Got this search:“should I get a buyer’s agent if I’ve already found a house” The answer is almost certainly yes, but I am going to examine both the pros and cons. Full disclosure: This is what I do for a living. The con is fairly simple. If the seller isn’t paying a buyer’s agent, they …
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Available Real Estate Loan Types
So what else is available, besides the thirty year fixed? There are many kinds of loan out there. Here’s a quick overview: A Paper In addition to the thirty year fixed, there are several other varieties of fixed rate loan available, and several that are not. Commonly available are five year fixed, ten year fixed, …
Inducements to Use A Particular Lender for a Purchase
One of the things I’m seeing more of in MLS listings and developer advertising, among other places, is the phrase “$X in closing cost credit (or “$X in free builder upgrades”) given for using preferred lender” Sounds like a bargain, right? Just use their lender and you get this multi-thousand dollar credit. After all, “All …
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Cold Hard Numbers
(This is a somewhat redacted letter I was been sending out during the 2000s mortgage crisis) I have just recently attended a talk by Gregory Smith, the county assessor, on the future of home values in San Diego. He expects prices to continue to rise by 5-10% per year, citing scarcity as the reason. Basically, …
Changing the Purchase Contract
What is the reasonable amount of notice to give when changing contract terms in California That was a search I got. Unfortunately for this person, a real estate contract is not something like Lando Calrissian’s bargain with the Empire, where Darth Vader was free to alter it at will. The real estate contract is negotiated …
Appraisal Fraud
I enjoyed finding your blog today. It was enlightening, particularly in the area of real estate appraisals. Mortgage fraud is something I’ve been reading about lately. Since the FBI says 80% of it involves collusion and usually with the appraiser, it made me wonder why underwriters don’t just ask for second appraisals when a loan …
Saving Money by Refinancing Your Mortgage
One of the bloggers I used to read talks about debunking a money myth and perpetuates one of his own. He took issue with someone refinancing to lower their monthly payment, insisting instead that the term of the loan was all important. His point is understandable in that because folks tend to buy more house …
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Refinancing Has No Effect Upon Property Taxes
do your property taxes go up in California when you refinance your property This is one of those urban legends. People are concerned that because the house is appraised by the lender, the assessor is somehow going to find out that their property is worth more and send their tax bill soaring. However, thanks to …
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Recording Errors and Title Insurance
I just got a google search where the question asked was “What if the mortgage is recorded in the wrong county?” I’ve never actually seen this (and San Diego County, once upon a time, included what is now Riverside, Imperial and San Bernardino counties), but if it’s the mortgage on your loan, no big deal. …
Making Prepayment Penalties Illegal
I got a search for “which states allow prepayment penalties”. I’m not aware of any that don’t. If there are any, I’d like to know. Any such states should immediately be renamed “Denial”. I really hate prepayment penalties, for a large number of reasons. Nonetheless, to make them illegal would not be in the best …