Orange County Home Owners Will Enjoy More Mortgage Protection In 2013

Recent remarks by Consumer Financial Protection Bureau (CFPB) Director, Richard Cordray, at the recent Mortgage Servicing Field Hearing, spoke about the mortgage industry’s need for new regulations and increased responsibility to be placed on the shoulders of mortgage servicers when it comes to things like collecting payments, managing loans that are performing well and providing a higher level of service on defaulted loans that are in collection and heading to foreclosure.

A Crisis That Didn’t Happen Overnight

Mr. Cordray echoed the feelings of many Orange County mortgage brokers when he recalled his first encounter with a foreclosure crisis, back in early 2004 when he was working in a treasurer position for an Ohio County.

At the onset of that foreclosure crisis, Cordray and several other elected officials started a campaign called “Save Our Homes” which encouraged local residents to call their lenders and learn more about the details of their mortgages.

This campaign also led to an ongoing investigation which helped Cordray to see that the “foreclosure crisis” his Ohio County was experiencing, wasn’t something that happened overnight, it had been building as far back as 1996, and the spate of foreclosures his county was seeing, was the result for predatory lending, something that Orange County homeowners are all too familiar with today. 

New Regulations Will Change The Mortgage Industry

Thanks to the new legislation like the recent Dodd-Frank Act the mortgage industry is going to get a “face lift” and new rules will be put into place that will protect borrowers including:

• Periodic Statements – A mortgage servicer has to offer what’s known as a periodic statement to their clients, this statement must include information like past payments, current payments, fees, recorded activity of transactions and more.
• Adjustable Rate Mortgage – If a client chooses an Adjustable Rate Mortgage (ARM), their mortgage servicer must notify them at least 240 days in advance, before their first payment at the new rate is due.
• Periodic Payments – All mortgage servicers must credit a borrowers periodic payment or a payment that includes escrow, principal and interest.

To learn more about the latest changes to the Orange County mortgage industry or to get an affordable mortgage loan, contact the experienced team of mortgage brokers at Sun Financial Group today by calling: (949) 699-1950.

Moving To Orange County? Learn More About OC History

Are you thinking about relocating to Orange County, California? You’re making the right choice. Orange County is one of the top cities in Southern California that’s experiencing huge growth right now in every form of commerce and most of all, real estate; home values have shot back up over the last year and there’s never been a better time than right now to buy or sell a home in Orange County.

Orange County Statistics

As of the 2010 census Orange County’s population was over 3,000,000 strong and considered to be the number three cities in California with the largest population.

What makes Orange County such a popular city? Schools, abundant recreation, parks, attractions like Disneyland and excellent transportation options for people who are interested in traveling by bus, train, car or plane.

Another benefit that comes from living in Orange County is it’s close proximity to other California cities like San Diego and San Francisco plus thanks to it’s world class airport, Orange County residents can fly out and be anywhere in the United States in the same day.

Orange County History

The area known as Orange County has been a popular destination for centuries by Native American Indians and then it became a major port of call when Spanish Explorer Junipero Serra discovered it in 1769.

By the 1860’s James Irvine and a group of land developers took charge and began developing Orange County into prime land which attracted settlers from across the country and by 1889 California’s legislature voted to divide Los Angeles from Orange County so the area could be it’s own separate entity.

To learn more about Orange County and all of the great things to see, do and enjoy in the area or to get an affordable mortgage quote, contact Steven Williams at Sun Financial Group today by calling (949) 699-1950.

Do I qualify for a mortgage loan? Here's your answer.

Do you I qualify for an Orange County mortgage loan?

This is a question that many Orange County residents are asking right now as the real estate market continues to improve and make it almost irresistible to not buy an Orange County home.

If you’re one of those people who are considering buying your first home or you’re interested in refinancing, here are the things that the average lender will look for to pre-qualify you for a mortgage loan.

What Is My Credit Score?

Just about everyone who is interested in buying an Orange County home should be curious to know what their credit score is because, the better the credit score means the lower the interest rate they can expect to pay and the lower the mortgage payment they can expect to pay as well.

For those people who have low credit scores, it’s a smart move to avoid applying for a mortgage loan right now because, getting a mortgage loan with a low credit score will mean extra money that the borrower will have to pay in interest over the lifetime of the loan.

Time To Look At Those Debts

The next thing that lenders will look at when evaluating a prospective client for a mortgage loan is their debt-to-income ratio because, if the prospective borrower has more debt than income coming in, their mortgage loan will not be approved.

It’s All About The Down Payment

Besides having a great credit score and low debt to income ratio the next important thing Orange County lenders will look at is the down payment that the borrower is prepared to pay.

In this day and age most lenders are looking for borrowers who are prepared to put down 20%, so it’s wise to be ready with the cash in hand or be prepared to pay a higher mortgage payment and more for the lifetime of the loan.

To get an affordable mortgage quote, contact Steve Williams at Sun Financial Group today by calling (949) 699-1950.

Orange County Homeowner - Learn More About HUD Reverse Mortgages

What is a HUD reverse mortgage? This type of mortgage is very popular with Orange County senior citizens and also seniors across the United States because, it’s a government backed loan, which helps seniors to have the funds that they need for their retirement.

Long Time Success

Most seniors don’t know that the HUD reverse mortgage has been in existence since the mid 1960’s and it was first started by our nations Federal Housing Administration (FHA). Any senior citizen who chooses a HUD mortgage can have confidence that their mortgage is federally backed and they can enjoy their retirements.

How Do HUD Mortgages Work?

With a HUD reverse mortgage, the homeowner will use their home to raise the money that they need for their retirement and the great thing for the homeowner is that the money plus the interest doesn’t have to be paid back to the lender, until after the borrower has passed away.

What Are The Edibility Requirements?

To be eligible for a HUD reverse mortgage the borrower (homeowner) must be 62 years old, or older, living in a primary residence and have little to no mortgage debt left to pay off on their home.

How Much Money Can You Get?

The amount of money that a borrower can receive from a HUD reverse mortgage varies on things like the age of their home, it’s current value, location and also the interest rate at the time the borrower applies for this type of reverse mortgage.

Are HUD Reverse Mortgages A Good Thing?

For Orange County senior citizens and seniors across the United States, HUD reverse mortgages are a good thing and a smart move for any person over the age of 62 home wants to guarantee that they will have enough money for their retirement years.

To learn more about HUD reverse mortgages and how they can help you, contact the Sun Financial Group mortgage specialist team by calling (949) 699-1950.

Thinking about an Orange County adjustable rate mortgage?

What is an adjustable rate mortgage? If you’ve followed housing market news over the last four years you know that this type of mortgage has been largely responsible for the huge amount of foreclosures and short sales that we’ve seen in Orange County and across the United States.

A subprime mortgage is typically granted to an individual who has a poor credit history that’s often below 600, and one of the bad parts of this type of mortgage loan is that the lender typically charges an interest rate that high above the nations prime lending rate the day.

Adjustable Rate Mortgages

Orange County residents will be all too familiar with adjustable rate mortgages or (ARM) mortgages as they are also known.

Adjustable rate mortgages look great in the very beginning but since this type of mortgage loan is based on a “floating rate” the borrowers mortgage payment will go up as the interest rate changes.

The sad thing about ARM mortgage is that the borrower many times will end up paying a much higher interest rate for their mortgage loan and they will eventually be unable to make their mortgage payments because, they were not prepared for their interest rate to increase.

Are ARM Mortgages Still Available?

Although adjustable rate mortgages are still available, many lenders across the United States are more cautious of whom they lend money to compare to the years 2004-2006 when lenders had more liberal lending standards, when it seemed like almost anyone could get a mortgage loan especially if they didn’t have a job or income verification.

If you’re thinking about buying an Orange County home and are considering an adjustable rate mortgage, there are other mortgage loan options that you may qualify for like FHA and HUD mortgage loans.

To save yourself time and money when it comes to your mortgage loan, contact Sun Financial group today for a free, no-hassle mortgage consultation by calling (949) 699-1950

What To Expect For The 2013 Real Estate Market

In 2012 we saw home prices across the country finally reach the bottom and one thing that Orange County mortgage brokers want to know is will the real estate recovery continue in 2013 or will the real estate market relapse once again?

It’s All About Credit

Yes credit is still tight, and although the Federal Housing Administration still allows residents in Orange County and across the United States to buy a home, if they have a credit score of 700, or less with a down payment of at least 3.5%, banks are still placing more scrutiny on property appraisals and other things like bank statements and income, just so they can they can guarantee that the mortgage loan they approve will not go into default.

What does this mean for residents in this area who want to buy an Orange County home? It’s now harder for anyone to get a mortgage loan than it was since the mid 1990’s but it’s not going to be impossible for an Orange County resident to get a mortgage loan in 2013 and buy the home of his or her dreams.

Home Prices Expected To Rise In 2013

One plus side of the improving Orange County home market in 2013 is that as home prices rise, most lenders are expected to become more aggressive, and top Orange County mortgage brokers expect them to lower their lending standards, which will make the OC real estate even more competitive as more homeowners will be refinancing, selling their homes and buying second homes for rental properties.

Even though most mortgage brokers are hoping that lenders will relax their regulations, there is a fear that new regulations will hit the banking industry, as part of the recent Dodd-Frank Act, these new regulations would further tighten lending standards and make it harder for Orange County residents to qualify for mortgage loans.

To learn more about the latest mortgage news or to get a quote for an Orange County mortgage loan, contact Steven Williams at Sun Financial Group by calling (949) 699-1950.

Orange County Veteran? Don't Forget Your VA Loan

Are you an Orange County veteran? One of the benefits of serving in the military is that since 1944 Veterans qualify for VA Loans after serving their country.

Also originally known as the Serviceman’s Readjustment Act, VA loans offer excellent value for veterans and enable them to get into a home, without having to pay a down payment.

Recent studies have shown that VA loans have been offering veterans a better deal over the last few years especially when compared to loans from top lenders like Freddie Mac and Fannie Mae and this is one of the reasons why VA loans have also been closing at a fast pace not seen the early 1990’s.

Are All Veterans Eligible For VA Loans?

Contrary to public opinion, not all active or non-active members of the military are eligible for VA Loans; to qualify a Veteran must meet the service requirements based on the branch of the military that they serve.

Service examples: Gulf War vets are only required to have 90 days of active service to be considered eligible for a VA loan while National Guard members are required to have at least six years of service.

Excellent Financing Options

Thanks to VA loans a veteran can expect to receive complete financing for 100% of their loan and best of all, they will never be required to have mortgage insurance either.

VA loans are also an excellent option for veterans because, this type of mortgage loan doesn’t penalize a veteran based on their credit score and VA loans also offer veterans the ability to obtain financing for any repairs to their Orange County homes including making “green” repairs, which would enable their homes to use less energy.

Great For Refinancing

Another benefit of VA loans is that they also offer veterans excellent refinancing options including a streamlined refinance program that isn’t available to non-veterans.

If you’re an Orange County veteran and are interested in getting a VA loan, contact Steven Williams at Sun Financial Group today for a free VA mortgage rate quote by calling:     (949) 699-1950.