Qualifying for a mortgage and working with a lender

If you need a loan in order to purchase a property you will need to work with a lender and the common thing they will ask for is as follows:

1.  W-2 forms or business tax return forms if you’re self-employed for the last two or three years for every person signing the loan.

2.  Copies of one or more months of pay stubs from every person signing the loan.

3.  Copies of two to four months of bank or credit union statements for both checking and savings accounts.

4.  Copies of personal tax forms for the last two to three years.

5.  Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, e.g., a boat, RV, or stocks or bonds not held in a brokerage account.

6.  Copies of your most recent 401(k) or other retirement account statement.

7.  Documentation to verify additional income, such as child support, pension, etc.

8.  Account numbers of all your credit cards and the amounts of any outstanding balances.

9.  Lender, loan number, and amount owed on other installment loans—student loans, car loans, etc.

10. Addresses where you lived for the last five to seven years, with names of landlords, if appropriate.

11. If you have little or no established credit you may still get a loan but the loan will be based on non-traditional credit. To help establish non-traditional credit the lender will want letters or payment history evidence for regular payments made to utilities and other regular payments.

When working with a lender of mortgage broker have them help you do the following:

1. Determine if you have enough saved to cover your down payment and closing

    costs including taxes, attorney’s fee, and transfer fees.

2. Get your credit in order. Obtain a copy of your credit report.

3. Determine how large a mortgage you can qualify for. Explore different loans options and decide what’s best for you. Determine if you qualify for any special mortgage or down-payment assistance programs.

4. Organize all the documentation a lender will need to pre-approve you for a loan.

5. Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.

I have been trying my best to look at each area and provide a market analysis of each community in Lake County.  I typically look at single family stick built homes on one or two city lots as the reference for these analyses. We have such a diverse area that I find this to be the best way to see what the market is doing a select area.  This analysis is no substitute for a tailored analysis that matches a property you are interested in so be sure to ask me to do that for you if you are considering making an offer on a property.

Lake County offers many choices for buyers including: Lakefront property, Lakeview property, downtown property, farms, ranches, vineyards and very rural remote property.  Lakefront and lake view properties are usually in demand and typically cost more than similar size properties without those features.  Usually you can get more for your money if lakefront and lake view are not a strong property features.  We also have waterfront channel properties that provide a less expensive alternative to having on lakefront property. Most waterfront channel property will provide access to the lake.  If you want to pursue farming we have a lot of local resources so be sure to contact me for a list of resources. Develop a wish list of what you’d like your home to have. Then prioritize the features on your list.

Lake County truly is a great place to live and still a bit of a secret or mystery to those that live outside the area. We may have the cleanest air in the state, a great big playground called Clear Lake a growing wine industry.  All of Lake County California is still considered rural.  What does that mean to you?  If you’re from a large metropolitan, urban or suburban area and have never lived in a rural area then you need to be aware that there will be some life changes in store for you.  The Lake County Association of Realtors have prepared a detailed advisory that covers many issues including some of the following key issues.  Be sure to ask me for a copy of the advisory if you’re seriously planning to live here.

1. Drinking water in Lake County comes from a number of sources.  Some properties have domestic wells, some properties are provided by the county or private water companies. Water fees vary greatly from area to area so if this is something that matters to you then this is something that you should investigate.  Properties that are on well water should be checked when making a purchase. Find out what is in the water, what the water volume or capacity is and what the well history has been during drought years. If you’re planning on doing agriculture then you should check to see if there is BORON in the water.  Boron can be like a herbicide to some plant varieties.
2. Septic and Sewer : Many homes are on septic tanks while others are connected to sewer systems.  Septic systems can be vary different some are engineered systems with mechanical components that need routine maintenance and the old standard systems should also be checked from time to time.
3. Roads are not all paved and road maintenance responsibility varies depending on where you are.  Some roads are maintained by the county, some by the city and others may be maintained by private road maintenance agreements. 
4. Services and shopping.  Check the distance to shopping and local medical facilities.  We have a hospital facility located in the Northwest shore which is Sutter Lakeside Hospital and to the south shore there is Adventist Hospital. If living too far from a local hospital is a big concern then be aware that we have a very good Helicopter medivac service called Lifeflight. 
5. Lakefront Living close to the lake is a great lifestyle but there are things to be aware of. Ask me for a copy of the Lake County Advisory that was prepared by the Lake County Association of Realtors.  Also ask for the Flood Insurance Advisory prepared by the County of Lake.

6.   Zoning  Be familiar with the zoning ordinance for the property you are interested in. Know what is permitted.  You can obtain a copy of the county zoning ordinance by going to the following website: Lake County Zoning Ordinance.  County Planning Department, Lakeport Office Planning: 707-263-2221
Building: 707-263-2382.  City of Lakeport Community Development, Lakeport Office Planning:  707-263-5613 extension 25   Lakeport Zoning Ordinance.  City of Clearlake Community Development, Clearlake Office Planning: 707-994-

7.    Utilities  We do not have natural gas.  Electricity, Propane and other heating fuels including diesel, kerosene are used locally.  Prices on fuels vary so check with the local service providers.  Electricity is provided by Pacific Gas and Electric.   Some folks living off the power grid have managed to do well with solar and generators.

8.    Wild Life  There is abundant wildlife in Lake County and if you’re a animal lover then this may really be the place to live.  The Audubon Society is very active here and they co-host a Heron festival every year.  Among the critters you will often see are Wild turkeys, Ducks, Geese, Great Blue Heron, Western and Clark Grebes, hundreds of other bird species including Red-tailed Hawk, Osprey and Bald Eagles. There are Black Tail Deer, Tule Elk, Rabbits, Skunks, Otters, Possum, and Raccoons. The more reclusive species are Bobcat, Mountain Lion, Black bear, Coyote, Fox and other species. The fish in Clear Lake include Crappie, Bass, Blue Gill, Channel Cat, Carp, Hitch, and other species of fish. Yes we have snakes and lizards.  We also have many insects which provide something for the other critters to eat.