Fed Rate Hike Likely Today-12/19/2018

The Federal Reserve is expected to announce that they will raise the rate at which they lend to banks from 2.25% to 2.5%.  There is a lot of politically charged talk about the move, but the Fed has been consistent with making their decisions based on market data.  The unemployment rate is at a low 3.7%, a key marker that our economy is healthy.  Not everyone is happy about the decision to raise rates:

• ·         President Trump says the move is based on meaningless numbers and that the Fed should “feel the market”.   In Great Britain there would be a pause and they’d say, “Right then, in Zimbabwe today…”.

·         Bruce Bittles of Baird says, "First, I'm concerned that if the Fed does not raise rates, they look to be bending top political will," and added. "And no. 2, they'd be admitting that economy doesn't look too great."

Not everyone is upset with the Fed’s moves – the stock market jumped up 50 points today on the anticipated announcement.

The Easterbrook Team for Your Home Loan Needs!

3 Trends in Real Estate Market

A new report by RE/MAX sampled MLS data from 53 metropolitan areas in the US and found that the number of home for sale in November declined 6.9% from October.  The report shows that inventory has declined over the last 4 consecutive months.  The report also compares the first 11 months of 2017 to 2018, showing home prices have risen 6%.

3 trends are emerging in the current market:

1.    Buyers are grappling with affordability issues and tight inventory.  Interest rates are expected to increase, edging some out of the market (we have solutions – CALL US).

2.    Sellers are unsure how to react with the prospect of a cooling market fueled by rising rates and over-heated home prices.

3.    Listings that are priced properly are still selling quickly.

History tells us that we cannot sustain rising home prices, lowering inventory, and rising interest rates – look for new trends to develop soon. All three trends underscore the importance of a professional real estate agent that can navigate an ever-changing market.

The Easterbrook Team "Makes the Loan Process Easy!"

Porch Pirates Foiled by NASA Engineer

We’re all in the housing business.  There is a current phenomenon affecting people that have packages delivered to their front doors.  YouTube sensation, Mark Rober, a NASA engineer that helped put the rover on Mars, was plagued by “porch pirates” stealing packages off his front door.  Here’s how he got his revenge – this is classic! CLICK HERE

The Easterbrook Team is Your Local Lender!

Market Now for a Strong Spring Tomorrow!

What You Do Today Will Echo 4 Months from Now

On the Easterbrook Team, we firmly believe that “getting the word out” is critical to any business.  Timing, however, is also critical to nail your sales goals.   For inspiration, we turn to our friends at Forbes Magazine:

·         23 Bulletproof Marketing Ideas for Real Estate

·         Inexpensive Marketing Ideas for Small Businesses

·         Must-Know Media Strategies for Real Estate Agents

·         4 Types of Content Real Estate Marketers Need to Be Using

·         Many More Ideas to Spark Your Marketing Genius

Here are 11 more current marketing ideas for real estate agents – CLICK HERE.

On the Easterbrook Team, we would love to partner in your success.  We have many resources for you, including a marketing team to provide custom marketing pieces.

Office Christmas Party!

Statistics show that 1 in 3 people will do something that they will regret at an office Christmas Party.  The average attendee will hear 7 pieces of gossip throughout the evening – CLICK HERE for Article

Women are Snatching Them Up in Record Numbers!

They say statistics don’t lie.  The stats are in:  

·         More single women buy homes than single men.  According to the NAR 2018 Home Buyer and Seller Generational Trends, 18% of recent home buyers were single females while only 7% were single males.

o   Women are entering marriage later in life – age 27 now, compared to 21.5 years in 1940.

o   In 1940, only 3.8% of women graduated college, compared to 30.2% now with a bachelor’s degree or higher.

o   Women professionals are on the rise – civil engineers increased by 977%, pharmacists by 434%, surgeons by 334%, and lawyers and judges by 681%.

o   According to the CSA retail site, women are quite influential. Women influence 91% of all home sales. The influence 85% of all purchases.

·         From Panel Study of Income Dynamics, having wealthy parents increases a young adult’s likelihood of owning a home by 8 percentage points. The study also found that a 10% increase in parental wealth increases a young adult’s likelihood of owning a home by 0.15 to 0.20%. If two sets of parents are identical in everything else, but wealth, and one set has $260K in wealth and another has $200K, the child of the wealthier family will have a 5-6% greater chance of owning a home than the child of the less wealthy family.  This is a strong reminder that our clients that have bought homes with children are likely to encourage their family members to buy.   

Speaking of successful women, Oprah Winfrey is worth approximately $2B.  For those looking to the New Year and change, she shares an inspirational thought on moving your life forward on her website: CLICK HERE.

The Easterbrook Team

It's November!

The year, as usual, is sailing by, and we find ourselves in November, the month of Veteran's Day and Thanksgiving. Most of us forget that there are 130,000 of our soldiers buried in other countries. Here is a moving 17-minute video of the Montfaucon cemetery,  during which the stunning question is asked, at 13:45 in the video by a young French woman guide at the cemetery, "What would we do if we were called to fight for another country's freedom?" She also states, at 13:21: ".... those soldiers didn't die for their country, they died for my country...they died for a freedom they would never experience...".

2019 Year of the Millennial!

....Statistically They Will Be Buying Your Next House!

Millennial Migration to Sacramento

Millennials are moving to Sacramento in record numbers - #3 on the top 10 cities for Millennial growth in the US.  This is no accident.  Millennials are moving to Sacramento for 3 top reasons: It’s popular among other Millennials, Sacramento has a relatively low “rich threshold”, and housing is relatively low. 

Popularity: It is well-known in millennial circles (yes, they move in packs) that Sacramento is a popular place to live.  There is lots of growth, employment, excellent schools, and plentiful recreation.  Pew Research recently did a study of all the top cities in the US.  Although California wasn’t even in the top 10 states, Sacramento was 3^rd on the list.  10,000 millennials moved here recently.  We lost 5,600 of them and were left with a net of 6,680. 

Low “Rich Threshold”: In the US, the definition of “rich” is an income of two times the median income.  Nationally, the threshold for rich is $120K per year.  To be considered rich in Sacramento, a household would have to make $104,142 or more.  This figure varies from city to city.  Sacramento has plentiful employment and also benefits from the migration of high paying tech jobs that are expanding here from the Bay Area.  If you wanted to bypass the rich threshold in Seattle, for instance, you’d have to make at least close to $150K.  Sactown is sounding pretty affordable in comparison.

Low Cost of Housing: Typically, when people move to a new area, then rent.  The average cost of rent can be a big draw or deterrent if someone is moving to an area. The average monthly rent is Sacramento is $1,292 – much less than Seattle’s average of $2,180 – and far less than the average single bedroom apartment in San Francisco of $3,500 per month! 

It’s no surprise that a group of people that are known best for their research of everything from where to get the richest cup of coffee to who serves the best avocado toast, that millennials are coming to Sacramento in record numbers.  We welcome them and congratulate them on their fine choice of place to reside (but we knew it all along).  For more info on millennial migration, CLICK HERE.

Revealing Millennial Stats

A new survey by Engel & Völkers of 1,000 HENRY (High Earners, Not Rich Yet) millennials is very revealing of their preferences and beliefs.

·         80% rely on “influencers” to make purchasing decisions. They also said that would consider hiring one as a real estate agent.

·         When asked what makes a luxury brand, 80% cited “superior quality”, while 64% cited reputation as the top factor. 47% of HENRYs surveyed consider premium price as indicate of a luxury real estate.

·         98% of HENRYs surveyed said that they rely on social media or review-based websites, like Yelp, before making a purchase.

·         Here’s the rest of the story – and it’s not on Instagram.  The top factors for HENRYs for choosing a real estate agent specifically are referrals from friends and family (59%), reputation in the local neighborhood that there are interested in (53%), and local neighborhood expertise (50%). 

HENRYs are the next generation of homebuyers.  Unlike some past generations, millennial buyers are not “captured”, but rather they will seek you out if they feel you are knowledgeable and trustworthy.  Real estate agents that wish to connect with them should position themselves as trusted advisors and sources of insider information before, during, and after the transaction. 

It’s not enough to just to a good job.  A lasting connection must be made to grow your sphere of influence with HENRYs.  The magic happens when a HENRY posts what a good experience they had after you represented them on a home purchase. 

Spookier ‘Cause It’s True!

I Know You Lion!

There’s a new trend in Chinese lending – lie detecting software.  Who needs underwriters when you’ve got a lie detector?  Ping An, a Chinese financial services conglomerate, has developed technology that tracks 54 involuntary micro-expressions to detect truthfulness. 

Don’t expect the software to be coming to the West any time soon. Imagine the lawsuits!–  To read article, CLICK HERE.

Booby-Trapped House

The bomb specialists with the FBI suspected that the Oregon house was booby-trapped.  It was confirmed when the first agent entered the front door, tripped a wire, and a shot rang out, hitting the agent in the leg.  The shot came from a concealed gun in a wheel chair. 

Agents proceeded to disarm two other booby-traps, when they discovered a hot tub, laying on it’s side, rigged to come crashing down, Indiana Jones style, on anyone that tried to open the front gate of the home. Imagine the AVID when the house is sold! To read article, CLICK HERE.

Arachnophobia to Pyromania  

A man in Fresno this month was house sitting for his parents in their suburban home.  Firefighters were called in the evening to extinguish the blazing attic. Apparently, the man, IQ unknown, was trying to kill black widow spiders in the home with a BLOWTORCH!    CLICK HERE to real article. Fortunately, no HUMANS were injured, but that didn’t stop PETA from weighing in…

Apparently, the folks at PETA were not pleased with the blowtorch method for pest eradication.  They point out that spiders are smart animals…and that “their designs are often copied by human engineers”.  Sorry, we can’t make this up. They are sending the young man a humane bug catcher.  For article, CLICK HERE.

5 Rules to the Game of Mortgage

Knowing lending guidelines is like knowing rules to a game. We often call mortgage lending “playing the game”.  When you play a game, there are rules.  You may not like them, understand their logic, or even know them. The person that knows the rules the best, however, usually wins.  We want your buyers to win all the time.

Getting a mortgage is not usually about what you should do, but rather what to avoid.  If your buyers are thinking of buying in the next 6 months, here are 5 rules of the game to help them qualify.

1.     Don’t switch from an employee to self-employed.  Salaried and hourly employees income is very straightforward.  Changing jobs is not an automatic loan decline. Changing jobs to a self-employed or 1099 borrower has a whole ‘nother set of rules. Self-employed buyers are not documented with paycheck stubs, but by verified tax returns of the past 2 years in most cases.  Without the 2 year history of self-employment, it could derail a borrower’s chances of allowing their income to qualify.  Have them call the Easterbrook Team if your borrowers are considering a job change.

2.     Balance your checkbook. Having the attitude of “my checkbook always balances – I have overdraft”, won’t cut it for some loan types.  Underwriters are required to check for irresponsible financial behavior for some loan types.  Another reason to get the Easterbrook Team involved before you “play the game”.  We can often counsel borrowers about what underwriters are looking for to give them time to clean up their checkbook.

3.     Don’t apply for new credit and/or open accounts during the loan process. Yes, your credit is monitored throughout the loan process. Don’t transfer a $5,000 credit card balance to lower your payments.  Hold off on any large purchases until close of escrow.  It could cost you your largest purchase – your house!

4.     DO sweat the small stuff.  Ignoring even a small bill of $10 can tank your credit score if it is a recent late worse – a collection.  Pay all your bills promptly – it will help you win at the loan game.  On the Easterbrook Team, we have a credit simulator that allows us to navigate past lates and collections.

5.     File your tax returns.  We know – what a hassle, right?  A little known “rule” is that lenders have buyers fill out a form called a 4506T.  This allows us to access tax transcripts for loan approval.  No transcripts?  No loan.  File those returns. 

Yes, there are lots more rules to the mortgage game.  Patty and John get out the playbook and map out a plan to win with every buyer they meet.

GSD is Our Mantra

What is GSD? Our friends at Success Magazine do a good job of defining it with help from Tina Fey, Henry Ford, Benjamin Franklin, and others – CLICK HERE.

How We Achieve Higher Customer Service

What's the number one complain borrowers have about the mortgage loan process?  Poor communication. Starting on the right foot with communication means providing your borrowers with a clear and complete list of items they will need to provide, otherwise known as an initial checklist. According to data from STRATMOR Group's MortgageSAT Borrower Satisfaction Program, giving the borrower a checklist of the information they will need to provide results in a very high Net Promoter Score (NPS) of 90. Borrowers who do not receive an upfront checklist quickly get confused and frustrated, and NPS plummets to -26.  This is a practice that we have also developed on the Easterbrook Team.  Your buyer’s satisfaction is our #1 priority.

The Upper Crust is Rising

High Net Worth Individuals (HNWI) grew last year, globally, by 13%.  Their wealth grew 16% to $31.5 Trillion. In a recently released white paper report by Luxury Portfolio International, 38% surveyed HNWI plan to purchase in the next three years. Only 23%, however, plan on selling.  Some highlights of the white paper are:

·         Purchasing a home ranks as the most obvious indicator of success worldwide.

·         Real estate is seen as a smart financial investment and driver of personal wealth.

·         HNWI’s are more likely to say the “physical space” is the most important factor in the buying decision.

If you’d like to get a copy of the white paper from LPI, CLICK HERE.

Houston, We Have a Problem

Improvenet did a survey of 2,500 people in major cities throughout the US.  The survey asked about how people felt about their neighbors.  They found 36 common annoyances and loud music topped the list.  Loud adult voices were a close second.  The top 5 cities were all in southern hot climates (sorry Houston and LA).  For the breakdown of the most annoying cities, CLICK HERE.

How would you even disclose a neighbor that was a major pain?  “Seller reports calling the cops on Mr. Neighbor for his loud parties on 4 different occasions”.  Or how would you let prospective buyers know about #8 on the list – General Grumpiness?

The good news is that Sacramento, El Dorado, and Placer Counties didn’t even make the list.  We may not be LA or New York, but we do have a pretty chill place to live. 

Teach Me How to Duffy…

Teach Me How to Dougie Duffy…

Would you spend more than $50K to make a rap video to promote your listing?  Tim Smith of Coldwell Banker did.  The property hit the market Monday, featuring 14,000 square feet in Newport on the waterfront.  The price?  $45 million.  To see the video creating all this buzz, CLICK HERE.

Freshly Squeezed Tenants!

Tenants Pressured to Buy – Rent Increases

Prop 10 notwithstanding, tenants have two clear options when faced with increasing rents – move to a lower cost area or buy.  Rents in all areas including Sacramento have hit an all-time high.  The median rent in Sacramento is $1,940 – 6.5% higher than a year ago. 

Although lower than the median rent in San Francisco ($3,460), a payment of around $2,000 can buy quite a nice home in the Sacramento area.  The deterrent for most buyers is saving up for the down payment.  But many already have the resources to buy and just don’t know it yet.

There are 1^st time homebuyer options that will allow buyer to purchase with close to $0 down.  There are also attractive conventional loans with down payments of only 3% plus closing costs. 

Another huge benefit to first timers is MCC. This program allows a 20% tax credit (not a deduction) of the interest that is paid on the loan to boost their return at the end of the year.  They will love you every January when they apply for a refund.

There’s nothing wrong with renting and not everyone should be a homeowner.  One compelling fact, however, is that, according to the Federal Reserve, the typical home owner will have five times the wealth in their lifetime than the typical renter. 

On the Easterbrook Team, we confidently believe that with our Realtor partners, we are performing a valuable community service by helping people achieve home ownership. 

The Happy Dance

Do You PIW?

On a purchase transaction, it seems that all parties - agents, lender, buyer, seller, and escrow - are all holding their collective breath waiting for the appraiser to complete their 30+ page report on the home's value - the appraisal.  All home purchases that have a loan require a home evaluation.  That doesn't mean, however, that all homes that have a loan need a full-blown appraisal.  On the Easterbrook Team, we are seeing more appraisal waivers (or PIW's- Property Inspection Waivers) generated through Fannie Mae's Desktop Underwriter (DU).  In the case of a PIW, Fannie Mae automatically generates a value in Desktop Underwriter based on the purchase price vs. value.

Home purchases that are 80% loan to value or less are eligible for the waiver.  The waiver, if granted, is generated when the loan officer runs Desktop Underwriter again right after the offer is accepted.  PIW's are only on conventional loans - Fannie and Freddie.  We also have read that Fannie Mae is planning on expanding the program to include underserved rural areas by increasing the loan to value in those areas.

If there is anything that will make a group of otherwise professional people do the Happy Dance, it's the PIW!  Call us on the Easterbrook Team to discuss the likelihood of obtaining a PIW on your next purchase transaction. 

Hurricane Florence

Our thoughts and prayers go out to all the people affected by Hurricane Florence on the east coast.  Fortunately, hurricane predictions are low for the rest of 2018.

Always remember that we are a full-service lender at the Easterbrook Team with Sierra Pacific Mortgage, offering FHA, VA, conventional, jumbo, reverse, and other specialty lending products.  We strive to be your one-stop lender that you can trust to get your transaction closed and a smile on your buyer’s face.   We pre-underwrite, in-house process, and have a great relationship with our loan closers at the main nationwide office right here in Folsom.

Condos are hot right now because of their affordability. Sierra Pacific has rolled out financing that will now make it easier to obtain a loan on condos.  Condo financing can be tricky if one individual owns more than 49% of the units, there is litigation, or there is a mix of commercial and residential in the HOA.  If you have a transaction involving a non-warrantable condo (a condominium that cannot get traditional financing), call the Easterbrook Team and ask us about one of our new products – Sierra Core. 

On the Easterbrook Team, we believe that if you have been a part of a transaction that we helped close, you become part of our loan family.  We nurture, connect with, and become a resource for everyone in our family.  No family’s perfect, but we are very proud of ours and the amount of people we’ve helped over the years.  No matter how many people we help, we always make ourselves available to new buyers.  We judge our success by how our family grows. 

Our first presentation night at 24 Hour Fitness in Folsom was a huge success.  We met with lots of folks, getting pumped, going to Zumba and spin classes, and the helpful staff that supplied us with smoothie samples.  If you aren’t on the list to join us yet, we still have some spots left in 2019.  It’s a great opportunity to meet new, health-conscious people, and expand your sphere of influence. 

Dog Buys House!

Traditionally, in the past, the husband is the one that bought the house.  Then it was the wife that swayed the most influence on the home purchase.  Now...it's Rover!  Over a third of the Millennials that purchased homes recently stated that their home purchased was influence by their pets.  “Millennials have strong bonds with their dogs, so it makes sense that their furry family members are driving home-buying decisions,” said Dorinda Smith, SunTrust Mortgage CEO. “For those with dogs, renting can be more expensive and a hassle; home ownership takes some of the stress off by providing a better living situation.” The survey also found that 42% of Millennials who had never bought a home said that their dog, or the desire to have one, would be a key factor in their decision to get on the property ladder.

We found several articles on the subject: PLACE PAW HERE, HERE, & HERE. 

Want to capture more business with Millennials?  Here's a buying guide to help Spike and Petunia find the perfect "dog house" - CLICK HERE.

All You Can Do Is Laugh

Did She Trump Herself?

We start with the Carmichael, CA, woman that gave her real estate agent specific instructions inform all buyers that she would absolutely NOT sell her house to a Trump supporter. Talk about a seller from left field.  In the end, she had to switch agents and reduce her price by $130,000 before she could get a suitable buyer.  We would have loved to take a peek at the TDS on that one… CLICK HERE . The Donald was not available for comment.

Real Estate Follies

Sometimes even the most important investment vehicle to our economy and the very shelter that we live in can be MESSED UP!   Bias, mixed messages, market bellwethers pointing in all directions – sometimes all you can do is laugh.

Realtor.com Covers All Bases on Market Prediction

Realtor.com features BOTH of these articles sharing its front page.  Wait, what?  The optimist says the glass is half full. The pessimist says the glass is half empty. The project manager says the glass is twice as big as it needs to be. The realist says the glass contains half the required amount of liquid for it to overflow.  The rest of us, well, the best we can do is to stay hydrated and try not to perspire.

Mortgage Rates Tick Down More Home Buyers Choose to Wait It Out

Interest rates for home loans decreased as trade tensions kept investors flocking to bonds, even as more would-be home buyers begin giving up.

Mortgage Rates Climb as Housing Market Loses Its Mojo

Rates for home loans surged along with the broader fixed-income market, pressuring mortgage affordability again even as housing market growth falters.

_____________________________________________________________________________

Did you hear about the guy that traded a paper clip up to buy a house?  Or perhaps that Warren Buffet, one of the richest men in the USA, still lives in the house that he bought for $31,500?  More amazing facts about our favorite topic – REAL ESTATE- can be found by CLICKING HERE.

Got Some Fence Sitters?

Another interest rate hike may be coming soon, according to the minutes of the Federal Reserve’s last policy meeting.

The minutes, released Wednesday, showed the Federal Open Market Committee discussing the possibility of raising rates soon to counter excessive economic strength, according to a Reuters report.

The Fed left rates unchanged after its July 31-Aug. 1 meeting, but policymakers are concerned that the economy is so strong that inflation could rise about the Fed’s 2% target.

No need to panic.  Let’s get your loan locked and protect your rate.  Call the Easterbrook Team.  We make the process easy.  (916) 850-6050

Non-Warrantable Condo Financing Available

Always remember that we are a full-service lender at the Easterbrook Team with Sierra Pacific Mortgage, offering FHA, VA, conventional, jumbo, reverse, and other specialty lending products.  We strive to be your one-stop lender that you can trust to get your transaction closed and a smile on your buyer’s face.   We pre-underwrite, in-house process, and have a great relationship with our loan closers at the main nationwide office right here in Folsom.

Condos are hot right now because of their affordability. Sierra Pacific has rolled out financing that will now make it easier to obtain a loan on condos.  Condo financing can be tricky if one individual owns more than 49% of the units, there is litigation, or there is a mix of commercial and residential in the HOA.  If you have a transaction involving a non-warrantable condo (a condominium that cannot get traditional financing), call the Easterbrook Team and ask us about one of our new products – Sierra Core. 

On the Easterbrook Team, we believe that if you have been a part of a transaction that we helped close, you become part of our loan family.  We nurture, connect with, and become a resource for everyone in our family.  No family’s perfect, but we are very proud of ours and the amount of people we’ve helped over the years.  No matter how many people we help, we always make ourselves available to new buyers.  We judge our success by how our family grows. 

Sacramento’s Secrets

So, you say you get around our fair city, but have your really explored all the interesting things there are to see in Sacramento?  Did you know that the streets of Old Sacramento are built up 10 feet and there are the remains of the old city below?  Check out interesting things to see in Sacramento: CLICK HERE

Do you REALLY know Folsom?

Two months after the Gold Rush began, 3 Mormon miners formed a small town east of Sacramento that eventually grew to the size of 2,500 residents.   There were 4 hotels, seven saloons, a post office, school, a cemetery, and a winery (remains pictured below).   When the Sacramento Valley Railroad extended their line out to the nearby town, Granite City (now called Folsom), Mormon Island became less popular and the population declined.  In 1856, a massive fire burned down most of Mormon Island and the town was never rebuilt.  In 1955, with the creation of Folsom Dam, the entire town of Mormon Island was buried beneath the water of Folsom Lake – cemetery and all.  When the water is low, you can still see remnants of the town.  The best time to view is late Fall.

Want to Earn More Than the Average Agent ($39,800)?

Many Realtors go into the business underfunded. According the National Association of Realtors, the average real estate agent spent $820 on promotional expenses, $750 on technology products and services, and $1,930 on vehicle expenses in 2017.  The NAR advises that before embarking on your career, make sure you set aside enough money to pay for the basics.    Here is the rest of their advice.

1. Focus on your current sphere of influence.  Many agents spend too much time and money casting a big net.  By marketing to people that already know you, you overcome the trust and familiarity factors.  Starting a geographic farm is not a bad way to go once you've established yourself, but it's always best and more economical to tab the resources that you've already acquired.

2. Don't put too much energy into something that isn't working.  Many agents, early in their career, try a lot of different things to get their business off the ground.  Hiring a business coach to help you focus on productive activities is usually money well spent.  It also helps to have a system to help track your business activities.  Programs such as Top Producer and Boomtown have been a great help to help agents contain costs and focus on what works.

3. Start delegating business as soon as possible.  New agents may feel like they have to handle all their business tasks themselves until they become more established to avoid the expense of hiring help. But bringing on an assistant could help you focus more on income-generating activities and boost your business faster.  Hiring a virtual assistant is a great first step.  Small tasks, such as maintaining a database, processing new listings, managing paperwork, and sending marking mailings to all be done virtually.

4. Shift your role to what consumers want.  Nobody wants to be sold, but everyone likes to buy.  Shift your job title from sales to customer service.  A recent poll of consumers purchasing homes said that 72% of the respondents wanted someone that is helpful.  Be that helpful agent that helps buyers and sellers get what they want and you are on the road to success. 

5. Team up with helpful partners.  Just like consumers are seeking out help Realtors, Realtors should seek out helpful partners to make the buying and selling experience a memorable one.  Always have one of two excellent title people, lenders, and pest control pros to make your job easier and make you shine.  On the Easterbrook Team, we a purchase specialists and we truly mean it when we say that "We Make the Loan Process Easy".    

More Words to Fill Your Head…

Best quote to get a first time buyer to take action.

Everyone wants to live on this street!

The Word on the Street Is…

Fed Chair Jerome Powell said in Congressional testimony that the global growth outlook "remains solid" and the US economy is in a "really good place" and the "best way forward is to keep gradually raising the federal funds rate."

The markets continue to expect the Fed to increase rates twice more this year unless we experience any crazy economic data or unexpected world events.  Most generally agree that the timing of those rate increases will be at the September and December Fed meetings.

Loss for Words?

Bernice Ross, PhD, nationally syndicated columnist, author, speaker, and sales trainer is an old-school salesperson.  You’d never want to go up against Bernice in a listing presentation.  She has some scripts that she gives up for free – CLICK HERE. 

A Testament to VA's Success

VA is the Way

Loan programs are varied in their individual benefits, but for veterans there is a clear choice that stands out among the others – the VA loan.  The VA loan offers the best rate, the highest loan to value, and lower fees than other loan programs on a veteran’s primary residence.  We’ve had the benefit of working with many veterans over the years and derive a lot of satisfaction from getting them in homes.

The Servicemen's Readjustment Act, passed by the United States Congress in 1944 created the VA loan as a benefit for all of the veterans that were returning home from World War II.  The VA is actually a guarantor of the VA loan – not the actual lender.  VA backs the veteran to allow qualified lenders to issue a low interest rate/high loan to value loan.  A testament to VA’s success – over the history of the program, 18 million VA home loans have been insured by the government.

VA is true 100% financing.  Currently in Sacramento, El Dorado, and Placer Counties, VA allows 100% financing up to $474,950.   If a borrower is buying above $517,500, then VA will allow 75% for the difference over this amount.  As an example of a $600,000 purchase, VA will allow 100% up to $517,500 and 75% of $82,500, for a down payment of $20,625 – that’s only 3.4% down!  No other financing option can match a down payment that low.  

 VA has a lot more flexibility with credit than most other loans.  They have shorter wait times after foreclosure and short sale than conventional loans.  They allow for lower FICO scores and higher debt to income ratios.   VA has a unique qualifying method.   In addition to a standard debt to income analysis, VA requires that the veteran and their family have a certain amount of money left over each month to pay for expenses.  This is one of the reasons that VA loans have one of the lowest foreclosure rates. 

Another great benefit to VA is that there is no mortgage insurance, saving the veteran a lot of money over the life of the loan.  There is a funding fee, but some veterans are exempt.  Just ask us. 

VA requires that the home the veteran is purchasing is of sound condition with no dry rot or termites.  They require a clear pest report before they will loan on the property. 

Veterans eligible for VA will have 90 consecutive days of active service during wartime, or have served 181 days of active service during peacetime, or 6+ years of service in the National Guard or Reserves.  Also, if you are a spouse of a service member who has died in the line of duty or as a result of a service-related disability , you may qualify for a VA loan eligibility.   To start the process, you’ll need your Certificate of Eligibility.   There are a few ways to obtain the C of E, but the easiest way is to call us and have us access the VA portal for you.  The Easterbrook Team makes the Loan Process Easy.