Orange, CA

Orange, Ca First Time Home Buyer: Part 2- How to Choose your lender

When it comes to buying your first home, there are many choices you have to make. Making the right choice can mean the difference between a happy first time home buyer and disappointment. Chosing your lender and loan officer is a very important decision you do not want to go wrong on.

First Time Home Buyertip 1: First things first, secure financing. Oh I know talking about finances is no where as much fun as going to look at homes but it needs to be the first thing you do. Sure you can start by choosing your agent as they can be a great resource in finding your lender, but before you start looking at homes you need to know what you qualify for.

First Time Home Buyertip 2: Chose your lender and loan officer wisely. I am guilty of this myself, but I quickly learned so learn from my mistakes and don't make these mistakes yourself. As a Realtor in today's market it goes without saying that a buyer should be approved for a loan before starting their home search. What I was doing is recommending that my buyer's walk into their local Bank of America, Wells Fargo, or Chase and get pre approved first. This way I know how much they qualify for and I would have an approval letter ready for when it was time to make offers. Sounds like I did all I had to do, right? Wrong. Lenders are handing out approval letters like candy. What they do not hand out like candy is loans. I now recommend a specific loan officer who I know will do their due diligence when pre qualifying my clients. Remember, just because a loan officer works for a big bank doesn't mean they are qualified to do your loan.

First Time Home Buyertip 3: Get referrals when it comes to choosing a loan officer: If you have already chosen your real estate agent, they can be a great source for a loan officer referral. After all besides yourself, your agent is the 2nd most dedicated to getting your home purchase closed. If you have not chosen an agent or if they do not have a referral for you, inquire with friends and family. If someone you know has purchased a home recently, inquire about their experience with their loan officer. If they were satisfied, give that loan officer a call and see if you would feel comfortable with them as well.

First Time Home Buyer tip 4: Do not rule out mortgage brokers. Because many direct lenders have systems in place, loan officers who work for these banks often have less control over their files than a mortgage broker has. It is sometimes a misconception that brokers charge more than a direct lender. Because a broker can shop rates, the extra cost to use a broker can often be absorbed by the lower rate they are able to secure for you.

First Time Home Buyer tip 5: Use a full time loan officer. Same as a Realtor, doing home loans is a full time job. You want your loan officer to be available for you and dedicated to getting your loan done in a timely manner.

First Time Home Buyer tip 6: Ask the right questions. When interviewing a loan officer for the job of securing you a home loan make sure to ask questions about their experience and qualifications. If you are doing an FHA loan for instance, ask if they can process these type of loans and how many FHA loans they have done. Ask them how long they have been in business. Do they do loans full time? What are their office hours? What is the average time it takes them to close a home loan? This last one is important as many sellers now charge fees for late closings and can even cancel the sale if you are not able to close in a timely manner.

First Time Home Buyertip 7: Bring in a full package when being pre approved for a loan. This is probably the most important. Yes it is extra work but get it done. Bring in all pay stubs for the last month, last two month bank statements, last two years w2 and tax returns, a copy of drivers license and social security card, and get your credit ran. You want to make sure your loan officer examines everything upfront. If all your loan officer asks for is a recent pay stub and a credit report, run. The last thing you want is a preapproval letter that doesn't really mean you can get a home loan. Some loan officers are guilty of taking any prospect and seeing what sticks. You do not want a loan officer who practices this way. You want to be certain you qualify. Ask your loan officer if she sees any potential problems. If your loan officer spots potential problems that can be addressed, get these items fixed now rather than wait until you are in escrow on a home.

First Time Home Buyertip 8: Get payment and cost estimates. Interest rates fluctuate but this should not stop your loan officer from giving you an estimate based on today's rates. For one, you need to know how much money you will need to buy a home. Also, when you get pre approved your loan officer will let you know how much home you qualify to purchase but payment is also a factor. Let's say, for instance, you are pre qualified for $300,000 but you feel comfortable with a $2000 a month payment. Your loan officer can go over different scenarios with you so you have a better idea about roughly how much home you can buy and still stay within a payment you feel comfortable with. Now remember to give this information to your Realtor so she can adjust your home search accordingly.

Next I will go over Orange, Ca, First Time Home Buyer: Part 3 Do and Don't. Many times First Time Home Buyers are not properly informed on what they should and what they should not do as they search for their first home and during escrow after they find their home. A wrong decision can mean a failed transaction... next blog will go over everything you need to know on this topic...

Click here to read First Time Home Buyer: How to Choose A Real Estate Agent

Orange Ca, First Time Home Buyer- Part 1: How to Choose your Real Estate Agent

This will be the first in a series of first time home buyer blogs that I hope will be beneficial to all first time home buyers looking for pointers on how to prepare for purchasing their first home. Buying your first home is both exciting and trying. Choosing the right agent can mean the difference between your first set of home keys and disappointment. Here are a few tips to keep in mind when searching for the perfect agent for the job.

First Time Home Buyer tip 1: Chose an agent who specializes in working with First Time Buyers. This might seem like stating the obvious but many buyers do not understand why this is important. As a First Time Buyer, your needs are different than most. Many agents have specialties. Some agents, for instance, specialize in relocation buyers. Others specialize in move up buyer's. And the list goes on and on as there are many different types of buyers and sellers. As a first time buyer, your may need a little more guidance and reassurance than other buyers. A first time home buyer specialist will likely understand these needs and will be better equipped to answer all your questions. A first time home buyer specialist will likely be more patient and willing to take the time necessary to make you feel comfortable in your future purchase.

First Time Home Buyer tip 2: Chose an agent who is familiar with the area you are looking in. If you are looking for a home in Orange , it would be beneficial for you to work with an agent who works in this areas. If you work with an out of area agent they will have less knowledge about prices and neighborhoods in the area you are looking in.

First Time Home Buyer tip 3: Chose an agent who understands finance options. Unless you are planning to purchase all cash, remember, you cannot buy a home without a home loan. Your agent should inquire about your financing plans and be able to give you advice or recommendations. Today FHA financing is one of the most widely used loan products for first time buyers. Your agent should understand FHA and its rules and guidelines. Not understanding financing and its implications can greatly hinder your chances in obtaining your new home. Are you planning to buy a condo? If so, you should know that if you are using FHA financing, the condo complex must be FHA approved. Does your agent know how to find out if a complex is approved? They should. The last thing you want is to fall in love with a condo only to find out that it does not qualify for the financing you are approved for. Even if you are planning to buy a single family home, they need to know that not all homes will qualify for financing.

First Time Home Buyer tip 4: Work with a full time agent. Being a Realtor is a full time job. I am currently working with a first time buyer who spent 1 1/2 years working with a part time agent without success. They chose this agent because he was a friend. The problem is he has a full time job and only sold real estate on the side. When the buyer found a house he was interested in, it often took over a week for his agent to get back to him. By then, the house was often already sold. On top of this, they were often forced to go and look at homes after dark because of their agent's schedule. Needless to say, they never found a home. First Time Home Buyers demand a lot of time and attention. You need an agent who is dedicated to you and not another job. And remember, finding a home is just half the battle. Your agent needs to be available to walk you through the purchase once you find your home.

First Time Home Buyer tip 5: Work with an agent you like. Although we are technically in a buyer's market, there is a lot of competition amongst buyer's especially for starter homes. Because of this, many houses and condos often receive several offers. This means you may have to put in a few offers before you get one accepted. What this means for you is you may be spending a lot of time with your agent so make sure you are comfortable with your agent. Does your agent make you feel pressured or awkward? Does your agent make you feel your questions are dumb or unimportant? If so, then maybe you should keep on looking. You should be able to think of your agent as a friend who's goal is to get you into your first home. Your agent should also be like a trusted teacher as they will be guiding you in one of the most important purchases you will ever make.

First Time Home Buyer tip 6: Work with an agent who understands today's market. As a First Time Buyer you will run into 4 different types of homes: bank owned, short sales, equity homes, and investor owned homes. As a First Time Buyer you probably have no idea what this all means. Your agent should be able to explain these type of sellers to you. About half of all listings you will find in Orange will be either bank owned or short sale. Your agent needs to understand the implications and process for both of these types of homes so they can explain to you what to expect. As short sales are often the most difficult but also the best deals, you may want to chose an agent who specializes in short sales and First Time Buyers. On the other hand, you may want to purchase a corporate owned home or a home from a seller with equity. Your agent needs to understand how to deal with this particular kind of seller as well.

Choosing an agent to purchase your first home with as a first time buyer is just as important as choosing the home that you are going to purchase. Be selective. You deserve to work with the agent who will get you the best results. On my next First Time Home Buyer installment, I will get into choosing your lender. Perhaps I should have started with this, but being a Realtor I am a little partial. In the meantime, if you are looking to purchase your first home, I would be honored if you gave me a call or email to find out if I am the agent for you.

Lately I have had several people mention they are considering investing in real estate here in Orange County, CA. People want to live in Orange County, that is an undeniable fact, however investing in our Wild Wild West housing market is not for the feint of heart.

Getting a "deal" has increasingly become a challenge due to huge demand for homes/condos priced under $600,000. Cash is king, so if you can swing an all cash offer, you are golden. Banks will often take a low cash offer that can close quickly for their REO over a financed market value offer. There are a lot of people in OC purchasing all cash, so your offer may still be one of many. Condos in good areas can be had in the low to mid 100K's and single family homes start in the mid 300K's.

If you will be financing your investment purchase there are three different types of homes you can purchase.

• Bank-Owned homes: The trouble with these listings is that from my experience there can be 5-50 offers on them, so you have to put together a complete and "attractive" offer package. What I mean by "attractive" is that your offer price needs to be market value and the offer must include FICO summary, proof of down payment funds, a pre-approval from a direct lender, and any other addendum's the bank requires. If it is not all together in one package they won't even consider your offer.
• Short-Sales: Since you are not looking for a primary residence you have the time to wait out short-sale approval from the bank. From my experience this process may take 2-9 months. You never know if the banks who hold the mortgages will approve taking less than what is owed so don't hold your breath for "the one" to come through and keep looking for other options.
• Normal sale, or equity sale: These are the best, and hardest, homes to find. A normal sale should have less mystery components since they have to disclose everything they know about the home and have likely cared for the home more than a distressed property.

Bryan Shoup, Mortgage Consultant from Home Security Financial, says an investor needs to have a debt to income level of 45% or less, at LEAST 25% down payment (unless you are purchasing with a family member who will live in the home, then as little as 3.5% will work). No stated income loans and an individual can own up to ten properties (previously it was only 4).

If you intend to rent out your investment have your REALTOR run a search on closed leases for the size and type of home your intend to buy. This will be a good indicator of how much you could ask for. Rental prices have remained quite high even in this economic downturn so it is possible to be cash flow positive if you are financing 60% or less.

Do your homework, select a reliable REALTOR who will be a strong partner for your business success, and be patient with all the wackiness you will see in the market. Hold on for a bumpy ride in the Wild Wild West of OC Real Estate!

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Orange, Ca Behind on The Mortgage? Please Don't Give Up!

The last thing you want to do as a homeowner in trouble is give up hope, but unfortunately with all the pressure that arises out of these situations, it is often easiest to put out the white flag and surrender.

As part of my effort to help 100 families this year avoid foreclosure, I must reach out to people that I do not know. This is the part of my job that I find the hardest. I call local homeowners and offer my help. It is a painful process as I encounter a lot of resistance and an occasional frustrated homeowner who would rather take out their frustration on me then face their fear.

I understand. I do. I want to tell them I am here to help and that help is free and that things will be better one day if only they would accept the help that I am offering or any other help for that matter but I am afraid that many do not hear me and think of me as a slimy sales person trying to take advantage of them like they have been in the past.

Case in point. I made a call to a homeowner in Costa Mesa the other day. He answered the phone and was quick to tell me that it was too late for help. Bank Of America had taken his home and that I should stop bothering him and leave him alone. I quickly checked title on his home to find that his home was not owned by the bank. He was behind on the mortgage and he had already put up the white flag. He gave up.

I called him back because I felt despair in his voice and I thought maybe he wanted my help. I would try one more time. So I called him back. He answered. I let him know that I had confirmed with my title officer that his home still belonged to him. There was still hope. He said he had filed chapter 7 bankruptcy. He was done with the house and he said thanks but no thanks.

Now I am by no means an attorney but I do know that Bankruptcy does not stop a foreclosure it only prolongs it. I let him know that he can still save his home. Bankruptcy would make it harder but since a chapter 7 is often discharged in a matter of months, he could continue the fight for his home then. He said he was done with his home. He had enough. He had spent $4000 trying for a loan modification with a company who did not help. He got denied for his loan modification and that is when he realized he had been cheated and because of this he would trust no one again. When this happened he went from behind on his mortgage to giving up.

I explained to him that once his bankruptcy was discharged, he could try to short sale his home. It would be free. As a short sale takes time, he would have more time in his home and could save more money that he would need to move. He could avoid a foreclosure on his record so that his credit could recover quicker .

But he had given up and said thanks but no thanks. Although his home had not gone to the bank, in his mind it had. Now once his home goes to foreclosure he will have a bankruptcy and foreclosure on his record and his credit will be devastated. He will not be able to buy another home for about 5 years. And I could hear it in his voice, he was devastated. He has become a prisoner to his situation. I imagine his family feels the pain as well. It makes me sad that he would not hear me out. In many cases homeowners who feel they have been robbed by a loan modification company can recover some or all of their loss by complaining to the company or filing a complaint with consumer affairs or the Department of Real Estate. I tried to explain this to him but he didn't hear it. He told me he couldn't wait for the home to go to foreclosure so that he could get on with his life and that he hated his home. He asked me not to call back and I will, of course, respect his wishes.

I write this to let others know that if you are behind on your mortgage, please do not give up hope. Yes, there are people out there who will take advantage of your situation. Even if this has happened to you, it does not mean there is no hope. Please do not give up.

Click here to read about 5 common foreclosure Scams you should be aware of

The REAL Tweeps of Orange County!

Despite our undeserved reputation induced by staged "reality" shows, Orange County is chock full of REAL people who freely give of their time, money, and knowledge. In the last few weeks I have had the privilege of getting to know some awesome Orange County Social Media Rock-stars. They may not be gifted musicians, but they are gifted with words and community.

Just Spotted, an Orange County website, hosted the OC Blog Awards at Wowzville in August. Much to my surprise, I was privileged to be nominated for a Micro-Blogging award (Twitter). The place was packed with OC locals blogging about everything from crafting (@thisiscarrie), fashion (@boutiquing), food (@fastfoodmaven) and everything in between. There were wonderful goodies donated by Dippen'Dots Fountain Valley, Daddy Cakes (pancakes extraordinaire), and BabyCakes cupcakes. Colleen and Kelly of Just Spotted organized this event to celebrate our powerful online community: http://www.just-spotted.com/2009/08/youve-just-been-spotted-oc-blog-award_20.html

A week later in Irvine another phenomenal event was hosted by Social Media Club of Orange County, Tweet Up Orange County, Style Week OC and sisters Rochelle, Haley and Chelsey Veturisa. The Irvine Peppino's bar was bursting at the seams as online personalities forged new offline relationships with fellow business owners, students, hobbyists, and plain old social media addicts. There were close to 90 Twitter "Tweeps" elbow to elbow with camera's flashing and video interviews being shot. http://www.ocregister.com/articles/twitter-networking-social-2541296-orange-county

The first OC Twestival will be held at Orange Hill Restaurant September 15th and will be raising money for Orangewood Children's Foundation. Entertainment is being donated by musicians and comics to benefit this very worthy cause. Hundreds of OC Social Media users will be there to support our local children. http://orangecounty.twestival.com/2009/09/02/move-over-america-twestival-ocs-got-talent/

Orange County has a rich pool of people who genuinely care about their community. If you need to know how to start a wordpress blog, or, simply, who has the best tacos in OC, there is a local online community anxious to share their knowledge.

I am proud to be a part of the REAL OC Tweeps!