Blog - JVM Lending

Get More Deals by Telling Millennials They’re Uncool 🙂

April 19, 2019/in Marketing, Our Blog

There is a light bulb in Livermore, CA that has been burning since 1901! It was illuminated (no pun intended 😊) in this recent Planet Money Podcast. Comically, the NPR reporter flew all the way to Livermore to look at it when she could have just googled it here. She pointed out how lightbulb manufacturers […]Read More

When “Appraised” Value Is NOT Market Value

April 18, 2019/in Appraisals, Our Blog

B/c the market is heating up again, we have had several appraisal issues recently where there were simply no comparable sales available to support the contract price (despite multiple offers at that price). B/c the agents involved in the transactions were frustrated, I thought it was necessary to repeat this blog. TEN OFFERS OVER $1 […]Read More

How Long Is a Pre-Approval Letter Valid? Forever, as long as…

April 17, 2019/in Homebuying, Our Blog

We have over 800 pre-approved borrowers in our database – all closely tied to their respective referral sources I might add. As an aside, each pre-approval requires about two to four hours of labor, depending on complexity, with additional hours often required for scenarios, questions, advice, calling agents, etc. Our historic conversion rate for pre-approved […]Read More

Why FHA’s BETTER Than Conventional In Hot Markets

April 15, 2019/in FHA, Our Blog

My wife Heejin was “on call” for weekend referrals yesterday, and she had two buyers who wanted to switch from FHA financing to 5% down conventional financing. The buyers were making offers over list price in very competitive markets, and they were convinced their offers would be stronger with conventional financing. And Heejin screamed,“NOOOOOO, DON’T […]Read More

House Flipping Back to 2006 Levels; Worried?

April 12, 2019/in Our Blog, Real Estate

I get several calls or texts every week by someone offering to buy a condo we own in Scottsdale. What is particularly interesting to me is that the offers come from dialers at large call centers that house-flipping firms have set up to make nonstop calls. In other words, house flipping is a big business […]Read More

Unexplained Deposits, Seasoned Funds, Sources For Seasoned Funds

April 11, 2019/in Mortgage Industry, Our Blog

I mentioned yesterday how “unexplained deposits” on bank and investment accounts often create problems when transactions are in escrow. This is b/c lenders want to make sure all funds going toward a down payment are “seasoned.” “Seasoned” means that the funds have been in a borrower’s bank account for over two months and/or that the […]Read More

I Caught My Dog Issuing Pre-Approvals (True Story)

April 10, 2019/in Mortgage Industry, Our Blog

I made the horrible mistake of teaching my dog Kevin how to run Fannie Mae’s automated loan approval software, known as Desktop Underwriter or “DU.” It was easy to teach him b/c all he has to do is gather info from borrowers and input data. BUT, THIS is why it was a huge mistake! Without […]Read More

Eliminating Friction – Most Important Value Proposition?

April 8, 2019/in Marketing, Our Blog

The avoidance of “friction” is becoming one of the most important value propositions a business can offer. Uber, Amazon, PayPal, Venmo, iTunes, Instacart, TaskRabbit, and ZipRecruiter are great examples of businesses that exploded solely b/c they eliminated friction (they made shopping, securing services, and making payments vastly easier). Even more traditional companies have mastered eliminating […]Read More

Three Important Tax Filing Tips for Homebuyers

April 5, 2019/in Homebuying, Our Blog

With Tax Season upon us, I want to share a few reminders: If income is lower this year, self-employed borrowers might want to file an extension instead of filing tax returns. This is b/c lenders will often correlate to the most recent year only if income is declining, and that will of course adversely impact […]Read More

Asset Loans; Qualifying With Assets Instead of Income

April 4, 2019/in Homebuying, Our Blog

I touched on Asset Loans in December but I wanted to elaborate on them b/c they are such a great alternative for borrowers with substantial assets but limited documentable income. There are three basic types of Non-QM Asset Loans that we offer. Asset Depletion Loan: We simply divide total liquid assets by 120 months and […]Read More

Godzilla vs. Bambi; Zillow vs. JVM

April 3, 2019/in Mortgage Industry, Our Blog

In the classic 1969 film, Godzilla vs. Bambi, the action only lasts for 90 seconds as Godzilla stomps Bambi into oblivion with a single step. But, that was in 1969. In 2019, the much smarter Bambi would be empowered and waiting for Godzilla with superior technology and nimbleness. He would most certainly take Godzilla out […]Read More

Don’t Deposit Gift Funds, Please! (Straight to Escrow)

April 1, 2019/in Our Blog, Real Estate

It is well-known that buyers can use “gift funds” from a relative to help with the purchase of a home. But, we want to again remind buyers to not deposit gift funds into their personal accounts. Buyers should instead tell their “donors” (aka “gifters”) to hold on to their funds and to instead deposit all […]Read More

Too Busy for Big Houses! Too Old & Too Dated Too

March 29, 2019/in Our Blog, Real Estate

I hike for five or six miles every weekend in the hills around one of the Bay Area’s most high-end housing developments. The homes are huge, stunning and fun to see, but the best part is the extremely elaborate backyards with vineyards, gazebos, massive pools, outdoor kitchens, terraces, fruit trees, playsets, sport courts, and immaculate […]Read More

Low Rates & Early Pay Off Penalties; Six Months Is All We Ask

March 28, 2019/in Mortgage Industry, Our Blog

Rates have fallen about 1/4 percent over the last few weeks and they are almost 1% lower than their peak only a few months back. As a result, everyone is rushing to refinance again, as I mentioned in yesterday’s blog. Mortgage lenders love the onslaught of business even though it fosters some major risks. One […]Read More

Beware of Lending Delays; Layoffs & Unexpected Refi Boom

March 27, 2019/in Our Blog, Refinance

2018 was an absolutely horrific year for the mortgage business. Interest rates were up significantly, all but wiping out most of the refi business. And overall purchase volume was down to boot. As a result, there was massive over-capacity in the mortgage industry so everyone started to compete with lower interest rates to maintain market […]Read More

Share Our Mortgage Info, Please! Educating Buyers With Awesome Content 🙂

March 25, 2019/in Our Blog, Self Education

One of our borrowers once told us – “I asked the same question to three other loan officers before I read the FAQs on your website, and none of the loan officers came close to explaining the answer as clearly as your FAQs.” We take enormous pride in the info we provide on our website, […]Read More

Condo vs. Townhome vs. PUD

March 22, 2019/in Appraisals, Our Blog

This is another reminder that condos are not distinguishable from PUDs (Planned Unit Development units) by appearance alone. Attached side-by-side two-story units that all touch the ground can be zoned “CONDO” or “PUD.” Complexes with units that “float” (that do not touch the ground) will almost always be zoned Condo (PUDs must touch the ground). […]Read More

The Fed Halts Rate Increases; Good Or Bad?

March 21, 2019/in Mortgage Industry, Our Blog

Yesterday, the Fed announced that there will be no more rate hikes in 2019. And many people in the mortgage and real estate industries cheered. But a lot of economists and Fed-watchers are more worried than ever. Here is just one of many articles (from the WSJ) I read today illuminating serious concerns. The Fed […]Read More

Inflation: The One Reason No Buyer Should Get Cold Feet

March 20, 2019/in Mortgage Industry, Our Blog

Everyone knows there are many reasons to buy a home, including: (1) enjoying the pride of ownership; (2) locking in a low interest rate; (3) fixing your housing payment; (4) taking advantage of tax savings; and (5) building equity, among other things. But, most people do not appreciate how important real estate can be as […]Read More

Important Condo Considerations

March 18, 2019/in Our Blog, Real Estate

Below are twelve things buyers and agents should consider if they plan to finance the purchase of a condo. I repeat these items from time to time b/c they are so important and b/c we continue to add so many people to our blog distribution list. Concentration Rule. No single entity/person can own over 20% […]Read More

Benefits of Playing By The Rules; College Admissions Scandal

March 15, 2019/in Our Blog, Self Education

Years ago I worked for a company that required all applicants to pass an IQ test before they could be hired. And I remember one applicant in particular who had just graduated from Harvard and who could not pass the test (even with two tries). Everyone was very surprised until we found out that the […]Read More

Curb Appeal for Marketability and “Appraisability”

March 14, 2019/in Appraisals, Our Blog

BAD LANDSCAPING COSTS SELLERS $200,000 I live near a home that was on the market for nearly three months before it finally ended up selling for over $200,000 less than its original list price. In contrast, I live near another home that is the same size as the home I just referenced, and it recently […]Read More

When Does It Make Sense to Refinance? Rules of Thumb

March 13, 2019/in Our Blog, Refinance

When I was researching today’s blog, I came across a December of 2010 blog of mine that said: “The refi boom is officially over.” I found that amusing b/c rates were about 1/2 percent higher than they are today, b/c rates fell almost a full percentage point in 2011, and b/c we have had so […]Read More

Be Lucky; Hire Lucky; Luck Can Be Cultivated

March 11, 2019/in Our Blog, Self Education

A friend of mine was recently promoted to the executive (“C-suite”) ranks of a nationwide food conglomerate and he is now set for life. When I congratulated him and asked what he attributes his success to, he said it is just pure luck. That response made me laugh b/c he was decidedly unlucky in so […]Read More

Both VA and FHA Require Formal Condo Approvals; Alternatives

March 8, 2019/in FHA, Our Blog

Most agents and borrowers know that condo complexes need to be “FHA approved” before a unit within the complex can be purchased with FHA financing. What many don’t know, however, is that VA has the same requirement. VA and FHA do not unfortunately maintain the same list of approved condo complexes. You can find FHA’s […]Read More

Only One In Five Willing To Apply for a Mortgage Online

March 7, 2019/in Mortgage Industry, Our Blog

We recently spent $26,000 on a new “point of sale” platform (Blend) to make it even easier for our borrowers to apply online. This was a lot for us as a small business, but it is nothing compared to the $80 million that Loan Depot spent to develop their online application and related technology. But, […]Read More

States With Lowest Mortgage Rates; CA Wins! Why? Bringing Low Rates To Texas!

March 6, 2019/in Mortgage Industry, Our Blog

Lending Tree recently did a study to see which states offered the lowest mortgage rates. And surprisingly, California (the land of all-things-expensive) won! The next best states for low mortgage rates were New Jersey, Washington, Massachusetts, Utah, and Colorado. The worst five states for rates were New York, Iowa, Arkansas, Oklahoma, and Maine. WHAT INFLUENCES […]Read More

Rate Locks – How They Work; Who Pays; Wells Fargo

March 4, 2019/in Mortgage Industry, Our Blog

Wells Fargo was sued in 2017 for charging borrowers for “lock extensions” even though the delays that fostered the need for the lock extensions were clearly Wells Fargo’s fault. It was blatantly dishonest on the part of Wells and they deserved the resulting bad press; you can read more about it here. At JVM, we […]Read More

JVM’s Hiring – The Most Talented People in The World 🙂

March 1, 2019/in Marketing, Our Blog

We are often asked how we so consistently foster such great client experiences. And while it is partly a result of our training, systems and culture, it is mostly b/c we hire extraordinarily talented people. And right now, b/c we are growing so quickly, we are aggressively looking for additional qualified candidates. Our current compensation […]Read More

Post Close Client Touches – Homebot Part II

February 28, 2019/in Marketing, Our Blog

“Hey Jay, Just wanted to let you know that I love this tool. Truth is I actually look forward to it. I like the perspective. Really good business idea. Keep it coming. Thanks! Nick” The above quote is one of many similar comments we get from our past clients in regard to Homebot. I blogged about […]Read More

Impound or Escrow Accounts & Why We Do Not Recommend Them

February 27, 2019/in Mortgage Industry, Our Blog

Impound or escrow accounts are maintained by lenders or servicers and are set up to allow buyers to pay their property taxes and hazard insurance on a pro-rata monthly basis instead of on a semi-annual or annual basis. For example, if property taxes are $6,000 per year, and hazard insurance is $1,000 per year, a […]Read More

8 Ways To Lower Debt Ratios & Qualify for More

February 25, 2019/in Homebuying, Our Blog

I repeat this topic from time to time b/c “Debt Ratios” weigh so heavily in our pre-approval process and b/c tight debt ratios so often prevent borrowers from buying the property they want. I explain what debt ratios are and how we calculate them in this past blog. 8 Ways to Lower Debt Ratios: Put less money […]Read More

JD Power’s Mortgage Lender Survey – What Borrowers Want

February 22, 2019/in Mortgage Industry, Our Blog, Uncategorized

The lender you refer your clients to is a reflection on you. I repeat that often b/c it is true and b/c we meet so many agents who are having issues with their lenders. In light of this, JD Power’s recent survey of borrowers should be of particular interest, as it illuminates what borrowers look […]Read More

Bankruptcy Seasoning Requirements – 0 to 7 Years

February 21, 2019/in Mortgage Industry, Our Blog

Here are the seasoning periods necessary after a borrower files for bankruptcy protection. FHA Financing with 3.5% Down Chapter 7 (Debt Liquidation) BK: 2 years from discharge Chapter 13 (Debt Payoff Plan) BK: 0 years with court approval if borrower is still in the BK. Conventional Financing All Bankruptcies: 4 years from discharge Jumbo Financing […]Read More

Marketing & Lead Gen – “There Is No One Thing”

February 20, 2019/in Our Blog, Real Estate

We work with a Keller Williams agent who closed 140 transactions last year (over $100 million in sales). When people ask her what she does to generate so much business, she always says: “There’s No One Thing.” Her comment always amuses me too b/c the namesake of her brokerage (Gary Keller) wrote a famous book […]Read More

The Importance of Perfect Shoelace Tying

February 15, 2019/in Our Blog, Self Education

John Wooden was one of the most successful people of all time, and his amazing record as UCLA’s basketball coach is proof of his success. He won 10 NCAA championships, and had a stunning 80% win/loss record. One of our favorite stories is how he started every season with the most fundamental of lessons: how […]Read More

Bedrooms 101 – Everything You Must Know About Bedrooms

February 14, 2019/in Appraisals, Our Blog

When my wife Heejin and I visit Austin, Texas, we stay (via Airbnb) in a small two bedroom bungalow that is worth close to $800,000.** If that same bungalow had three bedrooms though, it would be worth $50,000 to $75,000 more. In many Bay Area markets, those numbers would be much larger. ** Quick Tip: […]Read More

Divorce Season; Things to Know About Mortgages and Divorces

February 13, 2019/in Mortgage Industry, Our Blog

As a friend in the industry reminds me every year, “divorce season” is now upon us. People don’t like to file for divorce around the holidays or during hectic summers, so March turns out to be the peak filing month. With that said, I am repeating key information that everyone should know about mortgages and […]Read More

Rethinking Yelp – Why We Hate Them and Love Them

February 11, 2019/in Marketing, Our Blog

Here is an irony – some of the worst reviews on Yelp are of Yelp. They average two stars, and you can see them here. Credit to Yelp for not filtering them. WHY WE HATE YELP We hate Yelp b/c they seem to randomly filter our best reviews, they charge a fortune for their advertising […]Read More

When “Pa” Didn’t Wear Underwear; Authenticity In Marketing

February 8, 2019/in Marketing, Our Blog

My daughter recently had me read a fascinating book called Prairie Fires. It was basically the “true story” about Laura Ingalls Wilder, the author of all the “Little House” books. It turns out that the “Little House” books were almost entirely fictional and just carefully edited for mass read appeal; they were all about “a […]Read More

Property Condition: Old, Tired, Worn Is OK; Health/Safety/Structural Issues Not OK

February 7, 2019/in Appraisals, Our Blog

We once had a Realtor call us about a property that was formerly used for the “production of medicine” (aka an illegal weed farm). He asked whether the appraiser would call out the holes in the floor (for ventilation and grow lights) and the damage caused by the angry guard dog. The answer was yes, […]Read More

Five Misleading Closing Cost Tricks the Big Banks Play

February 6, 2019/in Homebuying, Our Blog

We sent out this blog right after the New Year and feel it is worth repeating now, as we’ve seen the below scenarios play out more and more recently. We have been stealing a lot of loans lately from the big banks b/c our service is better and our rates are lower. As a result, […]Read More

How Points, Origination Fees and Lender Credits Affect Rates

February 4, 2019/in Interest Rates, Our Blog

In Friday’s Blog, I pointed out how many things affect a buyer’s interest rate, including Credit Score, Loan Amount, Property Type, Lock Period, LTV, etc. But – I received questions asking how “points” and “origination fees” affect rates – the subject of today’s blog. POINTS, ORIGINATION FEES, & DISCOUNT POINTS Even though distinctions can be […]Read More

There Is No “30 Year Rate;” Many Factors Influence A Buyer’s Rate

February 1, 2019/in Interest Rates, Our Blog

We often have buyers or agents ask: “What is your 15-year rate today?” Or “What is today’s interest rate?” We always respond by explaining there is no single rate, b/c the market moves so often and b/c there are so many things that affect an individual borrower’s rate. Here are factors that influence an individual’s […]Read More

When Buyers Need to File Taxes Early?

January 31, 2019/in Mortgage Industry, Our Blog

In Monday’s Blog, I explained why buyers often do not need to file 2018 tax returns until October. But there is one case when buyers should file taxes as soon as possible. Self-employed buyers should definitely file ASAP if their 2018 income was higher than 2017’s (if they want to qualify for a larger loan […]Read More

Learning (a lot) From Dutch Bros Coffee!

January 30, 2019/in Our Blog, Self Education

Dutch Bros Coffee absolutely amazes me b/c they continue to open up new stores and thrive in the ridiculously crowded coffee shop field. There are many factors behind their success but one stands out above all of the others. Dutch Bros is an Oregon-based chain of over 800 drive-through coffee shops in the western U.S. […]Read More

When Do Buyers Need to File 2018 Tax Returns?

January 28, 2019/in Mortgage Industry, Our Blog

Lenders don’t actually need 2018 tax returns until October in most cases, as October 15th is the final deadline for filing. After April 15th, lenders will require 2018 tax returns OR a copy of the request for an extension that was sent to the IRS. If buyers provide a copy of their extension request, they […]Read More

Unison – 10% Down Payment Assistance For Small Share of Appreciation

January 25, 2019/in Down Payment, Our Blog

Unison is a company that contributes funds towards a purchase in exchange for a percentage of a property’s appreciation. Again – Unison only takes a share of a property’s appreciation, and not a share of the “total equity” like many people mistakenly believe. This type of down payment assistance is excellent for: Buyers with tight […]Read More

“It Takes At Least Ten Years to Build a Real Business”

January 24, 2019/in Our Blog, Self Education

BONOBOS FOUNDER GOES THROUGH HELL I was listening to the Bonobos (clothing) founder on the “How I Built This” podcast yesterday, and he was discussing the overwhelming issues he faced while trying to get his company off the ground. Among other things, he ran out of money and could not make payroll, he had a […]Read More

VA Loans – The Bad and The Good

January 23, 2019/in Our Blog, VA

I blogged about VA loans in October, explaining that they are the best deal in the mortgage world. VA loans have low interest rates, no mortgage insurance, and they allow for 100% financing. You can read my entire VA blog here. DRAWBACKS TO VA LOANS Despite all the benefits of a VA loan, there are […]Read More

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