“World's Most Complete Neighborpedia”
Sponsor a Community — What is Localism? | Register or Sign In
Explore:   What's happening in your neck of the woods?
Home Ed Gillespie

Ed Gillespie

Blog_tag

I hardly ever hear from my Agent!

11-23-09
Ed Gillespie
These were the words I heard from one of my borrowers recently and I could sense by the tone in his voice that his confidence in his agent was diminished because of sparse communications. He also told me that he calls me (not his agent) for updates on the transaction. Should this be the norm? With all the nifty tools we have (Blackberry’s etc) to communicate frequently to keep the transaction moving forward, why do so many fall short when it comes to keeping the buyer and seller informed and updated in a reasonable time frame. 1. How often do you communicate with your buyer or seller when you’re in contract? 2. How long should it take to communicate a problem to the buyer or seller once it’s discovered? 3. What are your buyers or sellers expectations regarding the frequency of communications?
10 Comments
Blog_tag

How to Buy a Bank-Owned Home

11-07-09
Ed Gillespie

http://www.youtube.com/watch?v=SM7oWKgCVo4&feature=player_embedded

How many of you out there can relate to this???

0 Comments
Blog_tag

The Lowest Rate Isn't Always the Best Deal

10-21-09
Ed Gillespie
I am often asked by clients, “What is your rate?” Interest rates are a very interesting subject to most people when financing a home. Everybody seems to want the “best rate”. What rate do you want? Or, “What is more important to you a lower cost loan or a lower interest rate loan?” Many buyers are solely focused on interest rates without considering the closing costs and actually having enough cash to close. They are also not aware of the inverse relationship between interest rates and costs or fees. Here’s an example to illustrate the difference: Is a 5.00% interest rate better that 5.25% interest rate? Let’s see. The 5.00% interested rate loan comes with an “origination fee” of 1.0% ($2,000) on a $200,000 loan. The 5.25% interest rate comes with no “origination fee” The difference in payment (principal and interest) is $30.77. I’ll ask the borrower, “Do you want to pay an additional $2,000 to close this deal, or would you rather save the $2,000 and pay an extra $30.77 each month?” Most of my first-time home-buyers struggle to come up with the minimum down payment let alone closing costs so the answer to this question is pretty obvious!
0 Comments
Blog_tag

Why do I have to give you all my personal and financial information?

10-16-09
Ed Gillespie
I get this question a lot from homebuyer’s, especially one’s who have applied for mortgages in the past. It takes more time to coach and inform buyers (new and experienced) that the current lending environment and process is much different today. Lenders/investors are requiring much more information from borrowers than in times past. This is very frustrating to many buyers. It doesn't make sense especially to the ones that tell me they pay all their bills on time. Pay stubs, two months of bank statements with all of the pages (even if they’re blank?), gift letters, taxes, divorce papers, copies of Driver’s and Social, broker fee agreements, HERA-MDIA acknowledgements etc...ad nauseum. The list seems endless. It’s important to understand the lender’s perspective when you are applying for a mortgage: they don’t know you and you are asking them to give you a lot of money. Naturally, you should expect them to ask a lot of questions so they can ensure that they are going to get their money back! The mortgage crisis has taught us many things—most notably that borrowers who were not thoroughly screened for loans had a very high default rate. So, in an attempt to keep future losses at a minimum, lenders now go overboard screening loan applicants and applications. Every buyer should expect to submit a lot of paperwork for even the most seemingly straightforward loan. Rest assured that the loan officer doesn’t want to shuffle any more papers than necessary so you won’t be asked for anything that isn’t really needed!
6 Comments
Blog_tag

The "Buyer's Choice Act"

10-14-09
Ed Gillespie
On Monday, October 12, the Governator signed AB 957, also called the “The Buyer’s Choice Act.” Effective on the 12th, buyers of residential, 1-4 foreclosed properties can select their own title and escrow companies. Previously, banks and their representatives required REO property buyers to use a particular title or escrow company. Some even went so far as to not entertain offers from buyers who requested to use a different title and escrow company. If you think this sounds unethical, unfair and detrimental to competition, you’re right! The consumer deserves the right to select local service providers that charge less and provide better customer service. I have seen the problem first hand. In the last three REO purchase transactions I have worked on here in Northern California, the asset manager for the banks required the buyer to use title and escrow companies in Southern California. The fees charged were higher than those charged by the local competitors and their service was terrible. So, take heart, home buyers! You once again have the power to choose!
6 Comments