Tag Archive for first time home buyer Seattle

06 Jan 2014
Real Estate

Should I Hire Multiple Realtors?

Should I hire multiple real estate agents when buying a home?  We run into this question a lot.  Generally, the answer is, “No, you shouldn’t.”  Working with more than one agent usually does you more harm than good.  If you’re looking in two DRASTICALLY different areas, say Seattle and Tacoma, it may make sense to work with different agents from respective areas.  But if you’re mostly looking in the same general geographic area, there’s usually no real benefit.

But my dad said you should always work with as many agents as possible!  Many people think by using multiple agents, they’ll have access to more listings.  This may have been true decades ago, before the internet was invented.  But now a days, most listings are in the MLS and therefore online, so any agent you hire should have access to all available listings.

But if I don’t have to pay my agent for their time, how can it hurt to hire several?  Some people feel that pitting multiple professionals against each other will make them work harder.  It actually tends to be the opposite.  If everyone involved knows you might buy from someone else, they may just try to make a quick sale and sell you the first thing you see.

So if I can find listings online, why should I work with an agent at all?  An agent should be doing much more than showing you homes.  They should be educating you as to whether or not the home is a good investment, structurally sound, will have good resale value, etc, etc, etc.  This is a big decision and you need to align yourself with a professional that will have your best interest at heart.

So how do I know which real estate agent to work with?  You should talk to more than one professional.  Learn which questions to ask to ensure that the person you ultimately hire is the right one for the job.  Like any industry, there are awesome people in the real estate field and lame ones.  Make sure you pick the right one.

Don’t make the biggest financial decision of your life without getting educated!  If you’d like to learn more about how to hire the best real estate agent for you, 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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09 Dec 2013
Real Estate

Is Winter a Good Time to House Hunt?

Is winter a good time to house hunt?  Many first time home buyers ask us when the best time to search for a home is.  The honest answer is, there can be pros and cons to shopping during any time of the season.  It really comes down to your personal situation.

Will I have less competition in the winter?  Many first time home buyers don’t want to house hunt during the holidays.  So if you’re willing to undertake your search during this time, you will most likely have less buyers to compete against.

Are there any down sides to shopping in the winter?  Absolutely!  Just as many first time home buyers don’t want to buy during the holidays, many sellers also don’t want to sell during the holidays.  So even though you may have less competition, you’ll probably also have less to chose from as well.

So when should I buy?  It really depends on your situation AND your specific housing market.  You should start looking for a home, when it makes sense for you.  Also, you should be consulting with a real estate professional about YOUR SPECIFIC MARKET!  It is possible to have less buyers and more sellers in the winter in one demographic, and the exact opposite ratios at the exact same time of year in another demographic.

Don’t make the biggest financial decision of your life without getting educated!  If you’d like to gather more information about when to buy in your area, 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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27 Nov 2013
Real Estate

I Want an Ugly House for Christmas

I want to buy an ugly house.  We hear this from a lot of first time home buyers.  It’s generally an approach for people that want to be in a particular neighborhood, but are constrained by price.  So they look for an ugly house so they can get a better deal and do repairs after closing.  This can be a fantastic idea as long as you know what you’re getting into.

What do I need to know?  Even if you’re a contractor or just very handy, banks generally won’t lend money against a house that has structural issues.  Because of this, first time home buyers may want to narrow their search to only include properties that need cosmetic repairs as opposed to structural repairs.  If you’re considering a rehab loan, they have a lot of other caveats so we’ll save that discussion for another blog.

So I’ll just target cosmetic fixers then.  Hold on now, it also depends on what type of financing you’re using.  FHA can be a great option for first time home buyers.  However, they are often more stringent in regards to property condition than conventional loans.  So if you’re using an FHA loan, you could be excluded from buying cosmetic fixers with minor issues like pealing paint, or even a broken window pain.  This is why it’s imperative to align yourself with a real estate professional that understands the different types of financing guidelines.

If the bank won’t loan me the money, then I’ll just find another house.  It’s usually true that if the bank won’t give you a loan (depending on how the contract’s written), you can exit the contract and retrieve your earnest money.  However, there are some upfront costs involved like paying for a home inspection and ordering the appraisal, that have to be paid regardless of whether or not the loan closes.  This amount is generally some where between $1200-1500!  You don’t want to have to pay this money up front unless you’re pretty confident you can get the loan.

Don’t make the biggest financial decision of your life without getting educated!  If you’d like more information on buying a fixer, or 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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12 Nov 2013
Mortgage

What are USDA Loans?

What is a USDA loan anyway?  USDA loans are specifically designed for purchasing homes in rural areas.  Some of the areas in Western Washington that are considered rural by USDA guidelines may surprise you.  In many cases first time home buyers looking for the suburban lifestyle are finding themselves purchasing homes in areas that can utilize USDA financing.

So what are some benefits of using a USDA loan?  Well, USDA’s monthly mortgage insurance is only one third of what FHA’s monthly mortgage insurance premium is.  Also, the interest rate for a 30 year fixed loan is lower with USDA than it is with standard conventional financing.  Another huge benefit for many first time home buyers is that with USDA, you can secure that low rate and the low monthly mortgage insurance with absolutely NO down-payment.  That’s right $0 down, so you can keep more money in your pocket!

What else do I need to know about the USDA loan?  First off, there IS an up-front Mortgage insurance premium that will be added to the loan amount of your 30 year fixed loan.  This up-front mortgage insurance is 15% higher than the FHA’s premium.  The next thing to know is that the monthly mortgage insurance, like FHA, will last for the life of the loan.  An additional major factor to consider is that there is a household income limitation.  Bottom line, there are a lot of different factors to consider.

Don’t make one of the biggest financial decisions of your life without getting educated!  If you would like to gather more information about down payment options or the first time 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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24 Sep 2013
Mortgage

Minimum Down Payment Change Ahead

          

What is the minimum required down payment anyway? If you have your financing plan structured with your lender before November 16th 2013, on a conventional loan the minimum is 3% of the purchase price.  That means a $10,500 minimum down-payment for a $350,000 home.  If you don’t have your financing structured with a diligent professional lender before that date, your minimum down payment for a conventional loan will be 5% ($17,500 for that same purchase price).

How do I get my financing plan structured to avoid the minimum going up on me?  In order to ‘lock in’ the possibility of a 3% down-payment you will need to work closely with a lender who will secure something called “DU findings” from Fannie Mae on your behalf.  He/she will do this by gathering all of the pertinent information and documentation, pulling your credit report, and putting your exact scenario into Fannie Mae’s system.  If you have an acceptable scenario for a 3% down-payment before November 16th and make your way into Fannie Mae’s system, you will be able to continue shopping for houses past that date and be ‘locked in’ to the 3% down-payment structure.

Are there any other options for keeping my minimum down payment as low as possible?  The two alternative and most readily available options in keeping your down payment as low as possible will be securing FHA financing, or utilizing a down payment assistance program such as Home Advantage.  Both of which have advantages and disadvantages when compared to the standard conventional financing structure.  To learn more about these programs view: FHA vs. Conventional and Home Advantage DPA.

Don’t make one of the biggest financial decisions of your life without getting educated!  If you would like to gather more information about down payment options or 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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