About Dan Tharp

Guild Mortgage is a California Department of Real Estate (DRE) licensed lender with 60 years of experience in all areas of home loan financing as both a Mortgage Banker and Mortgage Broker.

With Inflation Rising, Is This The Right Time To Buy a Home?

Inflation has been the word du jour of late, and we all feel it. My ah-ha moment was when I filled up my tank a few weeks ago at my favorite gas station, and gas was $6 a gallon! We are not alone in this pain, as folks are feeling this worldwide. According to an energy data tracking company, gas prices in the U.S. ranked 70th among the 170 counties tracked. For our friends in Germany, gas is pushing $9, while in Hong Kong, it’s over $11!

Having been a mortgage professional in Sacramento for two decades, I get asked a lot, “Is this the right time to buy?” and second most popular question, “What’s your rate?”. These are excellent questions, as I, too, seem to always focus on the financial benefits of homeownership. Thankfully, my new homebuyers remind me daily that owning a home is not a purely financial investment but a life-changing event. It provides stability for your family in a neighborhood you love and creates lasting memories as you turn that house into your home.

I am strongly inclined that you are reading this blog because you have been considering buying a new home. And I suspect the current economy might be putting a damper on those dreams. Are you basing this mood on emotion and fear? Have you considered the actual benefits of owning your piece of the pie? With home prices way up and inflation increasing the cost of life’s basic expenses, is now the right time to dive into your first mortgage? And if you wait, could you be priced out of the market altogether? You might not be entirely surprised by my answer. If you are ready for a long-term commitment and can comfortably afford the monthly mortgage payment and ongoing homeownership costs, then YES, YES, YES. It may be your perfect time to buy.

Let me hit you with some financial data regarding inflation and buying versus renting. According to a Stanford University study (January 2020), residential real estate has historically been an “investment safe-haven” during inflationary periods. In addition, during another moment of surging inflation (the 1970s), home prices rose relative to the size of the economy. Great news for homeowners since it meant their home’s increasing value helped offset rising costs elsewhere.

For my renters who have been stalking the market but are now not sure they want to buy, I always ask, “Is your rent going down?” According to CNN Business, rents in Sacramento jumped 19.5% from 2020 to 2021. For those wanting to make the leap to owning a home, “rising rents will remain a motivating factor even as for-sale home prices and mortgage rates continue to climb,” said Danielle Hale, Realtor.com’s chief economist. 

With home prices seeing such a jump over the previous few years, I have to drive the point with my new buyers that few of us are lucky enough to find our dream home the first time. So, think about compromising to find that sweet, happy medium instead of trying to get everything you want. The power of homeownership starts with your first purchase, and buyers have to start somewhere so they can eventually get to where they want to go. So, reach out to your favorite realtor to find that balance between home size, neighborhood, price, and all the bells and whistles.

Is Buying a Home a Hedge Against Inflation?

Homeownership, for many, is the ultimate American dream. Of course, people may not want to own a home for many reasons, but there’s no denying that being a homeowner can hugely impact your net worth. According to a CNBC.com article (Sept 2020), in 2019, homeowners in the U.S. had a median net worth of $255,000, while renters had a net worth of just $6,300. Let that soak in for a minute. 

However, don’t think this answers all your financial needs. Buying a home is a big deal and not something to take lightly. Take your time to review the financials with your realtor, your mortgage person, and possibly a financial planner. Owning a home is a big responsibility to pay for and maintain. If you don’t feel you can stay rooted in that home for at least a few years, then renting might be the best route. 

The above information is for educational purposes only. All data, loan programs, and interest rates are subject to change without notice. All loans are subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for complete eligibility requirements on tax deduction.

Buy your next home using Guilds Mortgage Sandwich. It’s Delicious!

For most of us, a sandwich was the first meal we learned to make for ourselves. As a result, roughly 50% of Americans consume a sandwich every day. I mean, come on, it’s one of the most simple yet versatile and loved foods on the planet, with countless variations to satisfy every palate.

And yet, for all its popularity, the sandwich is not infallible. Sometimes even the most basic ingredients can go awry—not to mention your more labor-intensive gourmet sammies, like Croque-Monsieur or the classic Sloppy Joe. Unfortunately, it takes just one poorly designed sandwich to realize how bad it can go wrong.

Similarly, over 50% of California’s own a home – so the majority of us have experienced the process of getting a mortgage and understand the essential “ingredients” to a successful close, but for many, it’s the opposite feeling of having your favorite go-to sandwich – it’s a complete drag! So how do you maximize taste, keep everything between the bread, manage any sogginess, and create the best balanced and delicious mortgage sandwich?

3 Items You Need for That Perfect Mortgage Sandwich

1 – Digital Lending for Speed and Efficiency

Getting a mortgage can be very document-intensive, with stacks of papers to collect and sign. And many lenders still work this way, asking for all of your supporting documents upfront, then picking what they need to complete your approval. So, years ago, Guild decided to flip the script and go to a more progressive platform to provide state-of-the-art technology to streamline the application process and minimize the number of documents to gather without sacrificing the human touch. You get all this technology with the guidance of an actual human being.

For example, Guild can verify a borrower’s assets without asking for a bank statement using AccountChek®. Instead of asking for a copy of a paystub or W2, we authenticate the borrower’s employment status digitally, using The Work Number®. Thus, speeding up the process significantly by requiring fewer documents, helping to remove much of the hassle and frustration compared to your more traditional mortgage experience.

2 – THE SECRET SAUCE is Customer Service

Guild Mortgage is known for its customer satisfaction, as evidenced by our #1 Ranking in Customer Satisfaction with Primary Mortgage Origination by J.D. Power*. At Guild, we want our customers to truly get that we are partners in their pursuit of a home. For more than 60 years, we’ve grown through referrals by focusing on doing what’s right. As a result, you can expect from Guild:

  • A FOCUS ON YOU – We look for a loan that fits your life. By thoroughly understanding your needs, circumstances, and life goals, we tailor each loan correctly for you.
  • HEART – We do what’s right for our customers, partners, employees, and community.
  • EXPERTISE – We have a proven track record of closing on time. We mind the details, so you don’t have to.
  • COMMITMENT – Wherever you call home, we are there in your community to strengthen and sustain the places people call home.

Guild prides itself on its core value, the promise of home without high-pressure sales tactics. Our goal is to learn more about you, assess your goals, review your financials, then make personalized loan recommendations to give you the necessary tools to make a sound decision either way.  

3 – The Benefits of Keeping your Money Local

I love when I can shop at my local grocery store, send my daughter to summer camp, or go to the movies, knowing my dollars support the people in my neighborhood. The same can be said for every client that comes to me for a mortgage. My team and I are local, familiar with the area, and knowledgeable about the community. We frequent the same businesses like you, and by keeping your dollars within our community, our friends and neighbors can meet their needs and prosper. By focusing on this local availability of wealth, we can create even more opportunities for those around us. 

I know some things are just easier online, as I am not immune to the power of pushing the “Buy Now” link when shopping on Amazon. But, whenever possible, I love the act of handing someone in my neighborhood my money, knowing it’s rewarding the people and businesses that serve our community.

Dan Tharp has been a Mortgage Lender in Sacramento for almost 20 years and would love to help you with your next mortgage.

The above information is for educational purposes only. All information, loan programs, and interest rates are subject to change without notice. All loans are subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction. *Ranked #1 in Customer Satisfaction with Primary Mortgage Origination. For J.D. Power 2021 award information, visit jdpower.com/awards

NEW! Anyone need an ALL CASH OFFER program?

I am excited to announce that Guild is releasing an all cash program to help our buyers win the deal.

This program allows my credit-approved borrowers to submit an all-cash offer, using proof of funds from Guild, to enter into contract with no financing or appraisal contingencies. Yes, you heard this right. If Guild Mortgage cannot close the buyer’s loan in time to meet the contract requirements, they will guarantee to pay cash for the home and then close the buyer’s loan. AND we can also couple this with our fantastic Lock and Shop program. So lock your rate today, find your dream home, offer in cash, and we finalize the loan.

This is a game changer for us, and you get exclusive access to this program now because I am on the pilot program. Text or call me for more details (916-257-1470 dtharp@guildmortgage.net)

The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction. For Lock and Shop full terms and conditions, visit www.guildmortgage.com/cap-hbe-terms. Consult the CashPass Program Guidelines for eligibility information and CashPass Program Agreement for full program terms. Subject to change without notice. A non-refundable participation fee, along with a minimum 2% earnest money deposit is required for participation in this program. Other costs may apply.

Are Higher Mortgage Rates a Good Thing?

Have you dipped your toes into lava lately? I joke about this with my clients who are currently shopping for a new home, especially if they started their search within the last few months – The day before Christmas, the average 30-year fixed mortgage rate was 3.05%. Then, a few weeks ago (Easter), that rate spiked to 5%. And now rates are creeping even higher. So much for taking that family vacation this year! This jump in mortgage rates is forcing many buyers to take a more critical look at their current budget and, in some cases, lower their expectations of what they can genuinely afford or get out of the buying process altogether.

Are higher mortgage rates a good thing? 

Mortgage rates are the highest they’ve been in 13 years, and home affordability is the lowest in 15 years. Is that a good thing? The lead analyst at HousingWire, one of Real Estates leading resources, says yes, it’s a good thing. He says spiking mortgage rates could take some steam out of the red hot market and give inventory a chance to rise. If that happens, it could slow down the rate of home price appreciation and reduce the possibility of an overheated housing market ending in a big crash or bust. He agrees that higher mortgage rates are the best thing because we are in a “savagely unhealthy housing market” and need to get off these shallow inventory levels. Too many people are chasing too few homes, and we desperately need a breather. Redfin said that more sellers are cutting home prices as housing demand softens, partly because of this sharp increase in mortgage rates. And it could be a few months before the actual effect of higher mortgage rates is genuinely noticeable. 

Will Home Values Go Down in 2022?

Should you wait to buy that new home until prices drop? Again, the experts say no, and I agree based on the metrics. One school of thought is that home prices have been artificially inflated the previous few years due to historically low rates and the pandemic. But not one single major real estate firm thinks prices will drop this year. Thankfully, we are starting to see a slowdown compared to last year’s unsustainable run. In 2021, according to the S&P CoreLogic Case-Shiller home price index, home prices skyrocketed to nearly 19%. To put this in perspective, the average appreciation rate in Sacramento over the prior 25 years (not including 2020 and 2021) was just over 8% per year. And this includes the Great Recession 2007 – 2009.

HERE IS A WONDERFUL TOOL provided by The Federal Housing Finance Agency to track appreciation in the US from 1991 to the present.

Rising prices have primarily been due to supply-demand imbalance, and I don’t see this going away anytime soon. Even with rates on the rise, we should see some fall off, but not significantly. According to The National Association of Realtors, the inventory of unsold homes was only 950,000 as of the end of March. According to NerdWallet Home Buyer Report, published this January, nearly 26 million Americans plan to purchase a home in the next 12 months. Given that between 5 and 6 million homes sold in each of the past five years, this doesn’t bold well for buyers. Again, we have too many buyers chasing too few properties.

These higher mortgage rates should take some much-needed steam out of the market, and experts agree that high demand and low inventory are here for the foreseeable future. Hopefully, this clarifies if you are like so many buyers trying to decide if they should buy now or wait. But, of course, whether you purchase a home in 2022 is a very personal decision and depends on your financial situation and the market where you live.

The above information is for educational purposes only. Guild Mortgage Company offers home financing only. All loans are subject to underwriter approval. Terms, conditions, and eligibility requirements apply.

THE BEST TIME TO SELL YOUR HOME IS COMING SOON!

If you are like many buyers and sellers, when you are in the moment of looking to purchase or thinking of selling your home, you all ask the same questions; Is now the right time to sell your home? Likewise, is this the right time to buy a home? My simple answer is, “the best time depends on your priorities, goals, and situation.”

When I started in this business almost 20 years ago, my ego sometimes got the best of me; I thought I knew it all and could foresee when rates would go up or down and how these changes would affect the housing market. I learned very quickly that I do not possess this superpower. I promptly changed my tune – my job is to guide my clients with the safest and most secure loan choices possible and let the historical data help build some consensus to formulate a plan or strategy to buy or sell.

With that said, it’s interesting to see what market professionals are saying is the best time to sell your home. If you have been on the fence waiting for the right time to sell, you might want to look at the data. According to Realtor. com®’s fourth annual Best Time To Sell report, the ideal time to list your home in Sacramento is the week of April 17. Because it possibly has the perfect balance of housing market conditions that favor home sellers, more so than any other week in the year.

Also, Money.com listed Elk Grove #4 on their list of best places in the country to sell a home in 2022. According to Realtor.com’s chief economist Danielle Hale, “Sellers listing in mid-April can expect to find relatively high buyer interest, coupled with limited competition from other sellers, that equates to fast-selling homes at top dollar,” she said in a recent news release. But, of course, market conditions are variable and not always the same for everyone, and the best time to list your home can change quickly.

If you think it’s time, here are three things you should do first:

#1) Find an experienced lender to secure financing to know your options and what you qualify for if you are thinking of buying a new home after you sell. It’s not just about getting a great interest rate; it’s also about working with a lender who will take the time to be sure you are in the right loan for your situation.

#2) Find a great Realtor to work with to list your home and possibly help you find another. I know some of the best in the business and would love to introduce you to one or two that work in your area.

#3) Layout your Game Plan with your agent and your lender. Once you have settled on your agent and lender, it is best to be open with your budget, dream neighborhood, and comfort level regarding the monthly payment and cash needed to close. This will help your team implement a strategy that will put you in the best position to win.

The above information is for educational purposes only. Guild Mortgage Company offers home financing only. All loans are subject to underwriter approval. Terms, conditions, and eligibility requirements apply.