La Jolla Real Estate Blog: October 2009

The Los Angeles Times and California Association of Realtors are reporting that credit account disputes on your credit report could stall mortgage applications!  For more information read below:

Some consumers with exceptional credit reports and high FICO scores are being denied mortgages by Fannie Mae's automated underwriting system because there is a notation in the credit report that the consumer has disputed an item.

Under the Fair Credit Reporting Act, consumers are guaranteed the right to dispute inaccurate information on any account in their credit files.  Once a consumer disputes an item in their credit report, a notation to this effect is made in the file.  Until the notation is removed, most credit-scoring system generally will not factor the disputed item into the computation of the consumer's score.

However, with the recent surge in companies claiming to "clean up" and "erase" blemishes on consumers' credit reports, some lenders are finding that these credit companies are disputing accurate, but negative items, hoping the consumer will qualify for a loan before the dispute is resolved.

Applications that are denied through Fannie Mae's automated underwriting system, which is used by virtually all lenders doing business with Fannie Mae, are sent back to the lender for manual underwriting.  It is then up to the lender to determine and document whether the disputed information is accurate and underwrite the borrower's credit accordingly.

Fannie Mae, however, says it is reviewing its policy, so maybe there's a chance for a change.  In the meantime, you might ask your lender what their policy is toward credit disputes.

 

 

All Hallows' Eve in the Lakes Region Home Market

Click on the pictures for some true terror...

This time of year you tend to see a lot of ghosts, goblins, ghouls, and witches on the streets of the Lakes Region of NH. There are also a lot of haunted houses and scary mansions with dark and dusty dungeons full of cobwebs, musty smells, and sinister shadows. It kind of reminds me of Halloween, but I am talking about real estate and the buyers, sellers, and agents involved in this frightening business.

We find buyers coming to the Halloween home buying party with many different costumes on. Sometimes they try to hide their true identity, but most of the time their costumes reflect who they really are. One popular costume this holiday season is that of the outlaw legend Jesse James. Cowboy outfits have always been popular for kids and buyers, but this year they are focusing in on one of the greatest robbers ever. Most of these buyers are from south of the border (the flatlands) and I think that the popularity is a result of reading too many articles in the Tombstone Gazette about people stealing property all over the country. While there are some great deals out there, these outlaws need to learn that they can't steal everything.

It seems that the number one outfit is the old fashioned ghost costume. Buyers this year usually materialize right before your very eyes and then disappear just as quickly like mist on Lake Winnipesaukee early in the morning. Equally as popular this year is the costume of the NFL great, Brett Favre. I'm not just talking about a cheese head Green Bay Packer uniform. It could be a New York Jets or Minnesota Viking uniform or combination thereof. He can't make up his mind if he really wants to play or for whom. Buyers this year have the same problem deciding what and if they want to buy which explains the rising popularity of this scary get-up.

Sellers, to our dismay, often dress up as riverboat gamblers thinking they can bluff their way to a higher sales price with poker faces and sly grins. Many don't realize until it is too late that the buyers hold the best cards right now. The morbid result is another bludgeoned deal to be off hauled to the cemetery. I could say some sellers dress up as ghouls or witches, but that wouldn't be nice! Fortunately, there are other sellers dressed up as princes, princesses, damsels in distress, or Monty Hall saying "Let's Make a Deal".

Like buyers, real estate agents have gravitated toward the ghost costume this season. Many sellers unfortunately have unknowingly listed their property with one of these phantom agents. Their picture in the company brochure looked worldly and real enough, but it seems that many agents are caught in that eerie netherworld between the living and dead. Half in the business and half out. Although I didn't believe in ghosts before this year, I visited many of the dark, foreboding, and genuinely haunted real estate offices in the area and saw the empty, deserted desks of agents departed and felt the overwhelming odor of dead deals and expired listings. Really spooky.

You might also see some new agents dressed as babies and some well seasoned ones as the old standby Father Time. There are a few agents dressed as medicine men or sorcerers. But the ones that are likely to win the top prizes for the best costumes are the many strong agents who are out there every day as Fairy Godmothers or Super Heroes fighting the darks forces on All Hallows' Eve. It may take a while for them to be recognized. It usually occurs after a long, persistent battle through dark times that culminates with a home sale to a very nice lady dressed as Little Red Riding Hood.

And finally, just remember that the cold feeling you get in your parlor is probably just a drafty window, that the banging sounds on the middle of the night is probably air in your hot water pipes, and that the blood curdling moaning you hear in the basement is probably your spouse lamenting about the 673 days your home has been for sale! Have faith though, Christmas is coming. That's another holiday entirely and you know, I still believe in Santa Claus. Do you?

Read It Here First! Tax Credit Enhanced AND Extended!

As reported by FOX 12 Oregon

WASHINGTON -- Senators agreed Wednesday to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers.

 The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November.

 Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev.

 The tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, said a congressional aide, who spoke on condition of anonymity because he was not authorized to publicly discuss the deal.

 Senators were still negotiating the expansion of a separate tax credit that lets money-losing businesses get refunds for taxes paid in previous years, providing them with an immediate source of cash.

 Senators in both political parties were hoping to add both tax provisions to a bill that would give people running out of unemployment insurance benefits up to 20 more weeks of federal aid. The Senate could vote on the overall bill as early as Thursday, but lawmakers were still haggling over several unrelated amendments Wednesday evening.

 Popular bills like the one to extend unemployment benefits often attract amendments that would have a difficult time passing on their own.

 Republicans were demanding that they be given a chance to offer amendments to restrict federal aid to the beleaguered community activist group ACORN and on requiring that people receiving unemployment insurance be processed through E-Verify, an Internet-based system that employers use to check on the immigration status of new hires.

 Majority Democrats have refused to add the amendments.

 

When you choose us to handle your Vancouver Washington real estate needs, you choose a team of realtors® who care about you and your family. Buying or selling a home is always more enjoyable when you work with professionals who will listen to your needs and who will work together with you to achieve your objective. We are very familiar with all types a real estate in Clark County and we specialize in Vancouver, Ridgefield and Battle Ground. We are also very experienced with new home and custom home construction having assisted several local builders in selling new neighborhoods in the Vancouver Washington area.  Additionally, we have helped numerous families build their own Vancouver Washington dream homes. We are dedicated to helping you make intelligent, informed decisions and to providing you with exceptional service. Go to www.ernw.org for more information. See our video here. 

AARP currently has a terrific resource on their website.  They have announced Operation Energy Save, a new initiative, to encourage friends; family and neighbors to conserve energy by making small changes around the house that are proven to reduce energy costs.

Some of their suggestions include:

• Lowering thermostats in the winter by 10 percent (like from 74° to 67°) for eight hours, which can shave 10 percent off the household heating bill.
• Closing the heat vents and the doors in rooms that aren't being used.
• Turning off kitchen and bathroom ventilating fans when not in use. If left on for an hour, they can suck all the heat out of the house.
• Making sure furniture is not blocking a heat register and moving furniture away from cold exterior walls and windows.

Information on where to volunteer or to get local community groups involved can be found at www.AARP.org/CreateTheGood.

For the complete article visit: AARP Operation Energy Save.

Pre-Approval Vs Pre-Qualification  

Pre-Approval Vs Pre-Qualification

Very shortly after you have made the decision to purchase a home you will need to talk to a mortgage professional about your new mortgage. This is an important first step in determining how much you can really afford and whether you qualify credit wise for a mortgage.

Over the years the terms pre-approval and pre-qualification have been used as if they are interchangeable. They are not. They mean two entirely different things and should not be confused. Let's take a look at the two.




Pre-Qualification

Getting pre-qualified, too be frank, is almost a waste of time. In its simplest form a mortgage expert takes the information you give to them and without checking into it, offers you his opinion on what you can afford. No credit check has been done. No verifying your income, nothing is done to verify your statements. It is only an opinion on what you can afford. It is not a commitment on anyone's part to give you a mortgage. Usually the whole process is done while sitting in the mortgage experts' office. Many people have been very disappointed when thinking they have mortgage make an offer on home only to find out they're wrong.

Pre-Approval

On the other hand a pre-approval is a commitment to give you a mortgage usually with the condition the house must be acceptable. In this case they do a full credit check, verify your income, gather proof of your statements. In most cases they will offer you a letter stating exactly the terms and conditions of your new mortgage. This process can take anywhere from several hours to a few days.

When it is time to search for your new home be sure to get pre-approved and not pre-qualified.


Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell

Below are the mortgage rates for California but I am specifically focusing on San Diego County.

The MBS market didn't do so hot today.  It was flat until around 3:45 when there was a sell off.  Mortgage rates will likely be higher Monday morning. 

We have Jumbo loans up to 90% with no PMI.  Call us for rates.

Have a nice weekend everybody!

 

Mortgage Interest Rates for Fixed Rate Mortgages*

Rates as of Friday, 23rd October, 2009:         Conforming         Term       Rate          APR     Payment $1000

Term Conforming APR Payment per $1,000                 Jumbo APR Payment per $1,000 30-Yr. fixed 360 4.75% 4.922% $5.22 Call 0.000% $0.00 15-Yr. fixed 180 4.25% 4.545% $7.52 for 0.000% $0.00 7-Yr. fixed ARM 360 4.00% 4.165% $4.77 jumbo 0.000% $0.00 5-Yr. fixed ARM 360 3.75% 3.912% $4.63 & 0.000% $0.00 10 Yr. fixed ARM 360 4.375% 4.543% $4.99 FHA 0.000% $0.00 5-Yr. Interest Only 360 3.875% 4.038% $3.23 Rates 0.000% $0.00

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Certain credit requirements and other conditions apply. This is not a guarantee to lend. Rates based on a 12 day lock period and a minimum loan amount of 185,000. Credit determination must be made prior to approving rate. Equal opportunity lender. CA DRE Lic.#01366552 FPF CA DRE Lic#00654852 Nevin's NC Lic#I139451 First Priority Financial NC Lic# B-146523-101 OR ML3337 WA 510-MB-30588-51099  A mortgage broker serving Carlsbad and surrounding areas. First Priority Financial  has a system for their loan officers that automatically provides updates to the listing agent, selling agent, title and escrow officer, borrower and even the seller.  This way all parties are aware of the progress of the loan during the purchase transaction.  First Priority Financial is the largest mortgage brokerage in the US which results in discounted services and lower wholesale rates from the banks we do business with.  This means our customers get an ever better rate with less fees than most other lenders can offer.                                                                   BE ADVISED If you use a bank don't expect them to return your calls in a timely manner.  When you complain they will ask you to log on to their customer no service webpage where you'll be greeted by:      All of this technology is used to provide a better experience for my customers and saves them thousands of dollars.  What technology do you use for the benefit of your customers?                                                                    Apply Today!   Calculators, current rates, buying a home, refinancing, VA, FHA, USDA, Conventional and Jumbo loans. We are a mortgage broker servicing North Carolina, California, Oregon and Washington. Our corporate office is headquartered in Fairfield California since 1977. Licensed to brokerloans with over 300 lenders including Bank of America, Wells Fargo, Citimortgage, Met Life, Fifth Third Bank, Flagstar, ING,Luther Burbank, Provident, Suntrust, US Bank and many more.  Find a home with our network of professional real estate agents interviewed and selected for their extensive knowledge and expertise!    Send us an e-mail with the city and state.  nevin@nevinloans.com You may also call us at (888) 206-5781 My extension is 1017 Nevin's CA DRE Lic#01366552  FPF CA DRE Lic#00654852

Roundabouts... I prefer to call them "glorietas", as they do in Mexico, a name that sounds more interesting and regal, like a crown sitting in the middle of an intersection.   La Quinta has recently added two "roundabouts" to our streets.  One in Old Town La Quinta and one at the busy intersection of Jefferson and Avenue 52.  Some people view this as a throwback to a time before stop signs, but actually traffic engineers across the country are coming to the realization that roundabouts, in the many forms, are generally superior to the traditional four-way intersection.  Have you ever sat at a four way stop and everyone arriving at the same time and looking at each other, wondering who will venture first into the intersection or trying to remember who has the right away from our driver's training manuals? 

To newcomers, "roundabouts" can seem intimidating, foreign and confusing.  However, roundabouts eliminate the left turn, by far the most dangerous maneuver on the American road. They negate the possibility of the side-impact collision, which accounts for 28 percent of all road fatalities. They save gas and minimize air pollution because there's no more idling at red lights. Cars enter the roundabout, first yielding to vehicles already there, and slowly turn a leftward circle before easing out at the desired street. No stopping.  Not only that, studies have shown that people driving around "roundabouts, actually pay more attention to what they are doing!

La Quinta's office of Public Works has recently sent out general rules for roundabout etiquette and they include:

1. Slow down entering the roundabout - speeds below 15 mph are appropriate.
2. Traffic travels in a clockwise direction.
3. You must give way to the traffic already in the roundabout.
4. If a roundabout has a single lane, such as the one on Avenue 52 and Jefferson, do not try to enter parallel to another vehicle.
5. The car on the left does not have the right away, always yield to the car on the right when approaching the roundabout.
6. Always yield to traffic and pedestrians in the roundabout.
7. Vehicles in the roundabout have the right of way; pedestrians should only cross in marked crosswalks.
8. Use turn signals when entering or exiting the roundabout; and if you miss your exit, simply stay in the roundabout until you come back to it.
9. Bicyclists should observe the same rules as cars in a roundabout.
10. Have courage, you can get around and out of it.

 To read about my own personal experience with learning how to drive and roundabouts... click here.

If you are interested in searching for homes in La Quinta, researching the current value of your home, viewing our La Quinta Real Estate Website, or learning more about the current housing market, give us a call at (760) 567-9100. 

Copyright © 2008 Susan Laxson. All Rights Reserved. "La Quinta's Roundabouts".  Information is from sources deemed reliable, but not guaranteed.