folsom mortgage: Zero Cash = Zero House - 03/11/10 10:09 AM
Zero Cash = Zero House
I'm seeing an odd phenomenon of late.  I talk to folks interested in mortgage financing and ask, "Do you have funds available for a downpayment and the closing costs?"  Increasingly, the answer is, "No."  I wonder where they got the idea that they can buy a home with no available cash.  Granted, USDA Rural and VA offer 100% financing but these programs benefit a very limited amount of buyers.
Okay, you counter, what about seller concessions for costs?  With multiple offers on listings, sellers are not very motivated to give concessions.  Realtors don't want to ask … (5 comments)

folsom mortgage: A Lesson about Hazard Insurance in California - 12/07/09 06:53 AM

A Lesson about Hazard Insurance in California
If you’re a home buyer getting some quotes for hazard insurance, you look for the lowest possible insurance premium, right?
I used to think so until I got a thorough insurance lesson from a very smart Sacramento insurance agent. A miscalculation on hazard insurance could end up being a BIG and unpleasant surprise in a much higher than expected annual premium to the homebuyer to get the actual coverage they need.
Forego the increase and a homeowner is in a precarious place of not having enough coverage. Here are some special items to consider when … (6 comments)

folsom mortgage: Do you really need all this personal information for my mortgage? - 10/16/09 08:54 AM
As a Roseville mortgage broker, I get this question a lot from home buyers, especially ones who have applied for mortgages in the past.  I coach buyers (new and experienced) that the current lending environment and process is much different today.  Lenders/investors are requiring much more information from borrowers than in times past.  This is very frustrating to many buyers. It doesn't make sense, especially to the ones that tell me they pay all their bills on time.
 
Pay stubs, two months of bank statements with all of the pages (even if they’re blank?), Federal taxes, divorce papers, copies of Driver’s … (6 comments)

folsom mortgage: You Choose the Title and Escrow Provider for Your El Dorado Hills Mortgage - 10/13/09 05:22 PM
You Choose the Title and Escrow Provider for Your El Dorado Hills Mortgage
 
In 2009, the Governator signed AB 957, also called the “The Buyer’s Choice Act.”
 
With that signature, buyers of residential, 1-4 unit foreclosed properties in California could select their own title and escrow companies.  Previously, banks and their representatives required REO property buyers to use a particular title or escrow company.  Some even went so far as to not entertain offers from buyers who requested to use a different title and escrow company.  If you think this sounds unethical, unfair and detrimental to competition, you’re right!  The consumer … (6 comments)

folsom mortgage: Is Your Client Being Ignored by Their Lender? - 05/15/09 10:18 AM
I have clients tell me that some of my competitors wouldn’t return their calls.  Some went so far as to take the client’s application but seemed to fall off the planet after that.  Heard similar stories from your buyers?
 
It doesn’t seem logical that someone wanting to make money wouldn’t respond to potential customers.  But often, making money is exactly the problem.  Some mortgage folks are in the business to make a quick commission on as many loans as they can.  If a customer is not quite ready to move forward, has a loan scenario that will be time-consuming to … (0 comments)

folsom mortgage: You Really Don't Want that 3% Rate for Your El Dorado Hills Mortgage - 04/13/09 05:53 PM
You’ve probably heard the ads.  It’s often for one of the major banks and the commercials go something like this:  “30 year mortgage just 3%!”  A few of my customers have heard these ads and asked me to match the rate for their El Dorado Hills mortgage.  I could but I don’t.  Here’s why…
 
What the banks don’t advertise is that you can only get that screamin’ low rate if you are willing to pay “discount points”.  One discount point equals one per cent of the loan amount.  I saw a quote last week that included 2 ½ discount points … (0 comments)

folsom mortgage: Truth in Lending Works Both Ways - 02/28/09 05:36 AM
There's a form I have to give to every person who gives me an application for a mortgage.  In my business lingo it's called a "TIL" for Truth in Lending.  It provides detailed information on a loan quote so the customer can be well informed.
But there is another kind of "Truth in Lending" and it involves the applicant's responsibility to provide truthful information on their application.
I recently received an application from a customer for a home purchase.  There were a few items on it that didn't seem quite right, however.  I began to do some research.  The borrower's stated … (0 comments)