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real: Where's the Benefit? - 02/13/07 11:10 AM
On December 15th of 2006, Bryant Tutus, wrote a blog on the Real Estate Network "Active Rain" labeled, "Your home is your castle, not an ATM machine!"
Broker Bryant brings up many good points within the article, explaining the cycle that many homeowners get caught up into when refinancing their homes. Many ads will make it look so easy to get that cash that's sitting in the equity of your home for any given reason!
I'm here to tell you that there are pitfalls to this train of thought and you should really THINK about your decisions and work with a mortgage professional … (8 comments)
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real: Demanding a Rate Over the Phone! - 01/18/07 11:25 AM
I received an interesting call yesterday, so I figured that I would share it for the world to see my response...Or atleast possible California clients and Associates :)
The potential client called me and started rambling about random things, I tried to keep some flow to the conversation. In the end, I question if I ended up on some Los Angeles radio station, where I was broadcasted across the state for everyone's humor, including my wife's.
With that said, here goes:
Caller: What are your rates?
Me: Sir, I need to get some information from you before we go through rates.
Caller: I'm looking for … (24 comments)
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real: Home Loan Documentation Types - 01/16/07 11:56 AM
Are you wondering what types of documentation loans are available? Banks and investors have come up with a variety of loan types to help borrowers qualify easier into home loan and refinance products.
While some may be worried about being able to qualify for a home, you'll be amazed at the products available in the marketplace that you can take advantage of to purchase or refinance a home.
Feel free to contact me with your California Home Loan needs. I will go through all of your information with you and I'll be sure to match your particular scenario up with the products … (8 comments)
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real: Taking it to the next level with a new client.. - 01/16/07 11:52 AM
I had a great sit-down today with a new client. She is a First Time Home Buyer that wanted to meet face to face with me...I love it! Back in the old days, transactions were only done in such ways. You could look a person in the eye, listen to their tone of speech and understand where they are coming from before you decide to do a transaction with them. With that being said, trusting a lender is everything in a Real Estate transaction! You open yourself up across all aspects of your life. For example:
Have you filed for bankruptcy?
Have you … (2 comments)
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real: Comparing a Mortgage Broker to a Direct Lender - 01/12/07 11:53 AM
Reason: Representation
Mortgage Broker: Fiduciary duty to the borrower to get the best loan possible. Packaging the loan to highlight the strentghs of your loan scenario and minimizing the weaknesses.
Direct Lender: Represents the lender.
Reason: Customization
Mortgage Broker: Offers numerous programs from many lenders and investors at very competitive rates.
Direct Lender: Offers a limited number of programs that need to fit "their box."
Reason: Flexibility
Mortgage Broker: A "problem loan" can be moved from one lender to another, while obtaining the best rate available for your situation.
Direct Lender: Once a loan is denied, the borrower must try a different lender.
Reason: Certification
Mortgage Broker: Licensed by the Department … (28 comments)
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real: Lowballing agent commissions and higballing asking prices! - 01/08/07 04:56 PM
Many asked me this year if there is a way to lowball a real estate agents' commission. My answer is very simple, "You get what you pay for!" If you were in need of a doctor and you were about to go into surgery, would you lowball the doctor? If you were about to go on trial and your liberty was at stake, would you lowball a lawyer? The same holds true for the services you receive in your homebuying and/or selling experience! In my opinion...If an agent is quickly willing to drop their commission without hesitation, it tells me this:
1.) The agent is … (3 comments)
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real: Chico,California Housing Market Report For January 2007 - 01/02/07 06:13 PM
Hey Everyone,
Virgil Cole is an awesome Real Estate Agent at Prudential Real Estate in Chico, California and he puts together a comprehensive market report of what has been taking place in the local Chico market over the past few months. He spends alot of time putting together the data and I'm sure that many homeowners and investors in our market will be interested in seeing the results. Feel free to contact either of us if you are looking to purchase or refinance your home. We're here to help you!
Virgil Cole Scott Gormley
Have a great day!
Scott GormleyBroker/OwnerOak Valley Mortgage2006 Chico Assoc. of Realtors … (4 comments)
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real: California Real Estate and Young Couples - 12/24/06 11:42 AM
Last night, I got into a good discussion with some family and friends about how things have changed in Real Estate...Specifically...For Young Couples!
Over the past few years, there have been some MAJOR changes in the Real Estate Market!
Homes across the United States have doubled, tripled and even increased in some parts by 5-600%! I know condos in Southern California that were selling for $150,000 that are now appraising and on the market in the mid $500,00's! A half a million dollars for a 1000sq foot condo! And, the association dues are a couple hundred dollars a month as well! Ouch!
The … (23 comments)
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real: Going to bat for clients! - 12/15/06 05:19 PM
Each and everytime we get a new client at Oak Valley Mortgage or Beach Town Mortgage, we go to bat for our clients! What does that mean? Here's a list of things that you can expect from us...
1.) We look out for YOUR BEST INTERESTS! I.E. What are your goals? What are you trying to acheive with your Real Estate investing or personal finances?
2.) Setting you up to Win the game. That's right, win the game! It does no good to have random offers thrown at you if you wouldn't qualify for them to begin with! So, we study the pitches thrown in … (2 comments)
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real: California Taxes and Insurance - 12/12/06 12:29 AM
The standard rule for estimating monthly property tax and hazard insurance paymentsfor a purchase transaction in the state of California are as follows:Taxes = Purchase price X .0125 / 12Hazard Insurance = Total Loan amount X .0035 / 12.Example 1 - Purchase price = $500,000. Loan amount = $400,000.Taxes = $500,000 X .0125 / 12 = $520.83/moHazard Insurance = $400,000 X .0035 / 12 = $116.67.Another Example (1st and 2nd). Purchase price = $500,000. Loan amounts = $400,0001st and $50,000 2nd.Taxes = $500,000 X .0125 / 12 = $520.83/moHazard Insurance = ($400,000+$50,000) = $450,000 X .0035 / 12 = $131.25/mo
I figured this … (2 comments)
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real: Equal Opportunity Lender - 12/02/06 12:30 AM
Understanding the importance of Equal Opportunity Lending is very important to us in the mortgage industry. It's symbol is much more than an image, which simply represents happy thoughts. Rather, it represents the commitment to not discriminate against our clients and/or potential clients based on race,sex,national origin and a multitude of areas for which people are discriminated against on a day to day basis. Giving EVERYONE the opportunity to purchase a home and participate in the American Dream is what is so great about our country! Where families in many other countries would only dream at the thought of being able to … (2 comments)
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real: Neighbor Disputes - 11/30/06 03:48 PM
It's one of the 10 Commandments, Love thy neighbor...yet across the United States, there are neighbor disputes going on daily. I've seen some interesting stuff over the years. From the basic neighbor that thinks the entire street curb in front of both of their homes is his/hers to boundary lines and cracking foundation disputes over trees.
So...What are the top complaints about neighbors?
1. Noise
2. Property boundaries (obstructed views)
3. Home/Yard maintenance
4. Pets
5. Unruly kids
6. Exterior/landscape design
7. Too many cars/parking
This goes to show you that there is MUCH MORE to consider when showing your clients a home than simply the home itself! Making … (4 comments)
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real: 2007 Conforming Loan Limits-Important Update! - 11/28/06 10:30 AM
Hello Everyone,
I thought that Real Estate Agents,Lenders and consumers would like to know that the OFHEO (Office of Federal Housing Enterprise Oversight) had a News Release on November 28th 2006, which confirmed that the 2007 Conforming Loan Limit for one unit properties would remain at $417,000 for most of the United States. So, what does this mean for homebuyers and homeowners across the United States? Well, the difference between Conforming and Non-Conforming interest rates today is about .375%. On a $417,000 Conforming First Trust Deed Loan, that equates out to a difference of $100/month.
$417,000 Conforming Loan Amount at 5.75% on a 30 year fixed = $2433.50 … (3 comments)
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real: Real Property versus Personal Property~Mobiles and Finance - 11/26/06 02:32 AM
There have been a few times this year that I've come across issues with agents and clients over the distinction between Real Property and Personal Property when it comes to mobile homes. In the eyes of many, mobile homes are just that...homes!
But, there is a clear distinction between a mobile home that is eligible for Real Estate Financing, ie: a home loan, and one that isn't...What is it? Whether the dwelling is PERMANENTLY FIXATED TO A FOUNDATION!
If a bank is going to lend money on a mobile home, the mobile home MUST BE fixated to a foundation, period! Why? It's simple, … (17 comments)
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real: Giving Clients a Shot of Reality! - 11/13/06 12:22 PM
From time to time, I feel like I need to give clients a "shot of reality!" Why? All consumers are out there listening to crazy, unrealistic offers in the media about home loan programs that few often qualify for....and the ones that do, often don't want the product to begin with! Ofcourse, everyone wants the best terms and deal possible on purchasing a home, you would be crazy not to! But, when all consumers feel that they are on a level playing field...It's time for the shot! Otherwise, they become delarious. Like they have the West Nile Virus. Demanding this and demanding that....In … (8 comments)
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real: Counterproductive - 11/08/06 01:45 PM
This morning, I tried to start off the day on a productive note. I received the approval from my investor at 5:00pm last night on a file and went to work on getting all of the "prior to doc" and "prior to funding" conditions knocked out. By 7:30am this morning, I had all of my emails out and responses in with the needed requests in by 9am...a good thing!
There's an old saying, "the early bird catches the worm."
I've learned that it is good to be at first in line on a person's daily agenda, otherwise, it's mid-afternoon and they are in … (2 comments)
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real: What are lenders really looking for? - 11/02/06 10:53 AM
Lenders will initially look at:
Employment
Income
Assets
Some kind of credit
Employment - Employment is a critical part of the mortgage application. Being employed continuously for the past two years is helpful. Being in the same line of work is preferred, since it shows that you have been consistent in that field. There are loan programs out there that DO NOT REQUIRE EMPLOYMENT history, however, the cost of the loan is generally higher, with a higher interest rate and the need for “compensating factors.” Compensating factors would include a large down payment, strong assets such as stocks or cash in the bank … (1 comments)
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real: The "Stated Income" Phenomenon - 11/02/06 10:33 AM
With the influx of home purchases in the late 90's and into the New Century, a phenomenon hit us all. Homes were increasing in value and the banks needed to figure out a way to keep business flowing. Otherwise, it would come close to a schreeching hault, due to the afordability factor. Yup, the ability to afford your car payments,credit cards,personal bank loans and ofcourse...Your Mortgage! In reality, all outgoing payments should be around 38 cents going out in debt for every dollar coming in through income.
Since clients "true incomes" didn't fit the model for meeting the calculated risks of offering a home loan, many just pretended. In … (21 comments)
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real: Back to the Basics - 10/30/06 01:10 PM
In the Real Estate industry, I think it is very easy for everyone to get distracted with all of the "bells and whistles" out there. I believe that many have lost focus of the important things that REALLY DO MATTER. What do our clients care about most? I propose, going back to the basics...
Rule Number 1: Listen to your clients! We have 2 ears and 1 mouth for a reason. Understanding what their goals and objectives are should be our primary objective. All too often, we take our own goals and objectives into account and lose focus on who we are … (0 comments)
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real: Over Your Building Budget? - 10/27/06 12:41 PM
I get phone calls from homebuilders from time to time that are in distraught. They sold a home that they owned. Took that cash and decided to build their own dream home after purchasing the land and putting the plans together. The plans get approved by the planning commission or other local agency that controls the building of homes in their community and they are ready to move forward. After 6 months, they are out on their timeframe, budget and new home. What is one to do? First off, come up with a new gameplan! Investors are out there to help … (4 comments)
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Scott Gormley
Chico,
CA
More about me…
Oak Valley Mortgage-California Home Loans and Refinancing
Cell Phone: (530) 592-8362
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