Step three in our Home Buyers series ~ Pre-Approval.

Get Pre-Approved For A Loan

Generally, it is recommended that you get pre-qualified for a loan before you start viewing homes with the serious intention of buying. The pre-approval process involves meeting with a lender and authorizing
them to examine your current financial situation and credit history. On the basis of this examination the lender will provide you with a document that details how much you can borrow to buy a home.


The benefits of pre-qualification include:

The loan process – financing your home purchase

(Another part in our series from California Association of REALTORS for Home Buyers.)

Unless you’re one of the rare few able to pay cash for your home, central to buying
is finding the right lender and mortgage product. There are many different kinds of lending institution, offering a wide range of loans and special programs. In fact, you should diligently research your options and shop around for a mortgage with as much care as you take when looking for a home.
Here are the main steps to securing the mortgage that best suits your needs...

5 Inexpensive, Easy-to-Purchase Gifts

Black Friday's almost here. And, after that there's the busy holiday season. But just because it's the holidays, doesn't mean shopping has to be hectic or expensive. The following list offers 5 easy-to-get, inexpensive gift ideas.

"ACTIONS SPEAK LOUDER THAN WORDS."

And this week, we saw a whole lot of loud action in the volatile financial markets...and also heard a lot of words, as the debate over the Fed's latest round of Quantitative Easing continued. Here's what you need to know about what was said...and what happened to home loan rates. 

If you've been wondering what Quantitative Easing (QE) actually is, it's the concept of the Fed becoming a buyer of Treasuries and Bonds to try and stimulate the economy. The Fed's goal for this latest round of Quantitative Easing (dubbed QE2) is threefold:

1. To create inflation and avoid a deflationary economy
2. To lower the unemployment rate
3. To boost Stock prices

Financial Benefits of Decluttering

It pays off to unload items you no longer need (or never really needed at all). Check out this great article by Cameron Huddleston of Kiplinger.com.

I have been in a decluttering mode lately. It was sparked by moving my mom from her three-bedroom home to a one-bedroom apartment in my house -- and having to pare down her belongings. Spending weeks going through all her stuff to figure out what she did and didn't need (then selling and donating the unnecessary items) made me want to remove all the clutter from my life, too. A few articles I recently read fueled this desire even more.

"INFLATION IS WHEN YOU PAY $15 FOR THE $10 HAIRCUT YOU USED TO GET FOR $5 WHEN YOU HAD HAIR." - Sam Ewing.

And regardless of how much hair you have these days... one thing we can watch to help a get sense of where rates are going is inflation.
Right now, the headline numbers in the US show little inflation overall... but we are already seeing significant inflation in particular items like commodities, food, and oil - which are being driven by a weak US Dollar, and increasing demand from emerging countries like China and India. In addition, the global market reacted late last week to higher-than-expected inflation in China. This is important to us because Bonds and home loan rates hate inflation, no matter where the whiff of it comes from.

Here’s why. Think of inflation as a hot air balloon and rates as the basket under that balloon. As the balloon (or inflation) rises, the basket (or rates) must rise as well.

So, if inflation moves higher in China, their government has to raise rates to fight inflation. And if rates move higher in China, global investors seeking the highest yield will move away from the relatively meager returns seen in US Bonds - and move their Bond buying money into juicier yields found abroad.

There are so many opinions by so many smart people on both sides of the inflation argument, but right now it is all about what the Bond market thinks. And the recent market action shows just how quickly sentiment in the market can change. Remember, it was just a few weeks ago that fears and whispers of deflation helped the Bond market - and home loan rates - improve.

But now with the Fed intent on avoiding deflation and in fact creating inflation through another round of Quantitative Easing (or QE2), the entire Bond market - including Mortgage Bonds - have began to react negatively. Remember, Quantitative Easing is the concept of the Fed becoming a buyer of Treasuries and Bonds, in a bid to stimulate the economy by:

Creating inflation

Lowering the unemployment rate

Raising Stock prices

While those goals may be good for the overall economy, we need to remember that all three are very unfriendly to Mortgage Bonds and home loan rates.

The good news is, despite ending the week worse than where they started, home loan rates are still near historic lows for the time being. If you or someone you know is looking to take advantage of low rates, now is the time. Please call or email me today to get started.

Step two in our Home Buyers guide

2. Contact A REALTOR®
Buying real estate is a complex matter at the best of times, given that there are so many factors to consider and no two homes or transactions are alike. However, with all the unique opportunities and potential pitfalls of the current market, it’s even more important for you to contact a REALTOR® once you’ve definitely decided to buy.

In choosing a REALTOR® to guide you through the property search, financing, negotiation and transaction processes, you should consider their local market knowledge, experience and track record.

The Top 10 Ways to Save

Janet Bodnar shares her most practical and effective strategies for spending less and keeping more cash in your pocket.

By Janet Bodnar, Kiplinger.com

I recently reached a milestone in my life on Twitter: The number of people following my tweets passed the 1,000 mark. I’m still a piker compared with champion Twitterers like Ashton Kutcher, but four figures sounds impressive to me. To thank everyone, I promised that I would tweet my top ten savings tips.

"TEN PEOPLE WHO SPEAK MAKE MORE NOISE THAN TEN THOUSAND WHO ARE SILENT." - Napoleon Bonaparte.

And there have certainly been more than ten who are speaking out - and using some pretty strong words - as experts and analysts are looking forward to some major events this week, including the midterm elections this Tuesday, the Fed Statement on Wednesday, and the Jobs Report on Friday. To say the least, that’s a very influential trifecta of events - so let’s take a look at some of the strong and colorful lingo being used - and why.

The home buying process – a brief, step-by-step overview

This is the first in a series of segments highlighting Realtor.com's new Home Buyers Guide. Be sure to check back as much as you'd like for future additions to the home buying process!

We'll start here with The home buying process – a brief, step-by-step overview