Our Blog

Down Payment Assistance (CALhfa) Explained

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We offer several Down Payment Assistance programs, even though they have limitations that include higher rates, slower closing times, higher fees, and income caps. Down Payment Assistance programs are, however, sometimes absolutely necessary for borrowers who cannot access enough cash to buy a home. One of the best programs for borrowers with limited cash is […]Read More

Integrity Stories – Extreme Integrity Always Pays Off

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STORY #1: GIVING BACK MONEY WHEN NOBODY WOULD KNOW When I closed my first mortgage loan in 1994, the commission check from the wholesale lender was $1,500 too high. Everyone told me to just keep the money b/c lenders were unable to catch errors back then. I needed the money badly but I still sent […]Read More

What Could Bring House Prices (and Rates) Down? The Elephant In The Room

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DUDE SELLS TOO SOON! I was at a graduation party yesterday and the host told me how his law partner sold his Silicon Valley home two years ago b/c he was convinced the market had peaked. It hadn’t. The poor guy’s former home has gone up another 20% (several hundred thousand dollars) since he sold, […]Read More

Why Higher Rates Don’t Hurt Home Prices

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“When rates go up, home prices will crash!” We have all heard similar statements numerous times, but they are not true. This was addressed recently in another short Planet Money Indicator podcast: Rising Rates Vs. Housing Market. While higher rates increase mortgage payments and decrease qualifying amounts, they do not depress house prices according to […]Read More

If Appraisal Comes In Low, Buyer Not Overpaying; Realtors Buying Properties

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When Appraised Value Does Not Equal Market Value We have a buyer who was convinced she was “overpaying” for her property b/c her appraisal came in low. But, there were multiple offers for her property that were very close in price to hers, and there are nearby pending sales that are also similar in price. […]Read More

Buyer Gives Us $360 of Chocolate; Speed, Systems, Appraisals, Teams & Other Stories

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SYSTEMS AND INTERNAL APPRAISERS – CLOSED IN 13 DAYS! A buyer recently gave us $360 of specialty chocolate b/c she thought we were getting too skinny. OK – actually, she gave us the chocolates b/c we saved her deal that had blown up at another lender. Her contract price was $720,000, but her appraisal came […]Read More

Rates Hit 7 Year High; The Cost of Waiting

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COST OF WAITING IN 2012 In 2012 and 2013, we had a borrower looking to buy in Oakland and she was obsessed with getting the absolute lowest possible price. As a result, she kept walking away from transactions, b/c of $5,000 to $10,000 price discrepancies, even though she was shopping in the $650,000 range in […]Read More

Biggest Cause of Housing Shortage? Your Neighbor!

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I am typing this blog from my home office and watching our two Corgis play and hunt in our backyard. Kevin (our male Corgi) in fact just caught a lizard and he is proudly strutting around the yard with the poor thing hanging out of his mouth. (And yes, it is as disgusting as it […]Read More

Friction & Middlemen – No Mas!

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The primary reason Uber is so successful is not b/c it has nicer cars, or b/c it is cheaper than cabs. It is successful b/c they removed friction from the transaction. You get to just hop in an out of the car. Amazon is so successful not b/c it has a big selection or low […]Read More

Are We In A Housing Bubble?

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The four most dangerous words in real estate: “This time it’s different” 😊 I stole that from a recent Planet Money Indicator Podcast about a potential housing bubble (it’s only 8 minutes long, so I highly recommend it). I blogged about a potential bubble in late 2015 here, and highlighted three potential “Bubble Indicators” from […]Read More

Wanna Get Rich? Get Bad Grades

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Heejin and I attended a Strategic Coach event last week, and what I love most about these events is meeting so many successful entrepreneurs who closely follow Dan Sullivan’s teachings and get rich doing so. Most recently, however, there was one success story that really stood out. It involved a young man named Charles. I […]Read More

“Appraisal Management Companies” Explained. Why It’s So Important!

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Every mortgage lender is required by law to order every appraisal through an Appraisal Management Company (AMC). AMCs maintain large pools of licensed appraisers who are randomly chosen to appraise properties when appraisal orders are received by the AMC. No loan officer is ever allowed to speak with an appraiser in regard to a particular […]Read More

Amazing Facts About Teams & Culture

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TEAM CULTURE IS EVERYTHING! If you are part of a team of two, ten or thirty people, you need to know that culture is everything! The reason? Companies with strong cultures are almost eight times more profitable over the long run. Team members are also far happier and more productive. This was driven home in […]Read More

WSJ: “Facing a Bidding War?” LOCAL is Better; Concerns About Double App’ing

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The WSJ recently featured an article called Facing a Bidding War? Why a Local Mortgage Lender May Offer an Edge. (If you’re not a WSJ subscriber, we are happy to email pertinent excerpts upon request) Andrea Gordon, from Red Oak Realty, was quoted extensively. And what I loved is that she sounded like a marketing […]Read More

How To Lower Debt Ratios To Qualify For More

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I explained what debt ratios are and how they work in a recent blog. But, I did not explain what borrowers can do to lower them. Here are a few ideas for lowering debt ratios and qualifying for a larger purchase: 1. Put less money down, and use down payment funds to pay off consumer […]Read More

Fast Closes In Slow Markets; Internal Appraisal Panels; We’re VERY Multilingual!

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FAST CLOSE IN SLOW MARKET, WITH RENT-BACK One of our most successful buyer’s agents recently got her offer accepted by offering our 14 day close, even though the seller wanted a 30 day escrow. The agent offered our 14 day close with minimal contingencies and a 16 day rent-back, making her offer “as good as […]Read More

“No Points” “No Cost” “No Fees” = Higher Rates – ALWAYS

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NO FREE LUNCH IN LENDING Real estate firms are constantly trying to get into the mortgage arena b/c they think it is easy money, and b/c they already have a captured market with their pool of agents. They, however, invariably underestimate how difficult it is to run a mortgage company profitably and compliantly. They also […]Read More

The High Risk of False Assumptions

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WONDERFUL STORY FROM TWITTER I read a wonderful story on Twitter last week. The author of the series of tweets was a grad student named Thomas who sat in the front row of his class every day. A gentleman with a thick foreign accent, who Thomas did not know, sat next to him and always […]Read More

Your Lender Is A Reflection On You; Multiple Credit Inquiries OK!

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A Few Important Reminders: We were speaking at a Realtor training seminar this week and the leader of the group told a story about losing a valuable client and tens of thousands of dollars of commission money. The reason? He referred his client to a lender with a two-star Yelp average. The client read the […]Read More

Minimum Income To Qualify For Various Price Points; Realistic Goals

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Realistic Goals Based on Income and Down Payment Parameters One of the primary jobs of our Mortgage Analysts is to ensure borrowers have realistic home-buying goals. For example, a buyer with $6,000 of monthly income should not be looking to buy in a $700,000 neighborhood unless she has over $300,000 of down payment funds. Realistic […]Read More

Just Make Biscuits

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I wrote this blog last July and recently came across it. With so much going on right now in the tech, real estate, mortgage and geo-political realms, I think it is an excellent reminder and message. I was listening to The Investors Podcast recently when I heard an investment guru give excellent advice in response […]Read More

Higher Paid Staff = More Freedom, Better Team, Better Company

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MOTORCYCLE TRIPS AND FREEDOM My brothers, sons, nephews and I take a motorcycle trip every summer. As an aside, my three brothers and I all own and run our own businesses. My Mom (who reads this blog) thinks it is b/c she raised fearless entrepreneurs. But, the rest of us realize it is probably b/c […]Read More

Condo vs. Single Family Residence; $400 of HOA Dues = $70,000 Of Purchase Power

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$380,000 CONDO vs. $450,000 SINGLE FAMILY HOME What has a higher payment? A $380,000 Condo with $400 in HOA Dues? Or A $450,000 Single Family Residence with NO HOA dues? Answer: The payments are about the same. With 20% down and a 4.5% rate, both will have total payments* of about $2,375 per month. We […]Read More

Condos: 3% Down Instead of FHA; We’ll Walk You Through the Options

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IS THIS CONDO COMPLEX FHA APPROVED? We constantly have buyers and Realtors asking us if various condo complexes are FHA approved. We use this Hud Website to see if a condo complex is approved, and our answer is usually no. This is b/c so few condo complexes are FHA approved. We realize this often shuts […]Read More

Lender Credits For Closing Costs

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LENDER CREDITS INSTEAD OF SELLER CREDITS Seller credits for closing costs are few and far between in this hyper-competitive market; merely requesting them in fact is often a deal-killer. But – we like to remind Realtors and borrowers alike that lender credits for closing costs remain a viable option for cash-strapped buyers. There are a […]Read More

Home Value Estimates: Agent CMAs vs Zillow vs Appraisals; We Like CMAs

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ZILLOW GONE BAD A Realtor we know had to spend over an hour last week explaining to a seller in a high-end market why her house was worth $200,000 less than Zillow said it was. Her property sits on a 1.5 acre parcel, but her backyard is a cliff. Zillow did not account for the […]Read More

In Defense Of Millennials

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COMPLAINTS ABOUT YOUNG WORKERS A famous essay claims that young people new to the workforce exhibit: “slipshod assistance, foolish inattention, dowdy indifference, and half-hearted work…” The author went on to complain about the “imbecility of the average [person]” and about the failings of young workers in general in an essay that was well-received and loved […]Read More

Appraisal Waivers – Much Ado About Very Little, So Far

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APPRAISAL WAIVERS – FEW AND FAR BETWEEN Appraisal Waivers or “Property Inspection Waivers” (or PIWs) are popping up more often nowadays. This is a good thing b/c they speed up transactions and save borrowers $500 or more. BUT – they are not surfacing so often that we have reason to celebrate. Some lenders are actually […]Read More

Today’s Subprime Is NOT Like Yesterday’s Subprime!

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100% FALSE STATEMENT ABOUT SUBPRIME I received a copy of an internally circulated newsletter from a huge real estate firm with the following 100% incorrect statement about subprime lending: “Subprime loans – the type that fueled the Financial Crisis – are making a comeback in a big way. The total volume of loans issued in […]Read More

Equity Lines = Best Bridge Loans

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BUYING BEFORE SELLING CURRENT HOME We frequently have borrowers who want to buy a new home before selling their current home. They are afraid if they sell first they will end up either homeless or under undue pressure to buy a home they don’t really like. These people invariably ask about bridge loans (temporary cash […]Read More

3 Best YouTube Channels For Small Business

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Because Heejin and I are nerds in the extreme, our idea of a really fun Saturday night is sitting home and watching educational YouTube videos (we’re over TED Talks). We like them short, educational and inspirational for business. Below are three YouTube Channels we absolutely love. 1. Company Man This excellent channel consists of ten […]Read More

Why Rates Will Rise to 5% By Year End; Observations and Effects

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TAX TIP The filing deadline this year is not until April 17th, as April 15th is a Sunday, and the 16th is a holiday. Thank you Rob Chrisman for that tip and today’s blog topic (credit where credit is due). WHY RATES WILL HIT 5% My rate quote (below) for today’s blog is at 4.375%, […]Read More

Refi’s Die; Mortgage Industry Shakeout; Cheese Moving

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In 2012, 72% of mortgage industry volume consisted of refinancings, or”refi’s” for short. In 2017, refi’s dropped to only 37% of total volume – the lowest percentage in two decades. This is from a recent WSJ article that we will reprint below this blog. 70% of Quicken’s 2017 business was from Refi’s, and that percentage […]Read More

“Love Letters” to Sellers Work! How & Why

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URBAN FARMER IS #34 OUT OF 36 OFFER In November I blogged about two urban farmers getting the house of their dreams even though their offer was one of the lowest (#34 out of 36!). The buyers connected exceptionally well with the seller who shared their love for urban farms. You can read the full […]Read More

Best Lender Vs. Best Friend; Does It Matter?

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WHY A LENDER’S NAME & REPUTATION MATTER We recently received the below note from a buyer’s agent. We should hire her for all of our marketing because this single note says it all 🙂 “You know, our offer was accepted because of you guys. The listing agent knows how good you are and it really […]Read More

If Property Won’t Appraise, Change Financing!

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AGENT KNOWS PROPERTY WON’T APPRAISE We have a buyer who is willing to offer $750,000 for a property with 10% down. The problem is that, according to her agent, “the property will never appraise for more than $680,000, b/c there are no comparable sales anywhere above $680,000.” There are also cash offers so the seller […]Read More

MAKE Yourself Lucky! Article Explains How

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One of the most interesting things about the “How I Built This” podcast is how often founders attribute their success to luck. But, according to a recent article in the WSJ, people underestimate how much they create their own luck. The article is short, interesting and very encouraging for anyone in sales or in business […]Read More

“In House” or Direct Lending Explained

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STALLED LOANS DURING OUR “BROKER DAYS” Back when we “brokered” all of our loans to other “wholesale” lenders, major underwriting issues would arise, as they often do with all purchases. Our files would then come to a halt and prevent us from closing on time. We were not allowed to speak with our underwriters directly […]Read More

How Mortgage Banks & Loan Officers Get Paid

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We are often asked by borrowers and Realtors how we, as a lender, get paid. The answer is that JVM gets paid if and only if a buyer’s loan closes. On a loan with no discount points, our entire commission is earned when our mortgage bank sells the loan to an investor for a premium […]Read More

VA vs. FHA; Differences & Similarities

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Realtors often confuse VA and FHA guidelines b/c the loans are somewhat similar in that they are both backed or insured by the Federal Gov”t. There are, however, many differences as well. This blog will set them all out. Appraisals – Similar The appraisal requirement for FHA and VA are largely the same. Our Appraisal […]Read More

Other Lenders’ Reviews – Horror Stories

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READ THE REVIEWS!   We tout our 500+ Five Star Reviews so often, we’re becoming a broken record. So, I’ll resist the urge today (even though I just did it again :), and instead focus on our competitors’ reviews. I am not doing this to just beat up on competitors, as I know that is not […]Read More

Why A Shoe Shine Man Thrives In The Digital Age

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My son shared this excellent story about a shoe shine man in his downtown Sacramento building. With Amazon, big tech, big banks and “big” everything else threatening to take over the world, this story is a great reminder of how to not only survive, but to thrive. Long story short – the shoe shine man […]Read More

Pre-Quals Vs. Pre-Approvals; Huge Difference!

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PANICKED BORROWER ON VERGE OF LOSING DEPOSIT We had a borrower in contract come to us a few weeks ago in panic mode. The reason? He was on the verge of losing his earnest money deposit b/c his loan had just blown up at America’s largest mortgage lender. The loan officer had only done a […]Read More

Digital Marketing Is Hard! We Know B/c We Did It Wrong; Wasted $1,000s

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EXPANDING BEYOND THE BAY AREA Last year we decided to expand beyond the Bay Area b/c our value propositions (speed, communication, appraisal quality, etc.) had become so established and effective. DIGITAL MARKETING Our primary goal was to market to Realtors to establish more referral relationships. The only way to do this on a mass scale […]Read More

Mark Cuban: “More Sales Cures All”

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RATES AT 2014 LEVELS We have not seen interest rates this high since 2014, and both the mortgage and real estate industries are in panic mode b/c volumes are dropping. MARK CUBAN And, it reminded me of a blog I wrote in 2014 where I quoted something Mark Cuban said – “More Sales Cures All.” […]Read More

Appraisal Horror Story; Appraisal Success Story! “Appraisal Manager”

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APPRAISAL HORROR STORY Back when we were in the Broker Channel (when we sent loans to outside lenders for underwriting), we ordered a purchase appraisal in a high-end Bay Area community called Orinda. The lender forced us to order appraisals through a nationwide Appraisal Management Company that kept most of the appraisal fee itself and […]Read More

Primary Residence Capital Gains Exclusion – Boring But Necessary

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Homeowners can usually avoid capital gains taxes when they sell their primary residence for a profit. Individuals can exclude $250,000 of gains, and married couples can exclude $500,000 – if they meet certain guidelines. Most people in the real estate and mortgage industry are aware of this in general, but they don’t understand the specifics […]Read More

Condos Must Be FHA & VA Approved; Townhomes & PUDs Don’t Need FHA/VA Approval

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We are asked this so often that we thought it warranted a reminder. An entire condominium (condo) complex needs to be FHA or VA approved before a unit within the complex is eligible for FHA or VA financing. Townhomes and PUDs (Planned Unit Developments) do not need to be FHA or VA approved, even if […]Read More

Seth Godin’s Excellent Blog; Short, Sweet & Always Good

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One of the many benefits we’ve received from our coaching network was an emphatic recommendation to subscribe to Seth Godin’s Blog. We were reluctant b/c we get so many emails and info pieces already. But upon our friend’s urging, we did subscribe and we love it b/c they are always excellent and very short. So […]Read More

When Training Beats Experience! How and Why

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“Thank you again for your hard work… It’s amazing you guys can close an FHA transaction in 2 weeks…the seller couldn’t believe how fast it happened – lol” We received the above comment from a very seasoned and busy escrow officer yesterday, and we thought we’d share it 🙂 WHEN BRAINS & TRAINING BEAT EXPERIENCE […]Read More

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