California Home Loans | Mortgages | Refinance | Mortgage Loan

Huge California Real Estate opportunity in April 2010

Tue, 13 Apr 2010 12:38:30 -0700

Thanks to the new California first time homebuyer tax credit that governor Schwarzenegger signed into law, first time homebuyers can qualify for a state tax credit of 5% of their purchase price, up to $10,000. Because the federal tax credit expires at the end of April 2010, if you enter into a purchase contract before the end of April, and close the esrow after May 1, you can receive the federal and state tax credits combined. The federal first time homebuyer tax credit will give 10% of the purchase price, up to $8,000. Taking advantage of both credits in the months of April can result in up to $18,000 of tax credit. This really is an incredible opportunity, and one that any of you that have been thinking about buying property, should take advantage of. If you live in California, and want to see what opportunies are available, give me a call at 800-785-4952. Fresno Real Estate

California Home Loans

$8,000 First Time Home Buyer Tax Credit Coming Close to the End

Tue, 26 Jan 2010 19:13:38 -0800

This is just a reminder that the $8,000 tax credit, awarded to first time home buyers, expires soon on April 30, 2010. This means that the signed purchase agreement for your California real estate needs to be dated no later than April 30, and the escrow needs to close by June 30. This type of free money from the government may not be extended again, so if you are thinking about purchasing property, get off the fence, give me a call at 800-785-4952, or contact a local real estate agent, and start the home search. Some of you will be pleasantly surprised at how much home prices have dropped in the last 18 months, and perhaps that home that was out of reach, is now affordable to you. Interest rates are still at a historically rock-bottom, so lets see what we can get you pre-qualified for. My California home loans website answers many questions you have about the home buying process, and all of the information is FREE. Happy house hunting!

Fresno Real Estate

Happy Holidays and a Happy New Year!

Mon, 21 Dec 2009 16:21:02 -0800

I want to take this time to thank all of my readers, past clients, and current clients, for a memorable 2009. It sure seemed like one heck of a tough year for everyone. 2009 was marked with dramatic changes in the real estate and mortgage industries, but also in the political and economic landscapes as well. Many of you took advantage of the opportunities in this market, and bought or refinanced real estate at reduced prices with historically low interest rates, and some of you were first time homebuyers that will also receive an $8000 tax rebate next year. I congratulate you all and wish you a fantastic 2010. During this time of the year, I am reminded of how fortunate my life is, and how rich my life has become with my family and friends. It makes me think that no matter how doom and gloom the news around me may be, it is the people in my life that bring real joy and happiness to me, and with their help, I can overcome anything.

2 weeks ago, I decided to do something for charity. I always try and give during the holidays, but this year, rather than do my usual cash donations, I decided to take on a project. I set a budgeted amount to spend and went to a local "Big Lots" store. I proceeded to purchase some really cool toys. Some for older kids and some for younger kids. When I was done shopping, I delivered the toys to a "toys for tots" collection center. When I handed the bag of toys to the Marine soldier, he thanked me, and as I walked to my car, I felt overwhelmed with joy. The fact that I took the time to shop, and get toys that I liked, made this donation far more rewarding to me. I know that a child, much less fortunate than mine, will receive one of my gifts and will really appreciate it. I truly feel like I made a difference, no matter how small it is.

Today, in a similar fashion as before, I have set a budget, and will be heading to the grocery store to purchase food stuffs that a local homeless shelter needs. Their list includes mens clothing and shoes, so I have gone through my closets to get as many items as I could, to bring to the shelter. I'm super excited about today, and hope that some of you will take the time to give. I don't know how inspiring this post in fact is, but I can tell you that the feeling I had at the toys for tots center, is one that everyone that can give should want to feel. It's more than just intangible, it's real. So if you get a chance in the next 2 weeks, and you find yourself sitting around more than usual, I recommend you go on the website of any of your preferred charitable organizations, and see what they need. Take the time to put a donation together and go deliver it in person. You'll be glad that you did. Happy Holidays and have a Happy New Year! Cheers!

California Home Loans | Mortgages | Refinance | Mortgage Loan

Fresno Real Estate | Mortgage | Refinance | Home Loans

Insist on Realistic Expectations

Fri, 11 Dec 2009 14:02:42 -0800

I recently helped a first time homebuyer acquire a beautiful home, and I let him get me away from insisting on realistic expectations, that came back to bite me. The property is such a jewel: a home on a private golf course, selling for less than half of what it sold for 3 years ago. It's on a 1/3 acre lot, a custom vintage home from the 1960s. This California real estate represented everything my client was looking for, and beyond, when we began the home search over a year ago. The home was bank-owned, and the listing was an "AS IS" scenario. While there were typical love and care issues that were needed on this REO, it had a dated roof. The sellers made it clear that they would not repair anything on the home, and would only address issues that were required by the California Mortgage lender. We discussed the possibility of an appraiser noteing the age of the roof on the appraisal, and we felt like there was a chance they would identify the roof's age. We made the offer with the client understanding that he was agreeing to buy the home as is, whether the appraiser said anything about the roof or not. An initial roof inspector suggested the roof was over 45 years old, and needed to be replaced. So my client then began to talk and brag to his friends about how this home was great, and how the roof would be addressed by the sellers. I always followed up with him stating we would do the best that we could, once the appraisal was completed, to address any issues the lender required. When the appraisal was completed, there was nothing mentioned about the roofs' age.

My client's entire demeanor changed. We went from a productive, agreeable, and respectable relationship, to a hostile, irritable one. My demeanor continued to be one of a professional, consultive approach, but now had fallen to deaf ears. To me, nothing had changed. The hopes of a roof issue being addressed on an appraisal was merely a bonus. After all, it only amounted to about 4% of the total purchase price. But to my client, over the 2 weeks we waited for that appraisal to be completed, the roof became a paramount issue that he had staked his ego on. We moved forward, and closed the escrow on-time, but in the end, my client directed his frustration at me, and was unhappy with my service.

I find it incredible on one hand that I completely succeeded in: locating the home of my clients dreams, negotiating a fantasticly low purchase price for it, secured a historically rock bottom interest rate on his California mortgage loan, and positioned my client to take advantage of the first-time homebuyer credit, and that my client could be unhappy with me. When I look back on this transaction, I will take away the one thing I should have done more forcefully, and that is to insist on realistic expectations, and not allow my clients' hopes to prevail over what can happen. It's tough to take a hit from a client I expected to receive tremendous endorsement and referrals from, over something I had no control over. Expectations should not only be discussed upfront but need to be repeated throughout the process, no matter how much your client wants to abandon them.

Fresno Real Estate | Mortgage | Refinance | Home Loans

Have a problem with the appraisal? Don't blame your mortgage pro, blame Washington.

Mon, 24 Aug 2009 23:21:12 -0700

It's been over 100 days since the HVCC law came into effect, and I'm throwing in the towel on this one. What a disaster. The HVCC law "protects" borrowers and lenders by preventing mortgage pros from speaking directly with appraisers, and thus not allowing them to "influence" the values. The practical consequences of this law has caused lenders to feel less confident in the appraisal, than ever before.

In practice, this HVCC law has helped create a third party appraisal referral industry. This industry is collecting as much as 40% of the appraisal fee. Because so little remains for the appraiser, many of the experienced appraisal professionals cannot stay in the industry. What remains are inexperienced and green appraisers who do what they can to arrive at a value, and travel as far and wide as possible to stay busy enough to survive. Lenders are now forced to charge borrowers additional fees for appraisal reviews that can undercut values, and kill the loans from moving forward. Many lenders are even requesting second appraisals, at the borrowers expense, to feel confident about the reported values.

In the end, borrowers are stuck paying more for the appraisal, and many lose out on purchasing a home because of the inaccuracy of appraisal work being seen. There has also been a tremendous amount of "poor assigning" done by these third party agencies, where they have assigned appraisers, who are not local to the area, assessing values where they are completely unfamiliar with the geography. These third party agencies have no real competition, and can bank on other peoples work, so what do they care?

I had to face just this type of scenario with a recent client, where an appraiser from 110 miles away was assigned to an appraisal of residential property. His value was off by about $10,000 from where the market was, and after 2 appraisals, and 6 weeks of going back and forth, the proper assessment was accepted. The purchase escrow did close successfully, but the real estate office was upset with me because I could not guarantee the appraisal would come in at value, and felt like it took way too long to close. My response is simple and true, don't blame the mortgage professional, blame Washington.

California Home Loans | Mortgages | Refinance | Mortgage Loan

How to say "NO" to a friend

Tue, 09 Jun 2009 18:04:37 -0700

I recently had to do what so many of us hate doing, maybe more than anything else, in our profession. I had to tell a friend that I could not help him buy his first home and secure financing for his California home loans. I've been told a thousand times by a thousand people that you should not help your friends professionally to begin with. That it's safer to simply refer them to someone you know or work with, rather than deal with the pressures of taking on a friend as a client. Well, up until today, I thought that way of thinking was just silly. I've helped several friends buy their first California real estate and/or secure their California refinance. Most of the transactions, like all of my other clients, went smoothly. But this friend tested the very limits of my patience and professionalism.

As you continue on in your career, you learn lessons along the way. How to spot a borrower that you should stay away from, and how to cut your losses when you're fighting an uphill battle. The challenge for me came when it was a friend that wanted me to fight his fight. He asked me to please help him through his challenges, and so I did. As we continued though the process, the rubber finally met the road, and the documentation he was submitting to me, did not support what was coming out of his mouth. As his documentation revealed different aspects of his situation that he did not disclose to me, he began to have explanations for everything. The red flags were there, and my experience told me to cut him off. Whenever you realize a client is lieing to you, you should always walk away. But I attempted to deliver his explanations to my team and insisted they push forward. In about a seven day period, I had several people in my office questioning me, and what I was doing. By continuing to get my friend approved, I was alienating my broker, and my processor, and losing their confidence. At the end of the day, I did what I knew I would have to do. But not after I damaged some of the relationships and respect I had built up in my company, all these years. It simply wasn't worth it.

Friends are a wonderful group of people to help. But that help must come with a set of standards that have to be adhered to. Just because someone is a friend, does not mean you should look the other way when they lie, once, or twice. The feeling in my gut is relief, that it's over. But the sense of loss and failure, for a person I wanted to help so much, will linger on and will remind me the next time a friend wants help, and starts to lie, that you just have to say "NO."

Show some respect and be professional

Fri, 08 May 2009 19:16:08 -0700

I picked up a new client this week, with an interesting set of circumstances. I want to share it with the community, because there is a great lesson to learn here. My borrower went into a local housing development, and really liked one of the finished homes that they were selling. He went into the sales office to inquire about purchasing the home, and they referred him to their inside mortgage agent, for a loan approval. They collected his financials and pulled his credit, and offered him an FHA loan with a 3.5% downpayment, or conventional loan with a 20% downpayment. My borrower asked them if he could go conventional with less money down and they told him no, and that this was all that they could offer him, and that this was all he could do. They then pressured him by telling him that he had to choose which loan program he wanted because they had others that were interested in buying the home.

He was immediately turned off by the pressure, and became uncomfortable with them. He told them he would get back to them. He then contacted my office wanting to get pre-approved for a home loan. I then submitted the loan, and approved him for a conventional purchase with 5% down. The guy had 800 credit scores. I generated an approval letter for him to share with the sellers, and they would not accept that he had secured financing through another mortgage company. They presented him with a letter and asked him to sign it, obligating him to pay $250 per day past the expected close of escrow date, because he chose to work with his own lender. They then threatened to take away the seller concessions they offered him, if he went with me.

My borrower became furious. As he stated to me, they did not present all of his financing options available to him, then they attempt to penalize him for working with someone he's comfortable with, and then threaten to remove the seller concessions when they were originally offered to him because he was not working with a buyers agent. He almost walked away from this purchase. He also felt because he was of asian decent and his english was not perfect, that they were racially discriminating by originally telling him that he had to go with their mortgage people. Fortunately, I was able to speak to him and suggest they would agree to work with us, and sure enough they did.

The moral of this story is that no one needs to force anyone to do anything in this business. While sales may be slow for some of us, the home sells itself. Forcing potential clients to work with people they're not comfortable with hurts everyone. The credibility of this developer is now in question and the borrower does not feel good about this transaction. There may very well be violations of the Department of Real Estate codes, as well as racially predatory practices that took place.

My thoughts are, be a professional. Do your job thoroughly, and respectively. Do not assume because someone doesn't speak perfect english, that they're stupid. If we all try to be considerate and respectful with each other, and those we work for, as well as to our clients, we can have very successful closings that bring future referrals our way.

Joe Almirantearena - California Home Loans

How to save for the downpayment

Thu, 12 Feb 2009 10:55:39 -0800

I received a call yesterday from a borrower with an interesting situation that I thought I would share. For the last 2 years she has been working on improving her credit scores and reducing her debt. She started with a 420 credit score, and today is enjoying a 640 mid credit score. She wants to buy a home in her area, because her current rent payment is nearly equal to what a California home loans payment would be for the price of a home she's interested in. Her income is solid, her debt is low, but she does not have any money for the downpayment. In California, up until 5 weeks ago, there was a loan program called FHA access, that allowed you to secure a 97% FHA 1st, with a 6% second that would cover the down payment and closing costs. Citimortgage was the servicer of this program, but as many of you know, they have ceased their wholesale operations as of the middle of January.

So saving for a downpayment is the next step for her, and this little trick can make all the difference in the world. If a borrower is interested in purchasing a home, figure out what the monthly PITI for the home would be. Take that amount and subtract it from the rent payment they are currently making. Whatever that dollar amount adds up to be, save that amount each month, open up a savings account at a local bank, and deposit that amount each month for 12 months. I asked her to do just that. If she does it, she will discover at least 2 things. First, whether or not she can actually afford the higher mortgage payment, and second after 12 months of saving, she will have a significant portion of her downpayment saved up to buy her California real estate.

Considering how unstable the California real estate market continues to be, and how uncertain the economy as a whole is looking for 2009, there's a strong probability that she will find after 12 months that California real estate prices still remain low, and California mortgage loan interest rates competitive.

Get off the Fence!

Fri, 28 Nov 2008 02:20:45 -0800

I had a conversation with a client of mine that many of us are going through. He contacted me yesterday to wish me a happy thanksgiving, and to ask when I felt the bottom of the California real estate market would be. I told him that there is money pumping into the credit sector now, and that prices have already come down substantially in the last year. I told him he should take advantage of a sub 6%, 30 year fixed interest rate market, and get off the fence. He seemed to believe that prices will come down even further, and that the middle of 2009 would be the low point. I told him that if that is what he believes, he should go with it.

It left me a bit puzzled. On one hand, everyone agrees that we are in an economic crisis, and on the other hand people do not seem to understand that if businesses go out of business in 2009, less competition will drive up price levels, creating stagflation, and increasing interest rates. Considering how much property is available for sale, the sky high foreclosure rate, and the very low interest California home loans market, the time to buy is now!

How do all of you feel about the market right now? Do you feel it's time to get off the fence?

Happy Veterans Day!

Tue, 11 Nov 2008 15:58:44 -0800

I'm not one to blog about a holiday, normally. I see it often times as an insincere way to promote oneself. However, today I feel inclined to write about people that are perhaps the most important members of our society, and many times least rewarded. We've all been reading and writing about how bad the real estate and mortgage industry has been this year. How challenging it has become to close a California mortgage loan or work with sellers that resist reducing their asking price, but the truth is these priviledges we enjoy are due to the men and women who have fought for us, and died for us. Many were teenagers and people that did not fall into the traditional careers that we chose. But they are the backbone of liberty, independence, and freedom that we enjoy. Take the time to thank a service member the next time you come across one, and offer them a debt of gratitude for the life you enjoy.

Confidence in your team leads to Success

Thu, 06 Nov 2008 15:41:49 -0800

A loan processor friend of mine, I'll call her Lisa, shared a story with me yesterday, about a mortgage broker that had a meltdown. I thought the lesson learned applies to everyone in the real estate and mortgage industry, so I will share it. Up through 2008, this mortgage broker, I'll call him Sam, had a thriving business. He employed 30 solid producing loan officers, and enjoyed having a fruitful business. As the market changed in 2007, Sam began to lose loan officers, and is currently down to 4 or 5. He hired Lisa, about 6 months ago, to be his contract loan processor. When she was hired, she agreed to: the standard job expectations, and to process loans at a reduced per file cost, in exchange for all of the volume of his office. As the months have gone on, Sam has isolated himself from his colleagues, and has become hostile towards those around him. It has reached a point where he does not even want to talk to his borrowers after he takes the initial loan application, wanting instead that the processors handle everything that comes up, including dealing with his clients directly. He only interacts with his employees to question the status of loans, and to bark and blame everyone for not doing enough to close his and their loans.

Lisa decided that since the time being spent on each loan has dramatically risen, and the number of times each loan was having to be resubmitted to alternate lenders has increased, that she should be fairly compensated for her time. She asked Sam if he would agree to increase her compensation per closed loan due to the added time requirements she experiencing. Sam flew off the handle. He began to pressure Lisa about why loans had not been closing, and why things were not getting done. Lisa explained to Sam that in addition to the new lending environment they're in, and the additional responsibilities of contacting all of his borrowers, the loans were taking more time to close, and that she needed to be compensated correctly for it. Sam threatened to let her go if she did not do everything she could to close a loan, and told her it his her responsibility for everything concerning the loans, and that he would not compensate her for the additional time she spends on the files. Lisa chose to no longer take on anymore loans for Sam, close all of the loans she is currently working on, and seek new brokers to process for.

This story is probably more common in todays market than anyone would care to believe. Most of us in the California real estate and California mortgage world, are commission based workers. We know what reasonable expectations are. We have to hustle every day, in each of our respective positions. Teamwork, respect, and hard work are cornerstones of success, and if we lose confidence in our team, the engine stops running. We all have to remember that whether we're the realtor, mortgage broker, processor, title agent, or escrow officer, everyone gets paid when the loan closes, and all of us have to support each other if we want to succeed. If we feel like we're having a hard time making it, don't forget that those around us are also struggling, and still need to be treated with the same respect that we would want to be treated with. If Sam could have simply stopped feeling sorry for himself long enough, and realized that his processor was making a reasonable request, that her compensation would come from the borrowers, and not out of his pocket, he probably would not be losing her. Sam's self-pity and self-destruction is causing him to lose his entire business. In this difficult time, we all need to remember what made us succeessful from the beginning. Be a professional, treat others with respect, have confidence in your team, and you can be as successful as ever.

Social Bookmarking and Internet Marketing question

Wed, 29 Oct 2008 14:53:31 -0700

I am new to blogging and social networking. My question is to all of you that are much more familiar with this technology than myself. I am starting to see that for the mortgage and real estate industry, taking advantage of the social networking websites can be very advantageous. I was thinking of setting up profiles on the major social networks, ie.,( facebook, myspace, trulia, zillow, mortgagefit, activerain, localism, etc...) Then incorporating some sort of tool, where I can distribute my blog posts to all of my profiles on all of my social network pages, once I post it. My questions are, is this a good idea? Will this build one-way links back to my California mortgage website? Is there a tool that will help do this for me? Do any of you have suggestions on how I would go about doing this, or know the name of a tool that can do this? Thank you.

Reaching the End of the Road

Fri, 19 Sep 2008 19:55:56 -0700

I just witnessed a tough situation today that all of us must go through at different times in our lives. A close friend of my family, diagnosed with Leukemia just a few weeks ago, came home from the hospital, after the doctors said there's nothing more they can do. He had a tremendous amount of hope for successful treatment before he entered the hospital, and now he feels like it was a waste of time. The look I saw in the face of my friend, was one of terror. Fear of dying has got to be an overwhelming feeling, when you know it's right around the corner. Beyond the crying, and the suffering his wife and child are going through, the terror in his eyes has been burned into my brain, forever.

I can't help but think about how much time I spend working on these loans. How often I've stayed late at the office, to close a California home loan, or to help my clients reach that dream of homeownership, and had to give up time with my family to do it. Or how many weekends I've given up, spending them at an open house, with a local realtor, to generate leads for my business. I'm reminded that time is precious. Our time on this earth does not last forever.

Make the most of your time, and make the most of your career, this is a lesson I'm learning here. Stop wasting time on prospects that aren't sure whether they want to buy a home or not. Admit when you can or cannot help someone. Make sure those that you work with, and surround yourself with, understand that time is precious, and we're on this earth to experience life, not waste our time showing properties to folks that are really not going to buy. Or working with borrowers that want you to chase them down for everything.

Life seems to become crystal clear when reaching the end of the road. Seize the moment, today! It doesn't last forever.

California Real Estate - The 7 things you must know before you buy

Thu, 18 Sep 2008 21:46:40 -0700

This is a helpful list of things to consider. Before putting all your money into mortgage payments, please
consider the following 7 important issues. By considering these important financial issues, you will be able to make your payments work much harder for you.

1. Get pre-approved BEFORE you look for your new home.

Of all the steps to do before you buy a home, the pre-approval part is the easiest. One of it's benefits: It will give you complete peace-of-mind while you are looking for a home. The best part, it's usually free. Your California mortgage lender can give you a written pre-approval with no obligation on your part. Getting pre-approved means money in the bank! Being pre-approved means that you have a guarantee of obtaining a California home loan up to a specified level.

2. Know what level of monthly payment are you comfortable with.

When your are discussing your pre-approved mortgage with your California mortgage lender, you will find out up to which level you can borrow. You must also pre-assess what amount of dollars you want to spend each month on your home without getting uncomfortable. Your financial situation could give you a higher level of pre-approval than what you could feel comfortable paying each month. Once you have set that amount, you will know the price range of the house that you should be looking for.

3. Select the type of California mortgage that will best suit you.

Before you commit to a certain type of California mortgage, there are a number of questions you should be asking yourself. Mainly: How long do you think you will own your present house? Are the interest rates going down or up? Will your earnings change in the near future, will that change have any influence on your future payments? Once you know the answer to these questions, you should be in a better position in choosing the appropriate type of California home loan you should be looking for.

4. Payment frequency options.

Accelerated weekly and bi-weekly periodic payments can save you thousands of dollars in interest payments. If you plan your mortgage periodic payments well, you will significantly lessen the amount of interest that you will be charged over the term of the loan. The best trick is the accelerated bi-weekly mortgage payment system. You pay every second week, half the amount of what should have been your monthly mortgage payments. By using this system, at the end of the year you will have paid the equivalent of 13 monthly payments.

Note: Not all mortgages are of the accelerated bi-weekly

5. Authorized pre-payment.

Another system that can greatly reduce the total interest amount you will have to pay is the authorized pre-payment system. By paying off a certain percentage of your mortgage, or by increasing the amount that you pay monthly, will greatly reduce your mortgage costs. By using an authorized pre-payment system you can have a major impact on the number of years you will have to pay your mortgage.

Note: Not every mortgage has the prepayment option built in.

6. Work with a financial expert.

Before you choose your mortgage type, or the California mortgage lender, get the insight of a professional. Ask a California mortgage specialist. A California mortgage specialist will usually answer your questions at no cost or obligation and, if you do use his or her services, you will probably get your California mortgage loan faster, and with better conditions than if you didn't.

7. It's usually better to choose a good house instead of a good deal.

Here is an example. In 2004, two houses were sold. One for $320,000 and the other for $610,000. One was at a major road and the other one, not far from it, in a reasonably quiet street. Both houses were purchased by respective owners around 1982. The one at a major road was paid around $70,000 while the other was paid around $90,000. The owner of the later home not only got higher appreciation from his house, he also enjoyed a quieter life for 22 years.

Good Luck!

Is the subprime debacle really what is causing the financial markets to crash?

Thu, 18 Sep 2008 01:52:44 -0700

As I was thinking about this blog post, I couldn't help but think about todays' headline concerning the FED loaning 85 billion dollars to bailout AIG. What an astronomical number! I then thought about all the bad press the mortgage industry has endured this last year. Bad subprime loans was supposedly the reason the financial markets have crashed, and why the ensueing foreclosures, due to these "bad" loans, have caused real estate to go South. Yet AIG is primarily an insurance company. Sure they have some subprime exposure, as most financial behemoths do, but in this case foreclosures and bad loans are not the chief culprit.

Could it be that rather than bad apples in the mortgage industry, these huge financial behemoths are responsible for the financial and real estate crisis in America? I find it comical that when a bad attorney surfaces in the legal world, society accepts them as a bad apple. No one is about to question the "integrity" of the United States legal system. So most attorneys are respected, and the bad apple does not reflect the bunch. But in the mortgage world, those bad apples, that put people into Subprime products, that could have qualified FHA or Conventional, have been reflected onto the entire mortgage industry.

I can certainly understand the consumers frustration, with "shady" loan officers. There's no question that the number of unlicensed mortgage professionals, originating home loans over the last 4 years, was greater than the entire industry combined prior to it. However this AIG debacle, should give us, legitimate, hard working mortgage professionals the dignity we deserve.

I feel like it was the same financial behemoths responsible for the current financial crisis, that created the subprime crisis. It was not a bad apple loan officer in Buford, Illinois, that created a 90% loan to value with a 500 credit score lending guideline. The financial institutions did. These entities decided to lend funds with ridiculously low lending standards, that would no doubt be exploited by incompetent loan originators. They wanted to increase production, and please the stock holder. They sacrificed long term profitability for short term returns. Now after years of unsound lending guidelines, it's the mortgage industry that's responsible for the financial collapse of America?

Whether it was mortgages, insurance, or any other financial instrument that was led into the ground by these mega-financial entities, it's time they accept their responsibility for what they've done. Who do you feel is responsible?

California Refinance Mistakes to Avoid!

Tue, 16 Sep 2008 20:55:31 -0700

1. The new interest rate does not justify the refinancing
Before you go ahead and refinance your California mortgage, you have to make sure that the change will save enough to justify the whole process of refinancing. As a rule, if the interest rate does not decrease by at least .0075 (.75 %) to .01 (1%) the refinancing is probably not a good move.

2. Not knowing your real closing costs
Closing your California mortgage is usually a charged service. By law (in the United States), closing costs must be disclosed within 3 working days of the loan application. Each lender has its own way of calculating the closing costs. Initially, your closing cost are an estimate. However, once your specific loan details are known, the closing costs are no more a mystery. Use the worst case scenario, if you still make a profit with that scenario, and if your new interest rate justifies it, you can consider refinancing.

3. Knowing why you are refinancing
A lot of people refinance just to reduce their interest rate. This is not always at your advantage. You have to make sure that you recoup all the cost that are involved in the refinancing operation. Some other reasons might force you to refinance. One of them might be debt consolidation, another one, some home improvements, or another large purchase. Some of these options may offer you some other financial advantages or personal advantages, like using some cash to purchase a car. In some cases you may be able to deduct some of the interest charges on your tax return. Any big decision like this one should always be preceded by a consultation with an expert (accountant or tax attorney).

4. Only listening to the APR advertising
The Annual Percentage Rate (APR) is not everything. Very often brokers will use the APR as a "teaser". This will get your attention, but the refinancing could cost your more than what's advertised. Such low rates are usually calculated by using a 30 year mortgage loan, together with an accelerated bi-weekly mortgage plan. Very often, lenders will let you, AT NO EXTRA CHARGE, select an accelerated bi-weekly mortgage plan. Make sure you know all the facts before you start any California refinance.

5. Not knowing the mortgage broker's plan details
It's simple, you want to do your refinancing in the shortest amount of time, and with as little hassle as possible. Ask your California mortgage broker if he has performance guarantees and service plans. If he does, make sure your California mortgage broker offers the quality of service you need.

6. Not knowing the broker's products
If you don't ask, you won't get. If all the California mortgage brokers were equally created, you wouldn't have to, but it's not the case. You have to know what your broker has to offer you, what loan products are available, the terms and the rates. Sometimes, just what looks like a subtle difference, could save you (or cost you) thousands of dollars.

7. Failure to examine your credit problems
The majority of people have no idea what type of credit they have or how to repair any unfavorable credit which may exist. They fail to realize that credit is one of the key factors in refinancing a current mortgage. Credit problems not only bring down to a crawl the process of getting a loan, but can damage your ability to make numerous other purchases.

8. Not knowing how much money a lender is willing to loan you
If you are planning on refinancing your home, you must be aware that most lenders have strict guidelines on how much money they are willing to lend. The lender's decision is usually based on your loan-to-value ratio. In other words, mortgage lenders have limits on how much money you can borrow based on the value of your house.

9. Failure to find a reputable and experienced California mortgage lender
You must associate yourself with an honest, high quality, and service-oriented California home loan lender. This is probably the most important ingredient in finding good home refinancing. Dealing with the right lender can mean the difference between having your loan refinancing approved or rejected.

10. Lying to your California mortgage loan lender
There is nothing like the truth. If you already owe too much, refinancing might not be the best move. Be ready to give all the information the California mortgage broker requests (income tax information, credit card balances, other loans, current mortgages, etc.)

Don't Believe Every California Mortgage Interest Rate You See

Tue, 16 Sep 2008 20:19:41 -0700

Don't Believe Every Rate You See!

If you're a savvy consumer, I'm sure you've seen many nationally-branded companies advertising ridiculously low rates. Despite the fact that rates have hovered near extraordinary lows for an extended period of time, many of the largest national lenders routinely tout rates that simply seem "too good to be true."

In fact, they are exactly that, at least for the overwhelming majority of borrowers. Certain nationally advertised companies also promote incredibly low closing-cost fees. Don't get sucked in, though, and don't believe the hype... these advertisements are, in fact, not credible at all.

The average consumer is typically not aware that these advertised rates and costs rarely, if ever, apply to their personal situation. Worse yet, after investing the time and energy into the loan process with one of these misleading lending institutions, consumers rarely realize the hidden fees, costs, and percentage points that they will end up paying until it's virtually too late.

As a well-informed borrower, how then, can you avoid such pitfalls? Where can you find the truth??? First, try visiting a FREE, California home loan information website like http://www.findmyloanonline.com

Second, you need to realize that every lending institution or California mortgage company uses the same pool of lenders. In other words, a handful of entities control all the available money that can be borrowed, and the end result is that your California refinance loan actually comes from the exact same source, no matter who actually provides you with that solution. So, if it's the same money, how can they charge so much less?

The answer is simple: THEY CAN'T. Many of these companies initially entice you with artificially deflated low rates and closing costs, only to "inform" you later that you actually don't "qualify" for that special promotion because you don't have a FICO score of 849.99. Or, you don't already own 85% of the equity in your home. Or, whatever...By then, you've already invested a considerable amount of time and effort, and you want to get on with your life, so you just say "OK" and go along with their program. The result is that you actually could end up paying MORE, since you were on your own to evaluate the hundreds of programs that may be available to you, and did not have an experienced California mortgage professional really evaluate your personal situation and explain the best available options. Good Luck!