My New Blog

As October unfolds and the days begin to cool down, you might be thinking about pulling out those winter sweaters, stocking up on hot cocoa and cider, and maybe even begin bringing in the firewood. But the onset of winter is also a time to think about winterizing your house and making sure it, as well as you, are ready for the colder, wetter months.

Just as we care about finding you the best loan, tailoring it carefully to your needs, we also care about the wellbeing of your home. Read on for tips on preparing your home for the fall/winter season!

Clear Those Gutters

Debris buildup in your gutters can create major clogs and even the formation of ice-dams. One effective way to clear your gutters is to spray water down your downspouts. You may even consider placing gutter screens over gutters. Please keep in mind that working on or around the roof is dangerous and extreme caution should be taken; consider hiring a professional.

Bundle Your Pipes

Exposed pipes are the most susceptible to freezing. This includes pipes in your home’s crawl spaces and attic. Remember: Just like when you bundle up and head to the snow, the more layers of insulation you use the better protected your pipes will be.

Keep Firewood at a Safe Distance

This means at least 30 feet from the house. This will lessen the risk of a fire as well as the attraction of termites.

Clean Your Clothes Dryer Exhaust Duct & Damper

Neglecting to keep your dryer lint-free can be a fire hazard. Make sure to check the space under your dryer, as well.

Clean the Kitchen Air Filter and Exhaust Hood

This prevents stove fires from spreading.

Familiarize All Responsible Family Members with Gas Valves

Knowing the location and operation of gas valves is essential. If you have questions about the whereabouts and workings of your valves, contact a local plumber for assistance.

Make Your Home Sparkle with Safety!

Planning on decorating for the holidays with lights? Make sure all holiday decorations have tight connections. Using 3-prong plugs and cords is best. Never bundle electrical cords or run them under rugs and carpet as this can cause overheating and be a potential fire hazard. Remember to always unplug decorations when not in use.

Household tips have been provided by:  Shelby Ross

Just imagine the nightmare of having your home damaged or destroyed…and then add to that nightmare needing to recreate and remember all of the contents of your home for insurance and replacement purposes. Would you be able to remember all the possessions you’ve accumulated over the years if they were destroyed by a fire, earthquake or flood? How about if your home were burglarized? Having an up-to-date home inventory will help you get your insurance claim settled faster, verify losses for your income tax return and help you purchase the correct amount of insurance.

Taking the time to put together a list documenting all of the contents in your home could be a very daunting process for most. But the Insurance Information Institute has streamlined the process for creating a home inventory list by allowing consumers to download a FREE copy of the "Know Your Stuff" software by visiting www.knowyourstuff.org. The software is very user friendly, only takes a few minutes to download, and all the information entered will be saved on your local hard drive.

Using the software is super easy, as you will be prompted to provide specific information for the initial setup. Once the setup is complete, create a name for each room in your home – kitchen, living room, family room, master bedroom, etc – and begin adding items. Adding items to your room by room inventory is simple; a drop down list is available with the most common household items as well as the specific information required by insurance companies should a claim need to be filed. Want to add a picture or a receipt for a large ticket item? No problem, just upload the image. The software also has a category for donating items. Whether this is done while preparing the home inventory or in the future, just enter the item you wish to donate, print the list, and provide the list to your tax accountant at tax time.

Once you have completed your home inventory, be sure to have your insurance agent review your home inventory list to insure your current policy has sufficient coverage. It is also important to save a copy of your home inventory on a CD and store the CD in a fireproof safe or safe deposit box. Or, email a copy of the inventory list to a trusted friend or family member.

The time investment is well worth the effort, should you ever be faced with the unfortunate situation of filing an insurance claim. And having a detailed list of the contents of your home available may even expedite the processing of your claim. Additionally, when shopping for insurance, having an inventory list available for your insurance agent will ensure your policy provides adequate coverage for your valuable possessions.

Should you need a referral for a qualified homeowner’s insurance agent, please feel free to contact me.

Neisha Fowler

Direct: (916) 367-7705 or (707) 780-8180

nfowler@firstsonomafunding.com

The start of 2007 has been an interesting time in the Mortgage Banking industry. If you’ve watched the news on T.V. or perused any newspaper, you have probably seen many big name mortgage banks filing bankruptcy and mortgage companies closing their doors. With loan programs and interest rates in constant change it can be very challenging to find financing solutions for your new home purchase or refinancing needs.

During times of such uncertainty and seeming instability, it is important to know that you are working with a knowledgeable and experienced Brokerage firm and Loan Agent who not only understands the loan programs available to you but who is flexible, yet stable, in the wake of the current change.

When purchasing a new home it is vital that you get pre-approved for a mortgage not just pre-qualified. You may be asking yourself, what is the difference between pre-qualification and pre-approval? A pre-qualification letter is simply an informal review of your financial situation and credit profile, whereas a pre-approval letter shows the Lender has carefully reviewed your income, assets and credit report and has determined that you qualify for a loan. The Lender will tell you the maximum amount of money you can borrow, which loan programs you qualify for and the various interest rates available for each loan type.

The greatest benefit to having a pre-approval letter is that it takes the stress out of shopping for a home. You will be able to concentrate upon finding your dream house, without the worry of wondering whether or not you have met the Lender's financial requirements.

Once you have been pre-approved you can begin shopping with your Realtor for a home with confidence behind your buying power. However, it is important to understand it still is not a guarantee that the Lender will approve the loan; the Lender will only issue a loan commitment after it has approved you and the house of your choice.

After you find the home you wish to purchase an Appraiser will visit the property and provide the Lender with a valuation report. A home appraisal must meet the Lender's guidelines, which usually includes a stipulation that the home must appraise at or higher than the sales price, and the market in the neighborhood must be stable.

What information will I need to provide for a pre-approval?

Generally, you will need to complete a standard residential loan application and provide the following documentation:

1. Previous two year's history of your residence, employers & income sources.
2. Copies of W2 forms and current pay-stubs.
3. Copies of the most recent three month's bank statements, verification of stocks, bonds and/or 401k
4. Market value and current status of any other real estate owned.

The lender will also order a credit report to determine if there are any unusual or derogatory items in your credit history which may require additional explanation.

It is important to keep a positive outlook on your future purchase and refrain from becoming discouraged by the info you have seen on TV and read in newspapers. All the changes in the mortgage industry included, there are still affordable financing loan programs available—you just need to work with a knowledgeable Loan Agent whom you can trust.

Think you don’t have assets for closing costs, down payment and reserves to purchase a home? There are a variety of loan programs available that might help you become a homeowner sooner than you think.

Seller contributions

Seller contributions are funds provided by the seller at the closing table to cover a portion of the homebuyer's closing costs. They are a handy way for a purchaser to better leverage their existing savings.

If you receive seller contributions, you will be able to use more of your available cash for the down payment. This could translate to a larger down payment for a larger home, or a larger down payment with a lower interest rate.

Seller contributions are negotiated up-front on the sales contract. Typically, it is used in lieu of a price reduction. A seller contribution is represented as a percentage of the purchase price. Seller contributions typically range between 3-6% and the maximum amount is limited by the loan type and percent of the down payment

Gift Funds

Gift Funds are given voluntarily and without compensation. Therefore, if any condition is expected or implied it is not considered a gift. Gifts cannot come from "Cash on hand" or "Cash saved at home." A donor may borrow the money that they gifted to the borrower but the borrower cannot be obligated in any way to the source providing the funds. If the gift is received from a person or entity with an interest in the sale of the property, i.e. seller, real estate agent or broker, builder, or anyone associated with them, it is considered an inducement to purchase and sales price must be reduced by that amount. The reduction in sales price also applies if someone other than a family member pays any of the borrower's debts.

The transfer of the funds from the donor to the borrower must be documented. Acceptable procedures include obtaining a copy of the donor's withdrawal slip or canceled check, along with the borrower's deposit slip or bank statement showing the deposit to the borrower's account. In cases, where the donor provides the funds in the form of a cashier's check, the lender must be sure to provide evidence that the funds used to purchase the cashier's check came from the donor. A withdrawal slip, specifically showing the donor's account number from which the funds were obtained, would be sufficient evidence, along with a copy of the cashier's check.

If the funds are not deposited into the borrower's account prior to closing, the lender must specify that the above instructions be provided to the closing agent in the escrow instructions for closing. In addition, the lender must make certain that these procedures were followed, and obtain the related documentation from the closing agent. This documentation must be included in the insuring file submitted to the HOC.

Low and No Down Payment Options

Don't have enough for a down payment? No problem! There are several mortgage banks that offer many programs that address the needs of homebuyers who:

• Have strong current income but little in savings
• Prefer to keep their assets in higher-yielding investments
• Are first-time homebuyers whose high rents left them strapped for cash
• Have low-to-moderate incomes and few cash reserves
• Are move-up buyers looking to buy a larger home without large cash reserves

Benefits of a Low/No Down Payment Strategy

Even if you already have a nest egg, there are many sound reasons why choosing a low/no down payment makes sense:

• Frees up cash for other home buying expenses such as furniture, moving and closing costs
• Keeps your assets where they are - in higher-yielding investments or current lifestyle expenses, (day care, tuition payments, recreational activities)
• Potentially gives you a larger tax deduction*
• Lets you buy right away and start turning rent payments into equity
• Increases your current cash flow

The bottom line is this: The only way for you to know for sure whether or not you can purchase a home at this time is to begin the application process. If you are unfamiliar with a Residential Loan Application—don’t worry—an experienced Loan Agent is available to answer any and all of your questions every step of the way.

If you have any questions, would like to get additional information or want to start an application please feel free to contact me. I look forward to speaking with you soon!

Neisha Fowler

Direct: (916) 367-7705

nfowler@firstsonomafunding.com

*Consult your tax advisor regarding the deductibility of interest.