I just don’t know if they can. Rates as low as 4% for a 30 year fixed loan are virtually unprecedented in our life time. If you are waiting for rates to go lower I just don’t think they are going to. I reveiwed the history of the ten year bond recently and over the last 60 years there has been only one other time the yeilds have been this low and that was during the economic freefall we experienced in 2008. If you look at the average values of real estate in 2006 coupled with the 2 percent higher interest rates and look at the demand then, one can only assume we are at the bottom looking up. Call me with questions or concerns. Happy to help all of Sonoma County home owners. “Hunt for your loan”.

Spring has Sprung and shortly, there is going to be a buying demand of Sonoma County Real Estate like there is every spring. But two coinciudental things happened yesterday and today that are going to effect that.
It was reported in Money Matters that Santa Rosa Real Estate had the highest appreciation in the country over the last month…6%. Buying demand has already started. Also, interest rates rose about a .25% becuase the Gov’t is trying to sell more t’bills and people aren’t buying so they are having to make them more attractive by raising the note rates. Interest rates are rising. Do you find that coincdental? Do you also find it coincdental that gas prices go up in the spring right before the big driving season. NO I didn’t think you did. The Gov’t has also stated it isn’t going to buy any more Mortgage backed securities after March. That too will put pressure on rates. And then there is the tax credit for home purchasers, first time and old hands, that expires at the end of April. Believe me when i tell you, that now is as good a time as you may have for the next 30 years to buy that home. Think about it…5%, 30 year fixed finaincing plus 8000 dollars back to you after you close and more inventory to select from than there will ever be. Now is the time ladies and Gentlemen. You need to get preapproved for a loan BEFORE you shop for that home so go to my website and fillout the online loan application and we will have you running in mere moments. Next month will be more difficult…I assure you. Also if you want free access to the MLS drop me a line and i can set you up for FREE.

April 31st marks the last day you can have a property in contract and still qualify for the first time home buyers tax credit of 8,000$. This great gov’t subsidized tax incentive is responsible for a great many of the transactions that have occured the last 6 months. Don’t wait. Get preapproved today by going to my web site, filling out the information and we will have you ready to make offers in a couple of hours. You are not the only one that has procarastinated and soon the opportunity will be lost.
If you are not a first time home buyer you will recieve a 6500$ tax credit if you buy a house before the deadline. Sonoma County real Estate just isn’t going to get any cheaper and with these phenominal incentives going away, it will just get tougher.
Interest Rates are great right now with APR’s as low as 3.625% for a 5/1 ARM. Give me a call, 707-431-9715 or email me at hunt.conrad@prospectmtg.com right now. Don’t wait. Time is running out!

The Real Estate Mortgage Apprasial process is really tough on everybody these days. The biggest problem is that as a Sonoma county lender I have seen as much as a 30% decline in some area values over the last 2 years. The perceived “mental equity” makes it tough on sellers to come to grips with the reality that, if they want to sell their homes, they are going to have to make a serious concesion to what they think there house is worth because the comps out there will not support what they want. Refinances also are experiencing great scrutiny by lenders because of the declining value.

As a first time home buyer, you are probably looking at homes in the lower price range and because of the strong foreclosure market, there have been a lot of sales and comps for apprasialers to use. But that won’t stop a lender from asking for a second or reveiw apprasial. This appraisal is usually done on a computer by some one not local or familiar with the area of the subject property. Having relationships in the past with appraisers was a great benefit to the borrowers and the entire real estate industry but regulators spurred on by ignorant politicians have imposed a new layer of separation, asking us mortgage lenders to use complete strangers not only to us, but to the area. This has created an apprasial process that is inaccurate in general and disfunctional at best.
There are no real safe guards against a “bad” apprasial but as a Sonoma County Mortgage lender for 20 years I can have a few things I can do that can protect a borrower from an unexpected apprasial value. An internet lender can’t possibly see the problems coming but I can. Give me a call to see how I can make your appraisal and entire mortgage loan process be a smooth and effective one especially in these turbulent times. 707-431-9715. hunt.conrad@prospectmtg.com

Everyone thinks that the most important part of the loan process is getting the lowest rate.  But if I asked you which was more important to you…getting the lowest rate or the lowest cost of money which would you choose?

The reality is no one gets the lowest rate.  Most people get a competitive rate.  The diffrence between the same priced loan at a specific rate between companies might only be .125%.  In other words, the most expensive company might be offering a rate at 5.125 for one point and the lowest might be 5% at one point. 

Now this is with all things being essentially equal and this is where the hard part comes in because no one loan is truly the same.  As lenders, we try to fit everyone in to the same box but everyone is different.  Even if we took the same loan and gave it to two different lenders, they might look at it completely differently.  Why you might ask.  Because beyond the computer overlays, there are still people required to make decisions of interpretation of various guidelines.  and those interpretations could ultimately effect your pricing or rate.

When looking for a rate look for a lender that is going to give you an honest explanation of how rates work.  I have heard advertisements for 30 year rates at 3.5%.  They make it sound like it is fixed for 30 years but they are obviously trying to trick you in to calling.  they are called teaser rates for a reason.

Use some one you trust.  Some that has been around, especially these days has a reputation that has allowed him or her to survive this tumultuous period.  for the most part, all the bad guys are gone.  You are really looking for some one you can relate to.  So don’t shop for “best Mortgage rates” .  Search for someone you want to do business with.  In the long run it will be the best investment you ever make.changes.

So you are either already looking for a house or you are just beginning and a realtor just told you to get Pre qualified.  Great Advice!  Getting pre qualified for a home mortgage before you even set out the door to look at houses makes all the sense in the world.  In today’s ever changing financial climate, getting approved for a mortgage loan can be very time consuming and arduous.  Time and effort that are way better spent up front in the home search process than after you have already found a house you want to make an offer on.

 Pre qualification is nothing more than making sure you can qualify for the mortgage payment and purchase price of the home size you are looking for.  By providing us with a snap shot of your financial picture (filling out a loan application) and providing the supporting documentation for your income and assets we can then determine exactly what a lender is going to be able to approve you for.  also the process is a s great way to gather additional information about the entire real estate transaction process.  All the costs will be gone over.  Locking in a  rate will be discussed.  What kind of loan program is best for you can be determined.

With out going through the pre qualification process you will usually be wasting a lot of every one’s time including yours.  I have provided my Pre qualification web site address below.  Do your self a favor and fill out a loan application.  Once I receive it I will give you a call, fill in any blanks and get started on your Pre Approval.

pre qualify online
707-431-9715

Qualifying first-time homebuyers can claim 10% of the purchase price up to $8,000, or $4,000 for married individuals filing separately. The credit is available for purchases completed on or after January 1, 2009, and before December 1, 2009. The credit is refundable, meaning recipients receive a check for any claim amount beyond what’s owed in taxes.

Eligibility for the first-time homebuyer credit is determined by the date of the completed purchase, not the date of occupancy. One exception is if the home is being constructed, then the date of occupancy is considered the date of purchase. The home must be used as a primary residence (generally defined as where an individual spends more than 50% of their time). To be eligible, the buyer, or either spouse, cannot have owned and used a home as a primary residence within the last three years. A taxpayer who owned a rental property but not a primary residence within the past three years is eligible for the credit.

The credit does not have to be repaid unless the home is sold or ceases to be the primary residence within three years. There are some exceptions: homes sold as part of a divorce settlement, homes destroyed in a natural disaster, homes subject to condemnation, etc.

To be eligible for the credit, the home cannot be inherited, received as a gift, or purchased from a spouse or related person. The credit applies to any type of new or existing dwelling. Even some houseboats and manufactured homes used as primary residences are eligible. The $8,000 tax credit phases out for individuals with modified annual gross income (MAGI) of $75,000 to $95,000 and married couples with MAGI of $150,000 to $170,000.

With interest rates hovering at historic lows and housing affordability at its best level in more than a decade, this is a timely tax incentive. To claim the credit, fill out the IRS Form 5405 and claim this amount on line 67 of the 1040 income tax form for 2009. For more information, visit the IRS Newsroom.

OK, all you first time home buyers, do you think things are going to get any better that they are right now to buy the home of your dreams in Sonoma County.  Well let me straighten you out right now.  30 year mortgage rates are near their all time lows.  Today we can offer a 30 year fixed mortgage for 5%.  What are the odds of in a couple of years that rates are going to be this low.  The current administration is bound anddetermined to  spend us out of a recession which may have ultimately averted a depression but some how, some way, some one is going to pay for it.  The Chinese are probably going to get tired of buying our debt.  The US citizen isn’t going to buy enough savings bonds to make up the huge deficit s we are amasing so that can only leave one possible solution and that is inflation.  The Dollar will devalue and the 13 trillion dollars that we owe won’t really seem that bad if the dollar is only worth half of what it is worth today.  The only recourse or protection that you have as a citizen of the United States  against inflation are commodities and Real Estate, especially Sonoma county Real Estate and Healdsburg Real estate in particular, is some of the finest Real Estate in the world.  They just aren’t making any more of it.  When inflation hits, and my prediction is that we will start to see the first inklings in the 2nd quarter of ‘10, it will be too late.  The bottom will have passed andnow your dollar that you are trying to spend will be worth less than it does today.  Real Estate prices will rise because of two things…demand and supply.  People like me will have spread the word and the bandwagon will start to get crowded.  Supply will diminish because of the demand.  Interest rates are the only thing that could slow the process and as soon as the first signs of inflation appear on the horizon the Fed will begin to raise interest rates.  I would expect to see mortgage interest rates in the 8’s by the end of ‘10.  That isn’t really all that bad historically, but compared with 5% think about how much less house you will be able to afford.  See my other posts on home affordability.

So what are you waiting for?  Rates are great and the home prices are the lowest they have been in 8 years.  Oh…and one more thing.  The govt is giving away $8,000 if you buy a house before the November 30th deadline.  If you have any questions or concerns regarding Mortgage loans in Sonoma County or elsewhere  please visit my other website at www.myprospectmortage.com/wconrad or email me at hunt.conrad@prospectmtg.com.