The Mortgage Cafe

Put Your Finances In Order - Part 1 of 9

2007-08-01T19:13:00.000-07:00

I know that it can be rather stressing but believe me, you'll save money in the end. That is afterall what the goal right? Making your home purchase affordable!

I’m referring to your:

- Tax Returns
- Pay Stubs
- Checking Account Statement
- Savings Account Statements
- Mutual Fund Account Statements, etc.
- Copy of Your Credit Report (which I can give you for free along with an analysis of areas for improvement or how you can eliminate any errors reported)

Having these items ready will make it easier to locate the lowest rate and payment when you’re shopping for your home mortgage. [*Note: we'll talk about shopping around and the dangers of this later.] Be weary of advertisements offering the lowest rate. It’s similar to a Quest for the Holy Grail and all that really happens is you get caught treading water with the predatory loan sharks of the industry.

Now going back to your finances and your credit, it's a good idea to find out what your credit reports say about your financial history. It essentially gives lenders a look at how you manage your finances. To them, your credit report is what they use to determine your risk factor and ultimately your interest rate.

And if it's been awhile since you last looked, you might be surprised at the content of each report because errors are sometimes reported. There are ways you can clear up any mistakes.

Thank You!

Ricardo Bueno - Residential Commercial Construction Investment Advisor

Building Wealth Through Real Estate

You can reach me directly at 323.810.2175

Decide On Your Needs & Wants - Part 2 of 9

2007-08-01T14:58:00.000-07:00

Let's start by making (3) three columns...

Column 1 List "Must Have" Features:
- A specific neighborhood or school district
- (3) three bedroom or (2) two car garage
- Zoning restrictions ~ if you want to run a home-based business
- (1) one story or (2) story house
- Etc.

Column 2 List Features that "You Would Like":
- A deck or a swimming pool
- Whirlpool tubs or walk-in closets
- A particular type of architectural style
- Central air conditioning
- Etc.

Column 3 List Features that you "Do Not Want":
- A home next to a busy highway
- A certain type of architecture
- Homes that need too many improvements

Once you're done making this list, I would cross-reference this list with your significant other. And if you're lists don't match, it's time to start engaging in a little compromise until you're both in agreement.

Once you're both happy that you've reached an agreeable list, buying a home won't be so difficult since you know what you want. Now it's just a matter of consulting with your local Realtor to discuss the market in your particular desired area. And for that you can visit the Realtor's Corner. Remember, real estate is a localized market!
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Thank You!
Ricardo Bueno - Residential Commercial Construction Investment Advisor
Building Wealth Through Real Estate
I can be reached directly 323.810.2175.

Home Buying 101 | Key Steps in the Home Buying Process

2007-08-01T14:50:00.000-07:00

Once you begin to understand all parts of the home buying process, you'll feel confident with all the requirements of those involved in your transaction, as well as yourself.

Home Buying Process Overview:

- Put your finances in order
- Decide on your needs and wants
- Familiarize yourself with the mortgage industry
- Get Pre-Approved for a mortgage- Working with Real Estate Agents
- The fun part - Finding A Home
- Tasks to accomplish before you offer
- Making an offer
- Home Inspections and other tests- Correcting or avoiding problems at the last minute
- Closing

Congratulations!!

And remember, don't ever hesitate to ask questions... whether this is your first home buying experience, or your 21st, it's important to be sure you understand the entire process!

Real Estate is your largest Asset and a Mortgage your largest Debt. So if you're looking to build wealth through real estate, learn to leverage the two appropriately.

The steps outlined here should serve you as a general guide.

And also note that every issue you encounter will be specific to your transaction. But every problem has it's solution. So remember, "everything you do has to contribute to a strategy!" - R.B.

For more on Building Wealth Through Real Estate, give me a call and let's talk! 323.810.2175

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Thank You!

Ricardo Bueno - Residential | Commercial | Construction Investment Advisor

Ricardo Bueno is a Mortgage Advisor & Team Leader with Wilshire Financial, Inc. A diversified mortgage brokerage located in Pasadena, CA.

The Most Common Mistakes Home Buyers Make

2007-07-30T10:38:00.000-07:00

1) Timing Problems. Not planning the move to coincide with the end of their lease often creates budget problems. Check with your landlord about an early release clause from your lease if you are considering buying a home. This way you save yourself the headache of potential problems that may arise.

2) Looking at Homes You Can't Afford. You might find that when you do a reality check and start looking in your price ranges, that the houses are rather disappointing. Get pre-qualified and then stick within your budget.

3) Buying the Wrong Sized Home. Consider how long you plan on being in the property and plan for any lifestyle changes that could possibly happen.

4) Buying in a Neighborhood You Know Nothing About. Think about whether or not this neighborhood will make you as happy as the house does. Do your homework.

5) Operating on a First-House-is-Best Theory. Season your eyes by inspecting different types of homes. This will help establish your objectivity after coming from a renting situation.

6) Buying a Property That's Difficult to Resell. Walk yourself through all the negatives of the property.

7) Overextending Your Budget. Avoid feeling pinched - just because you have been pre-qualified to a certain level doesn't mean that is where your comfort zone is for payments.

8) Being Indecisive. Take all the time you need, but don't be afraid to make a commitment when you've found your dream home.

9) Choosing the Wrong Mortgage. The thirty-year fixed rate is not the only or necessarily the best answer. Have your lender show you on paper how much each program will cost you and how they compare with each other.

10) Under-insuring the Property. Forgetting to increase insurance coverage as the home appreciates in value or neglecting to properly insure the replacement value of the contents.

Thank You!

Ricardo Bueno - Residential Commercial Construction Investment Advisor

Toll Free: 866.934.3444 Cell: 323.810.2175

Ricardo Bueno is a Mortgage Advisor & Team Leader with Wilshire Financial, Inc. A diversified mortgage brokerage located in Pasadena, CA.

Wilshire Weekly Mortgage Update - July 30th

2007-07-30T09:27:00.000-07:00

Let's Recap:
The average 30-year fixed rate dropped to 6.69%, down from 6.73% last week.

The average 15-year fixed rate dropped only slightly to 6.37%, down from 6.38% last week.
The 1-year ARM on the other hand dropped to 5.69%, down from 5.72% from last week.

We can attribute this slight decrease in interest rates to weak Economic Reports from last week and continuing credit concerns; low Home Sales reports reflected a weakening housing market. We're seeing a slight decrease in interest rates because as we know, lower interest rates boost home sales.

Let's take a look:

Seasonally-adjusted home sales are down for the 4th consecutive month. They have now reached the lowest levels since November of 2002.

New Home Sales have encountered the heaviest decline since January.

Total Existing Home Sales (in the first half of this year), are 9.3% lower than sales in the first half of last year.

Year-to-date New Home Sales are down 21.7% from last year.

The Fed Funds Rate:

The Fed Funds Rate is currently holding at 5.25%. As previously stated in earlier weeks, we do not anticipate a change to the Fed Funds Rate during August 7th's meeting.

The Week Ahead ~ Outlook:
Continuing credit concerns are deterring investors and combined with continued housing market weakness (especially after this last week's Home Sales reports), we can anticipate slight interest rate cuts. But don't get excited just yet, we're still seeing continued bond market volatility and we're in line for another busy week full of Economic Reports.

For a view of the Economic Calendar, you can visit http://www.bloomberg.com/ or visit Ana Connell's (your Burbank Real Estate Specialist) version of The Week Ahead for a clearer description of what to expect.

Recommendation: As I mentioned last week, there still exists bond market volatility amongst continuing subprime market concerns and continued housing market weakness. I would still advise to lock-in a rate if it works for you (the consumer), or for your borrower (if you're an agent representing a buyer). If you're going to float, do so with caution! I'd be happy to advise you of any positive inter-day rate changes, simply send me an email at rbueno@wilshire-financial.com

Related Articles:
Credit concerns are spreading, says Bernanke By Krishna Guha inWashington and Richard Beales, Michael,MacKenzie and Saskia Scholtes in New York

Other Interesting Articles:
100% Financing On Jumbo & Super Jumbo Loans w/No PMI - Here's How
2nd Mortgages v. Home Equity Lines of Credit (HELOCs)
Free 24-Hour Recorded Information All About Mortgages

Thank You!
Ricardo Bueno- Residential Commercial Construction Investment Advisor
866.934.3444

Ricardo Bueno is a Mortgage Advisor & Team Leader with Wilshire Financial, Inc. A diversified mortgage brokerage located in Pasadena, CA - The City of Roses!

Points vs. No Points

2007-06-13T22:18:00.000-07:00

To Pay, Or Not To Pay...POINTS that is! What are they?

POINTS - An often mis-understood concept for the first time home buyer.
Question: What are points?
Answer: They are nothing more than interest that is paid up front; at the time of closing on your loan. You usually pay points in order to obtain a lower interest rate on a loan thereby making your loan payment more affordable.
For Example:

So what do YOU get out of paying $3,000? Paying (1) one point usually corresponds to 1/4 to 3.75/8 of a percent lower interest rate; depending of course on the loan program and your credit rating. Use the Loan Payment Calculator on my website.

CONSUMER: Should I pay points? Does it make sense?
MY ADVICE: Paying points can be a very prudent financial move if you're intentions are to remain in the home for a long period of time. Although the cost might seem daunting to some, the savings derived from the slight difference in a lower monthly payment corresponds to a tremendous savings over a 30 year period. For example, let's say paying (1) point saves you $100 per month. In order to recuperate the $3,000 cost of paying the point, you will have to wait 30 months (2.5 years). Every month thereafter, you earning savings! But, if you refinance before that 30 month break-even mark, you will have in essence wasted $3,000.

One of the most important questions to ask yourself when you borrow money: "How long do I need to borrow this money?
Thinking of the answer will accomplish two things for you: it will answer,
1. Should I pay points?
2. What loan program is best suited for me?
But remember, it's not a question how long you plan to live in the home but rather, how long are you likely to be in that particular loan program. You might decide to move and rent your residence while keeping the loan you initially obtained to acquire the property.

Thank You

Ricardo Bueno - Your Residential & Commercial Investment Advisor

Ricardo Bueno is a Mortgage Advisor & Team Leader with Wilshire Financial, Inc. A diversified mortgage brokerage located in Pasadena, CA - The City of Roses!
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Additional Resources:
Is your Realtor working for you? Read this article posted by

I rina Netchaev (your local Pasadena Realtor with Keller Williams)

Pasadena Realtor Tells All: SELLERS BEWARE!!!

Hello and Welcome!

2007-05-24T13:28:00.000-07:00

This blog is intended for those of you that are First Time Home Buyer's. Because I pride myself on creating a more informed borrower, I will provide you with all the tools/resources so that you are confident in that you are making a prudent investment. So don't be duped by the many loan sharks hounding the industry and telling you to simply sign here ...

Instead take a moment, grab a cup of coffee, and start reading my posts. You'll learn quite a bit about the world of real estate finance so that when you're ready to make that investment, you're confident and prepared!

If you have any questions, please do not hesitate to contact me directly at 323.810.2175. Or, for additional information, you can visit my website at www.RicardoBueno.com.

For the more advanced investor, you can visit my Real Estate Investments blog at www.equitygrowth.blogspot.com where I will be talking about strategies to maximize cash-flow & rates-of-return.