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

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.

Buy a Home for Your Parents With This Special Loan Program

As a long-time Mortgage lender in Sacramento, I have used this relatively unknown loan program to help my clients purchase new homes for their parents while avoiding the more stringent rules and higher rates that come with buying an investment property.

It is not uncommon that I get that call from a concerned client, trying to figure out how to help their parents move closer to them, so they can spend more time with the grandkids, or worse case they need emergency help. The challenge of long-distance caregiving can be a significant drain on the family, and this program may be the answer.

Unfortunately, purchasing a second home or investment property often means you need to put up a much larger down payment than you would for a primary residence, and the interest rate might be higher. The benefit of this Family Opportunity Mortgage is that even if you currently own a primary residence, the new loan is subject to the same guidelines and rates as an owner-occupied home! If your parents don’t have sufficient income or cannot work and wouldn’t qualify for a mortgage on their own, this could be the program you could use to help them.

This unique mortgage offers several benefits over traditional second home mortgages. First, no occupancy requirements – For second homes, typical rules require the borrower to occupy the home for some part of the year. There is no such requirement for this type of mortgage however, the parents must live in the property as their primary residence.

Secondly, there are no distance requirements – Some underwriters may require that a second home not be located near your primary residence. This rule has softened, but the underwriter would ask for a strong case of why this home should be considered a 2nd home under standard underwriting guidelines. But thankfully, with this program, there are no distance requirements! The home could be located right next to yours or in a different town; it’s still priced and underwritten as a primary residence, allowing you to secure a home for your parents at a lower cost.

Not all lenders offer this program, so be sure to ask your lender if this is available or give me a call anytime. We can cover this in more detail to see if you are eligible for this unique program.

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, conditions, and eligibility requirements apply. Always consult an accountant or tax advisor for complete eligibility requirements on tax deduction.

Home values are up. Can you still afford to buy?

Home prices in California are going up and will probably continue to do so. Does that mean they are less affordable?

The news can be misleading and confusing as it recently touted the significant move higher in the median home price, currently up 15% nationally versus last year. And 14.3% in Sacramento County, says the Sacramento Association of Realtors. 15% sounds awfully high. But the median home price does not measure appreciation. Instead, it marks the middle price point of recent home sales. 

With a substantial lack of inventory for lower-priced homes, more transactions occur for higher-priced homes, which pushes the median home price higher.

The actual Sacramento home price appreciation rate was about 1.25% for the last quarter, or 5% annualized. And it is forecasted to increase by a similar margin next year. So have you been priced out of the market?

The short answer is no, or at least not yet. California’s affordability factor has improved year over year because mortgage rates are down by almost a full percent, and incomes have gone up (Avg. weekly net pay is up 5.7% year over year nationally). Also, remember, only a portion of your income goes towards paying your mortgage. A 5% rise in income can offset a much more significant percentage rise in housing expense.

Let’s assume your monthly earnings did not improve from last year. Consider a buyer’s max purchase price of a new home, based on his/her income and debt was $450,000 last year. Maybe this buyer decided to wait because they were nervous about the market. Now, that home is worth about $472,500.

As a mortgage professional, if I were to use the same income and debt structure I used last year, this buyer would now afford a home for $490,000. This tells us that homes are actually more affordable, even though they have appreciated.

Granted, I am using very simple math here, and this does not get into down payment or cash required to purchase this home but is purely to show you the media doesn’t’ always get it right. Take the time to work through these numbers with a mortgage professional you trust, and don’t give up your dream of homeownership!

Should I Lock or Float? This Week- November 18, 2013

November_18th_2013_Mortgage_MarketThe Non-Farm Payroll numbers came in on the 8th of this month, well above expectations with 204K versus an estimate of 125K new jobs. In addition, revisions added 60,000 more jobs to the prior two month
releases and thus mortgage rates took a significant one-day beating – noted by the long red column shown on the far right of this graph. Prices are now almost back where they were before that report was announced.

For those of you shopping for a good mortgage rate, who did not lock at the time, may have just gotten your reprieve!

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