5/30/24 – What goes into a pre-approval? I hope the week is going well, and thank you all for the birthday wishes yesterday! Every year, it’s so nice for people to think of me on my birthday, and I should do more of that during the year, but I don’t! So happy belated birthday to all of you who have had a birthday in the past year. I did not say anything! Sorry, I suck as a birthday wisher, but I love you all, and I apologize! What is more important is what I am seeing in the market, and it is urgent to get pre-approval and to know what we can do to release contingencies. This is the same market we have been in for many years, and once my team and I have a client pre-approved, we do not need any loan contingencies 99% of the time. Do we like them? YES! Do we try to abide by them? Of course! Do we have a say in a 10-day contingency or a 17-day? Sometimes! If a client puts 10% down on a $900K house, and we think it will appraise in the 860-875 range, we are OK with releasing the appraisal contingency! Even at 860K, we will have 5% down, and the only thing that will change on the loan is a slight move in PMI. A house rarely gets bid up more than 5% above the last comparable sale, but it does happen, so we would like to check the comps before releasing the appraisal. Getting a client pre-approved can take anywhere from 15 minutes to 3-4 days if you need to get a verification of employment to break out Overtime, commissions, or bonuses. We have to go through assets and see if there are large deposits. We have to verify where they work and if the commute will work for the investors. Sometimes, we have to pull addresses of properties they currently own and ensure that this will indeed work as an owner-occupied residence. There is a lot to it, but at the end of the day when we say they are pre-approved, then we will get the deal done! I know other lenders look at credit, and then the underwriter does the rest when it gets into escrow, and you are on pins and needles as the deal is in escrow! I have had potential clients question why we ask for everything at the beginning of a file. The answer is so we can get you pre-approved and give you the best odds of getting your offer accepted. We don’t like to do things halfway, and we always want to make the client and agents happy. We occasionally have to jump through a few hoops, but we always get the job done! I hope you have a wonderful weekend. I am available if you need anything. Let me know if you have any questions or if someone is interested in buying a property! My cell is 661-714-6258, and my office line is 661-260-2970 ext. 2222. My direct line is 661-291-2222. When you text, text (661-714-6258) or email me at Mike@AugustaFinancial.com. But wait, there’s more! Interest rates are better today, but they lost ground yesterday! No real direction yet, but let's hope we can win a few more than we lose in the coming weeks! 12-day escrows if your buyer is pre-approved - Conventional / FHA / Jumbo / Bridge We do loans in all states, so call me with anything you need. Government Loans (FHA / VA/ USDA) are in the high 5’s and low 6’s Conventional Loans up to $766,550.00 are in the high 6’s and low 7’s High Balance Loans $766,550.01 – $ 1,149,825.00 are in 7’s Jumbo loans above $1,149,625 are in 7’s Bank statement loans - They are available with 10% down again! 7’s to 9’s depending on down and credit score. Profit and Loss Statement loans- You don’t need bank statements, just a profit and loss statement! No income qualifier – 40% down with reserves! In the 8’s! 0 down loans are in the high 7’s – 660 credit score min right now, up to $793,000.00. Private Money lenders - Hard Money Loans – 35% down! No Ratio Loans 30% down DSCR – Debt Service Coverage loans with as little as 15% down Bridge Loans - typically 7.99% with limited fees – and they get you where you need to go! 0 down California Dream for all Equity Share – Registration April 3 to April 29, 2024 3/2/1 Buydowns 2/1 Buydowns and 1/0 Buydowns are available at great start rates! Interest rates are subject to change without notice! The above are LA County Loan Limits. Condo Update? Nothing new yet this week! Condo / Townhome – issues we know of now. Properties can be financed with 10% down and are considered NON-WARRANTABLE: American Beauty Condos – The brown ones – Insurance – 50 Mil in coverage for 748 units is not nearly enough! American Beauty Gardens: 19% delinquency on special assessments due. 19% are 60 days or more late! We can do with 5% down, but others can’t! American Beauty Village: On Fannie’s List. Per Fannie, this project needs critical repairs and may have conditions such as material deficiencies and significant deferred maintenance. This project’s master insurance policy deductible exceeds the allowable limit Bouquet Canyon Village is on Fannie’s list! Per Fannie – This project’s master insurance policy coverage does not meet the requirements Bridgewater, Emeryville - On Fannie’s list! Brookside Walk – Insurance – Cabrini Villas, Burbank - On Fannie’s list! Calla and Rowan – 27513 Illumination – Fannie Mae Approval expired – New Construction. See Blog on 5/7/2024 Canyon Village – Reserves and 10% of the dues not going to reserves! Canyon Oaks – Insurance On Fannie’s list! Casa Marabella – 13951 Sherman Way, Van Nuys -On Fannie’s list! Cassia and Jasmine – 26949 Winding Trail Court – Fannie Mae Approval Expired. See Blog on 5/7/2024 Cornerstone – Insurance -On Fannie’s list! Creekside – ??? We don’t know Encino Oaks – 5460 White Oak Ave – On Fannie’s list! Lantana at Valencia – 27034 Hummingbird Lane – Fannie Mae Approval – expired. See Blog on 5/7/2024 Liberty Canyon HOA – 27409 Country Glen Road, Agoura Hills, CA- On Fannie’s list! Madison at Towne Center – Litigation – We can do with 5% down, but others can’t! Mariposa: On Fannies List. Per Fannie Mae – This project’s master insurance policy coverage does not meet the requirements. Orchid at Valencia – 27033 Open Sky Place – Fannie Mae Approval Expired. See Blog on 5/7/2024 Penn Court HOA – 4201 Pennsylvania Ave La Crescenta On Fannie’s list! Princessa Estates – has $8200 in Reserves, and they are voting on an assessment in May! Rainbow Sierra Terrace – On Fannie’s Naughty List – This project’s master insurance policy is not written to Replacement Cost Value. See Selling Guide Sec. B7-3-03, Master Property Insurance Requirements for Project Developments. Scenic Hills – Insurance – On Fannie’s list! This project’s master insurance policy coverage does not meet the requirements in Selling Guide Sec. B7-3-03, Master Property Insurance Requirements for Project Developments. Shadow Ridge – Oak Park – Insurance -On Fannie’s list! Sherman Way Condos – 17900 Sherman Way Reseda – On Fannie’s list! The District Community Association – 19533 Cardigan Dr, Northridge – On Fannie’s list! Treana - Stevenson Ranch: On Fannie’s list! Per Fannie, this project needs critical repairs and may have conditions such as material deficiencies and significant deferred maintenance. Valle Di Oro- On Fannie’s list! Per Fannie Mae, this project contains timeshare, fractional, segmented, or split ownership units or other arrangements (such as mandatory rental pooling, shared interest apartments, or community apartments) restricting the unit owner’s ability to occupy the unit. Vista Del Canon – Insurance is too low, UGH! Walnut Gardens II – 7320 Lennox Ave Van Nuys CA – On Fannie’s list! Warner Center Condos – 5515 Canoga Ave, Woodland Hills, CA – On Fannie’s list! West Creek Condos and Townhomes: On Fannie’s List. Per Fannie, this project’s master insurance policy coverage does not meet the requirements in the Selling Guide! Please let me know if you hear anything new on condos or townhouses. I am still available all weekend if you need anything. Let me know if you have any questions or if someone is interested in buying a property! My cell is 661-714-6258, and my office line is 661-260-2970 ext. 2222. My direct line is 661-291-2222. When you text, text (661-714-6258) or email me at Mike@AugustaFinancial.com. Have a great day and an even better tomorrow! Please call me when you have a client who needs to borrow! Mike Meena President | Loan Officer Click to Call or Text: (661) 714-6258 This entry has 0 replies Comments are closed.
