What Can the GSFA Platinum Program Do For Homebuyers?

First of all, it is important to know what the GSFA Platinum Program is and how it got started. The GSFA Platinum Program was originally created to help low-to-moderate income homebuyers in California purchase a home by providing down payment and/or closing cost assistance, currently in the form of a non-repayable grant.

It is essential to note that the GSFA grant is not a second mortgage and does not create a lien against the property. The grant is sized up to 5% of the loan amount and it can be used towards your homes down payment and/or closing costs associated with your home, whichever is more suitable to your situation.

The GSFA Platinum Program was created to accommodate homebuyers who were previously struggling to purchase a home. Whether you previously have a mortgage loan or not, this program is designed to help your financial situation. The non-repayable grant that we offer is available with various mortgages loans. Applicants with Conventional, FHA, VA, and USDA 30-year mortgages, are still able to apply for the GSFA grant.

Whether you have previously owned a home, or if it is your first time buying a home, the GSFA Platinum Program is not limited to first-time homebuyers. Your home-buying history doesn’t matter. Everyone who is eligible for the program is able to apply.

In order to qualify for the program, homebuyers only need to meet a few simple requirements. Applicants must have a FICO score of 640 and up, and the home they are looking to purchase must be occupied as their primary residence. Another requirement is that their qualifying income, the total income used to qualify for the mortgage, must not exceed Program Income Limits. In addition, it may not exceed the maximum debt-to-income ratio of 45%.

The GSFA Platinum Program is designed to be flexible to your individual financial situation.

Call us today for more information regarding the program and find out if you qualify!

Mark McDonell

Branch Manager

NMLS#251067

Email: Mark.McDonell3@gmail.com

Cell: 714-240-4511

5 Mortgage Myths Dispelled

If the idea of buying a house both scares and excites you, that's how it should be. If you're only intimidated or only enthusiastic, you're probably going into the mortgage-buying process ill-informed.

After all, in the years before the Great Recession, homebuyers weren't intimidated at all. For quite a few years, many people purchased homes that were out of their price range and often on shaky credit, but since lenders didn't seem concerned, homeowners weren't either.

Now, the tide has turned, and prospective homeowners are understandably more leery about making what will likely be the largest purchase of their lives. But maybe they’re too leery. According to a survey of 2,017 adults released last month by Wells Fargo & Co., the country’s largest mortgage lender, many borrowers who can afford a home may be frightened off, believing that buying a house is something they simply can't do.

If you're on either end of the spectrum – squeamish about homebuying or ecstatic with no worries whatsoever – here are some misconceptions about mortgages that may bring you to the middle.

Your credit has to be perfect or near-perfect. Two-thirds of the Wells Fargo survey respondents believed you have to have a very good credit score to buy a house. While there's no doubt that a high credit score will help you get a better loan, it isn't a deal-breaker if your score is middling. If you have some credit blemishes and financial scrape-ups but for the most part pay your bills and make steady income, you probably don't have much to worry about, experts say.

"While credit is scrutinized, some loan types will allow credit scores as low as 620," says Gaye Rowland, senior vice president of SharePlus Bank, headquartered in Plano, Texas. "Other compensating factors such as larger down payments or low debt-to-income ratios can offset some negative credit information. Every situation is analyzed individually."

You must have a down payment worth 20 percent of the purchase price. This, too, is a myth. More than 40 percent of Wells Fargo respondents believed the only way to buy a house was to give a lender at least 20 percent of the purchase price of a house.

Again, it helps to have a 20 percent down payment, particularly if you want to avoid paying monthly private mortgage insurance. But many banks and mortgage companies – especially now that the recession is several years in the rearview mirror – offer loans that don't require a down payment anywhere close to 20 percent.

"We offer many programs that either have 100 percent financing or a 3.5 percent down payment," says Alyssa Schwabe, a spokeswoman for GSF Mortgage, headquartered in Brookfield, Wisconsin.

A house is a great investment. It can be a good long-term investment, but nothing in real estate is guaranteed. Particularly if you plan to live in the home for several years, and you can’t afford to lose a lot of money, you need to think of your house as a house – not a financial tool designed to pad your investments or retirement.

"People tend to purchase their homes with a little bit too much of an investment mentality," says Michael Goodman, a certified public accountant and financial planner at Wealthstream Advisors in New York City. "I'm not saying it isn't part of your overall net worth, but the home purchase really should be for somewhere you're going to live."

He adds that some wealthy homeowners additionally get too caught up in the idea that owning a house is a way to reduce taxes. "People will tell me that they need a tax deduction or a better tax deduction, and so they're going to buy a bigger home. I think that's the stupidest thing I've heard," Goodman says.

Courtesy of: U.S. News

How To Boost A Home's Presentation To Attract Homebuyers

Presentation is one of the three most important aspects determining how quickly a home will sell.

Much like the organic produce piled neatly in handy bins at the grocery store, and the way the makeup is displayed on the mirrored counters at the department store, it is important to be thoughtful and creative regarding the house's presentation during an open house.

Here are three examples of choices to consider to improve the presentation of a house before an open house:

Make sure you are presenting potential buyers with a clean house. The grocery store doesn’t let streaks of ooze and seeds trail down from rotten tomatoes in display cases. The department store doesn’t allow broken chunks of lipstick to linger on the mirrored counters. No way!

They are both cleaned daily if not more frequently.

This must be a similar approach an agent must take before hosting an open house.  Clean the counters, carpets, cabinets, closets, doors, drawers, mirrors, windows, drapes, blinds, and everything else.

It is also important to take note of the other adjustments you may need the homeowner to make in addition to cleaning. As an agent, you need to instruct the homeowner if he or she needs to repair or replace items, remove wall paper, repaint, and/or re-carpet. Noticeable stains, scratches, chips, tears, and gaping holes in the dry wall are mental triggers to a buyer that you’re presenting damaged goods.

Today’s buyers expect perfection, and when the presentation is something less than that, they begin to deduct from their opinion of your house’s value and create resistance to even making an offer.

Stage the home properly. De-clutter and de-personalize are the first steps in this approach. Then you have to arrange and accent. It is critical for an agent to stage the home that is on the market properly and strategically. 

And lastly, as an agent, it is your job to capture the features of the home through photographs. 

A professional photographer who specializes in shooting homes for sale is essential to the presentation of the house.

These pros have wide angle lenses, special flash attachments and those lighting umbrellas.

They also have the know how to shoot the bathrooms without the glare from the mirrors and how to diffuse the blazing sun coming into your kitchen window.

And consider a drone. A video of your sparkling clean, strategically staged house will boost the presentation to the pool of buyers to the next level.

Courtesy of: OC Register

Owner of O.C.'s Ritz and Montage says its luxury hotels are up for sale

Strategic Hotels & Resorts Inc. – owner of seven California luxury hotels including two in Orange County – is up for sale.

Chicago-based Strategic – which owns the 393-room Ritz-Carlton Laguna Niguel and the 250-room Montage Laguna Beach – followed Wall Street tradition by announcing the move Monday with the otherwise oddly worded phrase: “exploring possible strategic alternatives for the company, including the potential sale of the company.”

CEO Rip Gellein said in a statement, “We are confident in our strategic plan and the value we have created for our shareholders. At the same time, we are always open to ways in which we can further maximize shareholder value.”

Of course, there was a nudge for the hotel owner’s corporate rethinking.

Technology legend Bill Gates’ investment firm – Cascade Investment Inc. – recently built a 9.8 percent stake in Strategic’s shares, then said it was interested in talking to the hotel owner about possible business combinations. Strategic's hotel portfolio includes 18 high-end hotels nationwide including San Diego’s iconic Hotel del Coronado and the Essex House overlooking Manhattan’s Central Park.

Strategic has been a longtime player in Orange County’s luxury hotel scene.

Its ownership of the Ritz dates to 1997, when a predecessor company bought it Ritz for $225 million.

In 2006, at the height of the previous hotel-buying boom, the current Strategic business – a publicly traded real estate investment trust – bought the the Ritz for $330 million. That was roughly $840,000 per room, at the time the second-highest hotel sale valuation in California.

In January, Strategic Hotels acquired the Montage for $360 million, or $1.4 million per room – a price that shattered state hotel pricing records.

The Differences between FHA and Conventional Mortgages

The mortgage market can be confusing. Many people find that the differences between FHA and conventional mortgages add to the confusion. Home buyers often do not know which mortgage is best for their situation, but there is always one mortgage that is the best mortgage. Mark McDonell from Eagle Home Mortgage can answer your questions about the differences between FHA and conventional mortgages and will help you find the best mortgage. Listed below are the important differences between FHA and conventional mortgages.

THE ADVANTAGES OF FHA LOANS:

-Down payments often as low as 3 percent

-Gift money can be used for the down payment and the closing costs

-Borrowers often find it easier to qualify for an FHA loan

-No cash reserve requirements such as 3 months of mortgage payments in savings

-No prepayment penalty

-FHA lending guidelines are not as strict as some conventional loans

-FHA loans can be transferred to the new owner when you sell your home

-FHA has an Energy Efficient Mortgage Program that allows the borrower to finance energy-efficient features as part of the home purchase price

-Fixed rate mortgages are available for 15 and 30 year loans

-Adjustable rate mortgages are available

THE ADVANTAGES OF A CONVENTIONAL LOAN:

-Mortgage insurance is not required if the mortgage is 80 percent of the loan to value (LTV) or lower

-Some loans with down payments as low as 5 percent are available

-Interest rates are generally lower

-Existing mortgage insurance can be cancelled when LTV reaches 80 percent

-Available on all types of residential property

-Buyers can have more than one conventional loan

-No limit on the loan amount

-More lenders, including banks, to choose from

-More loan term options are available

-The property standards are not as strict

The differences between FHA and conventional mortgages can be summarized as the differences between the needs of the borrowers. Borrowers who are credit challenged will find an FHA mortgage easier to obtain. While the down payment can be less and gift money can be used, FHA mortgages carry a financial penalty because mortgage insurance premiums are required. This can be the biggest disadvantage of the FHA loan since this premium can be as high as 1.5 percent of the loan at closing and 0.5 percent of the mortgage amount to be paid annually for the entire life of the loan. Many borrowers find that the differences between FHA and conventional loans come down to the qualifications of the borrower and their resources. 

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5 Tips for Finding the Best Mortgage

The smart home buyer can find more mortgage sources than they can homes. However, searching for the best mortgage available can be a challenge for the buyers if they attempt to embark on this process without the help of a mortgage professional. Real estate agents refer buyers to mortgage lenders they like, but these lenders may not have the best mortgage for the buyers. Banks will only tell the buyers about the mortgages they offer.

Here are 5 tips for finding the best deal on your mortgage:

1. A mortgage broker is the best source for finding the best deal on a mortgage. Mortgage brokers know about all of the mortgages that are available. They also know which mortgages would be best for you. This will help you obtain a mortgage without having to apply at several mortgage sources. The broker can find a mortgage that will be best for your situation. This is the top tip among the 5 tips for finding the best deal on your mortgage.

2. Ask the mortgage broker to obtain your credit reports. The credit reports and scores that mortgage companies use are not the same as the consumer reports that are available from the credit bureaus. However, it would be helpful to review your consumer credit reports from the three reporting agencies before meeting with the mortgage broker, because this will help you be prepared to discuss any problems that appear on your reports. This tip is important among the 5 tips for finding the best deal on your mortgage.

3. Be prepared to give the broker all of the details about your financial situation including your employment history. This will help the broker determine which mortgage would be the best one for you. Be very open about any negative credit experiences or short-term job histories. 

4. Compare the costs involved between different mortgages, because the costs can very. Always ask how many, if any, "points" will be required at closing. One "point" is equal to one percent of the mortgage amount. "Points" are usually charged when the interest doesn't cover the return that the lender wants. 

5. Don't look at just the interest rates, Compare the terms such as the length of the mortgage in years and whether the interest rate is fixed or variable. A variable rate means the rate can increase at various times and this will raise the monthly payment. Interest rates which are tied to the London Interbank Offered Rate (LIBOR) will increase when the LIBOR increases.