Category Archives: Financial Tips for Home buyers

Short and Sweet Real Estate News.

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Mortgage rates fall to 2-month low after Fed announcement

  

Rates on 30-year fixed-rate mortgages dropped to a two-month low this week following a recent announcement from the Fed that it would not begin to wind down its bond-buying program.
Rates on 30-year fixed-rate loans averaged 4.32 percent with an average point of 0.7 percent for the week ending Sept. 26, down from 4.5 percent last week but up from 3.4 percent a year ago, according to Freddie Mac’s latest Primary Mortgage Market Survey.

“Mortgage rates fell following the Federal Reserve announcement that it will maintain its bond-buying stimulus,” said Frank Nothaft, Freddie Mac’s vice president and chief economist, in a statement. “These low rates should somewhat offset the house price gains seen the last number of months and keep housing affordability elevated.”

Rates on 15-year fixed-rate mortgages, five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans and one-year Treasury-indexed ARMs also fell.

Pending Home Sales, down 1.6% for August. Observers said rising interest rates were partially to blame for the dip in this measure of contracts signed but not yet closed on existing homes. But national average mortgage rates have dropped the last two weeks with the Fed’s announcement it would continue buying mortgage bonds, which should boost bond prices and keep rates low. Also helping us persevere is the fact Pending Home Sales are still up 5.8% for the year.

Further encouragement came from single-family New Home Sales, up 7.9% in August and 12.6% year-over-year. They’re now at a 421,000 annual rate, not where they need to be, but rebounding strongly. There were also signs of continued success for home prices. The S&P/Case-Shiller 20-city home price index was up 0.62% in July, its 18th consecutive monthly gain, with all 20 metros ahead. Its 12.39% annual gain was its biggest since early 2006. The FHFA price index of homes financed with conforming loans was up 1% in July, also gaining 18 months in a row, and up 8.8% annually.

Source: Freddie Mac

http://www.snohomishcountyhomes4u.com

USDA Zero down program is disappearing for Home Buyers!!!!

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Current Map

Wow this is definitely the year for Real Estate news! Yesterday I brought you news on Short Sales and today its one of my favorite programs for helping families get into a home with virtually ZERO down and is a perfect loan for First Time Home Buyers.

Check this out: Effective October 1, 2013, the  USDA will be imposing their revised property eligibility changes as a result of the 2010 Census findings (unless Congress extends the date which has happened twice now).

This is going to prevent several families from buying right now and it’s hard for me to see changes such as the one’s proposed as it almost eliminates entire areas that once qualified for USDA financing. For example, above is the current eligibility map and with this change much of Lake Stevens, Marysville and Arlington will not qualify as of October 1, 2013.

Here is a link that you can use to search property addresses, or look at regions that may be affected by the proposed changes. 

If you, or you know of someone, wanting to start looking for a home using the USDA program please have them get in contact with me. I have several great lenders I use that can get you pre-qualified and we can start looking right away. If we get in a contract before October 1st and they do change the boundaries you most likely can be grandfathered in but, the sooner the better!!

Sellers who currently live in these areas you should also take note if you are thinking of listing do it ASAP! Expanding your buyer pool keeps you competitive and sells you home quicker!

As always, please feel free to call me directly with questions – (425)422-7243.
www.snohomishcountyhomes4u.com

http://www.snohomishcountyhomes4u.com

Know of anyone thinking of a Short Sale?? Important changes coming.

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I am a Short Sale negotiator but I am not a lawyer and cannot give legal advice so for my short sales I team up with a law firm which has worked out great for my sellers. I thought I would share one of their most recent law updates with you as so many people do not realize the changes that are coming their way.  If you, or you know of someone, that is thinking of a short sale send them this information and tell them to get in touch with me so we can help.  Its a long read but remember from a Law firm and great info!

WE ARE AT THE TIME OF YEAR THAT WE REALLY NEED TO FOCUS ON THE ISSUE OF FORGIVENESS OF DEBT TAX

I am not convinced that Real Estate Professionals are taking this type of tax into enough consideration as we progress through the rest of 2013. Heck it’s almost over as far as a typical short sale is concerned.

This is a real tax and a tax that needs to be analyzed with each and every seller with whom you encounter. I am concerned as I hear real estate professionals consistently talk of the end of the year as a deadline for the special law that eliminates the tax for many taxpayers, but not for everybody.

I DON’T THINK WE HAVE BEEN SERIOUS ENOUGH IN BRINGING THIS ISSUE TO SELLERS’ ATTENTION

This is a tax law that has allowed many homeowners to escape thousands of dollars of tax liability based upon their meeting certain criteria.

In my practice of dealing with distressed homeowners, THIS IS A HUGE MATTER each time I meet with a seller. It is an important matter handled in each and every consultation. Not all sellers qualify for the exception. I am concerned as some are Brokers are sloppy and have it apply to almost everybody. It was not designed to protect everybody or even benefit everybody.

THIS SPECIAL TAX BENEFIT HAS A HIGH LIKELIHOOD OF ENDING THIS DECEMBER 31ST!!!

I don’t like to always bring up fear, but if I am advising clients that may qualify for this rule I am advising them to take advantage and SELL SHORT RIGHT NOW as it becomes more dangerous as we get closer and closer to the end of December. As we often say: “There is nothing short about a short sale”.

I am not convinced that it will be extended. Frankly, I fear that it won’t  and I think, as a result, that I would encourage taking short sale action NOW as opposed to waiting until later on this year. A word to the wise.

I ALWAYS TALK TAX WITH EVERY DISTRESED HOMEOWNER I MEET

Now as we are already almost into September, this whole subject takes on new importance. I am writing this message today to make sure that you Brokers out there are taking this tax matter seriously. TODAY…….NOT FOUR MONTHS FROM NOW!!!!!

Why worry, you say, about something happening four (4) months from now? You should worry. You should plan now and change your methodology dramatically for the rest of this year.

I AM ENCOURAGING SELLERS TO ENGAGE “NOW” IN THEIR SHORT SALE… NOW IS A TIME NOT TO WAIT

So we are suggesting that sellers really engage and start moving forward and listing and selling. It makes good sense if they want to take advantage of the forgiveness of debt tax before the end of the year. You have to get going now to make sure the deal gets closed before the end of the year. In fact, that is asking for a lot to happen in a very short time. As we all know, there is nothing short about a short sale.

A SHORT “CLIFF NOTES VERSION” OF THIS TAX RULE

Every real estate licensee out there that is talking with any distressed homeowner about doing anything for those folks has to at least know that this tax exists. It’s simple really, but most sellers have no clue about it and, frankly, don’t understand it at all.

I see their eyes glazing over every time I bring it up to a typical client, but I get their attention when I tell them the tax is easily over $28,000.00 unless they pay close attention. They wake up immediately. You see that is the tax on $100,000.00 of debt forgiveness, which is a pretty typical amount in our practice. That is a serious tax consequence. Have you thought about that in relation to that listing you just took?

I tell short sale sellers that in most cases we are able to have an exception because of special rules that assist homeowners who have lived in their primary residence property for a prescribed period of time. There are exceptions, but in many cases THEY CAN TOTALLY AVOID THAT TAX AND DO A SHORT SALE!!

EVERY SHORT SALE ALWAYS PRODUCES SOME DEBT FOREGIVENESS [YOU CAN COUNT ON THAT!!]

You can count on debt forgiveness in every short sale. It comes with the territory. The key factor is whether it will adversely affect your seller or not. In many cases it won’t. However, one has to go through that tax law with a fine tooth comb and account for each and every refinance that your sellers did on their home during their time of ownership. Many used their property as cash registers!!! We do all those calculations in our consultation.

I have to tell all of you that tax advice is not part of your license as a real estate professional and I am happy to give you information in this outline of the tax law. I am NOT suggesting that you all go out and apply it to your sellers’ situation. There are a lot of traps for the unwary here folks.

EVERY CONSULTATION MY ATTORNEYS CONDUCT INCLUDES TAX ADVICE…REMEMBER NOT ALL ATTORNEYS INCLUDE TAX ADVICE

It’s part of what we do. We discuss tax matters in everyone on of our $150.00 Consultations. So you don’t have to send your seller to their CPA. We can handle that AND include all the law and credit aspects as well.

An integral part of our practice is tax. We attorneys are happy to talk tax. Be cautious as many attorneys do NOT include tax as part of their consultations, and as a result, your client has to also see a CPA or tax accountant. We are a one stop shop.

NOW IS THE TIME TO PLAN…WHAT HAPPENS IF THE CONGRESS DOES NOT FURTHER EXTEND THIS FAVORABLE TAX TREATMENT?

This favorable tax law that allows your clients to avoid this tax on debt forgiveness expires in about four (4) months on December 31st. I monitor this daily through our Bar Association Committee on Taxation back in Washington, D.C. Very little is happening on that front and conventional wisdom indicates that there is a likelihood of this tax law NOT being extended!!

We need to prepare now. We need to change the “talk track” you have with your sellers. Sellers are coming in to me now with this issue on their mind as many have been informed by others about the adverse consequences if the tax law goes out of existence at the end of the year.

HECK….WE ARE ALREADY DOING IT!!!! WE ARE PREPARED ALREADY

You see, F.H.A. deals take a long time. For us they typically are about a year from the first meeting with the seller and the day of closing. They are government deals and they take a long time in most cases. So I am talking tax to folks who are asking what is going to happen if they don’t pass that law.

WE HAVE ANOTHER TAX LAW…THIS ONE WILL NOT EXPIRE ON DEC. 31ST!!!

Some of you have heard about it. Most haven’t. Don’t feel bad. It is kind of the domain of attorneys and CPA’s. It can get a bit complicated and it requires some credentials that are really beyond the scope of your license out there my friends, but I want you all to be aware that it exists and then get your seller in for a consultation with one of our attorneys and we are happy to go over all their tax issues.

THE INSOLVENCY EXEMPTION FROM THE INTERNAL REVENUE SERVICE IS AN INTEGRAL PART OF OUR TAX PRACTICE

This exemption has been a part of the tax code for a long time. This exemption does NOT expire on December 31st. This exemption is useful even if your seller is not occupying the subject short sale property.

We ALWAYS go over the insolvency exemption when it applies in each of our consultations. We have a whole raft of literature including worksheets and the like to allow sellers to feel comfortable EVEN IF the Congress sits on its hands and does nothing.

Thanks as always to McFerran Burns and Stoval for the great info!

Competition among home buyers Fierce!

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News from NW Multiple Listing Service

FOR IMMEDIATE RELEASE: June 5, 2013

Competition among home buyers “still fierce;” rising interest rates adding to fury

NWMLS, Kirkland, WA, June 5, 2013 – Well-priced homes continue to draw multiple offers and sell at a brisk pace around Western Washington as buyers react to increases in interest rates and asking prices.

Northwest Multiple Listing Service reported double-digit gains in several key indicators it tracks for the 21 counties in its service area. Compared to a year ago, the number of new listings climbed 16 percent, pending sales increased about 10 percent, closed sales jumped nearly 22 percent, and prices rose more than 13 percent. Despite gains in listing activity, inventory remains tight.

Commenting on the latest report, brokers said the fast pace is frustrating some buyers — and surprising sellers with unrealistic expectations. One broker cautioned against an overheated market. “We do not want a market that escalates too fast and topples again,” commented Frank Wilson, Kitsap district manager at John L. Scott Real Estate and branch managing broker for its Poulsbo/Kingston office.

“Overly aggressive sellers find themselves disappointed when no or low offers are presented,” remarked Northwest MLS director Kathy Estey, the managing broker at John L. Scott in downtown Bellevue.

With inventory apparently improving, some would-be buyers are staying on the sidelines. The increased inventory is “cooling some buyers,” reported George Moorhead, managing broker at Bentley Properties in Mill Creek and a member of the MLS board of directors. “We also have buyers who are stepping back as they are frustrated with current inventory and multiple offers going well above asking price,” he added.

Inventory showed signs of improving with the addition of 11,445 new listings during May, the highest number since April 2010. May’s total outgained the year-ago figure of 9,861 new listings for a 16 percent gain.

“It has been refreshing to see more listings coming on the market, but with overall inventory remaining low the competition among buyers is still fierce for homes that are priced properly,” commented Estey.

At month end, there were 21,943 total active listings in the Northwest MLS database, a drop of 4,248 from the same time a year ago for a decline of more than 16 percent.

Buyers looking for condominiums will find slim pickings. Condos currently account for only about 10 percent of the available inventory. The area-wide selection, which numbers 2,253 listings, is down more than 26 percent from a year ago.

Brokers reported nearly as many pending sales system-wide (10,045) as new listings (11,445). Nine counties reported year-over-year gains in pending sales that exceeded 30 percent (Clallam, Cowlitz, Ferry, Grant, Grays Harbor, Island, Kitsap, Lewis, and Okanogan).

Most metro area counties had more modest gains in pending sales: King (up 6 percent) Snohomish (down 5.8 percent) and Pierce (up 10.6 percent).

Closed sales continue to track well ahead of a year ago. During May, members tallied 7,349 completed transactions, outpacing the year ago total of 6,027 by nearly 22 percent.

Prices jumped 13.4 percent from twelve months ago, rising from an area-wide median selling price of $242,500 to last month’s price of $275,000. The median price for homes and condos that sold in both King County and San Juan County was $375,000 ($100,000 higher than the area-wide figure). In King County, that represented a gain of 15.4 percent, while for San Juan County prices edged up only about 1.8 percent compared to a year ago.

“We’re seeing the trajectory of home prices beginning to soften and the number of days on the market decline,” observed Mike Grady, president and COO of Coldwell Banker Bain, adding, “The trends suggest inventory levels are slightly more sustainable, but we’re still clearly in a seller’s market. For the foreseeable future, buyers will continue to pay more the longer they wait to purchase a home.”

Frank Wilson, who is also a board member for Northwest MLS, said recent market activity is affecting home values. In Kitsap County, where his office is located, brokers added 575 new listings to inventory during May, improving on the year-ago total of 515. During the same period, MLS members reported 567 pending sales to soar past the year ago figure of 414 sales for an increase of nearly 40 percent. Median selling prices in Kitsap County rose 5.3 percent, from the year-ago figure of $228,000 to $240,000.

“Slow and steady is the key here,” Wilson cautioned, while also raising concern about low appraisals, which he described as the “inchworm effect” of the market. “As prices begin to appreciate we will continue to see challenges with low appraisals,” he predicted.

Moorhead said increased activity is very noticeable, with mixed outcomes. “We are seeing multiple offers at 5-to-12 percent over list price in highly sought-after areas,” he reported, but also noted “there are other homes on the market that are not selling with no real reason why.”

Some brokers also commented on rising interest rates.

Wilson said the biggest effect of the upswing in the real estate market has been the erosion of a buyer’s buying power. In May alone, interest rates jumped almost 0.75 percent, he noted, which reduces a buyer’s ability to purchase a $350,000 home by almost $31,000. Coupled with an increase in price, he said it “creates a compounding affect, which will frustrate buyers in today’s market.”

Estey said interest rate increases are “adding fury to the already frenzied buyers who must finance their purchase.”  A one-half percentage point increase in interest rates reduces buying power by 5 percent, she explained, adding, “so as prices increase about a percentage a month, the feeling of urgency mounts too.”

Commenting on the challenges buyers are encountering, Estey said, “The joy of buying a home in today’s market is in the long-term result of settling in, but the competitive process is sometimes not so joyful! Hiring the right broker who can add some fun elements and insights while wisely guiding buyers through the decision process can make a huge difference,” she suggests.

Federal officials are downplaying rising interest rates. In a recent interview, Frank Nothaft, Freddie Mac’s chief economist, commented on the latest rise that marked three consecutive weeks of increases. “While this may slow some of the refinance momentum, rates are nonetheless low and home-buyer affordability high, which should further aid home sales and construction in coming weeks,” he remarked, adding, “The rates are also lower today than they were a year ago at this time.”

Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership includes more than 21,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 21 counties in Washington state.

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Statistical summary and sources quoted follow.

Statistical Summary by Counties: Market Activity Summary – May 2013

Single
Family
Homes
+ Condos		 LISTINGS PENDING
SALES		 CLOSED SALES MONTHS
SUPPLY
New
Listings		 Total
Active		 # Pending
Sales		 #
Closings		 Avg.
Price		 Median
Price
King

4,352

4,832

4,041

3,122

$457,903

$375,000

1.20
Snohomish

1,564

1,777

1,487

1,131

$309,112

$285,000

1.20
Pierce

1,576

3,025

1,648

1,116

$234,875

$210,000

1.84
Kitsap

575

1,426

567

345

$286,870

$240,000

2.51
Mason

206

759

94

71

$178,045

$149,900

8.07
Skagit

245

785

226

149

$238,902

$220,020

3.47
Grays Hrbor

165

807

114

68

$143,411

$139,000

7.08
Lewis

187

700

90

74

$150,977

$134,500

7.78
Cowlitz

164

455

134

83

$174,330

$169,000

3.40
Grant

145

547

92

76

$169,412

$157,840

5.95
Thurston

506

1,121

482

332

$241,093

$225,500

2.33
San Juan

67

415

25

19

$519,047

$375,000

16.60
Island

279

834

199

117

$281,624

$240,000

4.19
Kittitas

150

447

66

60

$285,393

$217,995

6.77
Jefferson

123

466

53

40

$308,200

$298,750

8.79
Okanogan

114

447

48

28

$193,686

$147,950

9.31
Whatcom

552

1,448

398

279

$290,196

$250,000

3.64
Clark

83

149

69

54

$255,812

$229,000

2.16
Pacific

91

436

36

27

$136,736

$121,000

12.11
Ferry

11

76

4

5

$139,600

$151,000

19.00
Clallam

104

415

68

62

$191,923

$181,000

6.10
Others

186

576

104

91

$217,902

$179,900

5.54
MLS TOTAL

11,445

21,943

10,045

7,349

$343,639

$275,000

2.18

4-County Puget Sound Region Pending Sales (SFH + Condo combined)
(Totals include King, Snohomish, Pierce & Kitsap counties)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2000 3706 4778 5903 5116 5490 5079 4928 5432 4569 4675 4126 3166
2001 4334 5056 5722 5399 5631 5568 5434 5544 4040 4387 4155 3430
2002 4293 4735 5569 5436 6131 5212 5525 6215 5394 5777 4966 4153
2003 4746 5290 6889 6837 7148 7202 7673 7135 6698 6552 4904 4454
2004 4521 6284 8073 7910 7888 8186 7583 7464 6984 6761 6228 5195

2005

 5426 6833 8801 8420 8610 8896 8207 8784 7561 7157 6188 4837

2006

 5275 6032 8174 7651 8411 8094 7121 7692 6216 6403 5292 4346

2007

 4869 6239 7192 6974 7311 6876 6371 5580 4153 4447 3896 2975
2008 3291 4167 4520 4624 4526 4765 4580 4584 4445 3346 2841 2432
2009 3250 3407 4262 5372 5498 5963 5551 5764 5825 5702 3829 3440
2010 4381 5211 6821 7368 4058 4239 4306 4520 4350 4376 3938 3474
2011 4272 4767 6049 5732 5963 5868 5657 5944 5299 5384 4814 4197
2012 4921 6069 7386 7015 7295 6733 6489 6341 5871 6453 5188 4181
2013 5548 6095 7400 7462 7743

__________
Copyright © 2013 Northwest Multiple Listing Service
ALL RIGHTS RESERVED
This material may not be copied, published, broadcast, rewritten or redistributed without prior permission.

Interest rates cheat sheet.

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Is 2013 the year for you to purchase a home?

Prices are going up and interest rates have just started to creep up also. If you wait take a look at the difference in payment and how it affects your buying power.  It can be a few dollars to hundreds a month and completely change the game plan on the type, style and area of a home you want to live in. I know there are always very good reasons that buyers have to wait, and we all need to have a bit more patience in general, but, if your just waiting because you feel the worst is not over and houses are going to take a dive again I can assure you it is not happening any time soon here in Snohomish and South King County. Homes for sale are very scarce and are going so fast with multiple offers. If you don’t get out there now you will soon be paying more in rent than a house payment and you can’t deduct any amount from rental payments on your taxes.

But,  your landlord can.. Ouch!

Interest Rate 3.25% 4.25% 5.25% 6.25% 7.25%
200,000
Monthly Payment $1,266 $1,377 $1,496 $1,620 $1751
Monthly Income $3,246 $3,542 $3,835 $4,155 $4,489
Hourly Pay $18.73 $20.37 $22.12 $23.97 $25.90
250,000
Payment $1,572 $1,712 $1,860 $2,015 $2,179
Income $4,032 $4,389 $4,768 $5,168 $5,586
Hourly $23.26 $25.32 $27.51 $29,81 $32.23
300,000
Payment $1,879 $2,046 $2,223 $2,411 $2,606
Income $4,817 $5,246 $5,701 $6,181 $6,683
Hourly $27.79 $30.27 $32.89 $35.66 $38.55
350,000
Payment $2,185 $2,380 $2,587 $2,806 $3,034
Income $5,603 $6,103 $6,634 $7,194 $7,780
Hourly $32.33 $35.21 $38.27 $41.50 $44.88

Hot Of The Press..Time Is Running Out for FHA!

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FHA HOT OFF THE PRESS

www.snohomishcountyhomes4u.com

Welcome to winter in Snohomish County and a serious housing shortage

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Snow

Are you looking for a home this winter? If so it could be a long wait to find that perfect one and you will need lots of patience.

Historically after Thanksgiving inventory of homes on the market are down 15%. Last year it was down 25% on average nationwide.  So far it seems that might be a pretty accurate percentage this year too. Home prices in the Snohomish County have also gone up.  For example the Northwest Multiple Listing report for the year shows some pretty good numbers.

The Bothell/Kenmore/Kirkland/Woodinville area shows in 2011 Median Price was $372,990 and at the end of 2012 $400,000.

Lynnwood/Edmonds/Mill Creek/Mukilteo areas show 2011 Median Price $299,900 ending 2012 at $339,000.

Marysville/Lake Stevens/Snohomish/Smokey Point areas show 2011 at $239,900 as the Median and at the end of 2012 $259,450

For the areas above only 620 total active listings at the end of 2012 versus 2011 with 1204. That is almost half. The majority, of course, were short sales and bank owned but it shows a definite change is happening and predicted to creep up more in the spring.

This will help more distressed home-owners who are starting to recover from delinquencies and can finally start to consider refinancing giving them some relief. It’s an important start to a healthy Real Estate Market.

Another sign of improvement is a lot of new home construction again.  I occasionally work and sit in a new home plat that is priced in the high 4K range and another in the 200K range. Buyers are coming in and all saying the same thing:  I have been looking for a while and there is not much out there.  My advice? You need a good agent that will be right on top of your search and listen to you. Don’t wait! When they tell you there is a hot one you need to go see it ASAP. And don’t be surprised if there are multiple offers. If it’s in a good location, good conditions and the right price it will go fast. I have seen bidding wars this year bringing the asking price up $10,000-$25,000. NO JOKE!  Buyers just can’t believe it when they offered 5K over asking price and they didn’t get it. Bottom line?  Offer what you will not bang your head against the wall if you don’t get it. Like the saying says “put your best foot forward” FIRST.

A few years ago you could play around a bit but, no longer, otherwise you will be putting in offer after offer and not get the house you want. Another mistake I see is many potential home-buyers thinking short sales are the best deal. NOT!  To add to this further- 3 out of 4 fail.  I know this first hand as I negotiated a short sale for a seller of mine and we had no problem getting offers; it was a great property.  The problem was 3 buyers backed out before we got bank approval and we had to start over again.  Causing major frustration for my sellers and me. You see each time I had to redo the paperwork, beg the bank to take another offer and start negotiating all over again. If you have your heart set on a home that is a short-sale you must commit yourself 100% to that home or do not waste your time. Why? Because on average you will wait 3-9 months.

Another one of my clients, a buyer, bless her heart, was the most patient client I have ever had. We put an offer on a short sale in January of 2012. She finally closed on the home in October.  The bank also came back with a higher price. They wanted 10K more than we offered. She had been waiting so long and loved the house so we went ahead and she finally got to move in before Halloween. If she had not been able to come up in price she would have had to walk because the banks final price is just that, their price. You either go for it or walk.

These are questions and scenarios that buyers must be aware of as they enter the market. I know most potential buyers search all over the web for homes. Sites like Trulia, Zillow, Realtor.com and of course my new favorite; the new and improved Remax.com but, bottom line you are getting old information. It’s great to educate yourself, see what are out there, prices in certain neighborhoods, types of home, new construction and find yourself an agent (hint,hint). I can guarantee you however, if it’s a great home a Realtor is getting their client there first or it already has an offer. Consumer websites are not always up to date. There good don’t get me wrong and some better than others but, they can’t keep up with how fast homes go pending.  I even have verbiage that I copy and paste to respond to consumers that contact me when the information is on a home that is not available. I always check on there request, of course, it just happens 9 out of 10 times the home they are asking about it not available any longer so I have a response ready. I wish it was not the case because I want to get you in and show you a home you want to see. Reality is however y re, take a need to get their first.

Well take it in stride March is coming and with the first pop of bulbs the Spring buying season pops up too with more buyers and more competition on those great homes. A lot of potential sellers are still on the fence and are going to want to make sure they’re going to break even or be able to trade up. It will be an interesting year, in my opinion, to see how it changes. I hope that rates stay low which will bring the buyers and I hope that prices do come up a bit to bring more sellers into the market.  We need to have more of an inventory which will bring stabilization of prices and more choices of homes for people.

Here’s to Spring!

www.snohomishcountyhomes4u.com

FHA Making Some Changes To Condo Rules

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FHA MAKING SOME CHANGES TO CONDO RULESEdmonds

Anyone that has tried to buy a condo knows that if you’re trying to purchase with FHA financing it may limit your choices and can cause great headaches with deals falling through and more frustration than you bargained for.

So why is this the case?

Typically a condo purchase with FHA financing means the development must be FHA approved. There are numerous boxes a lender must select to make sure it is FHA compliant and if not? Either you work with your lender and the Home owner association, which could take months to get it approved or you move on to the next one. Additionally, other types of financing tend to go along with the same guidelines as FHA and if it does not meet FHA standards it may not meet theirs either. So what is a buyer and mostly first time home buyers to do?

There seems to be some good news on the horizon that is getting attention and may help condos get sold instead of sitting vacant and then going back to the bank. Finally, it seems FHA is starting to ease up a bit. On September 13, 2012 FHA implemented some changes that will cause an easing up for prospective home owners and investors. Here are the four main financing changes:

1. The condo to commercial ratio is being relaxed. This means for mixed store/commercial with home units above there can be a mix of 50% commercial. Previously 25%.

Great news in downtown Seattle!

2. Allowance is being made for investors to own ½ the units which is a huge jump up from 10%.

3. Change has been made to the rule on delinquent home owner association dues. Previously it could deny a loan if 15 percent were delinquent 30 days on HOA dues. The change now states 60 days.

4. Condo board certification in regards to liability risks of the condo’s board. Since most boards are made up of home- owners who volunteer, they were reluctant to sign FHA paperwork that could have legal implications if they forgot to add something or checked the wrong box. Now there is some verbiage that FHA recognizes their efforts to verify information. Not sure that will suffice and make members feel relaxed but, at least they are moving in the right direction.

Now I must add that these new rules will not pertain to most individual buyers and mostly will affect areas of resorts and urban developments but, it is very important because it opens the door for more changes in the future. There is talk of loosening the 50% FHA denial if ½ the units were already sold under FHA and they are looking at the owner –occupied guideline.

As an agent I see so many complications with condo/townhomes and as the market is starting to turn more positive, especially here in Snohomish County, it is good to know one of the big players in financing is starting to maybe listen a little bit to move us in the right direction for home-ownership and recovery.

Information taken from The “New York Times”es

www.snohomishcountyhomes4u.com

How Much Of A Home Do You Qualify For?

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 Keys House

You have saved a down payment, cleaned up your credit, have been looking on-line dreaming for months now and finally have found a great Realtor to help you. So now what? Go out looking at homes? Not so fast. You need to find out how much of a house  you can buy? It does no good to look at $350K homes when you are more in the 250K range. If you start, believe me, it will be very had to settle in your mind on what you saw and what you can get. You need to meet with a lender and get the good news- “Yes you are pre-approved for a motgage of _____.

Have you  ever wondered how they come up with what they do and what formula is used?  The chart below is a handy guideline to reference what your payment would be based on your income and how much home you can afford. Look how interest rates play into this. Its huge! For example, we bought our house in 1998 and paid a whopping 7.25%!  Look at the difference today versus then. In other-words you can afford more house now. I bank with BECU and checked current rates today they are at 3.881% for a 30 year. In the 4rth quarter of 2012 rates were about 3.36%. There coming up!

We know these great rates wont last forever so if your on the fence take a look at what your payment would be and see if it makes sense for you. For example here in Snohomish County rents are around the monthly payment for a $300K  single family home. Crazy huh?

If you decide now is the time contact me and lets get started ! 

Interest Rate 3.25% 4.25% 5.25% 6.25% 7.25%
200,000          
Monthly Payment $1,266 $1,377 $1,496 $1,620 $1751
Monthly Income $3,246 $3,542 $3,835 $4,155 $4,489
Hourly Pay $18.73 $20.37 $22.12 $23.97 $25.90
250,000          
Payment $1,572 $1,712 $1,860 $2,015 $2,179
Income $4,032 $4,389 $4,768 $5,168 $5,586
Hourly $23.26 $25.32 $27.51 $29,81 $32.23
300,000          
Payment $1,879 $2,046 $2,223 $2,411 $2,606
Income $4,817 $5,246 $5,701 $6,181 $6,683
Hourly $27.79 $30.27 $32.89 $35.66 $38.55
350,000          
Payment $2,185 $2,380 $2,587 $2,806 $3,034
Income $5,603 $6,103 $6,634 $7,194 $7,780
Hourly $32.33 $35.21 $38.27 $41.50 $44.88

www.snohomishcountyhomes4u.com

200 Year Historical Rates on 30-Year Mortgage

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Click Here for the 30 Year FHLMC Rates On 30-Year Fixed-Rate Mortgage Chart

Click Here for the 200 Year Historical Rates On 30-Year Fixed-Rate Mortgage Chart

WOW!