Fannie Mae Mortgage Guideline Changes

Thank you Brian Woolley of HomeBridge Financial Services

for providing this information to share with you all!

Nice changes by Fannie Mae:

Debts Paid By Others – this is big!  If you can prove that a debt has been paid by another party for 12 months, it no longer needs to be counted in their debt ratios.  Previously, the debt must have been a joint account with the paying party.

Properties Recently Listed For Sale/Cash-Out Refinances – Fannie Mae will no longer require a 6 month waiting period for a homeowner to take cash out of the property if it has been listed for sale.  It would just need to be taken off the market before funding the cash-out refinance.

Student Loans – Fannie Mae will now accept the payment reported on the credit report.  Many people have income based payments that were previously not allowed and we were to use a higher payment amount for underwriting. 

Student Loan Refinance – if a borrower refinances a home and uses equity to pay off student loans, Fannie Mae will not consider it a “cash-out” refinance and have “cash-out” fees associated with the rate.

Truncated Account Numbers on Bank/Asset Statements – in order to help borrowers protect non-public information, Fannie Mae no longer requires the full account number showing on the bank/asset statements as long as the last 4 digits are showing.

Offers & Counter Offers

So, this seems like such a simple thing, right? Buyer writes an offer on a listing, seller responds with a counter offer, buyer hopefully accepts.

Got a couple right now. In the middle of counter offers.

Both were countered based upon conversations between agents regarding our respective clients.

Easy Peasy, right?

Sometimes, what seems like the simplest of things, creates more challenges.

One has a sale of home contingency that the buyers agents' broker says those buyers have to keep that contingency in place til the close of escrow. I'm saying....nope. Another offer is waiting in the wings.

Another is a straight buyer that we're working around my Sellers home of choice contingency. Again, after drafting it upon discussion....he wants to 'chat' this morning. I've got 2 other offers....I don't feel like chatting. LOL

I remind you, a career in Real Estate is not for the weak. Nor the weak minded! 

Let's see how these two pan out!

And yes, sometimes it does feel like a game of Tug-of-War!

Home Sales Activity April 21, 2017

Keeping my peeps informed is important to me. It helps you/them to make smart decisions regarding home sales and purchases.

With that said....here you are......sales activity for Santa Clarita Valley & our surrounding communities!

Currently we have 506 active listings. On all property types.

In escrow there are 633.

Sold in the last 30 days? A robust 348.

Happy that we are still closing over 300 homes per month, not as happy that our inventory still remains so low.

Some Should Just Hang Up Their Hat

This is a rant blog. So, don't read it if you don't want to hear me complain! I don't do it often, but there is a reason for the rant, and something you should know before you select an agent to represent you during one of the most important times of your life.

Just finishing up a challenging escrow. I am representing the sweetest buyers. Super nice couple with huge hearts. First time home buying experience. Worked towards this point in their life and trusted me to assist them.

We find a home they want, write an offer, get it accepted.

Now, any escrow will have a hiccup or two, the end is usually the most rocky. Final loan conditions, etc. Their lender was phenomenal, worked tirelessly through every hiccup involved.

My job is the heaviest in the first couple of weeks. Making sure the property is exactly what they want, no major defects, and that the contract is adhered to.

Herein is where this listing agent should really hang up their hat and do their other part-time business full time. Get out of my arena and stay out.

Reports due at certain times. If not, it can create a delay. Truthfulness is vital. If you screw up, hone it, and fix it. Don't blow it off. Don't ignore it. Don't lie about it. That will ultimately bite you in the butt. This listing agent did not do their job for their seller & it created quite the mess. The worst part? The agent just said 'too bad' basically. The Seller? Nicest guy. The agents guidance for their seller? The worst I've ever, truly, ever seen. 

I do a lot of nagging during the process. Generally I stay very polite, nice, but still nudge for what we need. This one was so bad that I finally just stopped responding to their messages. They were all b.s anyways. Thankfully there was a co-agent who cleaned up the mess as best as possible.

Moral of this story/rant? Pick your listing agent wisely. Find referrals online, ask the agent for references, check sales, are they full-time Realtors, can you talk to a past seller, any past clients that are willing to tell you how it went during the process? It will save you a lot of stress in the long run.....trust me on that.

For me? If I ever see one of this agents listings again....I'll avoid it like the plague. If they write an offer on one of mine? They will be at the bottom of the pile. I don't want any of my buyers or sellers to go through this agents nightmare work ethics (lack of) ever again.

Okay, I'm done! 

Bathtub or Shower?

When helping people with their homes, remodeling questions, buying wishes...I notice that people with small children definitely want a bathtub somewhere in the house.

A wee bit older love the ease of stepping into just a shower, but love a bench to sit down on while bathing.

Then, the middle of the crowd....still love the soaking tub for relaxing after long days.

So, when remodeling, keep re-sale in mind. Hopefully if you want to get rid of your shower in tub combo, you have space to still have a soaking tub and one of these beautiful showers as well!

From my favorite home decorating site Houzz,

 peek at the link directly below, and let me know your thoughts!

Before & Afters ~ Changing from Tub to Shower!

Hopefully you don't still have one of these!

Pretty cool, right?

I Keep Losing My Pals!

Seems like about once a month a friend, past client, old neighbor, etc. contacts me about possibly selling their home and moving out of the area....more so are moving completely out of state.

I am saddened every time it happens. Happy for them, happy to help, but still a tweak of woe does plague me.

These are my baby-boomer pals. The ones that are close to my age, close to retirement, already retired. Kids grown up, spread out over the US.

These peeps want to downsize or just go where life is less of the hustle and bustle, less of the expense of California, maybe more liberal, maybe more conservative. So many reasons.

I knew it was coming. Saw the writing on the wall, but after reading yet another article about my generation selling big homes for smaller and/or other areas....the twinge in my heart pinched yet again.

Most are quite excited. They've owned their homes for a long enough period of time that they have good equity. They want to go into the next step of their lives with no mortgage, or at least certainly less of one!

If this is something you've been thinking about, be sure to talk to your tax adviser and also your Realtor, there are things that need to be done in both areas to get the most out of your current home to get you into that next one!

Home Loan Interest Rates Today April 4, 2017

Just keeping informed! Thanks to one of my associate lenders for providing this information:

• 30-year fixed conventional loan 20% down - 4.125% (4.176 APR). Loan amounts up to $424,100.00 = $2055.40

• 15-year fixed conventional loan 20% down - 3.375% (3.464 APR). Loan amounts up to $424,100.00 = $3005.85

• 5/1 ARM - 20% down - Fixed for 5 years and then becomes variable - 3.250% - (3.308 APR) Loan amounts up to $424,100.00 = $1845.71

• 7/1 ARM - 20% down - Fixed for 7 years and then becomes variable - 3.625% - (3.734APR) Loan amounts up to $424,100.00 = $1934.11

• 10/1 ARM - 20% down - Fixed for 10 years and then becomes variable - 3.750 - (3.871 APR) Loan amounts up to $424,100.00 = $1964.07

• 30-year fixed FHA loan - 3.5% down - 3.750% (4.797 APR). Loan amounts up to $424,100.00 = 1998.44 + $305.66 PMI = $2304.10

• 30-year fixed VA loan - 0% down - 3.750% (3.989 APR). Loan amounts up to $424,100.00 = $1964.07

• 30-year fixed Jumbo loan - 25% down - 4.250% (4.263 APR). Loan amounts up to $3,000,000.00 = $14,758.20

Remember, these are just quotes 

and your personal FICO score + down payment you choose

 may change things!