Guarantee Mortgage offers advice for those rebuilding following California wildfires

The loss of life and property of unimaginable proportions struck so many communities in our area in recent weeks due to wildfires. Our hearts go out to everyone impacted by this tragedy. As families and communities begin to rebuild and restore their lives, Guarantee Mortgage wants to offer its encouragement and support. We truly hope to lend a helping hand to our friends in the North Bay communities affected by the fires. We’ve put together some information that may provide guidance and hope during this difficult time. If your home was fully or partially destroyed, you probably already contacted your insurance company or agent. Here’s a friendly reminder to touch base with the company again and get in contact with your mortgage servicer as well. Also, continue to make your monthly mortgage payments. These steps are vitally important as you move forward. With that in mind, you may be wondering what a typical process for handling insurance claims is. Please understand that it may vary by servicer. However, here is a checklist of what you could expect during this process: Give the insurance adjustor’s report to your servicer. Provide a repairs or construction estimate. A licensed, experienced and qualified contractor should be used by the borrower. Insurance claim checks should be paid to the mortgage company and borrowers. Property inspections may be required by the servicer during the process. A final inspection should be expected. In order to release the final disbursement and finalize the claim, a final lien waiver will be required. It’s too early to tell what kind of immediate impact the fires will have on home prices and sales in the North Bay. Some residents who plan to rebuild, a process which […]

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As Bay Area market continues to sizzle, Guarantee Mortgage offers programs to meet buyer demands

San Francisco and two neighboring Bay Area cities (Vallejo and San Jose) recently ranked as the top three hottest markets in the United States for the month of August. California, in fact, is home to 10 of the top 20 most prosperous markets, according to an analysis by realtor.com. Home prices remained at historic highs, while homes came off the market at a faster pace than last year. The lack of inventory is labeled as a contributing factor to quick sales and increasing prices. Shrinking inventory has also led to a drop in overall sales in the Bay Area, while prices continue to climb, according to The Mercury News. Year-to-year, prices are up by more than 10 percent, putting the usual cost of a single-family home at $804,000. As a consequence, current homeowners may feel uneasy about selling their home and moving to another Bay Area neighborhood, where bungalows of 1,000-square-foot are going for over seven figures, according to The Mercury News. Low inventory compounds the concern shared by some families that landing another Bay Area home is an uphill battle. Guarantee Mortgage has a solution. People wishing to buy in the Bay Area can maximize their dollar and get into their dream home with one of our signature High Balance and Jumbo Loan Solutions programs. These two loans help expand our clients’ options, particularly when the balance exceeds the conforming loan and conforming high-balance loan limits, or when they have less than 20 percent for a down payment. The conforming loan limit for a single-family home is generally $424,100, but can be as high as $636,150 in certain high-cost areas. The program allows for a loan to be split between a first and second mortgage, […]

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Loan program opens doors for high-asset applicants with irregular income

Various factors determine a homebuyer’s eligibility to secure a mortgage loan. For some, obstacles may include unestablished credit, an inability to provide a high enough down payment or an unfavorable debt-to-credit ratio, just to name a few. Even those who have a high net worth and assets may encounter difficulties during the mortgage application process. This can be a problem for many buyers in the Bay Area. Professionals who rely on freelancing or consulting for their income, for example, may find it difficult to land a loan as a result of their unconventional monthly income. Here at Guarantee Mortgage, we understand the ever-changing economy and workforce. That is why we offer our clients the opportunity to qualify for a loan even if they are in a unique financial situation with our Asset Inclusion Home Loan Program. With this program, applicants may not be disqualified for a loan because of unsteady income. If an applicant has the correct amount of assets, the program is tailored-made for them because the buyer can factor in their remaining assets as part of the application. Remaining assets are those that are available after the down payment and closing costs are subtracted from the applicant’s fund. In effect, the remaining balance of assets acts as qualifying income. Guarantee Mortgage will use a formula to establish a percentage of the assets left and when divided by the period of the loan, it can then be used as monthly income or qualifier for the mortgage loan. The level of assets will be the determining factor for how much of a loan an applicant will qualify for. Other qualifications may include, but are not limited to, up to 80 percent Loan-to-Value, escrow account requirement […]

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New home loan program expands financing access to Bay Area borrowers

If a bigger home has become more prudent or you are seeking a nicer neighborhood for your family, you may be looking for the perfect solution to finance your dreams. Sometimes, however, the price for your dream home may feel a little out of reach. A jumbo loan could be the right solution, but it may not be for everyone. Jumbo loans are for premium real estate areas that exceed the conventional conforming loan limits, but the terms and limits can vary. Jumbo loan interest rates tend to be higher and larger down payments are required, but these loans are available in a variety of fixed or adjustable rates. Often times, these loans are perfect for Bay Area buyers as cost of living and home values increase. Some Bay Area buyers can be denied for Jumbo Loans, however. When that happens, all is not lost thanks to a new loan option Guarantee Mortgage offers. Our new Expanded Access Loan Program opens the door to borrowers who may have encountered some difficulty on their journey to homeownership. Guarantee Mortgage is committed to working with all future homebuyers and this program is for borrowers who do not fit standard home mortgage financing guidelines, or who may have not been able to secure a jumbo loan for various reasons, ranging from debt-to-income ratio to credit score. The Expanded Access Loan Program is suited for people who seek a second chance. Here’s some of what it covers: Loan amounts between $100,000 and $2 million. Up to 90 percent loan-to-value (need documentation). Up to 85 percent loan-to-value with bank statement. Allows a 620-minimum credit score. Guarantee Mortgage is here to tell you that the reasons you may have been held […]

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5 things to expect during the loan closing process

Buying a home is a series of steps. Each one serves an important purpose and depending on the pace and circumstances of your home-buying experience, some of these processes may overlap with others. While searching for a home and attending open houses are two very exciting processes you and your family will enjoy, it’s also important to know what to expect during other phases that involve numbers, legal documents and a third-party. The loan closing process is the last step you take on your journey to homeownership. Here are five key steps that happen during the loan closing process. Underwriting During this step, underwriters confirm information through documents that support your financial status and claims. This may include calling your employer to verify employment and salary, for example. If you are self-employed, the verification process may take slightly longer. Appraisal When you find a home, and enter into contract, the lender will appraise the property to ensure that the house is worth the amount it will lend. The lender’s independent appraisal could have an impact on your rate and terms. The estimate you received should fall in line with the finalized costs, barring any big surprises. Title Research Following the appraisal, the title company will examine the home’s past. The main reason for this discovery is to ensure that no liens are held against the home. The title company will look for things like pending litigation and past-due tax payments. Once everything comes back clean, the title company will deliver a policy that breaks everything down in order to protect both parties. Sign Legal Documents At the tail end of this important process, you will have some legal documents to sign. You can expect to […]

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