Archive for November, 2008
BIG DROP IN MORTGAGE INTEREST RATES, VET LOANS OFFER LEVERAGE
HOME LOANS, INDUSTRY NEWS, SHASTA COUNTY, TIPS FOR BUYERS
The interest rate for a 30-year fixed rate loan dropped more than 1% from last week. One local lender 
quoted 5.25% at last weeks MLS meeting however the state average is closer to 6%, according to the California Association of Realtors weekly news brief. Rarely do rates fall by such a large margin in such a short period of time. Financial markets have been volatile lately so this rate could jump to over 6% just as quickly as it plummeted.
During this period of financial turmoil, rates have been bouncing around from just over 5% to above 6.5% for the past month or so. The 15-year fixed rate usually follows the 30-year rate but is around 1/4% to 1/3 % lower. Lenders are not pushing adjustable rate mortgages as much anymore due to consumer fears of being susceptible to payment shock.
Reputable lenders giving quotes will advise the borrower that the final rate and terms will be based on their overall financial profile including credit score, job history, assets, liabilities and size of the downpayment. Automated underwriting, where a borrower is approved by a computer once all necessary data regarding the borrower has been inputted, will only be granted to those with excellent credit scores, generally above 720. The bottom line is these loans must make sense and expect the lender to request substantial supporting documentation from the borrower to secure the best rate and terms.
Now that the subprime loans are a thing of the past, VA loans for veterans allow the best opportunity for leveraging into a home with limited cash resources. Generally speaking, a Vet can get into a home with no downpayment and little or no closing costs. Non-veterans can find 100% financing on certain properties through specialized programs such as the USDA. Contact a local mortgage banker or broker for details on loan programs that suit your financial capabilities.
Despite news reports to the contrary, lenders have plenty of money to loan to qualified buyers.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
BUSY BEAVERS DAM MARY LAKE OUTFLOW
REDDING LIFESTYLES, REDDING RECREATION, SHASTA COUNTY
It’s that time of year again! Fall rains excite the beaver family living in Mary Lake to build dams and slow 
the movement of water downstream. Jenny Creek feeds Mary Lake (aka Falks Lake) from the hills that form the western boundary of Redding above the subdivision. The beavers have built two dams in response to the first storms of the rainy season. One dam is at the lake outlet and the other is below the retention pond by Lakeside Drive.
For anyone interested, the beaver den is on the west side of the lake near Kildara Ridge. A nearby liveoak tree has been gnawed halfway through but is still alive. I believe the beavers gave up on this old oak because it will fall away from the lake when it drops.
The other benefit of the first storms of the season is the flushing of the summer algae buildup. The City of Redding Parks Department has made a valiant effort to control algae with some success. They have installed an aeration system, added blue dye to the water in early summer and added fresh water to the lake during the hottest weather periods.
City park employees will remove the dam at the outlet of Mary Lake once it reaches a certain height. So far, the lake has risen nearly a foot. If the beavers continue their dam building activities the water level will rise even higher, swamping sections of the perimeter walking trail. In the past, I have suggested the city consider installing a beaver deceiver but the employees enjoy the periodic chore of destroying the beaver dam. However, destroying the dam means the beavers will seek out more twigs, branches and trees to rebuild the dam. This can have an adverse impact on the trees that ring the lake. This is what precipitated a debate about ridding the lake of the beavers several years ago.
Mary Lake residents saved the beavers from the gun and the city made an effort to protect the trees from the beavers. Mary Lake is actually a very healthy ecosystem that supports a wide variety of birds and animal life. I believe it is one of the prettiest neighborhood parks Redding has to offer its residents!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
SALMONZILLA: MEET BIGFOOT
REDDING LIFESTYLES, REDDING RECREATION, SHASTA COUNTY
Found on the Shasta-Tehama County line near Battle Creek was this corpse of a gigantic 85-pound salmon 
dubbed Salmonzilla. News of the find by state scientists, and their Halloween day photographs, have made it around the world and some skeptics are already calling it a farce. Locals here in the Northstate are no strangers to having our freaks of nature questioned by the masses.
Earlier this year, two guys from Northern Georgia claimed to have in their possession a frozen corpse of our local resident-Bigfoot. I wondered how and why he/she/it left Trinity County for Georgia and was skeptical, to say the least. Just days later the fraud was unmasked as nothing more than a gorilla suit that someone had stored in a chest freezer. Whew! Bigfoot lives! The rugged and beautiful Trinity Alps west of Redding remain the most plausible home for such an elusive creature.
In this day an age of digital trickery, anything is possible. Regardless of
what solid proof is provided, there will always be nonbelievers. Although I have spent many weeks camping, hiking and backpacking in the wilderness areas that surround Redding, I have yet to see Bigfoot. I have also seen my share of spawned out fish carcasses along the Sacramento River but nothing close to the size of Salmonzilla. And just because I haven’t seen either with my own eyes does not mean they don’t exist.
Thousands visit Roswell, New Mexico yearly looking for UFO’s. Now Redding has two local celebrities and their descendants for anyone willing to visit to try to find. Good luck!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
TIPS FOR JUGGLING DEBT
SHASTA COUNTY, TIPS FOR SELLERS, TIPS FOR SENIORS
Many families are struggling to pay their bills considering the tough economic times and double digit 
unemployment locally. This problem is not unique to Redding or Shasta County but is affecting millions across our nation. Here are some tips for dealing with debt as detailed in a pamphlet from the FTC:
- Develop a Budget-If you are serious about improving your financial situation, an honest assessment of income versus expenses is needed. First determine your income from all sources. Then list your fixed expenses, those that occur monthly such as mortgage, car and insurance payments. Then list expenses that vary from month to month such as clothing, recreation and entertainment. Many money management tools are available at the library and online. Reconcile the income vs. expenses to determine if and where adjustments are necessary.
- If the budget is in the red, contact your creditors and notify them you are having trouble making ends meet and why. Ask if the payment plan can be modified to fit your current finances.
- Failing that, know your rights regarding debt collectors:
- Can’t call before 8am or after 9PM
- Can’t call you at work if your employer doesn’t approve of the calls
- Can’t lie, harass you or use unfair practices to collect debt
- Must honor written request from you to stop further contact
4. Credit counseling-seek out in-person counseling from a non-profit organization if you need help. Check with local credit unions, housing authorities, colleges and branches of the U.S. Cooperative Extension Service. DO NOT sign up for a service that charges high fees or pressure you to make large “voluntary donations” that ultimately only straddles you with more debt.
5. Consider debt consolidation option if you have home equity and the necessary credit score. Realize that you are putting your home up as collateral and could lose your home if you don’t make the payments. There is usually a fee for borrowing so take this into consideration too.
Bankruptcy is the option of last resort since your credit will be adversely affected for at least 10 years. Bankruptcy laws changed a few years back that encourage developing a repayment plan (Chapter 13) vs. a total discharge of debts (Chapter 7). One other change requires six months of credit counseling from a government-approved organization before you can file for bankruptcy. To access the list of approved credit counselors visit:
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
REP GMAC COMMUNITY FUND BENEFITS AREA NEEDS
REDDING LIFESTYLES, SHASTA COUNTY
For the past 10 years or so, all agents that work at Real Estate Professionals GMAC have directed a portion
of every sale commission to The Community Fund. Tens of thousands of dollars have been accumulated over the years and the agents periodically decide where to invest the funds in our community.
The first project funded by the fund was the Balancing Act bronze sculpture in Caldwell Park. A couple years later, our office funded the C.C. Bush bench and sculpture which continued the tradition of building an art walk in Caldwell Park. The Shasta Association of Realtors got involved with their own generous donation to help build a statue to Claude Caldwell, that is nearly finished and will be dedicated soon.
Last week the office discussed what future contributions should be 
considered. A subcommittee recommended several worthy causes. Since we are in the real estate business, we try to focus on things that assist in the basic needs of life-food and shelter.
I’m happy to say that two local food banks will be provided cash donations to help stock their shelves with food staples before the holidays. Four worthy recipient charities were placed on a ballot and voted upon by REP GMAC agents. The lucky winners of $500 each are: Redding Loaves and Fishes and Shasta Senior Nutrition Program.
Agents also decided to fund a perpetual scholarship for $1,000 through the Shasta Association of Realtors Scholarship Committee. These scholarships are awarded to Realtor members’ children attending junior college or universities.
Several other donations are being contemplated. Contact me, or any agent you know that works at Real Estate Professionals GMAC, if you have any suggestions.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
COLLECTIVE SOUL ROCKS NORCAL
REDDING LIFESTYLES, REDDING RECREATION
Feather Falls Casino took a gamble booking this Stockbridge, Georgia alternative rock band for a concert 
at their events center, but it paid off in spades! This band has not achieved the commercial success of many other rock bands, but that is not due to a lack of talent. A legal dispute with their manager derailed the bands early success and resulted in lower record sales, popularity and radio play while they laid low until the lawsuit was resolved. I’ve heard they have refused to participate in the pay for play game common in the music/radio business. Instead, they have allowed word of mouth to build a following that continues to grow and grow. They have one triple platinum album, one double platinum and two platinum albums. I here their music played regularly on non-commercial satellite radio.
The venue accommodated a sold out crowd of 900 for Friday evening’s show. The band flew out from Georgia for this one performance. Third row center seats made this a special treat for half a dozen Redding fans, myself included, that understand the talent this band has to offer in the way of lyrical and musical offerings.
Lead singer Ed Roland is the musical genius that, according to their new drummer Cheney Brannon, continually spouts new songs and deep, thought provoking lyrics. No surprise since his father was a preacher and Ed has incorporated some of those teachings into his songs. Ed’s brother Dean, plays guitar and keyboards. Even the band’s name has an air of theology, but it actually came from a line in the book The Fountainhead.
Make no doubt about it though, this was a hard-rocking, foot-stomping, get out of your seat and sing at the top of your lungs affair. Ed makes a point of telling his audiences there is only one rule-sing along! And the crowd responded! The aisles were crowded with ladies (and a few guys) dancing and swaying to the music. The events center rocked as Collective Soul belted out one hit after another. Check out their video: 
Friday also was the night the movie Twilight hit theaters across the country. Collective Soul contributed one song from their Dosage album-Tremble For My Beloved- to this movie’s soundtrack. They also had songs featured in Scream 2, Jerky Boys and Varsity Blues.
Hollywood, a cut from their last album, included riffs from AC/DC to show their genuine rock n’ roll roots. They also played Georgia Girl from their latest album-Afterwords. Ed said a new album should be out in Spring of 2009.
We asked Cheney to let the band know we would love for them to play Redding and hope they will accept an offer if a local promoter calls! Click here to listen to Collective Soul radio:
http://www.rockridgemusic.com/collectivesoulradio/
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
CALIFORNIA HOME AFFORDABILITY MORE THAN DOUBLES
HOME LOANS, INDUSTRY NEWS, TIPS FOR BUYERS
At the peak of the market, California had one of the worst affordability indexes in the nation at 24%. Inman News reported Friday that that index has increased to 53% statewide. Although I don’t agree on the criteria used to determine the Affordability Index, it is a barometer of how many Californians can qualify to buy an entry-level home. Declines in both prices and interest rates have opened the door for many first-time buyers frozen out of the market during the peak.
A household with a median income of $56,100, using a 5.91% ARM and making a 10% downpayment, can purchase a home priced at $287,760. The monthly payment would be $1,870/month including taxes and insurance. I prefer my clients buy a less expensive home and use a safer 30-year fixed rate loan. Today, we are seeing the end result of too many buyers using risky mortgages to buy the American dream- foreclosure!
If you don’t mind living in the Barstow area, you will find home prices less than $150,000 and the highest affordability index of 73%. Nationally, the Housing Affordability Index sits at 68% today. The Bay Area counties of Marin, San Mateo and San Fransisco rank lowest for affordability with indexes of 24%, 29% and 26% respectively.
Redding/Shasta County are lumped into Northern California with a 51% affordability index. The median price in Redding currently sits just over $200,000.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
TIPS TO PUMP UP YOUR CREDIT SCORE
Lenders would loan you money if you could fog a mirror
just a few months back but not anymore. Your credit score will determine if you are granted or denied a loan, what interest rate you will be offered and how much you will have to pay upfront. Taking control of your future requires some effort on your part to improve that single number that is a benchmark for lending-your credit score.
Start by ordering a free credit report from one or more of the three consumer reporting companies. Do not respond to an email offer or a phone call offering a free credit report. It’s a scam. There is only one authorized online source for your free credit report-www.annualcreditreport.com or call 877-322-8228. By law, you are entitled to a free credit report from each of the three agencies once every 12 months.
To improve your credit score:
- Contact the credit agency if there is any inaccurate information in your credit file. Include copies of any documents that support your dispute. Send your proof by certified mail, return receipt requested. Keep copies of all correspondence.
- If the credit agency refuses to remove the disputed item, ask the company to provide your statement to anyone that has received your credit report in the past. You can also tell the creditor with whom you have the dispute to provide a notice of your position to anyone requesting your credit profile in the future.
- If you are denied credit due to “no credit file” or “insufficient credit file” and you know you have accounts not reflected on your credit report, ask the credit reporting companies to add these to future reports. They have no obligation to do so, but may add verifiable accounts for a fee.
Negative credit information will only heal with the passage of time. These items will haunt you for seven years but bankruptcy will linger for 10 years on your credit file. Unpaid judgements will dog you for seven years or the statute of limitations, whichever is longer. Criminal convictions have no time limit. The clock starts ticking from the date the event took place.
Minimum credit scores, generally speaking, need to be at least 680 to be offered the best terms and rates. Lenders will consider many other aspects of a borrowers risk factors including job history, savings reserves and total assets. Credit scores above 720 usually allow automated underwriting and less scrutiny to obtain the coveted full loan approval.
Here’s generally how lenders view the various credit scores that range from 0-850:
- Below 600-Subprime-expect any offer of credit to be expensive
- 600-660-Workable, but likely to pay higher interest and upfront fees
- 660-700-On the cusp-with some effort, may get the best interest rate but higher fees
- 700-800-Qualify for best interest rate and lowest upfront fees
- 800-850-Sign here, loan approved!
These ranges are based on my experience and any lender will tell you all aspects of your financial profile will impact the final rate and fees, not just the credit score.
A big thank you to Eagle Home Mortgage of Redding for distributing pamphlets from the FTC that contain the information I used to write this blog.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
ANDERSON POLICE CHIEF UPDATES REALTORS ON AREA CRIME
Anderson Police Chief Dale Webb spoke to a group of Realtors about his department and crime activity in 
the City of Anderson. I came away with the impression that Anderson resembled Mayberry of TV lore. No homicides in two years, no spike in petty theft or burglaries despite the tough economy, a slight increase in assaults, which he speculates may be a result of higher unemployment. The jobless have more time to sit around the house and get into arguments, he surmised.
Anderson Police Department was formed in 1957 and currently has 18 sworn officers. Six dispatchers handle calls for service 24/7. Two openings in the department currently exist for a dispatcher and a police officer. They also have 3 detectives and 2 motorcycle cop positions. They respond to about 1,000 incidents a year. Police officers work 12 hour shifts. Response times are usually less than 5 minutes!
Two of the most effective programs that combat crime are the Shasta Anti-Gang Enforcement (SAGE), which is a collaboration with Redding Police and Shasta County Sheriff Department, and the School Resource Officer Program. Anderson residents pull out their lawn chairs to watch SAGE roust suspected and known gang members based on information from intelligence gathering and tips from the public. Once they have contacted the known targets they patrol the city looking for parole violators and others wanted by law enforcement.
The School Resource Officer Program is funded primarily by the Anderson School District. Despite budget cuts, the chief said school administrators see the value of having a police officer on campus to educate and protect students.
It’s comforting to know we live in an area where low levels of crime allow police to respond quickly and investigate calls in a timely manner. Just one more reason to call this part of California home!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
GOLFER SHOWS LINCOLNESQUE HONESTY
Scandals involving cheating have tarnished many professional sports for years but what 
happened last weekend shows the honesty and character that typify the game of professional golf. Pro golfer J.P. Hayes alerted officials that he had played a nonconforming golf ball in the previous day’s round that immediately disqualified him from completing the competition to win exempt status for the 2009 PGA Tour.
No one called him on it, he came forward knowing the admission would disqualify him from competing for the exempt status that gurantee qualification to play in tournaments next year and potentially costing him the chance to win a considerable sum of money. He has already earned more than $7 million during his PGA career. Just showing up to play in a tournament earns a tidy check.
By calling himself out on his violation, he will have to wait a year to go through the Q School which could result in severe damage to his golf career. Like many sports, your prime years as a pro are limited. The Titleist ball he used was an experimental ball that he inadvertently left in his bag and was grabbed by his caddie when he hit a second ball after missing the green on the 12th hole at DeerwoodCountry Club. The one-ball rule requires a player must play with the same model ball throughout the round.
It’s easy to be honest when everybody is watching your every move. But when you are the only one that knows you have broken a major rule and you know the consequences of admission will have career-changing effects, that’s when your true morals and upbringing trump doing the wrong thing. Even though he will have to wait a year for a chance to win the coveted exemption, I suspect his honesty will be far more rewarding in endorsements and sponsor exemptions. Best of all, he can sleep at night with a clear conscience that he did the right thing.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
PREMIER SERVICE® is the focus of Real Estate Professionals/GMAC. We are located in Redding, CA (at the North end of the Sacramento River Valley) in the midst of river, lake, ranch and mountain terrain.
Our Customer Satisfaction Rating, based on an independent survey, exceeds 97%. This is reflected in our 2008 "QUIE" Award recognizing the TOP 10 REAL ESTATE COMPANIES in NORTH AMERICA! REP/GMAC in #2.
