San Diego Real Estate Matters

How To Determine Whether Your Loan Officer is Reputable

lvargas — Tue, 20 Nov 2007 23:14:15 +0000

How To Determine Whether Your Loan Officer is Reputable

In slower markets, some loan officers may feel pressured to close deals that aren’t in the homeowner’s best interest. In order to avoid getting into difficult and financially compromised positions with their mortgages, borrowers are well advised to be acutely aware of the signs of a responsible loan officer when selecting a mortgage professional.

First, look for a Mortgage Planner whose values are focused on helping individuals to achieve their financial goals in both the fastest and the safest way possible. A reputable Mortgage Planner will show you the numbers associated with the proposed loan and provide you with concrete information that backs up his or her claims. Review all of the numbers. If they don’t add up, ask for clarification. If your loan officer can’t or won’t answer your questions, move on–without the loan.

Secondly, a responsible Mortgage Planner will present you with financial information that goes beyond the point of the transaction, and will illustrate the total cost of the loan over time. If your loan officer is focusing only on rates and fees, you may be working with someone who’s looking out for his or her own best interests, not yours.

Responsible Mortgage Planners such as the one that we work with Lisa Vargas (www.LisaVargas.com ), will also tailor their strategies to fit your unique situation. In other words, they always take your personal financial goals into account. No one should try to place you into a loan without knowing the intricacies of your personal financial situation.

Finally, if your loan officer is advising you on issues other than mortgages, you could be working with someone who is compromising your best interests. Issues like investment rates of return and real estate appreciation aren’t the areas of expertise for the vast majority of mortgage professionals and should be left to the professionals who have training and direct experience in those areas.

When seeking a loan officer, look for someone who specializes in mortgage planning, which is the process of evaluating a borrower’s unique financial situation and advising the borrower on a loan that best suits his or her individual needs and goals. If your loan officer is trying to put you into a loan without evaluating how that loan will effect your entire financial situation–including debt management, tax benefits, investment goals and net worth–it’s quite possible that you’re only getting half of the picture.

The bottom line is that your mortgage representative should always be looking out for your best interests, regardless of market conditions and this is why we recommend Lisa Vargas, with Mortgage Loan Specialists. She can be contacted at lisa@lisavargas.com . You may also call her at 619-929-4502.

Prices fall in all corners of San Diego

lvargas — Tue, 20 Nov 2007 23:00:59 +0000

By Roger Showley
STAFF WRITER November 15, 2007

Home prices fell last month in all six major Southern California counties for the first time in 12 years, prompting some economists to wonder whether the housing decline will push areas of the state into a recession. But San Diego County, one of the first markets to see a housing downturn, may be among the first to recover, one prominent economist said. DataQuick Information Systems reported yesterday that sales from Ventura to San Diego were at their lowest for any October since the La Jolla-based firm began keeping records in 1988.In the greatest drop-off, year-to-year sales were down 54.8 percent in San Bernardino County. For the first time since 1997, housing prices in Los Angeles County declined.As has been the case for several months, San Diego County’s slide was not as severe as other counties’ drops.

“Oddly enough, I think San Diego is one of the first markets to go south, but I think San Diego is further along in the painful adjustment than others in Southern California,” said Ryan Ratcliff at the UCLA Anderson Forecast.

He and other economists said that if any market is heading for recovery, it is San Diego’s. They’re looking at possibly late next year but most likely by early 2009. But other analysts warn that San Diego could experience a recession if economic conditions deteriorate and consumer spending ebbs.DataQuick said median prices in Southern California fell 8 percent to $444,000 last month, down from $482,750 in October 2006. Figures were not available for Imperial County.

With Los Angeles County showing a 3.8 percent decline in prices, it was the first time all six counties went negative since November 1995, which was the end of the last recession.

Median prices in Riverside County fell the steepest, down 15.1 percent from October 2006 to $350,000 last month. San Diego County, as DataQuick reported this week, was down 6.1 percent to $460,000 – a figure last seen in May 2004.

Economists cited four factors working to keep the housing market depressed:

High prices that have scared off buyers.

Tighter lending standards forcing potential buyers to the sidelines.

Untenable loans that have thrown many homeowners into default when their mortgage payments adjust upward.

Disruption in the jumbo loan market (those over $417,000) brought by the mortgage market upheaval.

“The high end was getting slammed just as much as other tiers of the market,” said Robert Kleinhenz, deputy chief economist at the California Association of Realtors. DataQuick said purchases involving lower-priced loans were down the usual 20 percent since summer, but those carrying higher-priced jumbo loans were down 60 percent.

Sales in Southern California plummeted 45.3 percent from October 2006 to 12,999 last month, the slowest October in DataQuick’s records. However, DataQuick analyst Andrew LePage said sales were up from September and pointed to a 7.9 percent increase in sales of new homes and condominium conversions.

Stephen Levy, director and senior economist at the Center for Continuing Study of the California Economy in Palo Alto, said the sales counts may be bottoming out.

“But there is not going to be a turnaround until prices correct further,” he said, anticipating a further decline of 10 percent to 15 percent.

In San Diego County, the overall median price has dropped about 11 percent from the peak of $517,500 set in November 2005. Using Levy’s expectation, the current median of $460,000 would have to drop to $391,000 – last seen in October 2003 – before the market starts heading up.

Steve Cochrane, senior managing director for Moodys.com and a specialist on California housing, said data indicate that a recession brought by the housing downturn has begun in the overbuilt Central Valley.

For the San Diego area, he said the onset of a recession would depend on how many struggling households have to divert income to spiraling adjustable mortgage payments. If too many do so, a consumer pullback could trigger hard times in 2008. The first signs may show up in the holiday shopping season.

“You want to watch that very, very carefully,” Cochrane said.

There was a turnaround of sorts in other data for San Diego County released yesterday by DataQuick.

The number of defaults in the county for October totaled 2,119, up from 1,858 in September. But the 106.7 percent jump from October 2006 was the lowest year-over-year increase since June 2006.

The 831 foreclosures last month were up from 691 in September and 228 in October 2006. But the year-over-year 264.5 percent change was the lowest since September 2005, when there was a 50 percent increase. However, analysts caution against drawing any conclusions based on just one month’s data.

5 Most appreciating neighborhoods in San Diego

lvargas — Tue, 13 Nov 2007 21:00:17 +0000

*This is based on Dataquick information systems published in the San Diego Union Tribune October 17, 2007.

Freddie Mac Economic Outlook

lvargas — Tue, 13 Nov 2007 20:47:09 +0000

Rates Ease Up, Home Sales Slow and Prices DropMortgage Planning can help protect homeowners in declining markets

Freddie Mac released its weekly economic outlook for the first week of the last quarter, reporting that after three weeks of increases, mortgage rates eased slightly this week.

But rates aren’t the only thing to come down. In case you’re wondering, the effects of the credit turmoil you’ve been reading about since August has indeed started to surface in housing statistics. New home sales fell to the slowest pace in more than seven years, the median sales price had the largest 12-month decline since 1970, and August’s pending existing home sales fell to the lowest level on record, which begins in 2001. What does all of this mean to the average homeowner? Well, that depends on whether that homeowner has a good mortgage plan in place.

Borrowers with a strong plan that not only helps them to build wealth faster and easier, but also safeguards their assets and gives them access to their money, are probably less concerned about the shifting market. They’ve got their assets liquid, where they can access money should they need it in a pinch. Homeowners who do not have a good mortgage plan may be feeling wary, cautious, or perhaps even downright panicked, because with each dip in the market, their appreciation slips out the window.

The fact is, markets rise and markets fall. And while there’s no way to predict or control the market, there is a way to safeguard your equity. A qualified Mortgage Planner can help to create a plan that not only keeps your assets working for you, but also helps you to position them where you can access them if you need them.

Especially in fluctuating markets, homeowners should consult a qualified Mortgage Planner to help them create a mortgage plan to secure their equity and protect it against the market’s changes. Under the guidance of a reputable Mortgage Planner, homeowners can significantly reduce their exposure to the risks that come with a slowing market. Remember, the best action is strong prevention.