Agents Of Possibility

Are You Speaking English? Understanding Acronyms and Financing Terms

We are going to calculate the DTI which will include the monthly PITI. You will need to provide the EMD to Escrow and wait for the COE. Seriously! Are we speaking English?One of the first things you will be doing in your new home search is getting pre-approved for a mortgage loan. While going through this process, you will come across financing terms that you may not be familiar with. Your understanding of these financing terms will help you make an educated decision on what the best loan for you will be. In addition, while speaking with your loan officer, it is important you understand the process. Understanding some of the financing terms will help make sense of all that is going on.

• Adjustable Rate Mortgage (ARM)~ This type of loan has an interest rate that will adjust after a pre-determined period of time. The time periods can range from 6 months to 10 years.

• Amortization ~ the way a loan is paid off, with regular payments over a specific period of time. Payments must be sufficient to cover both principal and interest.

• Annual Percentage Rate (APR)~ the actual interest you are paying which factors in fees, points and other costs paid for obtaining the loan

• Appraisal/Appraised Value ~ A report completed by a qualified professional that makes a complete market analysis of a properties surrounding area to determine a reasonable value for a home. Based on comparable properties that have recently sold.

• AUS/DU/LP~ Automated Underwriting System/Desktop Underwriter (FNMA)/Loan Prospector(FHLMC) Using completed loan application information, an automated underwriting systems retrieves relevant data, such as a borrower's credit history, income information, asset information and arrives at a logic-based loan decision.

• Buy Down ~ Money paid to "buy down" an interest rate. Interest rates may be permanently bought down by paying points or temporarily bought down 1 year, 2 years or 3 years. Example: interest may start at 3% for the first year, 4% for the second year 5% for the remaining life of the loan.

• Caps ~  Both payment and interest rate safeguards set in place for an ARM loan that will not allow a payment or interest rate to increase over a certain amount in a given time period.

• Certificate of Eligibility~ Document given to qualified Veterans that show their eligibility to use the benefit of a VA Home Loan.

• Closing ~The date written into your offer as when the escrow will be completed. Money will be transferred to the seller. Close of Escrow date. (COE)

• Closing Costs ~ Expenses over and above the purchase price of the property for lenders fees, appraisals, property taxes, escrow and title fees.

• Conventional Loan ~A mortgage loan that is not insured or guaranteed by a government entity. A loan that will meet guidelines set forth by FNMA (Fannie Mae) and FHLMC (Freddie Mac) (also known as a conforming loan)

• Credit Report ~A detailed report of all loans, credit cards, car payments and the payment history for each. Will include all current and closed accounts. Will also include any liens or judgments in public record.

• Credit Score~also known as FICO score. Based on the information in your credit report, it is a statistical summary of the payment history. It is a mathematical summary calculation that gives numerical values to information in the credit report. YOUR CREDIT SCORE IS AN IMPORTANT FACTOR IN OBTAINING A MORTGAGE LOAN

• Debt to Income Ratio (DTI)~ This figure is calculated by taking any long term monthly debt and dividing it into your gross monthly income to determine affordability.

• Deed of Trust ~ Document executed by the borrower evidencing the debt owed to a lender. This document is recorded with the County Recorder's Office and will be public record of the debt.

• Discount Points ~ Prepaid interest based on 1% of the loan amount for each point. Paying discount points will help lower the interest rate being negotiated.

• Earnest Money Deposit~(EMD) Money given by a buyer to a seller to bind the contract. This money is held by the Escrow Company and will be applied to down payment at the close of escrow.

• Escrow~ A third party intermediary who will hold and disburse funds in the transaction. The Escrow Company will assist in getting paperwork signed and arrange the recording of documents.

• FHA Loan ~ A mortgage loan insured by the Federal Housing Administration. FHA loans have their own underwriting guidelines that must be met, but may also be underwritten by an automated underwriting system.

• Fixed Rate Mortgage ~ (FRM) A mortgage loan where the interest rate will remain consistent throughout the life of the loan.

• Good Faith Estimate ~ (GFE) Good Faith Estimate. This form is provided to explain the terms and costs of your mortgage loan.

• Impound Account ~ (AKA Escrow Account) An account set up for the buyer by the lender to collect monthly payments that will cover property taxes and insurance. The lender will pay these installments when they come due.

• Jumbo Loan~ A mortgage loan that is higher than the conforming loan limits that are set by Fannie Mae and Freddie Mac

• Loan Origination Fee ~a percentage of the loan amount charged by the lender to originate the mortgage loan.

• Loan to Value (LTV) ~ Based on the appraised value of the home, the amount of money borrowed. Example: A loan with 20% down payment would equal an 80% Loan to Value ratio.

• Lock or Rate Lock ~ An opportunity to lock in a certain interest rate for a period of time. Usually between 12 and 45 days.

• Mortgage Insurance, PMI or MIP~ insurance to protect the lender in the event of default required on any loan with less than 20% down. Please see a more detailed explanation in my post on What is PMI

• Note~ A written promise to pay back money borrowed from the lender. This will include the terms of the loan, interest rate, payment dates, lender and borrower.

• PITI~ abbreviation for describing a total monthly mortgage payment that includes Principal, Interest, Taxes and Insurance.

• Prepayment Penalty~ A penalty charged by the lender for paying off or paying down a loan prior to a specified date. Not as common today as in the past. It is important to ask if your loan has a prepayment penalty.

• RESPA (Real Estate Settlement Procedures Act)~ The requirement for lenders to provide detailed information to the borrower in advance of what closing costs are to consist of.

• Title Insurance~ An insurance policy issued by a Title Company that may cover the lender and the buyer in the event of unfound claims against the property.

• Truth In Lending (Reg Z) ~ Federal law requiring the lender disclose the annual percentage rate (APR) to the buyer.

• Underwriting~ A decision made to lend or not to lend money based on information provided by the borrower regarding income, employment, assets and liability. The property will also be considered in the underwriting decision. Condition and loan to value will be evaluated.

• VA Loan~ A loan guaranteed by the Veterans Administration available to qualified veterans. May require no money down.

This is a short list of financing terms that will at least help you more fully understand the basics of the loan process and some of the forms that will accompany your process. Be sure to ask questions on anything you do not understand, continue to ask until you do. We are so used to talking to people in our industry on a daily basis that often times the terms and phrases that are used are just assumed to be known to the lay person. You should feel comfortable throughout the process you know what is going on. Surprisingly, we are speaking English! Now you should understand a little more about the acronyms used in financing terms!

For information on choosing a lender, please see my post on the Importance of a Good Lender. Happy House Hunting!

Do you text or tweet or update your FB status while you drive? Maybe you should give that bad habit a second thought.

If you are thinking abuout selling your home, this is really worth the read. Over pricing a home will only prolong the process. It will cause many buyers to look elsewhere that could be potential new homeowners of your wonderful home. Working with a REALTOR that understands your market and can provide you with the comparable sales in your neighborhood will help you sell your home quicker and for what it is worth!

What's In The Water At La Jolla Shores?

La Jolla Shores is one of the best beaches in San Diego County. You will find that the warm water and beautiful summer days bring more surfers, swimmers, kayaks and snorkelers to the sparkling water. What else will you find in the water at La Jolla Shores?

You are likely to find an occasional jellyfish, sea lions playing in the surf, a few sting rays, dolphins or strands of kelp. Most of these ocean occupants are harmless. When getting in the water, most know to do the "sting ray shuffle" which is dragging your feet through the sand to avoid stepping on a ray or jellyfish.

But recently, there have been a couple different sightings of sharks! The sightings occurred Sunday by a kayaker that was fishing from his boat and came eye to eye with the giant fish and then later in the afternoon another sighting by lifeguards. Both eyewitness descriptions are consistent with a Great White, but remain inconclusive as to the actual species since the sightings were brief in both cases.

Shark experts at the Scripps Institute for Oceanography say the California Coast is home to many sharks but most of the time they are just not seen. SIO does not feel that the sightings are a threat, as humans are not in a sharks food chain. They are targeting sea lions and seals.

Great White sharks are one of the species of sharks that researchers have the most questions. They are found throughout oceans world wide, but researchers do not know how far they travel or how many exist. With recent satellite tracking, we are beginning to learn more about the species and their habits. With this recent research, it appears that the Southern California coast is a nursery ground for the Great White with most sighted being between 4 and 10 feet long. These juviniles hunt mostly fish so the likelihood of one mistaking a swimmer for a seal or porpoise is almost nil.

There have been numerous great white sightings over the last week from La Jolla Shores to San Onofre State Beach. Chuck Patterson took the video below from his stand up paddle board off the coast at San Onofre about 6 days ago.

The warning has been lifted as there has not been any sightings over the last 24 hours. But if you are planning to go to the beach, don't forget a good book, a towel, your sunscreen and be cautious because you never know What's In The Water At La Jolla Shores!

Back To School! ~Rio Seco ~ Santee

The countdown begins! Back to school for Rio Seco is September 7, 2010. Rio Seco is located at 9545 Cuyamaca Street Santee, CA 92071. Beep! Beep! Go Roadrunners!

Rio Seco Students are grades K-8 and begin the school day at 8:30 am. Depending upon the grade will determine the end of the day.

Rio Seco School ranks 9 out of a possible 10 for statewide academics. Take a look at the School Accountability Report Card for complete statistics.

The Mission Statement of Rio Seco states:"Our motto is "We Support Rising STARS".  Rio Seco STAR students excel in Scholarship, Talent, Attitude and Responsibility.  Our mission is to challenge all students to reach their highest potential while supporting them on their personal journey to excellence.  We provide a safe, nurturing, child-centered environment dedicated to the education of the whole child.  Our vision is that every child will be provided with the means and the opportunities for educational growth and personal development to become a productive, responsible lifelong learner. "

Rio Seco is a school that reflects a commitment that all students can learn and one that encourages all students to be academically successful.

Rio Seco welcomes Parent Participation! Maybe it is joining the PTA, volunteering in the classroom, Safe Schools Committee or School Site Counsel. Be a part of your child's growth and volunteer!

Back to School! Rio Seco ~ September 7, 2010 ~ Make it a Great Year!

Back To School! ~ Pepper Drive ~ Santee

The countdown begins! Back to school for Pepper Drive is September 7, 2010. Pepper Drive is located at 1935 Marlinda Way El Cajon, CA 92021. The Tigers campus is always alive with active students and parents! Tiger Pride!

Pepper Drive Students are grades K-8 and begin the school day at 8:30 am. Depending upon the grade will determine the end of the day.

Pepper Drive ranks 7 out of a possible 10 for statewide academics. Take a look at the School Accountability Report Card for complete statistics.

The Mission Statement of Pepper Drive states: "Our vision is to create motivating learning experiences within a respectful and safe environment that results in high levels of intellectual, physical, social and emotional development for our students, their families and our community."

Pepper Drive also provides students with many tools to reach their highest potential. Check out the Character Counts and Peace Builder programs that provide students traits that will enhance success today and as future adults. Honesty, Trustworthy, Caring, Kindness and Respect are the character traits and are proudly displayed throughout the school!  

Pepper Drive welcomes Parent Participation! Be a part of your child's growth and volunteer!

Back to School! Pepper Drive ~ September 7, 2010 ~ Make it a Great Year!

Back To School! ~ Chet F. Harritt ~ Santee

The countdown begins! Back to school for Chet F. Harritt  is September 7, 2010. Chet F. Harritt is located at 8210 Arlette Street Santee, CA 92071. Home of the Cheetahs!

Chet F. Harritt Students are grades K-8 and begin the school day at 7:45 am. Depending upon the grade will determine the end of the day.

Chet F. Harritt ranks 8 out of a possible 10 for statewide academics. Take a look at the School Accountability Report Card for complete statistics.

The Mission Statement of Chet F. Harritt states:"Chet F. Harritt School believes our common vision is a commitment to a student-focused community challenged by rigorous curriculum that fosters both critical and creative thinking. Provided with a personalized, safe learning environment, students will demonstrate higher-order reasoning skills, service to the school and community, and compassion toward all individuals. Each student will leave Chet F. Harritt with the tools necessary for a lifelong commitment to citizenship, service, and learning."

As one of California's Distinguished Schools, Chet F. Harritt also provides students with many tools to reach their highest potential. The Accelerated Reader Program is one of the may ways your child can enhance their learning experience!

Join the Breakfast Club Wednesday mornings at Chet F. Harritt. The Breakfast Club consists of parents, grandparents and volunteers who get together to help the teachers with a variety of different projects. Working together with your childs school to provide quality education is another great way Chet F. Harritt is providing your child with the quality education they deserve!

Back to School! Chet F. Harritt ~ September 7, 2010 ~ Make it a Great Year!

Back To School! ~ Cajon Park ~ Santee

The countdown begins! Back to school for Cajon Park is September 7, 2010. Cajon Park is locatedat 10300 Magnolia Ave. Santee, CA 92071. Cajon Park is where falcons soar!

Cajon Park Students are grades K-8 and begin the school day at 8:00 am. Depending upon the grade will determine the end of the day.

Cajon Park ranks 9 out of a possible 10 for statewide academics. Take a look at the School Accountability Report Card for complete statistics.

The Mission Statement of Carlton Hills School states:"Cajon Park's mission is to challenge each individual student to reach his/her highest potential by recognizing and stimulating individual abilities and providing the basic knowledge and skills for achieving grade level learning standards."

Cajon Park also provides students with tools to reach their highest potential. Cajon Park believes in holding each student accountable for their behavior as well as academic achievement!

Cajon Park welcomes Parent Participation! By parents and staff working together will provide students optimum opportunity to succeed at their highest potential! 

Back to School! Cajon Park September 7, 2010 ~ Make it a Great Year!

House Needs Work ~ Don't Give Up Hope!

Many homes we see today need some serious work. From missing kitchen cabinets, no toilets, no carpet... So the house needs work ~ you have vision! Talk to your mortgage professional today about 203k! (Hey I am a poet and didn't even know it!)  This is a fantastic post about the 203k loan in which many people are unaware of. There are many properties in San Diego County that are on the MLS that require rehab loans. Hope this information is helpful!

Save Money On Taxes!

You read it right! Save money on your property taxes! If you have purchased a home recently within San Diego County, you may have already received a form from the Assessors Office for a Homeowner's Property Tax Exemption. If you have not already done so, make sure you complete the form and send it back to the Assessor's Office! If you are not sure if you have received the form or don't remember filling it out, don't wait! Print it now!

This Property Tax Exemption is for homeowners who occupy their property as their primary residence. At the time you purchased your home, the purchase price is considered to be the "assessed value" of the property. The Tax Collector uses this value to calculate what your taxes will be. When you file for the Homeowner's Property Tax Exemption, the assessed value will be reduced by $7000 which will save you about $70 a year on your property taxes!

There is no fee to complete the paperwork, and once you have filed for the Property Tax Exemption, it will remain on the property as long as you own it and keep it as your primary residence.

This Property Tax Exemption is not available if the property is an investment property or if you claim a Disabled Veteran's Exemption.

If you currently own a home and are not sure if you have filed for the Property Tax Exemption, take a look at your most recent property tax bill and it will tell you if it has been filed. If you have not filed, be sure to do so! $70 is $70! That would pay for 2 tanks of gas in my car! Every little bit helps these days!  

If you have any questions or need assistance in completing the Property Tax Exemption form, I am available! I would love to hear from you!

Homes For Sale Santee, CA ~ Mission Martinique

This great community of townhomes known as Mission Martinique are one of Santee's hidden gems. Tucked up and away off of Mission Gorge on the west side of Santee,  you probably have driven by and didn't even know they are here!

The townhomes in Mission Martinique offer two level units as well as single level upstairs or downstairs units. Each offer from 2-3 bedrooms with 2 baths. Single car garages offer direct access to the unit. With the benefit of cul-de-sac living, the complex offers mature landscaping and plenty of play space for the kids. Many of these units have been upgraded to add modern style and quality amenities like granite counter tops, stainless steel appliances and dual paned windows.

Enjoy the great Santee summers at the great community pool and spa along with clubhouse and BBQ's. Invite the family and friends with no worry about parking. Plenty of guest parking is available.

Mission Martinique becomes even more attractive with the low HOA fees. Some of the lowest in Santee!

Mission Martinique is just minutes from Mission Trails Regional Park which provides 5800 acres of hills, valleys and open area with plenty of hiking and walking trails, equestrian trails and activities to support your active lifestyle. Big Rock Park is right around the corner for basketball or tennis. Don't forget to visit Santee Lakes for fishing, camping, paddle boats or just a lazy Saturday afternoon.

Chet F. Harritt Elementary and West Hills High School. both provide quality education Santee is known for.

Just minutes from 52 and 125 your commute from Mission Martinique to any part of San Diego is easily accessible.

Take advantage of the convenient shopping which is not too close, but not too far! Santee has everything you need with Kohls, Lowes, Home Depot, and Target. Santee Trolley Square provides access to the Trolley, bus depot and year 'round entertainment! From the Summer Concert Series to the Santee Street Fair, Santee is a wonderful, family community.

Mission Martinique is one of the highly desirable neighborhoods Santee has to offer. Are you looking for homes for sale in Santee? Santee is my hometown, let me show you around!

No Photo Available

Really? In today's technology savvy age how can a listing not have photos? We have cameras on our phones, cameras that fit in our pocket, camera's built in to our video cameras, cameras on our computers. We do not have to take our film to be developed. HOW HARD IS IT?

Working with three separate buyers this week, all pretty Internet savvy, asked the same question: "How do people think they can sell their home without any pictures?" I asked if there was any of them they would like me to preview for them and take pictures and all said no thanks!

Sellers, when choosing a listing agent to sell your home, one of the questions should be how the home is going to be marketed. Ask when pictures will be taken. Ask to review them. Even if you are not living in the property, make arrangements so that pictures can be taken.

As listing agents, one of the commitments we make to our sellers is to market their home. The LEAST of which is taking photographs for the MLS. Our Sandicor MLS has a requirement of photographs within 72 hours in addition to the ability to handle 25 pictures! 25! That in itself is testament testament of how important pictures are.

Yet still their are listings without pictures. Even if it is within the 72 hour time period and you are getting pictures on shortly, think of how many potential buyers have now just skipped this listing over. Take the time to add photos when you add the listing!

Don't let your listing show up as NO PHOTO AVAILABLE. The buyers are saying it loud and clear. We are not interested!

Homes For Sale Lakeside, CA ~ Paseo Park

Located in San Diego's beautiful East County, Lakeside is nestled among the hills and provides East County living at it's finest. Paseo Park is one of the many Lakeside neighborhoods you can be proud to call home.

Bordering both Santee and Lakeside, Paseo Park is tucked away just below the rolling hills. The streets are quiet and surrounded by beauty. The homes in this neighborhood were built in 1985-1987 and range from 1107 to 1541 square feet along with 3-4 bedrooms and 2-3 baths. 

Paseo Park is a family friendly, secluded neighborhood. The homes here in  Paseo Park definitely reflect pride of ownership. You will come home to wide streets and grand cul-de-sacs; great for an afternoon of bike riding or skateboarding! The homes in this neighborhood all have maturing, plush landscaping that add to the charm.

This Lakeside community is within walking distance to the Lakeside National Little League Fields where you can play ball or walk the dog. Within minutes to Lake Jennings, the San Diego River or Lindo Lakes Park, early morning fishing can start the weekend off right! Don't forget to stop by Hilker's Ranch Fresh Eggs for that yummy weekend omelet!

Paseo Park kids will love Lakeside Farms Elementary, Lakeside Middle School and El Capitan High School.

As a resident of Lakeside, don't forget to check out the Bulls Only Rodeo every July at the Lakeside Rodeo Grounds! You gotta try it at least once! 

Paseo Park is conveniently located with easy access to Highway 67 to make the commute an easy one. Even easier once the connection to Highway 52 is completed at the end of 2010.

Paseo Park is just one of the many terrific neighborhoods in Lakeside. Are you looking for homes for sale in Lakeside? East County is where I live and play, let me show you around!