buying a home: USDA Loan Program Changes You Should Know About - 02/25/11 05:31 AM
The Guaranteed Rural Housing Program, sometimes called “the USDA loan” will be implementing procedural changes in the upcoming months. On October 1st, 2011, they will be lowering the USDA fee (this is the financed fee that gets added to the loan) from the current 3.5% back to 2% for new applications. Effective with this change will be adding an annual fee equal to 0.3% of the outstanding balance of the loan. So, what’s that mean to your pocketbook?
They’re lowering the up-front (financeable) fee back to the 2%, BUT adding an annual fee of 0.3%. This is similar to how FHA … (3 comments)

buying a home: Think It's Cheaper to Rent Than Buy? Think Again! - 01/28/11 06:24 AM
There’s been a bit of buzz in the news lately asking if it’s cheaper to buy a house than to rent a house in today’s real estate market. 
I ran the numbers on specific and current listings in our Clark County market to answer that question. These specific scenarios are based on FHA financing, 640+ credit score, with 3.5% down at 4.50% 30 year fixed rates. I ran monthly rent payments of $800, $1,000, $1,200 and $1,400. I think you’ll be pleasantly surprised with the data!
If you pay monthly rent of $800 per month… Then you could afford to purchase … (3 comments)

buying a home: 10 Hidden Hazards in Your Home - 09/09/10 11:40 AM
Buying a first home is an exciting time for many of us. That pride of home ownership plus the freedom of decorating however we'd like is a liberating feeling. Once you own a home, there's no more worrying about the landlord and whether you can paint that ugly pink kitchen, hang new curtains, or (gasp!) put nails in the walls.
Home ownership does come with a different set of worries, unfortunately. Unlike a rental where the landlord takes care of regular maintenance issues, keeping a house safe from hidden threats is a homeowner's responsibility. Here are just a few of the … (4 comments)

buying a home: 10 Worst First-Time Homebuyer Mistakes - 08/05/10 08:41 AM
Are you gearing up to buy your first place? Shopping for a home is exciting, exhausting and a little bit scary. In the end, your aim is to end up with a home you love at a price you can afford. Sounds simple enough, right? Unfortunately, many people make mistakes the prevent them from achieving this simple dream. Arm yourself with these tips to get the most out of your purchase and avoid making 10 of the most costly mistakes that could put a hold on that sold sign.
1. Not Knowing What You Can Afford As we've all learned from … (6 comments)

buying a home: How Long do Buyers Have to WAIT to Buy After a Foreclosure or Bankruptcy? - 06/24/10 11:27 AM
To deter any kind of a new influx of new foreclosures, Fannie Mae announced a modification to the waiting period that a borrower must wait before being eligible for a new mortgage loan with Fannie Mae loans. Currently, the waiting period that must elapse after a borrower experiences a foreclosure is seven years. However, Fannie Mae allows a shorter time period – five years – if certain additional requirements are met (e.g., minimum down payment and credit score, and occupancy requirements). These requirements are being modified to remove the five year option. Unless the foreclosure was the result of documented extenuating … (4 comments)

buying a home: C'Mon, Everyone's Doing It: Nationwide Open House Weekend! - 03/30/10 07:25 AM
Last year's Washington Statewide Open House has gone NATIONWIDE and we're gearing up for a huge weekend event across the region, Sat. April 10 and Sun. April 11.
This is Great Timing! The Nationwide Open House is an incredible opportunity for you to shop for a new home while:
* Interest rates are still at a historical low
* Home prices are lower than they've been in years
* There are a variety of home choices available, including bank owned, foreclosure, and short sale properties
* The Homebuyer Tax Credits are still available. (Contract has to be in place by April … (2 comments)

buying a home: What You Need to Know: FHA Upfront Mortgage Insurance Increasing - 03/26/10 08:23 AM
Spring is a time for change; and this spring brings a change in FHA lending. Effective for FHA loans in which the case number is assigned on or after April 5, 2010, FHA will collect an upfront mortgage insurance premium of 2.25 percent. This amount is increased from the current 1.75 percent.
What is “FHA upfront mortgage insurance”? FHA charges what’s called an “upfront mortgage insurance premium” that is financed into the loan to help decrease the monthly mortgage insurance so that FHA borrowers payments are lower.
Can you give me an example? The cost, before April 5th is 1.75% (of … (1 comments)

buying a home: FHA is Tightening its Standards: Buy Now, or Pay More Later! - 03/01/10 05:09 AM
After the economic freefall of the past few years, banks across the country have been tightening their pursestrings. This summer, the Federal Housing Administration will tighten its lending standards. This is not a "bad" thing but it will make it more difficult for some buyers to purchase a home. Below are some of the changes set to occur:
Better Credit Scores - Borrowers will need a minimum score of 580 to quality for a 3.5% down payment. Borrowers with lower scores will have to make at least a 10% down payment. Higher Insurance Premiums - Buyers who get a FHA insured … (1 comments)

buying a home: Moving Countdown Part 5: Moving Day! - 02/03/10 09:29 AM
After much anticipation, it's finally arrived: moving day! Here are some tips to make this move a good one:
Strip the beds and put all bedding in a box labeled "Load Last". That way, it's the first to be unloaded and you'll have blankets for the first night in your new home! Make sure to be on hand when the movers arrive. If you're not available, authorize another adult and tell the movers who's in charge for the day. Spend plenty of time with the movers and make sure special instructions are understood. Don't be bossy or condescending - communicate well … (0 comments)

buying a home: Moving Countdown Part 4: The Week Before - 01/29/10 03:42 AM
We started this series with tips for 6-8 weeks before moving. Now we're up to the week before the big day! Here are some ideas to make it less stressful:
Tie up those loose ends! Make sure you've returned movie rentals, library books, and items borrowed from friends and neighbors. Review moving tips from previous posts to make sure you haven't missed anything. Confirm your travel arrangements. Pack suitcases and check airline and hotel reservations. Keep plans as flexible as possible to accomodate last minute changes. At least one day before your move, empty, defrost, and clean your fridge and freezer. … (1 comments)

buying a home: Moving Countdown Part 3: 2-3 Weeks Before - 01/21/10 03:35 AM
So far we've covered tips for 6-8 weeks and 4-5 weeks before your move. Here are some ideas for 2-3 weeks before the big day:
Call ahead to schedule utilites to be connected at your new home. This includes electricity, gas, water, phone, cable, internet, etc. Call your bank to change your address or transfer accounts. If you use a local credit union or bank that doesn't have branches in your new area, ask if they have recommendations or "partner" banks. Make final packing decisions and start packing items you don't use very often. Create a staging area in the garage … (1 comments)

buying a home: Moving Countdown Part 2: 4-5 Weeks Before - 01/12/10 03:51 PM
In the last blog, we covered what to do 6-8 weeks before your move. Here are some tips to follow 4-5 weeks before the big day arrives:
If you live in an apartment or condo, now is the time to talk with your property manager about scheduling your move. There may be date or time restrictions as to when moving can be done. Make sure to abide by any rental or lease agreement you may have to avoid hefty fines. Contact the moving company to schedule your move date and reserve the appropriate sized truck. Notify your insurance company and schedule … (1 comments)

buying a home: Moving Countdown Part 1: 6-8 Weeks Before - 01/11/10 05:55 PM
Moving. The word can bring up feelings ranging from happiness and excitement to exhaustion and dread. No matter where you fall on the scale, these tips can help your next move be a smooth one.
What to do 6-8 weeks before the big day:
Determine which items you wish to take to your new home. Items you don't need should either be donated to charity or sold at a garage sale. You may consider teaming up with your neighbors who want to sell some of their belongings and hold a "neighborhood sale." If you plan on packing your own items, start … (1 comments)

buying a home: 7 Things You NEED to Know About the $6500 Tax Credit! - 01/08/10 04:45 AM
Several months ago Congress approved a $6500 tax credit for homebuyers aimed at so-called "move up" buyers. Though it's been law since November, there are still a lot of questions and mis-information floating around. Here are a few things you should know about taking advantage of the tax credit:
To qualify, you must have owned and lived in your current home for a consecutive 5 out of the last 8 years. And your income must be below $125k if you're single, $225k if you're married filing jointly. You may "move up" (buy a more expensive home) or "downsize" (buy a less … (1 comments)

buying a home: Up, Down, Up, Down... What's Up (or Down!) with Interest Rates? - 09/01/09 02:44 AM
Thanks in part to recent US Treasury purchases of agency mortgage securities, 30 year fixed rate conventional mortgage rates seem to have leveled out in the 5-6% range. As always, they are subject to change at any time based on the usual market forces. Will they go down further? Will they start to creep up? They'll probably do a little of both! We'll only know in hindsight. What is certain is where rates are today and that average annual rates have been as high as 18% and rarely even close to where they are today. As we're now in unchartered territory, … (0 comments)

buying a home: Don't Let the Final Walk-Through Trip You Up! - 07/15/09 03:33 AM
Let's face it, every real estate closing is hectic. So many things are coming together at the end and one thing out of place can have a domino effect on everything else. Regardless of what else is going on, you should always take the time for a final walk-through before signing on the dotted line. During the walk-through make sure that:
Requested repairs have been made. Get copies of paid bills and warranties if applicable. There have been no major changes to the property since you last saw it. All included items are still there: drapes, light fixtures, etc. Screens and … (1 comments)

buying a home: But Prices are Still Going Down, Right? Maybe, Maybe Not! - 07/09/09 02:21 AM
Will prices go down further? That's a question I am asked nearly every day. The answer is, nobody knows. The only way to know when the market bottoms out is in hindsight, when prices have started to climb again. There are great deals to be had right now because some sellers are motivated and need to sell today. However, there are several factors that point to prices remaining fairly steady in this area:
Washington's economy is extremely strong with unemployment below 5%! The Washington State Office of Financial Management predicts the state will add another 2 million residents within the next … (0 comments)

buying a home: 10 Commandments for Home Buyers - 06/12/09 07:14 PM
1. Thou shalt not change jobs, become self-employed or quit your job. Longer employment time shows stability and a reduced likelyhood of default.
2. Thou shalt not buy a car, truck or van (or you may be
living in it)! This will increase your debt to income ratio.
3. Thou shalt not use charge cards excessively or let your
accounts fall behind. This shows poor money management and an increased risk of default.
4. Thou shalt not spend money you have set aside for closing. It costs money to borrow money - make sure you have enough.
5. Thou shalt not … (13 comments)

buying a home: 3 Reasons to Say Buh-Bye to Renting - 06/02/09 04:35 AM
Some people really like renting. They love white walls they can't paint, waiting for the landlord to fix a leaky faucet at his convenience, annual rent increases, and sending in a rent check each month with nothing to show for it when they move. If you're like them don't read this post! If, however, you're tired of the rental hamster wheel, read on...
Reason #1: Interest rates are still at historical lows - as low as 5.25%! Not too shabby considering the average interest rate over the past 30 years is more than double that!
Reason #2: Homes are being offered … (4 comments)

buying a home: As Long as There's Been Real Estate, There's Been Naysayers! - 05/07/09 05:18 PM
1947:  "The prices of houses seems to have reached a plateau, and there is a reasonable expectancy that prices will decline." Time Magazine, 1947
1948: "Houses cost too much for the mass market. Today's average price is around $8000... out of reach for 2/3 of all buyers." Science Digest, 1948
1969: "The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house costs about $28,000." Business Week, 1969
1970: "You might well be suspicious of ‘common wisdom' that tells you, ‘don't wait, buy now.'" NEA Journal, 1970
1977: "The median … (3 comments)