Nov. 21, 2017

Your Offer Has Been Accepted - Now What?

We just wanted to give you an overview of what to expect during your purchase transaction, and this is for people that are using a mortgage loan to get that done. We’ll have another video for people who are doing an all-cash transaction.

So basically, there are three main streams you’re going to be dealing with. One is the process of working with your lender; the other is going to be the process of working with the title company, and the third is going to be what we’re going to do with the property itself.

As far as once your offer gets accepted, the first thing we’re going to have you do is get with your lender as soon as possible. They need to disclose to you the terms of your mortgage, what your interest rate is going to be, what your monthly payment will be, and how much money you’re going to need out-of-pocket to complete the purchase. They’re also going to order the appraisal, which they need to get done just so we can make sure the value that you’re purchasing at is okay from the lender’s point of view.

Number two is the process of getting your earnest money deposit to the title company. That needs to happen within three business days of acceptance. They’re going to cash the check you give them – it can be either personal or cashier’s check; you can also wire funds if that’s more convenient to you – and they’ll hold that there. At the end of the purchase, it’ll be credited towards your down payment and closing cost. If for some reason you can’t, it will be refunded to you.

And the third thing we’re going to be doing is taking a look at the condition of the property. We’re going to order inspections of the property, and we’ll also receive disclosures from both the title company and the sellers about what they know about the condition and features and history of the property, and we’ll just make sure that there are no surprises or red flags – and if there are, we may request repairs or a dollar credit from the seller to do repairs to get that done.

These three processes will be moving forward over the course of between two and four weeks. We generally need at least a couple weeks to close a purchase with a mortgage loan involved. Frequently it takes three or four weeks. Usually, no more than that, unless you’re doing down payment assistance or have some other special circumstances.

We’ll shoot a series of videos going into each week one at a time in more depth and each specific topic in more detail, just in case that’s helpful. But just generally speaking, to give a quick overview, in that first week, you’re going to get your deposit to the title company, you’re going to meet the lender, and you’re going to order the inspections. Usually, it’ll be during the second week when the inspections will take place. We’ll review those inspection reports. We’ll by then have the disclosures from the settlement and the title company; we’ll look at those as well.

At that point, we really should have a good sense if this is still a property you want to buy, especially since around that time we’ll also get the appraisal report back and verify the value. And assuming that we can manage everything we know at that point about value and condition and make any renegotiations on price or terms if need be to compensate for that, from there on out it’s really just a process of getting your loan finally approved by the lender. They’ll send documents over to the title company. You will go to the title company to sign those. They’ll go back to the lender for them to review, and then you’ll bring in the remainder of your down payment closing cost money. The lender will wire your mortgage loan to the title company. Once they have everything in hand, they’ll release that to the county recorder. Once the county recorder gets it done and we have confirmation of that, that’s when you’re the legal owner; that’s when you can get the keys to the property and move in.

So I know that sounded like a lot, and there’s a lot of little steps, but we’re going to break this down to you in very simple terms, week by week, so you have a good overview. Thanks for your time, and if you have any questions, feel free to call, text, or email. We’ll be happy to answer them.

March 24, 2016

Simple Trick to Save Thousands of Dollars on Your Mortgage

Tonight I was reading the new Tony Robbins book, Money: Master the Game, and in one of the chapters on how to accelerate your savings he mentions a strategy for how save potentially hundreds of thousands of dollars of interest payments on your mortgage.  Do you want to hear how to do that?  Um, yes please....

Here's the deal, when you make your monthly mortgage payment you include a second check for the next months principal balance.  Assuming you have a $300,000 mortgage, that extra payment for the principal balance would be between $400 - $800, depending on what year of the loan you are currently in.  Using this strategy you can pay off your mortgage in literally half the time.  That $300,000 house you bought is actually costing you closer to $600,000.  Over the life of a 30 year mortgage fully half all the money you are paying to the bank is for interest.  So imagine how much money you would save were you able to pay of your mortgage in 15 years instead of 30..... it's a lot.

Now, not everyone can afford to make extra payments every month even though it will save you so much money.  However, there is a way to realize a portion of those savings without spending any extra money every month.  Want to hear it?  Great!

All you have to do is pay half of your mortgage payment early on the 15th of the month and the second half on the 1st (your usual payment date).  By making a portion of your payment early there is less principal for the bank to charge you interest on.  With the "magic" of compounding interest the savings you can realize are pretty spectacular, especially considering it costs you nothing more than the price of a second check.

I break it down all pretty like below:

Bi-weekly Mortgage Payment Savings Inforgraphic

If you want to calculate your exact savings for your situation head over HERE for a Bi-Weekly Mortgage Calculator

If you want to learn how else we can save you time and money call/text/email/smoke signal/bat sign etc us!;

Aug. 6, 2015

Are Sacramento Home Prices on the Rise?

The summer is in full swing and things are starting to calm down a bit, so it's the perfect time for yet another Sacramento market update!

It's been a very strong year so far. We've seen an increase in average prices between 7%-9%. The increases have been stronger in the lower and middle price ranges, and there is still a strong intolerance for overpriced homes, especially in the higher price ranges. Generally, you need to be careful about overpricing if you are selling in our current market.

<p">We've seen a significant increase in the number of FHA home buyers, as there are 27.5% more in the month of June alone. This has effectively resulted in a rise in offers over list price, which is great news for sellers. The average time on market is up a bit from 2012 and 2013, but homes are still moving quickly at only 30 days. This may have to do with the fact that inventory is under two months right now, which is the sign of an extreme seller's market!

The Sacramento Market has had a very good year

<p">Despite current low levels on available homes, we have seen a slight increase in listings, as people love to list their homes in June and July. The good news is sales are starting to slow a bit too, which should result in a larger selection of homes for the buyers still looking.

There is more good news for our market. The average price per square foot is up 8% since a year ago at this time and the volume of short sales and REO's is down. This isn't great news for buyers looking to get a great deal, as these homes are down to about 5% of the market each, meaning 90% of available homes aren't distressed sales. As a result, the number of cash transactions has also decreased, as they made up only 16% of all transactions.

If you have any questions about current market conditions, or if you need real estate assistance of any kind, give us a call or shoot us an email. We would love to hear from you!

May 29, 2015

What Do Recent Sacramento Market Conditions Mean for You?

It's that time again! The numbers are in, so we want to give you a quick market update for the Sacramento area!

Basically, we are seeing what we expected to: inventory is increasing, sales activity is up, and prices are gradually appreciating. We could dive into specific data, but what's important is that you get a detailed analysis specific to your home and neighborhood, because the numbers can vary greatly. Inventory is increasing and so are prices in Sacremento

We usually see more inventory put on the market starting in June, before this rise in listings starts to plateau around July. When that time comes, market activity is still very high, but it begins to taper off a bit toward autumn and the end of the year. The one thing we can really focus on is the supply of inventory relative to demand. Supply in the $200K-$300K price range sits at only 1.2 months and supply for the $300K-$400K price range is at 1.5 months, which is fantastic news for homeowners in those price ranges! You have a lot of leverage if you plan on selling in the Sacramento area in the near future!

If you have any questions about specific market conditions in your area, or if you need real estate assistance of any kind, don't hesitate to reach out to us. We can help you make the most of the market, whether you're buying or selling. We would love to hear from you!

April 28, 2015

Are You About to Lose a Great Deal of Purchasing Power?

Today, I want to briefly discuss a topic that will be of great importance for homeowners for years to come: interest rates.

Many people don't realize how lucky we are to have rates as low as they currently are! Over the last few years, we've been within half a percent of all-time historic lows. This is not sustainable, and you certainly can't expect it to last for much longer. In fact, the Fed has hinted many times that they plan to raise rates in the near future. When they do, rates will likely rise to as high as 6%, if not more!

When I first got started in real estate, rates were around 8% and no one complained or even Many people don't realize how lucky we are to have rates where they arethought twice about it. Going further back, rates were as high as 16% in the 1980s, and there was no down-payment assistance! Obviously then, if rates rise to 6% it won't be the end of the world. However, those few points will greatly affect your affordability.

If you plan on making a purchase, you need to act soon! If interest rates rise even .5%, you lose 5% of your purchasing power! If you were shopping for a home for $300,000, now you can only afford a home for $285,000. Meanwhile, there's no sign that appreciation will slow down anytime soon, so you'll lose even more purchasing power! In short, now is the time to get more home for less money, period. Waiting is only going to cost you!

If you have any questions about where rates are heading, or if you need real estate assistance of any kind, don't hesitate to give me a call or shoot me an email. I would love to hear from you!

March 24, 2015

Where's the Sacramento Market Heading?

It's time yet again for another brief update on the state of the Sacramento real estate market! Let's jump right in.

Historically, April is when the inventory of homes in our region (and sales activity) starts to rise more sharply than the rise that comes with the busy first quarter. Indeed, both are happening right now as we head into the second quarter. Additionally, the prices of homes, especially those below $700k, continue to show healthy appreciation and interest rates remain very attractive, as they're close to all-time lows!

We could dive into the numbers all day, but we don't think it would be very helpful. Rather, what's important is for you to get a specific & detailed analysis done on your property. You only have so long to really make the most of an active market, as activity starts to die off at the end of summer and the beginning of fall.

It's crucial to keep an eye on the supply of inventory relative to demand. In the $200K-$300K If you price your home right, get it in good condition and market it well your home sale will be a successrange, we currently have only 1.2 months, while the $300K-$400K range is only 1.5 months! Remember, anything under 3 months of supply is an extremely favorable market to sellers - so there's no better time to list your home if you want to get top dollar and sell quickly. If you price your home well, get it in good condition, and market it well, your home sale will be a success!

If you have any real estate questions, or if you would like our assistance making the most of the market, give us a call or shoot us a quick email. We would love to help you!

Feb. 6, 2015

Another happy client in Elk Grove

Wow, humbling words from a happy client who we helped to sell their Elk Grove home for a great price in one week, stress free.  Now it's on to their new home, with 6 weeks to stay in their home rent free to make the transition smooth and easy for them.

If you would like similar help please do give us a call today.

Posted in Client Testimonial
Jan. 24, 2015

Home Loan Application Tips & Tricks

 Guest Post by Jeff Compton of Comstock Mortgage

Once your loan application is filled out and sent to the lender for review, the first Jeff Compton, Sr Loan Officer with Guild Mortgagething they will look for is your ability to pay back the loan you are requesting. My team and I have a streamlined loan process to help you get your ducks in a row prior to this review. A grand slam loan package is in perfect order and answers all the important questions up front. We know what the lenders are looking for, based on long-term relationships with them and extensive knowledge of guidelines for a multitude of loan programs that are available today.

What is the lender looking for when they review the loan application?

The lender wants to know about your personal financial picture, including savings and credit history and your employment stability. The co-borrower's history is also taken into consideration. The lender also considers the loan amount and appraised value of the home you are looking to purchase. Not every applicant is approved the first time through the process. If the underwriter has any questions or concerns, he or she will require certain conditions be met before they approve the loan. Pre-approval prior to house hunting lets you know exactly how much you are qualified to borrow in advance.

What can I do on my end to make it easier?

Before taking out a home loan it helps to establish a consistent record of paying your bills on time. If you have utility bills that are overdue, bring these up to date. Make sure you are paying credit card installments in a consistent and timely manner.

We can help you evaluate your debt-to-income ratio to determine what mortgage payment will be comfortable and affordable for you on a monthly basis. Aim for having enough savings to cover your down payment, closing costs if necessary, and two months' expenses in case of emergency. We'll help you find the loan program that works for you.

If I just started a new job six months ago, can I still apply for a loan?

A stable employment history is important, but the lender does take human factors into consideration. If you've recently completed college or vocational training, or were released from the military, you have good cause to have a lack of consistent work history. If your profession is seasonal, and gaps in employment are normal in your field, there are loan programs that can work with your situation. If you are a freelancer or do contract work, the lender will look for consistency in income over the last two years. Also, if you recently changed jobs in the same line of work, this would be considered stable, consistent employment.

Consistency is the key word in the lender's mind. But know that lenders have developed many different loan structures to meet the needs of the general public. When your grandparents bought their first home, they probably put 50% down and made a lump sum payment when the note was due. Times have changed, and so have loan programs. My team and I stay on top of current mortgage trends. We monitor rates daily and have a support network of Realtors®, CPAs, Financial Planners and Credit Repair Consultants to lend you additional assistance.

If you have any further questions or would just like to get started please do give me a call/text or shoot me an email.

Jeff Compton
Sr. Loan Officer
Guild Mortgage
Direct Phone/Text 916-765-2900

Jan. 9, 2015

What Is the Real Estate Market Really like in Sacramento?

Today, we recap what we saw in real estate market in the Greater Sacramento area in 2014 and what you can expect to see over the next 12 months.

When asked how the market is doing, we tell people the answer is dependent on three key questions:

  1. Which area?
  2. What kind of property?
  3. What price range? 

There are huge differences in market conditions once all three of those factors are considered. To get an idea of what our market looked like in 2014, we took a look at Central Sacramento, Folsom, Elk Grove, Roseville, and Granite Bay to get a general idea of the trends we've seen.

Broadly, we saw an increase in inventory, ranging anywhere from 12% to 33%. Homes that were on the market sat for a longer time, anywhere from 25% to 45%. Homeowners typically accepted offers 3% to 8% below the original asking price. However, there was an increase in the final selling price, as we saw values rise between 4% and 8%. 


After looking at those numbers, what can we expect in 2015? Well, we don't expect the market to get more forgiving any time soon. In fact, if interest rates increase, homes are going to be more expensive even if prices stay the same. To save yourself time and money moving forward, you need to adopt an effective strategy when entering the market.


Work with a real estate agent to get your home sold for top dollarIf you're trying to sell in the coming year, you don't want to be one of the people who has their home on the market 25% longer and accepts 8% less money. But how can you avoid this fate? For starters, you can work with a real estate professional who has the necessary resources to get your home sold quickly and for top dollar.


Whether you're selling or buying, you want to take a look at each individual property and really assess it correctly. We can help you make the right decisions by giving you access to helpful information. If you have any questions about the market going forward, or would like our assistance making moves in our market, give us a call. We would love to help you accomplish your buying or selling goals!