Why You Can’t Use Cash For Down Payments

Question: “I run a cash business. Since banks pay so little interest, I keep most of it in a safe. Now I want to buy a home and someone told me that it’s a problem using cash for a down payment. Why would that be a problem?” Answer: OK, so I’m not going to ask
Read more
No Comments

Where to Look for a Lender for Your San Diego Home

Question: “Where do you suggest I start looking for a lender to get approved for a home loan?” Answer: I would avoid some of the common sources, such as going online or looking at newspaper ads. The best source is to ask a good, reputable, experienced agent. He or she will know a handful of
Read more
No Comments

What to Expect When Doing a Foreclosure

“We’re going to lose our home to foreclosure. We owe too much to sell and the bank denied our short sale. I lost my job and my wife isn’t able to work, so we can’t make the payment and definitely are going to lose our home. I hate the feeling of not knowing what’s going
Read more
No Comments

Unfinished Features Can Create Problems with the Sale

Question: “We’re buying a home and the owner is in the middle of redoing the kitchen. He started the demo work (sink, counters, some cabinets) but not the actual remodel. We’re getting a good deal because we said we’d take the kitchen as is. Will that create any problem with the sale?” Answer: If you’re
Read more
No Comments

Is It More Expensive to Sell with VA Financing?

Question: “I’ve heard it’s more expensive to sell with VA financing. Can you explain?” Answer: Happy to. VA (aka Veteran or G.I.) financing is a government program and has certain rules. Most are to ensure that veterans only buy homes in good condition. The downside is that these rules can cost homesellers and discourage some
Read more
No Comments

How Are FICO Scores Measured?

Question: “I’ve been working again now for 6 months, so my FICO score should be improving…” Answer: While having a job means you have more money to pay your bills, it does not directly impact your FICO or credit score. FICO scores measure 5 things: 35% Payment history 30% Amounts owed (as a % of
Read more
No Comments

Is It Easy to Get a Loan for a San Diego Home?

Question: “I’ve heard conflicting stories about how easy or hard it is to get a home loan. What’s your take on it?” Answer: There are two competing forces impacting people’s ability to get a home loan. On the plus side, today’s ridiculously low mortgage rates and resulting low payments make it much easier to qualify
Read more
No Comments

What Interest Rate Can You Get for a Home Loan?

Question: “What interest rate can I get for a home loan?” Answer: Years ago, that was a simple question with a simple answer. But today, you have to answer these questions first: Owner occupied or investment property? For single family, 2 units/duplex, or 3-4 units? Fixed or adjustable? If fixed, fixed for 3, 5, 7,
Read more
No Comments

Hard to Find a Seller Who’ll “Carry the Loan”

Question: “I can’t get a bank loan because of some bad credit and I’ve been reinvesting most of my profit into my business, so my tax returns don’t show much income. Can you find a home for me where I can make payments to the owner? I think that’s called owner carry…” Answer: Right now,
Read more
No Comments

Why Are There 3 Different FICO Scores?

Question: “I just talked to a lender about refinancing my condo and he told me my FICO scores. They’re 719, 729, and 744. How come there’s 3 different scores?” Answer: There are three nationwide credit bureaus, each with their very own FICO score name: Experian has “Experian/Fair Isaac Risk Model” TransUnion has “FICO Risk Score,
Read more
No Comments