I realize it may seem daunting to ask what you feel may be the simple or even, er, “stupid” questions when you are a first-time homebuyer. But by all means, DO NOT let your “pride” get in the way.
Questions like:
What is a pre-approval and how long is it good for?
Do I need 20% down?
Will applying for a mortgage hurt my credit?
Should I shop multiple lenders?
What’s the best type of loan to get?
When can I lock an interest rate?
How much are closing costs?
How does my lender get paid?
You’d be surprised to realize how many would love to know these answers and this short, fun video below covers each of them.
Marin Office: 700 Larkspur Landing Circle, Suite 199, Larkspur, CA 94939
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
It can be a real jungle out there if you’re trying to buy a home and get a mortgage, especially when you have bad credit. But if you’ve got an appetite for instruction, I’m going to show you the ways you can overcome the stress, intimidation and fear of the failure and succeed with the purchase of a home — even if your credit scores and credit history are down and dirty.
In just the time it takes to listen to your favorite tune, let’s learn how to rock buying a home when you have bad credit!
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
Why go home to your grungy apartment when you can buy your first home instead? Oh, what’s that? Haven’t saved the full 20% down payment? Live in a part of the country where home prices and loan sizes easily outpace the capacity of conforming, FHA and even VA loans?
Let’s learn how to rock the best of the 10% down jumbo mortgage options, some without PMI, and jam on why with a changing real estate market, you may be in luck with half the down payment you thought it might otherwise take.
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
Buying your first home is a daunting task and can be a huge undertaking for the first-time buyer. Shoot, even for a move-up buyer, the experienced downsizer or a seasoned investor, it can sometimes be difficult to know where to begin. But getting a mortgage pre-approval often remains the best first step in the process, and it’s also a likely reality that your Realtor won’t seriously consider showing you property until you are either pre-approved or pre-underwritten by a mortgage lender or broker. After all, it’s really tough to know your purchase power and your budget if you don’t know how much of a loan for which you can qualify.
But buyers and borrowers got it bad (so bad!) because they don’t teach “how to buy a home” in school. So it’s less about the education that you missed and probably more about the education you never got. But in just five fun minutes we’ll cover:
What’s a pre-approval?
How much does it cost to get a pre-approval?
Will a pre-approval application hurt your FICO score?
What happens once you’re pre-approved?
How long is a pre-approval good for?
Grab your pencil and let’s learn how to rock a mortgage pre-approval!
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
Fifty years ago, when the Doobie Brothers were flying high and the folks in China Grove were rising for another day, it would have been hard to imagine that marijuana would eventually be legal in some states. But, not legal in all states and not legal at the Federal level and that means those who work in the marijuana and cannabis industries can see their mortgage opportunities go up in smoke if not aligned with a lender who knows which programs and investors can navigate this relatively new industry.
So let’s take it to the streets and find out just how a homebuyer or homeowner can get a mortgage approval if they are employed in a cannabis business and get income from a business in the cannabis space.
Need some solid advice about mortgages and marijuana and cannabis income? Give me a like or subscribe on YouTube!
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
Nope, nope and nope. None of these are the #1 question we get before a prospective borrower makes an application for a pre-approval. So what is the most asked question?
“Will making a mortgage application hurt my FICO score?”
Yep, that’s it. That’s the one that keeps some otherwise strong and qualifiable buyers on the sidelines and paralyzed by the irrational fear that simply by having a lender make a hard credit inquiry, and access their Equifax, Experian and Transunion scores, that they will somehow see their excellent credit rating vanish in the face of that lone (or multiple) inquiry.
So, let’s walk around all day long and have a little bit of fun busting the myths about credit scores, credit inquiries and mortgage applications.
Need some solid advice about mortgages and credit scores? Give me a like or subscribe on YouTube!
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
Berkeley Office: 1400 Shattuck Ave., Suite 1, Berkeley, CA 94709
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
The mere mention of the words “bitcoin” or “cryptocurrency” or “blockchain” is sure to evoke comments and reactions that will be far-reaching. There will be the speculators who rolled the dice and came up winners, or who are still white-knuckling their wild ride. There will be financial technicians who have been forced to grasp how this technology has the potential to disrupt the exchange of currency as we know it. But more than the reactions of either of these two subsets, you’ll encounter the expressions of the mostly and mildly bewildered. Because really, when it comes to cryptocurrency, most people are downright confused:
About what it is.
About how it works.
And for us in the real estate world, about whether you can use bitcoin and other digital currencies to buy residential real estate.
So take a quick video tutorial with me on how to rock the use of cryptocurrency as your down payment!
Thinking about rocking the rebel currency on your next home purchase? Give me a like or subscribe on YouTube!
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
Berkeley Office: 1400 Shattuck Ave., Suite 1, Berkeley, CA 94709
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
If you searched unsuccessfully for a home and suffered one heartbreak after another in 2021, 2022 hasn’t necessarily greeted you with open arms either. Near non-existent inventory in many areas, fierce competition and rising interest rates have all conspired to make the landscape rockier still.
Despite this, I’ve found five tips can be a universal help in getting you into contract, regardless of your own individual circumstances. Rock them with me on Youtube:
Ready to find Paradise City? Please give me a like or subscribe on YouTube!
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
Berkeley Office: 1400 Shattuck Ave., Suite 1, Berkeley, CA 94709
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
Many real estate markets in California move fast, but it’s been this way for years. When a hot property hits, perhaps there’s a showing on Sunday (more on that in a bit, and in the context of COVID-19) and then offers are due on Tuesday, with some buyers scrambling to make a preemptive offer, if possible.
This reality can run counter to some buyers’ inclinations to get their mortgage financing in order by dipping one toe in the water at a time. It’s not uncommon for us to get a call that starts something like this: “My partner and I are thinking about buying a home in the next 3 to 6 months, but we’re first-time buyers and not really sure where to start. We were told by our real estate agent that we need to get pre-approved and might have some time over the next few weeks to look into this. Can you help us get started?” It’s also not terribly unlikely that a house will pop up that grabs these prospects by the heartstrings. Before we know it, there will be a successive call that goes something like this: “OMG! We just saw the perfect home! Offers are due tomorrow at noon! What do we need to do to get pre-approved right now?”
So the real question here is, how long does it take to get pre-approved for a mortgage? Of course, the answer will vary from one borrower to the next. Some scenarios are quite simple — both borrowers get a W-2, have funds for their down payment in one account and have squeaky clean credit. Others are massively complex — self-employment, multiple rental properties or entities owned, RSU or other variable income, a credit hiccup in the past, etc. But at the end of the day, the single biggest factor determine the speed in which we can “decision” a pre-approval and get a buyer into the game comes down to the borrower’s organizational skills. In other words, if any borrower(s) can complete a thorough and accurate application, then bear down and get us complete documentation for their income, assets and credit, usually and irrespective of complexity, we are almost always able to turn a pre-approval in under 24 hours. Often, under six hours. Right now, due to the pandemic, you may not even be able to view a property without a pre-approval letter in hand, so we are seeing a resurgence in interest for pre-approvals on short notice.
The process and steps for pre-approval generally follow this pattern, and there is no cost or obligation associated with making an application:
We always welcome an initial call to discuss objectives and answer questions. Call any time!
Our digital mortgage application is one of the industry’s best. You can complete this user-friendly form in 10 to 15 minutes and whenever convenient. It is best to tackle the application from a place where you have access to your financial documents so that you can assure accuracy, but even if this is not possible, some will complete the application from their smartphones with perfectly efficient results.
Upon completion of your application, you’ll be prompted to securely upload your financial documents such as paystubs, bank statements, tax returns, etc. While you can skip this step at this phase, consistent with our theme above if you are able to provide complete documentation, we are able to return a decision with less delay.
We will follow up with you to review your information and issue a pre-approval letter for your search.
If you are “in the market” and your market is in motion, timing to pre-approval should not be a concern. Yes, if you are able to start and complete the preapproval process without urgency, that’s helpful but not necessary. We get how the housing market works and we understand what needs to happen when an opportunity arises or materializes. Let us know when you need our assistance!
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
Berkeley Office: 1400 Shattuck Ave., Suite 1, Berkeley, CA 94709
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood Chicago, IL 60613 – (866) 934-7283
We, here at Guaranteed Rate, pride ourselves on being a great jumbo mortgage lender. And because of my geography and clientele in the San Francisco Bay Area, we encounter a lot of higher loan amounts. Our rates are very competitive and we have many investors who can cover the needs of just about every jumbo loan scenario that can realistically be done these days. Moreover, we retain control of the underwriting, so we can exercise “makes sense” judgment and get files approved where many other banks and brokers cannot.
Yet, we are not immune to the quirks of the current state of jumbo mortgage lending and credit tradeline requirements definitely fall into the “quirk” category. A theme that will emerge here, and true to our opening statement, is that FICO score alone does not a jumbo approval make. As we’ll see, the credit requirements for jumbo loans reach beyond a borrower’s score and delve deeper into the components that comprise those very numbers, namely:
Credit history — depth and age of tradelines.
Blend of credit — distribution of open credit between mortgage, installment and revolving debt.
Use of credit itself — how recently have accounts been used?
If you are in the market for a jumbo mortgage, it’s important to work with a mortgage professional early, as some of these requirements simply cannot be met in the time period it would take to close a traditional escrow. Let’s look at one jumbo investor’s credit profile requirements:
Minimum of 3 open tradelines with minimum of 12 month history for EACH borrower.
Authorized user accounts cannot be used to meet minimum tradeline requirement.
Credit depth must be a minimum of 2 years.
All 3 tradelines must have had current activity.
Or another’s:
Minimum 3 tradelines open and active for at least 24 months.
At least one of the three tradelines must be a mortgage or installment loan.
Remaining tradelines must be rated for 12 months.
So, a moral of this story might be that you may indeed have a very good FICO score. But if you do not demonstrate to a jumbo mortgage investor that you can produce a high score by way of the behavior that they believe will most likely lead to repayment of their loan, you may find yourself on the outside looking in. Remember, if you don’t like to use credit — if you pay cash for that auto, if you eschew credit cards — this can be highly effective financial behavior from a personal standpoint, but it can leave the mortgage lender in the dark about whether you’ve got the right credit curriculum vitae.
If you have questions about a jumbo home loan and/or about how your credit report and profile will be viewed by a jumbo lender, get in touch today. I can help you make sense of what it takes to qualify for a jumbo mortgage, and in many cases, we can find just the right investor to work with your existing credit profile. Your credit may already be excellent but we’ll make sure it’s jumbo good.
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
Berkeley Office: 1400 Shattuck Ave., Suite 1, Berkeley, CA 94709
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
