Phil Caulfield Jumbo Loan California DRE #01030082

Are you looking for a construction loan in California? Well, it has not been easy to find funding for a construction loan lately, but there are some sources starting to make funds available.

If this is the first time you have looked for a construction loan, there are some details that you need to know.

First, there are generally three parts of getting a construction loan approved. The first part is the credit approval. Credit approval for a construction loan is similar to getting credit approval for a mortgage. The lender will look at your capacity to re-pay (employment, income, debts, repayment history, etc.).

The second part of a construction loan approval is the general contractor approval. The lender will usually like to see the contractor's resume, list of projects completed, credit history, licensing, and insurance coverage.

The third part of a construction loan approval is the project approval. The lender will want a copy of the plans, construction contract, permits, receipts for payments, and a list of building materials.

Once these three parts of the construction loan are approved, the lender will begin disbursing the funds. The first disbursement will pay off your existing mortgage, if you have one. The exception to this disbursement would be if they approved it as a second mortgage (rare).

The payment you make for a construction loan is similar to that of a payment on a home equity line of credit - you only pay interest on the amount disbursed.

For example, If you are approved for a $750,000 construction loan, but only $300,000 has been disbursed, then you would only pay your monthly payment on the $300,000 disbursed.

Sometimes a construction loan will be set up with a reserve fund. The reserve fund is used to make the payments for you. A reserve fund is nice because it allows you to conserve your cash. On the other hand, if you do employ a reserve fund to make your payments, you will be paying interest on interest.

A construction loan usually has some built-in protection for the borrower: funds are usually not disbursed until an inspector inspects the property to make sure the work the contractor is asking payment for has been completed in a workmanlike manner.

After the project has been completed, you have three options as a borrower: pay the loan off, accept permanent financing from the construction lender (usually worked out prior to the beginning of a construction loan - called a construction to perm loan), or obtain a take-out loan (a loan from another lender to "take out" the construction lender). These choices are necessary because construction loans are usually written with a payoff date from six to eighteen months from the initial disbursement.

Here are some tips that will help you with your construction loan:
1. Do not start construction until your construction loan has been recorded. It makes the process much easier for you and the lender.
2. Find a general contractor with a strong resume and a good reputation for his work in your geographic area.
3. Be very organized with your documentation for the lender. The easier you make it for the lender, the easier it will be for them to approve your construction loan.

Here in August, 2009, the cost of construction has declined in California because of our economic downturn. Now may be a good time to consider building that new home or re-modeling the home you have!

How Can I Help You?

Visit My Website

I read a blog post today on Cyberhomes blog (an excellent website and blog, by the way). It's latest post is titled "Searching For Good Mortgage Brokers" .

In the post, the author writes, "For people who worry about finding a reputable broker (e.g., one who won't steer you into a loan with hidden exorbitant fees so he can collect higher compensation), there's a website you can try." The website is called upfrontmortgagebrokers.com.

This is the website for the Upfront Mortgage Brokers Association (UMBA). The home page of the website states that it was "founded for consumer advocacy" a noble goal. It also states on the home page "Most professional associations are formed to further the interests of the individuals forming the organization. Members of UMBA are mortgage brokers whose interests are fully aligned with those of the consumer.

Association members believe that, in serving the public interest, they will be working toward a better profession, which, ultimately, will further their professional/personal goals."

I am not a member of this association. This is not an attack on the association or its members. My question is whether this association is relevant any more.

Here is why I ask this question: On the home page of their website there is a link for consumers to click on that says "Why Choose An Upfront Mortgage Broker". On this PDF, it states "the key element of the UMB commitment is the requirement that the fee for the UMB's services be negotiated and established at the start of the mortgage process."

The reason I ask if UMB's are relevant is because of the amount of disclosure that we have to do as mortgage brokers in terms of our compensation.

First, we have to send out a Good Faith Estimate with our fees disclosed. We also have to have separate forms signed that disclose our fees again before we can submit our files to our lending partners. I think by the time we have submitted the file, our clients are very clear in terms or our compensation.

Maybe I am missing something. Again, this is not an attack on upfront mortgage brokers. But it seems to me that the government and our lenders have taken care of consumers in terms of mortgage broker fee disclosures.

Here's a question for you for you mortgage bankers - how come there is no upfront mortgage banker association? Mortgage bankers don't have to disclose how much they are compensated.

I typed in "upfrontmortgagebankers.com" into my browser. It said "sorry page not found".

As a service to my mortgage banking buddies, I went on register.com to see if upfrontmortgagebankers.com is available. It is! Here's your chance to bring full disclosure to consumers!

Contact Me

Are you looking for an insurance agent in San Mateo, CA? Well, you need to meet Kelly Corwell. Kelly is an energetic insurance agent who takes the time to educate her clients about risk, and how insurance will provide her client's peace of mind knowing that they will be protected from any unexpected event that may occur in their lives.

The Corwell insurance agency serves the Greater Bay Area (locally in San Mateo and Burlingame). It is affiliated with Farmers Insurance and Financial Services. Kelly takes pride in being a very "hands on" insurance agent. She conducts annual reviews with each of her clients to make sure they are properly protected. Life changes, and Kelly makes sure that her clients are protected with the inevitable changes that life brings.

Kelly is an insurance agent that provides many different types of protection: auto, home (condo, renter), life, identity theft, motorcycle, boats, recreational, financial, and business. If she cannot provide protection for what her clients need, she will find someone who will.

Kelly has told me that 60% of all homeowners are under-insured. She offers a free full insurance review. If she finds that your coverage is sufficient, she will recommend that you keep it. If not, she will educate you on why it is not sufficient, and make recommendations on how to adequately protect yourself. She is an insurance agent that puts her clients' interests first.

If your insurance policies are with a large company, your contact may be with a customer service agent through an 800 number. To many of these insurance companies, you are just a number. How would you like to have one person to call if you had a question, concern, change, or need to add something? Kelly is an insurance agent that can provide personalized service for you.

Although Kelly is a "hands on" insurance agent, she does provide the convenience of being an online insurer with a user-friendly website for bill pay and policy access. She is a great insurance agent for those that like to do business over the internet, and also for those that like to walk into the office to make their premium payment!

Corwell Insurance Services is conveniently located at 635 Mariners Island Boulevard, Suite 100, in San Mateo. She can be reached at (650) 296-5850. Her e-mail is kcorwell@farmersagent.com. If you are looking for an insurance agent who will educate you, put your needs first, and is easily accessible, contact Kelly Corwell!

How Can I Help You?

If you are looking for a Burlingame mortgage, I can help you. I have been originating loans since 1985. Our company, RMC Real Estate Loans, is located in the heart of downtown Burlingame, on Burlingame Avenue, which will make it convenient for you to obtain your Burlingame mortgage.

Our company is a mortgage brokerage, which means that we are not tied to the programs of just one lender. Instead, we have wholesale relationships with lenders such as Bank of America, Wells Fargo, and Citimortgage, and many others. These relationships we have will enable us to quote you attractive terms from a variety of lenders for your Burlingame mortgage.

You might be saying to yourself, "why should I call a mortgage broker to obtain a Burlingame mortgage? I can just call the banks myself." Yes, you can call the banks yourself. However, there are so many nuances that go into a rate quote, that you will be spending a lot of time and energy trying to figure out which lender is the best to apply to. If you value your time, letting us help you obtain your Burlingame mortgage is a wise decision.

The property values in Burlingame are high compared to the rest of the country. We specialize in jumbo loans and agency jumbo loans (loans purchased from lenders by Freddie Mac and Fannie Mae). The limit for an agency jumbo loan for a single family Burlingame mortgage is $729,750. Many lenders offer agency jumbo loans. Few offer jumbo loans, but we do have them available up to $10 million.

If you need a jumbo loan for your Burlingame mortgage, be prepared to make a down payment of at least 20%. Generally speaking, you will need to provide two years of tax returns to verify your income. You will also need your debts to be no more than 45% of your income. I can help you figure out how much you can qualify for to obtain your Burlingame mortgage. I always have a few tricks up my sleeve (that are perfectly legal and ethical) to help increase the amount you can qualify for.

If you are purchasing a home in Burlingame or in the surrounding area, I suggest you get pre-approved before making an offer. Burlingame homes that are for sale often wind up obtaining multiple offers. If you are not pre-approved, your offer will not be as strong. To get pre-approved for a Burlingame mortgage means that you provide me with all of your financial documents and signed disclosure forms. I then submit your package to a lender, and they will approve you to borrow up to a certain amount.

Not only do we offer residential mortgages, but we also offer commercial mortgages and a reverse mortgage alternative. My goal is to provide a wide variety of programs and terms for your Burlingame mortgage needs!

How Can I Help You?

Phil Caulfield
(650) 401-3239 Office
(650) 222-0386 Cell Phone
@philcaul Twitter
http://www.linkedin.com/in/philcaulfield LinkedIn
http://budurl.com/Philfinancepage Facebook

Are you looking for a San Francisco mortgage? Congratulations, San Francisco is a beautiful city. I am a mortgage broker just south of San Francisco, in Burlingame, and can help most people with their San Francisco mortgage needs.

The conforming loan limit for a San Francisco mortgage is $417,000 for one unit, $533,850 for two units, $645,300 for three units, and $801,950 for four units. A homeowner or home buyer can borrow up to 90% of the property value for a primary residence. An investor can borrow up to 80% for a San Francisco mortgage on a rental property. Hopefully your loan amount falls in the conforming category because the rates are generally the best and qualifying is easier than for jumbos.

A conforming loan means that the loan is eligible to be purchased by Freddie Mac or Fannie Mae. However, Freddie Mac and Fannie Mae now offer what are called "agency jumbo" loans. Listed below are the agency jumbo limits for a San Francisco mortgage.

The limits for an agency jumbo loan for a San Francisco mortgage are $729,750 for one unit, $934,200 for two units, $1,129,250 for three units, and $1,403,400 for four units. There are several benefits of agency jumbo loans over jumbo loans.

First, you can borrow up to 90% of the value for a single family primary residence. Second, automated underwriting is allowed, which sometimes requires less documentation for a San Francisco mortgage. Finally, debt-to-income ratios can generally go higher than for a jumbo loan.

If you need to borrow more than $729,750 for a San Francisco mortgage, than you are in the jumbo category. We offer jumbo loans up to $10 million (more by exception). Here in August, 2009, there are more lenders entering (or re-entering) the jumbo loan market. Generally speaking, the down payment requirement will be at least 20%. Debt-to-income ratios generally can not be more than 45%.

Some of our jumbo lenders have some unique niches for a San Francisco mortgage. One of them does not require any asset verification. A small bank we have a relationship with is extremely fast because they only accept business from a small number of brokers - RMC Real Estate Loans being one of them.

I am here to help you with your next San Francisco mortgage.

How Can I Help You?

Phil Caulfield
Office (650) 401-3239
Cell (650) 222-0386