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Getting the Home Lending Process Started | Advice from Kevin Ho and Jonathan McNarry, Vanguard Properties, San Francisco

June 9, 2020 Advice, Buy Now, Buyer Advice, Loans, Mortgages, San Francisco Real Estate

Starting the Financing Process

While there’s more to come for sure, we wanted to give you the first steps in tacking the home mortgage application process which will most likely be the most annoying part of the entire home buying process. 

HUNT+GATHER

A lender will only speak in generalities until they see your paperwork as they need documentation, documentation and more documentaion.  So you should start by gathering these materials and you should keep the originals and PDF them as you’ll have to send these materials in at least a few times. 

If you have any questions about documents or special circumstances it’s best to CALL your lender rep versus emailing them. 

Last 2 years of W–2s &1040s for self–employed and/or tax returns (personal & business returns 

FILED (e.g., 1120, Sched. K–1) Last 2 pay stubs & employer verification/ability to do so easily; year-end pay statements, 2 years

Last 2 months bank statements (checking, savings, IRA, Money Market, etc)

Credit report fee (banks pull their own), you could provide your own to avoid multiple inquiries but they'll eventually get their own 

Photo I.D. (Driver’s License, Passport, Green Card, etc.) (VA letter/certification)

Landlord contact information 12 months proof of rent payments; i.e., canceled checks, statements, etc.

If you’re getting RSUs, vesting schedule showing award amounts and payouts

Gift Letter from relatives/investors; don’t forget they can ‘loan’ you money through forgivable loans 

All cash? Funds verification/bank statement

Changing jobs? Offer letter from new employer (potentially, 1 pay stub from pay cycle of new employer) 

For current homeowners: current mortgage statement/sales contract

Various HUD & lender application materials

Whatever underwriting requests Explanatory letter for any special cases or situations

LENDER HERE, LENDER THERE, WHICH ONE?

There’s much more than mortgage rate when it comes to getting a mortgage. While it might not seem like it, you are still ultimately a consumer who chooses where to take your business. In evaluating who you want to do your loan, here are some of the fine-print details that can set one loan apart from another: 

  • Origination points (i.e., lender fees to even do the loan) 
  • Post-close reserve requirements, if any (i.e., cash on deposit even after you close escrow) 
  • Early repayment penalties, if any  (that make refinancing or early sales less advantageous) 
  • Number of appraisals required for your purchase, even if it’s not a contingency (if each appraisal costs close to $1,000 . . .)
  • Escrow duration, as in how long it will take for them to close the purchase from when the offer is accepted to when we have keys
  • Reputation and ethics 
  • How vigorous their underwriting is and how forgiving they are 
  • Down payment requirements (10, 15, 20, 25, 30, 40 percent?) 
  • How often credit is pulled (and how long a credit report lasts) 
  • If a lender is willing to have a second mortgage with their first mortgage 
A Mortgage Calculator (Just the Mortgage)

Yes, San Francisco and the Bay Area are expensive places to buy property. Good thing that there are lots of ways to buy a home. While cash is king, all-cash offers aren’t always the offers that win. We will explore some of the potential options for financing your purchase later one, but here is the documentation that most lenders will want to review. Remember your circumstances will be different so be aware of that.  

What Questions Can We Answer? 

There’s a lot to digest here we know. Feel free to ping us if you have someting you'd like to ask us. 

Reach Out to K+J

FOLKS WHO CAN HELP

We’ve worked with a lot of folks who have helped our clients get their homes. Reach out to them to see if they’d be a match for you. 

Conventional Purchases, Houses, Condos, Multi-Unit

Tony Alencar
Citibank
NMLS # 484714
Home Lending Officer
Cell: (415) 215-1239
[email protected]

Bridge, Portfolio, Unconventional

Patrick D Skovran
Boston Private
NMLSR #453408
SVP Market Leader – Residential Lending
415.806.8980 cell
415.402.3140 office
[email protected]

Conventional Purchases

Sean Patrick Farrell
Wells Fargo
NMLSR ID 507300
Home Mortgage Consultant
500 12th St, Suite 150
Oakland, CA 94607
MAC A0202-011
Tel: 510-267-1315
[email protected]

Mortgage Broker/Portfolio

Peter Barnes
RPM Mortgage
NMLS # 239580
1385 Shattuck Avenue unit B
Berkeley, CA 94709
Office # 510.647.5326
Cell # 415.302.3398
[email protected]

Construction, Purchase and Renovation, Development, Mortgage Broker

Connie Buchanan
Stephanie Hoff
California Real Estate Loans
NMLS #241170 & DRE #01200004
APMC dba California Real Estate Loans, Inc.
600 N San Mateo Dr, San Mateo, CA 94401
Cell: 415-999-2172
Tel: 650-342-4466
Fax: 650-342-9504
[email protected]

Unconventional, Investment, Remodel

Leman J Woo
Loan Depot
NMLS # 916227
Senior Loan Consultant
700 Airport Boulevard Suite 280
Burlingame, CA 94010
(650) 993-7580 office
(415) 812-2934 cell
[email protected]

What Else? 

See more on the topic.

Learn More About Different Loan Types

Paying for it All: San Francisco Financed Purchases + Mortgages Considered By Kevin and Jonathan

Kevin Ho and Jonathan McNarry of Vanguard Properties, San Francisco, consider some of the financing products they and their clients have encountered when buying and selling property in San Francisco over the past few years including fixed mortgages, adjustable ones and exotic ones — each suited for a given property and offering situation.

Better Buying: How A Financed Offer Can Still Win in San Francisco's Competitive Real Estate Market

How to win property in San Francisco while still getting a mortgage: non-contingent financing. Top tips from Kevin Ho and Jonathan McNarry, Vanguard Properties, San Francisco

Yes, It's possible to buy for less than 20 percent down

Think a 20% down payment is the only way to buy property in San Francisco? Think Again. There are many mortgage programs out there that allow you to get into a home now while rates are low and appreciation potential remains strong in San Francisco. Advice from Kevin Ho and Jonathan McNarry, Vanguard Properties

General Information Only.

Remember that the advice above is just for information only and that your situation, circumstances are unique to you and that you should consult a financial professional before proceeding with any application for credit. Things in the financial sector can and do change with little or no notice, so keep current. Also, referrals above are to lending professionals we’ve worked with previously but that we receive no consideration, rebate or otherwise from the folks listed above. You must make the right choice for you exercising your own judgment and assessment. 

Email Us
Call Jonathan

HELLO.

Hi, we’re Kevin Ho and Jonathan McNarry of Vanguard Properties in San Francisco, California. We’re partners in life and in business. Together with our big black Labrador retriever, Raffi, we are top producing Realtors in San Francisco’s competitive and valuable residential real estate market.

We truly love what we do and are passionately committed to our clients, their needs and advancing their interests. We represent both buyers and sellers with many repeat clients but we are always expanding our client base. Our belief is that by working with you you will make better informed decisions in this most important of areas of life.

We invite you to contact us to learn more and to start your success story now.

SOME STUFF TO KNOW.

To that extent possible, the information here is copyright protected. But other information such as links, articles and the like are only reproduced here for market education purposes. Remember to research all matters discussed here to your own satisfaction.

Terms & Conditions

Real estate is always changing and evolving. It's complex and can be as fickle as it is surprising. And while the information and knowledge on this site is considered to be accurate and correct, it cannot be warranted. Market conditions in San Francisco, California, and the world can change with a tweet or a sneeze and is beyond anyone's control.

In San Francisco, things like local, state and federal tax regulations can change with big implications. Other things like rent control rules, eviction control, lending practices and standards, building and zoning regulations are just a few of the other things that can change with little or no notice. All of these things and other intangible factors can and will impact market values and performance. 

Kevin is a licensed California attorney but focuses on real estate about 99.9 percent of the time. It's important to note that while you can’t take the attorney out of him he will not be acting as your attorney here. This speaks to the larger point that you should also seek out qualified folks who work in their respective sectors if you have further questions. 

Privacy Cookies. Mmm. Cookies. 

We’ve been told that our website may be using cookies — the electronic ones — not the ones that Cookie Monster loves. These cookies, tracking pixels and related technologies are small data files that emanate from our server or platform and are stored on your device or browser.

Our site uses cookies developed by third parties for a variety of purposes with the most important ones to us being focused on supporting our abilities to support our clients — current and future — as they look for San Francisco real estate services.

Also, cookies may also be used to track how you use our site, which, of course, may give rise to seeing related advertisements on other websites you visit. To comply with the California Consumer Privacy Act, we have deployed various measures you may see on this site. If you have a question or concern, feel free to contact us at [email protected]. We want you to be aware that your personal information stays private with us with SSL standards here among other protocols we employ. 

TELL EVERYONE.

SEARCH THE SITE.

©  2011-2020, Kevin Ho, Jonathan McNarry, RTI, Inc.

All rights reserved.


Kevin K. Ho, DRE 01875957/SBN 233408

Jonathan B. McNarry, DRE 01747295

Vanguard Properties
2501 Mission Street, San Francisco, CA 94110
555 Castro Street, San Francisco, CA 94114

Read more

Yes, It’s possible to buy for less than 20 percent down

March 16, 2017 Advice, Buy Now, Buyer Advice, Home Buying, Loans, Mortgages, Trends
Twenty Percent Or Less!

The Details.

As buyers get more sophisticated by taking a bigger-picture perspective, Kevin + Jonathan offer some advice.

Q+A

Less Than 20 Percent Down? Really? 

Very possible for sure and, in some cases, even more advantageous. 

Twenty Percent Or Less!

We got an email from one set of our new buyer clients thinking that they need to wait until later in the year to buy something or to start looking because they wanted to game the system to get a better mortgage. Here’s their message to us and our response... 

We've been doing research for a few weeks now, and our conclusion is that the homes we like need a bit more down payment than we're willing to spend currently. I think we'll restart our search in a few months...

And our response:

It’s a question of various factors: the longer you wait, interest rates could be that much higher which will make your monthly payments that much higher. Moreover, every time you pay rent, you’re dulling the impact of waiting to save up more money for a down payment. Also, unless there’s a huge down payment difference, the impact on your monthly mortgage payment won’t be that much bigger. Worry less about the purchase price and focus more on the monthly payment amounts as that's the amount you actually live with.  

Remember there are such things as Census Tract loans which only require anywhere from a 3% to 10% cash down payment, but those are for certain neighborhoods that the powers that be say need to be gentrified for a lack of a better word. Other programs like the VA and FHA loans don't really work here because the prices are too expensive. Other lenders like SoFi and even Citibank have done 10% or 11% down loans too but those programs can come and go. 

We think that you should really consider using a less-than-20% down payment mortgage. After all, at least with Citi, you won’t have to pay mortgage insurance premiums (which isn’t usually tax deductible like mortgage interest is) and you will get into a house that much sooner. Beyond that, however, even if you do have the 20% down payment there may be other reasons to use a 15% down loan.   

Which are ones we can tell you when you contact us. 

You Know You Want to Learn More.

We have all kinds of insights, so you should go ahead and contact us to learn how we can help you do the most optimal thing (or least as close to that as possible).

Get in Touch

Getting the Home Lending Process Started | Advice from Kevin Ho and Jonathan McNarry, Vanguard Properties, San Francisco

The home lending process is one that takes time, effort and oftentimes is fraught with questions. Kevin Ho and Jonathan McNarry, realtors who have helped many buyers win homes and purchase them using a mortgage, give some observations about what works in San Francisco.

Paying for it All: San Francisco Financed Purchases + Mortgages Considered By Kevin and Jonathan

Kevin Ho and Jonathan McNarry of Vanguard Properties, San Francisco, consider some of the financing products they and their clients have encountered when buying and selling property in San Francisco over the past few years including fixed mortgages, adjustable ones and exotic ones — each suited for a given property and offering situation.

Email Us
Call Jonathan

HELLO.

Hi, we’re Kevin Ho and Jonathan McNarry of Vanguard Properties in San Francisco, California. We’re partners in life and in business. Together with our big black Labrador retriever, Raffi, we are top producing Realtors in San Francisco’s competitive and valuable residential real estate market.

We truly love what we do and are passionately committed to our clients, their needs and advancing their interests. We represent both buyers and sellers with many repeat clients but we are always expanding our client base. Our belief is that by working with you you will make better informed decisions in this most important of areas of life.

We invite you to contact us to learn more and to start your success story now.

SOME STUFF TO KNOW.

To that extent possible, the information here is copyright protected. But other information such as links, articles and the like are only reproduced here for market education purposes. Remember to research all matters discussed here to your own satisfaction.

Terms & Conditions

Real estate is always changing and evolving. It's complex and can be as fickle as it is surprising. And while the information and knowledge on this site is considered to be accurate and correct, it cannot be warranted. Market conditions in San Francisco, California, and the world can change with a tweet or a sneeze and is beyond anyone's control.

In San Francisco, things like local, state and federal tax regulations can change with big implications. Other things like rent control rules, eviction control, lending practices and standards, building and zoning regulations are just a few of the other things that can change with little or no notice. All of these things and other intangible factors can and will impact market values and performance. 

Kevin is a licensed California attorney but focuses on real estate about 99.9 percent of the time. It's important to note that while you can’t take the attorney out of him he will not be acting as your attorney here. This speaks to the larger point that you should also seek out qualified folks who work in their respective sectors if you have further questions. 

Privacy Cookies. Mmm. Cookies. 

We’ve been told that our website may be using cookies — the electronic ones — not the ones that Cookie Monster loves. These cookies, tracking pixels and related technologies are small data files that emanate from our server or platform and are stored on your device or browser.

Our site uses cookies developed by third parties for a variety of purposes with the most important ones to us being focused on supporting our abilities to support our clients — current and future — as they look for San Francisco real estate services.

Also, cookies may also be used to track how you use our site, which, of course, may give rise to seeing related advertisements on other websites you visit. To comply with the California Consumer Privacy Act, we have deployed various measures you may see on this site. If you have a question or concern, feel free to contact us at [email protected]. We want you to be aware that your personal information stays private with us with SSL standards here among other protocols we employ. 

TELL EVERYONE.

SEARCH THE SITE.

©  2011-2020, Kevin Ho, Jonathan McNarry, RTI, Inc.

All rights reserved.


Kevin K. Ho, DRE 01875957/SBN 233408

Jonathan B. McNarry, DRE 01747295

Vanguard Properties
2501 Mission Street, San Francisco, CA 94110
555 Castro Street, San Francisco, CA 94114

Read more

Average US 30-year mortgage rate falls to 4.21 pct – SFGate

May 9, 2014 Advice, Buy Now, Loans, Real Estate Industry, San Francisco Real Estate, Sellers advice

Average U.S. rates on fixed mortgages fell this week for a second straight week as the spring home-buying season has gotten off to a slow start.

Mortgage buyer Freddie Mac said Thursday the average rate for the 30-year loan declined to 4.21 percent from 4.29 percent last week. The average for the 15-year mortgage eased to 3.32 percent from 3.38 percent.

Mortgage rates have risen almost a full percentage point since hitting record lows about a year ago.

via Average US 30-year mortgage rate falls to 4.21 pct – SFGate.

Read more

The Official Line on the LineaSF

July 26, 2013 Advice, Castro District, Condos, exclusive, Great Opportunity, Hayes Valley, Home Buying, Hot Property, Loans, Mortgages, notable homes for sale, Noted Design, Real Estate Industry, SF News, SF Urban Planning, Something Special

LineaSF Update

Just as yours truly got a sneak peek at The Century SF this week, another new, triangular-shaped condo building, is also taking shape. Here’s the latest from Linnea SF:

Delivery of Linea homes is tentatively scheduled for late Jan/Early Feb 2014 according to our contact there.

How To Get In First

The best positioning for would-be buyers is to reach out to someone like yours truly and we can then approach and secure a pre-qualification where the lender could do a rate lock. The sales office is reportedly doing a soft open this weekend and should be open to the public shortly thereafter.

Preferred Lender List

In case you don’t remember in condos and especially new condos, at least for the first half of sales — maybe even more than 1/2 the units — folks financing a purchase will have to use one of the lenders listed. From the list below, you get the usual suspects.

Why these folks only?
You might be asking yourself how come. Here’s how I understand it: other lenders will not fund on a building where one party — here, the developer — owns the majority of the units. It all has to do with debt obligations and priority of creditors should things go really South. Those other creditors may get first dibs and whatever assets can be liquidated leaving the other smaller ones with nothing.

Jackie Yi, Mortgage Consultant, Builder Division
Wells Fargo Home Mortgage
201 Mission St, Suite 2200
San Francisco, CA 94105
Tel: 415-247-1293
Cell: 510-847-4795
Fax: 866-944-7350
Email: [email protected]
Website: www.wfhm.com/jackie-yi
NMLS# 461964

Carrie Mickelson, Mortgage Advisor
Opes Advisors, Inc.
435 Pacific Avenue, Suite 350
San Francisco, CA 94133
Cell: 415-321-0722
Office: 415-321-6263
Fax: 866-593-7832
Email: [email protected]
NMLS # 360829

Michael Treon, Home Lending Specialist
Citibank
One Sansome Street, 23rd Floor
San Francisco CA 94104
Phone: 415-505-7558
E-FAX 877-340-5777
Email: [email protected]
NMLS # 339550
Deborah Byrne, VP, Retail Sales Manager

Bank of America
1455 Market Street, 14th Floor
San Francisco, CA 94103
Mobile: 415-786-3705
E- Fax: 866-517-5149
Email: [email protected]
Website: https://mortgage.bankofamerica.com/deborahbyrne
NMLS#692071

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Trio of homes on SF’s 20th & 21st streets sell for way over asking | On The Block | an SFGate.com blog

June 25, 2012 Advice, Alamo Square, Buy Later, Buyer Advice, Cole Valley, hi end, Home Buying, Hot Property, Loans, San Francisco Real Estate Districts, Sellers advice, SF News

The market continues to roll on.  You see the result of no inventory now?

Trio of homes on SF’s 20th & 21st streets sell for way over asking | On The Block | an SFGate.com blog

Trio of homes on SF’s 20th & 21st streets sell for way over asking | From “On The Block” a SFGate.com blog.

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Buy in SF for Five Percent Down with No PMI or MIP

June 25, 2012 Buyer Advice, Loans, San Francisco Real Estate, SF News, SF Urban Planning, Something Special, South Beach - SOMA

Program Allows More To Buy in Emerging Areas

Are you hamstrung by PMI (private mortgage insurance) or MIP (mortgage insurance premium) because you lack the gold-standard 20 percent down payment?

Here’s a program available from mortgage lenders here in the City that would allow you to put down 5 percent to purchase a home in the City without having to pay PMI or MIP. And it also turns out some lenders are offering an incentive program where they waive the bank’s underwriting fees (approx. 1600).

The program is pretty neat.

Requirements: you must not own property now, but after loan starts you can. The program is part of California lending requirements that obliges lenders lend in areas that are ‘transitional’ These loans are kept local (portfolio) and are just the same as a 30-year fixed loan where you can put 5 or 10 percent down – BUT not the same in that the rate is a little higher but there are NO PMI or MIP costs to pay…. ever. Requirements are that you have a job and would otherwise qualify for a mortgage. Loan limit is $625k, which should get you plenty in the areas elligible throughout the entire city.

Let me know if you have questions about the program or to find out where you can buy!

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Putting the “Short” back in ‘Short Sale’

June 4, 2012 Advice, Home Buying, investment potential, Loans, Real Estate Industry, Sellers advice, SF News

New Rules to reduce the murkiness of the ‘short’ sale. 

Starting this month, that waiting game will have some new rules — at least in the case of loans controlled by Fannie Mae and Freddie Mac, which account for about one-third of the troubled mortgages out there.

The companies that service Fannie and Freddie home loans will have to make decisions on short sales within 30 days. A one-month extension is possible, but then the servicer has to provide weekly status updates to homeowners on where the short sale stands

Listen to the story at NPR: A Waiting Game For Homeowners Trying To Sell Short : NPR.

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Click Here For REO Opportunities

March 26, 2012 Advice, Buyer Advice, exclusive, First Time Buyers, Home Buying, Loans, Mortgages, San Francisco Real Estate, Vanguard Properties

To the extent there are any left in the San Francisco area, take a look at these FHA, Freddie and Fannie REO (real estate owned) properties – essentially, a database for foreclosed homes: https://www.homepath.com/

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A steal of a deal at the Brannan not quite

March 13, 2012 Advice, Buyer Advice, exclusive, Home Buying, Loans, New Construction, Open House, San Francisco Real Estate, San Francisco Real Estate Districts, South Beach - SOMA, Vanguard Properties

There were swarms of agents and prospective buyers flocking to the Brannan

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Get it while it’s hot! For anyone interested in the short sale at the Brannan – 239 Brannan, number 4E, at list price $649,000 – here’s the scoop:

There are two renters in the unit right now. One leaves at the end of March, the other at the end of July. There are two notes on the property – both with Bank of America. They roughly total $900,000.

The agent, Nelly Rickert, of B R realty, from Point Richmond, said there are already four offers in hand – even though the offer date is 5:00 PM, March 15, 2012.

She said that two are all-cash and the other two are conventional financing. All of the offers pick up the $32,000 back dues. Of note, none of the four prospective buyers has seen the unit. Talk about buying sight unseen!.

It’s a corner unit, facing Brannan Street on the fourth floor with two bedrooms, Two bathrooms and one parking space. The OA dues would be $854 a month and there’s no doubt it’ll go more than the $649,000 asking price, which is – of course – not-yet approved.

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New Hot Listing: 481 Dolores St. Top-floor, quiet condo, $950k, Amazing Location

February 25, 2012 Buyer Advice, exclusive, First Time Buyers, Home Buying, Loans, Mission Dolores, Open House, San Francisco Real Estate Districts, Vanguard Properties

Listed with Susan Ring, 481 Dolores boasts location, location, location

Take a look at this listing. I saw this today as I was jogging, toured it and picked up this statement.  It’s at 481 Dolores, a very central location at 18th and Dolores (yes, above Bi Rite, but the line doesn’t get as far as this unit) and quite sound-proof (double-pane windows), top-floor and nice renovations.  The kitchen is big, bright and spacious.  The the layout is pretty open and there’s great  closet space in what’d you use as the master.  Installing a second restroom could be possible but could be costly.   That money, if spent, may be put to better use.

481 Dolores 2-2012

According to the listing agent, the other neighbors have expressed an interest in adding a garage which could cost anywhere from $100-140k.  That said, if this place had a parking space, I think you could legitimately see this place list for over $1m.  Anyway, it’s open tomorrow, it’s bright, nice, good home feel in the middle of everything.  I think the price is decent although I think you could bid something a bit more aggressive and still have a shot at getting the property.

Even if this isn’t the perfect place for you, it’s still a dramatic location worth looking at.

 

 

 

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Flash! Congress Raises FHA Home Loan Limits to $729k

November 17, 2011 Advice, Buyer Advice, First Time Buyers, Home Buying, Loans, Mortgages, San Francisco Real Estate

Congress re-approved higher limits for mortgages backed by the Federal Housing Administration today, bypassing Republican objections to return the upper loan limits to pre-October limits of $729,750.  San Francisco is among the markets where the limit applies.

The higher limit was part of a larger $182-billion temporary bill funding the government until mid-December. FHA-backed loans allow borrowers with 720-credit scores and 3.5 percent down payment to purchase homes that may otherwise be cost-prohibitive. FHA loans have higher carrying costs than their conventional brethren because of required private mortgage insurance premium fees. But, with mortgage interest rates hovering at historic lows of 4.0 percent, there really is no better time to make a move into the property market.

The House voted to approve 298-121 and the Senate, clearing it for President Barack Obama’s signature, 70-30.

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