Step One

To kick off 2012 I would like to help more people attain their goal/dream of home ownership. The first step you should take is finding out what your credit looks like. Credit plays a huge role in the approval process. Not only can bad credit keep you from purchasing, but simple issues like disputing accounts can cause delays. Also, credit scores that used to seem perfect are now not considered as "perfect." Scores as high as 740 can still pay adjustments in their rate or fees to the investors.
There is so much to find out, that you should be talking to a reliable lender months before you consider shopping for your first, next, investment or second home. Getting a full picture can help make the loan process much easier.
Feel free to contact me through my website or via comment on my blog about finding out more about your credit.

Time for New Resolutions!

I believe I am going to take a new turn with my blog. Instead of just posting opinions and ideas about the mortgage industry, I am going to make it an online educational course. For those of you who are looking to purchase your first home, move into a bigger home, downsize into something smaller, invest in real estate, or buy that second home you have always wanted, I am going to put the how to on this website. If you want to know about a particular topic, comment or email me. I will address it in my next blog.
This will be the blog for the do it yourself, Internet savvy, real estate driven person. I hope that my knowledge will help you grow and achieve your dreams.

Tomorrow's Blog: Where Do I Begin?

Labor Market Issues

The bond market is the benefactor of two items today. First is the Labor Market is showing signs of some issues. Numbers came out good, but are they believable? Time will tell. Also, the Fed is buying more bonds today than it had originally projected. Rates are good, maybe getting a tad better. What a great time to buy or refinance your home.

The Countdown Begins

There are 27 days until Christmas, which means 26 shopping days and dieting days... My calendar doesn't seem full yet, but I have this sneaking suspicion that it is going to get full and fast.
I spent the last holiday weekend with family, both sides, and friends. It was a good time, but missed those who could not be there. I spent the day after shopping for those who are less fortunate and enjoyed myself immensely. I got to spend a lot of time with my daughter and got to see how much she is truly like me. Poor dear! Friday, Saturday and Sunday hosted a total of 5 baseball games at BLD. The boys did well, and it was a great time.
I am now off to make more lists and get things done, so that my home feels the holiday spirit that I have in me.
On a work note, bonds are still doing well as are Stocks, I would love this world of positive in both markets to stay, we'll see how long it lasts.

GDP revised lower

The GDP was revised lower today and the bond market has held strong on that news, as it was not great information for bonds. The market is up 19 basis points today and is still trading between a strong layer of support and resistance. Tomorrow we will have a lot of economic data thrown at us as the market is closed Thursday and is on a shortened trading day Friday. Rates are amazing and taking advantage of these rates at any time would be a great idea. Call me if you would like to discuss your options.

Global Economy, and Understatement

It is an understatement to say that we are a global economy any more. When worries in one part of the world can send the rest of the world's economies realing. Europe is facing their worst economic times since WWII. This statement in and of itself shakes the foundation of all economies. The stock and bond markets are playing on the teeter totter today, and it appears with all of the unrest in the world, they will keep playing.
The Federal government is still purchasing MBS, but the effect has been tempered by the volatility of the global markets. Does this mean that you shouldn't move forward with your purchase or refinance, or does it mean you should hurry up...it means neither, it just shows that we are in an interest rate market that has never been seen before, and if you are ready jump in, the market is what it is.

The Effect a European Leader has on our market

The Bond market started the day to the upside and just recently has lost traction and is in negative territory. Why??? News (rumors) out of Italy today that their prime minister is going to resign has our Stock Market doing the Jig. It appears that the Stock Market views this move as proactive and in the right direction to stave off the volatility that could be coming in their capital markets.
For those of you in contract to purchase a home, lock today, who knows how long this slide will last and the rate you can get today is terrific. For those of you refinancing, just depends on when you really want to close. Sooner rather than later? Then lock, stop the stress and take advantage of what the market has given you. For those of you waiting to see 3%, keep waiting, but my crystal ball is not sure if we will ever see that 30 year rate come to light.

The MBS market started the day down, but has since recovered and is not in positive territory. The stock market is down just a few points and with the upcoming Treasury auction everything could change. We see it everyday it seems like.
Greece's Prime Minister has resigned, it appears the market likes the news and that the new regime will most likely take the EU deal and try to restructure. But just when we thought we could breathe, new out of Italy... The Italian economy could be in trouble, an invitation to the Italian Prime Minister has been heard. This again could rock the EU and the global economy.
We never know what tomorrow will bring (or the next hour even). If you are looking to refinance or purchase and are ready to lock, don't hesitate, waiting may save you and 1/8, but it could cost you a 1/2. Is it worth the stress? Lock now and sleep peacefully tonight.

New Jobs Chart

Click Here for My Featured Chart

You Gotta Know When to Hold'em...Know When to Fold'em

The Equity markets will have a roller coaster of a day, boy doesn't that sound familiar. Our own economic issues aside, we are a global economy, and choices being made in the European Union, China, Japan, etc...have effects that are wide reaching. The referendum vote that PM of Greece had wanted may or may not happen. If the Greek people vote down the plan or vote to remove themselves from the EU, The EU will not give any assistance, "not one penny," to help Greece in the coming months of economic uncertainty. Who will? Will anyone? Is someone going to finally say, you made your bed, now lie in it? Only time will tell on this front.
But what does that make for the Wall Street investor, or the main street investor, or the first time home buyer trying to figure out what is best for their future with the mortgage they are choosing. Here is my advise, at least to the soon to be home owner. Rates are terrific now. Instead of waiting a day, week or month or two, take advantage of what the market is currently handing to you. The purchase transaction will be a lot less stressful, if you lock in your rate and know that it is a terrific rate, a rate that wasn't available 1 year ago, 5 years ago...ever.
Just like today, tomorrow will be volatile and another/different roller coaster. Take control and step off the coaster!

Could there be a QE3?

The MBS market has had three great days on the market gaining over 100 points. This morning it opened weaker, but since has started to pare some of its losses. The stock market has taken a beating as of late and is holding onto a modest gain right now. The Fed speaks today about the economy and its thoughts on where it is headed and what they should do about it. The rumor mill is all a buzz saying we could see a QE3. I am not sure that is a great answer, I feel that my none of my decedents, no matter how many greats you put in front of their names will be able to get out of the hole we are digging right now.
My concern is not only the hole we are digging, but I believe Greece is the tip of the iceberg in Europe and who is going to be able to save us all? China is on hold...they can't be the white knight for everyone.
There is a silver lining, home prices and mortgage rates are significantly lower than we have ever seen. Those who are working and are able to pay rent everyday, should really look at the idea of purchasing a home. There are loans available with little to no down payment if you fit the guidelines. A home is an amazing investment and for those who have the dream of one day owning their own home, now is the time to try and make that dream a reality.
If your credit isn't perfect, don't let that stop you, talk to a professional (like me) to find out what you need to do, and get yourself on the right track. Procrastinating just makes everything worse. (A friend of mine told a group that yesterday, and she was so right!)
I'll keep you posted on the QE3 announcement...

Updated HARP Plan

The federal government has made the announcement as of 10/24/2011 that the HARP program is going to have changes made and that may make it more accessible for home owner's who are current on their home, but maybe upside down. However this is the quote from the Press Release on when we will have the actual guidelines:

"The Enterprises (Fannie and Freddie) plan to issue guidance with operational details about the HARP changes to mortgage lenders and servicers by November 15. Since industry participation in HARP is not mandatory, implementation schedules will vary as individual lenders, mortgage insurers and other market participants modify their processes."

I promise to all of my current and hopefully future clients, as soon as we have the guidelines and are able to implement them, I will be working on them. Please be patient as we wait for the guidelines and shoot me an email or comment if you would like me to look at your personal situation in the coming weeks. dromero@abilitymortgage.com

Have a Great Weekend!

The Updated HARP Plan

I love to be cynical, but I think the government may have fixed the problems we were having with the refinance program. If what I am reading is true, if your mortgage is owned by Fannie or Freddie and you have been current with that mortgage, you may be able to refinance into a lower rate.

When the original program was rolled out they were hoping to help 5 million families. Values being what they are and other issues, less than 900,000 mortgages were able to be re-written.

I hope this program is what it appears to be and that we can help families lower their payments, rates, and stay in their homes. It won't solve the problem for everyone, but it may be much more successful now.

Mid-Term Week Off

The kids have a week off here in October. Of course I am very busy, but Frank and I have decided to make a softball trip into a mini vacation. We will be taking both kids to view 3 colleges, see a few different beaches, and hopefully relax a little before we have another weekend of softball games.
If you have a break this week, I hope you are able to find some time to do something "fun" with your child. Any great ideas, please let me know via comment.
Have a great week!

How Clear is your Crystal Ball?

I have had several meetings with clients asking my opinion of where I think the market is going. It is difficult to say. We are currently in a range with Mortgage Backed Securities (MBS) that we haven't been able to sustain before. Rates are in the 4% range for a fixed loan, to me that is absolutely amazing. However, will those same rates go down to 3%? I cannot tell you. I can look at the stock markets, bond markets, commodities, gold, oil...I can watch as the European Union comes up with monetary policy and corrections to help with a Greek Bailout. But what I cannot tell you is how each move each of these different markets/countries will effect our 30 year fixed interest rate. Some days it will go up, some days it will go down.
What I can tell you, is that where rates are currently residing, whether they go up a little or down a little, they are still amazing! 4% even 5% to secure the financing you your primary residence for 30 years it unbelievable. Do not put off today what you may lose tomorrow. If you are thinking of refinancing and qualify, go for it, the difference .25% makes on you payment is less than $20 and what if by waiting...it never comes and rates continue to deteriorate instead of improve. If you have considered purchasing but haven't taken the time to get yourself approved or to find out what you need to do to get approved...it is time.
Take charge of your future and take advantage of what maybe an unprecedented time in history.

What happened to Mid-June?

I have been Facebooking, Linking In, and Twittering so much, that I forgot about blogging. Well, it is the beginning of the fourth quarter. I am doing well and have started volunteering my time again to causes that I think are important. Life is hectic, work, family, school, and volunteering. In May I thought interest rates were phenomenal, and they have continued to improve. We are now at 4% on a 30 year fixed and who knows if this is the bottom. But whether or not it is a great time to purchase and/or refinance. I hope that if you want to be a homeowner or are one, that you have had someone look at your personal situation and give you an honest assessment of how you can take advantage of this amazing market. If not, call me, I would love to help.

Mid June???

I cannot believe we are already half way through 2011. How do we put the brakes on the year? I just planted my garden, I guess I will have veggies in the fall and not the summer, if they produce at all.
The mortgage market is holding strong and I cannot believe rates are still under 5%. I do not know how much longer rates can stay this low, but if you are in the market to purchase or have the equity to refinance, now is the perfect time.
Call me if you have any questions.

Baseball/Softball Season

Completely off the topic of loans today. I love baseball/softball season. I love watching the kids grow and improve. I enjoy watching the competitiveness between rival schools and then the camaraderie after the game. I also love that in one aspect of our lives there is still competition and that it welcomed. In so many facets of our children's lives our society has made competing an ugly word. The world is all about competition, growing from it, learning from it and becoming better because of it. I hope our children know that when the get into the real world, they will have to compete for everything.

Still Here!

Just in case anyone was worried, I am still in the lending business. The government did not scare me away and I am still helping clients purchase homes with Ability Mortgage. Though after a rough few weeks, I needed some motivation. If you receive my e-magazine you may have seen this, but if you ever just needed a little motivation this is a great 2 minutes! http://www.allaboutnews.com/vc.php?a=y&b=67&i=448&rs=106459225eadf03202fc924

April 1, 2011-Will this be the end?

Tomorrow marks the beginning of compensation reform. I am one of those originators who has decided to embrace the change and not dwell on it. But I am wondering will this be the end of reform in the lending arena? Will the federal government, state, other licensing agencies go after another group of people, or is there more to be done to the originators who are still trying to make a living. I have taken tests, classes, continue to do Continuing education for both of the licenses I have. I disclose in multiple ways, multiple different subjects to home buyers. Sometimes I think all my disclosing confuses more than helps. But is all of this enough, or will there be more to be done to the loan origination side of the Real Estate market. Only time will tell.

March 9, 2011

It is almost mid-March. Time is flying. First quarter is almost complete, new laws are up and running, and newer laws are preparing to be put to use. Much will change, but as we have seen over the past two years, the more things change, the more they stay the same. Every new legislation has made lending more difficult, but we are still lending. All the new guidelines make lending a challenge, but we are still lending. The cost of making loans or getting a loan has gone up, but we are still lending and people are still borrowing. Those of us not here to make a quick buck, but to earn a living and to take care of our communities will still be here when lending is no longer under the microscope.

Home Buyer Class

I am hosting a Home Buyer Class tomorrow 3/1/2011 in the McFall Room of the Manteca Public Library. The class starts at 7:00am and lasts about an hour. This is a no obligation event. I am in the business of educating those people who are interested in the American Dream. Whether you are a first time home buyer, move up buyer or an investor I will have information for you. The guidelines for loans have changed so significantly, come and find out how they will affect you. Hope to see you there!

Credit Repair Class- 7-8pm February 22, 2011

I will be hosting a Credit Repair Information Class tonight from 7-8pm at the McFall Room of the Manteca Public Library. This class is to educate future home owner's on what type of credit profile they will need to qualify for a mortgage in today's lending world. This class is great for first time home buyers, or previous home owners. For people with good or not so good credit. If you or someone you know has had a bankruptcy or a foreclosure and want to know the guidelines on how long it will be until you can purchase a home, this is the class for you. I hope to see you there!

Homes & Money Newsletter (1st Quarter 2011) (11x17)

Homes & Money Newsletter (1st Quarter 2011) (11x17)

Home Buyer Class Tonight

I am putting the final touches on my presentation for tonight. Hope you will join me at the McFall room of the Manteca public library from 7-8pm. Good Information to help you prepare to purchase your home!

Home Buyer Class

I will be hosting a Home Buyer class on 2/1/11 from 7-8pm at the McFall Room of the Manteca Public Library. Are you a first time home buyer who needs to understand the process. Do you want to increase or decrease the size of your home, but not sure in this market, if you will be able to. Are you considering purchasing a 2nd home or an investment. Come and get answers to your questions. Hope to see you there!

Credit Informational Meeting

I hosted my first credit information meeting last night. It went very well. I am excited to be able to educate people on how to better their credit standing to be able to become a homeowner in the future. My next class is a Home buyer class that I will hold on February 1, 2011 at the McFall room of the Manteca Library. The credit class will be back next month also on February 22. I hope to see you there!

Obama Care 101

I have often wondered how with our national debt in the trillion figures, the government was going to pay for Medical for all program. Supposedly no new taxes on our income, or at the pump, or....wherever you would look. Come to find out there is. On 1/1/2013 a tax on the sale of homes will go into effect. a 3.8% sale tax. If you sell your home for $200k (very viable for the San Joaquin Valley, $7600 will go in a sales tax. Check out the blog post at GOP.gov http://www.gop.gov/blog/10/04/08/obamacare-flatlines-obamacare-taxes-home . As Americans it is time we start taking care of ourselves. We should not pay taxes just to care for those who choose not to take care of themselves.
I have no issue helping with children, but able bodied men and women, need to be utilizing their able bodies, even if the job is hard. Tell people about this tax...also, why is it that this tax takes effect after the 2012 election? Probably because if it took effect 1/1/2012, the democrats would have no one left in office.