Are you REALLY ready to buy a home?

Are you REALLY ready to buy a home?

Scenario...
We are out looking at homes and we see a for sale sign being installed. We call and the agent says it will be in the MLS tomorrow. The agent states that you MUST Pre-qualify with THEIR preferred lender. We have the chance to beat everybody to the property.

Are you ready to supply the following information to their preferred lender?

Is it all packaged in one place where it can be sent within the next 5 minutes?

1 - Last 2 to 3 years of Tax Returns
2 - Recent pay stubs proving year to date earnings
3 - A photocopy of the driver's license
4 - Copy of all recent bank statements
5 - Copy of all investment accounts
6 - Front page of your Credit Report with FICO score (may require their own)
7 - Copy of a completed loan application (may require their own but now easy to complete)
This is the basic for most lenders but they may have other requirements.
These will be needed for each person on the loan.

If you are not ready to provide this info ASAP, you may end up in the middle of a competitive bidding situation instead of the first offer.

Which is your choice? Are you REALLY ready to buy a home?
PS, bring your checkbook for a good faith deposit.

Of course, all this assumes that I have already received your Pre-Approval from a Direct Lender. If not, that is your first step. I can provide you with a referral to a top lender here or almost anywhere in the US or Canada.

If you are buying with ALL cash, you will need:
Recent copies of bank statements (dated within 30 days, including your name, institution & the account numbers with enough money for the purchase & closing costs. Some banks will not allow stock accounts.)


Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Agent

RE/MAX By-the-Sea
Formerly with Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm 

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm 

You can view all available San Diego area homes for sale at
http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido & San Diego County.

Ways to Get or Increase Your Downpayment

Ways to Get or Increase Your Downpayment.  

It can be a maze.

1. Ask for a gift from any family member. Most lenders accept gift letters for your down payment.

2. Borrow the money from a family member. Many lenders accept family loans.

3. Borrow the money from a non-family member: employer, friend, Non Profit Group or Government. $8000 Tax Rebate but must be closed by 11/30/09

4. Borrow from your insurance policy.

5. Borrow from your stock account.

6. Borrow from your retirement account. Your home is a great retirement asset. Why not own one as soon as you can. http://www.brokeragentsocial.com/BobPhillips/blog/2981/

7. Borrow from your credit cards. Most lenders do not approve of this unless your down payment is over 20%

8. Get one or more unsecured loans from your bank or credit union.

9. Find a partner to buy with you: friend, relative or investor.

10. Find a co-signer. You and cosigner must qualify.

More Ways to Get or Increase Your Downpayment:

11. Finance or refinance another asset you have:
House, lot, boat, car, jewelry or ? you may be able to use that asset as collateral.

12. Sell an asset: Anything of value! Many people are getting great prices on Internet auction sites, the worlds largest free classifieds.

13. Trade something of value with the seller. One of your assets or your skills. (What do you do for a vocation or hobby that may be of value to the seller)

14. Get a second job. There can be significant tax benefits to an “in home” business, even if you live in a rental.

15. Ask the seller to pay for your down payment, closing costs or even pay off your debits. The presentation of this type of request is critical. You must show why it is in the sellers best interest to do so.

16. Increase the price so the seller feels comfortable paying your costs or debits.

17. Ask the seller to carry some or all of the financing.

18. Spend Less! Do you really need a Starbucks 1-2 times a day when regular coffee will work. Slim down those TV and Cell Phone packages for awhile.

19. It’s all about determining what is REALLY important to you. What are you willing to do to own a home and reap the tax, lifestyle, appreciation and equity benefits you will get?

If you can think of other ways to legally get or increase your downpayment, please let me know.

Dennis Smith  760-436-0087
Taylor Place Real Estate

Rates - APR - Points - Fees: How the Playing Field is Still "Crooked"

Rates - APR - Points - Fees: How the Playing Field is Still "Crooked"

This is a re-blog with permission from Steve Kappre, a Mortgage Planner with Treasury Mortgage


I talked to a client today who was shopping me against some other lenders. I don't blame people, and frankly if I think someone else has a better offer and they are legit, I advise "my client" so and have no hard feelings.

In the scenario today, said client was offered 4.5% with no points. I told him it wasn't possible, but lest I be ignorant, I dropped by this other lender's website. Indeed, the lenders website quoted 4.5% with no points and an APR of 4.878%. The website gave the assumed loan amount and purchase price. So I went and did the math. What did I find out? To make the rate and APR accurate, I had to add 2.25% in points ON TOP OF all of the regular fees (title, appraisal, etc.).

In other words, even though the quote was 4.5% with zero points, the TRUE cost was 4.5%, plus typical closing costs, PLUS 2.25% in additional fees/costs.
Please send me your Goofy Good Fake Faith Estimate!

There are several issues with this scenario

APR is supposed to HELP consumers, not confuse them. Clearly this bank (a large bank at that) is charging hefty fees instead of points. This brings us to our next point ...

Points are tax deductible costs - most other fees are not. Charging high fees in lieu of points is an injustice to the consumer. We see rates quoted with NO POINTS to make them look better to consumers. However the total cost is ultimately higher than a lender that is straight forward, charging the same dollar amount but in the form of points. A loan with the same cost in points (versus fees) is a far better deal, saving a consumer hundreds or thousands in tax deductible costs.

APR is "pliable" - Certain fees are calculated into the APR calculation, others are not. Do not assume lenders don't play with the "names" of fees to artificially lower their APR's. That doesn't seem to be the case in the above example, nonetheless keep this in mind.

Lastly, said bank WOULD NOT give the buyer a good faith estimate without having him apply for a mortgage. OK, not so crazy, but the good faith estimate would not be given for 3 days. And if the bank charged an application fee? That would just be another deceptive way to lure a consumer in and tie them to the bank.

Any lender should be able to offer you a good faith estimate (GFE) in a fairly short amount of time, 24 hours or less, allowing some time for when a lender is very busy. Assuming the lender is honest and accurate with their fees, you should be able to see the true cost of their offered rate. You should be able to see, as in the above scenario, that their rate of 4.5% with no points really has a lender fee of $4,119 (Actual additional cost based on their APR). This same week I had another rate shopper send me a goof good faith estimate with 1% in points and $2,100 in application fees. THIS IS NOT NORMAL or fair to you as a consumer, especially on a purchase loan.
I am not angry for losing business, because I didn't lose business. I am however angry because of the lenders and loan officers that mislead and deceive consumers who are just looking out for themselves by rate shopping. What we often see, is that many consumers that search the world over for the lowest rate, actually end up paying much higher costs via deceptive lenders. Consumers can be blinded by a low rate, not allowing them to see the true cost.

Steve Kappre is a Mortgage Planner with Treasury Mortgage. Steve specializes in
• All areas concerning NJ First-Time Home Buyer Mortgages, grants, down payment assistance, tax credits, and more.
• Reverse Mortgages
• Equity Management strategies for high-end homes and high net worth individuals
Contact Steve Kappre directly at 856-419-3561 or at http://www.stevekappre.com/

End of his Blog at http://activerain.com/blogsview/1266423/rates-apr-points-fees-gfe-s-how-the-playing-field-is-still-crooked-

_________________________________

My comments:  I agree with Steve completely!

This deceit is not just with online lenders although they have a higher percentage of problems. You can even see it at your local bank. A point dressed up as a fee still costs you money and most fees are not deductible.

This is why I use 2 local lenders who I know and trust to get the loan done right and charge REASONABLE fees.  Everybody deserves to make a fair living but not by deceit.

I have worked with both of these local lenders for over 8 years each.  They have both done an outstanding job with my clients which is why I continue recommending them.  Please call me for their contact info.  760-436-0087

Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert
Taylor Place Real Estate
http://www.sandiegohomes4u.com/
dennis@SanDiegoHomes4u.com