Interested in buying?
Right now I am sure you are aware that the amount of inventory (homes for sale) on the market is much less than the amount of buyers in the market. Seattle is hot right now. Portland is hot right now. California is hot right now! But that doesn't mean you don't have an opportunity to buy the place you want.
People always ask me what the best steps are to take when getting ready to buy their next home in this market. The first step is to be confident and know you want to buy. Teetering between certainty and uncertainty doesn't help in this marketplace. In fact, going into an offer situation with cold feet or a contingency plan to back out because you changed your mind is not the best idea. Whether it be a town house in Ballard or Fremont, a condo in Queen Anne or Capitol Hill or a single family home in Wallingford or Madison Park - you need to be confident the time is now for you to buy. Your offer won't be taken serious if you write an offer and are not confident that you want the home. This mean you have to be ready to go in making a quality offer.
How do you make a quality and competitive offer?
It may be wise to get pre-underwritten approved by a reputable and local bank. What that means is that you have all your financing in order, have run through various Total Cost Mortgage Analysis with your lender and know exactly what it takes to close on the house you want. You also need a good real estate agent who knows and understands the market and can give you expert advice. Making an offer is more than just putting together a Purchase and Sale Agreement contract. Rely on the experts who are out viewing homes, searching for homes and understand the market analytics in neighborhoods you want to live in. Click Here to find out what you need to get started on your loan approval.
Financed buyers are winning in multiple offer situations all the time. These buyers aren't all cash buyers. These are people who are putting 3, 5, 10, 20 and more percent down on homes. They are closing quickly, on time and getting in homes they love.
If you want to learn more about how to get your offer accepted give me a call, shoot me a text or just email me and we can discuss your options.
Need To Know Information:
There seems to be a natural progression in life that goes a little something like this: schooling, working, marrying, moving/buying, bearing, living, retiring, vacationing, settling, dying. That may sound a little dark and there are certainly deviations from the norm and you might have more to add to this timeline. You are probably thinking to yourself, “what does this have to do with purchasing a home or refinancing your existing home?” Well there is a lot of talk about this new generation of home buyers out there. Everyone is coming out of the proverbial basement of their parent’s home and getting ready to buy. Those that weren’t in the basement or still fit this ‘up and coming’ generational description are also debating on the timing of home ownership for various reasons. I am not here to tell you it’s now or never. But, there are some very interesting facts out there about the possibilities of home ownership and I guess we could assume we are at the ‘marrying, moving/buying’ stage in the natural life progression since the average age of men marrying is 29.2 and women is 27.1 in 2015. Plus, the average age of first time home buyers in 2014 was 30.
Some interesting facts to note that you might not be aware of:
In Washington there are three different loan pools to qualify in and all have their own unique financing requirements.
Conventional loans ranging from $0-453,100 in loan amount.
Conventional High Balance loans ranging from $453,101 to $667,000.
Jumbo Loans ranging from $667,001 on up.
VA Loans - Talk with Chris
FHA Loans - Talk with Chris
There are many different loan products available to buyers including but not limited to the following:
Fixed rate mortgages, available in a variety of terms
5, 7, 10,15 Year Adjustable Rate mortgages
HELOCS - home equity lines of credit
FHA reduced their monthly mortgage insurance premiums by .55%. That is about a 40% decrease in monthly mortgage insurance costs with FHA mortgages OR on a $200,000 loan that is savings of about $130/month!
I don’t know where rates are headed but what I do know is that the best way to find out what you qualify for is to set up an in-person or on the phone consultation with me. Rates are low right now.
Fact. If rates go up 1% then your purchasing power changes significantly (about 10%).
Rates will go up. There is no doubt about that. We’ve seen historical lows since 2012. The good news is that the average interest rate over the last 30 years is about 9% and rates are still lower than the average.
There are numerous different ways to qualify and you might already be there.
There are many different ways to handle mortgage insurance and Chris will put together a cost analysis for you to help you decide what makes sense financially.
If you don't find a home within 120 days from the start of your application that is OK.
Your approval will still be good so long as your overall profile has not had any large changes. You will need a new credit report though once the 120 days is up.