I view my tent ministry as a real estate professional as an honorable job. I am helping people who are in distress get a new piece of mind. On a broader sense, owning a piece of property is part of the American dream. Sadly, there are vultures out there that want to prey on the innocent with things that sound good but are pure trouble. I recently read an article by the Department of Real Estate of California and I thought I would share a few pointers with everyone.
(Note – this is written from a California standpoint, most pointers should be applicable anywhere in the US but check with a RE agent in your area if you have specific questions.)
Does a person who helps me with a short sale have to be licensed by the state?
Yes, any person who “negotiates loans…or perform services for borrowers or lenders…in connection with loans secured directly or collaterally by liens on real property… for or in expectation of compensation” must be licensed.
What is that in English? If a person wants to help you negotiate with a lender in regards to a property – that person must be licensed. This applies to anyone who wants to talk to your lender(s) on your behalf in regards to a loan secured by property.
Application – we are seeing ‘short sale negotiators’ as a new business. If they cannot produce a DRE license number then run. Also, once they give you a license number check it out against your state’s real estate license database. Some of these negotiators hire a broker to list the property which is a licensed professional. However, if THEY talk to your lender(s) they too must be licensed. Continue reading
Homebuyers and homeowners need to decide which home Mortgage loan is right for them. Then, the next step in getting a mortgage loan is to submit an application ( Uniform Residential Loan Application ). Although we try to make the loan simple and easy for you, getting a mortgage loan is not an insignificant process.
Below is a short synopsis of some loan types that are currently available.
CONVENTIONAL OR CONFORMING MORTGAGE Loans are the most common types of mortgages. These include a fixed rate mortgage loan which is the most commonly sought of the various loan programs. If your mortgage loan is conforming, you will likely have an easier time finding a lender than if the loan is non-conforming. For conforming mortgage loans, it does not matter whether the mortgage loan is an adjustable rate mortgage or a fixed-rate loan. We find that more borrowers are choosing fixed mortgage rate than other loan products.
Conventional mortgage loans come with several lives. The most common life or term of a
mortgage loan is 30 years. The one major benefit of a 30 year home mortgage loan is that one pays lower monthly payments over its life. 30 year mortgage loans are available for Conventional, Jumbo, FHA and VA Loans. A 15 year mortgage loan is usually the least expensive way to go, but only for those who can afford the larger monthly payments. 15 year mortgage loans are available for Conventional, Jumbo, FHA and VA Loans. Remember that you will pay more interest on a 30 year loan, but your monthly payments are lower. For 15 year mortgage loans your monthly payments are higher, but you pay more principal and less interest. New 40 year mortgage loans are available and are some of the the newest programs used to finance a residential purchase. Continue reading