4 Ways Buyers Can Mess Up a Loan Approval

This happens all the time.  Home buyers have gotten approved for a mortgage and now they’re just waiting to make it to the closing table.

It is just a waiting game.  Don’t throw your loan approval into jeopardy by making one of these common mistakes:

1. Making a big purchase: Avoid making major purchases, like buying a new car or furniture, until after they close on the home. Big purchases could change the buyer’s debt-to-income ratio that the lender used to approve the buyer’s home loan and could throw the approval into jeopardy.
2. Opening new credit: Now isn’t the time to open up any new credit cards. Don’t do it!
3. Missing any payments: You need to be extra vigilant about paying all their bills on time, even if they’re disputing one.
4. Cashing out: Avoid any transfers of large sums of money between your bank accounts or making any undocumented deposits — both of which could send up “red flags” to your lender.

Seattle ninth-best U.S. market for home sellers: Report

Seattle is the ninth-best market in the country for homeowners selling their home, according to a new report.

This is great news if you are thinking if selling your home anytime soon, and another reason to jump in if you’re buying!

According to Zillow Inc. reports that only home sellers in eight other U.S. cities have more leverage than Seattle home sellers. Zillow describes a seller’s market as one where homes are on the market for a shorter time, price cuts occur less frequently and homes are sold at prices very close to (or greater than) their last listing price.

In markets like Seattle, “sellers … are squarely in the driver’s seat with their homes selling within days of listing, often after bidding wars that increase the sale price above the asking price,” said Stan Humphries, Zillow chief economist, in a statement.

If you’d like to know what’s going on in your neighborhood, on your block for similar homes just like yours, call me for a no-obligation consultation.

How long until you can buy again after short sale, bankruptcy, or foreclosure?

I get this question all the time and I finally got smart and decided to post it here for everyone. These are general guidelines and change often.

2011 FHA Waiting Guidelines

Bankruptcy – You may apply for a FHA insured loan after your bankruptcy has been discharged for TWO (2) years with a Chapter 7 Bankruptcy.

You may apply for a FHA insured loan after your bankruptcy has been discharged for ONE (1) year with a Chapter 13 Bankruptcy

Foreclosure – You may apply for a FHA insured loan THREE (3) years after the sale/deed transfer date.

Short Sale / Notice of Default – You may apply for a FHA insured loan THREE (3) years after the sale date of your foreclosure. FHA treats a short sale the same as a Foreclosure for now.

Credit must be re-established with a 640 minimum credit score

2011 VA Waiting Guidelines

Bankruptcy – You may apply for a VA guaranteed loan TWO (2) years after a Bankruptcy

Foreclosure – You may apply for a VA guaranteed loan TWO (2) years after a foreclosure

Short Sale – You may apply for a VA guaranteed loan TWO (2) after a short sale, unless it was a VA loan then restrictions apply

Credit must be re-established with a minimum 620 credit score

2011 Conventional Waiting Guidelines (Fannie Mae)

Bankruptcy – You may apply for a Conventional, Fannie Mae loan after your bankruptcy has been discharged for FOUR (4) years.

Foreclosure – You may apply for a Conventional, Fannie Mae loan SEVEN (7) years after the sale date of your foreclosure. Additional qualifying requirements may apply,

Short Sale / Deed in Lieu of Foreclosure – UPDATED 12/16/11 Currently treated the same as a foreclosure with a waiting time of SEVEN (7) years before you can buy again using a Fannie Mae conventional home loan.

TWO (2) Years up to Maximum 80% Loan to Value | 20% Down Payment

FOUR (4) Years up to Maximum 90% Loan to Value | 10% Down Payment – Subject to Private Mortgage Insurance underwriting guidelines.

SEVEN (7) Years above 90% Loan to Value | with less than 10% Down Payment – Subject to Private Mortgage Insurance underwriting guidelines.

Credit must be re-established with a minimum 660 credit score.

Fannie Mae has reduced waiting periods in cases of extenuating circumstances – The death of a primary wage earner seems to be the only one I have been able to identify up to this point.

Preparing to Buy Again after Bankruptcy, Short Sale or Foreclosure

You should begin looking at your credit at least six (6) months before you are ready to buy again.

Quite often there are things left over on your credit report that can delay your ability to qualify.

With a little head start and good advice, you can get your credit in line, qualify for financing and buy again in the lowest priced real estate market that we’ve seen in years!

We specialize in helping people make sense of Distressed Selling so feel free to drop me an email, call/text anytime.

Step Outside The Box When You Remodel This Room!

One of the most dreaded chores around the house is laundry. Maybe that’s why when selling a house, the laundry room is one of the most forgotten areas to get in shape. The machines are often dusty, with detergent dripping down the sides and lint and old socks on the floor. Yuck!

Yet it’s an area that doesn’t take too much time to clean and can really make a difference when showing your house to prospective buyers.

The easiest way to make a statement with a laundry room is by adding more energy-efficient washing machines and dryers. Recent statistics by the U.S. Department of Energy show that installing machines with the ENERGY STAR label will decrease water costs by up to 50 percent. There are also machines that automatically adjust the water temperature and the amount of water used for each load to prevent excess and waste.

Many new models are available with designer colors, pedestals and sleek designs, which can make a bold statement. When purchasing a new washer, you’re also going to need to choose between a front- or top-loading machine.

While a top-loading machine requires enough water to cover all the clothes in its drum, a front-loading washer needs only a third of that amount because its drum is set horizontally in the machine. It requires less water and allows for larger loads, and it looks great.

On the downside, a front-loading washer is more expensive and can develop mold because it doesn’t empty dirty water as efficiently as a top-loading machine.

When it comes to dryers, new sensor technology is the rage. Dryers with moisture sensors recognize when laundry is dry more quickly than traditional machines and shut down sooner. This saves energy, cash and wear and tear on your clothing.

The use of steam washers and dryers for greater energy and water efficiency is also a growing trend. Steam machines offer enhanced clothing-care options such as short, steam-only cycles that help to reduce wrinkles and remove odors from clothing without using water and detergent.

Laundry rooms used to be relegated to the basement, but today moany of our clients are finding space for washers and dryers in more convenient areas of the house like the kitchen or upstairs, near bedrooms. Housing experts agree that installing a laundry nook will raise the value of a home, and make it more convenient as hauling baskets of clothing up and down flights of stairs become a thing of the past.

I say anything that improves the task of laundry is a good thing!

How can one man lift a big rock?

How can one man lift a big rock?  Why does Donald Trump win so often in high-stakes negotiations?  How can you buy five income producing properties with very little of your own money?

You’ve heard me talk about it often.  It’s leverage.  Let’s take a quick look at why the concept of leverage is so crucial to growing wealthy. Leverage is the ability to use a small amount of your own money to control an asset of far greater value. For example, when you put down 20% on the purchase of a single family residential home, you are essentially using the bank’s money to extend your own buying power.

Assume that you have $100,000 cash to invest. You could find a $100,000 house and purchase it outright. A better idea would be to find five single family residential properties each costing $100,000. Rather than plow all your resources into one property, put down 20% on all five, let the bank loan you the rest, and suddenly you have a portfolio of five income producing properties.

If you’ve done your homework and chosen appropriate deals that provide positive cash flow immediately, you’re sitting in the proverbial catbird seat. Later, you’ll refinance all five loans in seven to twelve years and use the resulting proceeds to buy as many properties as you have the down payments to afford. You should NEVER pay off your loans, but rather frequently refinance into more and larger real estate deals.

Here’s the reality of this type of investing. You use other people’s money (OPM) to buy assets that you will eventually own. Along the way, you also use OPM to cover the monthly expense of your investment, which is the mortgage payment. How do you do this?

By renting the place out! Assuming the deal is right, which it should be when you do your homework, a tenant’s monthly rent payment should cover the mortgage, all associated expenses, and still leave you with a little cash in your pocket. This is called positive cash flow.

Here’s the bottom line. There is no other asset which allows you to rent it out! Don’t try this in the precious metals market or on Wall Street. They’ll laugh you out of the place.

Let’s grab a cup of coffee and discuss the how investing can help you with your wealth goals!  Call me anytime at 425-330-0663.

Book em danno

Our team is always looking for tools and resources that will help our clients make informed decisions in home buying. Now you can see what crime is like in that area you’re thinking about living in with Trulia’s Crime Map.

Drawing from three data sources, Crime Map starts with a national view for cities with available data, and then zooms into specific areas. Darker red areas and larger circles on the maps indicate more incidents, whereas green areas and smaller circles represent the opposite.

Click on regions or the scaled circles to see details on individual crimes during the past year.

This is good stuff and very useful for both home buyers and sellers.  For example, if you are thinking of selling your home, check out the crime stats in your area.  You’ll see what buyers are seeing when it comes to crime.

And then there’s the little things like permalinks for locations, filtering by crime type, quick zooms to locations with the most crime, and discussion pages. It’s that little bit of awesome sauce that makes for an extra informative application.

Spring Cleaning Guide

Make spring cleaning less of a chore by following these smarter–and mostly greener–tips for this annual rite of homeownership.

Bathrooms

When it’s time to get down and dirty, many people start with the bathroom. Allen Rathey, founder of The Housekeeping Channel, says removing mineral deposits, rust, and such from toilets doesn’t have to mean chemical warfare. Don rubber gloves and use a pumice stone to erase stubborn stains. If you want more scouring power, Rathey recommends mixing baking soda with acidic vinegar. The concoction is just as effective as conventional cleaners, and there are no toxic fumes to inhale. This approach works equally well on tub and shower stains.

Buy your supplies in bulk to save. A 64-ounce bottle of vinegar costs about $4; a 12-pound bag of baking soda, about $7. Both items can be used throughout the house. For just $1 you can mix equal parts vinegar and water in a 32-ounce spray bottle to make a terrific all-purpose surface cleaner. That’s about $4 cheaper than buying a spray cleaner at the store.

Spring cleaning is the perfect time to extract dirt from porous grouted surfaces. For tile floors use your usual cleaner, but don’t mop. Instead, run a wet/dry vac, which will suck contaminants out of the grout. Mopping drives the grime into the grout rather than removing it. According to Rathey, grout can harbor stinky bacteria that leave a bad odor in the bathroom. This technique is more time-consuming than mopping, but it’s worthwhile to do at least once a year.

Kitchens

The kitchen can be a tough room to clean because there’s usually so much stuff in it, says Justin Klosky, founder and creative director of The OCD Experience, an organizational service. Before you break out the broom, go through your cabinets and drawers, and put together a box of items to donate and a box of items to store somewhere besides the kitchen. Clear your countertops of everything except items you use nearly every day.

After you’ve de-cluttered, you can get to work cleaning. Cloud Conrad, vice president of marketing for cleaning company Maid Brigade, says one tool you shouldn’t overlook is an all-purpose microfiber cloth (about $5). These aren’t run-of-the-mill dusting rags. Microfiber is a densely woven synthetic fabric that picks up dirt and greasy deposits without chemicals thanks to its unique composition. You should be able to clean surfaces like countertops, sinks, and stoves with warm water, a microfiber cloth, and a bit of elbow grease, Conrad says.

Since you prepare your food in the kitchen, consider using green commercial products for surfaces, or make your own vinegar/water spray. Conventional cleaners may remove dirt, but they can also harbor some nasty substances you don’t want in your PB&J. Microfiber, vinegar, and baking soda will clean and disinfect almost every kitchen surface at a fraction of the price. Don’t neglect once-a-year chores like vacuuming refrigerator coils (unplug your fridge first), and tossing out expired food from the back of the pantry.

Bedrooms

Since bedrooms are such individual spaces, there’s a lot of diversity in what needs to happen. Most homeowners should at least rotate and flip innerspring mattresses, and store out-of-season sheets and clothing. Also go through your closet, and donate or Freecycle items you haven’t worn in the last 12 months. For carpets and mattresses, consider using a professional cleaning service. Figure a typical mattress will cost about $70-$90 to clean, a bargain considering how much time you spend in bed.

Even if you’re getting your carpet professionally cleaned, you still need to break out the vacuum, says Leslie Reichert, owner of The Cleaning Coach. Use the hose attachment to get to the hidden particles along baseboards, under your bed, and in your curtains, favorite environments of dust mites. If you have a large-capacity dryer, throw curtains in on high heat for good measure to kill the little pests.

Living area

Another surface you should consider getting professionally cleaned is living room upholstery. It can be tricky to know exactly how to deep-clean different types of fabrics, says Rathey, especially if there are stains you can’t quite identify. Costs vary widely depending on the size of the furniture piece and the quality and state of its covering, but a typical sofa might run $70 to $90.

Microfiber cloths are great to use in the living area as well. Make sure you have cloths for each area of the house, though, so you’re not cross-contaminating bathroom, kitchen, and living areas. Use a damp microfiber cloth to wipe down windows, wood, mirrors, the tops of bookshelves, ceiling fan blades, and even the plastic housing of electronics for a quick, chemical-free clean.

Got a Dog?

This area including Seattle is loves dogs!  Someone told me once that there are more dogs living in Seattle than children.  Hmm.. I don‘t know about that but if that were the case, there would probably a number of reasons why.  For one, people who live here are crazy about their dogs.

And have you been to a dog park in spring?  Dog owners in Seattle love to mingle and socialize with other dog owners at various dog parks around the city. The off-leash parks are the most popular.

People here do everything with their dogs.  I was in line at a bank the other day and this gal had a little something (looked like a rat) in her purse.  All you could see it a wet nose.  And don’t mention walking and running with your dog.  If you like to go running with your dog, check out this online community of Seattle Dog Runners called Djog . The slogan is “Creating canine contentment one Djog at a time.

For a map of “dog parks” click here.  Woof!

Features that make Montlake unique

Montlake Area

Welcome! Whether you’re a new resident or just getting to know the neighborhood, these resources will help you explore the services, restaurants, parks and other features that make Montlake unique.

Parks and Libraries

The boundaries of the Montlake neighborhood are a collection of beautiful parks, lakes and waterways: The Arboretum, Interlaken Park, Lake Union, Lake Washington and the Ship Canal make up the borders of the area. The Montlake Playfield, a project the Community Club began in 1929, faces Lake Union on the neighborhood’s northwest side.

In 1944 the Montlake Community Club established the Montlake Public Library, which now serves the neighborhood from its new building on 24th Avenue East.

Schools and Museums

• Montlake Elementary School
• Museum of History and Industry

Local Businesses

• Mont’s Market
• Montlake Blvd Market formerly Hop-In Grocery
• Montlake Bike Shop
• Salon Blast
• Jay’s Cleaners
• Edward Jones Financial
• MR Johnson’s Antiques

Restaurants in Montlake

• Cafe      Lago
• Fuel Coffee
• Montlake Ale House

Restaurants that deliver to Montlake

• Mad Pizza
• Pagliacci Pizza

Montlake on the Web

• Montlake on Wikipedia
• Montlake photo gallery on Flickr
• Montlake photo gallery on Wikimedia Commons
• Montlake / SR520 article in The New York Times

Health and Safety

Resource	Link	Address	Phone
Nearest   Police Station	Seattle   Police Department	1519   12th Ave.	206-684-4300
Nearest   Fire Station(s)	Seattle Fire   Department	901   E. Roanoke St. 633 32nd Ave. E.	206-386-1400
Nearest   Hospital	University of Washington Medical Center	1959   N.E. Pacific St.	206-598-3300
Nearest   Pet Hospital	Madison Park   Veterinary Hospital	4016   E. Madison St.	206-324-4050

Public Utilities

Utility	Link	New Service	Pay Bill Online	Phone
Water   and sanitation	Seattle Public   Utilities	New Utility Customers	Electronic   Billing	206-684-3000
Electricity	Seattle City   Light	Residential   Electric Service	Electronic   Billing	206-684-3000
Natural   Gas	Puget Sound Energy	Residential Start Service	My PSE   Account	888-225-5773

 

Hey Who Do You Know?

Most of you know I love to give out referrals to my friends.  I really stick to my mantra “do business with those you know and trust” when choosing whom to do business with. When I don’t know someone providing a service I need who I know and trust, I ask you, my friends and clients.

But even with a referral, you need to do your homework. In terms of a mortgage, you have always had the Better Business Bureau and local regulators (like state banking departments) that you could contact. Over the past few years, the internet has become a easy way of finding information about company or a loan officer. Two other places I recommend you visit online (one for the company and one for loan officers) are:

https://entp.hud.gov/sfnw/public

This is the website for HUD’s Neighborhood Watch. Neighborhood Watch is where HUD publishes a lender’s loan performance on FHA loans and how it compares to the national and local averages.

A compare ratio of 100% means “average” performance. Numbers greater than 100% are below average. And a ratio under 100% is above average. Understand that the Neighborhood Watch numbers measure the quality performance of FHA loans only. Further, be aware that HUD recently stated that lenders with compare ratios over 200% were subject to suspension from being able to participate in the FHA Program, and lenders between 150-199% were going to be scrutinized very closely and subject to audit. Be wary of “riskier” lenders.

When you go to the website, click on the “Early Warnings” tab and either research an individual lender or look for a list of lenders in an area, and then just follow the instructions. Remember, many lenders nationally have similar names, so make sure you have the right lender.

www.nmlsconsumeraccess.org

Here you can search for loan officer and company licensing status. Loan officers are individually licensed now and that includes Washington State. Those who have taken the required courses, passed the required tests and been approved by their respective state licensing authority have all that information verified on this website, along with their employment history.

Loan officers who work for federally chartered institutions (like banks) have not yet been required to take the classes and pass exams and are listed on the site with their license number and their employment history. I think this will change but for now, that’s the case.

Make sure you are dealing with a loan officer who is licensed! Ask questions if they have a lot of job changes.

Like in real estate, there has been a cleansing in the mortgage industry over the past few years, but there are always lousy people in any service area. I beleive nothing beats a word of mouth referral from someone you know.  And while not the end-all, these websites may help you avoid poor performers when choosing who you ultimately do business with.