Life In Wake Forest NC.....

Some home builders are including in their contracts a 1% fee to be paid to them every time the house is sold  for up to 99 years.  The money is nothing more than profit for the builder and is not used for up keep or any type of property improvements.  Lenders are getting keen to this and reviewing contracts very carefully looking for this clause.

If the lender sees this clause in the contract they will likely deny the buyers home loan.  Lenders will be on the hook to try to sell a home with an additional 1% fee everytime the property is sold making it harder to sell in a case of default.  Anything that adds a layer of risk will either cause the lender to adjust the interest rate to reflect that risk or they will simply deny the loan altogether.

Just when a Realtor thought their job was hard enough.  Now you will want to comb through these builder contracts very carefully before assisting your buyer through the process.  I would even recommend a full underwriting approval on all new construction homes to protect your buyer form a possible loan denial.  If the underwriter reviews the contract and the buyers qualifications and approves the file then you would have significantly reduced the likelihood of problems.

If you are in the states of WA, OR, CA or NC we will gladly package a loan without a property address and submit it for underwriting allowing you the peace of mind that the loan shouldn't become an issue. E MAIL or (888) 206-5781 Otherwise ask your favorite trusted lender to do the same. Of course one could take the simpler approach and focus mainly on existing homes.

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It's not who you think!  This video with Edward Pinto (Chief credit officer for Fannie Mae) tells us what happened, who caused our housing crisis and how the new laws being passed will affect the real estate business.  Realtor or lender, if you want to know what the future may look like then watch this video.

Junk fees on a home loan. What a misused term. So many fees are mistakenly classified as home loan junk fees including fees that are bona fide. Mortgage loan fees nationwide amount to roughly 110 billion annually. You may wonder why that figure is so high to do a home loan. 

With each loan that funds there are multiple people working to complete the loan transaction whether the loan is from a bank or a broker. Here is a list of the titles of people who are always involved in each and every home loan:

* a loan processor

* loan officer assistant

* escrow officer

* escrow officer assistant

* title insurance company

* appraiser

* appraisal management company

* underwriter

* underwriting assistant

* lenders account executive

* funder

* doc drawer

* county recorder

* courier

* bank - wiring funds

It amazes me how many banks play games and provide good faith estimates without listing all of the fees associated with a home loan. Little does the consumer know that they make money to cover these fees by giving out higher interest rates. They simply omit the fees to make it look less expensive. However, that higher interest rate can and usually will amount to more money spent on a loan than if the borrower would have paid the fees themselves.

Carlsbad home loans since 1977

First Priority Financial is licensed by the California Department of Real Estate #00654852 Nevin#01366552

(888) 206-5781

Also licensed in Oregon, Washington & North Carolina

*Certain credit and income restrictions apply. Call us for more details.

This is not a guarantee to lend. Equal housing lender.

Junk fees on a home loan. What an ambiguous term. So many fees are mistakenly classified as home loan junk fees including fees that are bona fide. Mortgage loan fees nationwide amount to roughly 110 billion annually. You may wonder why that figure is so high to do a home loan.

With each loan that funds there are multiple people working to complete the loan transaction whether the loan is from a bank or a broker. Here is a list of the titles of people who are always involved in each and every home loan:

* a loan processor

* loan officer assistant

* escrow officer

* title insurance company

* appraiser

* appraisal management company

* underwriter

* underwriting assistant

* lenders account executive

* funder

* doc drawer

* county recorder

* courier

It amazes me how many banks provide good faith estimates without listing all of the fees associated with a home loan. Little does the consumer know that they make money to cover these fees by giving out higher interest rates. That higher rate can amount to more money spent on a loan than if the borrower would have paid the fees themselves.

If you hear your neighbor brag about how they got a no fee loan remember this: A sucker is born every minute in this country and nobody works for free.

California home loans since 1977

First Priority Financial is licensed by the California Department of Real Estate #00654852 Nevin#01366552

2990 Jamacha Road #136 El Cajon CA 92019

(888) 206-5781

Also licensed in Oregon, Washington & North Carolina

*Certain credit and income restrictions apply. Call us for more details.

This is not a guarantee to lend. Equal housing lender.

Using this method a thief can make it look as if you were never broken into. They can get in, take what they want and reset the latch when they close the door. 

How many of you leave your car unlocked in the garage? How many of you have a garage that leads into your home?

A garage break in may be more than petty theft. It could be someone wanting to cause you physical harm or wanting to take a child.  It may sound extreme but if someone can get in to a home their reasons for doing so can be varied.

Next time you're in the market for a garage door get one without windows or at least spray window frost on them so a thief can't see the latch.  Most home improvement stores carry this in the paint section.

Lock the door from your garage that leads into your home.

Set your car alarm even though it is parked in the garage.

You can't really stop a motivated thief but you can seriously inconvenience them!

Serving California since 1977

First Priority Financial is licensed by the California Department of Real Estate #00654852 Nevin#01366552

3110 Camino Del Rio #311 San Diego CA 92108

(888) 206-5781

Also licensed in Oregon, Washington & North Carolina

Lending money and assembling a loan file to get the money are two separate things.  People who assemble your loan file are all called "loan officers." You can hire and pay the loan officer at the bank or hire an independent loan officer (mortgage broker) to complete this task for you.

Example: Take your car to the dealer (bank) or to an independent mechanic (broker).

Banks lend their money and only offer loan programs that they have.  They do not shop various lenders and do not have the flexibility to go to a diffferent bank to get money if your loan is denied.

Bankers are loan officers who work for mortgage companies that offer mortgage loan products only. Bankers can only offer their loan products and cannot shop your loan with other lenders unless they are also licensed as a mortgage broker.

Mortgage  brokers can go to just about any bank or mortgage company allowing them to find the best terms. Brokers are required to meet federal and state licensing requirements in order to have the abllity to assemble (originate) a mortgage loan file.

Who has the best rates?  Brokers do.  Banks offer lower rates (wholesale rates) to the broker in an attempt to get their business. The cost of originating your loan is the difference.  Some banks show all of the fees but mainly banks will offer a higher rate with reduced fees.  To read more on this subject click here.

I am both a banker and a broker so there is no incentive for me to promote one over another. You can get great service or lousy service from any of the above.  It really depends on the individual loan officer and how they handle their business.

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Serving California since 1977

First Priority Financial is licensed by the California Department of Real Estate #00654852 Nevin#01366552

3110 Camino Del Rio #311 San Diego CA 92108

(888) 206-5781

Also licensed in Oregon, Washington & North Carolina

Fannie Mae and Freddie Mac have announced some changes in interest only amortization loans.
These changes are being made to 5 year and 3 year fixed adjustable rate mortgages (ARM).

The following interest only products are no longer eligible for delivery to Fannie Mae:
Cash out refinances
Investment properties
2 to 4 unit properties

The following transactions are still eligible:
1 unit purchases
Rate and term refinances (no cash out)

New Requirements:

Must be a primary residence or second home
Maximum loan to value and combined loan to value of 70%
Minimum credit score of 720
The borrower(s) must have a minimum of 24 months payments saved in liquid assets (Reserves)

Contact us before you start the home buying process because many loan programs are modified with little notice.

Click logo to visit our website

Serving California since 1977

First Priority Financial is licensed by the California Department of Real Estate #00654852 Nevin#01366552

3110 Camino Del Rio #311 San Diego CA 92108

(888) 206-5781

Also licensed in Oregon, Washington & North Carolina

The $8,000 first time home buyer tax credit will expire April 30th 2010. However if you are a service member serving overseas during this time  you may still take advantage of this benefit because this law will extend your opportunity until April 30, 2011.

Any "Service member" serving at least 90 days between January 2009 and April 30, 2010 is eligible for the one year extension. 

Exception to this rule is any service member forced to return to the United States due to medical reasons with less than 90 days during the dates above is still eligible.

Service member is defined as Armed Forces, US Foreign Service or Intelligence Community.

The service member must be in contract by April 30, 2011 and close escrow by June 30, 2011.  To view the information from the IRS website CLICK HERE To view current mortgage rates and loan fees visit our website. 

You can get a full quote and do not have to leave us any of your contact info.

VA, FHA, USDA, Conventional and Jumbo loans

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Since 1977

First Priority Financial is licensed by the California Department of Real Estate #00654852 Nevin#01366552

3110 Camino Del Rio #311 San Diego CA 92108

(888) 206-5781

Also licensed in Oregon, Washington & North Carolina

The demand for corporate debt and higher yields is luring away buyers of treasuries.  The purchase and sale of US Treasuries affect smortgage rates.  When treasuries are bought, rates stay stable or drop.  When they are sold rates increase.  There was heavy selling today causing the mortgage markets to respond by increasing interest rates.

I recommend that you lock your loans immediately.  Floating is way too risky as investors scramble to find higher returns on their investments.  Enonomic recovery are part of the reason and investors preparing for higher taxes in response to health care legislation that passed.  Investors are not buying the statement that the deficit will go down.  Wall street expects higher taxes to fund the health care reform.  Hard to determine if this caused the run up in rates today.

Tomorrow the 7 year note goes on sale but nobody expects many buyers.  We may see aother sell off tomorrow causing mortgage rates to rise.  The duration of this will be determined on te economic outlook.  If investors believe the economy is improving they will buy socks.  Mortgages are attractive in bear markets due to their conservative nature.

Lock 'em if you got  'em.

Lie: A fiction; a fable; an untruth.

I’ve been told to lie to my clients, or else.  If I don’t lie, I  will be asked to pay thousands of dollars.  Lying is in the best interest of the consumer and is there to protect them. All honest mortgage loan officers must now lie about their loan charges.

The Mortgage Disclosure Improvement Act or MDIA requires that we include "seller transfer tax" and the “sellers cost” of owners policy for title insurance in the annual percentage rate (APR) on the truth in lending disclosure and new good faith estimate, otherwise we have to pay for them. 

Some escrow companies refuse to close escrow unless seller charges are included in the buyers APR. Lenders and escrow companies define APR fees differently.  Therefore, to meet the requirements of the new policies imposed by the Fed I will lie to my clients on every truth in lending disclosure I provide by including seller fees that they don't really have to pay. 

The process of shopping a mortgage was confusing enough.  These new requirements make it near impossible to shop a mortgage loan. Trust is strained between a new client and their loan professional by these inconsistencies.  It's absurd to a client that we show them paying a fee they won't pay.

I applaud the Fed on the new good faith estimate.  It’s so convenient and easy to use with no signature required by either party. Hmm.. how does one know if the customer ever saw it?  The Fed trusts us to provide a good faith estimate without proof of receipt.  However they do not trust us to properly estimate fees.

It must be easy for predatory lenders to verbally quote low fees, provide a confusing truth in lending and then slip a higher than initially quoted good faith estimate into the file for underwriting. The customer is still victim to the old “bait and switch” tactics that the new good faith estimate was created to prevent.

The opinions expressed in this blog are not necessarily those of First Priority Financial Inc.