Tag Archives: FHA

Facebook Testimonial: Treated like a priority client!

Testimonial: Exceeded our expectations!Thanks so much to Erik Swanson for this five-star testimonial on Facebook! We love helping clients like this get into their first home. We’re so glad you love your new home, Erik!

“Man, we only could get an FHA loan and, in this market, it wasn’t pretty for what we were looking for. Marti was a true fighter and got us an awesome house that we truly feel like it was the best home that we could have possibly gotten, without relying on a massive bank heist or waiting for the prince of Nigeria’s check to clear (still waiting!)

Marti was quick to respond to concerns and never gave up on us! You will be treated like a priority client If you are a first time home buyer who just smashed open the piggy bank to get your first home or got the budget for a Lake Meridian house. I’m quick to recommend Marti any time I hear someone murmur buying or selling a house!

~ Erik Swanson, November 25, 2017

Read Erik’s review and others on Facebook here.

Honest Advice for First-Time Homebuyers in a Sellers’ Market

Honest Advice for First-Time Homebuyers in a Sellers' Market

 

With home inventory so low, homes are selling quickly and above the asking price, in many cases. Here is some sound advice to help first-time homebuyers purchase a home in this sellers’ market:

  1. Get pre-approved from a mortgage lender. Whether you go through a traditional bank or a mortgage broker, first-time homebuyers should get pre-approved before shopping for a home. This will show sellers that their lenders have run a credit check, verified income and have tentatively agreed to lend the buyers money to buy a home. Pre-approval also typically means that the homebuyers know how much home they can afford. Learn more about pre-qualification and pre-approval here.
  2. Buy a home with a conventional mortgage. This will make homebuyers more attractive to sellers than someone who is getting financed through a VA or FHA loan, for example, because those home loan programs sometimes have greater restrictions.
  3. Put down a large down payment. While low down payment programs like VA and FHA home loans exist so buyers can buy a home with less money down, you will be more attractive to a mortgage lender and home seller with a larger down payment. This will also save you in mortgage interest over the life of your mortgage loan.
  4. Come to the table prepared to cover closing costs. When sellers have multiple buyers to choose from, they are more likely to select a homebuyer that is not going to ask the seller to share in closing costs.
  5. Require fewer contingencies when making an offer. When a seller has to wait for you to sell your home, or when other contingencies exist, a homebuyer becomes less attractive. Sellers want to sell their homes for as much money as possible, and as quickly as is possible. When contingencies exist, they could potentially hold up the selling process.
  6. Make an offer above asking price. Homes on the market now are selling within days. To buy one of those homes, homebuyers often have to offer more than the asking price to get their offer seriously considered. Of course, how much a buyer can offer is going to be based on their budget and down payment, but in this market, they should be prepared to go above the asking price.

This market is particularly challenging for first-time homebuyers. If you are in the market to buy a home now, consult with an experienced Realtor – like me – who can help you improve your chances of finding a home and getting your offer accepted. We can help you understand your options and improve your chances of having your offer accepted.

 

 

4 Ways to Improve Your Chance of Getting a Mortgage

Mortgage talk is HOT on everyone’s minds right now –  especially in the midst of the spring and summer buying season. Homes rarely stay on the market for long if they’re a hot buy — so here’s how to jump start your likelihood of getting a mortgage, so you can get the home of your dreams faster!

  1. Financial Literacy: Shopping for a MortgageCheck your credit report. Make sure everything on your credit report is accurate, and dispute anything that’s incorrect. Make sure you pay down any debt you have, and don’t rush to close old accounts. According to Realtor.com, 15% of your credit score is due to overall account length. The longer you’ve had a certain credit account open, and as long as that account is intact, it’s wise to keep it open.
  2. Get pre-approved for a mortgage loan. Getting pre-approved may not guarantee you a home loan, but it will help you get an “in” with your lender to show that you are capable of being fiscally responsible and are serious about buying a home.
  3. Don’t apply for new credit shortly after applying for a mortgage. This could affect your score, and down the road, lead to rejection of getting a mortgage. Lenders will see every time that you have applied for credit, and your even searching for it can register a ding on your credit file.
  4. Decide on the right type of mortgage. According to Realtor.com, the type of home you want, as well as assistance you’ll need, will help decide what type of loan you’re eligible for. If you’re a veteran, you could consider a Department of Veterans Affairs loan.  If you’re a first-time homebuyer, the FHA could help you out, and provide you with a 3.5% down payment. Daily Finance recommends to get your paperwork together. Your lender will want to see proof of income, assets, credit documents, and any other important documents showing you make what you say you make, and that you are who you say you are.

Have questions? Reach out to a local mortgage lender or ask an experienced Realtor for referrals. Happy Hunting!

 

5 Commonly Asked Questions from First Time-Homebuyers

5 Commonly Asked Questions from First Time-HomebuyersWith 11 years as a Realtor® and 30 years of related industry experience, I’ve heard just about every question you can imagine from first-time homebuyers. Here are some of the most common questions I get along with the answers. I hope you find them helpful.

Why should I buy a home instead of rent?

A home is a long-term investment that gives you secure long-term housing and financial security. When you pay rent, that money goes to pay your landlord’s mortgage. When you make a mortgage payment, however, you are putting money toward your future. You can deduct the cost of mortgage loan interest, as well as property taxes, from your federal income taxes and, in some states, from your state taxes. You’ll also have something that’s yours and that reflects you and your personal style.

How much do I need for a down payment on a home?

A down payment on a home is a percentage of the home’s purchase price that you pay up front. Ideally, you should plan on a down payment of 20%, but depending on a variety of factors, you may qualify for a loan with as little as 3% down. For a conventional loan, if you are putting less than 20% down, your lender may require private mortgage insurance (PMI) which will increase your mortgage payments. The more you put down, the less your monthly mortgage will be. Also, remember that your down payment is not the only amount of up-front cash you’ll need to buy a home. There will be other expenses including closing costs to budget for.

Can I qualify for a mortgage if I don’t have a lot of money for a down payment or closing costs or poor credit?

The Federal Housing Administration (FHA) offers a variety of loan programs to help homebuyers with less-than-ideal circumstances. Learn more here. Click here for more information from the U.S. Department of Housing and Urban Development (HUD) including advice on buying a home and credit issues.

How do I find the right real estate agent?

I always recommend that prospective homebuyers work with a Realtor® rather than a real estate agent. While Realtors® and agents hold the same state licenses, a Realtor® adheres to the National Association of Realtor’s Code of Ethics and often has additional education. Read more about the differences between Realtors® and real estate agents here. To find the right Realtor®, ask friends and family for referrals and schedule an appointment with a couple of them to get to know them.

You’ll also want to visit their website, see what homes they’ve helped buy and sell recently, and what special qualifications they have, such as continuing education, special certifications or industry awards. Ask about their marketing plan, information about the current market where you plan to buy a home, and see if their communication style complements or conflicts with your own. When you’ve found a good fit, you’ll know!

How do I find a lender?

There are many entities that provide mortgage loans – traditional banks, credit unions, savings and loans, private mortgage companies and government-approved lenders. You can work directly with a lender, or work with a mortgage broker who will charge a fee to help you shop for the mortgage that best meets your needs. To choose the best option, I recommend you get referrals from family and friends and from your Realtor®. Then choose a few lenders to talk to. Ask what mortgage options they can offer, the price range of fees, time line to close, interest rates, etc.

In future posts, we’ll address other commonly asked questions.

 

Do I Need Perfect Credit to Buy a Home?

The short answer is no. You don’t have to have perfect credit to buy a home, but you do need good credit. In May, the average FICO score for a conventional mortgage loan was 757. The average FICO score for an FHA loan was 688, so there is some flexibility there. Need a little help boosting your score before you buy a home? Check out “7 Tips for Improving Your Credit Score.”

Do I need perfect credit to buy a home?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10 Ways to Prepare for Home Ownership

Whether you are just starting out or starting over, preparing to buy a home can be overwhelming. Here Realtor® magazine breaks down preparing to own a home in 10 manageable steps.

  1. Decide what you can afford. Most people target two to three times their gross annual income as a benchmark.
  2. Develop your home wish list. Prioritize features on the list.
  3. Choose your location. Start with three or four neighborhoods that interest you.
  4. Start saving. Banks ideally want 20% of the purchase price as a down payment, but this varies. [FHA minimum down is 3.5% And in this buyer’s market I can usually get the buyer’s closing costs paid… approx. 3%, typically] In addition, you’ll want to plan for closing costs which range from 2 to 7% of the home’s price.
  5. Know your credit score and correct any credit errors.*
  6. Determine how much of a mortgage you qualify for.*
  7. Get pre-approved by a lender.*
  8. Consider other sources to help with the down payment (borrow from family, government or down payment assistance programs, retirement plan savings, etc.).
  9. Calculate the costs of homeownership. Include your mortgage, property taxes, insurance, maintenance, utilities, association fees, etc. to set an accurate estimate.
  10. Select an experienced Realtor® to guide you through the process.

*Your lender can help with items #5, 6 and 7 above. Not sure where to begin? Contact me. I’d be happy to provide a referral to a lender that fits your situation.

And, of course, if you questions about ANY of these steps, please contact me. I’m happy to help.

Working for you,

Marti Reeder
Named “Best of Kent” Realtor 2008, 2009 & 2010
Named “Five Star Real Estate Agent” by Seattle Magazine