Tag Archive for first time home buyer programs

13 Aug 2013
Real Estate

When Will We See More Listings?

          

When will we see more listings in the Greater Seattle area?  This has been a major question on many first time home buyers minds.  In the housing market decline many home owners lost enough of their equity position that they ended up under water, or owing more on their mortgage than the house was worth.  This often prevents them from selling.

Is this still the case with many home owners?  This equation is definitely changing due to all the appreciation we have seen in the Greater Seattle area.  Depending on the demographic that you’re looking at, many areas values are about where they were in 2006.  If prices continue to rise we may get to 2007 levels at the end of 2013 or early 2014.

Will this cause more home owners to list?  This definitely could be the case.  Many economists speculate that there are a lot of home owners that either bought or did a cash out refi in 2006-2007, that would really like to sell but won’t be able to until values reach these prior year levels.

Should first time home buyers wait until there’s more available inventory to buy?  That really depends on your specific situation.  If you wait for more inventory, it’s quite likely home values and interest rates will continue to rise.  However, if you currently have room to afford more house and aren’t concerned with being priced out of the market, waiting might help you find a home that better fits your needs.

Don’t make the biggest financial decision of your life without getting educated!  If you’d like to find out more about todays current housing market or the home buying process in general, please go to our Calendar/Reservations page and register for one of our FREE First Time Home Buyer workshops.

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16 Jul 2013
Real Estate

What’s a Buyer Letter?

What’s a buyer letter?  A buyer letter is a short letter from the buyer written to the seller.  It simply gives a short description of the buyer(s) and explains their interest in the seller’s home.  In the recent months we’ve seen many first time home buyers utilize this tool.

Do I have to submit a buyer letter?  You definitely don’t need to submit a buyer letter.  Some buyers don’t want to disclose their personal situation.  However, especially in many first time home buyer demographics where we’re seeing multiple offers and bidding wars, buyer letters can really make a difference.

Doesn’t the seller just care about the purchase price?  Not necessarily.  To most sellers, selling their home is more than just a financial transaction, it’s also an emotional process.  Many sellers may be drawn to a specific buyer that they can relate to, may it be through their hobbies, families or career paths.  Also, many sellers may feel for first time home buyers just starting out.

Are there any down sides to writing a buyer letter?  Generally, no.  There is no cost or down side to writing a letter to the seller.  It takes five minutes of your time, and we suggest all first time home buyers utilize this strategy.  Just keep it to a couple paragraphs, as the seller doesn’t necessarily need to know your life story.

Don’t make the biggest financial decision of your life without getting educated!  If you’d like to learn more about the first time home buyer process in general, please go to our Calendar/Reservations page and register for one of our FREE First Time Home Buyer workshops.

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09 Jul 2013
Real Estate

King County Home Prices Up 12.5% YOY!

Are King County home prices still on the rise?  Yes, King County home prices are up 12.5% year over year.  We posted a similar blog back in Jan of this year which reflected a 20% YOY increase.  So these recent numbers are not quite as dramatic, but we’re still definitely in a quickly ascending housing market.  Especially in the first time home buyer demographic.

Why are prices rising so quickly?  The recent Seattle Times article stated several reasons including drastically low but rising interest rates, along with super low levels of inventory.  Another reason cited was a moderate level of 5% unemployment due to large companies in the area hiring such as Google, Amazon and Microsoft.

Are prices going to keep rising at this pace?  It’s hard to say for sure, but prices may start to taper off towards a more historical rate of around 5% per year.  One of the other reasons not directly mentioned in the article is that affordability, especially as it relates to rent, is still very attractive.  Once you take into consideration the tax benefits involved in owning it’s actually about the same monthly expense to own a home as it is to rent.  As long as this equation holds true, prices and the housing market will stay strong.

Is it even still worth buying if you’re a first time home buyer?  Because of the previously mentioned affordability factor, owning a home still makes a lot of sense for many first time homebuyers.  Even as prices rise and interest rates rise and the affordability of homes moves away from rent, it will still make sense for many first time home buyers.  Even if it costs a couple hundred dollars more a month to own than rent, the mortgage payment still stays fixed for 30 years until it goes away.  Rent on the other hand will always be there, and will continue to increase in the long run.

Don’t make the biggest financial decision of your life without getting educated!  Buying your first home may not be for everyone, it really just depends on your personal situation.  If you’d like to get more information on the home buying process in general, please go to our Calendar/Reservations page and sign up for one of our FREE First Time Home Buyer workshops

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04 Jun 2013
Mortgage

Home Advantage Down Payment Assistance

          

How much Down Payment Assistance can I get with Home Advantage?  This depends on the price of the home and lending guidelines.  Home Advantage provides down payment assistance up to 4% of your loan amount.  So if your loan amount was $200,000, you would potentially be eligible for $8,000 in down payment assistance!

Do I have to pay the Down Payment Assistance back?  The money would have to be paid back eventually, but there is NO monthly payment and ZERO interest!  You would repay the down payment assistance when you either sell the home, rent it out, or pay off your 30 year mortgage.

What loan programs can be used with Home Advantage?  Almost any loan program can be paired with this down payment assistance program, including Conventional, FHA, USDA, and even VA loans.

Is Home Advantage any different than other Down Payment Assistance programs?  Yes.  The rates are much better than other programs that have been offered by Washington State in the past.  Also, for this down payment assistance program you DO NOT have to be a first time home buyer AND it can be paired with the MCC program!  This is unprecedented as in the past most programs have only been available to first time home buyers and could not be paired with the MCC.

Is Home Advantage right for everyone?  Everybody’s personal situation is different.  To find out more about Home Advantage guidelines, as well as other down payment assistance programs offered by the state, go to our Calendar/Reservations page and sign up for one of our FREE First Time Home Buyer workshops.  Don’t make the biggest decision of your life without getting educated first!!!

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07 May 2013
Real Estate

Is Cash Really King?

Is cash really king in the Seattle real estate market?  Yes, cash has been fairly dominate in the Seattle real estate market for at least 12 months now.  We’ve especially seen a strong presence of cash buyers in the entry level first time home buyer market in the surrounding area, representing anywhere from 50-75% of the overall buyer pool depending on demographic.

How are first time home buyers paying all cash?  It’s more likely that this make up is comprised of institutional, small time and foreign investors.  Also, we have seen many situations where a first time home buyer’s parents may give them a loan to buy their first home and charge them a standard market 4% interest rate, as it gives them a much better return than say leaving the money invested in CD’s or the bond market.

How does this affect first time home buyers?  Competition is already stiff in the Seattle real estate market due to an influx of buyers and very few homes for sale on the market.  Cash buyers are generally given preference by sellers because this type of buyer can close very quickly, generally doesn’t require an appraisal or inspection, and doesn’t have to worry about meeting underwriting guidelines to receive a loan.  So it can be very difficult for first time home buyers to compete in this arena.

Is there any way first time home buyers can compete with cash buyers?  Yes, but it can be tricky.  First time home buyers can employ many different strategies including; conducting a pre-inspection, waiving their financing contingency, using an escalator clause, offering more earnest money, and much more.  However, it is important to understand before using any of these strategies, that they each come with pros and cons.

Don’t make the biggest financial decision of your life without getting educated!  If you’d like to find out more about competing with cash buyers or about the home buying process in general, please go to our Calendar/Reservations page and sign up for one of our FREE First Time Home Buyer/Down Payment Assistance workshops.

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