OC Realtist Magazine May 2016

May 2016 Vol. 02 | Issue 3

Why should you buy home ownership insurance?

Celebrating earth day Featuring GENERAL ATTORNEY

Kamala Harris

We proudly welcome ZipRealty™ and its innovative technology platform to our family of real estate brands!

facebook.com/realogy

CONTENTS: Mission and Vision of the Orange County Realtist Magazine................(page 5)

THE POWER IS NOW INC. Vol. 02 | Issue 3

Eric Lawrence Frazier, MBA President and CEO Office: (800) 401-8994 Ext. 703 Direct: (714) 361-2105 Eric.Frazier@ThePowerIsNow.com www.thepowerisnow.com www.blogtalkradio.com/thepowerisnow

EDITORIAL TEAM Eric Lawrence Frazier MBA Editor in Chief (800) 401-8994 Ext. 703 Kristina Mari Managing Editor (800) 401-8994 ext. 723 kristina.mari@thepowerisnow.com

Goldy Ponce Arratia Graphic Artist and Design Manager (800) 401-8994 ext. 711 goldy.ponce@thepowerisnow.com Andrej Jovanovic Graphic Designer (800) 401-8994 ext. 713 andrej.jovanovic@thepowerisnow.com

CONTRIBUTORS Orange County Realtist Research Team

LEGAL Why Should You Buy Home Ownership Insurance? ...........................(page 12)

REAL ESTATE Southern California: A Rise in Rent.......................................................(page 14)

GREEN Celebrating Earth Day.............................................................................(page 18)

OUR COVER Attorney General Kamala D. Harris and Her Support for SB 1150..................................................................(page 22)

YOU How to Afford your Dream Home...........................................................(page 28)

MORTGAGE How to Avoid the Down Payment............................................................(page 30)

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PREVIOUS ISSUES

The Orange County Realtist Magazine is an online and eZine publication of the Orange County Realtist a Chapter of The National Association of Real Estate Brokers® (NAREB).

The magazine is published and distributed by the publishing division of The Power Is Now, Inc., and has ten sections focused on the real estate market, economics in Orange County and the Realtist members who serve the community. The mission of the OC Realtist Magazine is to educate consumers and real estate professionals about the opportunities to buy or sell real estate in Orange County and to spotlight professional real estate agents who are Realtists.

profit organizations, and community organization that support the welfare of the citizens of Orange County and are affiliates of the OC Realtist.

The Digital Online subscription launched April and continually provides the best of the Orange County Realtist Magazine in an all-digital format.

With the Orange County Realtist Magazine, readers can have access to archived issues as well as current content online. Videos, online radio, webinars and other events provided by the OC Realtist will be available to empower its readers with information to achieve the American Dream.

The OC REALTIST MAGAZINE - The The magazine is free and is distributed by email American Dream and online to members of our local chapter and NAREB chapters nationwide. Over 30 The Orange County Realtist Magazine features thousands real estate professionals in Orange articles about real estate in Orange County and County, our state, federal and local city political informational interviews with local and national representatives in each of the 34 cities in Orange community leaders, real estate agents, banking County, non-profit housing organizations, church and investment professionals, and community. leaders in Orange County, and many affiliates of The Orange County Realtist Magazine also our chapter -- OC NAACP, OC Black Chamber, provides consumer focus content about buying OC 100 BMOC-- and others will receive the and/or investing in real estate, financing real estate magazine. and maintaining and protecting real estate as an asset for years to come. The magazine’s focus is In addition, our own email list of consumers on all aspects of buying and/or selling real estate is growing daily through our community from a consumer’s perspective because it is still outreach. The list will continue to grow due to the American Dream. the importance of homeownership and the strong support we have in the community to help others achieve it. We want the magazine to be of great value to our members, an excellent resource for our community, and a tremendous value to our advertisers as an affordable marketing strategy to a target consumers interested in real estate as a home or investment. The Orange County Realtist magazine will also provide free advertising to non-

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Mission The mission of the Orange County Realtist is to provide support and education for its members to grow and expand their businesses while assisting the community to achieve the American dream of homeownership.

Vision The vision of the OC Realtist is to become the largest Chapter of NAREB in the United States, comprised of successful Realtists® whose businesses are thriving from the support they receive through the chapter and the networking opportunities that exist by their affiliation with National Association of Real Estate Brokers.

Departments 1. OC Real Estate Market 2. OC Real Estate Resources 3. OC Real Estate Investing 4. OC Realtist Spotlight 5. OC Real Estate Financing 6. National Association of Real Estate Brokers News 7. California Association of Real Estate Brokers News 8. OC Realtist President’s message 9. OC Real Estate Business and Economic 10. OC Real estate laws and legislation

Cover and Feature story profiles: The OC Realtist Cover will never be sold as it will be our way of recognizing Realtists in Orange County and all over the United States who exemplify the Realtist spirit. The online magazine and eZine will have 10 sections for various articles under the OC Realtist theme: OC Real Estate Market, OC Real Estate Resources, OC Real Estate Investing, OC Realtist Spotlight, OC Real Estate Financing, National Association of Real Estate Brokers News, California Association of Real Estate Brokers News, OC Realtist President’s Message, OC Business and Economics, OC Real estate Laws and Legislation. The writers for each department will be industry professionals who are practitioners in their field of expertise. They are industry professionals who can provide advice, and information to make decisions that will enable consumers achieve the American Dream.

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CEO & Publisher Eric Lawrence Frazier, MBA 3739 6th Street, Riverside, CA 921506 Ph: (800) 401-8994 ext. 703 EDITORIAL Editor in Chief: Eric Lawrence Frazier MBA Managing Editor: Alexandra Attinger ONLINE Web Designer: Nicholas Clarkson DESIGN Art Director & Design Manager: Goldy Ponce ADMINISTRATIVE Administrative Assistant: Rachel Bacol

SALES National Sales Manager: Christina Kimble National Relationship Manager: Success Money HEADQUATERS The Power Is Now Inc. 3739 6th Street Riverside, CA 92506 Ph: (800) 401-8994 Fax: (800) 401-8994 Email: info@thepowerisnow.com www.thepowerisnow.com www.thepowerisnow.com/onlinemagazine www.thepowerisnow.com/ezine PUBLICATION AND SERVICES The Orange County Realtist Magazine The PIN Magazine The Power Is Now Radio The Power Is Now Publications The Power Is Now Radio Guide The Power Is Now VIP Agent Program The Power IS Now Power Consulting/Coaching The Power Is Now Association Management The Power Is Now Event Management

STATEMENT OF COPYRIGHT: The OC Realtist Magazine TM is owned and published electronically by The Power Is Now Inc. The Power Is Now Inc. has entered into joint venture with the OC Realtist for the design, publication and distribution of the Magazine.

Copyright 2013-2016 The Power Is Now Inc. All rights reserved. The name Orange County Realtist is a trademark of the Orange County Realtist Inc. A chapter of the National Association of Real Estate Brokers.

“The PIN Magazine and distinctive logo are trademarks owned by The Power Is Now Inc. “ThePINMagazine.com” is a trademark of The Power Is Now Inc. “Magazine.thepowerisnow.com “ is a trademark of The Power Is Now Inc. “Thepowerisnow.com” is a trademark of The Power Is Now Inc. “The Power Is Now Event Management” is a trademark of The Power Is Now Inc. “The Power Is Now Radio” is a trademark of The Power Is Now Inc. “The Power Is Now Publications” is a trademark of The Power Is Now Inc. “The Power Is Now Radio Guide” is a trademark of The Power Is Now Inc. “The Power Is Now VIP Agent Program” is a trademark of The Power Is Now Inc. “The Power IS Now Power Consulting/Coaching” is a trademark of The Power Is Now Inc. “The Power Is Now Association Management” is a trademark of The Power Is Now Inc. No part of this electronic magazine or website may be reproduced without the written consent of The Power Is Now Inc. Requests for permission should be directed to: info@thepowerisnow.com

editor’s note Dear Readers,

of Earth Day.

I want to thank you for returning and reading our third issue of 2016! The year has been flashing before my eyes and we are already almost halfway done with 2016, can you believe it? We have had a lot of exciting things that happened in April, such as Earth Day’s 46th birthday. 46 years of people coming together to help make a difference for our home. In this Month’s issue, we go into the beautiful history and accomplishments us humans, have made in the past 46 years, I believe you all really enjoy reading it. Knowledge is the key when solving problems. We can all make a difference if we just read up on the things we do not understand and spread the word to others who may not understand the importance

On the other side of reality, the presidential race still continues on, Trump is continuing to steal the hearts of many Americans. Why? Because he is a celebrity, very rich and successful in business and has all the great stuff that young people see on MTV. He is the real deal with all of his flaws and he knows how to control the media. He is also running at the time when American’s want something different other than what they have voted for in the past; career politicians who have never owned a business, met a payroll or grew a company to a multibillion dollar status employing thousands of employees. A President like that actually has skin in the game. I am not endorsing Trump but simply explaining why he has gotten this far. I understand Trump in spite of his racist rhetoric and high school level speeches; which by the way I do understand what he is saying which is more than I can say about other more eloquent messaging coming from the other campaigns. Here is my prediction. If Trump becomes the Republican nominee for President, he is going the win the White House. At this point none of our choices are great and I do not like Hillary for many reason but I may vote for her anyway. I am not sure what I am going to do. None of them get me excited but all of them have me very concerned. All I can hope for is that whoever becomes president does his or her best to truly make America the best it can be.

In this month’s issue we will be covering several topics such as the upcoming rise in California’s rent, homeowner’s insurance and how to build credit. Building good credit is incredibly important when it comes to homeowners, it is something that many Americans struggle with. Our sponsor, Wells Fargo, can make it easy for you. Feel free to visit their website www.wellsfargo.com to learn more about building credit and how you can get started. Best to start as young as possible so when you are ready to buy a house, car, or whatever other expense, you will have no bumps in the road. We really hope you enjoy May’s issue and I would like to thank you again for coming back to OCRealist as your real estate source.

Eric Lawrence Frazier M.B.A Editor-in-Chief may 2016 issue

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The Buyer’s Club Presents: Downpayment assistance programs Presented by: Eric Lawrence Frazier MBA CA BRE # 01143484 | NMLS # 461807 Website: www.thepowerisnow.com E-mail: eric.frazier@thepowerisnow.com O: 800-261-1634 x 703 F: 800-261-1634 Direct: 714-475-8629

NO REPAYMENT REQUIRED! Grant/Free Money/Gift - to buy a home Act Now - Your Power Is Now! Join Eric L Frazier MBA on every Tuesday of the month from 7:00 PM to 7:45 PM at http://thepowerisnow.com/buyer-sellers/ The Power Is Now Inc., is a Mortgage Brokerage Licensed by the State of California CALBRE License #1980407 and is not affiliated with any state or federal agency. Go to www2.dre.ca.gov for verification. The Power Is Now Inc., is also licensed by the NMLS License #1435243. Go to www.nmlsconsumeraccess.org for verification. The Power Is Now Inc., is an equal housing lender. Our corporate office is located at: 379 6th Street Riverside, CA 92501. Telephone and Fax: 800-401-8994. Eric Lawrence Frazier, MBA is a California Licensed Loan Originator NMLS# 461807. This is not a commitment to lend or extend credit. Restrictions may apply. Information and/or data is subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states.

LEGAL

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REAL ESTATE

SOUTHERN CALIFORNIA A RISE IN RENT Every year that passes we see a dip and we see a rise in the real estate market. However, in Southern California we’re seeing a pattern… a pattern of increased prices. With crowded cities like Los Angeles and San Francisco, apartments are nothing new and it seems that lately, that is the only option when it comes to living in or near the city. Los Angeles in particular is a city that continues to grow within each day. Today, there are over 18 million people living in LA alone. That is almost double the amount it was in 2010! With the population growing rapidly, construction of new apartments and condos were in high demand. Unfortunately, we can all see how that can be difficult given the fact that the population spiked in just a few years.

CONSTRUCTION VS. THE POPULATION There is no possible way that construction can keep up with California’s growing population, which is the main reason why the cost of rent has been increasing. The average rent today in LA is said to be over $1,000 a month, not including

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utilities. In 2018, if the growth continues, it is said to be over $1,300! Although it may not seem like a huge increase, that is another $300 out of your pocket going into your 900 square feet apartment. The other surrounding cities, like San Francisco, will also see a large growth in rental costs. By 2018, rent in San Francisco will look to be over $1,400, a 10% increase. In 2015 there were reportedly more than 38,000 construction permits for apartments granted, which should be able to house more than 500,000 families.

With big plans to build over 38,000 apartment complexes, it would help greatly to house more incoming people, but still would not be enough.

“For renters, new construction has simply kept a bad situation from getting drastically worse.” said Raphael Bostic, from Lusk Center.

A BOTTLENECK IN THE SYSTEM Historically, California housing developers have not kept up with growth demand placed upon them by the population increase. Why? There are many reasons and factors that affect one’s

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REAL ESTATE

ability to build new housing units in California.

One such factor in the cost of land. Everyone wants to live on the West Coast. Unfortunately there is only so much coastline to go around.

Lots of demand on a short supply naturally raises prices in any market. In California’s case, it shoots it up by more than half the U.S. average per acre.

of legislation (coincidentally 1970 was when housing growth in California began its long, slow descent) ensures that all possible environmental conflicts are considered before approving any public or private project. The process is timeconsuming. The CEQA looks at a multitude of variables before writing up a report for review. The reviewing process open doors for opposing parties to raise concerns regarding just Most developers can offset high land cost by about anything that can be deemed damaging. increasing housing density (more units per acre). No development can begin until all issues are Sometime this can be done. Such as the 38,000 addressed. times it was done in 2015. However, there are many obstacles that stand in the developer’s Also the Government of California doesn’t way. seem to be interested in building for a growing population. For one thing, a new development One such obstacle is the community. People project, such as a neighborhood of apartment tend to resist change in any manifestation. complexes, require infrastructure to sustain.

They get accustomed to the neighborhood Police, fire services, and roadways are just a few and are not interested in seeing it change. examples of added cost to local governments.

Another factor may be the effect new homes These services tend cause a spike in taxes. No have on the value of homes owned by current one wants to pay more taxes. Speaking of taxes, residents. Whatever their reasons, communities, there is a tax benefit that local government bodies specifically the coastal areas of California, receive from the commercial/retail sector. Sales resist new development by implementing land and hotel tax, for instance, represent a higher use authority statutes which can bog down the net income than that of residential housing. system of permit review.

Therefore, local governments often urge for the development of their limited land by commercial The California Environmental Quality Act also contractors. To them, it makes more fiscal sense. places a burden on developers. This 1970 piece

FINANCE

A SOLUTION

HERE AND NOW

As it stands, the major factor contributing to the high cost of housing on the west coast is housing scarcity. According to a 2015 report written by the Legislative Analyst’s Office – California Legislature’s Nonpartisan Fiscal and Policy Advisor – the amount of housing that need to be built is on the far side enormous. They conclude that somewhere in the neighborhood of 240,000 units need to be constructed annually, with a specific focus in the coastal communities, to curb the rising cost of housing in California.

That is a long way away from the 38,000 units they received permits for last year. They also suggested that many of the policies that subdue the pace of development be reexamined. They argue that the problem with housing is of much greater size than what standing policy can successfully accommodate.

Some things cannot be control through policy or market manipulation. People want to live in California because, well, it’s a great place to live. The weather is mild. The view on the ocean is spectacular. The diversity of culture is stimulating. It’s attractive to many people.

There are just not enough house to meet the demand, and it doesn’t look like that’s going to change any time soon. Until it does, we can all bet that the prices will keeping climbing while Californians continue to shovel out more than 30% of their annual income on housing alone.

It’s not called the Golden State for nothing.

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BUSINESS

Frazier Group Realty, Inc. As you venture into the World of Real Estate, we can help you put the pieces together and Naviagate you into Home Ownership

Ruby L. Frazier President License #01751773

Briana M. Frazier Broker License # 01751473

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Frazier Group Realty is the right place. Our Navigators are available to give you personalized service and answer any questions you may have. You can call, email or visit us and we will be there ready to help you every step of the way. Wether you are a first time home buyer or an experienced real estate investor, here at Frazier Group Realty you gain useful information about how to choose the “right” property, and everything involved in making an informed decision in today’s real estate market.

Making Clients for Life

3739 6th Street, Riverside, CA 92501 Office: (951) 686-5261 Fax: (951) 686-5264 www.fraziergrouprealty.com

GREEN

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THE POWER IS NOW MORTGAGE SERVICES

A Division of The Power Is Now Inc.

ERIC LAWRENCE FRAZIER, MBA MORTGAGE SERVICES

APPLY ONLINE AT WWW.APPLYTOBUYNOW.COM OR CALL 800-261-1634 EXT. 703

Why Work with Eric Lawrence Frazier MBA?

Programs:

• 34 years of experience in helping buyers finance their home • BS in Business Administration and Management and a MBA in Finance • Real Estate Broker CALBRE # 1980407 • Experienced Business Consultant and Life Coach • Eric Frazier will counsel and guide you through the process. He will help you to make difficult decisions and support you until the loan is closed.

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• Obtain Preapproval online in 48 hours at www.applytobuynow.com • Join the Power Is Now Buyers Club for free at www.neverrentagain.com ERIC LAWRENCE FRAZIER MBA CA BRE: 01143484 | NMLS 461807 The Power Is Now Inc. CA BRE: 1980407 | NMLS 1435243 Website: www.thepowerisnow.com

Grant Funds for Down Payment Assistance 100% FHA Financing Programs Conventional Loans Government Loans Jumbo Loans None Prime Loans Commerical Loans Private Equity Loans Land Loans Note Loans Buy a Home 12 Months After Bankruptcy, Foreclosure and or Short-sale.

Email: eric.frazier@thepowerisnow.com Video Chat: https://zoom.us/j/5443077305 Mobile: 714-361-2105 Office: 800-401-8994 ext. 703 Fax: 800-401-8994

The Power Is Now Inc., is a Mortgage Brokerage Licensed by the State of California CALBRE License #1980407 and is not affiliated with any state or federal agency. Go to www2.dre.ca.gov for verification. The Power Is Now Inc., is also licensed by the NMLS License #1435243. Go to www.nmlsconsumeraccess.org for verification. The Power Is Now Inc., is an equal housing lender. Our corporate office is located at: 379 6th Street Riverside, CA 92501. Telephone and Fax: 800-401-8994. Eric Lawrence Frazier, MBA is a California Licensed Loan Originator NMLS# 461807. This is not a commitment to lend or extend credit. Restrictions may apply. Information and/or data is subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states.

Our Cover

OUR COVER

Attorney General Kamala D. Harris

and Her Support for SB 1150 What is the Homeowner Survival Bill?

Harris managed to obtain a twenty-billiondollar aid package for suffering California homeowners

Recently, you may have heard a lot of hype about The Homeowner Survival Bill of Rights, also known as California Senate Bill 1150, the brainchild of Senators Mark Leno and Cathleen Stockton. This bill is rattling individuals to rally because it recently won another important supporter: Attorney General Kamala D. Harris. But what is the bill? What does it signify, and what did the attorney general have to say about throwing herself behind the legislation?

Why Californians Need This Bill

An important potential concept for some of the most vulnerable members of our society, the bill enforces security of home ownership for widows and survivors. The idea behind the possible legislation is to force mortgage lenders to interact with those less than fortunate individuals to educate them correctly about how they can take over paying a mortgage on their own, with a focus on attempting to avoid foreclosure. The bill hopes to prevent any further punishment or suffering on already struggling individuals, who through the loss of a spouse, may now be on the verge of losing their homes. To protect these individuals from enduring even greater loss after they have already suffered a tragedy, the legislation is, in part, a concept the Attorney General herself escalated in 2011. During that year, Kathleen 23

“Following the devastating loss of a loved one, too many Californians also face the possibility of being stripped of their home.

This proposed legislation requires mortgage servicers to communicate with spouses and children of deceased homeowners and gives them a fighting chance to stay in their homes,” said Attorney General Harris. “I thank Senators Leno and Galgiani for their efforts to extend critical financial and legal services to Californians facing unnecessary foreclosures.” One thing the bill attempts to do is provide survivors or heirs to receive, at the same time, loan assumption and loan modification. The goal of the program is to force one point of contact with the lender to make the entire process simpler for the person suffering such a tragic loss. These steps include an attempt to relieve stress and try to promise the individual that options about retaining the home do exist. Working with the lender, the mortgage company should provide both education and support to the survivor, discussing and laying out basic plans and approaches so that the survivor can make a decision and utilize necessary resources.

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OUR COVER

servicer[s] must have policies and procedures reasonably designed to ensure that, upon notification of the death of a borrower, the servicer promptly identifies and facilitates communication with a successor in interest of the deceased borrower with respect to the property that secures the deceased borrower’s mortgage loan.

“Instead of getting basic information on how to proceed with a home loan following the death of a loved one, surviving spouses and children face a labyrinth of paperwork and conflicting directions and requests, which only prolongs their grief,” said Senator Leno. “Many family members unnecessarily lose their homes without ever knowing they had the right to Taking Action assume the loan or seek foreclosure remedies.

Before more families give up, we must step in.” In 2012 the attempts to help homeowners that fell on hard times continued. That year, Attorney “As California’s senior population increases so General Harris completed her famous twentydoes this problem. Through its common-sense billion-dollar aid plan to provide relief for protections, SB 1150 would prevent additional, California homeowners in need. The settlement, unnecessary, ‘red-tape foreclosures’ on widows, at the time, seemed like a saving grace for many widowers, and other heirs,” said Kevin Stein, failing homeowners. And yet, these actions Associate Director at California Reinvestment were still not enough to regulate the problems homeowners faced with mortgage lenders when Coalition. at their lowest points of manipulation. The Finding some resolution program to assist California Homeowner Bill of Rights (HBOR), survivors existed in the works of the government partly spurred on by Attorney General Harris, system since 2011. During that year, a Mortgage introduced several new laws to both protect from Fraud Strike Force initiated itself into the and prevent foreclosures inflicted upon California California Department of Justice to examine homeowners. The laws, in effect since January and also press criminal proceedings against any 1, 2013, do several things. First, they ensure misconduct at any point of the mortgage process. that homeowners who are having difficulties The Mortgagee Strike Force’s existence came will be able to get contact with their lender. The into play to hold accountable any mortgage legislation also does not allow much room for lenders who were engaging in illegal activity, dual-track foreclosures while also making sure or potentially taking advantage of vulnerable that charges are brought against those engaging in fraud when practicing mortgage lending. borrowers.

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Back in 2013, the Consumer Financial Protection Bureau commented that “servicer[s] must have policies and procedures reasonably designed to ensure that, upon notification of the death of a borrower, the servicer promptly identifies and facilitates communication with a successor in interest of the deceased borrower with respect to the property that secures the deceased borrower’s mortgage loan.� Although this comment was put forth, and strongly justified by its supporters, many noted to the California Department of Justice that many mortgage lenders simply did not attempt to do much when dealing with either widows and orphans of homeowners that had passed on. There was no strict law, plan, or bill set in place, so mortgage lenders still had wiggle room to avoid doing what most people would call the ethical thing, and wiggle around they did.

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Thus, it came to light that more action needed to occur to reign in the mortgage lenders. The problem persisted and as such, many in the legislature began discussions on how to author legislation to solve the problem and force mortgage lenders to do the right thing when dealing with the deaths of homeowners. This experience is how SB 1150 developed into a plan to make sure mortgage lenders took the time to successfully communicate with suffering families facing a potential foreclosure after a personal tragedy. The inability to provide leniency after the death of a loved one ensued shocked many in the legislature and calling for a method of action to control the actions of mortgage lenders became a growing focus in legislation.

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YOU

HOW TO AFFORD YOUR DREAM HOME

Ah, the dream home, the grand palace, the ideal setting in which you would live out the story of your life. It’s a personal endeavor, as unique to the individual as a genetic code – okay, not that unique – but unique all the same. The attainability of such an audacious muse depends largely on the person imagining it. Whether it be a grand lodge of many rooms, or small cottage in the quiet woods, it can be had – if you do the right things.

know what your dream home is, realistically. Do you think it’s a castle built high upon some hill overlooking a vast valley of green the glistens in the morning light? Or is that a knee-jerk response given by the highest levels of imagination? If it is said castle, are you willing to do the work of maintaining such a large space? Are you willing to pay to keep it warm in the winter (or cool on the summer)? How’s the commute? What about mowing the lawn? True wisdom comes from knowing oneself. Take the time to realize what you really want out of life. You know you best, so only you can determine what you really want. See how the home fits into all that.

Make sure that all the responsibility that comes with the home of choice caters to your overall happiness – realistically, of course. Don’t jump into something that has baggage you have no interest in carrying.

Be realistic. You have a budget to consider. You have location and availability to consider. Don’t worry about specific details; you’ll cross that The first step to affording your dream home is to bridge soon enough. Focus on what will make

Everything begins with vision

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YOU

you both happy and content. How do you spend your idle hours? Do you live alone? Consider your activities, your hobbies, and where you would rather spend the majority of your time.

Write it down. Draw a picture if you have to.

Just make it clear to you. Every decision you make from this moment on will affect your ability to get it. You have to see the road in order to follow it.

reduce your debt load as much as possible. Debt to income ratio is critical when applying for a loan. While you’re at it, do miss any payments at all, ever! Electric bills, cables bills, car payments, insurance – whatever – always pay them on time, early if you can. These are the things good credit scores are made of.

Commit & Prioritize

You’ve done this. Awesome, now go share your vision with a real estate agent. Tell your agent everything. They are the professionals and know how to give you what you want. They will know where you should be flexible and where you should be rigid. Most importantly: they know that this is a process, a journey, and that it takes steps to get there. Your first home will probably not be your dream home. Get comfortable with that thought. Unless you win the lottery or score really big in your profession, you will need to build equity in doses small enough to chew. Be willing to stick out 5 to 7 years in a home that can be eventually sold for an upgrade. Your real estate agent will help guide you along this stage of the journey. Trust your agent; he or she is here to help.

This is no time to get distracted. You’re not interested in what’s behind the bushes. You’re only interested in the road that leads to your dream home, right?

So don’t start getting flippant with your life style. Go ahead and have fun, but be responsible about it. It’s your dream after all. No one else is going to get it for you.

This is where priorities kick in. We all have things that we spend our money on. Some of those things are so super important that none of can even imagine being without them. (Internet, anyone?) This is where your commitment hit the pavement. Get into the numbers. Sit down and figure out where all of you money is going.

Write it down. Have you done that? Good.

Now number everything by priority. There are no decimals here; whole numbers only. And you can’t use a number twice. Once this is done, decide if there is anything that can be done without and get rid of it. The choice is yours.

How bad do you want your dream home?

Be smart with your money What better time to talk about debt and credit?

There are many schools on what should happen at this step. In all cases, there are really three things banks look at when considering a loan: income, current debt load, and credit score. So if you don’t have one, get a job. Make sure that job can pay for your vision. With that job, 29

Trust the Professionals

The Score Sounds easy, right? It can be. It has been said that an easy life requires hard work. If you are willing to create a vision, stick to it, prioritize around it, clean up your budget, and get professional help whenever needed, then it will be a piece of cake. It requires discipline. Your dream home can be yours, but it will not happen by itself. Like everything in life – you will reap what you sow. Give it everything that it requires and it will materialize when the time is right.

And it takes time, so be patient. Your happiness is worth the effort. Good luck.

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MORTGAGE

may 2016 issue

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MORTGAGE

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Our board of directors

Successs Money

SECOND VICE PRESIDENT success.money@ocrealtist.org 800-790-0941 ext. 737

Eric Lawrence Frazier PRESIDENT

Kym Thompson

DIRECTOR AND ASSISTANT TO THE PRESIDENT kym.thompson@ocrealtist.org 714-293-2098

Christina Kimble

Ivery Summers

R. Ann Ellis Hall

FIRST VICE PRESIDENT ivery.sells@verizon.net 310-920-3455

may 2016 issue

THIRD VICE PRESIDENT christina.kimble@ocrealtist.org 800-790-0941 ext. 705

SECRETARY ann.annellis@gmail.com 626-864-4127

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Our board of directors

Mary Ann Epstein

Edilma Friesen

EXECUTIVE VICE PRESIDENT Edilman.Friesen@ocrealtist.org 949-209-7708 657-900-2066

La Toya James

VICE PRESIDENT OF AFFILIATE latoyajamesrealestate@gmail.com 323-767-6933

VICE PRESIDENT OF TECHNOLOGY maryann@realpro.la 909-539-7196

Felsia Dailey

DIRECTOR OF MARKETING fdailey@ocregister.com 714-856-1743

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