Thinking of Refinancing, Buying or Selling a Home?
This report includes an estimate of the home's value, price per sq. foot, rental value, recent compariables, growth forcasts, purchase history, nearby property information, active listings in the area, historic similar comps 0-4 years, site and living areas, market analysis for your zip code, market index, risk of decline in value, and market status, and a glossary of terms. All at no cost to you. This is a totally free service provided by your CA Mortgage Advisor! Just call or email provide the complete address property and your contact information. I will email a pdf copy of the report the same business day or within 24 hours.
If you are looking to buy or refinance an existing home loan, Jaren Dahlstrom, the California Mortgage Advisor is here for you! He has 14 years experience in brokering home loans, providing outstanding customer service, and low rates. He has the loan products and can provide really great options for your real estate home loan requirements. Become a preferred home buyer, where your personal mortgage advisor throughly reviews your credit history, assets and put together a plan that fits a loan program, with great rates to your needs. This extra care and concern will assure you get approved for the new home loan. I work with those borrowers, who are well qualified and those that have issues. Whether need to know how house they can afford, or need assistance on down down payment or credit repair. I am here to provide answers to your questions, a road to home ownership for the first time or the experienced home buyer, or the most savvy real estate investor. With outstanding mortgage interest rates, and knowledge of various loan programs that can make the difference between getting your dream home or not. Whether, you want a mortgage for the starter home with a low down payment or you are looking for a two million dollar jumbo home loan, I have options for you! I want to make dream home a reality. If you don't currently have a real estate agent, I probably have a Preferred Real Estate Agent in your area, who would love to put you in a house.
Throughout this website, I have aggregated specific information on the various available home loans, along with home purchase assistance options for your convenience. Whether you are veteran looking for VA zero down mortgage, or a no-down payment home in smaller California cities or a country property the USDA could have the program for you. Perhaps you need a restoration mortgage and which one is best? I have a loan program that meet your needs with low rates and provide loans that can save you money. First I listen, address your concerns and then work to make your dream a reality.
What a potenial home buyer shoud do 5 or 6 months prior to applying for a home loan is to check your free yearly credit report and make sure everything is correct and there are no errors.
Particuarly accounts that are not yours. Identity theft is ripe on the land and anyone can have accounts fraudulently opened by someone else. An error in a Social Security number could mean the other person bad credit items can show-up on your report.
You can contact the creditor and
the credit bureaus and contest the negative listing and get it
corrected. If you have been a victem of Identy Theft, report
it to your police department and persue it with the creditor(s),
to correct the issue. This can take some time to fix so 6 months
ahead is not to early to start. If you have questions? Call me
and I will be happy to work with you to try get the issues resolved
and get your FICO higher.
When lenders reviews your application they like to see consistency in your finances. The following will help prevent red flags and help prevent getting a loan denial or paying a higher interest rate:
1. Do NOT make major purchases like a car, furniture, jewerly, apply for credit cards or take vacations!
2. Do NOT change or quit your job!
3. Consult with your loan officer prior to depositing, moving money in or out of your account. Do desposit large amount of cash into your account a full 3 monthly bank statements prior to applying to for a mortgage. All cash must be "seasoned" that it is in your account at least 3 full months prior to your application. Lenders want to see a paper trail on all large amounts (usually $500 or more). If you sell something and have to take cash then document the transaction (who, what and when in writing). Questions, call me and I can provide the best way to deal those transactions.
4. Do NOT pay off debts or collection untll you discuss it with me or your mortgage professional. It could hurt actually hurt your FICO scores.
5. Do NOT pay the security deposit for your new home purchase with cash, always use a check. Cash is difficult to verify and it can cause real problems in getting the loan and could delay or prevent closing. Always, have a paper trail with all transactions prior and during the home buying process all the way through closing. Do NOT uae CASH always pay with a check and get and save ALL paper work for all large transactions. It is very difficult to build a paper trail after the fact. The lenders will "require" documentation to source a large cash deposit. ($500 or above). They could question even a lower amount. Avoid using cash.
6. Do NOT have your credit report pulled two many times prior to applying for a home morttgage, this includes applying for credit cards or applying for other credit, for at least 100 days prior to applying for home mortgage. Usually the "credit inquires" fall off the credit report after 90 days. Do NOT ask for new credit for many months prior to appling for a home loan. Do not go to several websites or believe TV commericals and shop your loans just for rate. Please know that your rate is determined by a lot of factors and FICO score is only one. Also, rate tend to be very compeditive and I can also suggest ways to reduce the rate you qualify. Just ask me how.
To see a comparison of this 1% down program* and a FHA Program Click Here!
Got Student Loan Debt?
Here are some examples of our great mortgage programs all based on a 30 year term, and fixed rate*:
Want to get up to $525.00 for your appraisal - you can get a credit back of your appraisal at the close of escrow on any conventional home loan purchase or refinance! Just ask Jaren how. Offer good on loans closed by Dec. 31, 2018.
Are you tired of renting - you can save more than $900 a month when buy vs. renting. on a $325,000 home with a lot less down than you might think. just 3% down payment*.
Or Want to buy a $2,000,000 property - as either for primary and second home, take advantage of competitive rate with our Jumbo home loans, with faster closings 25 days or less!
Or you don't have money for a down payment - you can still buy a home, use Gift Funds as the down payment for your new home. 100% gift funds is real option, and with no monthly mortgage insurance all saving you cash! The Gift Funds can come from family or friends, but can not be a loan, after all it is a gift! or VA and USDA borth alllow zero down payments.
Or you can take advantage of our Conventional 1% Down Program - for you the home buyer! It works like this: you put down 1%+, the lender puts up 2%** (up to $5,000) equity boost, toward the down payment giving you 3% equity at closing. All with great low rates, no mortgage insurance and a close in 30 days or less! What could that mean in your life?
Would you like an equity boost? Here is how it works as example - to buy a $400,000 home, all you need is $12,000 down or 3%, plus the closing costs. Under our program the lender will give you up to a maximum of $5,000 as an "equity boost"as part of your down payment at closing. Just think you can buy your dream home with just $7,000 plus your closing costs, your good credit and ability to make the payments! No mortgage insurance, a 30 day or less closing and really outstanding rates. Call me today and get qualified and next weekend you can be housing hunting.
**The 2% lender contribution must be applied only to the down payment. Rates and programs can change without notice. Some income restrictions apply.
Or even a larger equity boost with A DPA Grant in onjuction with a FHA loan - if you have 620 FICO score, with a owner occupied only purchase (borrower does not have to be a first time buyer) and he or she only needs a 0.50% down for a 3% DPA grant. However, if you choose a 5% DPA grant option 3.5% can be used for the down payment and the other 1.50% can be use for closing costs. Loan must be fully approved, with all PTDs cleared, prior to locking the rate. Loan amounts go up to $417,500. This program offers FREE money, which never has to be repaid. If the borrower chooses the 5% grant the rate will be just a little higher. Consider doing this loan and then in 6 months you could refinance into a FHA Streamline and lower your interest rate. Call me and let's run some numbers for you. Rates, terms and programs subject to change without notice.
So, if you wish explore any of these above programs or any other programs on the website call me and we can discuss your options, there is never a cost for my services until the loan is completed. There is a program for you! We are an equal opportunity lender, and treat everyone as we would like to treated.
*Interest rates are based on 4.294% APR, 30 year fixed inyerest rate, which was available on the day this article was written. Please note all programs are subject to change without notice. Interest rates change daily, your rate will probably be different and are based on and subject to your credit history, income, assets documentation and the loan program. These examples are for educational purpose only and are not a offer to lend or a soliicitation to borrow.
Let's talk FICO and Fannie Mae's new use of Trended Data Credit Scoring, and how that will effect you!
Frequently Asked Questions:
Q: Is there an advantage to pay points?
A: It depends: How long are keeping the mortgage 2 or 3 years or 20 years? How much can you save over that period. Do the math! If the cost is even or more than you'll save for the period you plan on holding mortgage that will answer if you should pay points or not.
Q: Can I get a mortgage after a foreclosure or BK?
A. Yes, with a conforming lender is normally 2 years after foreclosure or BK. If you want a new mortgage you can be 1 day out of foreclosure with some conventional and hard money lenders.
Q: What is lowest credit score to qualify for a home loan?
A. FHA will go down to a 500 FICO, most FHA lenders will require at least 580 FICO.
Q: What is a short sale, and should I try for one?
A: A short sale is when the home owner is tries to sell the property at or below the outstanding mortgage. Is it something you should try to buy? Well it depends, what will happen, often,
Starting September 26, 2016 Fannie Mae will require that "trended credit data" will be Incorporated into the automated underwriting system "Desktop Underwater", also known as DU. Basically, it is a two-year snap shot of a borrower's credit history with regard to how the borrower manages his or her revolving credit. Revolving credit are credit cards and other credit accounts that permit borrowers to carry a balance over time or if they pay it off in full. Revolving credit differs from other installment account with fixed amount that is paid in equal monthly payment until the loan is paid in full.
What is the reason mortgage lenders, banks and Fannie Mae are concerned about revoling debt? Because credit card debt can provide an insight on how a potential borrower might handle a mortgage. They believe this is true especially with 1st time home buyers, because if a borrower has never made mortgage payments, and they make only the minimum payment on their credit cards, this could indicate a greater credit risk. When he or she is compared to a person who always pays down or off their credit balance every month. The ladder's credit history indicates a trend that he or she will continue to make their payment and their mortgage. The people who always pay a minimum and never pay them off is assumed that they will always be in debt. Fannie Mae has determined that the previous credit reporting system did not sufficiently determine which type borrower you will be. A a minimum payment revolving credit card user history indicate he or she will always be debt. The person who makes transactions and pays them back quickly, and stays out of debt, which is the borrower they prefer. Which type are you?
So how is going to effect you?
Let's say two people have the same 750 FICO score. One with lots
of credit cards and carries a consistently high balance on All
or most of them, and the other potential borrower has just 4
cards and pays them off or keeps them at a very low balance.
With new rules the person with a consistently high balance on
several cards might be surprised to find he or she may not qualify
for that new home. Where as the person, who uses her/his credit
pays off and/or consistently keeps low balances will get home
loan. Our first example borrower will be more than likely get
turned down under this new system.
Also, a new change is that Fannie Mae will use utility bills, cell phone payment history and cable bills as "non-traditional' credit in DU, which is intended to help those with a limited "quality" credit history for mortgages. This type was used in sub prime loans to qualify people without a FICO score. Again, DU is Desk Top underwriting and is completed by the processor prior to going to the lender's underwriter. This new Fannie Mae program will soon reduce the need to produce proof of income with pay stubs. A The Work Number (TWN), which is a Equifax product will replace pay stubs to document employment and income. You will still have provide your tax returns just as in the past. Fannie Mae's intent is to reduce some paperwork and is suppose to make the lenders feel better when making home loans and allows more people to qualify for the mortgage they want.
is the offer will be presented to holder of mortgage. They may take a year to get back to you and then they will more than likely say: No! The bank or lender often prefers to foreclose and try to get more for property, when the lender can sell it directly as a REO.
Q: Why would I use a mortgage broker instead of my bank?
A: A mortgage broker represents many different lenders, with many more loan products than a single bank. A moratgage borker can fit your loan to your specific situation. Whether you are a AAA credit risk with 800 FICO, or your score is 620 and need help with your down payment. A broker can find a lender and shop for the best rates within the lending category to help you can qualify. A bank has a limited number of programs, often tighter on FICO scores and they have just one rate for you based on their guidelines. If you get approved! A mortgage broker has many more options for you!
Q. I havea lot of student loans and I am afraid that they will effect my DTI ratio negatively. What can I do, because I want to buy a home in the near future?
A. Student debt can effect whether you can qualify for a home loan or not. If you have Federal Student Loans, there are programs that can reduce your payment amounts by loan consolidation and/or also principal reduction. You can learn more about that by visiting: http://studentaid.ed.gov. Make sure you do this well ahead of when you want to qualify for a home loan. Call or contact Jaren and let's talk what you need to do. If you don't have a stated payment listed on you credit report then each student loan must be figured a 1% of the loan amount as a payment. It is important to sepeak with Jaren to avoid getting denial for home loan.
TIP: When considering buying a home with a electric solar panels find out from the seller if there is a lease or contract you must assume. This could effect your debt-to-income ratio. This monthly payment like HOA dues could be a negative to your ratio. Also, depending on the type of contract the seller of the property has with the solar company, there could be liens or other obstructions to a clean title. Unless the solar panels are free-clear, wholly owned by the seller of home, you could run into problems when it comes to title and the liens that have been put on the property. Make sure you understand what it mean to you, before making an offer on a home with solar panels. You may be buying someelse's problem ,that will soon becaome yours.
TIP: I have had several borrowers who had an excellent salary income, assets and FICO scores only to be turned down. Why, because on their Federal 1040 tax form, they reported a "Non-reimbursable Employee Business Expense". This made their Debt-to-Income Ratio to high and were turned down from getting their dream home, because they wanted to save a few hundred dollars on their income taxes. Lenders want to approve you, but you need to show you have the "ability to pay" and an expense you pay in order to earn your salary means you did not actually make what your pay stubs said you made. Think ahead when taking business expenses that off set your actual income.
TIP: So you think you want a Condo, because you don't want maintence or some other reason you like apartments over a single family home. Please beaware of the following, HOA Fees will affect your DTI ratios and you have no real control over how high they can raise over time. Also, you can be surprised by "Special Assesments " of thousands of dollars, whenever the HOA Board members decide a repair needs to done to some part of the HOA complex. Perhaps you don't use or the fix dose not effect where you actually lives or facility you use. You should also know that 90% of the condos in California, "Reserve Funds" are under funded and often by hundreds of thoursands of dollars. It is the HOA members who will have to make up those shortages sooner or latter, either by increases in fees or special assesments. For example recently in the news (Sept. 2016) the Millienimum High Rise Condo Complex in San Francisco, CA is sinking. It has sunk 16" so far, continues to sink about 1" a year. and leaning to one side by severl inches. The HOA will sue, I am sure, but that also costs money! The individual home owners will probably bear a large amount of costs even if the contractors and developers etc. are found liable. The value of units are tumbling! Would you want to be on the 16th floor during the next big earthquake? The BIG ONE is still coming they say! How long will it take before the building is yellow taged? It may be just me, but I don't like my biggest asset subject to decisions of other people. Many people love condo living and that great, just know the downside risks.
Tip: If you should happen to mistakenly paid your mortgage twice in one month and you plan get a home loan within the next 12 months, do not tell your bank to cancel that 2nd payment. Why? Well your bank will "cancell" or stop both checks even though they have different check numbers if they are for the exact amount. You won't know probably that both checks were cancelled until your mortgage lender sends a 30 day late notice. A 30 day late in 12 months will prevent you from either buying a new home or to a refinance until that 12 month anniversary has passed. Even though you tried to the right thing, but it can come back and bite you. The best thing to do is make the two payments in one month. Or call the lender and explain the situation and ask them how best resolve the problem without getting a 30 day late payment. Get another payment to your lender and replace cancelled two checks, even if it is late don't let go past the next due date! Only 30 day lates show up on your credit report, and hope the new lender doesn't call your old lender.
Tip: Think twice when you are offered by-monthly payments, to pay less interest. There has been regulator investigations that have shown that this type of payment option has been abused actually by some of the loan servicer. Even though the borrower made the by-monthly payment, they were only applied ONCE a month and not 1st and 15th as contracted. I would suggest it is better to just add an additional amount to your regular payment that would account for one or two extra payments per year. Let's say your Principal & Interest is $1,200 per month, just add an extra $100 per month to reduce the term of your 30 year loan to 24 years, or an $200 per month extra to only 16 years. Either way this will save you a pile of interest. For example: if you are 49 years old and just bought your home. If you do what I suggest, it would be paid off when you are ready to retire at 65. Let's do the math: $200 extra per month x 12 month = $2400 per year and in 16 years you will have spent $38,400.00. However not having to make payments for balance of your 30 year term adds up quickly. The mortgage payment of $1,200.00 Principal and Interest over the remaing 14 years represents a total savings of $201.600 (168 months x $1,200 = $201,600) and deducting the $38,400 you have still $163,200.00 in your pocket. That is what you would have paid out of your retirement dollars over the next 14 years for full term of loan, until you are 79 years old. How large does your nest egg have to be in retirement savings/investments to earn $1,200 per month? Imagine if you started at 30 and not 49 years old, how much more you could put into savings, or investments, and how much better your retirement could be. Just think if you put those remaining 14 years mortgage payments ($201,600.00) into your retirement investments on top of not having to pay for housing.
Tip: To make sure your credit score stays high, even if you forget to make a credit card payment by the due date. Don't worry just make the payment 10 to 12 days prior to the next statement cut off date. That way you are obviously late and will have a late fee, but the creditor does not report the late until it is actually 30 days late. So the late will not show up on your credit report.
Tip: If you have a student loans you may want to consolidate your loans and look into principal reduction there are programs available from the U.S. Department of Education. These programs even allow principal cancellation or reduction. You may want to do this prior to applying for a home loan. Contact me and I can discuss you specfic situation at 510.215.1743 or e-mail from the Contact Page. To contact the USDOE concerning your debt consolidation or student loan principal reduction at: http://studentaid.ed.gov
Please, know I am here for you your family and friends, please know that I work hard to get you the loan you deserve and a program that fits your needs. I have years of experience working closely with you and your real estate agent. We have the loan programs, really great rates and outstanding customer service. As you can see from this site the programs and home assistance programs can be confusing and some time complicated. That is why I am here. Call me if you have questions or just need advice. You can also ontact me by filling out some basic information on the contact page
Getting Married? Do you want to use wedding gifts to purchase a primary resdence?
Well now you can check out the changes to Freddie Mac's guidelines to the right. Call your CA Mortgage Advisor: Jaren Dahlstrom for details.
Call Today: 510.215.1743
Fannie Mae - Max Allowable DTI, Disputed Tradelines, ARM LTV Ratios, Self Employment Documentation, Employment & Income updates, Property Inspection Waivers, Employment Offers (Salary Offer Income Proof), Student Loan Updates Cash Out Refinance, Home buyer Education Updates, Treatment of Timeshares, and Multiple Property Financed Updates. To see the Fannie Mae Updated Guildlines for Desktop Underwriting click here. Or contact Jaren directly click the red button or call at the number below.
Freddie Mac - You can now use weddng gifts as part of your purchase funds for a primary residence. This like all cash gifts have certain requirements as to how those gifts are made. They must follow specific documentation & timing requirements to certify that they are wedding gifts and not loans. Contact Jaren for specific details. Click on the red button below or call: 510.215.1743.
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