Rusty Tomoto Seeks Ticket to Inman
July 17th, 2009 categories: Blogging
The end of July and the beginning of August usually mean 2 things:
- Tomatoes in the garden are being to ripen
- Inman Conference is near
But there is something strange going on in my tomato garden this year. There are lots of tomatoes, but none of them are ripe. Are these tomatoes trying to tell me something?
I am a tomato blogger that hung on the vine and never got ripe. I just got sort of rusty. And what, may I ask you, is the point of a rusty tomato?
You can fry those little green ones, although I never have. You can slice those big ripe ones and eat them like they were a slab of watermelon. But when one just hangs and never quite gets ripe, well….what’s the point?
WHY I WOULD LIKE TO ATTEND THE INMAN CONFERENCE
The reason I want to attend the Inman Conference is simple: I want to finally be a ripe tomato. I want my website to bring in a cash crop. All the masters will be there, and I want to pick their brains so I can finally pick my tomatoes.
| Discussion: 1 Comment »
The Top Ten Reasons To Use a Local Mortgage Broker
September 24th, 2008 categories: BUYING, Mortgage Strategies
Is the Internet Always the Smartest Choice?
With the Internet at our fingertips, it is tempting to believe that everything that is purchased via the Internet from a faraway place is cheaper/smarter/better. But when it comes to real estate, that just isn’t the case. And in this market, who doesn’t need every possible advantage when it comes to getting a loan approval?
Here are the TOP TEN reasons that THINKING LOCAL will work in your favor when choosing a mortgage professional:
- TEAMWORK:It is far easier for your Realtor and mortgage professional to bond when they work in the same market, and are familiar with how business is conducted in their neck of the woods. This is huge.
- UNDERSTANDING VALUES:It is an advantage for your mortgage broker to know and understand LOCAL property values. Why? She orders the appraisal from the appraiser, and will be the one discussing appraisal conditions and valuation with the lender.
- LOCAL TESTIMONIALSYou can read testimonials online. Or you can call up someone in your area that has actually used the local mortgage broker and get a direct referral.
- MORTGAGE COMPANY IS A PLACE IN YOUR COMMUNITY, NOT A WEB ADDRESS: You can drive into the parking lot and go into the building. You can look around and get a feel for who they are and how they conduct business. It is nice to know you are supporting a local company, and nice to know who they are.
- MORTGAGE BROKER IS A FACE AND A NEIGHBOR, NOT JUST AN E- MAIL ADDRESS: E-mail has its place. But it will not replace sitting down and having the freedom to ask questions, and crunch numbers with a real live human being.
- ABILITY TO HAND CARRY DOCUMENTS AND PROVIDE WET SIGNATURES: In the brave new world of fully documented loans, LOTS of documentation is required. More than you want to fax. More than you want to e-mail. More than you want to scan. Snail mail? Please.
- MORTGAGE BROKER WILL BE AT THE CLOSING TABLE: Everytime I tell someone I will be there when they sign the final docs I can hear a little sigh of relief. You may not ask a single question, or you may ask 20 questions. But you won’t leave the closing table without understanding how your new mortgage works with your mortgage broker there.
- MORTGAGE BROKER WILL BE THERE AFTER THE LOAN CLOSES: You can’t invite the online company to your house warming, or expect to call them up regarding changes in the local real estate market, and how this impacts your mortgage.
- MORTGAGE BROKER HAS A VESTED INTEREST IN DOING A GOOD JOB NOT ONLY FOR YOU, BUT FOR THE REALTOR AS WELL: Mortgage brokers get business from Realtors. The mortgage broker that is local is interested in impressing the Realtor so he can maintain his ability to get future business from that Realtor. This works in your favor.
- LOCAL KNOWLEDGE OF APPRAISERS, TITLE COMPANIES, INSURANCE AGENTS, INSPECTORS AND CONTRACTORS: What if lender requires flood insurance? Your mortgage broker knows who to call. What if out of area lender selects an appraiser that is not familiar with the area where you are buying your home? Every mortgage person has a stable full of vendors that are needed to quickly solve problems as they arise.
You can take the loan out of the neighborhood. But you can’t take the neighborhood out of the loan. Think local.
This post was written by Janet Guilbault, California Mortgage Expert, and was originally featured on the ActiveRain Real Estate Network.
| Discussion: 4 Comments »
A Rare Window of Opportunity for Jumbo Mortgages in California
May 20th, 2008 categories: JUMBO LOAN
It is amazing that there has not been more media coverage on an opportunity that impacts so many real estate owners here in California. Here is some good news, but know this: IT IS ONLY A LIMITED TIME OFFER, and that is not sales hype. This is a very serious heads up, and something that may cause a mad money rush at the end of the year.
Don’t wait.
Until the end of the year, rates will be far lower for those with mortgages of $417,000 to $729,000 in most of coastal California. This is because these loans temorarily fall into a special category between conforming loans (the least expensive rates) and jumbo loans (the most expensive rates).
| Discussion: 2 Comments »
Refinance Your California Real Estate Before Values Go Any Lower
May 14th, 2008 categories: Declining Values
First, let’s wipe the slate clean. Repeat after me: It isn’t always about RATE. Sometimes its about liquidity. Sometimes its about security. Sometimes its about survival.
Are you guilty of thinking like this when it comes to a future refinance? Mortgage RATES are something I can wrap my arms around. Mortgage RATES are numbers I understand. Mortgage RATES are why have decided to refinance. Therefore, I have decided I will adopt the following mantra:
I will WAIT for the RATE to go down. “Call me when it drops to 5.25%, see ya!”
But there is a silent killer lurking in the background with the ability to blow your refinance to smithereens. It doesn’t attack the rate, so you never see it coming. It attacks liquidity, security, and your ability to survive.
While you were watching the rate, everything else was left exposed and vulnerable.
Month by month, your house became worth a little less as bank owned properties bled the economy and played havoc with property values here in California. You read about it in the newspaper, but figured it could never happen to you.
While you were watching RATES, your equity disappeared.
What does this have to do with a refinance? Everything. You need equity to refinance. If you lose enough equity that the appraised price is close to, or equal to the amount you owe, you just shot yourself in the foot.
Please note the word “appraised value” which is different from “your opinion” of the price or “potential selling price”. Banks do not care about the last two opinions, and are running more than a little scared when it comes to making loans these days. They are equity hungry.
The less equity you have, the more difficult it will be to refinance. Your are probably losing ground as you read this. At lease losing VALUE in your ground.
Strategy: If you NEED to refinance for ANY reason, timing is everything, and the time is NOW. Do not wait for rates to go lower. If property values continue to slide here in California, you could end up without the ability to refinance, without the ability to extract cash that you need, or without the security of a fixed rate mortgage.
Forget timing the rate and start timing the equity. I don’t know about you, but if I’m going to owe more to the bank than my house is worth, I would rather be sitting safely in a 30 year fixed rate with some cash in the bank. This trumps a rate that is .25% lower ANY DAY.
Written by Janet Guilbault, California Mortgage Expert Based Out of the San Francisco Bay Area.
| Discussion: 1 Comment »
Buy Here, Finance Here, At Your Own Risk
November 6th, 2007 categories: Mortgage Strategies
In response to the discussion about Realtors being “encouraged” to use their affiliated lender, I would ask this:
What do you think happens in the Toyota dealership when you are ushered over to the finance department and walk out with a Toyota Motor Credit loan or lease?
That’s right, you have just been referred to the “affiliated lender”.
Does it work to add profit to the dealership?
Of course…especially since you are in an altered state of mind from being under the influence of new car smell.
Is it the best thing for the consumer?
Not by a long shot.
“Buy here, finance here”. That’s what they call it in the auto business (where I spent 20 years of my career). Please, let’s not pretend that the reason real estate companies “encourage” their Realtors to use their in house lender is for the sake of “mortgage broker quality control”. It is another profit center, plain and simple, just like in the Toyota dealership. The more the Realtors use the in house lender, the more money the real estate company makes. Read the rest of this entry »
| Discussion: 3 Comments »
