Real Estate Loan Information

It is another great week in Healdsburg real estate. Rates are continuing along at record lows, with sales volume remaining slow and steady. Loans are difficult at best and will continue to be or tighten slightly.

If you want to be sure that you are getting your most from you lender, ask a lot of questions. How much are your fees, are there going to be points, what are the garbage fees, is there a rebate -- by the way, all loans get rebates so ask that you receive it otherwise the lender keeps it. How long is this going to take and do you ever not fund?

Remember that you will need ample escrow time,  45 days or better in most cases. They will tell you less, but I live in the real world. In regards to fees, I use one lender who just shows you exactly what the transaction will be costing him and then he just adds a fee for his time. I have found that my clients like that the best. No hidden costs -- what in the hell are wire fee s in today's world? You always do have the option of paying points rather than out of pocket to pay the fee's if you wish.

Loans are difficult in this environment. You can go and get pre-qualified, and, even better, get pre-approved. That means that the lender has taken a good look at your financial position and determined that you are pre-approved to purchase a home at a certain price point. It further spells out what the down payment amount will be.

This process is so you do not have any problems during the closing of escrow. I instruct my buyers to be very cautious in using their credit during this time. Don't make any large purchase or anything else that could affect their credit. Nowadays even with all the steps that you have taken to avoid any problems, I see situations like this.

I had two escrows ready to close recently. Both buyers had long-running successful businesses. Both buyers' spouses held long-term good jobs. Both were highly pre-approved, yet in the hours prior to closing, the lenders were asking for redundant income verification. There was intense questioning about income they recently had that was frankly nobody's business. I had to fight like mad to get them to fund. This is common so be ready to hang in there. They do close but you have to go in and stay in warrior mode.

Sales volume has been slow, but there are properties being listed and sold in very short amounts of time. Those units were priced fairly and had unique benefits such as in town, but backing to open space or a tremendous view at a good price. There are a lot of mediocre homes on the market, so if you are selling, please invest in the property and get it ready for market. It has to stand out.