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.

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...".

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.

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

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".    

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.

Check Out 1948!

What was the most popular phrase the year that you were born?  Interesting that many words that are part of our lexicon were "hip" back in the day.  In 1948, the newly formed Fannie Mae was all the buzz.  Check out the list 

Check it out: CLICK HERE!

The Easterbrook Team "We Make the Loan Process Easy"

9168506050 

Keep Her On Your Radar!

Economist to Watch

Have you heard of Diane Swonk? No, we hadn’t either.  Watch her here take on a British commentator over Brexit and how it relates to the US economy.

  CLICK HERE and jump to minute 1:35

Ms. Swonk is really a very interesting person.  She is dyslexic, which she says is to her credit. Among being self-aware and an economist, she has a net worth of over $2 Billion – all the more reason to check her out.  

Breaking News: Federal Reserve Assessment

The Federal Reserve upgraded its assessment of the U.S. economy today, but decided to skip another interest rate increase for now.

In a widely expected move, the central bank's policymaking Federal Open Market Committee voted unanimously to keep the target range for its benchmark rate at 1.75 percent to 2 percent.

However, the committee is widely expected to approve an increase at the September meeting, and a tweak in the language from the post-meeting statement could be a nod toward more monetary policy normalization.

The statement said the labor market has "continued to strengthen," language consistent with the June meeting.

The Loan – What to Expect

Don’t Worry, We’ve Got This

Whether online, on the phone, or in person, when you first apply for a home loan and submit your loan application, the Easterbrook Team will provide you with a list of items needed to complete your loan file. Your credit report will be run at this time. In a completed loan application, there is information provided by you and information provided by third parties. Your paperwork will include items such as your pay check stubs covering a 30 day period and your last year’s W2 forms. If you’re self-employed, you can expect to provide the last two years of both personal and business returns along with a year-to-date profit and loss statement. Once you submit all of your documentation to accompany your loan application, it can get a little quiet on your end. But that doesn’t mean nothing’s happening. Far from it.

The lender then proceeds to order necessary third party documentation. There are multiple service providers that help complete the loan application so the loan file can be submitted to the underwriter who ultimately approves the loan. Your appraisal is ordered. Title insurance is needed so a title insurance policy is ordered, and so on. You will be provided an estimate of who all these other people are and what they’re going to charge for their services. Once completed, the file goes to underwriting.

The underwriter will review the application and determine whether or not the documents and the application submitted conform to the guidelines included with the selected loan program. Once the loan meets these guidelines, loan documents are prepared and sent to your settlement agent. But sometimes, in fact most times, there will be “loan conditions.”

There are two types of loan conditions, a “prior to document” condition and “prior to funding” condition. A “prior to doc” condition means the underwriter needs something else before loan documents can be ordered. This stops the loan process. But it’s not something to be afraid of. It doesn’t mean there’s something wrong and you can’t close on your home, but it’s more likely the file is missing something important. Maybe there’s an old lien on the property that hasn’t been released or maybe the underwriter wants to see one more comparable sale in the appraisal.

A prior to funding condition means the loan papers can still be delivered to the title settlement agent but the lender won’t deliver the funds for the mortgage until this condition is fulfilled. For example, credit documents within a loan must be no older than 30 days. That means a pay check stub submitted might be more than 30 days old and you need to provide a copy of your latest.

All this paperwork and communication may seem daunting, but on the Easterbrook Team we do it every day.  Don’t worry, we’ve got this.  And as our slogan says, “We Make the Loan Process Easy”. 

Conventional 3% Down Payment & No Monthly Mortgage Insurance?

Yes! We have an exciting new conventional loan product called the Freddie Mac VLIP Mortgage (Very Low Income Purchaser).   On a VLIP Mortgage, qualified borrowers will receive a credit of 2% to be applied toward Lender Paid Mortgage Insurance LPMI.  LPMI means that the borrow will have no monthly mortgage insurance!  This is a special loan for home buyers with qualifying income less than or equal to 50% of the area median income.  Rates are excellent, 620 minimum FICO.  Call the Easterbrook Team for Details at (916) 850-6050.

Reverse Mortgages

Reverse Mortgages

As we have said many times on The Easterbrook Team, having a home is your best investment vehicle.  In retirement, having a home opens up additional options that renting retirees can only dream of.  A reverse mortgage is a unique loan for 62 year and older home owners that works just the opposite of a traditional “forward” mortgage.  Instead of paying your monthly mortgage payment from your savings, it is paid for with the equity in your home.

Reverse mortgages generally are not used for vacations or other “fun” things. The truth is that most borrowers use their loans for immediate or pressing financial needs, such as paying off their existing mortgage or other debts. Or they may consider these loans to supplement their monthly income, so they can afford to continue living in their own home longer.

Homeowners that take advantage of a reverse mortgage can obtain a single disbursement option, a fixed monthly cash option, a line of credit option, or a combination of all three, depending upon the borrower’s equity and age.

If you know of someone considering the reverse option, have them call us  at (916) 850-6050 to provide them with options.  We’d love to help them and be part of the solution to their retirement plans.

We have the official reverse mortgage consumer booklets approved by HUD!

The National Council on Aging is a respected leader and trusted partner to help people aged 60+ meet the challenges of aging.  This booklet will help you understand the benefits and challenges of this funding option.  Stop by our office to pick up a copy or you can email us for a PDF copy. 

Inquire today to start your reverse mortgage!

401K for Down Payment Understood

401K for Down Payment Understood

Why is your 401(k) an attractive source for short-term loans? Because it can be the quickest, simplest, lowest-cost way to get the cash you need. Receiving a loan is not a taxable event unless the loan limits and repayment rules are violated, and it has no impact on your credit rating. Assuming you pay back a short-term loan on schedule, it usually will have little effect on your retirement savings progress.  Since you are borrowing from yourself, your 401K plans traditionally allow you to borrow up to $50K or half the vested value on your 401K (whichever is less). 

Borrowing your down payment funds from your 401K can be a very good investment.  The benefits of buying a home (equity appreciation, forced retirement, tax benefits) greatly outweigh the small expense of a 401K loan.
Borrowing against your 401K can potentially allow you to obtain a better loan as well.  Down payment assistance programs are a great option for those that don’t have any other resources for the down payment, but they are costly with higher interest rates and fees than traditional loans. 

Most lenders, including Sierra Pacific, do not count 401K payments against your debt to income ratio, allowing you to borrow more on your home.  If you are borrowing at the maximum of your qualifications, however, it may not be a good idea to take on additional debt.

A recent article by a very reputable online magazine described borrowing against your 401K as “sabotaging your retirement”.  Ahem…your home is your most important retirement vehicle.

A word of caution though – using your 401K for acquiring a depreciable asset (big screen TV, jetskis, you get the picture) can be damaging to your retirement plan. It can also lead to serial use of your 401K as a checkbook, which your 401K was never designed to do.

Don't be scared away from a valuable liquidity option embedded in your 401(k) plan. When you lend yourself appropriate amounts of money for the right short-term reasons, these transactions can be the simplest, most convenient and lowest cost source of cash available. Before taking any loan, you should always have a clear plan in mind for repaying these amounts on schedule or earlier.

Stop Living Paycheck to Paycheck

Stop Living Paycheck to Paycheck

Let’s face it – we are in the home buying business and have a vested interest (no pun intended) in you saving your money to buy a home, but…we also have lived from paycheck to paycheck like most people.  On the Easterbrook Team, we also have a vested interest in making the word a better place and ultimately making YOU happier. 

This article is a great place to start on your road to financial recovery.  Step 4, automating your savings, is a simple revelation that will change your life.  So, go ahead, free yourself from those financial bonds and make YOUR world a better place – CLICK HERE.

The Easterbrook Team

916.850.6050

EasterbrookTeam@spmc.com

Yelp Yelp, Yelp Us Out!

We’ve been Yelped – in a good way.  We have been very fortunate to have worked with some of the most awesome agents and buyers.  Many have told us how they feel about the process on Yelp.  We invite you to share your experience too.  Thanks in advance for sharing: CLICK HERE.

The Easterbrook Team

916.850.6050

EasterbrookTeam@spmc.com

The Home Loan Workshop Has a New Time

We’ve been testing the public’s interest and availability for the Home Loan Workshop.  We’ve found that 6pm on a Thursday afternoon is a little difficult for some folks.  We’ve changed the times to 5pm and 6pm on Saturday to accommodate people’s busy schedules.  We’ve also increased the regularity of the popular classes.  Send your buyers to the website if they want more information – http:homeloanworkshop.org.

The Easterbrook Team
916.850.6050
EasterbrookTeam@spmc.com

France is On Sale

There are many castles currently on sale in France for less than a median priced home in the Bay!  Here is an article that lists 10 affordable castles currently for sale – CLICK HERE or should we say CLIQUEZ ICI.  This is a great article about an Australian couple that actually bought a chateau and is restoring it to its former glory (CLICK HERE).

The Easterbrook Team 916.850.6050 EasterbrookTeam@spmc.com

A Tsunami is Coming!

A Tsunami is Coming!

There’s a tidal wave of epic proportions of home buyers that is coming – directly from the southwest of us.  Real estate analysts predict that one third of the home buyers currently planning to buy real estate in the greater Sacramento, El Dorado, and Placer Counties areas are from the Bay Area.  North State Building Industry Association reports that they’ve checked with builders and guesses the one-third figure may be conservative at some new subdivisions.

Bay Area residents are blowing up Sacramento home developer websites, clicking through floor plans, watching promotional videos and signing up for email blasts, according to the New Home Company – a firm that is building in El Dorado Hills, downtown Sacramento and Davis.

The reasons are obvious: The median price of a Bay Area home hit $850,000 in April, according to CoreLogic, a real estate data company. That's a $100,000 increase in one year. In San Francisco, the median price hit $1.3 million. That often buys no more than a 1,600-square-foot house!  In contrast, the April median sales price for a resale home in Sacramento County was $357,000. And the median for a new home was $433,000.

As we reported in the Easterbrook Team newsletter last week, a recent survey reported that 46% of the Bay Area residents say they want to move out of the region within the next few years. They cite the high cost of living, high housing costs, traffic congestion and homelessness.
By contrast, Sacramento, El Dorado, and Placer Counties offer relative affordable housing, excellent employment opportunities, recreation, and a great central hub with an easy commute to the wineries in the foothills, Lake Tahoe and Donner Lake, and an easy drive back down to the Bay (if the former residents feel homesick).  
What can you do to ride this wave? 

·         Gear up!  If you don’t have a web presence, now would be the time to jump in.  No website?  Call us, we have recently helped several agents and even helped build one Realtor’s site from scratch for him. 

·         You can also build your online presence by affiliating with activity magnets such as Zillow, Realtor.com.

·         Facebook is still a powerhouse!  You can directly advertise homes and real estate services to Bay Area residents.

·         Open Houses – what better way to present yourself as the Sacramento Ambassador than to connect face to face with folks up from the Bay? 

Do you have any ideas to capture the wave of buyers coming soon?  Let us know.  Also, let us know how the Easterbrook Team can help you with your business.  We’d love to partner with you and help your real estate business grow!

The Easterbrook Team 916.850.6050 EasterbrookTeam@spmc.com