Pre-Qual vs Pre-Approval

People don’t understand how knowing the difference between pre-qualification and pre-approval can make a huge difference in an offer being accepted, and how the right choice can make them a stronger buyer. It’s extremely important! Luckily, my friend Jay Vorhees at JVM Lending broke it down for us:

Image: meyerpottsproperties.com

Panicked Borrower on Verge of Losing Deposit

We had a borrower in contract come to us a few weeks ago in panic mode. The reason? He was on the verge of losing his earnest money deposit b/c his loan had just blown up at America’s largest mortgage lender.

The loan officer had only done a “pre-qualification” and had missed a major issue with the borrower’s commision income. We were able to salvage the deal and still close on time, but the risk to the borrower was enormous.

Pre-Qualification vs. Pre-Approval

Most lenders only “pre-qualify” borrowers. Pre-qualifications consist only of a perfunctory glance at a credit report and a few income documents. Most lenders do not do full pre-approvals b/c they require so much more work.

Why Pre-Approvals?

We do full pre-approvals b/c they are absolutely necessary. Full pre-approvals (1) allow our borrowers to make non-contingent offers; (2) ensure there are no major issues missed; and (3) allow us to close in 14 days b/c we do all the work on the front end.

In other words, full pre-approvals make our clients’ offers far more competitive, and they eliminate stress for everyone – buyers, sellers, Realtors, escrow and us :).

prequal-vs-preapprove-02
Image: Masonknowsmortgages.com

Full pre-approvals can take several hours, requiring us to review income, asset, employment and credit documents with a fine-toothed comb. But experience has shown that they are well worth the effort. 

Issues that can be missed with only a “pre-qualification” include the following:

  • missed 2106 expenses; 
  • unexplained and unusable deposits; 
  • side businesses with losses; 
  • K1 and partnership losses;
  • spousal and child support obligations;
  • lack of employment seasoning;
  • lack of bonus seasoning; 
  • lack of commission seasoning; 
  • debts not on credit reports

A major source of our business includes transactions that blow up at other lenders b/c the loan officers only did pre-qualifications. Realtors come to us b/c they know we can make the deals work and also b/c we can usually still close within the remaining contract time.

Weimaraners & Real Estate

As I’ve expressed here before, my best moments as a realtor come when a client buys their dream home with my help. That happened recently, and the backstory is almost as cool as the moment they shared getting the keys!

I met Wilbur and Aimee through NorCal Weim Rescue, where I got my dog Bodie and occasionally foster dogs for them. At the time, Wilbur was renting and had two Weimaraner puppies (Roxie & Daisy), but the landlord just landscaped the backyard and did not want two big dogs in addition to their small one.

So he surrendered them to NorCal Weim Rescue, who did not want to split the dogs up and I fostered them – see pics below. Roxie was very dominant over her sister and even when they were at a trial run at another home she would growl at the husband, so that didn’t work.  Then Wilbur’s landlord said he could have one dog back, he got Roxie the light Weimaraner pictured here and Daisy found her fur-ever home in Bishop. And they later got Jax, the Blue Weim

They knew I was an agent and I said if you ever decide to buy, let me know.  A few years later, their landlord wanted to sell his house and called me up! They realized they couldn’t buy the house they were renting, so off we went looking in Livermore.  After being in contract and finding the HOA only allowed two dogs, we were back in the hunt. Three offers later, lots of conversations with the lender, and perseverance by all is when Aimee and Wilbur landed a wonderful home and a great place for their fur babies!

Now, Wilbur, Aimee and Roxie (dog) (as well as Jax (dog #2) and Duke (dog #3 smallest with the biggest name) can happily call their Aspenwood house in Livermore home for many years to come!

The universe provides the right house

Don’t get me wrong – the right house for you won’t just magically appear out of thin air! People like me do a lot of work to find you your dream home and get it all properly situated. But there is a lesson in real estate that I believe is valuable: The universe always provides the right house in the end.

You can always look back with regrets, but there are reasons for everything. Even reasons for why getting your dream house took so long or why you didn’t get the first house you loved. The right one always comes along! Check out this graphic from the California Association of Realtors.


As you can see above, most homeowners didn’t find their home for at least 3 months. Whether it was price, location, aesthetics and amenities, or simply just being outbid, it is very common to not get the first house you offer.

That’s why you have me! I’ll be the one to help you attain your dream home by walking you through the process, preaching how important patience is, and making sure the whole, stressful process runs smoothly. In the end, the universe always brings you the right home!

Road Trips: Sutro Baths

Our road trip blogs have ranged far and wide over the months, but one easy, must-do road trip from the East Bay is a simple jaunt across the Bay Bridge to San Francisco! You can’t beat the beauty of San Francisco, which is truly one of the most spectacular places in the world, and right in our backyard.

Of all the cool things to do in the city, one of my favorite experiences is hiking around Sutro Baths at the furthest West point. If you drive in over the Bay Bridge (or, if you want to save some gas, take BART and then a city bus), follow directions to Ocean Beach and take in the sights and smells of the ocean (warning: it’s always windy!).

From there, you can walk up the hill past the famous Cliff House restaurant (their bar is actually affordable if you need a quick drink!). On the other side of that are the Sutro Baths. Back in the day, this area was a public bath house right on the ocean that look more like Roman ruins now than anything else.

Extend your day after exploring the Baths, by following one of the mild hiking trails next to the upper parking lot, which will take you through tall trees to the Golden Gate Bridge side of the peninsula. You’ll get a clear view (most days) of the bridge, the ocean and the Marin headlands.

And to think, all these picturesque views are contained in a tiny corner of San Francisco! If you’ve never taken the kiddos to see this part of San Francisco, I’d highly recommend it!

11 reasons your home isn’t selling

RIS Media shared a story from Charles Muotoh giving 11 reasons your home may not be selling. I found the piece very interesting and have summarized the points below, and added some commentary. Let me know what you think!

You overvalued your property: Overpriced homes will not sell. Simple as that. If you have an experienced real estate agent, they can give you an accurate value of your home.

Your listing is poor: You can’t poorly write the description of your home without any images. It will be skipped. Work with your realtor to make the listing attractive and interesting.

You’re always present at showings: Do not get in your agent’s way at showings. Let them do what they are experts at. Buyers don’t want you hovering over them the whole time anyway.

You’re too attached: If you are too stubborn to refuse to negotiate your price down, then there’s a good chance that you’ve become too attached to your home. That will make selling difficult.

You haven’t had your home professionally cleaned: What kind of buyer in their right mind will want a dirty house? Ask your realtor to recommend a professional cleaner for the carpets and windows before showing your home.

You haven’t staged your home: Never show an empty house, because it’ll make it hard for buyers to picture living in it. Always have it staged. Your realtor should have a stager on speed dial!

You kept up all of your personal décor: If you keep your home personal (with pictures, etc.), buyers will feel uncomfortable in your house. Take those down before showing the home!

Your home improvements are too personalized: If you tailored your kids’ rooms to their specific obsessions, that’s great…until you need to sell the home. Those little touches could scare off buyers.

Your home is too cluttered: Clutter can still be an issue in a clean home. Don’t keep too much furniture in the rooms – it will make your house feel smaller than it is!

Your home is in need of too many repairs: If a buyer knows he or she has to do a bunch of repairs, they are less likely to want to make a move. That’s a lot of extra effort and cost on their parts, even if the repairs are minor.

You choose the wrong real estate agent: You may have noticed a theme throughout many of these previous points. Choosing the right real estate agent is absolutely essential to the selling process. We can make all the difference in selling your home for the right price, in a reasonable amount of time!

Client Appreciation Party

After sending out invites, speaking with past clients and those who have referred me, coordinating with the venue, and designing the event, I am happy to share some pictures of a fun day with my wonderful clients and friends. I also want to give a big shout-out to Prima Ristorante, where we enjoyed appetizers, wine tasting of old and new-world wines, great company and friendship all in the cozy space of their room with a fireplace.

Frank, our sommelier, did a wonderful job of introducing us to the nuances of French vs. California wines, and we finished with a blind tasting of a white and red. We had to guess if it was a French or California wine based on the taste. We also had a seasoned waiter who served us some amazing appetizers of  calamari, shrimp, antipasto platters, rice balls and deep friend olives – yum!

We also gave away some door prizes: two $50 gift cards to Whole Foods donated by Lukasz Wilk of Wolf Construction, a certificate for house cleaning donated by my stager Heather Farry, and two bottles of wine from Prima as part of the day’s event.

Many may think the job of a realtor only involves buying and selling homes with my clients. But being a guide, friend and advocate for my clients is actually the biggest part of the job and celebrating them is my favorite part! I look forward to seeing new and old faces at future events!

Open House Saturday 1-4 pm, Kirker Pass Rd. in Concord

Offers Due Monday 2/5 at noon!

Things NOT to do when your house goes on the market

You’ve probably seen endless lists about how to sell your home. Everything from choosing the realtor, to the staging, to the deliberation is under the microscope. But how often do you get told how NOT to do things? RIS Media has put together a good four-step process for how to not get in your own way when selling a home.

First, don’t over-improve the house, the article says. This is good advice. While it’s important to clean up any holes and cracks in the wall, and make sure the lighting is fresh, etc., doing too much can be damaging to your case. But if you go out and make your dream changes to the house right before you sell it, you better hope your potential buyers see it as an awesome improvement, too, and not a large project to fix.

Next, don’t over-decorate. Simple, neutral colors and decorations will be just fine. Similarly to the first point, if you decorate your home with a bunch of lace, lavender and lemon scent because they are things you like, you’ve done too much. What if a buyer walks in and is immediately overwhelmed by it all? Keep it simple. Remember, the buyers are the ones who get to decorate when they move in. This is why I pay for a staging consult; because it tells you what to remove, and then I highly recommend doing some staging as it makes a huge difference in how your home is photographed. The online view of those photos will be the first impression a prospective buyer gets, and will help them decide if they want to see your home in person.

Third, and probably most important: do not BE THERE when the buyers arrive. If your realtor is going to show the house, try to get everyone (pets included) out for a couple hours. Go to a movie. Have lunch at the park. Find a way to get out of the potential buyers’ ways, so they aren’t attacked by a bunch of people upon walking in. Remember, they want to see themselves in the house. Not you!

Lastly, don’t take things too personally. You’ve put a lot of blood, sweat, tears, money and memories into your home. When a buyer lowballs you or requests repairs, don’t be upset. They are trying to afford their newest home, too. And they might tell you the reason they have to offer low is because of something they think needs updating that you disagree with. Bite your tongue, and keep negotiating. Remember, it’s all a business!

Let’s talk about Millennials and Real Estate

My sons are Millennials. My Walnut Creek Lifestyle freelance writer is a Millennial. More and more of my clients and colleagues are Millennials, as that generation continues to age into home-buyers.

So, realtors like myself are starting to notice more trends with the market geared toward that age group. It’s a different real estate market for Millennials than it was for their parents – nowadays, they are graduating with huge student loan debts, having trouble finding lucrative work out of college, and then struggling to pay sky-high rents and mortgages once they do get jobs.

That said, Millennials are driving the real estate market right now, which has made the following observations more obvious.

From San Francisco realtor John Solaegui:

  • There is a low inventory of single-family homes in San Francisco
  • Millennial buyers don’t care about parking spaces (though this might be more prevalent in San Francisco – it’s contradicted by the graphic above!) with the rise of ridesharing apps – they’d prefer having decks or gardens for outdoor entertaining
  • Areas like Noe Valley, Glen Park, Bernal Heights and The Sunset in San Francisco are extremely popular with Millennial buyers right now

From the California Association of Realtors’ REALTOR Magazine:

  • Millennials are cashing in on equity at a historic rate, thanks to rising home prices
  • One-third of Millennials say they are considering applying for a HELOC (home equity line of credit) in the next 18 months – much more than Gen-X or Baby Boomers
  • HELOC’s are popular with Millennials because they can consolidate debt and afford home remodels with them

I think this is an interesting trend in our market. Home prices are high, but so are the debts and loans owed by Millennials, so we’re seeing more and more interest in new ways around that issue. And even more interestingly, Millennials are changing the way we market homes – who cares about parking when you don’t have a car, right?

Emerald Elite Award

Our annual BHG convention recently occurred in Las Vegas. It is at this time of year they announce award winners based on production. I am happy to share that I was the recipient of the Emerald Elite Award, for which any agent nationwise, within the Better Homes and Gardens Company, meets the following criteria:

  • $325,000 GCI (Gross Commission Income, before taxes and expenses) OR 59+ total transactions

Thank you to all my great clients, referrals from friends and agents, team, lenders, inspectors, stagers and title reps! Additionally, I was awarded the 2017 Best of Walnut Creek Award in the Real Estate Agents category by the Walnut Creek Award Program. You can see a press release about that here, if you’re so inclined:

http://walnutcreek.walnutcreek.onlineawarded.org/PressReleaseub.aspx?cc=DJGB-TBHJ-QZRR