The other day we got a call from a potential client who was referred to us from one of our past clients. He was a first time home buyer, looking to buy a home in the Silicon Valley.

New Client Goes into His Bank to Get Mortgage Financing

We asked him if he’d spoken to anyone about financing and he said, yes he talked to his bank. He explained he went into his bank, which is one of the bigger banks in the area, and asked about applying for a home loan. They gave him a card and told him to call the 1-800 number and someone would help him. (Red flag #1)

New Buyer “Pre-Approved” by Big Bank…Not Really

When the buyer called and talked to the representative, they asked him a few quick questions about how much he made, ran his credit and told him what he could afford. They emailed him what they called a pre-approval, which was a cute little certificate with a seal that they called a Buyer Certificate and told him to call when he found a house. Easy, right? …. Wrong!

What’s Wrong with this Story?

What the buyer didn’t know was that he was not, in fact approved for a mortgage. They ran his credit, yes, but they had not verified his income or assets. He had not sent in any pay stubs, bank statements or tax returns. The cute little certificate he got was essentially worthless.

Plus, the buyer had no idea what type of loan he was approved for, how much his monthly mortgage payment would be or how much he was going to put down.

What Happens When the Buyer Calls Back?

After speaking with us, he decided to call back and ask the bank some questions about what he received. What did the bank say? “We’ll answer all of your questions when you are in contract.” Seriously?!?!?!?!?! The buyer was supposed to wait until he entered into a legally binding contract with a seller to have his questions answered? Find the house he wants, have an offer accepted, spend $1,000 or more on an appraisal and inspections (which he will lose if he doesn’t get financing) and then find out if he is approved and what his payment will be? Absolutely not.

What Happened to this Buyer?

Needless to say, we recommended he contact our Co-Author, Chris Williamson, who answered all of his questions BEFORE we even started looking for a house. He presented several loan programs and helped him decide which was best for him. He knew exactly what his monthly mortgage payment would be for the loan amount he was considering and the fees that would be involved in acquiring the loan. The buyer dumped said Big Bank and went on to have a very successful transaction.

Moral to this Story?

Find a San Mateo Mortgage Advisor who will take the time to explain the loan programs, fees, loan process and answer all of your questions. Buying a home can be a stressful experience if you are not prepared for what to expect. Find someone who wants to earn your business and will help you have a stress free move!

Enjoyed this Post? Why Not Subscribe?

If you have enjoyed Living Well in San Mateo – san mateo real estate, please subscribe to our RSS feed.

Raymond Stoklosa, Chela Stoklosa and Rebecca Williamson are Realtors with The RayChel Realty Group specializing in Santa Clara and San Mateo Real Estate.

Lenders Trying to Find their Footing with New Financing Regulations

Now that the new good faith estimate and regulations are in effect, banks and other lending institutions are still trying to digest and implement the new changes.  Each and every lender has interpreted the new regulations differently, which means with every lender you will get their own tweaked version of their new loan process.  Having a different loan process is not such a huge deal unless the bank you’re working with has decided to cut out the most important part of the process, the pre-approval.

Big Banks Have Discussed Eliminating Pre-Approvals

As lenders begin to work through the lending guideline changes from January 2010, some bigger banks have discussed eliminating pre-approvals.  Instead, they are opting to wait until a potential borrower is under contract before the bank starts looking at and verifying your income, assets and credit score.

Why Won’t Big Banks Issue Pre-Approvals Before Borrower Finds a Home?

Big banks want to stop issuing pre-approvals because they don’t want to clog up their system with pre-approvals that may not turn into real deals’.which means you as their customer are not important to them until you have entered into a legally binding contract with a seller to purchase a San Mateo home.  Only then are the big banks willing to spend time determining if you qualify for mortgage financing.  But….if you wait until you are under contract to get pre-approved, you could lose a lot of money and the house you love!

Why Waiting for a Pre-Approval is a Bad Idea!

The reason a San Mateo home buyer should get a genuine pre-approval is to make sure you will qualify for financing, find out exactly how much you can afford, and see if there are any red flags a lender may find before you start looking for a house.

As a home buyer, you should be confident that your income, assets and credit will qualify for mortgage financing before moving forward on a purchase contract with a seller.  What some of the big banks are issuing are glorified pre-qualifications, really more like estimates at best, as to what you can afford. This means they may pull the plug and deny you financing!

You Could Lose a Lot of Money and the House You Want to Buy!

Typically you have 30 days from the time the seller accepts your offer to close your transaction.  Why would anybody want to enter into a legally binding contract, put down 3% of the purchase price as a deposit, pay for inspections and appraisals (upwards of a $1000 or more), and to go through the emotional roller coaster of a purchase transaction only to find out at the end that you don’t qualify for financing? Wouldn’t you rather know that before you even start to shop for a home?

If you would have received your pre-approval at the very beginning, you can take out the unknown factor of “Will I be approved for this loan”?  A genuine pre-approval will save you money, time and the anxiety of not knowing if you qualify for a home loan.

Smart Sellers and Listing Agents Won’t Accept Your Offer

The fact of the matter is smart sellers and listing agents will not even accept your offer without a genuine pre-approval letter.  Listing agents who are representing their seller’s best interests will call the lender who issued the pre-approval and ask just how credit worthy is this buyer. They will also ask if the lender has verified the buyers income, assets and credit score and has been fully approved for the loan.  If the lender answers no, most listing agents are going to advise their clients not to accept the purchase contract and find another buyer who is genuinely pre-approved and can confidently move forward with the transaction.

Your Pre-Approval Letter May Not Be Worth the Paper It’s Written On

If you’re reading this and are relieved because you’ve already received a pre-approval letter from a big bank, the first question you should ask yourself is, did my lender review my documentation?

If you did not supply your paystubs, tax returns, bank statements and agree to have your credit score pulled, and the bank gave you a pre-approval letter, all they gave you have is a glorified pre-qualification letter.  This means your approval is not worth the paper it’s written on.  So remember….pre-approval letter means verification of income, assets and credit.

When Should I Get Pre-Approved?

You should be fully pre-approved by a reputable lender BEFORE you start to even look for a house.  You need to know how much you can afford before you start looking for a home.

Received an Approval from a Bank and Want to Make Sure It’s a Genuine Pre-Approval?

If you are already in the loan process and want to make sure you have a genuine pre-approval letter, give me a call at (650) 520-0915 or send me an email at info@SanMateoMortgageBlog.com. I can take a look at what you’ve received and help you determine whether or not you are pre-approved.

Learn your Mortgage Financing Options

If you’re not quite ready to go through the pre-approval process but want some information about what types of programs may fit your financial needs, we can schedule a time to sit down and talk about your options.  There is no obligation or cost for this meeting.  Call me at (650) 520-0915 or email me at info@SanMateoMortgageBlog.com to schedule a time to sit down and talk. I still fully pre-approve all my clients at the very beginning, well before they start looking for a home.  It is the most important piece in the home buying process and will ensure a smoother and successful closing.

Enjoyed this Post? Why Not Subscribe?

If you have enjoyed Living Well in San Mateo – san mateo real estate, please subscribe to our RSS feed.

Raymond Stoklosa, Chela Stoklosa and Rebecca Williamson are Realtors with The RayChel Realty Group specializing in Santa Clara and San Mateo Real Estate.

Chris Williamson is a Mortgage Advisor with Mortgage California specializing in San Mateo Mortgage.

San Mateo home buyers who purchased in 2009 are starting to think about their taxes so they can (hopefully) get some money back from the IRS with the home buyer tax credit. Several clients have asked how to claim the home buyer tax credit…here are some tips.

e-File Not Allowed

The IRS is not allowing tax payers claiming the home buyer tax credit to e-file and are requiring additional documentation to prevent more fraudulent claims from those who are not eligible to receive the home buyer tax credit.

Additional Documentation Required for All Buyers

All home buyers (first time and trade up) must attach Form 5405 with a copy of the HUD-1 Settlement Statement with all of your usual required IRS tax forms. (You received the HUD-1 from the Title Company when you signed the loan documents at closing.)

More Documentation Required for Trade Up Buyers

Remember, to claim the $6,500 trade up home buyer tax credit, San Mateo home owners must have lived in their primary residences for at least 5 consecutive of the past 8 years and be purchasing a new primary residence.

Once again, the IRS is going to want proof you meet the requirements of the trade up home buyer tax credit. To prove you’ve been in your home for 5 consecutive years, you will need to provide one of the following covering 5 consecutive years:

• Form 1098, Mortgage Interest Statement or substitute
  
• Property tax records
  
• Homeowner’s insurance records
  

More Information About Filing the Tax Credit?

Remember, I am a San Mateo Mortgage Advisor helping San Mateo home buyers with their mortgage needs, NOT an income tax specialist. If you have more specific questions, contact your Tax Advisor or visit the IRS webpage.

If you need a recommendation for a tax advisor, send me an email at info@SanMateoMortgageBlog.com and I can recommend someone to you.

Enjoyed this Post? Why Not Subscribe?

If you have enjoyed Living Well in San Mateo – san mateo real estate, please subscribe to our RSS feed.

Raymond Stoklosa, Chela Stoklosa and Rebecca Williamson are Realtors with The RayChel Realty Group specializing in Santa Clara and San Mateo Real Estate.

Chris Williamson is Mortgage Advisor with Mortgage California specializing in San Mateo Mortgages.

Effective December 2009, the Federal Housing Administration (FHA) implemented a new stricter approval process for condominiums to be eligible for FHA financing.

Why Should a Condo Buyer Care?

More borrowers qualify with FHA financing than with conventional loans due to the low down payment (3.5% down) program and the looser credit standards. Even the mortgage interest rates are typically better.

Number FHA Approved Condos Diminished with New Guidelines

Unfortunately for the condo buyer the number of condominium complexes that will be FHA approved under the new guidelines will significantly diminish. Some “highlights” of the new regulations:

• At least a 50% level of owner occupancy or sell out (if a new build)
  
• No more than a 15% of the members can be delinquent on their dues
  
• No more than 10% of the units may be owned by one investor. This includes the developer.
  
• Entire complex (not just the unit like has always been) must be approved by the lender
  
• Reserve Study – a current reserve study within the last 12 months must be reviewed to assure that adequate funds are available for the funding of capital expenditures and maintenance. The regulations don’t define what is “adequate,” however it would be reasonable to expect that at least 10% of annual operating budget would be held in reserves.
  

A Word of Caution to Condo Buyers

A word of caution to condominium buyers – pick your development carefully. Get your lender involved early – even before you write an offer. Make sure your lender is well versed on the new regulations and what it takes to close a transaction. Get representation from a condominium specialist – someone with the expertise and experience to help you avoid the potential pitfalls being created by the new FHA and HUD condominium approval rules and stricter underwriting requirements. Although you are a buyer today, tomorrow you may be a very frustrated seller.

If Done Right, these New Rules Should Have Little Impact on Your Transaction

By working with condominium specialists who have the knowledge and expertise to navigate these new rules you can minimize the impact on your transaction. With a little bit of guidance before you start looking for San Mateo condos and during the process, you’ll wonder why we made such a big deal about these changes in the first place!

Search San Mateo Condos for Sale

Enjoyed this Post? Why Not Subscribe?

If you have enjoyed Living Well in San Mateo – san mateo real estate, please subscribe to our RSS feed.

Raymond Stoklosa, Chela Stoklosa and Rebecca Williamson are Realtors with The RayChel Realty Group specializing in Santa Clara and San Mateo Real Estate.

Yesterday, we showed you the first 4 of our 8 critical factors affecting the San Mateo real estate market in 2010. Today, we’re going to give you the rest.

The Final 4

• Climbing Interest Rates
  
• Stricter FHA and Fannie Mae Underwriting Rules
  
• Rising Foreclosure Levels
  
• Loan Modifications Fail
  

Climbing Interest Rates

The cycle aberration of 5% money ends and by the 2nd quarter of 2010. San Mateo mortgage interest rates will begin to rise and the days of cheap money will be a historical footnote.  Buyers who hold fast to the notion that rates will drop again will lose that bet.  For buyers, this means mortgage money will be more expensive and qualifying for a new loan will be more difficult as rates climb ever higher.  Sellers who think that waiting until spring 2010 to sell will discover a smaller pool of financially qualified buyers.   For sellers, this means longer marketing times and fewer qualified buyers.

For a more detailed look at where San Mateo mortgage interest rates are headed in 2010, check out Chris Williamson’s post San Mateo Mortgage Interest Rates Predicted to Rise in 2010.

Stricter FHA and Fannie Mae Underwriting Rules

The financial problems for FHA, Fannie Mae and Freddie Mac will become acute as the impact of insufficient cash reserves and debt-to-equity ratio weighs heavily.   As mortgage defaults and foreclosure levels increase, losses will mount as FHA, Fannie Mae and Freddie Mac impose more stringent underwriting guidelines and tighter appraisal standards.  Banks will become more adamant about loaning money only to the most credit worthy borrowers.  Condominiums will be particularly vulnerable to value erosion as all condominiums must now be on the FHA or Fannie Mae approved list to be eligible for bank financing.

Rising Foreclosure Levels

A new wave – the 2nd of 3 – of mortgage defaults will bombard the market as a glut of ARM loans recast or reset beginning about the 2nd quarter of 2010.  Many of these home owners will find their monthly payment unaffordable and fall behind with no hope of refinancing as interest rates rise.  Foreclosures will spread into the mid-tier price ranges.  Interestingly enough, while distressed homes and foreclosures represent a significant portion of the housing inventory in many other parts of California.  In the past 6 months, only 27% – 654 of the 2,408 homes sold – are either short sales or bank owned properties.  By far, the bulk of the distressed homes sold (541) were sold for less than $600,000 and they were generally concentrated in three lower income Mid-Peninsula areas.

Loan Modifications Fail

Currently about half of the loan modifications made in the past 12 months are delinquent, and it’s predicted that 80% will fail.  The U.S. Treasury reports that even thought loan modifications reduced mortgage payments on average by 40%, many of these loans are in deep trouble.  Clearly, more loan modifications will be anticipated as the sub-prime meltdown continues through the 2nd and 3rd wave of ARM recast and resets.   What does this mean for home owners in trouble?  Don’t wait; Talk to an attorney, real estate professional and a reputable tax advisor now.  Waiting will only exacerbate your problem.

Never Forget…All Real Estate is Local – Really Local!

Each micro-market within San Mateo County will perform differently as seven critical factors affect the performance of each.  Ignore the national data and the mainstream media’s reportage of regional activity.  All real estate is local — I mean really local.   Applying national statistics to your local housing market is a little like asking your Dentist to do brain surgery because he’s in the area?   Home buyers and sellers can best understand what’s going on in their local area by using the most recent local market data because it’s the only market that matters – to them.

San Mateo Real Estate Market Updates

For more on the San Mateo real estate market, visit our San Mateo Real Estate Market Updates channel or click the button below.

How’s the Market?

Search San Mateo Homes for Sale

Search for Homes

Enjoyed this Post? Why Not Subscribe?

If you have enjoyed Living Well in San Mateo – san mateo real estate, please subscribe to our RSS feed.

Raymond Stoklosa, Chela Stoklosa and Rebecca Williamson are Realtors with The RayChel Realty Group specializing in Santa Clara and San Mateo Real Estate.

Date/Time: Monday February 8th at 6:00pm

The Department of Housing and Urban Development announced effective December 7th 2009 stricter underwriting guidelines will be required to approve condominiums in San Mateo County.  In order for FHA or Fannie Mae (two of the primary loans consumers choose) to approve the condominium for financing, the entire complex will have to be approved by HUD.  Currently, condominiums can be approved on a one by one basis.  In a few weeks, the health of the entire complex will be highly scrutinized before Fannie Mae or FHA will lend.

What Does this Mean to San Mateo County Home Buyers?

• It has just become much harder to finance a condominium in San Mateo County
  
• Longer time periods required for complex approval – may not be realistic to close in 30 days
  
• You must be pre-approved before you enter into a contract – find a loan first, then find a home
  
• New rules are not flexible – if you need a loan, you’ll need to play by them
  
• Some complexes may not be approved – don’t waste your time or money chasing something that will never come to fruition
  
• The entire complex needs to be approved by HUD, not just your unit – no exceptions
  
• You need to work with condominium specialists to help guide you through the transaction – both on the real estate side and the financing side
  

Why Should You Care?

If you are considering purchasing a San Mateo County condominium in the next several months, your transaction will be impacted as these new rules are implemented.  There are several things you can do to front load the approval process.  By preparing early, you can minimize problems, minimize money spent and most importantly, not lose the condo you really want.

What Will You Learn During this Webinar?

Registration Info

To register for this webinar, which will be held on Monday, February 8, 2010 at 6:00, please click on the registration button below.

Sign Up

Enjoyed this Post? Why Not Subscribe?

If you have enjoyed LivingWellinSanMateo – san mateo county real estate, please subscribe to our RSS feed.

Chris Williamson is a Mortgage Advisor with Mortgage California specializing in San Mateo mortgages.

Lending Guideline Changes Will Affect Many San Mateo Borrowers

Are you in the process of finding a San Mateo home? Or, are you considering buying a home after the holidays? If so, you may want to pay attention to one of Fannie Mae and Freddie Mac’s new guidelines that could affect your upcoming home purchase (or refinance for that matter).

Your Total Debt Can Be No More than 45% of Your Gross Monthly Income

Fannie Mae and Freddie Mac just announced that they will only allow you debt to income ratio to be 45% of your gross monthly income, down from 55%. Let’s take some easy numbers for an example. If you make $10,000 per month before taxes, your total monthly debt can only be $4,500 including your total mortgage payment (principal, interest, taxes and insurance). So if you have a $400 car payment, a $150/month student loan and a $50/month credit card payment you can only qualify for a maximum $3,900 mortgage payment.

$400 + $150 + $50 + $3,900 = $4,500

If you had no debt, you could qualify for a $4,500 monthly mortgage payment (principal, interest, taxes and insurance).

What Loan Programs are Included?

Virtually all loan programs, conventional loans, CalSTRS teacher loans, CalPERS loans follow Fannie Mae and Freddie Mac’s guidelines and will only allow up to 45% debt to income ratio.

Are there Any Exceptions?

In some cases, if you have a large down payment, the lender will allow your debts to be 50% of your gross monthly income. However, it is a case by case basis and is by no means a guarantee.

Are there Any San Mateo Loan Programs that Will Allow More?

Yes. FHA (a government insured loan) will allow you to go up to 55% of your monthly income with as little as 3.5% down.

How Does this Affect Me as a Home Buyer?

If you were counting on getting a mortgage of $500,000 and have 54% debt to income ratio (which means your debts are 54% of your income) and you have not locked your loan yet, you are either going to have to get an FHA loan, or you are going to have to find a home that allows you to stay within a 45% debt to income ratio.

For those of you who haven’t started looking, you should have your Mortgage Advisor calculate your new numbers so you can adjust your home search criteria and find a home in your price range.

My Lender Told Me These Guidelines Don’t Affect Me

Unless you are getting an FHA government insured loan, or if you are getting your financing from a seller (who can make their own rules), these rules affect everyone. I suggest asking your Mortgage Advisor who sets the guidelines for your loan program. If you don’t think they’re giving you a straight answer, you can call me at (650) 520-0915 or email me at info@SanMateoMortgageBlog.com and I’ll help you track down the answer.

Need a San Mateo Mortgage Loan?

Chris Williamson is a Mortgage Advisor with Mortgage California and specializes in San Mateo mortgage loans. If you need a loan for a purchase or refinance, contact him at (650) 520-0915 or email him at info@SanMateoMortgageBlog.com for a free, no obligation consultation. You can also visit his blog, www.SanMateoMortgageBlog.com.

Enjoyed this Post? Why Not Subscribe?

If you have enjoyed Living Well in San Mateo – san mateo real estate, please subscribe to our RSS feed.

Raymond Stoklosa, Chela Stoklosa and Rebecca Williamson are Realtors with The RayChel Realty Group specializing in Santa Clara and San Mateo Real Estate.

Chris Williamson is a Mortgage Advisor with Mortgage California specializing in San Mateo Mortgage.

Date/Time: Wed, Dec 16th at 6pm

As you’ve been reading here on LivingWellinSanMateo.com, 2009 is a great time for first time home buyers to buy a home in San Mateo County. With interest rates at historic lows, San Mateo real estate at its most affordable levels in decades and the first time home buyer tax credit coming to a close, San Mateo first time home buyers have a lot to gain in 2009.

To buy a home in San Mateo County, most of you will have to get some sort of home loan. Though today’s lending market has produced some of the best interest rates we’ve seen in a while, lenders aren’t just throwing money at every borrower with a pulse. You must qualify for the loan.

Qualify for a Loan? Just what does that mean?

To help answer this question, I will be presenting a webinar on Wednesday December 16th from 6:00-6:45pm entitled Guide to Qualifying for a Mortgage Loan.

What Will Be Covered?

I will explain what it takes to get pre-approved for a loan in San Mateo County including what a lender looks for in your loan application. Other topics include:

• The CIA of Lending – I will explain the three most important factors a lender looks at in your loan application, your Credit, Income and Assets
  
• Down Payment – How much money do you really need to own a home in San Mateo County?
  
• Gift Funds – If you are getting money from a family member for a down payment, there is a right and a wrong way to accept the money. Not accepting the money properly could raise a red flag and the lender may not allow you to use this money for a down payment.
  
• Closing Costs – Learn the costs of getting a loan in San Mateo County and how much you’ll need on top of your down payment.
  
• Good Faith Estimate – A good faith estimate is the lender’s statement of the costs involved to get a loan. It is important you understand this document as it is the only way you can compare a loan accurately.
  
• Loan Application – I’ll show you what a loan application looks like and explain the questions the lender asks.
  

How Would You Benefit from Attending?

Anyone who will need to get a loan to buy a home in San Mateo County should attend. Whether you are a San Mateo first time home buyer or trading up, qualifying for a San Mateo mortgage is much different today than years past. Why not get a head start in understanding the new lending rules and make the San Mateo home buying process as easy as possible?

When Is the Webinar and How Do I Sign Up?

The webinar will be held on Wednesday December 16th from 6:00-6:45pm. To sign up, please use the “Sign Up” button below. The program is free to attend. Log in instructions will be sent to you when you regsiter.

Sign Up

Can’t Wait Until December 16th?

Call me at (650) 520-0915 or email me at info@SanMateoMortgageBlog.com. I will schedule an in person or phone interview with you to get started.

Other Posts You May Enjoy

• Webinar: How to Buy Foreclosures in San Mateo County
  
• Why Now May Not Be the Right Time for You to Buy
  
• 7 Questions: Is Now the Right Time to Buy?
  
• The Poison Pill of Home Buying
  
• San Mateo Real Estate Class Schedule
  

Enjoyed this Post? Why Not Subscribe?

If you have enjoyed LivingWellinSanMateo – san mateo county real estate, please subscribe to our RSS feed.

Raymond Stoklosa, Chela Stoklosa and Rebecca Williamson are Realtors with The RayChel Realty Group specializing in Santa Clara and San Mateo Real Estate.

Chris Williamson is a Mortgage Advisor with Mortgage California specializing in San Mateo mortgages.

Here is Your Chance to Buy a Home in San Mateo County and Stop Commuting

If you are a first-time or a “move-closer” home buyer seeking to live in San Mateo County, here is a first time San Mateo County home buyer loan program to consider. By the way – a “move-closer” buyer is someone who lives in another city, such as Tracy or Stockton, and wants to move closer to their job in San Mateo County. With San Mateo mortgage interest rates and San Mateo home prices more affordable levels than at any time in the past two decades, now is your chance to stop commuting.

Homebuyer Assitance Program for San Mateo County Home Buyers

The HEART of San Mateo County, a Housing Endowment and Regional Trust, have introduced the “Opening Doors in Our Community” loan program. HEART has redesigned their secure, reasonable homebuyer assistance program for today’s economy to assist qualified, moderate-income families buy a first home or move closer to work in San Mateo County.

Basic Requirements for the HEART of San Mateo County Loan Program

The goal of the program is basically to help more people buy in San Mateo County with as little as 5% down payment. Here is a summary of the basic eligibility requirements:

• Maximum household income of $150,000
  
• Maximum home purchase price of $521,250
  
• Minimum down payment of 5% of the purchase price
  
• Work in San Mateo County or live in a HEART member city
  
• Be a first-time home buyer or “move-closer” buyer
  
• FICO score of 680 or better
  

You’re Seeing the Best Home Buying Opportunity Since the 1980s

This is a great opportunity to capitalize on the best home buying opportunity we have seen since the 1980’s. San Mateo homes are more affordable and San Mateo mortgage interest rates are at historic lows, but history tells us this opportunity will not last. Real estate is cyclical and experts speculate that San Mateo County home values may have bottomed out and values are trending upwards.

Ready to Become a San Mateo Home Owner?

If you want to take advantage of this unique point in the market cycle and own a home in San Mateo County, give us a call at (650) 655-2500 or send us an email info@LivingWellinSanMateo.com to schedule a no obligation consultation. We’ll help you lay out a game plan to buy right.

But, before you do, check out our Buyer Representation page which gives you a little bit of insight as to who we are and what we believe about representing San Mateo County home buyers.

Search for San Mateo County Homes and Condos Priced Below $521,250

Click on the map below to seach for San Mateo County homes and condos priced below $521,250.

Enjoyed this Post? Why Not Subscribe?

If you have enjoyed LivingWellinSanMateo – san mateo county real estate, please subscribe to our RSS feed.

Raymond Stoklosa, Chela Stoklosa and Rebecca Williamson are Realtors with The RayChel Realty Group specializing in Santa Clara and San Mateo Real Estate.

Yesterday, we published a post, New San Mateo Condo Financing Guidelines Effective December 2009. Today we promised to tell you how these guidelines affect San Mateo County buyers, sellers, lenders and REALTORS® so here it goes.

HUD’s New Condo Financing Guidelines Affect on San Mateo Sellers

If your San Mateo condominium complex is not approved or cannot get HUD approval, your sale may be in jeopardy. “Sick” Homeowner’s Associations (HOA’s) that are mismanaged, underfunded, poorly maintained or investor dominated are particularly at risk and approval is doubtful. The unavailability of HUD approved financing will render your unit virtually unsaleable. Available financing will be too costly and unacceptable to the most well qualified condominium buyers. Seller financing – for some – may be to only way to sell your unit. My best advice: start now to work with your HOA and property management company to get HUD approval.

HUD’s New Condo Financing Guidelines Affect on San Mateo Home Buyers

Get your lender involved early in the buying process. Notify your lender as soon as you have identified the condo of choice so they can verify whether the complex is approved, or if not, what needs to happen to get approval. If the San Mateo condominium complex is not approved and in the midst of litigation, look for another unit. We explain in our class, Steps to Buying Condominiums and Townhouses in San Mateo, what to look for before putting your money at risk.

HUD’s New Condo Financing Guidelines Affect on San Mateo REALTORS®

It’s more important than ever for REALTORS® to set their client’s expectations accordingly. Taking an unsaleable listing when you don’t know the new condominium financing rules makes you look incompetent. Sellers must understand that the sale is predicated on the complex being approved by HUD and the buyer’s lender. Writing an offer for a buyer on an unapproved condominium complex without explaining the risks and possibility of disappointment is unprofessional. Buyers must include realistic loan contingencies in their offers that reflect the new HUD Condominium approval rules.

HUD’s New Condo Financing Guidelines Affect on San Mateo Lenders

Lenders will have to be at the top of your game. Systems and procedures must be sharpened and efficiencies built into the new underwriting rules. Buyers and real estate agents must be counseled about realistic loan and appraisal contingency time frames. Making false promises about your speedy service can result in a very angry, and vocal, ex-customer.

It’s a new game, so let’s be careful out there.

Looking for a San Mateo Lender Who Understands How to Get Your Loan Closed with These New Rules?

Contact our Co-Author, Chris Williamson of Mortgage California in San Mateo. Chris is a multi-platform lender, which means he is the best of all three lending platforms. He has the control of a direct lender, the wide variety of products a mortgage broker offers and the flexibility of a mortgage banker. Chris is also a Co-Presenter in our San Mateo real estate classes and webinars.

Considering Purchasing a Condo in San Mateo?

If you are considering purchasing a condominium in San Mateo you should attend one of our condominium classes or webinars. In these educational programs, we’ll not only discuss these new financing guidelines in detail, but we’ll also reveal the critical questions you need answered before you purchase one, explain how to protect yourself and much, much more. For more a list of our upcoming classes, visit our Class Schedule page.

Enjoyed this Post? Why Not Subscribe?

If you have enjoyed Living Well in San Mateo – san mateo real estate, please subscribe to our RSS feed.

Raymond Stoklosa, Chela Stoklosa and Rebecca Williamson are Realtors with The RayChel Realty Group specializing in Santa Clara and San Mateo Real Estate.