The Value of Bay Equity Service

Posted by at 10:49 am

Whether first-time home buyers or veterans of the mortgage game, Bay Equity Home Loans’ borrowers receive tremendous value working with our experienced, knowledgeable loan officers. Whether or not they’re ready to buy, Bay Equity’s teams educate potential homeowners on the steps to take. Communication and transparency begin the moment of first contact, and continue long after the closing documents are signed, says Mission Viejo, CA, Area Sales Manager Frank Blakeley. Hermie Arriza and his family closed their first home loan with Frank in February, deciding to purchase the home they’d been renting. “I want to have clients for life. If people aren’t ready to buy, I still work with them,” Frank says. “People trust I have their best interests at heart.” Bay Equity offers a wide array of mortgage loan products including FHA, Conventional, USDA, Jumbo and VA loans. Bay...
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First-time home buyers finding options

Posted by at 4:06 pm

According to a study by the National Association of Realtors, more than 70 percent of non-cash, first-time home buyers – and 54 percent of all buyers – made down payments of less than 20 percent over the last five years.

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Freeze and thaw credit report for secure home buy

Posted by at 12:35 pm

In response to many high-profile data heists over the last decade, many people now choose to lock up access to their credit history with a PIN-controlled “credit report freeze.” Once widely considered the province of the paranoid, personal digital security is now the calling card of the credit savvy. After a 2017 breach at Equifax exposed the information of 500 million people, the federal government passed legislation requiring all three credit bureaus to allow people to freeze their credit reports quickly. Credit reporting agencies must respond to online or phoned-in freeze requests within one business day (they get three days for snail mail). A freeze effectively closes access to your credit report, and since new credit can’t be issued without a credit check, hackers theoretically can’t get it for their own nefarious purposes, either. This is a great new piece...
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A New Year’s path to homeownership

Posted by at 12:44 pm

The New Year always begins with New Year’s resolutions – with a list nearly always topped by getting fit (i.e. giving up fatty food, alcohol or smoking), getting organized or taking better care of finances. Our Bay Equity Loan Officers are experts in helping customers make a similar list of resolutions. Let us help you make it a happy New Homeowner’s Year, too. Ready to get started? Credit Check:  Good credit is key to getting a mortgage but it takes discipline and planning. First, find out what your score is. Pay bills on time, and work to improve your credit establish it independently by opening up checking/savings accounts and using credit cards carefully. How much? Figure out how much you can spend with a handy mortgage calculator. Don’t forget to consider closing costs, ongoing maintenance and insurance, too. Experts recommend...
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December 10th, 2018

The X Factor

Posted by at 10:46 am

Young homeowners who scuffled through the economic strife of the Housing Crash appear now to be reaping the spoils of their resilience. According to the Pew Research Center, Generation X (born 1965-1980) homeowners have seen their home equity nearly double since 2010.. In the same timeframe, Gen X household wealth has risen by 115 percent, surpassing 2007 levels. Baby Boomers (born 1950 to 1964) and the Silent Generation (born 1935 to 1949) have yet to recover their pre-crisis wealth levels. Members of Generation X were hit disproportionately hard by the Housing Crisis. At the time, most were in their late 20s – a sort of first-time homebuyer “sweet spot.” Credit access was running like water. They were excited at their prospects and starting to build a little equity. Just as things were looking up, several concurrent financial calamities resulted in...
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Conforming loan limits set to rise again in 2019

Posted by at 10:57 am

Due to generally rising home prices, the Federal Housing Finance Agency will increase conforming loan limits in 2019 for mortgages backed by Fannie Mae and Freddie Mac. It’s the third straight year with an increase after nearly a decade without a change. Limits will rise to $484,350 from $453,100 in all but 47 counties in the U.S., an increase of 6.9%. Loan limits will also be increasing in what the FHFA calls “high-cost areas,” where median home prices are more than 115% of the baseline cost. Most of the high-cost counties in CA, CO, MA, MD, NC, NJ, NY, TN, UT, VA, WA and the District of Columbia will have a ceiling of $726,525, which is 150% of $484,350. In Alaska, Hawaii, Guam and the U.S. Virgin Islands, the baseline loan limit will be $726,525 for one-unit properties. For a county-by-county...
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Housing taking a peak?

Posted by at 11:02 am

After rapid acceleration for most of the past two years, home prices in many parts of the country are slowing as interest rates rise and inventory in some markets increases. Evidence that the market is cooling can be seen in price drops. In October, 31.3 percent of homes for sale had at least one price drop of more than 1 percent after listing, 6.3 percent higher than last October’s level of 25 percent. Ten years after the financial crisis, the notion of a housing “peak” – which would naturally be followed by a downturn – seems downright spooky. Is it time to start talking about a “housing bubble?” Most economists say no. Historically, price crashes are usually caused by over-supply. In contrast, the present moment is probably a simple “cycle top” – the kind of correction normal in any consumer...
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A bit about buying via blockchain

Posted by at 12:20 pm

Though Bitcoin still hogs most of the blockchain headlines, it’s only the tip of the iceberg in terms of applications likely to be affected by this burgeoning technology. However, Bitcoin does provide a simple way to illustrate how many different blockchain transactions might be conducted in the future. As a publicly-accessible ledger, blockchain record-keeping is far more efficient and secure than traditional central-server transactions. When a Bitcoin sales transaction occurs, imagine the users of the blockchain as members of a large audience. The seller and buyer are on a digital “stage,” in front of thousands, or millions, of “people.” In front of all those people, the seller transfers an item to the purchaser, and the purchaser hands over the Bitcoin. Thousands of witnesses can now vouch that the buyer owns the item, and the seller received payment. Since all the...
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Lending in the gig economy

Posted by at 12:20 pm

Plans are underway at Fannie Mae and Freddie Mac to make home loan qualification easier for people earning money in the “gig” economy. For those not familiar, the “gig” economy refers to the pursuit of flexible, freelance employment instead of full-time work on a traditional career path. In today’s ever-changing economy, finding stable, salaried positions that cover the bills isn’t always so easy. Other people simply find working as an independent contractor better fits their lifestyle. Workers in the gig economy often make similar income to salaried positions. Arguably, their income is more dependable than that of salaried employees, whose jobs are closely tied to the success of their employer and stability of their field. But in many cases, gig earnings don’t qualify as income under existing mortgage-industry guidelines. Typical mortgages tend to require W-2 forms and IRS information going...
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Accessorize your dwelling with an ADU unit

Posted by at 2:56 pm

As home prices continue to  rise, many folks are left wondering how they can afford a piece of the American dream. Some have broached the idea of sharing, but co-ownership – even among family – is a little too cozy for most. The tenancy approach is probably the easiest. That’s why many buyers today are looking for homes with potential to add “accessory dwelling units,” or ADUs. ADU residences can be build-ons, re-purposed space or even a separate, free-standing unit. The main draw is practicality. ADUs provide a sense of autonomy for the renter at a lower cost, and can provide the homeowners with help paying their mortgage. The majority (62 percent) of U.S. households are made up of one or two people, while most new and existing homes are designed to accommodate three or four. Legacy housing stock is...
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