All Forum Posts by: Sergio Michel

Hi Armel,

This was a great meet up and it inspired me to get one going down in San Jose. Sorry I will be missing the one on the 16th. Best of luck and keep me posted for the next one.

Sergio

@Tatiana Conta Real estate agents have loyalties (which are great) to their lenders, and they don't usally shop for what is best for the borrower. 

Yes, Brokers do shop for you. Make sure you explain what you want and what you want to do with the property. I will assume being on here it may be for investment. What is the plan for the property, Rental, Flip, house hack what ever yor plan is let him know.

The broker will then shop and (if good) will give you options and let you decide. During the process you will fill out an application, give him/ her information regarding assests, bank info and then will pull your credit score. That score will be active for 30 days and if someone else pulls its during that time, it won't affect your score. So that being said, you can even shop brokers. all brokers have access to more or less the same lenders, some local lenders being the exception. 

Just like your agents it's all about relationship created with you and the personality and way of working that makes its a good fit. I hope this answered your question. End of the day you don't have to stay with the broker if you don't get along with them. I've had some hit or miss with real estate agent and some of them I won 't work with again, unless they bring me money. 

Hope this helped

Sergio

Yes they are worth it, I am baised though as a mortgage broker.

As a broker, I work with 50 different lenders who all compete to get your business. Brokers fend for themselves and only get paid if you move forward with the loan. Mortgage lenders are usually on salary and don't compete like the rest of us. Lenders are great people but are limited to what they can offer. Most brokers can deal with every situation you may have, from government loans like FHA, VA to Jumbo, Hard money or even loans for Manufactured Housing. Also, most brokers come in at .25% or more lower in interest cost at the closing table. Which can be thousands of $$ over the life of the loan.

You can shop lenders and brokers, give them the same situation and see who comes back with the best deal for you. Good brokers will try to find out what your strategy is over the life of the loan and then try to find multiple loans that may go into that situation. Lenders will only give you what they have on their books.

Whoever you go with do your homework and ask for referrals. Don’t take guarantees from your real estate agents. Best of luck and if you have more question reach out.

Since this is for a personal purchase, get prequalified by a mortgage broker and not a bank. Most if not all brokers will come in .25-.75% lower on comparable products. Saving you money in the long run. Should only cost you the cost of a credit check.

This is how it should go;

• Fill out an application with a broker
• Broker will pull credit check (should be your only cost for now)
• You will get a letter back telling you how much house you can buy
• Go shopping with your favorite real estate agent.
• Finish the loan process
• Get funded
• Move into the house
• Paint the walls
• Enjoy your new home

If you have any questions, feel free to reach out. I am a broker.

have you found a solution yet? I just saw you post (month later). 

Find a Mortgage broker that works specifically with construction loans. there are plenty out there, most are independent and don't work directly with major banks. 

1. * your contractor must be fully vetted by the lender and they must bid the project
2. * all permits and building approvals must be secured before lender will send final approval
3. * 45% DTI Max on most of these loans with some rare exceptions at <680 credit score
4. *3 months PITI reserves
5. * an outside inspector must oversee the project and will release funds in stages to the contractor
6. *the Max amount of the loan will be determined by the bidding process, usually with a 10% buffer

These are just some of the requirements and you will more than likely lose that great rate from Wells Fargo

Best of luck on your project

I don't see prices leveling out for at least a year. People are still migrating in and out of the bay because of remote working. Same with inventory still see it for less than a month. 

Be ready with financing when you make your offer. 

This for a investment or personal purchase?

Steven, thank you. 

I will definitely check out Renew Visalia as a starting point. We are going to concentrate on  C level properties in B and A neighborhoods bring those up to their proper level and hold for cash flow. 

would love the note on new signage. 
Thanks again for the help.

Sergio 

Chef turning to real estate as stable income for later in life. 

Looking for multifamily in the Central Valley.

What are the best neighborhoods in Visalia Ca, to be in for rentals and which ones should we stay out of?  

Thank you all ahead of time.