California Mortgage News

If you are considering Buying or Refinancing a home, you should know that your best option for searching for the right loan or loan company is with your local licensed Mortgage Broker and Not the banks.

RED ALERT! BORROWERS ARE PAYING TOO MUCH

The CFPB (Consumer Financial Protection Bureau – the agency of the United States government responsible for consumer protection in the financial sector) came out with a report that said that borrowers are paying too much simply because they didn’t shop for a mortgage. It basically say’s, ‘Use an Independent Mortgage Broker who offers more products at very reasonable terms rather than going to a mega retail lender or big bank’.

Mortgage brokers compete with all the big banks and have more options for loans than any single big bank. Find a licensed professional that you can trust to save you money and get the job done without having your paperwork sit on someone’s desk.

HOME BUYERS.  The first step even before starting to shop for a home is finding the right mortgage professional to help get you approved.  Without a loan approval, you will not be able to put in an offer to purchase a home. No Seller or Real Estate agent will take your offer seriously unless the offer is accompanied by a signed letter of loan approval. 

Your mortgage professional will go over the various loan types available to you and the pluses and minuses of each one.  One very important thing to consider is loan closing costs.  Most first time buyers get so excited about getting into their new home that they often forget or don’t think about the fees that are associated with home loans.  Alas, there is some good news.  Many mortgage brokers may pick up all or some of these fees, saving you buckets of cash.  Something to talk to your broker about…

If you have any questions at all, contact us a 949-888-6368 or send us an email to Broker@southcountymortgage.com

Posted in:MORTGAGE and tagged: brokermortgage
Posted by Doug Dahl on June 2nd, 2017 10:38 AM

Loan Options for Any Down Payment


You dream the common man’s dream of owning your own home. But, just like most other aspiring first-time home buyers, you don’t have the down payment. And if a study is to be believed, you are not likely to have enough for 10 percent down payment for another 8 years—and that’s when you are living in one of the more affordable states.

As per a one-of-its-kind study, it typically takes over 8 years for first-time buyers to save enough for 10% percent down payment. The time frame for those living in expensive states, like California and Hawaii, is more than twenty years.

But this doesn’t mean that you need to for so many years to buy your first home in. Thankfully, there are no down-payment and low down-payment mortgage loans available. You can take one such loan to buy your dream now.

Some of the options available to you if you don’t want to make 10 percent down payment are as follows:


Our Best Loan Option with a low down payment is…

Conventional 97
A comparatively new program, Conventional 97 is option available to consumers having a strong credit report. You need to pay 3 percent down payment, which can be a cash gift from someone in your family. And the best part of this product is, you won’t be required to pay any additional premiums for mortgage insurance (MI or PMI). This is a HUGE benefit. And with an additional 2% down or 5% total, the rate and terms are better still.

FHA Mortgage
For consumers with low FICO scores, you may still qualify for an FHA loan with a 3.5 percent down payment. FHA offers very good interest rates however, you will be required to pay FHA Mortgage Insurance which adds quite a bit to your monthly mortgage payment. And it is permanent. You must refinance this loan to remove the mortgage insurance. You cannot take an FHA loan to buy an investment property or a vacation home. However, if you plan to buy a multi-unit property and live in one of the apartments, you can use an FHA loan for it.

VA Home Loan
You must have a military background to be able to avail a VA home loan. Usually, the interest rates of VA loans are considerably lower than average mortgage rates. Therefore, you must strongly consider it even when you are thinking of making a substantial down payment. You can obtain 100 hundred percent financing through a VA-approved lender. You won’t require mortgage insurance with this program.

Nonetheless, there is one cost unique to this type of loan —VA funding fee—which you must take into account. In certain cases, the VA funding fee doesn’t apply, so check everything about it before you apply for a loan.

Apply for a Loan Now



Posted by Doug Dahl on May 20th, 2017 12:38 PM
SOUTH COUNTY MORTGAGE (www.southcountymortgage.com) has good reasons to cheer. They can now compete with the big boys of lending industry on an equal footing, all thanks to BLINK.

BLINK is an all-digital, multi-functional loan portal put together from the very reputable Broker Wholesale lender, United Wholesale Mortgage. Its launch evens the playing field in the space of digital mortgage. SOUTH COUNTY MORTGAGE and other brokers can now offer a mortgage to their customers from anywhere, anytime. With similar features as a major player advertised on the radio (name not mentioned), a key difference is Blink does not require the input of a driver’s license. In fact, the documentation required from the consumer is very limited.

Let’s see some main advantages that BLINK offers.
  • Initiate loan process from anywhere
Borrowers now no longer need to have loan applications emailed or delivered to them (or drive to their broker’s office and fill lengthy applications to initiate a loan application). With BLINK, buyers and homeowners can start a loan process from anywhere, anytime, using even a mobile device. A borrower will also be able to upload documents, e-sign documents, view their FICO scores, and keep a tab on the progress of his loan online.
Technically, you don’t even need your broker to complete the loan process. If you want, you can do it all by yourself. At the same time, seeking assistance from a broker has also become a whole lot easier. BLINK allows a broker to co-browse the screen with his client in real-time. This way your broker can easily guide you through the entire process. Further, if you wish, you can sit with your broker and initiate the loan process together.
  • Access to the latest technology
For a long time, brokers were at a huge disadvantage vis-à-vis big retail lenders in the digital mortgage space. Launch of BLINK gives brokers throughout America access to the kind of technology which until now was within reach of only large lenders. This, in turn, is a win-win situation for both brokers and borrowers, because even today majority of borrowers reach out to their broker when they need a loan.

Try Blink Now!
Posted in:MORTGAGE and tagged: BLINK
Posted by Doug Dahl on May 15th, 2017 3:38 PM

For most people, home ownership in the United States is the quintessential American dream. Many responsibilities come with owning a home, but perhaps the best aspect of owning is to have a place to call one’s own and to be free from the shackles landlords place on renters. The primary hurdle for first time home buyers consists of lack of knowledge of the types of loans available to buyers on the market. Here are 4 facts first time home buyers should know about home loans.  

Advantages. The easiest aspect of buying a home is arguably finding a place you want to call your own. Conversely, going about obtaining a home loan can be confusing. The good news is that there are certain advantages for first time home buyers. First of all, your preferred lending institution may offer to pick up your closing costs, saving you a bucket of cash. Second, down payments on your dream home may be smaller with certain lenders. Buyers should do their research, shop around, and find the best lending institution to take full advantage of saving money.

  • Disadvantages. As mentioned, first time home buyers should shop around so as to avoid, if at all possible, any disadvantages or negatives with respect to obtaining a home loan. One restriction that may arise is the amount of money an institution may be willing to loan. Of course, this is also dependent on your down payment, credit history, net income, and outstanding debt. Another restriction may consist of a limit as to what loans you may apply for. Again, these are hurdles that can be overcome and first time buyers should be aware of them and not become discouraged.

  • Types of loans. There are several types of loans on the market at present for first time home buyers. First time home buyers should do their homework and see which loan suits them best and is the most practical.

  • One of these is a FHA loan which is both fixed and adjustable. These are loans that are guaranteed by the Federal Housing Authority in the Department of Housing and Urban Development (HUD). Lenders have an affinity for these loans because the US government insures the loan. Lenders may be predisposed to permit smaller down payments and lend to first time buyers with a not so perfect credit score.

  • Another excellent home loan is the Veteran’s Administration loan, commonly referred to as a VA loan. This may be applied for if one of the home buyers is a veteran with anything other than a dishonorable discharge. Much like the aforementioned FHA loan, they are guaranteed by the Veteran’s Administration through the government. Common to these loans are no down payments, which can enable you to use your savings to remodel or renovate your home, or conversely, spend your money on furniture or appliance upgrades. 

  • Still another is called the fixed rate loan. Fixed rate loans can be advantageous for first time home buyers because changes in the economy and interest rates do not affect your monthly payments. Therefore, however long the duration of your loan is, the payment will not change. If your interest rate is 3.75%, it will remain “fixed” for the 20 or 30 year duration of your loan. 

    Finally, there is what’s known as the adjustable rate loan. These loans establish a low initial fixed interest rate, typically for the five to seven 5 years. As a consequence, your mortgage payment will be lower thus making it easier to buy your dream home. However, subsequent to the previously mentioned period of time, the interest rate will change to whatever the market value is at present.

Those dreaded closing costs. First time home buyers are typically excited about getting in a new home. As a result, they often forget that there are associated costs when buying a house. Additional fees consist of: appraisal fees, loan origination fees, cost of a title transfer, transaction settlement fees, and possibly more depending on the situation. Ensure that your lender provides you with a good faith estimate of all of these associated fees, along with your estimated house payment. This is required by law. Try to hold your lender accountable and obtain these estimates within a three-day time period subsequent to completing your loan application. As previously mentioned, your lender MAY pick up some or all of these fees.  You need to ask.

Now that you have basic information you need to know, you’re pretty well set to look for your home and start the process leading to actually owning your own home.

If you have any questions at all, contact us at 949-888-6368 or Broker@gotohome.com

Posted in:Home Loans
Posted by Doug Dahl on April 4th, 2017 4:26 PM