Kemmer's call

Generally, lenders will evaluate the four Cs when determining a borrower's eligibility for a mortgage. If your self-employed, you'll still be evaluated on the four Cs, but may be asked to provide some different or additional documentation to determine how much you may be qualified to borrow.

If you're self-employed, you may be required to submit the following documents when applying for a mortgage:

  • Two years of personal tax returns
  • Two years of business tax returns including schedules K-1, 1120, 1120S
  • Business license
  • Year-to-date profit and loss statement
  • Balance sheet
  • Signed CPA statement
  1. Capacity: Lenders look at your income, employment history, savings, and monthly debt payments, such as credit card charges and other financial obligations, to make sure that you have the capacity to take on a mortgage comfortably.
  2. Capital: Lenders consider your readily available money and savings plus investments, and other assets that you could sell fairly quickly for cash. Having these reserves demonstrates that you have additional funds, in addition to your income, that are readily available to pay the mortgage.
  3. Collateral: Lenders take into account the value of the property that you're pledging as security against the loan. Depending on how your personal business is organized, additional documentation may be required.
  4. Credit: Lenders check your credit score and history to assess your record of paying bills and other debts on time.
Posted in:General
Posted by Kemmer Daniel Matteson on October 23rd, 2019 2:02 PM
Slightly weaker inflation and labor economic data caused mortgage rates to dip this week. Moving into summer, we expect rates to be about a quarter to half a percentage point lower than where they were last year, which is good news for the housing market. These lower rates combined with solid economic growth, low inflation and rebounding consumer confidence should provide a solid foundation for home sales to continue to improve over the next couple of months.
Posted in:General
Posted by Kemmer Daniel Matteson on May 7th, 2019 8:49 AM

California Mortgage Market

California Mortgage loans today are sold on the secondary market and have prices like stocks. There is a price for a 30 year, 15 year, and adjustable rate mortgages in California. If you own a home in California and you are looking to refinance your home or if you are looking to buy a home now is the time to see what California home loan programs you have available to you and find out what interest rate you qualify for with refinancing or purchasing a home in California.

So really everyone has the same rates. So for example if you wanted to buy apple stock at $100 , I don't care how many companies you call the price is the price. Just like stocks you are going to pay a transaction fee (closing costs) and that can vary from company to company. If you used an online stock company you can save money over using a full service stock broker as their overhead is less as they do things electronically.

Much the same in the mortgage market, Banks with many office locations conviently located for you to go to cost money and with a fixed market prince for mortgages they have to increase there rates or fees to cover the costs.

We are an on-line, paperless California mortgage brokerage with the latest technology to get home loans done with minimal expense and the savings in lower rates and fees are passed onto you. Find out today how First California Financial can help you refinance your home loan in California or buy a home with us with a low interest rate.

Posted in:General
Posted by Kemmer Daniel Matteson on October 21st, 2014 4:51 PM

With the economy slugglish and plodding along and no inflation on the horizon. The feds announced that the federal funds rate will remain low through 2013. This is a long horizon and many factors could change this. 

However with rates now below 4% for a 30 year mortgage this is be the time to buy. With tax deductions for ownership and values as well as rates dropping the mortgage payment you could have is close to what rent would be with a 10 % down payment.

Give me a call and i can run the advantages for you...




Posted in:General
Posted by Kemmer Daniel Matteson on February 7th, 2012 11:29 AM

While Gold, Oil and Silver all hit new record highs this last month. The stock market is wavering and starting to teeter again. Unemployment remains high and the economy is not really doing all that much better.

Quietly the mortgage rates are dropping. As a matter of fact we just hit the year low and have broken new resistance. Click here for a graph. I believe that the affordability index is at new records as well. In the midst of the media's gloom and doom there are bright spots.

If you are a renter you can qualify for a purchase for about what you are paying for rent. If you are a homeowner lock into a low fixed rate now if you are planning to stay.

There are new programs out there for up to 125% Loan to value for refinancing on a Fannie Mae loan. As well as loans up to 3 million with 40 year amortizations and interest only payments. Housing has never been so affordable in many years.

Real Estate is and always be a great and safe long term investment.

Visit our website HERE for Real time quotes on rate and terms.


Posted in:General
Posted by Kemmer Daniel Matteson on May 5th, 2011 4:17 PM

Watching the protests in the Mid-East and the resulting fears of an oil crisis creates a drop in interest rates.

With oil pushing $100 a barrel the resultant increase in costs to business not to mention the gas pump for the average consumer could create an economic downturn.

With the stock market losing ground already there is a flight to safer grounds, which have been bonds and mortgage backed securities. I have seen rates drop this last week almost a full point.

This means a great opportunity to lock in new financing terms or purchasing at a lesser cost. Home affordability is key to the success in the US economy and is the missing piece to the recovery. We will see ups and downs.

If you have not locked in a low fixed rate time to revisit the opportunity NOW. Give me a call.




Posted in:General
Posted by Kemmer Daniel Matteson on February 24th, 2011 7:17 PM

So just when i though the rates were stable the markets corrected once again...

With rates now pushing over 5%, almost a 1% increase in the last quarter. There is still a value problem in housing as a 1% increase in rates creates a 16% decrease in value for the same payment, so the afordability index gets worse.

 I don't know about you but I do not feel as if this economy is out of a recession... Unemployment dropped to 9% from 10%, but is that during the holidays with more jobs created? Stock market went from up over 10 % in the same time period. So signs would indicate that we are pulling out.. So should the government raise the Fed rate now to curb off inflation? or will the increases already put a damper on the markets.

In the long run though housing is still the best investment.

Locking in a 30 year loan for 5%  and waiting this out is a great investment... with more people renting now.. If you have money parked I would invest in a rental property or buy you own home

My home dropped over 50% from the high and I have lost all equity I gained in the last 10 years.. how much lower can it go?  Its like buying  10 yeas ago now with lower rates!

Kemmer Matteson

Posted in:General
Posted by Kemmer Daniel Matteson on February 10th, 2011 10:28 AM

While we have seen improvement in the economy and the stock market rally back up... there is still take of a large plethora of homes in foreclosure or banks are hold for resale.

The economy is driven by the consumer and if the lowering of rates caused the hugh run up in values, when it was over (2006)  the economy had to slow down..

Interest rates once again were lowered to allow for refinancing to lower rates and allow for those on adjustable rates to lock in before the rates head back up.

Currently the 30 year FNMA yield is floating around  100 giving us a rate of about 4.5%. While rates dipped a bit lower than this during the fall of 2010, I believe this is where we are going to sit for the next few months.

The apparent volume of home to sell will keep the prices stable if the banks feed the market there inventory and if rates remain stable we will get through this....

IF the banks dumped the load of foreclosures they are supposable holding  or rates jumped up the affordable index would once again drop. We are currently making great gains in the index (see link)

This would be a good time to buy on a fixed rate... or certainly lock in to a fixed rate refinance.

Visit our web site for a wealth of tools...

Kemmer Matteson


Posted in:General
Posted by Kemmer Daniel Matteson on January 19th, 2011 5:08 PM
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Real Estate is a long-term acquisition or at least it has been for many years. It is only in these last few years that the values of property went up at an astounding rate. This allowed individuals to buy a home and hold it for a year and sell it for a 10% gain or more. Couple this with some home improvements and you could see values skyrocket with decreasing rates to hold the payment increases to an affordability level that the market could bear.

The baby boomers were out in force again. They drove up the industry, and then it was tech stocks, next was real estate. There is so much power and money at the discretion of this affluent group that it creates a frenzy (look at Gold and Oil more recently) that spirals into a greed mentality that is only diminished when there is a new exploit to turn too. Look at our environment and the never ending plundering our natural resources.

We live in a capitalistic economy that is fed by consumerism and as such would cease to exist if we all became satisfied. Thus the concept of more, better, different. Apply this to the mortgage industry and you have what we got or really anything else you couold think of.

Tie this in with traditional banks (lenders) that lent out money on a margin over what they bring in on an average savings rate (Cost of Funds Index) and with extreme demand and they simply lend out all they had. Did you see signs on their front doors saying out of money come back later. Did they send letters asking you to deposit more money into their bank? No they simply went to Wall Street and sold the mortgages retaining a small % for servicing the loans for the investors. Then presto they had money to lend again. They then made origination points to cover costs and additional profits and when it was all lent out back they went again.

Eventually the market slowed down. So the banks lowered their lending criteria. They cut the credit scores, lowered the income standards or cut them altogether and raised the loan to value eventually up to 100%. This helped maintain the volume and profits. After they were no longer the lender, they became an originator with Wall Street assuming the risk. But what the heck with values increasing, that mitigates the risk, and everyone is going to make a buck in the end anyway.

So who is to blame? The government for lowering the rate to mitigate a slowdown in the economy, the boomers for taking advantage of an opportunity to make a quick buck, the banks for providing a service for a profit or Wall Street for providing alternative investments in mortgage backed securities?

Maybe its time we all take responsibility for being in a capitalistic society that allows us as individuals to make choices that can benefit us in the long run. We have the greatest opportunity in the world to make money in a free economy. Do we allow the government to take this freedom away with more regulation? There is no quick buck to be made; it is done with hard work and persistence over the long run. There is enough for everyone to win, do we have to let greed run us or can we be our brothers’ keepers? I'm not just talking the financial Crisis here either.

I for one will not be a victim of circumstances nor will I buy into the media hype and sensationalism of whatever the moment brings. I do appreciate that our leaders are attempting to assist "A government of the people for the people" is necessary.

If rates are low enough refinance into a long term fixed rate loan. Take responsibility for yourself. Get informed, educated or find someone whom is honest to help you become more knowledgeable.

I for one am her to help after 28 years in this industry I am not in it for the $$ anymore than I provide a service. This is just my take and I am tired of the victim mentality. Think positively and good things will happen.

Is it not a time for a change!


Posted in:General
Posted by Kemmer Daniel Matteson on January 3rd, 2009 12:25 PM
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