BEWARE- The Underwriter

Posted on July 27, 2010 by Jeff Dowler

Beware - The UnderwriterThe last stage in the approval of your loan is for the lender’s underwriter to review all the documents in the file – your financials, the application, the appraisal and more. The underwriter is the final decision maker on whether to approve the loan or not.

Beware that this step can take time, sometimes more time that you hope for or expect. I have had two recent situations where underwriting took more than 2 weeks beyond the agreed-upon date in the contract for removing the buyers’ contingencies.

The point here is to not be surprised IF the approval takes longer – underwriters are scrutinizing everything in more depth and it takes time.

You will also need to watch your dates in your contract so you can request the necessary extensions with the seller in time.

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On-Going Education for ME to help YOU

Posted on July 20, 2010 by Jeff Dowler

CRS - Certified Residential SpecialistI’m attending the annual convention for the Certified Residential Specialists in Las Vegas.

I’m a strong believer in continuing education about technology and strategies for me to better help my buyer clients in this challenging market and I will be sharing some of what I learned and some ways that I can better assist you accomplish your goals in this market.

Stay tuned.

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Are You a Contractor or Do You Own Your Own Business?

Posted on July 16, 2010 by Jeff Dowler

First Time Home Buyers – If you are a independent contractor or have your own business, be prepared for more grilling as you go through the loan process.

The days of no doc loans are gone, and you can certainly get a loan as a contractor or small business owner, but you are going to have to provide a lot of documentation – tax records, P and L statements, bank statements and more.

You should expect that once all the documentation gets to the underwriter you may be subject to even more scrutiny, with requests for more information which can delay your loan approval. I only say this because of a client’s experience…someone with stellar credit and no debt. The banks are much stricter now than they have been in years, and it’s not about you personally. They are just being extra cautious, and taking their time about it.

Keep in mind that if you are putting down less than 20% you will be subject to PMI (Private Mortgage Insurance) and the PMI Company will very likely scrutinize things even further after the underwriter has.

This is NOT to scare you, but to simply prepare you for a process that may take more time and require a lot more record checking. And it seems banks do this in pieces rather than all at once. And each person in the chain who reviews things looks at different items or may ask for different information.

Keep the end goal in mind as you feel the frustration mounting.

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Afraid to Ask the Question?

Posted on July 13, 2010 by Jeff Dowler

Don't be afraid to jump through the hoop - ASK QUESTIONS!As a new buyer you will likely have a ton of questions. You may feel that you know little or nothing at all about buying a home.

So what?! Ask the questions you need to ask.

In my opinion there is no question that you should not be able to ask your agent, nor should you be embarrassed or feel foolish for doing so. You may not like the answer, or your agent may not have a good answer. But withholding a question is a mistake.

You deserve, and NEED, to know. Being educated will help you make better decisions.

Afraid to ask the question?

DON’T BE!! Think how foolish you’ll feel if you don’t ask the question and later find out that you should have.

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Wait and See Moments

Posted on July 11, 2010 by Jeff Dowler

There are lots of Wait and See moments in the real estate transaction, especially these days. As a first time home buyer, these Wait and See moments can be frustrating.

For example:

  • Wait and See if you get pre-approved
  • Wait and See if you find the right house
  • Wait and See if your offer gets accepted
  • Wait and See if the inspection goes well enough to continue on in the process
  • Wait and See if the home appraises
  • Wait and See if the underwriter approves your loan
  • Wait and See if you can close on time

There’s no getting around the fact that it takes time, sometimes far longer than expected – a short sale purchase being, perhaps, the most aggravating and time consuming – so being prepared for this and having contingency plans is important.

As is being prepared for the emotions and anxiety that arise as time stretches on and goes beyond what is expected and hoped for.

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Down Payment Assistance Programs in San Diego

Posted on June 22, 2010 by Jeff Dowler

First time home buyers can no longer take advantage of the Federal First Time Home Buyer Tax Credit, but if you are in California you CAN take advantage of the first time home buyer tax credit of up to $10K that California has over a 3-year period.

Read more about the California 2010 First-Time Buyer Tax Credit

A number of first time home buyers in Southern California may also qualify for one of the down payment assistance programs in San Diego.

These programs have income (maximum) guidelines based on total household size, but they offer a pretty decent amount of money for down payments (and in some programs for closing costs). The cool thing is there are no payments until you sell the home.

Want to learn more?

Read the article I just posted on Down Payment Assistance Programs in San Diego.

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Are You Really Ready to Buy a Home?

Posted on June 3, 2010 by Jeff Dowler

Home for saleI decided to re-post this article that I wrote quite some time ago. Given the difficulties in this market, with short sales and foreclosures (REOs or bank-owned properties), knowing if you are really ready to buy is critical. Not everyone is prepared for what they have to deal with when buying a home.

And certainly being financially able is essential or you are wasting your time.

One question to ask yourself is if you are REALLY ready to buy or are you just looking right now? While you may be thinking you are ready, your behavior may suggest the time is not quite right.

The questions below will help you determine if you are truly prepared to buy…emotionally, psychologically and financially.

  • Will you be paying cash or have you arranged for financing?
  • Do you have a house or condo to sell?
  • Do you have a lease you can break or are you tick for an extended period of time?
  • If you went out today and found your dream home, what would you do?
  • Do you have a good idea of what you are looking for and what you are willing to trade off?
  • Why do you want to buy a new house? Do you have some good reasons (space, financial psychological) for wanting to buy?
  • You know yourself better than anyone. Can you HONESTLY say (and look yourself in the face in a mirror!) that you are emotionally, psychologically and financially ready to go? This is a tough one for the first time buyer, and an “unsure answer” or “I’m scared” is perfectly alright since it’s a bit step and being nervous about it is to be expected.
  • How well informed are you about the market in terms of inventory, pricing, marketing time, interest rates, etc.? It’s hard to get started on the process if you know nothing about it or the local market.

You can download some helpful forms and checklists about short sales and REOs on the home page of my website.

Visit my Savvy Buyers Page to download the “Buyer’s Lifestyle Questionnaire” and  my “What’s Important to You in Your Home Search Questionnaire.“

Posted in Psychological Stuff, The purchase process, What do I Buy? | Tagged , , , | 5 Comments

What You Should Know about Buyer’s Closing Costs

Posted on May 4, 2010 by Jeff Dowler

This article is specifically written for buyers in  California where we use escrow companies, as opposed to attorneys, to complete the transaction. But lots of this information may still apply, and it’s worthwhile to consider the overall concept – thinking ahead about your CLOSING COSTS.

Folks who have bought before will have some idea of this already, but first time buyers are often surprised at the fees they have to pay, on top of the mortgage, during their purchase. A savvy agent can, and should, share information with you about the fees you can expect, some of which depend on the price of the home.

If you aren’t being told, or the topic has not yet come up, ASK. You don’t want any big surprises.

The other thing to keep in mind is that in the case of SHORT SALES and REOs (foreclosures) the fees may be higher because the bank will not approve paying some of the normal seller-paid fees.

READ MORE: Some Home Buying Costs You ay Not Think About (Part 2 of 3) – Escrow and Closing Costs

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How to Protect Your Home From Fires

Posted on May 2, 2010 by Jeff Dowler

Be Prepared - smoke detector - Fire extinguisherSomeone kindly sent along a link to a really useful article about protecting your home from fires. So I thought I would, and should, share it.

There are links to 10 different GUIDES, some interactive, as well as a list of ACTIONS TO CONTAIN FIRES and suggestions on FIRE PREVENTION TOOLS homeowners should have. Good reading and worth sharing with friends, neighbors and family.

25 Tips to Protect Your Home From Fires

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The Obvious, and Hidden, Costs of Buying a Home

Posted on May 2, 2010 by Jeff Dowler

Hidden costs of buying a homeNo doubt buying a home these days is expensive. Particularly in some parts of the country such as Southern California.

Many of the costs are obvious, but some are expenses buyers don’t necessarily think about, or are somewhat hidden.

In this first article of 3, the focus is on the costs you may incur during the home search, as well as after you get an offer acceptance. Because some folks are backing out of deals, or having them fall apart (especially the short sales and foreclosures [REOs]), there may be fees you are paying even though you don’t end up with the home you want.

Read more about some of the home buying costs you may not think about (Part 1 of 3)

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