folsom mortgage: 1/2% Down Payment Option Now Available for First-Time Homebuyers! - 03/07/12 01:15 PM
If you are considering buying your first home, you may be able to do so with only a ½% down payment!
FHA requires a 3.5% investment of your own funds when using FHA financing for a home purchase.  But, beginning March 1, 2012, the California Homebuyer's Downpayment Assistance Program (CHDAP) is offering downpayment assistance of up to 3% of the purchase price or appraised value, whichever is lower.  That means you would only need ½% of your own funds to purchase a home!
Are you eligible for 100% financing through VA?  Searching for properties in an area eligible for 100% USDA … (3 comments)

folsom mortgage: “No Closing Costs” Loan? Think Again. - 01/23/12 12:16 PM
“No Closing Costs” Loan?  Think Again.
I recently had two clients opt to use an online lender rather than me for their financing.  The reason?  They believed they were going to get a VERY low interest rate AND pay “no closing costs”.  That’s right.  Gonna buy a home with nothing more out of pocket than the down payment!
I explain to clients that, with extremely rare exceptions, the only way to avoid or minimize closing costs is through the lender credit associated with the interest rate.  The higher the rate, the higher the borrower’s credit for closing costs. 
Face it—the title … (5 comments)

folsom mortgage: What It REALLY Costs to Get a Mortgage - 11/28/11 06:29 AM
What It REALLY Costs to Get a Mortgage
Recently, I have had a few clients be shocked at closing cost quotes I have given them.  On each, I went back and checked my numbers very carefully and, yes, the quotes were right!  The client just didn’t realize that there were many costs associated with a home purchase! 
No one wants any unpleasant surprises that involve money!  So, here is some information on closing costs to help you better prepare for a home purchase.
In addition to a down payment, home buyers should anticipate these possible costs:
Home Inspection
An inspector will … (3 comments)

folsom mortgage: Greece, the Fed and Inflation—Oh, My! How Do We Get Mortgage Interest Rates? - 11/03/11 05:57 AM
Greece, the Fed and Inflation—Oh, My! How Do We Get Mortgage Interest Rates?
First, here’s how we don’t:
There are three common misconceptions about how mortgage rates are determined: 1) solely by each lender, 2) by the Federal Reserve and/or 3) based on the 10-Year Treasury Note.  There are still mortgage professionals claiming rates are based on the 10-Year Note.  Wrong!
Now, here’s how we do:
While there are several generic interest rate trend indicators, rates can be influenced at any given moment by at numerous different variables in the market and with each individual loan approval scenario. The mortgage … (4 comments)

folsom mortgage: Understanding a Mortgage Payment - 10/13/11 04:33 PM
Understanding a Mortgage Payment
As you go thorough the Folsom mortgage process, you’ll hear a series of terms and acronyms related to your mortgage payment.  Let’s look at what they mean.
Your mortgage payment is generally due on the first of the month, and most lenders start assessing late fees on the 15th. It is extremely important not to make a mortgage payment late.
When you receive a mortgage bill, there will be a few numbers that add up to your total payment:
This is the portion that goes towards paying down your balance on your Folsom mortgage.
The interest … (4 comments)

folsom mortgage: Every First-Time Home Buyer Needs a Team! - 10/12/11 07:03 PM
Every First-Time Home Buyer Needs a Team!
A Sacramento home purchase is literally a team sport since there are so many tasks, important timelines, documents and responsibilities that all need special care and attention. It's important that every Sacramento first-time home buyer have a team they can trust and that the individual players have the ability to effectively communicate and execute  important tasks together.
Real Estate Agent
A Realtor® is a licensed agent that belongs to the National Association of Realtors®, which means they are pledged to a strict Code of Ethics and Standards of Practice.

folsom mortgage: Do I Need to Sell My Home before I Can Qualify for a New Mortgage on Another Property? - 10/10/11 02:10 PM
Do I Need to Sell My Home before I Can Qualify for a New Mortgage on Another Property?
As a Roseville mortgage broker, I see a few home buyers qualify for a mortgage on a new home while still living in their primary residence.  Some want to buy a larger or smaller home, maintaining their current home as a rental.  A few are relocation from out of the area and want to keep their current home as a rental.
So, what is the answer to the question?
“It depends.”
What if I rent my current property?
Then … (5 comments)

folsom mortgage: How a Mortgage Broker Works for You! - 08/18/11 05:27 PM
How a Sacramento Mortgage Broker Works for You!
Many Sacramento home buyers and owners automatically think of banks when they need a purchase or refinance residential home loan.  Mortgage Brokers, however, can often provide a wider variety of loan options at a better cost.  So, how does a Sacramento mortgage broker do this?
It helps to understand that there are two main channels for Sacramento mortgage financing today.  Retail, the lenders the public can access directly (like banks and credit unions), and wholesale lenders, those lenders available via a third party (a mortgage broker).  Retail lenders usually offer only their own loan programs; a … (0 comments)

folsom mortgage: Buyer Beware: The Underwriter May Be Googling You! - 08/18/11 10:22 AM

Buyer Beware: The Underwriter May Be Googling You!
I just attended a refresher training on mortgage fraud.  Mortgage fraud is very high here in California and, as a Sacramento Mortgage Broker, I have to keep up on the latest ploys. I have had three fraud attempts cross my desk this year.
Underwriters are keeping up on the ploys, too.
When your loan package is submitted to a lender, assume that the Underwriter is going to use Google to confirm information on your application.  For example,
Does your employer really exist? Does your employer’s address match your application? Does your employer have a physical … (4 comments)

folsom mortgage: Folsom Schools - 08/13/11 04:32 PM
Folsom Schools
The Folsom Cordova Unified School District has published its 2011-2012 calendar and events calendar.  Be ready for the new school year with the Parent Handbook and the Student Conduct Code.
The District has new immunization rules for students beginning this school year. 
FCUSD has a K-8 Charter School.  There is even a preschool program!
Are you new to Folsom and unsure what schools your children should attend?  Home shopping in Folsom?  Check out the street directory to find out.  Learn more about the schools by reading the School Accountability Report Card.
The FCUSD Web … (0 comments)

folsom mortgage: Remember that Kid in Your Class that Kept You from Recess? - 07/05/11 07:27 PM
I'm guessing that nearly everyone has some elementary school memory of a trouble making kid in their class.  At some point during a school day, this kid's behavior got so bad that the teacher announced that the entire class would not have recess.  And so it was that 29 kids who behaved fine were punished for one that didn't.  (Perhaps the angry classmates were supposed to exert some peer pressure on the wayward classmate?  I never did quite understand that part!)
Fast forward to 2011 and we find that those who don't behave can still make headaches for people who do.

folsom mortgage: Waiting to Buy a Home May Not $ave You Any $ - 02/05/11 04:47 PM
Waiting to Buy a Home May Not $ave You Any $
Are you holding off on buying Sacramento real estate because you believe that property prices will continue to drop?  Think the payment will be lower the longer you wait?
Let's look at an example.  While I can provide financing on homes throughout California, I am located in the Sacramento area and will use this area as my example.
Say you buy right now, getting a $200,000,t 4.75%, 30-year fixed, Sacramento mortgage.  Your monthly principal and interest payment would look like this:

Interest rates have been extremely low lately. Many industry experts, however, believe that the low rates we … (12 comments)

folsom mortgage: How Much Down Payment Money Do I Need for a Mortgage? - 01/01/11 03:05 PM
How Much Down Payment Money Do I Need for a Mortgage?
As a Sacramento mortgage broker, I get asked this question a lot during the prequalification process.
First, what is a down payment?  It's a percentage of the purchase price which is paid at the time the home is purchased. 
Here is a helpful list of how much you can finance with each of these loan products: 
Veteran's Administration (VA) loans:  up to 100% financing* U. S. Department of Agriculture (USDA) loans: up to 100% financing* Specific rural areas; a list is also available Income restrictions on eligibility Federal Housing Administration (FHA) … (4 comments)

folsom mortgage: How to Choose a Power of Attorney for Your Signing - 12/24/10 03:11 PM

How to Choose a Power of Attorney for Your Signing
I recently had a Sacramento home purchase deal that was delayed by the lender's requirement for a second appraisal.  As we neared the close of escrow date, I got the following email from the buyers' agent:
"Hey, Ed!  Are we going to close this by the 27th?  The buyers are leaving the country for a month-long vacation beginning on the 29th."
The lender was not able to get the docs to escrow until the day after the buyers' departed.
So, when buyers are not available to sign, is the only option … (2 comments)

folsom mortgage: Don’t Make Vacation Plans When Buying a Home! - 10/26/10 11:37 AM
Don’t Make Vacation Plans When Buying a Home!
It seems straightforward enough.  Your sales contract says that your home purchase must close by (date) so you should be moved and ready for a vacation about a week later.  After the stress of a move, a long, relaxing vacation sounds wonderful, right?
As a Roseville Mortgage Broker, I've seen many home purchase transactions not close on time.  The close of escrow may end up being during your scheduled vacation, leaving you to lose money by changing your vacation plans, beg the seller for an extension to close after you return or try to … (3 comments)

folsom mortgage: Go to the Drug Store after Getting into Contract on a Home! - 10/26/10 09:29 AM
As a veteran of several "normal" purchase transactions in this market, I recommend that all buyers make a trip to their local drug store upon entering into a purchase agreement!
You will need to buy:
Alleve (for headaches) TUMS (for upset stomach) Stress ball (probably in the office supply section) Lavender infuser (for calming, probably in the housewares section) Audio CDs for relaxation and sleep (over by the videos) And on your way home, you might want to stop by the video store to rent a few comedies to take your mind off of the aggravation the lender is going to cause!

folsom mortgage: The Myth of Separate Credit on FHA Loans - 10/18/10 02:38 PM

The Myth of Separate Credit on FHA Loans
Some married couples here in Sacramento elect to maintain completely separate bank accounts, assets and debts.  Unfortunately, some think this means that when one spouse wants to buy a home that the other spouse's credit is not considered.
On a Sacramento FHA loan, this is often not the case. A credit report is run on the non-borrowing spouse and the spouse's debts are included with the borrower's debts.
This is no big deal if your spouse has clean credit and not much debt.  But what if they don't?  Some couples maintain separate finances specifically because … (1 comments)

folsom mortgage: Mortgage Broker or Bank Loan Officer--What's the Difference? - 07/17/10 01:43 PM

Mortgage Broker or Bank Loan Officer--What's the Difference?
When you are home shopping in Roseville, California, you can get bombarded by mortgage people wanting to handle the financing for you. 
If you visit a new home subdivision, you may hear that you have to use their approved loan person.  That's not true nor is it ethical. 
Put an offer in on a foreclosed property and you might be told you have to get pre-qualified with a certain lender, then get pressured to use that same lender if your offer is accepted.
After you submit a loan application to one lender, you … (5 comments)

folsom mortgage: The Interest Rate on Your Roseville Mortgage Is the Least of Your Concerns! - 05/18/10 02:14 PM
The Interest Rate on Your Roseville Mortgage Is the Least of Your Concerns!
Perhaps it is all of those car commercials advertising 0% financing.  Or perhaps it is the mortgage crooks on the radio touting mortgage rates under 4%.  Whatever the reason, I'll get Roseville mortgage clients whose main concern is getting a low interest rate on their home loan.
Little do they know how unimportant that is in the current market!
First off, slight increases in interest rate often translate to very small increases in your monthly payment.
But that's not the main issue.
The issue before we talk about rate is:  … (1 comments)

folsom mortgage: 95% Conventional Financing Back for California! - 03/25/10 07:41 AM
Remember when you could get 95% Conventional financing in California?  Seems like a long time ago, doesn't it?
The reason it ended was because no private mortgage insurance companies would write MI above 90%.  This was one of the ways they chose to minimize their losses in The Golden State.
Unless a borrower qualified for USDA Rural or VA, they needed 10% down for Conventional financing.  Without the 10%, FHA remained the only loan option.
Now 95% LTV Conventional is back!  There is a minimum credit score requirement of 740 and the maximum loan amount is $417,000.  Only SFRs and detached … (0 comments)