How to Choose a Home Lender

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Obtaining a mortgage in today’s market for a future purchase or refinance can be a complex ordeal. A top financing professional can be critical in getting your offer accepted, or locking in the lowest rates and fees with the most favorable terms. Below are some questions you will want to ask, to make the best choice in choosing your residential or commercial lender or mortgage originator.

 

How will you help me determine my long and short term financial goals in relationship to buying or refinancing a property? Furthermore, which programs are best for me?

We will analyze your current financial picture, ask the right questions on what you are trying to accomplish now and in the future and then help you by setting up a plan accordingly. Questions we often ask are:

1)     How long will you live in the area?

2)     How long will you keep the property?

3)     Are you planning on doing any remodeling or adding on to the property in the future?

4)     When do you plan on retiring?

5)     Are you after cash flow or paying off the loan as quickly as possible?

6)     Plus many more…

Once we have your answers, we will advise on what loan program is best for you and what loan structure will meet your long and short term financial goals. This is done at the pre-approval appointment and reviewed again once in contract or when we lock your loan.

 

How will you help me understand the tax benefits of home financing for the future purchase of a home? We will determine your approximate tax write offs, net tax benefit, and net effective payment based on your tax bracket. Then we will compare your current mortgage payment to rent and you the benefit on a monthly basis in real dollars.

 

What is your process in assisting me so I can get my offers accepted?

We do several things that include providing a preapproval in ms-word, so then at moment’s notice the Realtor can modify the price of the preapproval to match any offer if purchasing below or at the original preapproved amount. We also call the listing agent on each offer to convey the buyers compensating factors and to differentiate the offer from everyone else’s. Lastly, we will help coordinate short closings and “as is” offers with no contingencies.

 

What methodologies will you use to lock at the “right time” and what happens if rates drop?

At 101 Loan, we use many online interactive subscription programs to track rates based on bond market activity, economic report activity and market trends. This provides our clients with the power to lock at the “right” time vs the wrong time when rates are worse. In addition, if interest rates drop, we have strong relationships to renegotiate the rate with the lender at a lower rate or pull the loan from the lender and go with another lender that is offering a more favorable rate. Having access to over 50 lenders provides a value proposition that other lenders and mortgage originators just can’t provide.

 

How long have you worked with the Realtor that referred me and what is your track record for closing on time per the contract?

We have worked with many agents throughout the bay area since 1990 and have closed over 3000 loans with a 99.99% success rate.

 

How long have you been in the business and what percentage of your business are purchases vs. refinances? 101 Loan has been providing mortgage financing services since 1990 closing an average of 75% purchase business with the remainder of refinance business from past, referred and online originated clients.

 

Can you provide me testimonials from clients that have used your services in recent past?

You bet…check out yelp at https://www.yelp.com/biz/101-loan-mortgage-campbell where we have over 200 “5 Star” reviews.

 

Do you provide personalized service?

101 Loan and his team bring over 30 years of experience to the mortgage financing transaction, offering client’s unsurpassed exemplary service, competitive rates and “out of the box” thinking. His dedication and hard work yield customized mortgage solutions quickly and efficiently. Rob’s mortgage planning services start with a detailed pre‐qualification to determine your current needs and long term goals and loan options that apply to your situation, whether purchasing or refinancing.

 

How competitive are your rates?

As a mortgage originator, we have over 50 different relationships with direct lenders, portfolio lenders and mortgage banks; ensuring our clients have access to the best loan programs and lowest rates. As a result, you will receive the most competitive interest rates and access to every loan program available.

 

How fast can you process and close my loan?

Very quickly. Most loan officers work by themselves to close their loans. Some may even have an assistant but regardless usually take a long time to provide their clients with a preapproval, let alone even close on time per the ratified purchase contract.

At 101 Loan, we have a team that plays an integral part of quickly expediting requests and closing our client’s loan. Our preapprovals take 1 to 2 business days, and our closing can take between 3 and 4 weeks dependent on the loan program or the bank, the customer chooses.

Our team includes the following:

  •   101 Loan – Owner and Senior Mortgage Planner who architects every purchase file.
  •   Renee Stephens – Senior Loan Coordinator, who reviews all files and provides the preapproval and closing estimate before any offer.

With decades of experience, our staff can quickly and efficiently process your loan ensuring a smooth and efficient closing. In general, we can close your loan quicker than our competition while still providing you with the best rates on the market.

 

Are you established?

101 Loan LLC and its agents have been providing mortgage financing solutions to consumers and the Real

Estate community for over 3 decades. 101 Loan has been providing the same services since 1990, and he is considered one of the top mortgage planner’s in the bay area for loan volume closed. This is from his strong relationships with realtors, past clients and lenders.

 

What separates us from the competition?

  •   Over 30 Years of Experience in Residential and Commercial Financing with Access to over 45 Lenders resulting in the Lowest Rates, Lowest Fees and Timely Service.
  •   Over 200 “5 Star Reviews” in Yelp, Facebook, Google and Linkedin.
  •   Expert in Reverse Mortgages and Jumbo Reverse Mortgages
  •   Access to Land, Construction and Commercial Financing.
  •   Access to All First Time Buyer Programs including FHA, VA and City Programs.

 

Contact us with any questions.

Pre-Qualification vs Pre-Approval

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The Pre‐Qualification…Your FIRST Step to Financing a Home

 

Because of the complexities of home financing and the numerous loan programs available to the general public, prequalifying must be done by a qualified loan agent (preferably a mortgage originator) in person, via e-mail or over the phone. The prequalification process is both objective and subjective. Lenders look at much more than just how much cash someone has or have much do they make. They look at the “overall picture”, for what lenders call compensating factors, of the applicant. These compensating factors include income, debt, assets, and credit. Consulting with a qualified loan agent, can help you determine which compensating factors should be emphasized to the lender.

Income

Employment and Bonus Income Commissions Income Self Employment Investment

Interest Income

Debt

Credit Card Debt Auto Loan Debt Student Loan Debt

Personal Lines of Credit

Assets

Savings and Checking Stocks, Mutuals, Bonds

401k, Pension and Stock Options

IRA’s, Profit Sharing

Credit

New Accounts Closed Accounts Derogatory Accounts Inquiries

and Liens

 

The Pre‐Approval…Solidifies Your Home Buying Position

Once an applicant is prequalified, the next step is the preapproval. This involves the lender verifying one’s income, debt, credit, and assets. This is done by sending the lender 30 days of pay-stubs,

  •   W-2’s and 1040’s for the last two years
  •   Bank statements on all assets for the last two months
  •   Verification of credit by credit report
  •   A copy of your driver’s license

 

Once the preapproval is done, the buyer strengthens their buying position. Now, buyers have a “walking credit card” to purchase a new home! Buyers should never start their home search without being preapproved. The preapproval is usually valid for 90 days (sometimes longer) as long as the applicant’s income, debt, assets, and credit have not worsened or rates have gone up or loan programs have been eliminated.

October 20, 2019

 

Ref: Prequalification for John and Jane Doe                                           (Prequalification Sample)

 

To whom it may concern,

 

Based on the information provided to me, the above referenced client qualifies for the following:

 

Max Purchase PriceDown PaymentLoan ProgramPITI PaymentType of Property
$875,00020%Fixed or Hybrid$4129/monthHome

 

Notes: The PITI payment above is based on principle, interest, taxes and insurance based on a monthly basis. Usually you only pay principle and interest on a monthly basis.

 

Tax Benefits

 

As you may know, once you purchase a home, you are entitled to the tax benefits associated with

home ownership. Below you will find the purchase prices as stated above, that provide the approximate tax write off, net tax benefit, and net effective PITI payment associated with owning versus renting.

 

Purchase PriceTax Write OffNet Tax BenefitNet Effective PITI Payment
$875,000$3308/month$793/month$3336/month

 

Notes: The above info can vary based on the actual rate, payment and household income of the borrower(s). For a more complete analysis of this benefit, please contact your CPA, tax planner or accountant.

 

Congratulations, you are now pre‐qualified. The next step is the pre‐approval process. To start this process, we will need to meet in person, and I will need you to bring the following with you:

  •   Copies of paystubs for the last 30 days.
  •   Copies of w‐2 and 1040’s for the last 2 years.
  •   Copies of bank statements for the last 2 months, for checking, savings, stock and 401k.
  •   Copy of driver’s license or passport.

 

Once you have put this list of items together, please contact me to schedule an appointment. Thank you for your time and interest.

 

Sincerely,

101 Loan

Senior Mortgage Planner

October 20, 2019

 

(Prequalification sample) 

Ref:   Pre‐Approval for Home Financing

 

Dear John and Jane,

 

This letter is to inform you have been pre‐approved for the purchase price of $875,000.00 based on 20% down. Your credit, income, debt and assets have been reviewed and are satisfactory to the lender.

 

This pre‐approval is subject to the following conditions:

 

  • Review of preliminary title report from lender.
  • Review of appraisal of property per agreed contract price by lender
  • Review of purchase contract by lender

 

Should you have any questions, please feel free to call me. Thank you for your time. Sincerely,

101 Loan

Senior Mortgage Planner

Why Are So Many People Leaving the Bay Area and California?

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Moving???

Recently I heard a stat from a Realtor that 10% of the Bay Area’s population in the last 12 to 18 months, have left the Bay Area for other areas throughout CA and abroad.  They have left for the following reasons:

  • Less or no state taxes
  • Lower home prices
  • Lower cost of living
  • Crime and homeless population plaguing our streets.
  • Traffic and congestion
  • For less politics

In addition, because of Shelter in Place (SIP) and Work From Home (WFH) companies have allowed employees to “zoom” in and work from home and not necessarily locally.  Even, my staff an I have not been in the office since March of last year and were realizing, why even have an office any longer.  In addition, so many companies like Tesla and Oracle are moving allowing employees to live and work elsewhere.  We once saw Apple move to Texas but they quickly came back.  Let’s see if that happens again with Tesla and all the other companies considering fleeing the state or Bay Area.

Lastly, I published a video on this subject with my good friend Cherie Schaller.  Cherie is a top producing agent for Sotheby’s in the Rocklin, CA area that is seeing this trend more often:

https://www.youtube.com/watch?v=lXPx33Cio2U&feature=youtu.be

If you are considering moving to to Rocklin, Roseville or surrounding areas where real estate is a fraction of the cost here. please contact Cherie at:

https://www.cherieschaller.com/

For more info on relocating out of the Bay Area or determining your purchase power, please go to https://101loan.com/purchasing-start/ or contact me at:

Best Regards,

101 Loan

Senior Mortgage Advisor

www.101Loan.com    hello@101loan.com

408-377-4123 o  650-465-8957 c

101 Loan LLC – 1601 S De Anza Blvd, Suite 260, Cupertino, CA 95014

CA DRE #01205444  NMLS #326829

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

How to Make a Strong Offer in Today’s Market

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Are you a Buyer that Keeps Getting Beat on Offers? 

Here is what we do to differentiate your offer over someone else’s, so the seller more often than not, accepts your offer:

  1. We pre-approve you, by running your credit, verifying your income via pay stubs and tax returns, confirm your assets with 2 months of bank statements and review your file to ensure there are no red flags so when you do make an offer, you make it with confidence knowing that 101 Loan has your back!
  2. We will strategize with you and your Realtor, to close in the quickest amount of time with the least amount of contingencies while keeping your risk as low as possible.
  3. At time of offer, we call the listing agent on behalf of you and your Realtor to differentiate your offer over someone else’s. (This makes the biggest difference in the eyes of the listing agent and seller)
  4. We close purchases in 30 days or less, depending on the loan program you choose.  Faster is better in the eyes of the seller!
  5. Our staff provides a timeline to you and your Realtor once you are locked; detailing each step of the transaction to ensure a smooth transaction.
  6. We ensure you know exactly what the loan will cost you once locked and then update you again on the amount needed to close, prior to signing the closing docs.
  7. Our staff will coordinate your sign-off with escrow and your agents to ensure your purchase closes on time as scheduled.
  8. We basically, “micro-manage” your purchase from start to finish to ensure everything goes as smoothly as possible.

Just watch the video, our buyer’s recently posted about their experience in working with us.  We were a team to get the job done in a timely manner while providing low rates, low fees and outstanding service.  See video at https://www.youtube.com/watch?v=vEhLPDd7sjA&feature=youtu.be.

In closing, if you are looking to purchase a property, contact the professionals at 101 Loan!

Best Regards,

101 Loan

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o  650-465-8957 c   408-608-1921 f

101 Loan – 1601 S De Anza Blvd, Suite 260, Cupertino, CA 95014

CA DRE #01205444  NMLS #326829

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Insurance Update – Fire Season is Upon Us

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Happy Friday,

Interesting week…

Things seemed to be improving financially, but then the Dow reacted with news of new Corona outbreaks (down by 5% yesterday but up today by 1.43% as of this morning).  Some good news, unemployment remains much lower here in the bay area compared to other places throughout the US and housing inventory remains low forcing home prices higher.  Great for home owners and investors but not so great for buyers.

Next, I met with my good friend, Bernard Lauper with Risk Strategies to learn what home owners should do if they own property in the suburbs or rural parts of California, as fire season is upon us, noted by the recent brush fires in San Jose and in Los Angeles.  See video at https://youtu.be/72lwrDcIN0o.

Lastly, below are our current rates.  What’s interesting is I shared this with a client, this week, and he conveyed that our 7/1 was super competitive compared with other retail banks and brokers for a few reasons.  Most retail bank are requiring 780+ fico to get the lowest rates, we don’t have that requirement.  Most retail banks require 24 months of liquid assets but don’t count retirement accounts.  We do count them.  Lastly, many retail banks are not doing cashout refi’s on jumbos, 80/10/10’s on purchases, or debt to income ratios over 38%, the list goes on, but we do.  If you want a flexible lender who is still closing purchases in 30 days or less and refi’s in 45 days or less, contact us.

Have a Great Weekend!

Best Regards,

101 Loan

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o  650-465-8957 c   hello@101loan.com e

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01205444  NMLS #326829

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

 

As requested, please see today’s best interest rates comprised of over 40 institutional and portfolio lenders throughout the United States.  For a customized quote based on your clients needs, please contact me.  Thanks.

BTW…We are still doing jumbo 80/10/10’s (10% down) and Jumbo Cashout Loans.  For more info, please contact me.  Thanks.

Have a Great Day!

 

1) 30yr Fixed Conforming ($250k – $765,600)
RateDisc. PointsAPR
2.6251.2782.759Details
2.7500.4972.823Details
2.8750.0002.899Details

 

2) 15yr Fixed Conforming ($250k – $765,600)
RateDisc. PointsAPR
2.2500.8132.429Details
2.3750.4052.496Details
2.5000.0002.522Details

 

3) 30 Year Fixed Jumbo ($765.7k and above)
RateDisc. PointsAPR
4.0000.1814.023Details
4.1250.0254.135Details
4.5000.0004.509Details

 

4) 10/1 ARM Jumbo ($765.7k and above)
RateDisc. PointsAPR
3.3752.2503.437Details
3.5001.1253.422Details
3.6250.0003.407Details

 

5) 7/1 ARM Jumbo ($765.7k and above)
RateDisc. PointsAPR
3.1252.2503.270Details
3.2501.1253.237Details
3.3750.0003.205Details

 

6) 5/1 ARM Jumbo ($765.7k and above)
RateDisc. PointsAPR
2.8752.2503.173Details
3.0001.1253.126Details
3.1250.0003.080Details

 

Specialists in Residential, Commercial and Reverse Mortgage Financing

For More Info, please
contact me at:

101 Loan
Senior Mortgage Advisor

www.101Loan.com

650-465-8957  Cell

hello@101loan.com

CA DRE Lic 01205444
NMLS #326829

Over 200 “5 Star” Reviews
on Yelp at:

http://www.yelp.com/biz/101-loan-campbell-3

Recent Market News…

https://101loan.com/blog/

 

 

 

 

 

 

 

 

 

Disclaimer: The above rates are based on 75% ltv or less with a 43% debt to income ratio or less. On Jumbo products, some programs require 9 or more month of PITI reserves. For details, please contact me. For a custom quote, specific to your needs and current financial situation, please contact us. Rates and fees are subject to change without notice or until locked in and approved by lender. 101 Loan LLC – 1601 S De Anza Blvd, Suite 260, Cupertino, CA 95014. CA DRE- License # 01205444 NMLS #326829. 101 Loan LLC is licensed by the CA Department of Real Estate. Equal Opportunity Lender.

Cash Out Refi’s Might Go Away?

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 First and Foremost…
I just read an interesting report on how lenders may eliminate cash out refinances on conforming and jumbo loans. We have seen the “add” for cash-out refinances get super expensive lately.  It appears the Federal Reserve doesn’t want borrowers pulling equity out of their homes.  They feel home values may go down due to the negative impact of Shelter in Place and Covid-19.
For more info, see quote and link below:
 
“Many lenders have eliminated or restricted cash-out refinances, financing for investment properties and some for second homes as well,” Cohn says. “Jumbo lenders have also tightened their guidelines.”
 
https://www.cnet.com/personal-finance/6-things-to-know-about-refinancing-right-now/ 
 
Next…
A listing agent in the east bay recently posted a great Yelp review on the service we provided her. I just love when we can help Realtors and their clients successfully & smoothly close on purchases. 
To view the review, click here: https://www.yelp.com/biz/101-loan-mortgage-san-jose-2  (See Testimonial from Bette dtd. 4/28/2020)
If you’d like the same care, please contact me.
 
Best Regards,
101 Loan
Senior Mortgage Advisor
www.101Loan.com
408-377-4123 o 650-465-8957 c 408-608-1921 f
101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070
101 Loan LLC – CA DRE #01205444  NMLS #326829
Products/Services/Accolades:
1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Opportunity May Be Knocking – 1st Time Buyers May Finally Have a Leg Up!

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In the Bay Area, we have been in Shelter in Place for over 30 days. Unfortunately the flattening of the COVID 19 has not reduced the curve as much as officials have hoped.  Meanwhile consumers are wondering when they will be able to go back to some normalcy in life.

In terms of Real Estate… it continues to be in demand.  Predictions state that this may not be the case in the future, unless officials come up with a plan for consumers to stay healthy but still productive.  Real Estate continues to stay high in value since inventory is so low but with consumer confidence being low and because Shelter in Place is still in affect, properties may sit on the market for longer periods.

This is creating opportunities for first time home buyers.  Because of the stock market correction, 1st Time Buyers,  don’t have to compete with buyers that were using stocks to purchase a property or that had large down payments, putting 1st Time Home Buyers into competitive position.  In addition, sellers are getting antsy, wondering why their homes are not selling or when they may sell.

For more info on the above, about the Bay Area Real Estate Market and Current rates, please tune into my You Tube channel at 101 Loan or at https://youtu.be/-3DSUCsKQVg.

For more info on the above, about the Real Estate Market locally and about current interest rates, tune into my You Tube channel..  If you would like to get pre-approved, please contact us at www.101loan.com or complete the following questionnaire at https://101loan.com/purchasing-start/.

Any questions, please contact me at https://101loan.com/contact-us/.

All The Best,

101 Loan

Owner and Senior Mortgage Planner

101 Loan LLC

Market Update and What Should Retired Homeowners Due in a Declining Stock Market…

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As for Mortgage Rates and the Stock Market…The dust has not settled.  Analysts say this week or next may be similar to the last few weeks with volatility in the market. For now, only loans of $510k or less are low in rate. Loans above $510k are expensive, “rate wise” when looking at refi options. Purchase loans are still low in rate as banks subsidize them. In regards to market volatility for this week, please see the following at https://seekingalpha.com/article/4335928-markets-are-setting-up-for-another-move-down-technically-speaking-for-week-of-3-30minus-4-3.

In Addition…Wells Fargo has announced they will only do jumbo loans for clients with $250k deposited with them and will not be doing conforming loans or government type loans (such as FHA and VA) going forward. We are glad we have access to more than one jumbo lender and access to everything else! Being a broker in this type of market does have its perks with access to multiple lenders, many of which are portfolio lenders and lenders that sell to Fannie Mae and Freddie Mac, giving our clients more loan options!

In Closing…with market devaluations, many of your retired clients may be feeling the pain or fear of seeing their portfolio or monthly income from those assets go lower. As a solution, we have access to Reverse Mortgage Financing that can help them Age in Place and eliminate stress and anxiety with the changing times. For more info, please contact me.  Any questions, please contact us.

3 Top Programs to Consider when Getting a Mortgage…

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Many of my clients have been asking why we are recommending hybrids (5/1, 7/1 and 10/1) over fixed rate mortgages (30 year & 15 year fixed loans).

We don’t recommend locking into long term fixed loans when rates are high.  Instead we recommend locking into shorter term fixed loans that still provide stable payments, but allow enough time for the next refi boom to occur when rates go lower. The technical name for this period is the recessionary period which seems to occur every 10 to 12 years (but only 5 to 6 years from now).  This is when interest rates are the lowest and the right time to lock in the a long term fixed rate or based on how long you intend to keep the property.  For more info, go to:

https://101loan.com/wp-content/uploads/2019/12/home_financing_secure_2020.pdf   (Page 10)

If you like to review your options, please contact us at:

101 Loan

Senior Mortgage Advisor

www.101Loan.com

hello@101loan.com

408-377-4123 o  650-465-8957 c

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01205444  NMLS #326829

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming and Jumbo.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Most 1st Time Buyer Programs including FHA, VA and USDA programs.

What We Do is Different!

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Some lenders provide great rates but lack service. Some lenders provide great service but lack good rates. At 101 Loan, we provide both but when it comes to making an offer on your behalf, we go the extra mile to ensure your offer is the strongest possible in the eyes of the seller. This includes the following and something most banks, brokers or credit unions don’t offer: Read more