Thought this morning I would share with the Sacramento home buyer some important information about mortgage rates that an expert in the field of mortgage lending has written. Brian Brady who knows loans inside and out sent me an email with his latest article which deserves your time if you are considering buying a home in Sacramento.

Without further adieu...here's Brian Brady, American's #1 Mortgage Broker from San Diego Mortgage rates are finally below 6.0% again. If you're closing in October, take any rate under 6.0% and lock it in to closing. In the beginning of the month, I suggested to wait for lower rates if you were closing in the last two weeks of October. I said:

You can safely delay mortgage locks if your closing after October 17th. Delaying your lock is a bit different from a "float" recommendation. It means that you should expect lower rates and jump on one when you feel it's "good enough". The market should remain volatile. The par rate (with no yield spread premium to the originator) should drift as low as 5.625% in the next 60 days but it may have to go through 6.125% to get there.

We made it through the 6's but never lower than the original 5.875%. If I still think there is room for improvement in mortgage rates why am I recommending to lock for October closings?

My strategy is more about limiting higher rates than gambling for better rates. I try to avoid unnecessary risk by being biased to locking unless there is irrational fear. While I was dead on about the irrational fear in the mortgage-backed securities market, my timing was off. If you're closing a loan this week, and delayed your lock, I might have cost you some money.

The mortgage-backed securities markets are finally able to focus on the economy now that the drama is over on Wall Street. Economic fundamentals drive mortgage rates and the economy doesn't look real healthy. Expect rates to improve to 5.625% and fluctuate between 5.625% and 6.25% through the rest of the year.

If you're closing after November 1, 2008, delay that lock until 5.625% is available. All October closings, take what you can get today.

*****

Brian is a straight shooter and tells it like it is. He predicted this blood bath of foreclosures long before it occurred. He is a man worth reading and noting as well as following his advice. If you are a Sacramento Home Buyer make sure you discuss your loan lock with your lender and follow Brian's advice. I hope to bring you more valuable lending information in the future.

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Not to beat a dead horse to death but this is something that I think needs to be brought to the forefront for those Realtors who may be dealing with REO properties. What I am about to tell you, I am seeing in the Sacramento area.

This is very disturbing and not in the best interest of the home buyer.

As we all know, in a perfect real estate market, the Title and/or Escrow company is in the same vicinity as the property the home buyer is buying. The location of the Title company makes for an easy successful closing. Not only is the job of the Title/Escrow company in terms of getting all the necessary HOA documents etc a timely one but also the home buyer is treated in a professional manner at their signing.

Well, throw that away with the bathtub water...here come the bank owned, REO properties where the bank choses the Title/Escrow company. It seems that what we are seeing in the Sacramento region are banks choosing not only out of the area Title/Escrow companies but out of the State as well.

This is delaying closings, delaying getting proper documents, delaying, delaying, delaying...

Along with this absurdity, many of the banks are also asking for certified good faith deposit checks from the home buyer. This is something NEW that I am coming across and need to share with all of you.

Now, you ask...what is Gena so upset about?

I'll tell you.

Since the Title and Escrow companies are OUT of the AREA, there is NO courier service and the out of area Title and Escrow companies will NOT give their Fed Ex number in order to send the good faith deposit which is now a cashiers check.

What I heard today from an out of area Title Company was that agents are sending the cashiers checks in the U.S. mail. WAIT, STOP, Don't do that.

These cashier's check must be accounted for and safe-guarded to the fullest. The banks nor the Title/Escrow companies seem to care in the slightest about protecting the home buyers checks. Gone are the days of "service, professionalism and caring."

So, as our government BAILS out the BANKS with OUR Tax money, there doesn't seem to be any rules, regulations or stipulations for these banks to go by. The banks are flying by the seat of their pants and we need to do everything in our power to protect our home buyers through the hoops that the banks continue to come up with.

Keep your eyes peeled for what the banks come up with next...do you have any suggestions for the banks and asset managers assigned to Foreclosures? How can they improve or do you think they need to improve?

The federal government is sending Sacramento almost $32 million as part of the bailout in the housing market crisis. It is said that this money is to help in the deterioration of neighborhoods hit hard by foreclosures per The Sac Bee article. Hmmm

Let me get this straight.

1. First, the banks give bad loans.
2. Owners try to sell their house by Short Sale
3. Banks don't respond or accept Short Sale offers
4. Banks evict the owners
5. House is for sale as Foreclosure
6. Banks take their precious time accepting any offers
7. Meanwhile property is vacant, subject to vandalism and no longer appealing
8. Bank refuses to fix/repair property

Now, comes money from the tax payers to the same city to repair homes that the bank could not sell. Now, do you think all of these things would have happened had the banks renegotiated the loans with the original owners and left the owners in the house? Would Sacramento still need money from the federal government, nearly $32 million to fix these houses up and turn around and sell them? The city of Sacramento may pay developers to buy foreclosed properties, fix them, rent them or sell them. Looks like Sacramento will be in the real estate business and flip homes for sale.

Let's go a step further, all those homes the banks foreclosed on are not paying property taxes. Who suffers when property taxes are not paid? You guessed it, we do. Cuts have to be made by the city. It is common sense that when the economy is suffering, crime goes up. And yet, it was announced on October 17^th Sacramento police services will endure yet another $1.8 million cut. This means for you and me:

• longer wait times for 911 calls
• "After hour" response times cut for robberies, sexual assaults and burglaries
• Cut in Patrol officers
• Increase in time for response to low priority incidents

Hey, maybe we can get more bailout money from the feds after we implement these cutbacks to clean up the next mess. When will it end?

Instead of pro-active we seem to be re-active. As my father use to say..."a day late and a dollar short."

No sense in re-negotiating those loans to have homeowners stay in their houses and pay taxes, is there?

Here are ALL of the Bank-Owned Homes for Sale in the entire Sacramento County area.

If I had a dollar for every time a home buyer said,

"We love the house, but it IS the first house we've seen and we shouldn't settle on this one without seeing a lot more homes."

I'd be a wealthy woman!

But then again, my wealth would increase for every time a home buyer decided to go back to the first house and make an offer only to find that it is in Pending Sale. Then, every house is compared to the house they DIDN'T get.

How about you? In your real estate career have these words been bounced off you? Would you be wealthy, too?

On Saturday, the 18th, I received a call from new First Time Home Buyers who wanted to see a houses for sale in Roseville within a gated community. We saw 5 homes for sale and one house in particular stood out clearly above the rest.

Although the home buyers loved the house, their relatives had told them not to "jump" at that first house they saw but take their time to find just the "right" house. I could see they were struggling with this since the home was impeccable and priced well below what they had intended on spending.

But, I realized that they wanted to do their due diligence and reiterated the fact that this house might not be available once we looked at other homes during the next week or so. I sent additional homes for the home buyers to peruse on their computer and received a call on Monday, the 20th. "Gena, I think we want to make an offer on that house we saw on Sunday." Oh Yeah!!!!

What wonderful music to my ears...holding my breath I called the listing agent to see if the house was still available and there were multiple offers. We quickly got my home buyers offer in to await a response.

Today, October 22nd the word came down...drum roll ****&&^%*

Your home buyers are accepted! Whew, what a relief...I am so glad I don't have to tell another home buyer that they lost a house because they took too much time. Monday is our home inspection and these home buyers are thrilled!

Guess I won't have that dollar to put with all the rest.

A Sacramento First Time Home Buyer got the answer they have been waiting for... your loan has been approved.

That may not seem real exciting to you but to these First Time Home Buyers it means their dream of owning a home is about to come true.

Unfortunately did not call me first before getting pre-approved by a major bank that I have very little faith in and rightful so.

It is so very important to get pre-approved for a loan but do call your Realtor to get a good referral, first. Be sure to read What Every Sacramento Home Buyer Must Know.

Don't put yourself on a teeter-totter and possibly loose out on buying the house you want. Not all lenders are created equal.

Two weeks ago after spending money, time and investment of their lives these First Time Home Buyers were told their loan had been denied. In the midst of their tears and terrific stress, I quickly jumped into action and contacted the mortgage lender that I have all the faith in the world in. And he didn't let me down.

He saved the day and today I was able to tell these 1^st Time Home buyers that they will close on time and get the house that they fell in love with. Tonight I visited these home buyers to have them sign additional paperwork. But, before signing, I thought we would celebrate this great day by taking them to the house that they almost lost and let them walk through to get that "WOW" feeling back, again.

It's been an extremely stressful two weeks for this family. There is nothing like having that "WOW" feeling and these First Time Home Buyers are excited once again. Watching the kids slide down the stairs on their behinds, seeing the look on Mom and Dads face are just priceless. One of the children was so cute when I was opening the lockbox to get the keys to the house, said "is Miss Gena going to have to open our door all the time?" Kids say the funniest things.

Next week these First Time Homebuyers will sign their loan documents and by Halloween they will be in their new home. What a GREAT day this was!

Sacramento MLS where you can pick any community or city around Sacramento and see homes for sale or simply click on the search icon and pick the area you are interested in finding a home or condo for sale . This is a great place for home buyers to start their free MLS search for homes for sale. If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.

Other First Time Home Buyer Articles:

First Time Home Buyers in Sacramento-Congratulations!

First Time Homebuyer's Check-Off List-Part I

First Time Homebuyers Check-Off List-Part II-Write An Offer

Shall I Buy a House or Rent?

New Home Buyer Information You Need to Read

Important Buyer Information