A Note From Your Mortgage Broker Jay
Property taxes are due April 10th and considered late after that date.
Quick reminder: if you ever have a question about your property tax bill, call me. If you don’t know what to do with a supplemental tax bill, call me. If you’re not sure whether your lender is paying your property taxes or not, call me.
Moral of the story — I’m your lender for life. That means I’m here for all of it, not just the loan.
Keys to the Close
Last month, my client closed on a $1.6M home in Altadena. 20% down, fully documented income, and we beat out six other offers including two all-cash offers. Here’s what made the difference: we raised his credit score from 703 to 748, structured the offer to look “cash-like,” and closed in 15 days.
You don’t have to just submit an offer and hope for the best. When you find a house you love, let’s go win it without overpaying for it. All it takes is preparation and a good agent. Cash offers aren’t as scary as they sound. We can outperform them.
Opening Doors: How Much Do I Need to Put Down?
Great news — you have more options than you think.
- 5% down — Ideal for homes priced under $850,000. A great entry point for getting into the market without draining your savings.
- 10% down — This is the new 20%. You can buy up to $2.5M, rates are only slightly higher, and we refinance you into a better rate when the time is right. No cost to you.
- 20% down — Strong rates and the most flexible underwriting.
- 30% down — Rates typically improve by another 0.125% over 20% down.
- 40% down or more — Best rates available. If you have it, lenders reward it.
One more thing: Gift funds are completely acceptable. If you have a family member or loved one willing to help with the down payment, lenders welcome it — and so do we.
The Self-Made Buyer
Lenders have genuinely fallen in love with self-employed borrowers. Mortgage rates for buyers who qualify using business bank statements are now virtually identical to rates for traditionally documented income. It’s a game changer.
But here’s the thing I want every self-employed client to hear: don’t sacrifice your tax deductions just to qualify for a loan. Talk to me first. Here’s a real example from a recent client who was deciding between two approaches:
Option A: Claim $260,000 in Taxable Income
- Tax bracket: 32%
- Estimated taxes: $83,000
- Loan amount: $1,200,000 at 6.000%
- Monthly payment: $7,194
Option B: Fully Utilize Deductions, Claim $110,000 in Taxable Income
- Tax bracket: 24%
- Estimated taxes: $26,400
- Loan amount: $1,200,000 at 6.250% (bank statement rate)
- Monthly payment: $7,388
The mortgage payment difference? $194/month.
The tax savings? $56,600 this year alone.
That’s not a close call. Keep your deductions. Call me before you make any decisions around income and qualifying.
Always consult your CPA before making any decisions about income reporting or deductions.
Off the Clock
As a dad of two boys (ages 4 and 9), I have logged an unreasonable number of hours on kids TV. Here are the definitive rankings, and I will not be taking questions.
- Puppy Dog Pals (Disney) — Controversial top pick, but the relationship between the brothers and their dad Bob is genuinely sweet. 9/10
- Bluey (Disney) — Everyone’s favorite for a reason. The adult jokes are legitimately spill-my-coffee good. 8/10
- Blippi (YouTube) — Every parent moves through Five Stages: Anger, Denial, Hilarity, Sadness, Acceptance. 7.5/10
- Paw Patrol (Paramount) — What if one of Elon Musk’s kids decided to use their inherited wealth for good, while also hoarding dogs. 7.5/10
- Daniel Tiger’s Neighborhood (PBS) — Solid life lessons. But what exactly did Grandpere Tiger do to build that kind of generational wealth? And shoutout to Trolley, the world’s first Waymo. 7/10
Ready to talk through your options? Reach out anytime — [email protected] | 310-994-8900