Catch the Wave to Homeownership While You Can!

Do not let the chance of owning a home slip away. While rates are steady and there are still properties left in the market, take a moment to see if you qualify for your first home, upgrade to a new one, or buy an investment property.

It may also be a good time to check your refinance options to lower your monthly mortgage or your rate. Call us now!

TGIF!

TGIF
Thank God I’m Financed (by RMC)
Happy Weekend Everyone!

Pre-Qualification Letters: Fact or Farce ?

Our COO came across an article published on Yahoo yesterday. It basically talked about how pre-qualification letters for buying homes are not reliable come time to purchase.

A pre-qualification letter, or prequal, is a written document stating an individual's financial capacity to purchase a property through a home loan, financing, or mortgage.

Typically, a direct lender or mortgage broker issues the prequal to the homebuyer for presentation to sellers in his or her effort to make an offer on a property.

The prequal letter includes the price of the property the buyer wants to purchase, alongside the loan-to-value (LTV) the lender is issuing. For instance, if the purchase price of a home is $500,000 the lender will indicate a 70% loan to value. Meaning the buyer has the capacity to obtain a loan of up to $350,000 to put towards the purchase of the house under a mortgage. Now, the 30% remainder may be in a form of a down payment the borrower himself is issuing or a second mortgage that he may obtain either from another lender or the same lender. A second loan will entail a separate prequal letter.

The article on Yahoo may basing its opinions on some prequal letters that may have not held true come time for the actual purchase transaction. But at Redondo Mortgage Center, we make sure that our prequals are solid. We only issue prequals upon:

1. A comprehensive loan application process 
2. Thorough review of documents borrowers need to submit (identification/taxes, credit authorization, etc.)
3. Verification of employment
4. Verification of assets: Bank statements/Retirement Fund/Other Collateral

The maximum LTV is based on different qualifications determined by several factors depending on the lender, bank or, other financial institution:

1. FICO score and other credit considerations such as  debt-to-income ratios, derogatory notations, etc.
2. Assets
3. Income
4. Liabilities
5. Job tenure

Here in the South Bay, realtors acknowledge the validity of an RMC prequal letter. Backed by nearly a quarter of a century of experience and a reputation of utmost integrity. 

If you are purchasing a home and want a good chance at purchasing your dream home, try Redondo MortgageCenter first. You may call 310-318-8999 or you may visit www.redondomortgage.com

Personal Tips in Preparing for an Appraisal

Yesterday, we had our home appraised as we are currently in the process of refinancing for a lower rate in the hopes of lowering our monthly mortgage payments.

I work Monday through Saturdays and the only convenient time for my husband and I to have an appraiser come over is on a Sunday. Luckily, the appraiser company assigned to us had professional resources who were flexible to accommodate our schedule on a weekend.

The appraiser came to our home exactly as scheduled and did the inspection, assessment, and photography in less than 30 minutes. The process was prompt, quick, and professional. I am quite certain that training and experience allotted for her to perform her evaluation in an organized manner. But as a homeowner, there are things that we had done to help make her routine extra easy.

The following are our personal preparations and are not professional opinions. However, we hope that it helps homeowners with their own appraisals:

1. Schedule a date and time convenient for you and your family. If your loan transaction is not time-sensitive, choose a day and time after you are able to organize and tidy the house. You do not have to take a day off nor stress over making the property overly presentable. Believe me, a party-look is not what the appraisers are looking at.
2. Neat and tidy version of your everyday. For a family of four, it is common to have everyday mess. You do not have to reorganize the entire house but it helps to ensure that:
• Dirty laundry is out of sight
• No dirty dishes on the sink, kitchen tops, and tables
• Toilet seats are down
• Mail and paperwork are neatly stacked
3. Clear the path. I am a mom of two little girls who leave a trail of toys wherever they walk in the house. Since my husband regularly vacuums our floors (safety measures for kids who pick-up and put everything in their mouths), it is relatively kept well. We just had to make sure that the hallways, openings, doors, and paths where the appraiser is to walk on, is clear and free of toys and other obstructions. This allots for a smooth and safe walk-through.
4. Turn on the lights and lift the blinds/curtains. Our appraiser did not have a professional camera, instead a point-and-shoot digi-cam. Lighting, both natural and built-in, help the lenses pick up as much room detail. Plus it saved us time having to turn on lights and draw the blinds in each and every room.
5. Smoke detectors properly installed. Make sure your carbon monoxide and smoke detectors are properly installed, has working batteries, and visible where they need to be. Appraisers will want to take photos of them.
6. Accessibility to heating and air conditioning systems. If your home has its own water heating and/or air conditioning system, the appraiser would like to see them. Clear its doors or contraptions of any obstruction so it is easily seen and photographed.
7. Get out of the way. Let your appraiser do her or his job. A brief, pleasant greeting is appreciated. But do not chit-chat away! Do not get offended if the appraisers are not chummy and remain professional. Their opinions are guided by a set of ethics under their profession.

So, this is how our Sunday went. It ate up less than half an hour of our time giving us a lot of room to enjoy the rest of our Sunday. Here's to wishing the value's what we hope them to be.

Our home minus the toys, mail, and laundry. But observe the box of donuts on the kitchen counter...that one, we can't do without :)

Blogged by: Aaron and Mara Gaborro

Your Dream Home Materializes Through RMC

You have worked hard long enough. Now reap the rewards of finally buying your dream home.

Redondo Mortgage Center is here for your financing needs, just as it has always been in nearly a quarter of a century.

Repeat clients and referrals attest to the excellent service we provide that is built on integrity, trust, and a commitment to helping families own homes.

When you are ready for your dream home, consult with our experienced loan officers first. We are not a bank nor a huge enterprise. You are not just a number to us. We are your neighbor and a partner in community building.

310-318-8999
www.redondomortgage.com

Steady Rates Conducive for Refinance

As mortgage rates remain stable at all-time lows, it is a conducive scenario for homeowners to look into refinancing to lower their monthly mortgage payments.

Considering property values in Los Angeles, California are consistently improving, it may be beneficial to refinance given that appreciation of your home may complement appraisal requirements.

There are various possibilities when refinancing. Here are some options you may want to look at:

1. Refinance to Lower Rate: If you wish to just lower your monthly mortgage payment , this may be the best option for you. If you refinance, for instance, from a 5% rate (at 3.789% APR) for your $600,000 home to a 3.625% rate, you will save $484.62 every month on your mortgage payments.
2. Refinance to Shorten Term: If you have the extra income and think you can pay off your loan and own your home earlier than scheduled, then you may want to refinance to a lower rate and shorter term. This may be a good idea when you anticipate retirement anytime in the next 10-15 years. Redondo Mortgage Center has various refinance programs that can help you get situated with this option.
3. Refinance to Cash Out: If your property has equity, and you need money for home improvements and repair, education, and other milestone events, then you may qualify to refinance into a lower rate then, at the same time, do a cash out transaction without necessarily obtaining a second loan.

If your situation requires a different type of refinance other than the above-mentioned, please do not hesitate to call our office for a free consultation. We have various programs that suit numerous scenarios.

You may call 310-318-8999 or visit www.redondomortgage.com for more details.