Gabrielle

A Great Lender Helps From Start to Finish, Especially in a Short Sale

October 11, 2015 by Gabrielle

One of the very first steps in the home buying process is determining how a Buyer will pay for their new home. Not only must a Buyer determine much they can afford, but how an offer must be structured–whether closing costs must be paid by a Seller, gift funds will be used for a down payment, how much of a down payment will be paid, and so on.

Having a great lender as part of the Buying team is critical, but especially so with short sale purchases.

It can be difficult for a lender to help a Buyer determine exactly how much they might need to close the sale. A good faith estimate on the front end of a short sale might not be appropriate; interest rates, dates of closing, and other terms may change before lender approval occurs several months later.

Will the Buyer have sufficient funds to close? Will they have sufficient reserves; will they be comfortable with their payment?

A GREAT lender prepares an estimate of costs at the beginning, then meets periodically with the Buyer throughout the process, updating them on the changes and making sure they understand the numbers. They help the transaction succeed – from start to finish.

Working with an agent experienced in both listing and assisting buyers with short sales … and considering their recommendations for a great short sale lender will ensure success and confidence as a buyer proceeds through the process.

Questions to Ask a Loan Officer

October 8, 2015 by Gabrielle

From my own practice, I know that Buyers often believe that they have the knowledge to make an informed choice in choose a loan officer or mortgage. Buyers are smart folks — they’ve done their homework; they’ve formed a relationship with their own bank; they feel that they can compare apples-to-apples when shopping for a mortgage.

In addition to comparing rates and costs, however, Buyers need to also ask these important questions of a mortgage professional:

Can you really close this purchase?
Will you provide the loan documents to escrow 2-3 days ahead of the closing date so that my purchase can close on time?
What is the minimum number of days you need to close this on time?
Will you call me back within a hour (or so) when I have a question?
Will you be in close contact with my Broker/Agent so that she knows what’s going on?
Will you explain the numbers to me that I don’t understand?
How many new purchase mortgages have you completed in the last year? What types? (i.e., do you have experience with VA loans, FHA, rehab loans, etc)
Will you meet or beat the builder’s preferred lender’s rates or current offer?
If you’re not a bank, to whom do you anticipate that your company typically sell my mortgage?
Will you be my trusted advisor, not just for this purchase, but going forward from here so that I know when it might be wise to consider refinancing? (or whatever)

See, it’s not just about rates and closing costs. It’s about making a wise decision based on the knowledge of your loan officer. I have a short list of trusted mortgage folks with whom I’ve worked for years! It’s a short list, because it’s very hard to find excellent loan officers! Both of these mortgage professionals do what they say, when they say, with the terms they say. They stay in touch with me so I can be of service to you. They stay in touch with you so you know what’s going on. Click here to visit the page that contains the names of these two ladies.

There are only two names on the list at the moment because I’m very picky. These two are consistent, and they’re always there for my clients and for me. I like that … It’s all about trust.

Part II–New Construction In and Around Auburn, WA

September 30, 2015 by Gabrielle

This post was originally published in March of 2012! I’ve recycled the post as there is still significant new construction in and around Auburn, WA, although many of these subdivisions are now completed. However, each of these builders continues to build homes locally and should be considered when buying new construction!

In Part I of this post, I reviewed new construction and communities by DR Horton, Soundbuilt Homes, Schneider Family Homes, and Conner Homes. Because new construction is such a huge part of our south King County and north Pierce County Auburn location, I’ve split my quick overview into two posts.

In addition, you’ll find a few more tips about buying new construction in the post 20 Tips to Buying New Construction.

Premier Homes

I haven’t had a chance to work with any of the Premier Homes folks yet, but wanted to include them in this list as they have a nice community (Northlake) just barely southeast of Lakeland Hills in the Pierce County side of Auburn. At the same location, Lennar Corporation recently acquired the remaining home sites at Northlake and is now building them as Woodland Meadows. I’ve toured a couple of new construction Premier Homes over the last few weeks and they are beautifully finished and a good option for someone shopping in the upper $200’s. A quick drive through the neighborhood last weekend showed lots of activity on the Lennar home sites!

Polygon Homes

Polygon’s home plans have long been some of my very favorites. They’re wonderful folks to work with too! In addition, the Polygon builder team has one of the best home warranties, supporting their homes door-to-door for 3 years (with an optional 2 additional years at the Buyer’s cost), with a total of 10 years for the home structure. Coho Creek in the Covington area (just behind Kentwood High School) has homes available from the mid $200’s up to the low $300’s ranging from about 1,700-2,500 square feet.

Near the south edge of Auburn in Bonney Lake, you’ll find The Estates at Lakeland Hills with slightly larger homes ranging from the higher $200’s up into the mid- $300’s. There aren’t too many of these homesites left, however; The Estates is just about sold-out!

Richmond American

Richmond American recently purchased SDC Homes and appears to be continuing with many of the original SDC home plans and finishes. In addition, Pinnacle Estates is a gorgeous Richmond American community in the Lakeland area of Auburn—BIG beautiful homes with awesome views that sit up high on the east and southern ridge of the area. Note that Richmond American, in my opinion, probably builds some of the biggest homes for the money that I’ve seen, along with their signature art niche’s in the entry halls of most of their homes. Really attractive!

Henley USA (MainVue Homes)

MainVue developments are springing up all over the place. Their newest development on the east hill, Kendall Ridge, is a gorgeous site – incredible views of the Cascade Foothills and Mount Rainier are available from the sites that site on the Ridge. (As an aside, the photo that comprises the banner of my Web site was taken from this development a couple of years ago – when there was just dirt!)

The MainVue floor plans are unique, gorgeous, and truly a breath of fresh air with huge glass doors framing their outdoor rooms (covered patios). Prices are a bit higher than some of the other builders, but with their less common floor plans, appear to be attracting quite a few avid followers. Expect prices to be in the mid $300’s to mid-$400’s at most MainVue communities.

Edgeview

When driving anywhere near Lakeland Hills, it would be hard to miss the many bright red signs pointing to the new Edgeview Homes community on the far east side of the area …just off of of Evergreen Way and Kersey Way. Edgeview is built high up a on ridge, and comprises probably a couple hundred home sites, community parks, playgrounds and even an off-leash dog park (yay!!). The largest home plan in the community is just over 2400 square feet, and most of the home sites are somewhat on the smaller side – maybe not important when all of the parks and playgrounds are factored in. Prices range from the low $200’s to mid/upper $200’s.

Covington Pointe

I haven’t had a chance to visit Covington Pointe, but really need to! This is a rare 55+ community, located conveniently near the Multicare Center just off of 180th. The community is gated and features gorgeous one-level homes (no stairs!). I’ve included it here because I haven’t seen any new 55+ communities for quite some time.

Kendall Homes

Just outside of the Auburn area are three communities being built by Kendall Homes. I wanted to include them in this list, however, as I did just assist a buyer in their purchase of a new Kendall Homes house … and it was a great experience! Of note, especially, was the willingness of the folks at Kendall Homes to make some slight modifications for my client. They removed a wall, repositioned a door, modified a shower enclosure, and, outside of the contract, allowed him to purchase his range and have it installed just in time to satisfy the final appraisal and inspection. For communities in the area, visit Mountain View in Maple Valley (just off Witte Road), and 132nd Court and Vermilion.

Quadrant Homes

Unfortunately, there aren’t any Quadrant communities currently being built in Auburn that I can see. I’ve really been a fan of their new Revolution series; an update to their offerings that was long overdue in our area. There are a couple of small Quadrant communities in nearby Kent, along with a few homes here and there in other locations. Be sure to ask about their new homes when you talk with your agent. I think you’ll be impressed!

Part I — New Construction In and Around Auburn WA

Should You Refinance Your Home?

September 30, 2015 by Gabrielle

If you feel you have sufficient income to continue making payments on your home, but need to lower the payments, one of the best choices — providing current interest rates are justifiably less than your existing rate — is to refinance the home.

By refinancing, you may be able to remain with your existing lender, or perhaps take advantage of better terms offered by another.

In addition to examining the current interest rates, the next question a homeowner must face when pursuing a refinancing option surround the property itself: Is the value of the property sufficient to support a new, replacement loan? Remember that an appraisal for the property will be done by your lender and must reflect that the loan amount sought is no more than the current guideline for lending. In a conventional loan, that generally means that the loan can be for no more than about 95% of the appraisal amount, based on your particular loan. At the moment, FHA will loan up to 96.5% of the home’s value.

Finally, you must determine whether your current credit position will support a new, replacement, loan. If you’ve fallen behind in your payments on your mortgage or perhaps on other debts, it may be difficult to qualify for a refinance mortgage.

The information presented on this Site should not be construed as legal or financial advice. You are advised to seek consultation with a qualified Attorney and Accountant. ©Gabrielle Nemes, 2010

Part 1 – New Construction In and Around Auburn WA

September 30, 2015 by Gabrielle

Acquiring a new home is thrilling for every Buyer, but new construction, in particular, maintains an exceptionally high level of anticipation, followed by what seem to be endless delays and frustration, and then finally culminating in a near fever-pitch of excitement.

In addition to the shiny new finishes and new house smell, of course, new construction is attractive to many buyers because of builder financing and low down payment incentives, extended warranties, and the desire to decorate a home from the ground up, choosing plans, colors, cabinets, counters, and flooring. Not to mention that a contract written for new construction will close, unlike so many of the short sale listings that are prevalent in our area. There’s a sure thing happening in new construction … less so with distressed property listings.

It can’t be stressed often enough, however — If you have a plan to purchase new construction, whenever possible, visit the sites for the first time with your own broker/agent, who will register you in the community and help you obtain all of the important information. Your agent can then work on your behalf from the very beginning to be of help to you as you buy the home of your dreams.

If you can’t, or don’t, go with your agent the first time around, be sure to let the site representative know that you are working with your own broker/agent and that the agent will contact the site rep ASAP on your behalf. Then get in touch with your agent before visiting the site again and again!

While I haven’t worked from start to finish with each of these builders, I’ve visited a most of these communities, helped Buyers through the new construction process, and had a chance to talk with many of the site representatives. Over the years, I’ve resold many many of their homes as well!

Here’s a brief summary of new construction in the area and in no particular order; click the builder or community name to visit the associated Web site. Because there are SO many new construction options in this south King/north Pierce county area, I’ve split this list into a couple of different posts. Be sure to refer also to Part 2 – New Construction In and Around the Auburn WA Area, and especially 20 Tips to Buying a New Construction Home, also to be posted in the next few days.

One quick addition note – the builders and communities in this list are not custom build sites – all are based on preapproved plans and typically few changes can be made to the plans, although all offer a limited number of upgrades so that the look of the home can be personalized.

DR Horton

One of the biggest builders in the area is DR Horton. Prolific, that’s for sure! DR Horton tends to build similar plans in almost every community I’ve visited and can be a very good choice especially for first time homebuyers. In my experience, they tend to have great financing incentives packaged with their listings, which can be attractive if you are comfortable working with the DR Horton preferred lender.

There are a couple of DR Horton communities near Auburn – one on Auburn’s west hill (Lakepoint) with prices in the low $200’s, and another huge community in Covington (CornerStone), just past the Highway 18 and Kent Kangley interchange with prices in the higher $200’s to mid $300’s.

Schneider Family Homes

The folks at Schneider Family Homes are definitely one of my favorite builders for reasonable prices with nice quality finishes. I’ve worked with a buyer in the past who purchased a new Schneider home—it was a wonderful experience and those buyers are still thrilled with their house, and I’ve been involved with resales of several as well. While the folks at Schneider homes tend to build just a few homes at a time in each community, there are typically a few homes available in each neighborhood. You’ll find lovely true hardwood floors, solid granite surfaces and thoughtful designs. Most Schneider homes in the greater Auburn area tend to be priced in the low-mid $300’s, from about 2,200 square feet and above.

Soundbuilt Homes

Soundbuilt Homes is another busy busy builder in the area with three Auburn communities currently under construction. Their basic price point is really attractive to many buyers, offering generous size for the $$.

Brandon Meadows may be their newest community – located on 312th just past the 132nd and 312th junction. Similar to the newest MainVue community almost across the street on 312th/132nd, this community’s property was cleared several years ago just before the housing decline in 2009 in our area. From the Brandon Meadows Web site, it looks as though pricing will be from the mid $200’s up into the low $300’s.

Two additional sites for Soundbuilt in Auburn are the small Sterling Court, located at about 304th and 121st with similar pricing, and Terrace View, a townhouse community located in Lakeland Hills.

Conner Homes

Conner Homes is a local builder with some delightful home plans and a couple of communities in the Auburn area. They tend to build about 20 houses at a time in each community, which means each build gets personal attention and the communities are not quite as “rapid fire” as some others. I like their finishes and floor plans a lot!

Monterey Park in the Auburn valley (just behind one of the Carpinito Brother farms) has both single family and duplex style homes ranging from about $175k to the high $200’s.

Lakeland East in the Lakeland Hills area of Auburn features homes from about 1,300-3,300 square feet (quite a spread!) fitting in to almost every buyer’s pocketbook.

Staging Without Spending — One Key to Home Selling Success!

September 30, 2015 by Gabrielle

Staging Without Spending — One Key to Home Selling Success!

Effective staging is a tremendous benefit when needing or wanting to sell a home. But professional staging can be expensive. Don’t get me wrong — professional stagers do absolutely amazing jobs! But sometimes the money’s just not there to hire a stager, buy a bunch of staging materials or rent snazzy furniture.

Although the real estate market seems to be recovering slightly, most sellers still need to capture every penny possible from the sale of their existing home — perhaps to gain maximum sufficient funds to purchase a new place or perhaps to attract a sufficient price will keep their sale from falling into the short sale category.

Simple clean-up and rearranging of furniture can do wonders without spending much more than the cost of soap and water, a few boxes to store extra clutter and possessions, and maybe the short-term rental of a storage unit.

Removing worn throw rugs, dingy pillows and bedspreads is a tremendously effective tool. Sometimes merely washing and ironing (yes … that word) is sufficient. A bottle of bleach and a can of my favorite “Barkeepers Friend” can make kitchens and bathrooms really shine. Remove all of those refrigerator magnets, canisters, coffee pots, grinders, toasters, etc. as they just look like clutter when photographed. (And a good listing agent should take lots of photos of your house to show off its best features.)

A seller and I often spend less than $250 when preparing a home for sale. For less than about $50, I always buy a few brand new thick fluffy towels, color-appropriate shower curtains, and candles to work wonders in bathrooms. Add a couple of ribbons around the towels for a model-home look.

A visit to the local thrift store can provide a couple of big toys (scrubbed sparkling clean, of course) to add personality to an empty bedroom. A gallon or two of mis-mixed neutral-toned paint and a couple of hours can freshen up a stale entry. Don’t forget the discount stores such as Big Lots!, TJ Maxx, Marshalls, HomeGoods when shopping for linens and impact art pieces. Check out the clearance aisles at Home Depot or Lowe’s if you need to replace or update light fixtures or cabinet pulls. I’ve picked up small tables and then spray painted them for entry accents.

And don’t forget the front door. My favorite is to paint the door a deep charcoal or black. Then put a couple of pots of live flowers near the front door. Not just greenery (of course it depends on the time of year), but some nice yellows, reds, or purples sitting on the clean front porch near that freshly painted front door — just does wonders.

I wish I’d have taken more “before” pictures from some of the homes I’ve sold, but did scrounge up a few before and after photos. Maybe these few photos will give you a few ideas.

Before (nice kitchen & well kept, but look at the clutter’y fridge and the stuff above the cupboards.) Here’s the same kitchen after decluttering. Still a few necessary things on the counter … but look at the difference! Could we have removed the wallpaper border? Yes … but the owner really pushed back and I wanted to pick my battles.
Another before and after kitchen. Of course it helped tremendously to remove the spent roses from the room …but even removing the extra microwave cart and adding a little breakfast table to the end made a huge difference!
Here’s another before and after. One of those difficult young teen’s rooms where stuff gets thrown everywhere. Tied up the curtains, removed the extra dresser and held the threat of extra chores and homework over the young owner’s head should the place get cluttered again during the selling process. You can’t see the posters on that were on the wall beside the bed and taped to the closet doors. Those were taken down, with the tape residue also scrubbed off.
Even outside small organizational efforts can be amazing. Check out these before and after deck photos. It was raining during the “before” photo and sunny during the “after” photo. We trimmed up the overgrown bush in the corner, rearranged the BBQ area, swept the roof overhang and rearranged the deck furniture so it looked tidy.
I wish I had a couple of the “before” photos of this bedroom and bathroom. Owned by a single guy (what fun it was to work with him, actually! He was SO appreciative of everything I did to help him get his little condo ready for sale!) Take it on good faith … with all of the sports posters and “stuff” that he’d carefully collected over the years, the place needed a bit of effort to get it market ready. This “blue” bedroom was a bit of a challenge, but adding a new bedspread and pictures cooled it down a bit without repainting. (By the way … we also removed the artsy “nudes” in the bathrooms. I could just envision a youngster’s pointed questions!) The place sold for list price .. and very quickly once it was ready and during a time in the down market when it was VERY difficult to sell a condo!

In almost every house, rearranging furniture and gathering all of the collectibles into a single “themed” room also goes a long ways. Prior to listing, walk through the house and notice how many things you’ve gathered that are similar — little ceramic boats, boat pictures, metal sailboats. We all tend to have things we love, but then we spread them out all over. Gather them together into a boat-themed bathroom or bedroom.

Sometimes you can Stage Without Spending — One Key to Home Selling Success!

Think Housing Prices Are Too High?

September 30, 2015 by Gabrielle

I have a client that loves to send me little jokes and ditties every now and then. He’s just slightly older than I am and loves to pontificate about how prices are outrageous and how he can’t imagine how people can afford to live any more.

In some respects, of course, he’s absolutely right. But in others, it’s amazing how little prices have gone up.

Today he sent me a list of a few things and their prices in 1955. Of note, of course, are prices like gasoline – 23 cents a gallon; milk – 85 cents a gallon; eggs – 61 cents a dozen.

A bit of checking around and I see this list, thanks to www.fiftiesweb.com:

House: $22,000
Average income: $4,137
Ford car: $1606-$2944
Milk: $.92
Gas: $.23
Bread $.18
Postage stamp: $.03
Sirloin chops: $ .69 lb.
Pot Roast: $.43 lb.
Eggs, doz.: $.61
Coffee: $.93 lb.
Milk, ½ gal. $.43
Potatoes, 10 lb. bag: $.53
Starkist Tuna, 6 ½ oz. can: $.25 lb.
Oreo cookies, 11¾ .oz pkg: $.39
Potato Salad, pint: $.29
Cracker Jack, 24 pac: $1.49
Apple cider,½ gal.: $.49
Gum Drops, 1½ lb. pkg: $.29
Ivory Soap, 2 bars: $.29
Mickey Mouse lunchbox: $.88
Slinky: $.88
Nylons, pair: $1.00
Home permanent: $1.50
Baseball Glove: $9.95

As I reviewed this list, I’m thinking … wow, some of these haven’t gone up much at all. I mean, last week’s ad for potatoes was something like $1.48 for a ten pound bag (about 3 times more than 1955); milk – $2.59 a gallon (oof, that’s a big price increase: about 6 times, although I’m pretty sure I see milk for $1.99 a gallon now and then) eggs were something like $1.50 a dozen or so (can’t find an ad anywhere) – up about 2.5 times.

Gas in my area (just south of Seattle) is right around $3.30 a gallon – up 14.3 times (that’s a gotcha!)

Anyway, then I decided to look at the price of housing. According to this chart, the price of a home in 1955 was about 5.3 times the average income.

Hmmmmmmmmmmm

Looking at local statistics, Washington state reports that the 2011 median income for King County (basically the greater Seattle area) is projected to be $66,294. Median house price for sold homes in King County right now? The Northwest Multiple Listing Service (NWMLS) says: $343,700 as of end of November. 5.18 times the median income. Pretty close to 1955.

Now, 1955 is just slightly before my memory (I was two in 1955) … I have memories of some of these though! I wonder what my grandchildren born in 2010 will think when looking back at prices when they’re 55.

Enough analysis this time of the morning!

Preparing Your House For Sale in Auburn, WA … or Anywhere!

September 30, 2015 by Gabrielle

Preparing Your House For Sale in Auburn, WA … or Anywhere!

As with so many of the good things we want in life, selling a house is just plain hard work. Your house will be examined through a looking glass, so it’s critically important that it be well prepared, well priced, and well represented. Here are just a few of the steps necessary before hanging that For Sale sign:

House Prep

While this sometimes feels like an almost insurmountable task, carefully preparing your house is definitely the first step in successfully selling a home in today’s market. If you’ve ever taken the time to tour carefully staged model homes, you are likely aware that your home must compete on a very high level to quickly sell and pull the numbers you know your house is worth.

Basics

Start with these basic steps:

Declutter
Clean the closets
Depersonalize
Clean, clean, clean

Your house must sparkle, both inside and out. Remember that you’ll be packing up to move anyway … so start by going through the closets, the cupboards, removing the chatskies that have gathered in the bookcases, shelves and tables, and so on.

And don’t spare the furniture polish and glass cleaner. Dirty windows are definitely deal killers for so many people. They want to see bright clear views of the yard and garden.

Finally, don’t forget the outside! From the front door to the driveway to the fences. Be sure everything is neat and tidy. Bring in fresh bark if needed; mow the lawn; trim the hedges … get it?

Staging

It isn’t always necessary to hire a professional staging company to make your home look like a model home, but it is critical that your home display itself with an eye for design and presentation. If you can’t do this by yourself, at least start by bringing in your real estate broker (that’d be me!) and we’ll go through some use what you have tips to get started. And talk about professional staging, too!

What’s Selling?

Take a look at what’s actually selling in your area. Is your neighborhood still surrounded by foreclosures? How about new construction? Big houses? Smaller houses? Remodels? Each of these factors point to the type of marketing approach your home may require.

Pricing

One of the most common comments I hear when sitting with “wannabe” Sellers for the very first time is “The neighbor just sold their house for $$!” In fact, this comment is often the reason we’re sitting together at all. So how did that happen? In part because they knew the numbers.

When pricing your house, remember that your house is being weighed against every other house on the market. Therefore, your house needs to be the best value (in addition to looking the best, of course). You’ll be confident in your house price if you know these numbers:

Feature & Presentation Comparisons
$ per Square Foot Comparisons
Neighborhood Comparisons
Assessment to Sale Price Comparisons
Historical Data: Appreciation/Depreciation
Local Economic Factors

While not all of this data is easy to find, each number plays a role in determining what the optimum sale price of your home should be.

Timing

Yes, timing truly is important, but it’s not the end-all. While you need to know the timing trends for your area, remember that not every house sells only in the Spring and Summer. People have to move all times of the year. Your home may sell faster during the hot moments, but don’t panic if you’re not quite ready when the experts tell you to get going.

Marketing

Presenting your home to potential buyers requires knowledge of how buyers find houses and what they see when they do find it. It’s not just about hanging the sign, it’s about courting the right folks in the right way, and that includes both potential buyers and potential real estate brokers:

Photos
Online Presence
MLS Listing
Video Tours
Flyers

When you’re ready to think about selling your home, give me a call. We’ll go through all of the steps and information necessary when preparing your house for sale in Auburn, WA … or Anywhere!

Buy a House With Less Than 20% Down Payment

September 25, 2015 by Gabrielle

It is possible to buy a house with less than a 20% down payment.

One of the most frequent and often biggest hurdles when assisting potential home buyers is their lack of a 20% down payment, combined with their desire or need to keep their payment as low as possible. Typically their credit scores are pretty good, say mid 700’s or so, and they otherwise qualify nicely for a mortgage. They come to me wanting to buy a house, but thinking it’s not at all possible because they believe their only choice is to buy with using a low down payment FHA loan and then pay the staggering and never-ending mortgage insurance.

Over the past several months, the loan officer with whom I work most frequently has suggested to some of my clients that they consider using lender-paid private mortgage insurance rather than trying to save an additional 10% or even 15% in order to buy with a 20% down payment. The lender-paid option bumps their interest rate up an eighth or quarter of a percent, but still brings their monthly payment in less than it would be were they to pay mortgage insurance each month. That means they can shop for a bit more house and still keep their monthly payments at goal!

There are a number of calculators available that can help you determine whether it makes sense to use the lender-paid mortgage insurance option. For example, FHA.com includes a very helpful calculator that includes a mortgage insurance payment. Here’s a typical scenario in my area:

House price: $200,000
Property taxes: about $2,600 a year, which is 1.3% of the price or approximately $216 a month
Homeowner’s Insurance: about $600 a year, or $50 a month
Typical minimum 3.5% down payment
With good credit of say mid-700’s, interest rate might in in the neighborhood of say, 4% or so (or maybe lower … or maybe higher depending on the day)

Anyway … plug all of that in to the FHA calculator and you’ll see a monthly payment of approximately $1,400 a month.

Now assume lender-paid private mortgage insurance. Using my favorite loan officer’s calculator with the same approximate scenario, an interest rate of maybe 4.25% and down payment of, say, 5%, this brings the payment to just over $1,200 a month! Higher interest rate, lower payment.

Remember that I’m using a very rough scenario here and that there are certainly other factors to consider … but it’s important to remember that there ARE options and you can buy with less down payment than you think. It is possible to buy a house with less than a 20% down payment.

(By the way, in my area there are also programs that can assist you should you not have sufficient down payment … but that’s a subject for another blog post.)

Here’s the disclaimer: I’m not a loan officer, I’m a Realtor®. You absolutely need to talk to a lender to get the real numbers. I love my loan officer, Amanda Finnegan, especially since she’s honest, accessible, well qualified, and her bank (HomeStreet Bank), typically doesn’t sell their loans.

(Amanda’s temporarily out on maternity leave, but’ll be back in early December … contact her anyway, or contact me.)

How Much House Can You Afford?

September 22, 2015 by Gabrielle

Like most agents, I talk almost daily with folks considering a home purchase. We talk through all of their wants and picture their dream house in vivid color.

Within a very few minutes, however, I start asking the tough questions:

“How much can you afford?”
“Have you been preapproved?”
“With whom?”
“May I refer a few lenders to you that do outstanding work–they’ll help us nail down exactly how much house you can buy, and get you preapproved for a loan so you’re ready to go!”

… and so on.

These questions aren’t designed to be intrusive … they’re merely a way of helping me understand exactly where a Buyer really is in their purchase decision, to help them determine their balance point between their desired lifestyle and their desire to purchase a home … And, of course, to help them understand that this first step — the money side — is SO important!

Now, generally, my very first question is answered by: “I want my payment to be no more than $, although I could possibly stretch up to $.”

I’m not a mortgage officer, but it’s certainly part of my initial counseling session to help Buyers get started and to help them assess the balance point between their desired lifestyle and your desire to purchase a home. The question of “how much can you afford?” is just the first step. While providing them with a general feel for what they’ve described, I’ve also assembled a few tools that empower the Buyer to do a little research on their own.

With thanks to the folks at MortgageLoan.com, included on this site is a useful set of calculators to assist you in determining what your payments might be with various sorts of loans.

In addition, I’ve developed a handy little Excel-based FHA calculator that I’ll be happy to send to you–just give me a call (206.300.8421) or shoot me an e-mail message and I’ll get it right out to you.

A Great Lender Helps From Start to Finish, Especially in a Short Sale

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Questions to Ask a Loan Officer

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Part II–New Construction In and Around Auburn, WA

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Should You Refinance Your Home?

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Part 1 – New Construction In and Around Auburn WA

DR Horton

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Staging Without Spending — One Key to Home Selling Success!

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Think Housing Prices Are Too High?

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Preparing Your House For Sale in Auburn, WA … or Anywhere!

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Buy a House With Less Than 20% Down Payment

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How Much House Can You Afford?

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