Buying in California: Lender Letters
Pre-qualification Letter vs. Pre-approval Letter
Is a pre-qualification letter sufficient to make an offer in Tampa, Florida? Or I need to get a pre-approval letter.
State: Florida
Category: Buyer
City: Tampa
Zip: 33647
Dear Tampa Buyer,
Yes, a pre-approval letter is much more significant than a pre-qualification letter from your lender.
A pre-qualification means you told your lender (in writing or verbally) that you have certain assets, income, and expense and based on what you told them, you appear to be qualified.
A pre-approval letter means you told your lender (in writing or verbally) that you have certain assets, income, and expenses AND YOU PROVIDED PROOF OF THOSE ITEMS. Your lender will then provide you with a pre-approval letter on letterhead, showing his/her name and contact information, as well as your name and the amount of loan you are qualified for. Usually the letter will include language that the loan is subject to the property you choose, verifying your financials at the time of purchase, and any other lender requirements. It is very important for the loan pre-approval letter to be on the lender’s letterhead with their contact information; as agents, we have seen it all and know that some people will “fake” letters by typing them up on a blank piece of paper, hoping it will work. A well written pre-approval letters makes it very clear that you are using a quality, legitimate lender who can be reached for verification.
As Realtors, when we see offers with pre-approval letters, we tend to advise clients to consider those offers over offers with pre-quals or no letters. A pre-qualification letter is almost the same as having no loan letter; it can look like you and your agent do not know what to do to prepare a clean offer and be ready to close close escrow.
I hope this information is helpful and you quickly find the ideal property in Florida!
Denise Shur, Broker/Realtor
1:1 REALTY & OwnAmericanProperty.com
Read more: Ask a REALTOR Answer | REALTOR.com® Blogs
Top Ten Real Estate Markets for Investors (Part 1)
7. San Jose, CA.
Silicon Valley is one of the brightest spots in the national economy, creating a serious housing shortage in the San Jose market. Inventories of homes for sale are down 34.39 percent and rents surged 12.3 percent. Prices fell 16.5 percent in the housing bust, but they are recovering quickly with a median list price of $468,888 for February 2012. With soaring rents and appreciating values, San Jose seems to present an appealing environment for investors.
“New buyers can benefit from learning what seasoned investors already know: San Jose residential income property is hot,” said Denise Shur, Realtor / Broker. “Investors have to evaluate properties and make decisions more quickly, otherwise they face multiple bidders or the possibility that the property they like is already in contract.”
Click Here to read Realtor.com’s full article.
*****
This NAR article on Realtor.com supports what I’m experiencing, which is that the San Jose, California real estate market is recovering and provides a great opportunity for those interested in home and investment buying in California. However, I was surprised to learn that places like St. Louis, Missouri and Raleigh, North Caroline were among the top ten real estate markets in the United States too.
Loan Modification Extended Thru 12-31-13
Treasury Department Announcement
The Home Affordable Modification Program (HAMP) was extended by one (1) year through December 31, 2013.
This means eligible consumers will have more time to apply for a HAMP modification. Other changes to HAMP include higher Treasury paid financial incentives for Fannie Mae and Freddie Mac to forgive principal, and an easing of program guidelines so that homes occupied by renters are also now eligible for the program.
CLICK THIS LINK for more, easy to understand information about modifications and how to avoid foreclosure and avoid short-sale: http://portal.hud.gov/hudportal/HUD?src=/topics/avoiding_foreclosure
New Way to Refinance Your Upside Down Home!
Is your mortgage higher than the value of your home? Have you unsuccessfully tried to modify your home loan? There’s a new solution you should know about. This is a fantastic option if you have not been late on your mortgage during the past 6 months. I found this information through my favorite credit union, Patelco. They will take great care of you. I know first-hand because I’ve done business with them for over 10 years!
Home Affordable Refinance Program (HARP)
What is HARP?
The Home Affordable Refinance Program is a program that provides homeowners with loans owned or guaranteed by Fannie Mae an opportunity to refinance into more affordable monthly payments. This program is designed to assist homeowners in refinancing their mortgages-even if they owe more than the home’s current value.
Why refinance under HARP?
- Receive lower rates even if you have little equity in your home
- Reduce monthly mortgage payments when you refinance to a lower rate
- Save on interest over the life of your loan when you refinance to a reduced term
- No mortgage insurance is required on your new loan if none is in place on current mortgage
- No property appraisal required in some situations
How do I know if I qualify for a HARP refinance with Patelco Credit Union?
To qualify for a HARP refinance, an individual’s loan must meet the following conditions:
- Owned or guaranteed by Fannie Mae,
- Have been sold to Fannie Mae before June 1, 2009,
- Have no late payments within the last 6 months, and no more than one in the last 12 months.
How do I find out if my loan is owned or guaranteed by Fannie Mae?
There are two convenient ways to find out if your loan is owned or guaranteed by Fannie Mae:
- Members can visit www.fanniemae.com/loanlookup/
- Or call 800-7-Fannie
Does Patelco do HARP loans?
Patelco does refinance HARP loans if they are owned by Fannie Mae. We can work with you to refinance any qualifying Fannie Mae loan from any lender, as long as the loan does not currently have Mortgage Insurance (MI) obtained through another lender. Loans with current MI must go back to the current lender. If you have a qualified Patelco loan with MI, we can work with you.
Are there fees associated with a HARP loan?
All standard fees may apply, (Patelco, Title etc) but there are no special additional fees assessed through the program. Some costs may be waived if Fannie Mae deems it so through the approval process.
What types of products can you offer in a HARP refinance?
Loans refinanced under the HARP program must be done as a 20 or 30 year fixed rate term. 15 Year terms will be offered by Fannie Mae in June 2012.
What if my LTV exceeds 125%, can I get a HARP refinance?
Don’t, worry you may qualify for the following new products that are scheduled to roll out in early 2012.
- 30–year Fixed Rate, Refi plus LTV >125% – available early February 2012
- 15–year Fixed Rate, Refi Plus LTV> 125 – available June 1, 2012
- 15–year Fixed Rate, Refi Plus 105.01 thru 125% available June 1, 2012
Who do I call if I have more questions?
For help, please call one of our Home Loan experts at 800.358.8228 (option 2, then option 1).
Sale Pending! Hollywood Hills Home in Contract!
We are pleased to announce:
5880 W. Spring Oak Drive, Los Angeles, California 90068, USA
is in contract as of 12-14-11!
Welcome to The Oaks neighborhood in The Hollywood Hills. Congratulations to 1:1 REALTY for successfully negotiating an accepted Purchase Contract. Click Here for details on this California Home Buyer’s dream!
Unheard of Price of $798,000 for Hollywood Hills House in The Oaks Neighborhood
Hollywood Hills - 2 Acres Zoned Residential
5880 W. Spring Oak Drive, Hollywood Hills
Best Price of Amazing Homes to Buy in California’s most famous neighborhood —
The Hollywood Hills!
5880 W. Spring Oak Drive, Los Angeles, California 90068, USA
RARE 2.09 acres in Hollywood Hills FOR SALE
This could be the last lot of this size in all of The Oaks. And it’s walking distance to Griffith Park’s hiking trails! I’d love to build my dream home here! Maybe even add a small vineyard!
Listed at $1,030,000
Over 2 Acres of Land w/ House
The Oaks Neighborhood (next to Griffith Park)
Los Angeles, California 90068, USA
Foreclosure Fears – Mental Roadblocks
Could your fears of losing your home to foreclosure lead to you down the very path you fear? According to today’s article “Overcome mental roadblocks that lead to foreclosure” by Daily Real Estate News, that’s exactly what happens more often than you might think. Being paralyzed into inaction, is a common reaction. As a real estate professional, I see it all the time. Clients fear they may lose their home, so they withdraw. They don’t return calls, emails, or letters. Then, at the last moment (usually when it’s too late), they impulsively reach out for help. Sometimes the urgency of their situation leads them to seek help from the wrong sources, ones they would not normally consider.
If you find yourself in a situation where your house payment is beyond your income’s ability to pay. Ask for help. HUD offers free assistance online and by telephone. You can also reach out to real estate professionals like myself for free advice and guidance. I know several people who successfully negotiated real estate loan modifactions that allowed the homeowners to keep their homes and have a loan payment that was manageable. I personally negotiated 2 loan modifacations on my residence; one for my 1st mortgage which is now fixed at 2% interest rate and a 2nd modification on my second mortgage, which is now temporarily reduced to 1% for the next two years. It look lots of tears and determination and times of wanting to give up, to get it done. But I can tell you personally, it’s worth it when you succeed. I was told no several times and kept at it. I will help you do the same, if you want help.
Click here for the full article: Overcome Mental Roadblocks That Lead to Foreclosure
Is Loan Modification The Answer?
Real Estate Breaking News
by TheMLS.com
Permanant mortgage debt reductions could be key to recovery
Oct 14 2011 11:30AM
While the real estate experts and government officials have been debating on how to effectively end the real estate crisis and get the economy back on track for months, one economic expert believes that the best solution to the nation’s housing woes would be a permanent reduction of the mortgage debt.
In a recent op-ed column for The New York Times, Harvard economics professor Martin Feldstein suggests that putting a stop to falling home values requires the government to eliminate mortgage debt for individual homeowners when the total mortgage value is greater than 110 percent of the current home value. Doing so would prevent many foreclosures and short sales and in effect allow median home prices to normalize.
Feldstein recommends that the government and the banks split the difference and homeowners be relieved of the burden of paying for a severely underwater home, according to the source. While this may be a best-case scenario for both homeowners, Wall Street Pit points out some homeowners may take advantage of such an opportunity to the taxpayer’s detriment.
A reduction in the number of foreclosure properties may also make room for a spike in building starts, which could be good news for both the housing market and the economy.
I’m starting to see more and more sites dedicated to helping individuals look into the option of Loan Modifications (aka Loan Mods) instead of Short Sales and Foreclosures. Here’s a Loan modification site I want to check out: http://www.mortgage-modification-answers.com/Loan-Modification-blog.html.
IN CONTRACT! Novato Ranch, California
Novato Ranch - Listed at $539,000
Novato Ranch IN CONTRACT
Novato Ranch – Listed at $539,000
2 Wyworry Court
Novato, California, USA
Single Story, 3 bedrooms, 2 bathrooms