training, police training, firearm simulation training etc. This was a nine week course to understand what the police go through in your own neighborhood on a daily basis. They teach you how you can help them do their jobs better. Getting to know all the police in your own city gives you a very different outlook on the local police force.

Panel of Experts- DRE, FRE

James R. Gill — Fri, 19 Oct 2007 11:21:27 -0700

Yesterday I attended a California Association of Mortgage Brokers Panel of Experts meeting. On the panel were:

Sergio Barajas, Expanding Markets Manager, Freddie Mac
Louisa Broudy, Deputy Commisioner, Financial Services Division, Dept of Corporations
Ted Grose, Director and CAMB advisor
Tim Le Bas, Deputy Commisioner, Dept of Corporations
Gary Sibner, DRE
Sandra Smith, HUD

They addressed what is currently being done to protect future borrowers and to help current troubled borrowers:

They talked about California's new law SB385 and how it creates more laws regarding disclosure. They want to make sure borrowers understand the loans they are getting.

Also discussed was the push to require mortgage brokers to be licensed. I understood them to mean licensed with the Dept. of Real Estate. (which I already am - a licensed salesperson) This will make the broker more accountable.

They introduced me to a couple of loan programs being rolled out to help the borrowers currently facing the end of their fixed rate period - one such program is called SafeSteps. This program allows for a 550 FICO and is meant for the borrower who was current with their mortgage payment until the loan readjusted. Once the loan readjusted and they started missing payments, their FICO score dropped and made it impossible to refinance.

FHA is trying to help every borrower who has a loan that is readjusting to a payment that they can't afford. Keep in mind that all these programs are FULL DOC and require proven income enough to qualify. These programs are not meant to help the borrower who can't afford their home.

Everyone is still on pins and needles to see if the govt. will soon increase the FHA loan limits. This will surely help some Californians.

Let's hope brokers learn how to help their clients with these programs! Get in touch with your borrowers to find out how they are doing.

A fun Hermosa Beach dinner out!

James R. Gill — Thu, 18 Oct 2007 22:24:26 -0700

Last night I celebrated my 10th wedding anniversary at a restaurant I had not yet tried. A risk, but I had a friend give it a big recommendation. I was hoping for an adventure, because that is always what we look for on special occasions. La Sosta Enoteca did not disappoint!

When I go out for a special occasion, I cannot order salmon or steak as I want something that I cannot get at home. La Sosta had just what I was looking for! First we had a special cutting board full of Italian meats and cheeses. It came with some wonderful things to dip the cheese in - truffle infused honey and a chili-pepper jam. We paired that with a lovely red wine. Then we had deep fried zucchini flowers. My main course was just as exciting: homemade pasta with sea urchin! It was fabulous. My wife had homemade gnocchi with a lobster sauce. This too was delicious. These were paired with a terrific Italian white wine.

We followed up by ordering the Tiramisu but it had too much of a coffee flavor. So they kindly substituted chocolate covered profiteroles. We even paired this with a wonderful port like Italian desert wine!

Be aware, dinner for two was $200, but well worth it. That was an adventure to Italy right here in Hermosa Beach!

How do you post a photo on your blog?

James R. Gill — Wed, 03 Oct 2007 00:08:57 -0700

It seems you have two choices - point to a url or upload to AR, but once uploaded, its gone! HELP! I tried uploading to AR and it said it went ok, but I don't know how to point to it and place it on a blog. Everyone seems to know how to do it but me! Thanks!

Cirque du Soleil

James R. Gill — Wed, 26 Sep 2007 22:00:17 -0700

They are back in Los Angeles and with a fabulous show!

http://www.20angels.com/index.asp?bid=4&l=1033

My whole family enjoyed the show - including my 6 yr old and 7 yr old girls. Go see it! The best part was when they floated a woman over the crow with helium balloons! People in the audience were able to keep pushing her around the crowd with her feet.

Stable or Declining?!?

James R. Gill — Wed, 26 Sep 2007 21:45:22 -0700

It is a box on your APPRAISAL - "Property Values: Increasing, Stable or Declining." Be very aware, if your appraisal gets the box checked "Declining," you are in for a 5% reduction in what your loan to value ratio is on your loan! It will force you to put 5% more down on the purchase.

We are starting to see this happen!

BE AWARE!

The Nine Most Common Mistakes to Avoid When Obtaining a Home Mortgage!

James R. Gill — Fri, 21 Sep 2007 00:39:25 -0700

You are about to make what will most likely be the largest transaction of your life: your home mortgage. Unfortunately, many homebuyers do not take the time to research some of the little but weighty intricacies of mortgages. Researching the mortgage process takes little time compared to the tens of thousands of dollars it could save you.

Doesn't it make sense to become as completely informed as possible before you buy your next home? This special report is designed to help you avoid nine common mistakes. Remember that the right lender can help you make good, sound business decisions based on your personal financial situation.

Find a Reputable Lender - This is the most important choice you can make when starting the mortgage process. If you don't trust your lender, you are in for a long and stressful home-buying experience.
Pricing - Don't be lured into a mortgage company strictly by promises of low rates. Find out how long the advertised rate is guaranteed for. Make sure there is enough time to close on your loan. Some companies may make these "promises" but will try changing the rate prior to closing. They may claim that your "lock-in" rate has expired so make sure you have the expiration date in writing. In some cases, the lender may even try to delay your closing to break the "lock-in" rate. In other cases the delay may be beyond the lender?s control. Make sure to allow yourself plenty of time for closing. Delays in the process are common and everyone (builders, title companies, even yourself) is responsible.
Programs - You will see several programs that offer special low-interest rates. Keep in mind that they may not be the best program for your situation. Make your lender explain what programs they feel best serve your needs and more importantly, why.
Fixed or Adjustable Rate Mortgage (ARM) - Conventional thinking is that fixed is always better and while this is sometimes true, it is not always the case. The key here is to ask, "How long am I going to live at this property?" An ARM can actually be a better choice if you are going to be in the home for a short time. The average for how long a first time homebuyer keeps their mortgage is less than four years. In general, the longer you plan on staying in your home, the better a fixed rate mortgage will suit your needs.
Don't try to bottom out the market - Deciding when to lock in to a mortgage rate can be difficult. Many people will float, trying to guess when rates have hit bottom. Unfortunately, a lot of times they will wait too long and end up with a much higher interest rate. There is nothing wrong with floating but keep a close eye on economic indicators. Your daily newspaper or even the nightly news can be an excellent source of information on the latest interest rate activity. As closing nears, it might be worth locking in.
Negotiate problems prior to closing ? Its common for a problem to arise before closing. Waiting until closing will rarely be in your best interest. For instance, if you accept $400 at closing in lieu of the seller making a repair and after closing you find that the repair will actually cost $600, you've obviously made a poor decision. Whether the builder agreed to add an item and has not or the seller has made a repair that is not acceptable to you, discussing a solution prior to closing will give both parties time to analyze and determine options.
Be prepared for closing costs ? In addition to the down payment, you will be required to pay fees and other closing costs at the time of the final transaction. Closing costs typically range from 2 percent to 6 percent but will be dependent upon your situation. Lenders must provide you with a "Good Faith Estimate." The "Good Faith Estimate" will breakdown all costs so that you may know what to expect at closing.
Close at the end of the month ? When making a mortgage payment, you will be paying interest that has accrued from the previous month. Upon closing however, your lender will charge you prepaid interest for the date the loan is recorded through the end of that month. Therefore, one way to lower your closing costs is to close in the latter part of the month. This will lower the amount of prepaid interest that you must pay.
Look out for hidden fees -- Check for certain miscellaneous fees such as inspection, notary, and document preparation. These types of fees can mean hundreds of dollars in closing costs. Remember that this is your money at stake. Never should you be afraid to ask for explanations of fees you are being charged.

Does your house have a record??

James R. Gill — Fri, 21 Sep 2007 00:25:11 -0700

Wondering whether your house has a record? Here's where you can find out:

-You can get a copy of your home's insurance claims report, known as a CLUE report, from Choicepoint for $12.95 for an electronic copy or $9 for a mailed copy. Contact the company online at www.choicetrust.com or call 866-527-2600.

-You can't get a CLUE report for someone esle's home. However, if you're buying a house, the sale can be made contingent on the seller providing the report.

-If there is an error on your CLUE report, notify Choicepoint. An item in dispute will be sent back to the reporting insurer for verification. If the item is not removed, you have the right to append a statement to the report.

-Unlike a credit report, there is no "score" that's universally considered good or bad. However, because of the risk of mold, water claims are generally considered more serious than others.

US Treasury Secretary Paulson Says -

James R. Gill — Thu, 20 Sep 2007 12:00:03 -0700

"I urge everyone to call their mortgage advisor NOW before it is too late!"

Everyone needs to understand their mortgage and have a plan. That is what I sell - a plan for peace of mind.

8 Ways To Take Title..

James R. Gill — Thu, 20 Sep 2007 00:16:27 -0700

How to take title: Advantages and limitations.

Title to real property in California may be held by individuals, either in Sole Ownership or in Co-Ownership. Co-Ownership of real property occurs when title is held by two or more persons. There are several variations as to how title may be held in each type of ownership. The following brief summaries reference eight of the more common examples of Sole Ownership and Co-Ownership.

Sole Ownership:

1. A single Man/Woman A man or woman who is not legally married. Example: John Doe, a single man.

2. An unmarried Man/Woman A man or woman, who having been married is legally divorced. Example: Joe Doe, an unmarried man.

3. A married Man/Woman, His/Her Sole and Separate Property When a married man or woman wishes to acquire title in his or her name alone, the spouse must consent, by quitclaim deed or otherwise, to transfer, thereby relinquishing all right, title and interest in the property. Example: John Doe, a married man, as his sole and separate property.

Co-Ownership:

1. Community Property The California Civil Code defines community property acquired by husband and wife, or by either. Real property conveyed to a married man or woman is presumed to be community property, unless otherwise stated. Under community property, both spouses have the right to dispose of one half of the community property. If a spouse does not exercise his/her right to dispose of the one-half to someone other than his/her spouse, then the one-half will go to the surviving spouse without administration. If a spouse exercises his/her right to dispose of one-half, that half is subject to administration in the estate. Example: John Doe & Mary Doe, husband and wife, as community property. Example: John Doe & Mary Doe, husband and wife. Example: John Doe, a married man.

2. Joint Tenancy A joint tenancy estate is defined in the Civil Code as follows: "A joint interest is one owned by two or more persons in equal shares by a title created by a single will or transfer, when expressly declared in the will or transfer to be a joint tenancy." A chief characteristic of joint tenancy property is the right of survivorship. When a joint tenant dies, title to the property immediately vests in the surviving joint tenant(s). As a consequence, joint tenancy property is not subject to disposition by will. Example: John Doe & Mary Doe, husband and wife, as joint tenants.

3. Tenancy in Common Under tenancy in common, the co-owners own undivided interests; but unlike joint tenancy, these interests need not be equal in quantity or duration, and may arise at different times. There is no right of survivorship; each tenant owns an interest which, on his or her death, vests in his or her heirs or devisees. Example: John Doe, a single man, as to an undivided 3/4ths interest, and George Smith, a single man, as to an undivided 1/4th interest, as tenants in common.

4. Trust Title to real property in California may be held in a title holding trust. The trust holds legal and equitable title to the real estate. The trustee holds title for the trustor/beneficiary who retains all the of management rights and responsibilities.

5. Community Property With Rights of Survivorship Community Property of a husband and wife, when expressly declared in the transfer document to be community property with the right of survivorship, and which may be accepted in writing on the face of the document by a statement signed or initialed by the grantees, shall, upon the death of one of the spouses, pass to the survivor, without administration, subject to the same procedures as property held in joint tenancy.

The preceding summaries are a few of the more common ways to take title to real property in California and are provided for informational purposes only. For a more comprehensive understanding of the legal and tax consequences, appropriate consultation is recommended. There are significant tax and legal consequences on how you hold title. We strongly suggest contacting an attorney and/or CPA for specific advice on how you should actually vest your title.

OPT OUT of Junk Mail!

James R. Gill — Thu, 20 Sep 2007 00:13:21 -0700

Cut back on mortgage junk mail by opting out!

In the unlikely event that these companies actually do know your credit scores they probably bought it directly or indirectly from one of the three major credit bureaus. Equifax, Experian and Trans Union are in business to sell credit information about people to lenders.

What's more likely is that you're receiving spam, which are unsolicited e-mails sent to any address that will receive them.

If you're also getting these pitches in the mail, you might be able to cut down on the volume somewhat by "opting out" of marketing lists sold by real estate data companies. The opt out hotlines for the two companies are as follows: 877-774-2094 for Acxiom and 877-970-9171 for DataQuick.

Which Loan Should I Get?!

James R. Gill — Thu, 20 Sep 2007 00:09:17 -0700

Which Mortgage Should I Choose? Key Questions to Ask Yourself and Lenders When Shopping for a Mortgage!

Traditional Fixed Rate Mortgage? Graduated-Payment Mortgage? Adjustable Rate Mortgage? FHA Mortgage? Two-Step Mortgage?

You are wondering which kind of mortgage is best. The answer: There is no one correct answer. Deciding which type of mortgage will best fulfill your needs can be difficult. There are so many types of loans and different term lengths. Your choice is extremely important and can take some time and effort to research. While often neglected by homebuyers, a little research before choosing your mortgage can save you thousands of dollars in the long run.

There are several elements of a loan that should be analyzed. While one of these elements may suggest one type of loan, another may call for a different type. You must weigh each ingredient separately and collectively. You will find that your answers to the questions below will ultimately determine the type of mortgage that best fits your needs.

How long do you plan to stay in this home?
Five years? Ten years? Thirty years? The length of time you will be in the home will certainly play a part in determining which loan to apply for. If you only plan to be in the home for 5?7 years or less, you should seriously consider an adjustable rate loan. If you intend on staying 20?30 years, a fixed rate mortgage may be right for you.

How much risk are you willing to accept?
If you are the type of buyer that needs to know exactly what you will be paying each month for the term of the mortgage, a fixed rate mortgage will fulfill this need. The fixed rate loan, however, will also net a higher interest rate. If you are willing to take some risk of fluctuations in the interest rate, you may be able to receive a lower interest rate.

What are your income expectations?
Plan for the future. Do you anticipate a gradual or dramatic increase in your income in the next few years? If you expect a big increase, a graduated payment mortgage may be best for you.

How much cash do you have available for upfront costs?
If you have the resources, you may want to make a larger down payment to lower your monthly payment. By keeping a higher monthly payment however, you might be able to shorten the term of the loan to a 15-year loan in order to pay it off quicker.

Keep in mind that you?ll have closing costs and fees to pay in addition to your down payment. If you don?t have much cash saved for your upfront costs, don?t despair. You may be need to accept a higher monthly payment or even lower your monthly obligation by choosing an adjustable rate mortgage.

In addition to choosing a type of loan, you must also consider which lender to use. Once again, several factors will influence your decision.

Annual Percentage Rate (APR)
This is most likely the best way to make an "apples-to-apples" comparison of lenders. The APR reflects the cost of credit on a yearly rate and includes any points and fees in addition to the interest rate.

Interest Rate
Find out the rate the lender will commit and how long the lender will guarantee it. Get any commitments in writing. As with any transaction, if it isn?t in writing it doesn?t exist.

Points and fees
These factors will vary greatly. Look out for hidden fees. Make sure the lenders disclose all fees; ask what they charge and what is included and what is not.

Loan Approval
Both approval and funding time should be considered. You don?t want to lose a prospective home because your lender takes weeks to fund your loan. A lender should be able to fund the loan within ten days.

Lender Reputation
Don?t rely on solely someone else?s recommendation. You, not your friend, must feel comfortable with your lender. If you do feel good about your lender and trust him , it will be much easier to trust his advice on what kind of mortgage will best suit your needs.

Mortgage Terms You Must Know!

James R. Gill — Thu, 20 Sep 2007 00:06:57 -0700

Twenty Terms You Must Know and Understand Before You Sign Off On Your Mortgage!

Buying a home is a major achievement in most everyone?s life. Pride of ownership, tax breaks and equity are just a few of the many benefits you?ll enjoy with your new home. Your home purchase may also be one of the largest you will ever make.

During the emotional excitement of buying a home, you may encounter terms with which you are unfamiliar. For some, it can be bit embarrassing to ask what they consider too many questions. Others may make a note of their questions but simply forget to revisit those points. To ensure that you have complete confidence during your home loan process, invest a moment to read this report and become familiar with the concepts and terms you?ll encounter. Knowledge is power and the more you know the more successful will be your decisions and the more soundly will you sleep at night having made them.

Adjustable Rate Mortgage (ARM)
Also referred to as a Variable Rate Mortgage. A mortgage in which the interest rate is adjusted periodically based on a pre-selected index.

Annual Percentage Rate (APR)
An interest rate that reflects the cost of a mortgage as a yearly rate. This rate takes into account any points and fees and is based on the loan going to it?s full-term.

Assumption
An agreement between buyer and seller in which the buyer assumes responsibility for the seller?s existing mortgage. This agreement usually saves the buyer money because closing costs and the current interest rate, possibly higher, do not apply.

Buy-down
A method of lowering the buyer?s monthly payment for a short period of time. The lender or homebuilder subsidizes the mortgage by lowering the interest rate for the first few years of a loan.

Caps
A limit in the amount the interest rate or monthly payments for an adjustable rate mortgage that may change.

Closing
Also referred to as settlement. The meeting at the conclusion of a real estate sale in which the property and funds are exchanged between the two parties involved.

Debt-to-Income Ratio
The ratio, expressed as a percentage, which results from dividing a borrower?s monthly payment obligation on long-term debts by the borrower?s gross monthly income.

Discount Points
Prepaid interest assessed at closing by the lender. A point is equal to 1 percent of the loan amount.

Down Payment
Cash paid by the buyer at closing that makes up the difference between purchase price and the mortgage amount.

Earnest Money
Money given by a buyer to a seller as a deposit to commit the buyer to the future transaction. Earnest money is subtracted from closing costs.

Equity
The value an owner has in real estate over and above the obligation against the property. Equity is fair market value minus the current indebtedness.

Escrow
Funds given to a third party which will be held to cover payments such as tax or insurance payments and earnest money deposits.

Fixed Rate Mortgage
A mortgage in which the interest rate remains constant throughout the life of the loan.

Loan-to-Value Ratio
The ratio between the amount of the mortgage loan and the appraised value of the property.

Market Value
The price that a property could possibly bring in the marketplace.

Mortgage Insurance
Insurance that protects lenders against loss if a borrower defaults. This is required when the loan-to-value ratio is greater than 80 percent.

Origination Fee
A fee charged by a lender for processing a loan application; usually computed as a percentage of the loan.

PITI
Refers to Principal, Interest, Taxes, and Insurance.

Underwriting
The decision-making process of granting a loan to a potential homebuyer.

Variable Rate Mortgage
Also referred to as Adjustable Rate Mortgage. A mortgage in which the interest rate is adjusted periodically based on a pre-selected index.

Improve Your Credit Score!

James R. Gill — Wed, 19 Sep 2007 23:56:47 -0700

This is the single most important factor for getting loans these days!

Improve your credit score!

Generally speaking, a credit score measures the likelihood you'll repay what you owe, and is based on information in your credit report. The rewards of raising your score speak directly to your wallet: You'll qualify for more loans and be offered better interest rates.

There are many varieties of credit scores available to lenders. But the most widely used for large loans are FICO scores, which are based on a scoring system developed by Fair, Isaac & Co., and which are provided to lenders by the three national credit bureaus - Equifax, Experian and TransUnion.

5 STEPS TO BETTER CREDIT

CORRECT BLATANT MISTAKES- Your credit score is only as good as what shows up in your credit report. Review your reports from all three credit bureaus for accuracy once a year as well as several months before applying for a loan. Changing a mistake on your report - such as a payment that is wrongly labeled as late - can take 30 days to three months, sometimes longer.

PAY YOUR BILLS ON TIME - This is always a good practice, and it's especially critical that you make prompt payments close to the time you need a loan. That's because a late or missed payment in the last few months is likely to lower your score much more than an isolated late payment five years ago.

REDUCE YOUR CREDIT CARD BALANCES- A heavily weighted factor in your FICO score is how much money you owe on your credit cards relative to your total credit limit. Generally, it's good to keep your balances at or below 25 percent of your credit card limit - anything above that really can affect your score.

PAY OFF DEBT RATHER THAN MOVING IT AROUND - Since the ratio of your credit card balance to your credit limit is key, closing out an account and transferring the balance simply means you increase that ratio, which is likely to lower your score. In other words, say you owe a total of $2,000 on four credit cards, each of which has a $2,000 limit. Your total credit limit is $8,000 of which your total balance ($2,000) accounts for 25 percent. If you transfer all your balances to two cards and cancel the other two, your total credit limit is reduced to $4,000, and your $2,000 balance now accounts for 50 percent of that limit.

DON'T CLOSE UNUSED CREDIT CARD ACCOUNTS NEAR LOAN TIME- If you have several credit card accounts but are only using a few of them, you'll only raise your balance-to-limit ratio if you close the unused ones. You also shouldn't open new accounts when applying for a loan if possible. If you have a short credit history or very few accounts, opening a new credit line may lower your score since you don't have a proven track record. What's more, a new account will lower the average age of your accounts, another factor in your FICO score.

WHERE CAN I GET MY SCORE? Go to www.equifax.com or www.myfico.com and order all three bureaus. There are two reasons to get your score from all three bureaus: First, each bureau may have slightly different information about you depending on which companies have reported to them on your accounts. Second, mortgage lenders often look at all three of your FICO scores and take the middle score -not the average- to assess your eligibility. So, it's in your interest to know what that middle score is and make it the best it can be!

Secrets Lenders Don't Want You To Know..

James R. Gill — Wed, 19 Sep 2007 23:51:06 -0700

The right or wrong decision when signing your home mortgage can mean thousands of dollars difference in interest paid. There are very important considerations to evaluate before you commit to a 15 or 30 year note. For many of us our mortgage payment is the most important financial decision we'll ever make. Doesn?t it make sense to know as much as possible about the financing of our home? Take the time to thoroughly investigate all of your options!

Unbelievably, many of us sign the first mortgage placed in front of us. Typically the excitement of the new home purchase reduces the mortgage to not much more than an afterthought. What you read here could save you hundreds or even thousands of dollars. Your real estate professional has established relationships with the top lenders in your area. By aligning yourself with a professional agent you ensure that all the financial steps are taken care of properly and economically.

Utilize a Lender With Established Ties to an Agent - Lenders are much more flexible with the real estate agents who have done business with them previously. This relationship then establishes them as a team. The lender and agent work effectively together, referring each other business. That's why a good agent can make substantial difference in setting up the most economical financing. And the right financing can, literally, save you tens of thousands of dollars over the life of your loan!
Don't Attempt Paperwork Alone - All the paperwork required to complete the purchase of a home can be quite intimidating and frustrating for a home buyer. Make sure you have your lenders help you with all the paperwork. Get help from your team, your lender and agent. Their expertise will help alleviate the stress and it will prove to be invaluable before you sign your mortgage.
Look at All Your Options - Make sure you see at least 5 loan programs for your mortgage. Lenders have at least 10 programs and should work with you and your agent on deciding what is best for your circumstances. Evaluate all your options. After all it?s your money you?re spending - not theirs!
Demand Service - There is little difference between a bank, savings and loan, or a mortgage broker when it comes to the competitiveness of their loan rates. The difference is in the service they provide. It is their job to serve you! You want to get the loan approved and move into your new home as quickly as possible, but don?t overlook the fact that you are the one spending the money and they are the ones who should cater to your needs. Don?t let the process become so intimidating that you lose that understanding.
Stay in Complete Touch - You should receive a written report from your lender about every step. This will ensure that no details are overlooked and there will be no surprises.
Negotiate a Flexible Loan - Don?t just accept the terms they lay down in front of you. Lenders are in the business of loaning money and they want your business. Make sure you examine every option available to you. If you negotiate a variable rate loan, many lenders have the ability to move you into a fixed loan if rates start going up. Make sure that you understand whether or not that is an option in the package you are looking at.
Don't Give Up on the First No - Initial decisions are not always final decisions. Going to a higher authority can sometimes get you the loan, but do so with the assistance and compliance of your lender and agent. Many times special circumstances when explained properly to the person in charge, will win you the loan.
Don't Wait for the Bottom of the Market - The odds of you hitting the bottom of your market are about like the odds of you hitting your state lotto! You will almost never hit the bottom of a market. And trying to time it exactly right is often costly. It usually causes a person or family to miss out on the opportunity to purchase a very nice property. You're better off simply negotiating the best rate and terms you can at the time you find a property. If interest rates go down, you can refinance. This is a much better approach because you won?t miss out on the property you?ve spent so much time locating.
Be Honest With Your Lender - Your lender wants to help you with your loan. The only time they get paid is when you get approved. The more information (good or bad) you provide your lender, the easier it will be for them to get an approval. It helps them present the loan in the best light. This in turn helps the loan get the highest approval rating.
Become Completely Educated - Pick your lender's brain. Lenders will teach you all about your various options, even if you haven?t found the right property yet. They will be very patient with you while you are looking, especially if you have aligned yourself with the right agent. They understand all the up-front work will pay off in future business. Your agent will then continue to refer people to the courteous and service-minded lender on down the line.
Get Prequalified - Lenders will provide you with a certificate of pre-qualification. By getting prequalified you know exactly what financial parameters to stay within. Your agent and lender will consult with you and help you get qualified for the loan that best fits your needs. Many times they are able to get you a larger loan than you may have thought possible.

How To Eliminate Risk In Real Estate Investment!

James R. Gill — Wed, 19 Sep 2007 23:47:28 -0700

Avoid 12 Common Mistakes Made by Novice Investors and Ensure High Rates of Return!

Real estate investment has provided many investors with positive cash flow, tax benefits and satisfaction of making an impact in others lives. Like any investment however, real estate has intricate nuances and market trends that when ignored can cause an investor tremendous heart ache.

Unbelievably many first time investors are willing to part with their hard earned cash without taking the time to study their investment. They rely on traditional trends and gut feelings. Before you risk your investment take the time to learn all you can about your market. By aligning yourself with the right professional you can avoid these 12 common mistakes and you?ll ensure an excellent return on your investment.

Failure to Determine Your Time Need - Cash flow, capital appreciation, tax benefits, loss of management, equity paydown and pride of ownership are just some of the things that need to be addressed before you make that investment. A service minded real estate professional can be a tremendous asset by taking the time to evaluate your needs and making sure you?ve got all your bases covered.
Not Checking out the Seller or Sellers Agents Numbers - Claims of extremely high rates of return run rampant in real estate investment. Don?t get caught up in the excitement - check everything: rents, payment history, taxes, expenses, deposits, future modifications... everything. Make sure you have the right agent...it?s like having a good insurance policy against overlooking all the seemingly insignificant but very important details.
Forgetting You Are Buying a Business - Owning investment property carries with it a great potential for creating wealth and... some potentially difficult decisions. Evictions, re-investment into the property and time management all need careful consideration. Remember this is not a ?hands off? business.
Avoid Negative Cash Flow - Property that eats cash every month can drain your working capital. This can create stress, frustration and become quite painful. Predicting constant appreciation is extremely difficult if not impossible for the unseasoned investor. A strain on your cash flow may cause you to sell the investment before the benefits of ownership are ever realized.
Failure to do a Thorough Inspection - Look under every rock! Hire a professional inspector. Ask the tenants about pest problems, structural damage or reoccurring problems. Don?t overlook anything! A value driven real estate professional will help you find the right inspector and can help you avoid costly mistakes. When investing your hard earned money be sure and use sound business judgment!
Failing to Have Adequate Insurance - Investment property brings liability. Tenants, cars, parking lots, cleaning facilities, property liability - the list is quite extensive. Adequate insurance coverage is an absolute must! Be sure to consult with an insurance professional and protect your hard earned assets.
Inspect, Approve, and Confirm All Documents - The list of documents that need to be proofed can be overwhelming to the first time investor. Building permits, zoning laws, rental and lease applications, health licenses, laundry leases, underlying loan documents, CC&R?s, by-laws, title policies, mineral leases, inspection reports, purchase contracts, insurance.. don?t attempt to do it alone. The right professional can remove most of the stress and bring the transaction to a conclusion smoothly.
Get a Bill of Sale For All Property Involved - Many types of personal property (appliances, furniture, fixtures, etc.) can be involved in an investment sale. Be very detailed -know who owns what!
Charge Fair Rents - Vacancies, turnovers and lease terminators are your biggest expense. Charge fair rents, treat your tenants with respect and respond as quickly as possible to their needs. It?s a lot less costly in the long run to take care of the little problems before they become big problems. Vacant property is your Achilles heel.
Select Qualified, Good Tenants From the Start - Take the time to check references. Previous landlords, employers, financial references, credit and judgments are all vitally important. If there are any questions do a thorough investigation. Drive by their previous residence. A little work up front can save tremendous problems later.
Make Sure You Get Estoppel Letters - Get letters from tenants confirming the status of tenancy. Make sure their version of the rental or lease agreement corresponds with the sellers interpretation.
Don?t Spend Positive Cash Flow - Most of successful investors have free and clear properties. Be sure to re-invest your cash flow back into the property payment and speed up the amortization schedule. This decreases your debt load and increases your equity which builds your net worth.

Investment property can be one of the most rewarding aspects of your financial portfolio. Be certain to have all your ducks in a row before you invest. Do your homework! Consult with a professional real estate agent and protect yourself from the hidden troubles that can plague first time investors.

5 Secrets For Buying the Best Home For Your Money!

James R. Gill — Wed, 19 Sep 2007 23:44:50 -0700

5 Secrets to Buying the Best House for Your Money

1. Get "Pre-Approved" - Not "Pre-Qualified!"

Do you want to get the best property you can for the least amount of money? Then make sure you are in the strongest negotiating position possible. Price is only one element in the negotiations, and not necessarily the most important one. Often other terms, such as the strength of the buyer or the length of escrow, are critical to a seller.

In years past, I always recommended that buyers get "pre-qualified" by a lender. This means that you spend a few minutes on the phone with a lender who asks you a few questions. Based on the answers, the lender pronounces you "pre-qualified" and issues a certificate that you can show to a seller. Sellers are aware that such certificates are WORTHLESS, and here's why! None of the information has been verified!

Many times unknown problems can come to the surface! Some of the problems I've seen include recorded judgments, alimony payments due, glitches on the credit report due to any number of reasons both accurately and inaccurately, down payments that have not been in the clients' bank account long enough, etc.

So the way to make the strongest offer today is to get "pre-approved". This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few days to a few weeks depending on your situation. It's VERY POWERFUL and a weapon I recommend all my clients have in their negotiating arsenal.

2. Sell Your Property First, Then Buy the House

If you have a house to sell, sell it before selecting a house to buy! Contingency sales aren't nearly as strong as one that comes in with a ready, willing and able buyer. Consider this scenario: You've found the perfect house - now you have to go make an offer to the seller. You want the seller to reduce the price and wait until you sell your house. The seller figures that this is a risky deal, since he might pass up a buyer who DOESN'T have to sell a house while he's waiting for you. So he says OK, he'll do the contingency but it has to be a full price offer! You have now paid more for the house than you could have because of the contingency, and you have to sell your existing house in a hurry! Otherwise you lose the house! So to sell quickly you might take an offer that's lower than if you had more time. The bottom line is that buying before selling might cost you THOUSANDS of dollars.

If you're concerned that there is not a house on the market for you, then go on a window-shopping trip. You can identify possible houses and locations without falling in love with a specific house. If you feel confident after that then put your house on the market.

Another tactic is to make the sale ''subject to seller finding suitable housing''. Adding this phrase to the listing means that WHEN YOU DO FIND A BUYER, you will have some time to find the new place. If you don't find anything to your liking, you don't have to sell your present home.

3. Play the Game of Nines

Before house hunting, make a list of things you want in the new place. Then make a list of the things you don't want. You can use this list as a guide to rate each property that you see. The one with the biggest score wins! This helps avoid confusion and keeps things in perspective when you're comparing dozens of homes.

When house hunting, keep in mind the difference between ''STYLE AND SUBSTANCE''. The SUBSTANCE are things that cannot be changed such as the location, view, size of lot, noise in the area, school district, and floor plan. The STYLE represents easily changed surface finishes like carpet, wallpaper, color, and window coverings. Buy the house with good SUBSTANCE, because the STYLE can always be changed to match your tastes. I always recommend that you imagine each house as if it were vacant.

Consider each house on its underlying merits, not the seller's decorating skills.

4. Don't Be Pushed Into Any House

Your agent should show you everything available that meets your requirements. Don't make a decision on a house until you feel that you've seen enough to pick the best one.

A decade ago, homes were selling quickly, usually a few days after listing. In that kind of market, agents advised their clients to make an offer ON THE SPOT if they liked the house. That was good advice at the time. Today there isn't always this urgency, unless a home is drastically underpriced, and you'll know if it is.

Don't forget to check into the SCHOOL DISTRICTS of the area you're considering. Information is available on every school; such as class sizes, % of students that go on to college, SAT scores, etc. You can get this information from this web site.

5. Stop Calling Ads!

Please note - ads are sometimes created to make the phone ring! Many of the homes have some drawback that's not mentioned in the ad, such as traffic noise, power lines, or litigation in the community. What's not mentioned in the ad is usually more important than what is.

For this reason, I want you to be very careful when reading ads. Remember that the person writing the ad is representing the seller and not you! The most important thing you can do is have someone on your side looking out for your best interests. Your own agent will critique the property with an eye towards how well it meets your needs and will point out any drawbacks you should know about. So whether you decide to work with me or not, pick an agent you feel comfortable with and enlist the services of that agent as a buyer's broker. Then you become a client with all the rights, benefits, and privileges created by this agency relationship, and you're no longer just a shopper. Did you know that many homes are sold WITHOUT A SIGN ever going up or an AD EVER BEING PUT IN THE PAPER? These "great deals" go to those people who are committed to working with one agent. When an agent hears of a great buy, who do you think he's going to call? His client, who he has a legal obligation to work hard for you, or someone who just called on the phone and said "keep your eyes open"? So to get the best buy on a property, I always recommend that you hire your own agent and stick with him or her.

Attention FSBO's! Why People Are Afraid To Buy From You!

James R. Gill — Wed, 19 Sep 2007 23:41:09 -0700

Why People Are Afraid To Buy From You!

Many homeowners believe that to maximize their profit on a home sale they should sell it themselves. At first glance, they feel selling a home is simple and why should they pay a broker fees for something they could do themselves? In fact, close to 25% of all the homes sold last year were sold for sale by owner (FSBO).

However, close to half of the FSBO's said that they would hire a professional next time they sold. Thirty percent said they were unhappy with the results they achieved by choosing FSBO. Why?

Many FSBO's told us that the time, paperwork and everyday responsibilities involved were not worth the amount of money they saved in commissions. For others, the financial savings were even more disappointing. By the time they figured the amount of fees paid to outside consultants, inspectors, appraisers, title lawyers, escrow and loan officers, marketing, advertising... they would have been better off having paid the broker's fee which would have included many of these charges up front.

Selling a home requires an intimate understanding of the real estate market. If the property is priced too high, it will sit and develop a reputation for being a problem property. If the property is priced too low, you will cost yourself serious money. Some FSBO's discovered that the lost money as a result of poor decisions outweighed the commission.

Before you decide to sell FSBO, consider these questions and weigh the answers of assuming the responsibility versus employing a professional. A little time spent investigating up front will pay off tenfold in the end.

Questions To Consider:

Do I have the time, energy, know-how, and ability to devote a full forced effort to sell my home?

One of the keys to selling your home efficiently and profitably is complete accessibility. Many homes have sat on the market much longer than necessary because the owner was unwilling or unavailable to show the property. Realize that a certain amount of hours each day is necessary to sell your home.

Am I prepared to deal with an onslaught of buyers who perceive FSBO's as targets for low balling?

One of the challenges of selling a home is screening unqualified prospects and dealing with lowballers. It often goes unnoticed... how much time, effort and expertise it requires to spot these people quickly. Settling for a lowball bid is usually worse than paying broker commissions.

Am I offering financing options to the buyer? Am I prepared to answer questions about financing?

One of the keys to selling, whether it's a home, a car... anything, is to have all the necessary information the prospective buyer needs and to offer them options. Think about the last time you purchased something of value, did you make a decision before you had all your ducks in a row? By offering financing options you give the home buyer the ability to work on their terms and open up the possibilities of selling your home quickly and more profitably. A professional real estate agent will have a complete team, from lenders to title reps for you to utilize...they'll be at your disposal.

Do I fully understand the legal ramifications and necessary steps required in selling a home?

Many home sales have been lost due to incomplete paperwork, lack of inspections or not meeting your states disclosure laws. Are you completely informed of all the steps necessary to sell real estate? If not, a professional would be a wise choice.

Do I have the capability of handling the legal contracts, agreements and any disputes with buyers before or after the offer is presented?

Ask yourself if you are well versed in legalese and if you are prepared to handle disputes with buyers. To avoid any disputes it is wise to put all negotiations and agreements in writing. Many home sales have been lost due to misinterpretation of what was negotiated.

Have I contacted the necessary professionals....title, inspector (home and pest), attorney, and escrow company?

Are you familiar with top inspectors and escrow companies? Don't randomly select inspectors, attorneys, and title reps. Like any profession there are inadequate individuals who will slow, delay and possibly even cost you the transaction.

A few points about interest rates!

James R. Gill — Wed, 19 Sep 2007 23:37:51 -0700

A FEW POINTS ABOUT INTEREST RATES!!

Less is more

If you're new to investing or real estate and don't know the first thing about interest rates, here's a good tip: the higher the interest rate, the more expensive it's going to be. High interest rates mean you will have to pay back more on the money you borrow. Another good rule of thumb is that affordability increases if you use an adjustable rate mortgage (it's easier to qualify this way). Of course, there will be a wide range of prices that you can choose from, depending on what kind of financing you choose..

Not even the Fed knows for sure

The Fed holds a considerable amount of power, but they can't control everything. Mortgage interest rates are affected by many unpredictable political, economic and social events. So there is no guarantee what direction interest rates will go, despite the forecasts of the experts. Therefore, make your financial decision based on where things are today including your budget, your needs and your future plans.

Locking in rates assures your lowest interest

If you do decide you want to lock in at a certain interest rate, you will need to complete a loan application and send it to your lender as soon as possible. This must be done so that your commitment doesn't runout before your loan is approved. Follow up and be se sure that the lender is receiving all of the necessary documentation. Get a property appraisal, which usually costs about $400, through your loan agent as soon as possible.

Don't obsess and miss a good real estate deal

Although rising interest rates can create more problems for home buyers, waiting and hoping for low rates is not necessarily a smart move. You may end up paying a higher price. Also, refinancing is always an option in the event that interest rates come down.

Fed Cuts and you wonder what it means to you!?!

James R. Gill — Wed, 19 Sep 2007 16:02:04 -0700

The Federal Reserve cut its overnight interest rate target by half a percentage point to 4.75%, citing turmoil in financial markets as a threat to economic growth. It also cut the discount rate by a half percentage point to 5.25%.

What does this mean for mortgage interest rates? Fannie Mae rates have been improving all month in anticipation of this move, so not much happened today. This does immediately lower all Home Equity Lines that are tied to Prime Rate by .5% !

This move will significantly help with psychology of the buyers and this is a great time to approach your buyers and let them know that this move should spur the market into more sales.

Call me if you want to discuss!

Special Fed Alert

"The long awaited Fed decision arrived with a bang! The Fed surprised many economists and traders with a half percent cut in both the Fed Funds and Discount Rates. Stocks soared higher and enjoyed their largest gain since 2003.

What does the Fed cut mean? Rates on consumer debt, car loans, and Home Equity lines will all benefit. But because Home Loan rates are tied more closely to inflation, it is not uncommon to see less of a reaction...or even an opposite reaction in mortgage rates.

The Fed cut also hurts rates of return on investments, which gives foreign investors less incentive to invest in US securities. This has sent the Dollar much lower against the currency of most major foreign countries. This makes foreign goods more expensive for us to buy, which adds to inflation pressures.

Overall, the Fed cut is good news for the economy, but may nudge inflation a bit higher."