Market Update From San Diego Mortgage Expert Matt Young
MySanDiegoMortgage.com welcomes Matt Young from MDC Financial Service Group for our latest market update. Read on for his story and advice, and scroll down for his direct contact information!
MORTGAGE LENDING 2011: WHERE WE WERE, ARE, AND ARE HEADED
THE BUYING FRENZY
I left the practice of law in 2002 to enter the real estate mortgage-lending world. Learning a whole new vocabulary and implementing that into the real-life workings of a mortgage broker, was tough at first, but the knowledge came pretty quickly and within about six months or so, I was pretty self-sufficient. Loan programs were well defined. Demand was brisk. People bought homes as quickly as they could in order to secure a price now ahead of what would sure to be a never-ending trend of upwardly moving values. As the buying frenzy increased, so did home values. They increased so much that buyers could no longer afford the 10% or 20% down payment, to say nothing of those hefty 30 year fixed payments on the ever-increasing loan amounts.
Rather than be OK with having people wait until they could afford to buy a home, banks and investor groups created loan programs that allowed for smaller down payments ($0 down and in some cases financing closing costs on top of the 100% loan amount), smaller monthly payments (interest only payment and in too many cases, payments that weren’t even covering the interest accruing on the loan each month), and smaller piles of documentation necessary to prove the borrower’s income (in many cases no documentation at all was required). The borrowers, having these new options available to them, snapped them up with all the self-control of a piranha in an Amazonian feeding frenzy.
We all, of course, know the end of that story. Since the start of the housing crash in 2006, banks that based their whole business platforms on these “creative” loans have vanished while others quickly eliminated these risky loans from their lineup.
By 2008, the risky type of loans were gone and the industry seemed to be making loans that were really clean: down payments were being made of at least 10%, borrowers income was required and provided, and appraisals were being scrutinized closely. The industry seemed to have corrected the problem.
Unfortunately, as most people now know, the finance world since has undergone several rounds of legislation that has made getting a loan one of the most exhausting and frustrating processes one can endure.
However, remembering a few things will help get you through escrow. Continue reading
Market Update from San Diego Mortgage Professional Felisa Schlosser
MySanDiegoMortgage.com is excited to introduce you to Felisa Schlosser of Prospect Mortgage. Not only is she well informed and an advocate of her clients, but she’s got really cool artwork!
Tell us something fun about yourself and your business:
I love what I do for a living. It’s challenging, exciting, rewarding and there is never a dull moment. I feel like I was made for this business. And I am darn good at it! In fact, there is kind of a joke in my office and I’m occasionally teased by my co-workers and managers because they know that I believe that I am the best mortgage loan originator in the business. But it’s true, I can’t help the way I feel, now can I?
I love hiking, photography and listening to music. I enjoy studying languages and am currently studying Spanish and German.
How would you describe the current San Diego real estate market?
We are at an all-time high for home affordability in San Diego. That means that my clients range anywhere from grocery store checkers to union workers, county and city employees to the active military. San Diego real estate is on sale and that, combined with such low interest rates, is why it is an incredible time to buy here.
Are there any particular obstacles that are challenging consumers of San Diego mortgage loans?
Yes! Anyone that is looking to purchase a condo with either an FHA, VA or conventional loan may face some obstacles this year. Investors are going to have the most difficult time obtaining financing for condos. In my opinion, Fannie Mae’s HomePath® financing loan is going to be the easiest way to get an owner occupant or an investor into condos this year.
What are currently the most popular San Diego home mortgage products?
Without a doubt Fannie Mae’s HomePath® financing loan and FHA’s 203K Renovation Loan are San Diego’s most popular mortgage options right now. Fannie Mae HomePath® financing is great because it offers a low down payment of 3% for owners that are going to occupy, plus no mortgage insurance, and no appraisal. We can get investors into a property with only10% down! This is a phenomenal option that even my REALTOR® partners are using to build their own portfolios.
The FHA 203K Renovation loan is not a new loan but it is becoming a very popular option especially on those bank-owned properties that need a little or a lot of work.
Another favorite of mine is CalHFA’s CHADAP loan. Did you know that a first time home buyer may be able to get into a home with only 1% down? Yeah, incredible isn’t it?
Why would someone choose to work with you?
Buyers want to work with me because I am honest and trustworthy. I will not put someone in something that is bad for them. I am a great communicator and information gatherer. I take the time to fully understand (coupled with a background of knowledge to ask the right questions) my client’s needs. My pricing is fair and equitable. It is neither too cheap or too much. The service is exceptional. I am very attentive. I stay incredibly calm through all the bumps that are inherent with the business. And when I do call my buyers and REALTOR® partners with a problem or issue, I have already done the research to present them with solutions. I am very educated on the market, the programs, what’s available and what is possible. My REALTOR® partners do not worry that their clients have missed out on something because I, along with my company, are on top of what is available. I look at the client’s needs and the whole process as a whole and understand completely the needs and requirements of everyone involved in a transaction. For instance, I understand the timelines and the importance of meeting the closing date on time. That’s a really big deal. And finally, most importantly, it’s never about me. It is always about the client.
Please feel free to leave a comment below, and contact Felisa Schlosser directly:
felisa schlosser
mortgage loan originator
nmls license #255612
prospect mortgage–a direct lender
4275 executive square | suite 700 | la jolla | california | 92037
e: felisa.schlosser@prospectmtg.com
d: 858.550.2528 | f: 877.371.1698 | www.felisaloans.com
Any opinions are those of the loan officer and may not reflect the opinion of Prospect Mortgage. Continue reading