Loan fees and Closing Costs

In the first 10 minutes of meeting a new client I’m usually asked “how much are my closing costs”?

This is such a loaded question I usually try to side-step the item and come back to it later in our conversation.  Here is why… Continue reading »

Los Angeles No Longer a Buyers Market?

Attached is a great story published today in the Los Angeles Times about the perceptions of the Los Angeles real-estate market versus the reality.  As always, real estate is all about location, location, location.  Making an offer 30% below the list price just isn’t going to work in the more desirable areas.  One way you can distinguish yourself from the 10 other offers that may be coming in on the property you want is to ensure you are fully approved with a notable lender, not just pre-qualifed with a generic form letter.   Continue reading »

Jumbo Loans Making a Comeback…

Here in California a “conforming” loan on a single family residence is capped at a loan amount of $729,750.00

Once your loan amount gets above this magic number, your loan is considered a Jumbo or Non-Conforming loan.  Jumbo loans generally carry a higher interest rate, more up front costs, and less program flexibility.

One day I will write a couple thousand words on how the secondary mortgage markets work.  For now, please just understand that in the last 18 months, jumbo loan lending has basically come to a halt.

Luckily, it looks like jumbo loan programs may be coming back to the market. Continue reading »

FHA Lending, Questions Answered

Last week I gave a seminar on FHA lending to about 100 real-estate agents from areas in Los Angeles.  Agents from Hancock Park, Los Feliz, Silver-Lake, Beverly Hills, and Westwood were all in attendance and were shocked to find out that they could get FHA financing for many of their wealthier clients.

From this seminar I received several questions regarding the limitations of FHA financing.

Here is a sample of the questions I received and my answers: Continue reading »

Mortgage Reduction Bill Fails in Senate…

Regardless of what side of the political spectrum you fall on, regardless of how you feel about capitalism, bail-outs, the current President or the Ex-President; here is a bill that truly would have helped out troubled homeowners.

With billions being handed out by the governmnent, there should have been a way to get this bill passed.  The failure of this bill is in direct contradiciton of the new President and the new Congress’ promise to help Main Street instead of Wall Street… and of course, this story was buried in the back of the LA and NY Times.

Continue reading »