I have been asked by some clients this week whether they should be pre-approved or pre-qualified for a loan.  Furthermore, they are confused about the difference between the two.  So, I have got to believe that if the few people in my sphere are questioning the meaning of these terms, it must be a nation-wide phenomenon, and there are a lot of folks out there that wonder the same. 

As a first step, it is always a good idea to be ‘pre-qualified’ with an experienced lender before you embark upon the tedious mission of house hunting.  It is frustrating to start working with a client that has no idea what they qualify for and then they start looking at those $1M homes, just to find out later that they can only afford a $500K house.  It is a waste to look at real estate without knowing the amount that can brought to the table. 

Pre-qualification is when the lender takes your basic asset, income and debt information and determines how much of a loan you may qualify for.  This is a simple calculation and the amount you qualify for is essentially based on your DTI (or Debt to income ratio).  At this stage of the game, your full credit may (or may not) be pulled.  Even if your full credit is pulled, there is no commitment from the lender that you are ‘pre-approved’ for a loan.

To be taken seriously you need to be ‘pre-approved’.  The borrower receives a pre-approval when the loan officer takes a full mortgage application, pulls credit and determines exact loan amounts and requirements.  At this point, the calculations that got you pre-qualified have been done, but more importantly the loan officer obtains a tentative approval for the loan subject to the borrower fulfilling certain conditions.  Conditions could involve verification of employment, income, assets … etc.  A pre-approval is really the utmost form of approval you can receive short of a full approval.  A major benefit to being pre-approved is that the seller will take you seriously.  Most sellers won’t even consider a buyer without a pre-approval letter. 

It is always smart to get pre-qualified when you begin your search for homes, but it is even better to get pre-approved.  It is the best tool and power that you have as a buyer to determine how much house you can afford.  Moreover, it will let your Realtor know how to help serve you better.

I used to spend half my life doing pottery; I love raku art and the technique of raku is so inspirational and the results are fantastic.  Since I ‘grew up’, started a family and have been busy with my career, I’m afraid that most of the time that I was able to dedicate to art is gone.  When I saw this advertisement for pottery classes in my neighborhood I got a little excited.  I plan on devoting some time each week to bring back that artist in me.   If you have an inner artist, you should enroll in one of the 4 or 6 week courses.  Pottery is so fun and doing the wheel is very relaxing (once you get the hang of it). 

4 & 8-Week Pottery Classes in Willow Glen

Every Monday until 12/31/2008

The pottery classes are for all levels, and they’re flexible so you can start when you want and learn what you want! The small classes (4 max) ensure individual attention and rapid progress. The courses on handbuilding and potter’s wheel include glazing and decorating techniques.

Classes meet 2-1/2 hours once a week. Choose Monday, Tuesday or Wednesday, and class sessions are 2-4:30 pm and 6:30-9 pm.

Black Leopard Clayware is full-service private studio open by appointment or current class registration.

All courses are by pre-registration. For more information, please visit http://www.bleopard.com/or call 408-448-4597.

Black Leopard Clayware
2213 Radio Ave., San Jose, CA
408-448-4597  

Who is St. Patrick?

St. Patrick, the patron saint of Ireland, is one of Christianity’s most widely known figures. But for all his celebrity, his life remains somewhat of a mystery. Many of the stories traditionally associated with St. Patrick, including the famous account of his banishing all the snakes from Ireland, are false, the products of hundreds of years of exaggerated storytelling.

It is known that St. Patrick was born in Britain to wealthy parents near the end of the fourth century. He is believed to have died on March 17, around 460 A.D.  At the age of sixteen, Patrick was taken prisoner by a group of Irish raiders who were attacking his family’s estate. They transported him to Ireland where he spent six years in captivity. During this time, he worked as a shepherd, outdoors and away from people. Lonely and afraid, he turned to his religion for solace, becoming a devout Christian. (It is also believed that Patrick first began to dream of converting the Irish people to Christianity during his captivity.)

After more than six years as a prisoner, Patrick escaped. According to his writing, a voice (which he believed to be God’s) spoke to him in a dream, telling him it was time to leave Ireland.  So Patrick walked nearly 200 miles from County Mayo, where it is believed he was held, to the Irish coast. After escaping to Britain, Patrick reported that he experienced a 2nd revelation; an angel in a dream tells him to return to Ireland as a missionary. Soon after, Patrick had started religious training, a course of study that lasted more than fifteen years. After he was ordained as a priest, he was sent to Ireland with a dual mission:  to minister to Christians already living in Ireland, and to begin to convert the Irish. Familiar with the Irish language and culture, Patrick chose to incorporate traditional ritual into his lessons of Christianity instead of attempting to eradicate native Irish beliefs. For instance, he used bonfires to celebrate Easter since the Irish were used to honoring their gods with fire. He also superimposed a sun, a powerful Irish symbol, onto the Christian cross to create what is now called a Celtic cross, so that veneration of the symbol would seem more natural to the Irish.  

It’s that time of year again — one less hour of sleep. Don’t forget to move your clocks forward 1 hour Saturday night.  While you are at it, change the batteries in your smoke detectors.

On Thursday, March 7, 2008 Federal officials took another step toward increasing the stability of the mortgage market in high-cost areas of the country like Santa Clara County by announcing new limits for the loans eligible for purchase by Fannie Mae and Freddie Mac.

The revised loan limits were among the goals of the economic stimulus package approved by President Bush last month.

The Office of Federal Housing Enterprise Oversight (OFHEO), which oversees Fannie and Freddie, said Thursday that the “conforming loan limit” will be increased from $417,000 to $729,750 in most Bay Area counties. They include Santa Clara, San Mateo, Alameda, Contra Costa, San Francisco, Marin and Napa counties. That new limit also applies in Santa Cruz, San Benito and Monterey counties.

The U.S. Department of Housing and Urban Development announced that the limit on loans backed by the Federal Housing Administration also would rise to $729,750 in those counties.

Both measures are intended to help increase home sales in high-cost parts of the country, where buyers typically use “jumbo” loans - those for more than $417,000, which are not guaranteed by Fannie Mae and Freddie Mac.

Local mortgage professionals say they still don’t know exactly when they will be able to fund loans at the new limits, and what the interest rates will be. Details are still being worked out among government agencies and lenders.

Fannie Mae and Freddie Mac buy bundles of mortgages from the lenders, then package them into securities that are sold to investors on Wall Street. Allowing Fannie and Freddie to securitize jumbo loans will bring down their rates, legislators hope.