Mortgage California Ranked #3 Company to Work For In Bay Area

In the Sunday edition of the Mercury News, the Bay Area News Group published their February survey results of the Top Work Places. We were ranked #3 for mid-sized companies (150 to 500 employees). The rankings were based upon surveys completed by employees which makes this honor even more special.

We also received a special award in the area of Ethics for the way we conduct business. Below are links to the rankings, our profile, the special awards listing, and information about how the rankings were compiled. Don’t miss the picture of the “worker bees” which was printed on the front page of the special section in the newspaper.

Mercury News Top Workplaces List

Mortgage California Profile

Ethics Award

Mortgage Californiamentioned in Open Communication article in SJ Mercury

Congratulations, and especially thank you, to all employees and clients for making this one of the best places in the Bay Area to work! Mortgage California is currently hiring loan officers; take a look at our website to get in contact and learn more.

“This is a huge honor, and purely reflective of all of [the employees'] individual efforts and dedication to each other,” said Rob Reid, CEO. “I am very honored to be part of this great team.”

Strong companies thrive on open communication with their employees

Mortgage Rates Set New 2011 Low...And Home Prices are on the Rise

Mortgage rates have continued their decline and have set yet another 2011 low, according to the Wall Street Journal.

A decrease in new jobs has caused the mortgage rates to fall to the lowest point of the year. The decline in fixed rates represented the eighth-straight weekly fall.

This is a result of the statement by the Bureau of Labor Statistics this week that employers did not add nearly as many private-sector jobs as they expected.

Freddie Mac’s most recent survey shed light on the lower rates, and the downward trend is continuing.

Contact me to see if you can take advantage of these low rates.

Here is an article from realtor.org on the predication on why home prices will rise...

http://www.realtor.org/rmonews_and_commentary/economy/1106_economy_homesales

Houses are More Affordable Now Than In The Last 35 Years

Statistically speaking, this is the best time to buy a home since your parents took the plunge 35 years ago, according to the housing affordability index.

But maybe you’re tired of hearing about statistical matters and just want to know how this affects your pocketbook.

If your parents bought a home in 1963, it probably cost them 43 percent of your dad’s income to finance it. If they were buying that same home right now, it would take only about 22 percent of their monthly income to finance it.

The National Association of Realtors today recommends an average of 25 percent of an individual or family pretax income. That means no more than 25 percent can be spent on mortgage payments, taxes, insurance and utilities.  Because the affordability index is now 22 percent, a home buyer would be in a better position than the association recommends.

Still, people who need a home may be confused about whether this is a good time to buy. They wonder if it will cost even less to buy a home in the future.
That isn’t likely to happen, because interest rates and inflation have a big impact on the true cost of buying a home. And both are going up.
The chief economist at Moody’s Analytics says, “Based on incomes, this is as affordable as it gets. If you can get a loan, these are pretty good times to buy.”

For renters, that is especially true. Those who are renting a nice apartment or home for $1,000 a month, for example, will typically experience a 3 percent rise in their rent per year.

At that rate, over the next 10 years, they would pay a total of $137,567 in rents.

Home Improvement Stores Evolving for Budget-Conscience Consumers

Home improvement retailers, including giants Home Depot Inc. and Lowe’s Co., are changing with the economic times. In acknowledgement of the lower-cost projects people are taking on in their homes in contrast with past remodels on new real estate and in a better market, the stores are pushing more affordable products.

Home Depot, the nation’s largest home improvement chain, is focusing its attention on more budget-friendly products for financially stressed consumers.
According to a recent AP article, Home Depot executives said that “their chain is beefing up offerings like paint and soft-sided tool storage as maintenance and repair — instead of major renovations — remain at the forefront of consumers’ minds.”
Lowe’s, on the other hand, is focusing on expanding customer services. This includes outdoor maintenance and repair. In addition, they are concerned with rising gas prices leading to consumers shopping at the closest store, which by store count, is more likely Home Depot. New locations in strategic locations are being planned.
Both chains rely heavily on seasonal changes, and are counting on an increase in purchases as the spring season appears and the weather improves.
To read more about this, take a look at the AP article here.

A House Remains a Great Shelter from the Storm

Knight Kiplinger, editor-in-chief of Kiplinger’s Personal Finance, reminds homeowners and home buyers that an investment in a home not only a sanctuary for you and your family, it also remains a great tax shelter.

 

The ability to deduct property taxes is “the last great tax shelter” and you get a tax break on a large part of the profits if you decide to sell in the future, Kiplinger says.

Kiplinger speculates that for some years to come, home values will not rise much more than the national level of inflation. Values will still rise but they won’t skyrocket, he says. That means that, unlike in the bubble years, when you buy a house now, you can’t expect to make a huge profit if you sell the house in a year or two.

But speculating in real estate is not the most important thing homebuyers are looking for. Rather, they visualize the place they want and search for more comfort, convenience and enough space, a home where they can relax and raise their families.  Some look forward to living in the same home for many years. They dream of holiday gatherings in the homestead with their children and grandchildren.

A home is the largest investment most people will ever make and it is the most desired investment.

Fortunately, thanks to the modern mortgage system, people don’t have to save for decades to afford a house.  Low mortgage interest rates give the practical-minded another reason to move forward with housing plans. While the average 30-year mortgage interest rate is about 4.17 percent, some mortgage companies are offering even lower rates. While rents rise every year, fixed mortgage payments stay the same.
Some retirees want to age in place, that is, keep their home for years after they retire. Others want to downsize. If less space is what they want, that problem is easy to solve.

It’s Spring! The Home Market is Heating Up

The big day was March 20, the first day of spring. As almost everyone knows, it begins one of the most active seasons for home searches.

For good reason: If you can dodge the April showers, the weather will be nice. Flowers coming out everywhere will tempt you to drive about and see what appeals to you. Even if you haven’t decided to take the plunge, you could find that today’s bargains are hard to resist.

Home sellers will be out there with bells on. They know that buyers, dreamers and lookers will be out in force. Whichever category you fall into, they and their real estate agents will be pleased to see you.
Agents know that the lookers and dreamers of today could be buyers in the future. The agents are available in their offices or at open houses to tell you about the finer points of buying and selling. When your time comes, you will be prepared and knowledgeable.

Visiting open houses can be more than an enjoyable Sunday afternoon activity. Visitors get an idea of what features and home designs would best suit their needs, as well as what features should be added to their list of wants. Often, they can pick up a sheet of detailed information on a home, which can be referred to later on.

In spring, there are more homes on the market than at any other time of the year. You’ll find good bargains on some foreclosures that banks are willing to sell at a reduced price. But whether or not a home that interests you is in foreclosure, the price will be less than it would have sold for a few years ago.
That doesn’t mean that sellers aren’t willing to negotiate. Many have significant reasons to sell. Some sellers have to move to another city because of their work. They want to make a move well before school begins in fall.

Other properties might be part of an estate and heirs want to make a deal. Some sellers are retired and want to move to a smaller place.

There are many reasons sellers and their agents would like to see you!

3 real estate lessons from Elizabeth Taylor

3 real estate lessons from Elizabeth Taylor | Inman News

 

Hot Tips for Home Buyers!

What Lenders Look for in Home Loan Applications

The 3 C's....

Ø   Credit

·         What are the FICO scores?

·         Are there any Judgments, Collections, Late Payments?

·         Quantity and Quality of the credit tradelines

Ø  Capability

·         Job stability and history

·         Salary versus commission/bonus income

·         Deductions

Ø  Collateral

·         Liquid funds – checking, savings, stocks, etc

·         Non-liquid funds – 401k, retirement

·         Gift funds

Avoid changes to your financial profile

Remember, lenders are looking for stability in all these categories. 

Ø  If you buy an expensive car with a loan that will affect your budget and your ability to repay a mortgage.  It can also negatively affect your scores.

Ø  Any large deposits and transfers of funds into your banking accounts have to be sourced.  It is important to document all deposits (I would say any deposits over $1000). 

Ø  Changing jobs/employers is typically done to benefit and increase your earnings and is an obvious change.  However, the lender can have additional requirements you will need to follow.  If your pay structure chanes (more commission based than salaried, or salary to hourly) this can affect how they will qualify your capability to repay the loan.

Shopping For the Right Mortgage

There are many different types of loan options available in the market.  There are fixed rates, adjustable, interest only, government, etc.  It is important that the mortgage consultant is able to explain what loan options you qualify for based on your application.  There are some important questions to ask in addition to completing an application that can help assess your strategy as well.

Ø  How long to you anticipate living in the home?

Ø  Do you expect any changes over the next several years, such as expanding your family?

Ø  Do you expect any changes in income due to promotions, relocations, retirement, and inheritance?

Ø  Are you conservative with your investments strategies?

The most important part is communication.  The home loan applicant has to communicate with their mortgage professional any changes, good or bad.  The mortgage professional has to communicate the process and programs to the home loan applicant.  This is one of the largest financial transactions most people will ever experience in their lives. 

For more information, contact:

Eileen Horan
Mortgage California
Ph: 650.645.1775 / M:831.566.9908/ EFax: 408.335.2474 eileenhoran@mortgagecalifornia.com

To Own or To Rent?

Purchasing a home requires a thoughtful decision. For some, leaving a rented apartment is difficult due to its financial flexibility; however choosing homeownership can be financially rewarding.

Here are some things to keep in mind when considering buying a home:

Undecided?

Don’t Wait Until It’s Too Late
Buyers sitting on the fence while waiting for the “prices to go down” will miss out on long-term appreciation gains and possible tax advantages.

A Smart Investment
Renting does not provide equity benefits. Make your money work for you by building equity in your own home and benefiting from possible tax advantages* as a homeowner.

Good News!

High Inventory
There is currently a greater selection of homes for sale on the market. Sellers are motivated and many homes are priced to move! That means you have a better chance of finding the home that best fits your lifestyle and needs.

Motivated Sellers
Because the market is moving more slowly, some sellers may be highly motivated to participate in special financing programs such as buying down the interest rate on your loan. This makes homeownership much more affordable than you think.

Finding the Right Loan For You
A loan consultant can provide you with a wide selection of mortgage options that have payment structures to best suit your individual needs. As a full service mortgage banker and broker, Princeton Capital can offer many loan options along with competitive pricing. They have greater control in the decision making process from start to finish, so your loan can close faster with more flexible terms.