December Holiday Special for Borrowers and Realtors!

With holiday schedules fast approaching, working with the wrong lending partner can cause significant delays at closing. CHM is proud to offer you GUARANTEED 24 hour underwriting on all purchase transactions in the month of December.

In addition, we are offering all borrowers with December contracts, the following pricing credits to offset their closing closts:

• Jumbo ARM: 0.25% *
• Conventional & Government ARM: 0.50% *
• Fixed Government Purchases: 0.50% *

Please forward this information to any borrowers who are currently in contract or call me today with any questions.

Don Parsons
Mortgage Advisor
NMLS# 287222
(949) 428-3099
dparsons@commercemtg.com

How Long Must I Wait?

How long must I wait before obtaining financing after bankruptcy, foreclosure or short sale? This is a question asked more and more due to the financial changes and hardships that many have faced in recent years. I have provided the following chart to help answer those questions.  (You can download a printable PDF copy here.)

Don-Parsons-Commerce-How-Lo

 

Branding and Imaging Webinar

This class takes a look at the new information empowered consumer and how we as agents have to show value in our personal brand. Agents will be asked to identify what makes them unique.  We will show agents the professionally designed marketing materials on BreakthroughBroker.com that they can easily customize for their brand.  We will also show agents creative ways to show off their brand through social media and other digital channels. Please Join Us!

Thursday, June 19th at 9:00 am PDT

branding-imageOrange-register-btn

Once registered you will receive an email confirming your registration
with information
you need to join the Webinar.

We look forward to having you on the call!

System Requirements
PC-based attendee requirements: Windows® 8, 7, Vista, XP or 2003 Server
Mac®-based attendee requirements: Mac OS® X 10.6 or newer
Mobile attendee requirements: iPhone®, iPad®, Android™ phone or Android tablet

Real Estate Law Updates: New Resident Manager Laws

Real estate law update from J. Scott Souders, P.C., Attorney at Law:

1. New Resident Manager Laws Start July 1, 2014.

gavel_300Commencing July 1, 2014, the hourly rate you must pay to resident managers increases to $9.00 per hour. In addition, the maximum rent that you can charge the manager who is required to live at the property will be approximately $515.00 a month if they are a single manager and approximately $755.00 per month if it is a couple.

Reduced rent for a manager’s unit cannot be applied as an offset against wages otherwise owed to the manager unless the owner signs a written contract with the manager authorizing the rental reduction credit to be applied against the minimum wages otherwise due. In furtherance thereon, the maximum offset against that hourly wage can be no more than approximately $515.00 per month for a single manager or $755.00 for a couple who are employed.

Remember that resident managers are usually construed to be employees. Therefore, you must have workers compensation insurance as well as deduct for payroll taxes.

Comment: Many owners of apartment buildings are not in compliance with the resident manager laws. In my mind, it is very important to become compliant as there are far too many lawyers out there looking to put the hurt on unsuspecting owners by filing wage and hour lawsuits. Many of these lawsuits on behalf of these managers claw back for years asking for penalties, attorneys fees, and other violations of the labor laws. Sometimes hundreds of thousands of dollars are involved if these resident managers are given free rent and not paid the hourly wage. These damages, plus having to pay attorneys fees for both your attorney and the manager’s attorneys, can be a very expensive lesson.

Scott Souders is a real estate attorney who has practiced real estate law in excess of 37 years in Southern California.

Disclaimer: The Real Estate Law Update cites cases or statutes which are summarized and should not be relied upon without fully reading the cases or statute in the advance sheets and shepardizing the same and consulting with your own attorney.

3% Down Payment HomePath Program Incentives Extended

Fannie Mae HomePath Extends Incentives for Home Buyers
with Low Down Payments

Fannie Extended 3.5% Seller Paid Closing Costs Concession
(Selling Realtor must ask for concession in the beginning with offer)

Offers Must be Made after June 14, 2011

Sale Must Close On or Before Oct. 31, 2011

Selling Agent Bonus:

$1,200 bonus available for selling agents

NOTE:  www.HomePath.com  –  search for properties and…
all owner occupants enjoy a 15 day preview of all
HomePath properties without competition from
investors, through Fannie Mae’s FirstLookTM period

3% Down Payment for owner occupied buyers

Investors may buy with 10% down (unlike normal non-owner occupied loans
requiring 20% down)  There are exceptions to down payment for multiple properties.

Financial Items You Need for a Mortgage Interview

If you are thinking of buying a home or refinancing, there is a list of  financial items you need for that interview.  The problem with many lenders, brokers and loan originators is that they do not want to inconvenience the consumer by too much paper work.  Truthfully in most cases, I can interview someone over the phone, based on my decades of experience, and usually validate what I am told pretty well by the type and way I make my inquiries.  However, if the client wants to be formally pre-approved, without exception, I want to see certain financial items and confirm what will be seen by my underwriters, before they see it.  Frequently, inexperienced “lender sales people” will ask for the minimum amount of information and hand out the proverbial pre-approval letter.  The client goes into escrow, receives an appraisal and the file goes to “final” underwriting.  Then that is where it gets ugly.  For some reason a stream of more paperwork is requested and often that paperwork is what unravels the former “pre-approval”.  Cancel the moving van, cancel the new address stamp, and oh, I don’t want to buy a home anymore! This was a nightmare….

So let me help.  This is a brief summary of items needed for a purchase transaction:

  • Most recent paystubs for one month
  • Last two year’s w-2’s
  • Last two year’s Federal Tax returns, all pages
  • Last two months bank or other asset statements where the down payment is deposited

This is a simple list  for a purchase transaction for a wage earner.  Refinancing is slightly different, self employment is slightly different and retirement income is slightly different. Clients with multiple pieces of real estate is slightly different.  But this is the basic list, and with these items,  plus a lender pulled credit report, a pre-approval letter can be issued quickly and confidently.   While one paystub and one years tax return and one bank statement “might” work, it is unkown unless answers to several questions are answered properly, possibly not requiring the additional information.  But this is not for the inexperienced lender to decide.  So, have this information ready and when you have your interview the lender will have a much more complete picture of your qualifications.  Soon I will post an article on how consumers should shop for a loan.  You may be surprised!  If you would like to discuss this further or be pre-approved for a mortgage loan, or have a friend with that need, please contact me at 949-428-3099 or don@donparsons.com

Reverse Mortgages – Dream Loan or Equity Pit?

The Reverse Mortgage Purchase Option

This link goes takes you to a 2 page document that discusses briefly using a Reverse Mortgage to purchase a property.

Often seniors (those 62 and over)  will consider placing a Reverse Mortgage on their home for a multitude of reasons, many of which are the same if you use the Reverse Mortgage to “Purchase” a home.  Click on the link above for a brief summary of the FHA HECM Reverse Purchase Mortgage.  Many who have lost homes and had some liquid assets can still buy a home using the “Reverse Mortgage” without the 2-4 year waiting period which is required in normal mortgage loans.  Feel free to contact my office at 949-428-3099 for additional information or a meeting to discuss your or a family members possible needs for this specific type of product.

FICO Credit Scores – Understanding the Basics

Wonderful educational material for the consumer looking to improve, correct and build FICO credit scores that can possibly save tens of thousands of dollars in better interest rates on mortgages, cars and credit cards.  Here is the link:

CREDIT SCORES – UNDERSTANDING THE BASICS   

Below are some of the great topics briefly discussed.   

Facts You Should Know

Why Do Scores Vary

Do Lenders Use All Three Scores

How Fast Can Scores Change

What Goes Into Your Score

What is Not in Your Score

Can I Improve My Score

Five Rules to Follow When Trying to Improve Your Credit

Disputing Errors on Your Report

If the Credit Challenges Are Too Much