Perspective - Perspective - Perspective!

As a Realtor, I have to keep reminding myself not everyone views life as I do.  For example... interest rates today are so low they seem silly to me.  Maybe that's because I started selling homes in 1979 when interest rates were 16-17%.  We couldn't even get loans on most of the homes then and had to use "creative financing" to close those escrows.  Every sale closed with a major party for me and the buyer or seller!  And celebrate we did ... it seems amazing today as we remember how happy we were just to be able to put together a transaction in those times ... sometimes you don't know what you don't know and it doesn't matter.  We all visualize things differently and therefore we all see the outcomes from those perspectives.  I was walking my beautiful Great Pyrenees dog the other day and was stopped by a lady walking down the street toward us.  "What an amazing animal that it is" she remarked.  "It looks like a wolf walking down the street."  I laughed - you should look at her from behind I said, from this angle with her long legs and dewclaws she looks like a hooker in high heels.  We both laughed.  How different she looked from each perspective.  

I was working with a first time buyer showing homes this month.  He was so excited and worried as he looked at each home we were previewing from the perspective of what it would be like to live in that house, in that neighborhood and with that mortgage.  We looked at quite a few homes over a few weeks and finally we found one that seemed to appeal to him.  We parted ways for the weekend and regrouped on Monday.  I asked him which home he liked best out of three we saw the previous week.  I started with helping him remember how the houses appeared from the street, how big the garages were, how many bathrooms and then he stopped me.  "I know" he said "which one I really liked."  Which one? I asked - he hesitated for a moment and then explained  "I liked the one with the kittens the best - remember the kittens in the backyard?  I hope they are still there.  That was the house I liked the best."  I laughed because I remembered the kittens too, they really pulled at our heartstrings knowing someone had left them behind.  But the big surprise was how he was processing all the previews and what made him remember his favorite house.  He remembered the home quite well too but his trigger was the kittens.  

I try to remind myself to slow down and smell the roses from time to time but sometimes the greatest help is to stop and try to see the world through someone else's eyes for a change.  It can make such a difference.   

Blessings for a wonderful summer!  

Team South Bay Realty
24214 Hawthorne Blvd. Suite B
Torrance, CA 90505
310-378-4440

SHOULD MOM AND DAD CO-SIGN?

Years ago, most young people purchased their first home with help from Mom and Dad or other family members.  For most families in the 50's, 60's, 70's, less cash was available so they helped by co-signing. In the 80's and 90's and 2000's we experienced a surge of affluece across all generations and loans were easier to obtain.   We were seeing very few co-signers.  Today we've turned
the corner again.  Tighter lender standards and an unstable job market have made it tougher for some people, especially those just starting out, to qualify for a home mortgage on their own. So, some home buyers are turning to family members or close friends with good credit to co-sign a home loan.

Making sense of the story

• While becoming a cosigner may seem like a good solution, money manager and lenders caution against those who are asked to be the cosigner.
  
• A cosigner, even if not living in the house, is really a coborrower, meaning he or she still is responsible for payments if the occupant is unable to meet his or her obligations. In other words, if the principal party defaults on the loan, the cosigner is on the hook.
  
• One financial planner suggests potential cosigners take a less risky alternative, such as providing a cash gift for the down payment. Under current tax laws, a person can give as much as $13,000 to a person, free of gift taxes, or $26,000 per person, if a married couple filing jointly is giving the money.
  
• Those considering cosigning a mortgage must conduct due diligence. First, the cosigner must understand why the family member or friend is asking for help. Potential cosigners shouldn’t be afraid to look into the requestor’s personal finances to help determine whether he or she will be able to repay the loan. Perusing credit reports also will show the track record he or she has for paying off debts. A discussion about worst-case scenarios also should take place before signing on the dotted line. Working out a written contract containing an agreement about what would happen in the event of a default, also is recommended.
  
• Cosigners also should keep in mind that the mortgage will show up on their credit report, and could affect their own ability to borrow money or buy a second home. If the principal borrower makes a late payment, that also will show up on the cosigner’s report.

Call me and I can help you review all your options before agreeing to co-sign for financing in today's market.  We should always look at the long term effects of any financing before signing on the dotted line. 

Check with Team South Bay Realty for all your real estate and financing needs.  We have a team of qualified professionals who are accountable and ready to help.  We're your Realtors For Life!