With over 90% of home buyers searching online for a new home your home must make a great first impression. The first impression is a lasting impression!  In a buyers market sellers compete with sellers.  If buyers are not impressed what they see online they will move on to the next listing. Ready, Set, Stage! works with you and your Realtor to put your home on the “must see” list for today’s home buyers. We offer a marketing plan and photos to assist with the sale of your home.

1. Tomatoes in the garden are being to ripen
2. 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.

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:

1. 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. 
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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. 
9. 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.
10. 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.

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).

This “gift” to California is a part of a mortgage stimulus package and allows these loans to be re-sold on the secondary market the same way conforming loans are sold. Why do loans that can be re-sold carry lower rates? Because otherwise, lenders  must keep the loans on the books, thus eliminating the ability to loan the money again.  Lenders must also assume the risk of holding the mortgage. Think of it as turning the inventory.

Now for the good part: what does this rare bit of good news do for you?

Easy: this may be the cheapest mortgage money available for many years to come for those with jumbo mortgages. If you have been waiting to buy until prices go lower, stop waiting. Remember your overall cost is a combination of what you pay for the house, and what you pay for the money. This money is cheap enough that you would be wise to accept that real estate values may drop slightly after buy.

Oh well. Keep staring at that rate which will start with a 5 or a 6 and remember how much the overall cost goes up if you have a rate that starts with a 7 or an 8.

Of note: These loans will require you fully document you assets and income (no stated income loans). They are available as  30 year fixed rate loans and adjustable rate mortgages with fixed interest terms.   Second loans or equitylines are allowed behind these loans.

You may use these loans to refinance or to purchase. They are commonly referred to within the industry as “jumbo agency loans” or “temporary conforming” loans.

Only certain counties carry the maximum limit of $729,000.  To check your county click here

For additional information, call me directly at 925-627-2586.

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.

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.

Excuse me, but I don’t think the profitability of the real estate company should be the criteria for anyone making a decision on where obtain their mortgage. As I have said many times before, what is best for the client is always what is best for us.

Okay, PROFIT is not an evil word, and many people who buy a big ticket item (like a car or a house), welcome being referred to the in house finance person. They are too scared or too lazy to go out in the world and compare mortgages, mortgage brokers, and closing costs.

That’s okay.

But just like buying a $5 coke in the ball park, convenience carries a higher COST. Sorry, but that’s just economics 101.

Now when you’re thirsty at the ball park, what do you care if the machine right outside the park will spit out a coke for a buck? You don’t.

But when you are financing something that costs a million bucks, (or even a $50,000 Lexus) maybe, just maybe, it isn’t the best idea to pay for convenience. At least you should CHECK OUT the other financing options out there.

Very small differences in mortgages and finance plans can add up to thousands of dollars in costs that could be avoided altogether. Or, maybe the in house finance plan IS the best one. But you’ll never know for sure until you compare.

While in the car business, it never failed to amaze me the time, intensity, and research that people put into getting the best price on the car. But for financing, (after being exhausted from the negotiations with the “desk”) they would go straight into the finance office and in 3 minutes sign the worst car lease in the world.

No thought was given to shopping for the financing, just sign and “get it over with”.

Is it a conflict of interest to have a buy here, finance here operation? If it is, there would be no GMAC, Toyota Motor Credit, or BMW financial. But consumers need to understand that when you buy a car, or buy a house, you are BUYING SOMETHING ELSE. You are also buying the FINANCING.

Would you buy the first house the Realtor showed you? Would you go into one dealership and pay full price for the first car you saw? If not, then consider in house financing for what it is…. a convenience to you and another source of profit to the real estate company. Check out other options, always.

PS Have you ever wondered why mortgage companies don’t have in house real estate operations? I have. I also wonder why so many Realtors rebel against using the in house lenders and worry what the management of the office thinks?…(”pssssst, Janet! I could get in alot of trouble with the owners for giving you this loan, but here’s the phone number. Could you call them right away?”)