Ok, off the topic but we got to have fun also.
Looking forward to Nascar starting up again.
Saturday, January 26, 2008
Thursday, January 24, 2008
Can we get a house with no money down?
Well with all the trouble that the lending market is having there are still a few thing that your real estate agent can help you with to lower your cost of getting you into your home.
Some buyers reduce the cash needed at settlement by scheduling closing at the end of the month. But there are several other ways to save on closing costs that may work better in the long run.
We’re a little tight on cash. How can we shift some settlement costs to reduce out of pocket expenses?
Skip late-month settlement
Since interest on the loan is paid to the end of the month at settlement, the interest payment gets lower as you get closer to the end of the month. But another approach is to wait a few days until the beginning of the next month. That way, you'll need to pay more up front at settlement, but you'll gain a whole month's delay before the first full mortgage payment is due, because mortgage interest is paid in arrears, after the month has passed.
Reduce out-of-pocket cash
Another way to reduce the cash needed at settlement takes some advance planning. By negotiating with the seller, the buyer may be able to pay more for the home and finance it, while the seller puts an equal amount toward out-of-pocket settlement costs.
Finance closing costs
A third option is to find a lender who will finance closing costs by wrapping them into the mortgage. This method may, however, cost more over the long run, as lenders often will then charge a higher interest rate for a "no closing costs" loan.
You cant get away from paying nothing but there are things you can do to help you into your new home.
Some buyers reduce the cash needed at settlement by scheduling closing at the end of the month. But there are several other ways to save on closing costs that may work better in the long run.
We’re a little tight on cash. How can we shift some settlement costs to reduce out of pocket expenses?
Skip late-month settlement
Since interest on the loan is paid to the end of the month at settlement, the interest payment gets lower as you get closer to the end of the month. But another approach is to wait a few days until the beginning of the next month. That way, you'll need to pay more up front at settlement, but you'll gain a whole month's delay before the first full mortgage payment is due, because mortgage interest is paid in arrears, after the month has passed.
Reduce out-of-pocket cash
Another way to reduce the cash needed at settlement takes some advance planning. By negotiating with the seller, the buyer may be able to pay more for the home and finance it, while the seller puts an equal amount toward out-of-pocket settlement costs.
Finance closing costs
A third option is to find a lender who will finance closing costs by wrapping them into the mortgage. This method may, however, cost more over the long run, as lenders often will then charge a higher interest rate for a "no closing costs" loan.
You cant get away from paying nothing but there are things you can do to help you into your new home.
Saturday, January 19, 2008
Do you have a favorite trades person or service provider?
Tell us about them and we will include them in our latest Referral Directory.
How to make your home sell quickly.
Including Advice From Your Local Real Estate Guru
Lonnie Snyder
Here are 8 hot tips to help you out.
1. Make certain that everything is spotless, clean and fresh . . . Windows are particularly important.
2. Clear out any clutter and personal items. Making certain that the kitchen counters and table tops look sparse and inviting.
3. Replace light bulbs with high wattage. Prune back plants that block light and keep drapes and any blinds open at all times.
4. Create open spaces and draw attention to the strongest selling point in every room.
5. Choose light, neutral shades of paint to brighten walls and make rooms appear larger.
6. Freshen the yard, filling in bare spots with annuals and shrubs. Add fresh bark and keep the lawn green and mowed.
7. Create a stylish entrance always keeping in mind that first impression are lasting ones.
8. Look at your home through a buyer’s eyes. Making certain it is inviting and open enough so that future residents can visually place their furniture and belongings.
Monday, January 14, 2008
Making a Move?
When you're thinking about making a move, consider:
__ how much money you want to spend.
__ what type of home you would like.
__ where you would like to live.
__ when you want to move.
__ how much you qualify for and what financing works best.
Getting pre-qualified by a lender is a good idea in the beginning stage. This will help you determine your choices of homes and neighborhoods and keep your expectations realistic. When you start your search, get pre-approved for a loan as soon as possible. This will involve a credit check and employment verification, and once this is done all that needs to be done is for the lender to appraise the home.
Why is pre-approval so important? Pre-approval strengthens your position. A seller typically chooses an offer that is pre-approved over someone whose financial picture is still in question. If you or someone you know is looking to buy or has a real estate need or question, visit me at for buying and selling tips, MLS property searches, town and community information and more, or call me at .
Thank you and have a wonderful day!
Lonnie Snyder 206-406-2710
__ how much money you want to spend.
__ what type of home you would like.
__ where you would like to live.
__ when you want to move.
__ how much you qualify for and what financing works best.
Getting pre-qualified by a lender is a good idea in the beginning stage. This will help you determine your choices of homes and neighborhoods and keep your expectations realistic. When you start your search, get pre-approved for a loan as soon as possible. This will involve a credit check and employment verification, and once this is done all that needs to be done is for the lender to appraise the home.
Why is pre-approval so important? Pre-approval strengthens your position. A seller typically chooses an offer that is pre-approved over someone whose financial picture is still in question. If you or someone you know is looking to buy or has a real estate need or question, visit me at for buying and selling tips, MLS property searches, town and community information and more, or call me at .
Thank you and have a wonderful day!
Lonnie Snyder 206-406-2710
Sunday, January 13, 2008
Practicing good seller's etiquette
Let's face it: When your house goes on the market, you're not only opening the door to prospective buyers, but also sometimes to unknown vendors and naïve or unqualified buyers. As with any business transaction, there is an expected protocol to how sellers, buyers and their respective agents interact. Should you find yourself in a sticky situation, alert your agent so he or she can address and remedy the problem.
The aggressive agent.
When your agent puts your house on the market, typically all promotional materials state clearly that your agent is the primary contact for buyers and buyers' agents. However, sometimes a buyer's agent will contact a seller directly to try to either win over their business or cut the seller's agent out of the deal. This is not reputable behavior and you should report it to your agent immediately if it happens to you.
The unscrupulous vendor.
Have you ever started a business or moved into a new house and suddenly found your mailbox full of junk mail? Unfortunately, this also can happen when you put your house on the market. When you sell your home, it necessitates all kinds of new purchasing decisions and less-than-ethical vendors are keenly aware of this. Though MLS organizations enforce rules on how posted information is used, some companies have found ways to cull information from various sources to produce mass mailing lists. If you find yourself regularly emptying your mailbox of junk, let your agent know. He or she can tap the appropriate sources to prompt an investigation into the matter.
The naïve buyer.
Yard signs, Internet listings and other advertisements can generate a lot of buzz for your home. Some prospective buyers - particularly first-timers - will be so buzzed to see your home that they'll simply drop by. If this happens, no matter how nice these unexpected visitors are, it's best not to humor their enthusiasm by discussing your home or giving an impromptu tour. Instead, politely let them know that your real estate agent is in charge of scheduling tours and provide them with the agent's contact information. If you attempt to handle these surprise visits on your own, you might inadvertently disclose information that could hurt you during negotiations down the road.
The aggressive agent.
When your agent puts your house on the market, typically all promotional materials state clearly that your agent is the primary contact for buyers and buyers' agents. However, sometimes a buyer's agent will contact a seller directly to try to either win over their business or cut the seller's agent out of the deal. This is not reputable behavior and you should report it to your agent immediately if it happens to you.
The unscrupulous vendor.
Have you ever started a business or moved into a new house and suddenly found your mailbox full of junk mail? Unfortunately, this also can happen when you put your house on the market. When you sell your home, it necessitates all kinds of new purchasing decisions and less-than-ethical vendors are keenly aware of this. Though MLS organizations enforce rules on how posted information is used, some companies have found ways to cull information from various sources to produce mass mailing lists. If you find yourself regularly emptying your mailbox of junk, let your agent know. He or she can tap the appropriate sources to prompt an investigation into the matter.
The naïve buyer.
Yard signs, Internet listings and other advertisements can generate a lot of buzz for your home. Some prospective buyers - particularly first-timers - will be so buzzed to see your home that they'll simply drop by. If this happens, no matter how nice these unexpected visitors are, it's best not to humor their enthusiasm by discussing your home or giving an impromptu tour. Instead, politely let them know that your real estate agent is in charge of scheduling tours and provide them with the agent's contact information. If you attempt to handle these surprise visits on your own, you might inadvertently disclose information that could hurt you during negotiations down the road.
Friday, February 23, 2007
Rental Properties - 10 Cash Flow Tips
What if you want better cash flow from your rental properties? You can't just raise the rents arbitrarily. If tenants leave, income goes down, not up. There are other ways, though, including the ones listed below.
1. Install coin-operated washing machines. Even if you don't have the money to do this yourself, you can find a company that will do it for you, and share the income with you.
2. Rent extra parking space. When I got tired of a renter's extra car, I just started charging a weekly fee. Then I didn't mind so much.
3. Raise the rent. Okay, we did dismiss ARBITRARY rent hikes as a cash-flow solution, but check on the rates for similar units. Are you renting at below-market rates?
4. Rent storage sheds. Especially if your apartments are small, your renters may need a place to store their things. Don't let them spend their money elsewhere. Put a few sheds on the property.
5. Enforce late fees. It is perfectly fair to have a fee for late payment of rent, and guess what? Those who are chronically late usually don't even mind - they just don't look at these things the same way as others.
6. Offer improvements for rent increases. If it's worth $25 more monthly rent to a tenant, install that dishwasher. Even on a credit card you'll pay less than that per month for it.
7. Install vending machines. If your rental properties are large enough, others will do this for you for free, and give you a share of the income.
8. Rent by the room. A four-bedroom house might make more money if you include all the utilities and rent by the bedroom. This has made a lot of fortunes for investors in college towns. It does mean a lot of management, however.
9. Rent-to-own sale. Usually there's a non-refundable deposit, and higher than market rents in these deals. When renters change their minds, as they often do, you got the deposit and better cash flow. This is great when poor cash flow makes you want to sell. You either sell or get the better cash flow as you repeat the process.
10. Reduce expenses. Every dollar of expense you cut goes straight to the bottom line. List every expense of your rental properties, and look at them one at a time. How can you reduce them?
1. Install coin-operated washing machines. Even if you don't have the money to do this yourself, you can find a company that will do it for you, and share the income with you.
2. Rent extra parking space. When I got tired of a renter's extra car, I just started charging a weekly fee. Then I didn't mind so much.
3. Raise the rent. Okay, we did dismiss ARBITRARY rent hikes as a cash-flow solution, but check on the rates for similar units. Are you renting at below-market rates?
4. Rent storage sheds. Especially if your apartments are small, your renters may need a place to store their things. Don't let them spend their money elsewhere. Put a few sheds on the property.
5. Enforce late fees. It is perfectly fair to have a fee for late payment of rent, and guess what? Those who are chronically late usually don't even mind - they just don't look at these things the same way as others.
6. Offer improvements for rent increases. If it's worth $25 more monthly rent to a tenant, install that dishwasher. Even on a credit card you'll pay less than that per month for it.
7. Install vending machines. If your rental properties are large enough, others will do this for you for free, and give you a share of the income.
8. Rent by the room. A four-bedroom house might make more money if you include all the utilities and rent by the bedroom. This has made a lot of fortunes for investors in college towns. It does mean a lot of management, however.
9. Rent-to-own sale. Usually there's a non-refundable deposit, and higher than market rents in these deals. When renters change their minds, as they often do, you got the deposit and better cash flow. This is great when poor cash flow makes you want to sell. You either sell or get the better cash flow as you repeat the process.
10. Reduce expenses. Every dollar of expense you cut goes straight to the bottom line. List every expense of your rental properties, and look at them one at a time. How can you reduce them?
Saturday, January 13, 2007
How to protect your plumbing from the cold
To avoid frozen pipes, let water trickle overnight from indoor faucets served by exposed pipes.
Keep the heat set on at least 55 degrees. If your water pipes are not insulated, install pipe sleeves.
Outdoors, disconnect garden hoses. Drain and cover faucets.
Open cupboard doors under sinks on outside walls so pipes are exposed to inside heat.
If your pipes do freeze, it is best to call a licensed plumber.
If you try to thaw the frozen pipe yourself, be sure to take the following precautions:
• Do not use an open flame. You risk setting the home on fire, and overheating one area can cause the pipe to burst.
• Place a warm towel or rag around the pipe.
• Shut off the water valve to the frozen pipe.
• Keep the faucet of the frozen pipe open so water can flow out as it melts.
• Make sure you know the location of your master shut-off valve. The frozen pipe may already be broken and, when the water is thawed, it will leak. In this case, you will need to shut off the water in your home until the leaky pipe is fixed.
Keep the heat set on at least 55 degrees. If your water pipes are not insulated, install pipe sleeves.
Outdoors, disconnect garden hoses. Drain and cover faucets.
Open cupboard doors under sinks on outside walls so pipes are exposed to inside heat.
If your pipes do freeze, it is best to call a licensed plumber.
If you try to thaw the frozen pipe yourself, be sure to take the following precautions:
• Do not use an open flame. You risk setting the home on fire, and overheating one area can cause the pipe to burst.
• Place a warm towel or rag around the pipe.
• Shut off the water valve to the frozen pipe.
• Keep the faucet of the frozen pipe open so water can flow out as it melts.
• Make sure you know the location of your master shut-off valve. The frozen pipe may already be broken and, when the water is thawed, it will leak. In this case, you will need to shut off the water in your home until the leaky pipe is fixed.
Monday, September 11, 2006
Is it better to replace the carpet or offer a carpeting allowance to buyers?
Replacing the carpet to help the house sell faster is a favorite with real estate agents. And there's a good reason. Taking a shortcut by offering a carpeting allowance doesn't have the visual impression – or sales impact – of new carpet. Here are some guidelines to be sure the new carpet has the maximum effect:
Select neutral colors. The color should be neutral or a dull color tone to help the room look bigger. When carpeting several adjoining rooms, the same carpet should be used, if possible – again to make the house seem larger and more unified.
Select high quality pad. The pad under the carpet is important, and not a place to cut corners. A good pad is dense and resilient, and gives an expensive feel to almost any carpet. Pads come in a variety of materials including rubber, foam, felt, and jute.
Select fiber carefully. Choose a fiber that suits the area where the carpet will be installed. Carpets are made of a variety of man-made and natural fibers, and often are comprised of popular combinations of fibers. Nylon is durable and resilient, and suitable for high-traffic areas. Olefin is economical and stain-resistant, good for active families. Polyester is soft and elegant, and appropriate for a higher-style area. Wool is a warm natural fiber, luxurious and expensive.
Select loop to match use. The type of loop should depend on the use. A sheared loop like plush works in more formal areas; a continuous loop, such as Berber, is suitable for children's play areas.
Select neutral colors. The color should be neutral or a dull color tone to help the room look bigger. When carpeting several adjoining rooms, the same carpet should be used, if possible – again to make the house seem larger and more unified.
Select high quality pad. The pad under the carpet is important, and not a place to cut corners. A good pad is dense and resilient, and gives an expensive feel to almost any carpet. Pads come in a variety of materials including rubber, foam, felt, and jute.
Select fiber carefully. Choose a fiber that suits the area where the carpet will be installed. Carpets are made of a variety of man-made and natural fibers, and often are comprised of popular combinations of fibers. Nylon is durable and resilient, and suitable for high-traffic areas. Olefin is economical and stain-resistant, good for active families. Polyester is soft and elegant, and appropriate for a higher-style area. Wool is a warm natural fiber, luxurious and expensive.
Select loop to match use. The type of loop should depend on the use. A sheared loop like plush works in more formal areas; a continuous loop, such as Berber, is suitable for children's play areas.
Thursday, September 07, 2006
We’re in a competitive market. What can I do to make my offer look better than another buyer’s offer?
It takes more than good luck to get the right home at the right price. One advantage you can have on your side is a conditional loan pre-approval. When you are pre-approved your offer is more attractive because the seller doesn't have to wonder if you can afford to buy. The seller will know in advance that your offer is as good as money in the bank.
Pre-approval versus pre-qualification
A pre-approval is a conditional loan approval from a lender based on your application. Pre-approval differs from pre-qualification, which is a verbal exchange with a lender about how much you can probably afford. Pre-qualification does not obligate the bank to make the loan, whereas a pre-approval is a conditional loan commitment. Final approval is made when both your finances and the property pass review.
Close the deal faster
Lining up your mortgage loan before you start house hunting could make buying your new home quicker and easier. A pre-approval can speed closing because most of the paperwork is already in place for the loan. You have already started to learn about the financing process, and any problems will have been resolved.
Pre-approval versus pre-qualification
A pre-approval is a conditional loan approval from a lender based on your application. Pre-approval differs from pre-qualification, which is a verbal exchange with a lender about how much you can probably afford. Pre-qualification does not obligate the bank to make the loan, whereas a pre-approval is a conditional loan commitment. Final approval is made when both your finances and the property pass review.
Close the deal faster
Lining up your mortgage loan before you start house hunting could make buying your new home quicker and easier. A pre-approval can speed closing because most of the paperwork is already in place for the loan. You have already started to learn about the financing process, and any problems will have been resolved.
Thursday, August 31, 2006
How to avoid overpaying in a buyer's market
My wife and I want to buy our first home, as she is expecting in about six months. However, the area where we want to buy is in a "buyer's market" with lots of homes for sale. We notice many "price reduced" hangers on the for-sale signs, so we are in no hurry to buy. The block where we almost bought a house last weekend has three houses listed for sale out of 20 houses on the block. How can we avoid paying too much?
Before you make a written purchase offer, ask your buyer's agent to prepare a written comparative market analysis, or CMA. This is the same form that listing agents prepare for their sellers at the time a home is listed for sale.
Before you make a written purchase offer, ask your buyer's agent to prepare a written comparative market analysis, or CMA. This is the same form that listing agents prepare for their sellers at the time a home is listed for sale.
Tuesday, August 22, 2006
How To Put Your Sale On The Fast Track
It's every home seller's dream -- a fast sale. In today's market, crossing the finish line first, fortunately, isn't a matter of luck. To win the home-sale race, you have to stay ahead of the pack. Price the house right, market the house competitively, and make sure the house is in move-in condition.
Here are 3 key ways you can get your home on the home sale fast track:
1. Price To Sell
Don't over price.
A nationwide survey of the National Association of Realtors found homes that sell within four weeks of the initial listing sold for close to the original asking price. Homes on the market for up to six months sold for about 7% less than the asking price. Listings that languished for more than six months sold for 15% less than the asking price. Experience shows: a too-high price results in a slow-to-sell home.
Expertise pays off.
This is an area where our neighborhood expertise pays off. By performing a competitive market analysis, we can help you determine the best possible price--one that puts the most money in your pocket and gets it sold fast. We'll study listing and selling prices for similar homes in your neighborhood and compare your home's special features, improvements and condition. Interest rates, local economic trends and the availability of homes for sale in your area will also affect your home's value. The feedback we glean regularly from home seekers helps us keep our sellers informed of what today's buyers want and are willing to pay.
Be realistic.
The more realistic the asking price, the sooner your home will sell. Unrealistic prices, on the other hand, are the major cause of "shopworn" listings, causing potential buyers to wonder if something is wrong with the home beyond price.
2. Results Marketing
Create a marketing plan.
Once you've established a selling price, the next step in your fast-track strategy is a maximum-exposure marketing plan. An effective marketing plan can include:
• Tours to familiarize other agents with your home.
• Showing your home to qualified buyers.
• Advertising your home where it counts.
Offer buyer incentives.
For example, sellers can help with closing costs, provide a home warranty, give allowances for carpet or draperies, or pay utilities or lawn service for a limited time. Lowering cash barriers to the purchase will significantly enlarge the circle of potential buyers. We can discuss many other ways to market your home so it stands out from the competition.
3. Showplace Condition
Move-in condition.
To tempt a buyer, your home has to be inviting. Today's buyers generally don't have the time to do their own fixing up, so for maximum appeal your home must be in move-in condition.
Focus on curb appeal.
First impressions really do count. Inside your home, recognize that living condition is different from showing condition. Prospective buyers want to see your home in near-perfect condition, even if that's not the way they'll keep it once they move in. Make your home a "showplace" and you'll soon be taking a victory lap after a fast sale.
Give us a call for more tips on getting your home ready to sell, developing an effective marketing plan, or setting the right price for your home. With our experience and track record, together we can make sure you finish a winner.
Here are 3 key ways you can get your home on the home sale fast track:
1. Price To Sell
Don't over price.
A nationwide survey of the National Association of Realtors found homes that sell within four weeks of the initial listing sold for close to the original asking price. Homes on the market for up to six months sold for about 7% less than the asking price. Listings that languished for more than six months sold for 15% less than the asking price. Experience shows: a too-high price results in a slow-to-sell home.
Expertise pays off.
This is an area where our neighborhood expertise pays off. By performing a competitive market analysis, we can help you determine the best possible price--one that puts the most money in your pocket and gets it sold fast. We'll study listing and selling prices for similar homes in your neighborhood and compare your home's special features, improvements and condition. Interest rates, local economic trends and the availability of homes for sale in your area will also affect your home's value. The feedback we glean regularly from home seekers helps us keep our sellers informed of what today's buyers want and are willing to pay.
Be realistic.
The more realistic the asking price, the sooner your home will sell. Unrealistic prices, on the other hand, are the major cause of "shopworn" listings, causing potential buyers to wonder if something is wrong with the home beyond price.
2. Results Marketing
Create a marketing plan.
Once you've established a selling price, the next step in your fast-track strategy is a maximum-exposure marketing plan. An effective marketing plan can include:
• Tours to familiarize other agents with your home.
• Showing your home to qualified buyers.
• Advertising your home where it counts.
Offer buyer incentives.
For example, sellers can help with closing costs, provide a home warranty, give allowances for carpet or draperies, or pay utilities or lawn service for a limited time. Lowering cash barriers to the purchase will significantly enlarge the circle of potential buyers. We can discuss many other ways to market your home so it stands out from the competition.
3. Showplace Condition
Move-in condition.
To tempt a buyer, your home has to be inviting. Today's buyers generally don't have the time to do their own fixing up, so for maximum appeal your home must be in move-in condition.
Focus on curb appeal.
First impressions really do count. Inside your home, recognize that living condition is different from showing condition. Prospective buyers want to see your home in near-perfect condition, even if that's not the way they'll keep it once they move in. Make your home a "showplace" and you'll soon be taking a victory lap after a fast sale.
Give us a call for more tips on getting your home ready to sell, developing an effective marketing plan, or setting the right price for your home. With our experience and track record, together we can make sure you finish a winner.
Tuesday, August 15, 2006
Motrgage 101
Mortgage 101
By Broderick Perkins, DeadlineNews.com
______________________________
Once a simple task that meant comparing the fixed interest rate mortgages of a dozen or so lenders, the mortgage search today is more like finding your way through a maze. There are dozens of loan types, hundreds of loan programs and thousands of mortgage brokers, bankers, lenders, finance companies, credit unions, even stock brokerage firms originating loans.
Because there is so much to learn, finding a mortgage that fits doesn't begin with an application, but education. If there's but one aspect of the home buying transaction you take the time to learn in detail, make it mortgages. Discover too late that you can't afford your mortgage, and you could not only lose your home, but also be unable to purchase another one for years.
Obtaining information is easy. Mortgage information sources are as numerous as mortgage types. Web sites, topical newspaper articles, mortgage books, consumer seminars and workshops can help. Professionals, including financial planners, real estate agents, mortgage brokers and lenders, can also assist you.
Examine your finances 
First, compare fixed-rate mortgages with adjustable rate mortgages to determine which type best fits your current financial lifestyle and, to some extent, your future obligations 15 to 30 years down the road. Learn how much of a mortgage you can afford. Lenders are apt to qualify you for as much as they are willing to lend, which can be more than you can really afford. It's up to you to take stock of your income and expenses, both current and projected, to determine what you can comfortably manage each month.
Along with your mortgage payment of interest and principle, remember to add related insurance costs, taxes, homeowner association dues and any other costs. Also, obtain copies of your credit reports from all credit reporting agencies. Obtaining your credit report in advance gives you time to challenge missing information, errors, or other discrepancies. If necessary, you can put a statement on your credit report to explain any blemishes you can't cure. Lenders likely will ask you to explain problem areas on your credit record anyway. Your attention will let the lender know you are conscientious about your finances.
Shopping for lenders and loans
When you are ready to shop for a loan you have two basic choices -- direct lenders and mortgage brokers. Direct lenders have money to lend. They make the final decision on your application. Lenders have a limited number of in-house loans available. Brokers are intermediaries who, like you, have many lenders from which to choose. If you have special financing needs and can't find a loan to suit them, an experienced broker may be able to ferret out the financing you need. Mortgage brokers, however, are paid with a slice of the amount you borrow, some more than others.
Along with shopping the source, you'll also have to shop loan costs, including the interest rate, broker fees, points (each point is one percent of the amount you borrow), prepayment penalties, the loan term, application fees, credit report fee, appraisal costs and a host of others.
Your application
Before you actually apply for a mortgage on or off line, gather documents necessary to prove claims you'll make on the application. The application will ask for information about your job tenure, employment stability, income, your assets (property, cars, bank accounts and investments) and your liabilities (auto loans, installment loans, mortgages, credit-card debt, household expenses and others).
The lender will run a credit check on you, but you'll have to supply supplemental documentation including paycheck stubs, bank account statements, tax returns, investment earnings reports, rental agreements, divorce decrees, proof of insurance, and other documentation. If the lender deems you creditworthy, it will likely hire a professional appraiser to make sure the value of the home you are about to buy is commensurate with your loan amount.
Lock it down
During your loan application, get a rate lock - an essential document in a rising mortgage rate market. On or offline, a rate lock -- in writing - guarantees you a certain interest rate and terms for a given period.
· Lock in all the costs you can, the interest rate, and points.
· Set the lock ''on application'' rather than ''on approval.'' On approval means you won't have a stab at rates until the loan application is approved. In a rising market, a lock on approval would cost you more in higher interest rate.
· Along with shopping around for the best mortgage, shop around for both the terms of the lock contract and its cost. Both can vary.
· Your lock-in period should be long enough to allow for settlement, contingencies imposed by the lender or the purchase contract and other factors that could delay the process. Consider all factors that could delay your settlement, including the time it will take you to provide requested materials about your financial condition, unanticipated construction delays on a new house and the like.
· Most lock periods range from 15 to 60 days. Anything longer could be cost prohibitive. Ask your lender to estimate (in writing, if possible) the average time for processing loans. Once you lock-in a rate, you must make sure that your loan is approved and closed before the commitment expires. Follow up on your loan application to make sure you don't delay sending additional documents the lender requires.
Get preapproved
Finally, once the lender approves your loan, you've been prequalified for a certain amount, but that doesn't guarantee you the loan. Prequalification indicates you are creditworthy enough to obtain a loan and it lets you know how much the lender is willing to lend you based on your income and debts. Often, the lender has yet to pull your credit report. It's wise to take the next step and get preapproved for a specific amount the lender will actually lend you.
Sunday, August 13, 2006
Seahawks Moving Practice Facility To Renton
By Associated Press
RENTON - The Seahawks are moving their headquarters from their cramped location in this suburb east of the city to Renton south of Seattle - the same suburb where the SuperSonics are considering building a new arena.
Alex Pietch, director of Renton's economic development department, confirmed on Monday that the Seahawks plan to move onto a 20-acre, waterfront site on the southeastern shore of Lake Washington.
"We have been in talks with the Seahawks for some months in advance of this," Pietch said.
Tod Leiweke, the Seahawks' chief executive, deferred questions on the move to a Tuesday press conference at the team's current headquarters next to Northwest University in Kirkland. In a news release Monday morning, the team said it would be announcing a "new facility upgrade" on Tuesday.
The team's 20-year lease with Northwest University for the land that holds the current, 44,000 square-foot headquarters - remodeled in 1999 - ends this year. The Seahawks plan to break ground on their 120,000 square-foot Renton site this fall and move in time to have their 2008 training camp there.
"I can see Paul Allen and his yacht tied up here swinging on the hook watching the practice from the bridge of his beautiful yacht," said Renton resident Bill Kennamer. "I just have no hesitation to say 'what a great idea.' "
The site is owned by Seahawks' owner Paul Allen's Vulcan Inc., a management company that invests in science, the arts and movie production, among other ventures.
Pietch said Allen, Microsoft Corp.'s cofounder, had purchased the land in the mid-1990s in hopes of making it a headquarters for his "technology and all of his entities." That plan fell apart, Pietch said, in 2002 when various owners of surrounding properties could not come to terms.
The Seahawks approached Renton about six months ago with the idea of using the Vulcan land for a new, far larger and more modern team facility and training camp headquarters. The Seahawks' current training camp is at Eastern Washington University in Cheney each summer.
"We opened our arms and said, 'Please come,"' Pietch said.
Renton is the home of Boeing's Commercial Airplane headquarters and its 737 and Business Jet production lines where they've added a thousand jobs. It's also home to IKEA's most profitable store in North America. It's going to be the new home of the Federal Reserve Bank now under construction.
And it’s home to the new urban village 'The Landing' with shops, restaurants, apartments and a hotel to be built on former Boeing property where Fry's Electronics flourishes.
"As the region continues to densify, we think that the city is going to be one of the most important urban centers around Lake Washington," Pietch said.
It wasn't too many years ago Renton was hurting. Then city boosters came up with the ad campaign 'Ahead of the Curve.'
Public relations man Michael Hamilton says, "You know we started doing this 7 years ago and it's pretty remarkable when you think that back then we said 'Renton was ahead of the Curve' and it sort of just keeps proving itself."
The move follows an NFL moneysaving trend toward keeping training camps at team facilities rather than the traditional, remote college campus settings. More teams prefer staying home in their more lavish facilities with better field and medical conditions. And players enjoy being able to commute to their in-season homes while at training camp.
Renton is also on the list of places the NBA's SuperSonics will talk to about building a new arena should talks with Seattle on a proposed $220 million upgrade of KeyArena fall through.
In February, majority owner Howard Schultz threatened to possibly move or sell the franchise. He said the Sonics have lost about $60 million in the past five years, and blamed a revenue-sharing lease with the city of Seattle.
"The timing of the Seahawks' announcement and our discussions with the Sonics are coincidental," Pietch said. "The Sonics' talks are entirely independent."
The site the Sonics are considering - along with places in suburban Bellevue east of Seattle - is south of the Seahawks' new headquarters, near a Boeing Co. production plant for its 737 aircraft. The Sonics' arena would be part of a developing entertainment and residential complex known as "The Landing."
Pietch said Renton is waiting for the Sonics to determine whether staying within Seattle city limits will be a viable alternative beyond the 2010 end to its KeyArena lease.
"The Sonics have indicated to us all along their first priority is securing a deal with the city of Seattle," Pietch said. "Our discussions with them have always been, 'If not Seattle, then you should take a look at our site."'
For now, Renton is plenty happy with the economic benefits the new Seahawks' facility - and especially their training camp move - will bring.
"This is another championship-caliber entity moving into the city of Renton," Pietch said.
RENTON - The Seahawks are moving their headquarters from their cramped location in this suburb east of the city to Renton south of Seattle - the same suburb where the SuperSonics are considering building a new arena.
Alex Pietch, director of Renton's economic development department, confirmed on Monday that the Seahawks plan to move onto a 20-acre, waterfront site on the southeastern shore of Lake Washington.
"We have been in talks with the Seahawks for some months in advance of this," Pietch said.
Tod Leiweke, the Seahawks' chief executive, deferred questions on the move to a Tuesday press conference at the team's current headquarters next to Northwest University in Kirkland. In a news release Monday morning, the team said it would be announcing a "new facility upgrade" on Tuesday.
The team's 20-year lease with Northwest University for the land that holds the current, 44,000 square-foot headquarters - remodeled in 1999 - ends this year. The Seahawks plan to break ground on their 120,000 square-foot Renton site this fall and move in time to have their 2008 training camp there.
"I can see Paul Allen and his yacht tied up here swinging on the hook watching the practice from the bridge of his beautiful yacht," said Renton resident Bill Kennamer. "I just have no hesitation to say 'what a great idea.' "
The site is owned by Seahawks' owner Paul Allen's Vulcan Inc., a management company that invests in science, the arts and movie production, among other ventures.
Pietch said Allen, Microsoft Corp.'s cofounder, had purchased the land in the mid-1990s in hopes of making it a headquarters for his "technology and all of his entities." That plan fell apart, Pietch said, in 2002 when various owners of surrounding properties could not come to terms.
The Seahawks approached Renton about six months ago with the idea of using the Vulcan land for a new, far larger and more modern team facility and training camp headquarters. The Seahawks' current training camp is at Eastern Washington University in Cheney each summer.
"We opened our arms and said, 'Please come,"' Pietch said.
Renton is the home of Boeing's Commercial Airplane headquarters and its 737 and Business Jet production lines where they've added a thousand jobs. It's also home to IKEA's most profitable store in North America. It's going to be the new home of the Federal Reserve Bank now under construction.
And it’s home to the new urban village 'The Landing' with shops, restaurants, apartments and a hotel to be built on former Boeing property where Fry's Electronics flourishes.
"As the region continues to densify, we think that the city is going to be one of the most important urban centers around Lake Washington," Pietch said.
It wasn't too many years ago Renton was hurting. Then city boosters came up with the ad campaign 'Ahead of the Curve.'
Public relations man Michael Hamilton says, "You know we started doing this 7 years ago and it's pretty remarkable when you think that back then we said 'Renton was ahead of the Curve' and it sort of just keeps proving itself."
The move follows an NFL moneysaving trend toward keeping training camps at team facilities rather than the traditional, remote college campus settings. More teams prefer staying home in their more lavish facilities with better field and medical conditions. And players enjoy being able to commute to their in-season homes while at training camp.
Renton is also on the list of places the NBA's SuperSonics will talk to about building a new arena should talks with Seattle on a proposed $220 million upgrade of KeyArena fall through.
In February, majority owner Howard Schultz threatened to possibly move or sell the franchise. He said the Sonics have lost about $60 million in the past five years, and blamed a revenue-sharing lease with the city of Seattle.
"The timing of the Seahawks' announcement and our discussions with the Sonics are coincidental," Pietch said. "The Sonics' talks are entirely independent."
The site the Sonics are considering - along with places in suburban Bellevue east of Seattle - is south of the Seahawks' new headquarters, near a Boeing Co. production plant for its 737 aircraft. The Sonics' arena would be part of a developing entertainment and residential complex known as "The Landing."
Pietch said Renton is waiting for the Sonics to determine whether staying within Seattle city limits will be a viable alternative beyond the 2010 end to its KeyArena lease.
"The Sonics have indicated to us all along their first priority is securing a deal with the city of Seattle," Pietch said. "Our discussions with them have always been, 'If not Seattle, then you should take a look at our site."'
For now, Renton is plenty happy with the economic benefits the new Seahawks' facility - and especially their training camp move - will bring.
"This is another championship-caliber entity moving into the city of Renton," Pietch said.
Home equity credit line recommended as safety net
By Robert J. Bruss
My husband and I owe about $57,000 on our home mortgage at 6.75 percent interest. We have that amount in a money market account, which only earns around 4 percent interest. I think we should take that money to pay off our home loan and never have to worry about mortgage payments again. I am 58 and my husband is 56. He took an early retirement buy-out from his employer, but I still work as a legal secretary because I enjoy getting out of the house each day. Do you think we should pay off our mortgage now? --Marilyn H.
DEAR MARILYN: If paying off your mortgage will deplete your liquid reserves, I suggest you do not rush to pay off your home loan. However, if you have lots of idle cash sitting around the house, and you are 100 percent certain you will never need the $57,000 again, go ahead and prepay your mortgage.
Although that 6.75 percent interest rate might seem high, it really isn't when you consider its after-tax cost. Presuming you itemize tax deductions, your after-tax cost of that mortgage is around 4.75 percent.
The big problem most folks don't think about when prepaying a home mortgage is that they might need that money again in the future. If that happens, especially when they are retired, sick or unemployed, they are often unable to borrow on their home except at loan-shark interest rates and terms.
If you decide to prepay your home loan, before you do so, I highly recommend you obtain a home equity credit line (HELOC) now while you are still working and have adequate income to qualify. That HELOC won't cost anything, except a $50 annual fee, but it will bring peace of mind knowing it is available by just writing a check in case of an emergency.
My husband and I owe about $57,000 on our home mortgage at 6.75 percent interest. We have that amount in a money market account, which only earns around 4 percent interest. I think we should take that money to pay off our home loan and never have to worry about mortgage payments again. I am 58 and my husband is 56. He took an early retirement buy-out from his employer, but I still work as a legal secretary because I enjoy getting out of the house each day. Do you think we should pay off our mortgage now? --Marilyn H.
DEAR MARILYN: If paying off your mortgage will deplete your liquid reserves, I suggest you do not rush to pay off your home loan. However, if you have lots of idle cash sitting around the house, and you are 100 percent certain you will never need the $57,000 again, go ahead and prepay your mortgage.
Although that 6.75 percent interest rate might seem high, it really isn't when you consider its after-tax cost. Presuming you itemize tax deductions, your after-tax cost of that mortgage is around 4.75 percent.
The big problem most folks don't think about when prepaying a home mortgage is that they might need that money again in the future. If that happens, especially when they are retired, sick or unemployed, they are often unable to borrow on their home except at loan-shark interest rates and terms.
If you decide to prepay your home loan, before you do so, I highly recommend you obtain a home equity credit line (HELOC) now while you are still working and have adequate income to qualify. That HELOC won't cost anything, except a $50 annual fee, but it will bring peace of mind knowing it is available by just writing a check in case of an emergency.
Friday, August 11, 2006
What are some tips every home buyer should know to get started?
If you think it's about time you bought a home instead of renting, a little homework before you start looking will increase your odds of finding the best buy for you. Here's how:
Dig up your down payment Know where your down payment cash will come from. If it's coming from stocks, go ahead and sell them. If Aunt Jessie is loaning the money, get it in hand so you are ready to go.
Nail down your financing It's tough to home shop if you don't know what you can afford. Together with a reputable lender, we can help you determine how much home you can afford and which loan program will maximize your buying power. By getting pre-approved for a loan, you'll be a better prospect in the seller's eyes.
Take your time Don't jump at the first home you see. Let us introduce you to different areas and home types to see what suits your needs the best. Do your homework Once you've found the home you want, ask us to run a competitive market analysis of other homes that have recently sold, so you'll be able to make a sensible offer to purchase.
Enjoy! With expert assistance and a positive attitude, home shopping can be fun and rewarding.
Monday, August 07, 2006
Three Easy Steps toward a Happy Credit Report
During the moving process it’s very convenient to use credit for everything from your home loan to your furniture financing to those fluffy new towels. While you’re busy filling out application after application, inquiries are being added to your credit history! Too many inquiries can lower your credit score and prevent you from obtaining future credit at the best rates possible.
By following these three simple steps, both you and your credit report can emerge from the moving process in a healthy state:
Watch out for department store credit card offers
Department stores love to promote their store cards. Oftentimes, a discount is offered if you apply for a card at the time of purchase. Don’t forget--when you apply for their card an inquiry will be placed on your credit report. And, if you qualify for the card you will have another revolving account on your credit report. For some, another revolving account won’t hurt their credit, and might even help it. But if you have too many revolving accounts another card could negatively impact your credit standing.
Beware of "piggy-back" offers
Retail stores have been known to place “piggy-back” offers on their credit applications. These are typically an offer for another credit card, in addition to the regular store card. To tempt you to apply for the additional card the store will usually have a special promotion, such as a store gift certificate.
- A Lesson from RobertRobert, a 25-year old software engineer, applied for an electronics department store card while he was purchasing a stereo for his new apartment. There was an offer on the application to receive a $25 store gift certificate if he also applied for a bank credit card. “All I had to do was sign another line on the form and I applied for the card and got the gift certificate,” said Robert, “but I didn’t think about what another credit card would do to my credit.” Remember that if you’re approved for both cards, two new accounts will be added to your credit report.
Take care when shopping around for mortgage rates
While it’s a good idea to shop around for the best mortgage rate you can find, keep in mind that lenders will check your credit before they can decide on your loan terms. This credit check will place an inquiry on your credit report. Many scoring models combine all mortgage lender inquiries within a 30-day period into one inquiry. So, try to limit your shopping time to 30 days.
Moving to a new home is an exciting event, and your credit plays a major role in the moving process. With a little care and preparation you can ensure that your move is a credit-healthy experience.
Thursday, August 03, 2006
Prequalification vs Preapproval
There are some key differences between prequalification and preapproval for a loan that you need to be aware of. Loan prequalification is a simple process. It takes into account very basic information regarding your financial status and gives you an amount for which you may qualify. This can be done strictly on a verbal level or electronically over the Internet. The prequalified amount is based solely on the information you provide. In most markets, prequalified buyers usually hold little clout compared to preapproved buyers due to the fact that the information given during the prequalification process is not thoroughly investigated and therefore may be unreliable. Where a preapproved buyer is actually approved for a loan of a certain amount, a prequalified buyer is only told that they might be approved for a certain amount.
Preapproval is a much more involved process. The lender will take all pertinent information regarding your finances and perform an extensive check on your current financial status. This will ultimately give you the exact amount that you will be eligible for (depending on what type of loan you decide to go with). Being preapproved lets the seller know that you have gone through an extensive financial background check and there should be no unexpected obstacles to buying the home. You can see how being preapproved would be more attractive to a seller than just being prequalified.
The type of mortgage you apply for will depend on many factors, but the majority of that decision will be based on your ability to pay a monthly installment. If you can only afford a $1000 dollar a month payment, you are not going to go out and buy a $250,000 home, unless you have a large sum of money set aside to make a sizable down payment! Financial planners say that you shouldn't pay more than 28% of your gross income for housing (that includes principal, interest, taxes, and insurance). Depending on your debt to income ratio, that percentage may change.
Once you have determined what you can afford, the next step is to choose a mortgage plan. There are many different mortgages out there, so take some time and explore all of the possible plans for which you qualify. You could save yourself thousands of dollars in the long run!
Your agent can save you time and money by being your professional guide through the entire loan process. They will be able to counsel you on the advantages and disadvantages of certain types of loans and help you understand the "real" cost of a mortgage. Your agent will also act as your personal advocate and liaison between you and the lender as you proceed through the approval process and closing by working with your lender on a regular basis.
Preapproval is a much more involved process. The lender will take all pertinent information regarding your finances and perform an extensive check on your current financial status. This will ultimately give you the exact amount that you will be eligible for (depending on what type of loan you decide to go with). Being preapproved lets the seller know that you have gone through an extensive financial background check and there should be no unexpected obstacles to buying the home. You can see how being preapproved would be more attractive to a seller than just being prequalified.
The type of mortgage you apply for will depend on many factors, but the majority of that decision will be based on your ability to pay a monthly installment. If you can only afford a $1000 dollar a month payment, you are not going to go out and buy a $250,000 home, unless you have a large sum of money set aside to make a sizable down payment! Financial planners say that you shouldn't pay more than 28% of your gross income for housing (that includes principal, interest, taxes, and insurance). Depending on your debt to income ratio, that percentage may change.
Once you have determined what you can afford, the next step is to choose a mortgage plan. There are many different mortgages out there, so take some time and explore all of the possible plans for which you qualify. You could save yourself thousands of dollars in the long run!
Your agent can save you time and money by being your professional guide through the entire loan process. They will be able to counsel you on the advantages and disadvantages of certain types of loans and help you understand the "real" cost of a mortgage. Your agent will also act as your personal advocate and liaison between you and the lender as you proceed through the approval process and closing by working with your lender on a regular basis.
Wednesday, August 02, 2006
How do I prepare the house for sale?
First and foremost, put it in the best condition possible, especially if you are in a market with few buyers and lots of homes for sale. That means taking care of any major repairs that could deter a buyer (such as replacing any broken windows or replacing a leaky roof) if you can afford it. Next, work on your home's curb appeal. Make sure your landscape is pristine. Mow the grass, clean up any debris and weed the garden beds. Plant a few annual flowers near the entrance or in pots to be placed by the door. Other quick fixes that don't cost a lot of money but can help you get top dollar for your home:
.Clean the windows and make sure the paint is not chipped or flaking.
.Be sure that the doorbell works.
.Clean and freshen up rooms, furnishings, floors, walls and ceilings. Make sure that bathrooms and kitchens are spotless.
.Organize closets.
.Make sure the basic appliances and fixtures work. Replace leaky faucets and frayed cords.
.Eliminate the source of any bad smells, such as the kitty box. Use air freshener or bake a batch of cookies before your open house to ensure that the house smells inviting.
.Invest in a couple of vases of fresh flowers to place around the house and next to any information about the house you have prepared for buyers.
.Clean the windows and make sure the paint is not chipped or flaking.
.Be sure that the doorbell works.
.Clean and freshen up rooms, furnishings, floors, walls and ceilings. Make sure that bathrooms and kitchens are spotless.
.Organize closets.
.Make sure the basic appliances and fixtures work. Replace leaky faucets and frayed cords.
.Eliminate the source of any bad smells, such as the kitty box. Use air freshener or bake a batch of cookies before your open house to ensure that the house smells inviting.
.Invest in a couple of vases of fresh flowers to place around the house and next to any information about the house you have prepared for buyers.
Saturday, April 01, 2006
How To Use Today's Market To Your Unfair Advantage
Last October, NAR's chief economist, David Lereah, said, "An uptrend in mortgage interest rates will cause some slowing of the sales pace, but we forecast 2006 to be the second highest year on record and housing will continue to support the overall economy."
That's particularly good news if you are a homeowner who has been thinking about selling your home but held off for fear you wouldn't be able to buy another one. Bear in mind, the NAR's predictions apply to the nation as a whole. Specific areas, however, have their own market dynamics. You'll do well to work with a real estate professional (give me a call!) who can tell you exactly what's going on in the areas you want to sell from and buy into.
That said, when a market starts to shift from the seller's advantage to the buyer's, moving up to a new home actually becomes easier. Here's why:
1: A slight shift to the buyer's advantage isn't likely to decrease the value of your current home. Typically, the rate of your home's appreciation will just slow down some from what you've been used to in a strong seller's market. You're still in a good position to convert the equity from your current home into your next home.
2: You'll find more homes on the market to choose from. Rather than settling for the only home you can get a contract on, you have more opportunity to find a home you really want.
3: Sellers will be more likely to accept "contingencies" with your offer-such as a satisfactory home inspection; sale of your old home; an appraisal that supports your contract price; and/or your ability to obtain financing with specified terms. You may also be able to get more concessions-move-in date, conveyances, etc.-that don't usually come into play in a strong seller's market. Remember, though, as a seller you may have to provide some of the same types of concessions to get your home sold at the price you want in a timely way.
4: In a "slower" market, there's less competition for the services of appraisers, title insurers, and other "third-parties" to the transaction. They're likely to render their services more quickly, allowing you to sell your old home and purchase your new one with less waiting time
That's particularly good news if you are a homeowner who has been thinking about selling your home but held off for fear you wouldn't be able to buy another one. Bear in mind, the NAR's predictions apply to the nation as a whole. Specific areas, however, have their own market dynamics. You'll do well to work with a real estate professional (give me a call!) who can tell you exactly what's going on in the areas you want to sell from and buy into.
That said, when a market starts to shift from the seller's advantage to the buyer's, moving up to a new home actually becomes easier. Here's why:
1: A slight shift to the buyer's advantage isn't likely to decrease the value of your current home. Typically, the rate of your home's appreciation will just slow down some from what you've been used to in a strong seller's market. You're still in a good position to convert the equity from your current home into your next home.
2: You'll find more homes on the market to choose from. Rather than settling for the only home you can get a contract on, you have more opportunity to find a home you really want.
3: Sellers will be more likely to accept "contingencies" with your offer-such as a satisfactory home inspection; sale of your old home; an appraisal that supports your contract price; and/or your ability to obtain financing with specified terms. You may also be able to get more concessions-move-in date, conveyances, etc.-that don't usually come into play in a strong seller's market. Remember, though, as a seller you may have to provide some of the same types of concessions to get your home sold at the price you want in a timely way.
4: In a "slower" market, there's less competition for the services of appraisers, title insurers, and other "third-parties" to the transaction. They're likely to render their services more quickly, allowing you to sell your old home and purchase your new one with less waiting time
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