Should a Restaurant Menu Show Prices?
Updated Oct. 9, 2013
I don't know about you, but when I go out to a restaurant and want to order a steak, I would like to know the prices.. Often times, you will spot a good deal if the "rib eye" is priced less than say, the New York or Filet.Not only that, prices are good to know if you can get that $28 steak in one restaurant, and the exact...

New Underwriting Guidelines Effective for 2011
Updated Oct. 9, 2013
Part of my job as a California Mortgage Broker is to stay on top of Lender Guidelines. Guidelines are those internal rules, if you will, that underwriters use to see if a submitted loan file will be approved.. All of us in the industry have seen a gradual tightening of the guidelines, making it tougher for individual...

Advice on Escrow Timing when Buying a House
Updated Oct. 9, 2013
Close of Escrow Timing Guidance for California Buyer's Agents.. After having done many purchases from start to finish in 2010, I feel I need to provide this guidance to those Buyer's Agents who have yet to realize that the lending landscape has changed significantly in 2010 relative to 2009 - and more...

The Devil is in the Details to get a Loan Approved
Updated Oct. 9, 2013
Underwriters these days expect perfection in the loan file, so it is imperative that your loan officer be meticulous and oversee every single condition and issue that might pop up from over-zealous underwriters.. Here is just one small example that occurred recently for a refinance. I have a client who is a Senior...

Buy a Home the Smart Way
Updated Oct. 9, 2013
The Smart Home Buyer Program is a voluntary benefit you may receive that can save you thousands of dollars in your Closing Costs when buying a home, anywhere in California.. Here's how it works.. I have partnered with an expert California Real Estate Broker who hast a vast network of Buyer's Agents...

Funny Video about Buying a House
Updated Oct. 24, 2014
Here is one of those funny videos about the absurdity of the new government laws making it near impossible to buy a house.Click here to watch the video.

To Buy, or Not to Buy Down the Rate
Updated Oct. 9, 2013
Many borrowers ask me if they should buy down their interest rate - and many simply think it's a good idea as 4.50% sounds a lot better than 5.0%. With a purchase, their Realtor may even encourage them to take some Seller contributions to buy down the rate. Please be careful with this.. Sometimes it makes sense and...

Transparent Lending - Make Sure You Know What It Is
Updated Oct. 9, 2013
Does your lender practice Transparent Lending?I have been asked what do I mean by Transparent Lending.By Transparent Lending, I literally mean that my clients "see what I see."I am talking about all the interest rates that you would qualify for and their corresponding prices.Here is a good example of what I mean.....

Locking the Rate - What You Need to Know
Updated Oct. 9, 2013
Locking the rate may be the single most important aspect of getting your loan.Until you lock your rate, your interest rate is "floating." You are subject to the volatility of the marketplace.. In today's lending environment, it is not uncommon for lenders to reprice two or three times in one day.. How do you know...

Mortgage Broker or Mortgage Banker - What is the Difference?
Updated Oct. 9, 2013
What's the difference between a Mortgage Broker and a Mortgage Banker?Unless you know the answer to this, it could cost you thousands of dollars, so please consider this required reading.. I used to be a Mortgage Broker, but now I am a Mortgage Banker, so I am in a position to tell you what the difference means...

The Hidden Cost of a "No Point" Loan
Updated Oct. 9, 2013
Borrowing money to buy a home is one thing, but there is a smarter way to go about it that many mortgage brokers, mortgage bankers (banks) don't share with you.. Here is what you need to know.. As a mortgage banker, I will try to make this as simple as possible.. When you buy a house, and you need a loan, you are...

Home Buyers - You NEED a Buyer's Agent
Updated Oct. 9, 2013
Home Buyers - Be very careful if you do NOT have a Buyer's Agent.. The following is a true story.. A potential home buyer approached me last December for advice on rates and how to proceed on buying a home.. Among other things, I stressed that he would be best served by using the services of a dedicated Buyer's...

Shopping for a New Loan? Here's What to Ask Your Loan Officer
Updated Oct. 9, 2013
If you are shopping for a new loan, here is the definitive question you should ask your Loan Officer - especially if he/she is a "Mortgage Banker.". Before I tell you what to ask, you need to understand a little background first, and complicating things is a new law that goes into effect on April 1st.. I'll try to...

Is an FHA Loan a Better Deal than a Conventional (Non-FHA) Loan?
Updated Oct. 9, 2013
In times past, I was of the opinion that FHA loans, while attractive for low FICO score borrowers and/or those with little money for a down payment, were typically more expensive than "Conventional loans.". I have now changed my mind.. For certain scenarios, it now appears FHA loans are the better deal - and I will...

Ridiculous Underwriting Guidelines - A True Story
Updated Oct. 24, 2014
This is a true story about a loan in process. It shows you how ridiculous some of the underwriting guidelines have gotten.. We received an appraisal back, and the good news is that the value came in just as expected. Further, the appraiser wrote that there were no repairs needed, and the house was in good shape, i.e.,...

Confused Over the New Loan Officer Compensation Laws? Here's How to Keep it Simple
Updated Oct. 9, 2013
At the beginning of April, the lending world was turned upside down again when the Feds passed some laws to control and regulate what a Loan Officer can earn.. While perhaps well intentioned to help protect the consumer - it nevertheless has resulted in what is now commonly called "Unintended Consequences.". I feel...

Be VERY Careful with "AS IS" Purchase Contracts
Updated Oct. 9, 2013
If you are shopping for a Home in California and intend on using an FHA loan, make sure the house can qualify too!. Here is another true story.. The borrower was able to qualify just fine, with enough cash for the small down payment of 3.5%, and the minimal closing costs due to the Seller Credit and also the Lender Credit.....