Purchasing a Home in Washington State Before You Have a Pre-Approval Letter from a Mortgage Lender

Why should you get pre approved for a home loan before you start looking?
If you are like so many first time home buyers, you search the internet, cruise the streets, and go to all the open houses and suddenly, you find the perfect home. It’s just what you and your family have always wanted. It has a beautiful, spacious yard for the children, a remodeled updated kitchen, nice garage with a shop and a beautiful master bedroom. There’s only one problem, you don’t know that you can afford this home or what the monthly payments will be, including property taxes and homeowners insurance. Isn’t it wise to know these “minor details” before you fall in love with your dream home?

Getting pre-approved is the first step in your home-buying process. If your credit isn’t strong enough, there are things you can do to repair it. Likewise, if you aren’t earning enough, it is better to know that up front, rather than waste time and energy finding the perfect home, only to realize you can’t get it. Also, many sellers and listing agents require a pre approval letter anyway, so why wait?

When a “good deal” comes up, and they have been coming up a lot lately, you need to be ready to move quickly. Know what you can afford and make sure you are getting the best loan possible for your unique situation. There are many great loan programs to choose from, so you will need to know your options.

The time you spend setting up the pre-approval will make the loan application process much faster and smoother. You will not waste time later having to gather documents or clear up inconsistencies in your credit or employment history.
Don’t let them show you homes which are out of your price range. Stick to the numbers that will allow you to get a good loan.

Does a pre-approval letter guarantee you the loan? No. But if a lender or mortgage broker pre-qualifies you properly, you can be reasonably sure you will get the loan.

The major difference between a “pre-approved” and a “pre-qualified” borrower, is that on a “pre approved” borrower, the loan officer has actually taken a loan application ,checked your credit, and has usually verified your income and employment history to make a reasonable credit decision as to how much you actually qualify for.

There is no reason not to get pre-approved for a home. It helps you, your real estate agent and the seller ensure a smooth home-buying process.
To get pre approved for a home loan in Washington State, please visit : http://www.mortgagesNW.com, and Rich can help you quickly.

By Rich Rano
MLO# 120146
Mortgage Leads

Helping you find the lowest interest rate when shopping for a Home Mortgage Loan in Washington State

You would think, with all the new regulations in place for mortgage brokers and banks that the consumer would have an easier time trying to find out if they're actually getting a good “deal" while shopping for a mortgage. How does one really know that they are in fact getting the lowest rate and paying the lowest fees in shopping for new mortgage?
In my many years of experience,I still got a lot calls from people asking me "what’s your rate?" It's like one was just shopping for a light bulb and a mortgage was a mere commodity.
With all the advertising on television, newspapers and the internet, people are constantly being bombarded with images of super low rates. It's no wonder the consumer thinks that there might be some magical super low rate, which is not realistic or “in the ballpark” available to them. In the end, the consumer usually finds out that "if it sounds too good to be true, it usually is." First, make sure the rate that is being advertised is for the loan program that you are looking for (in other words if you want a 30 year fixed make sure you are not looking at a 5 year arm rate). In addition, many people don't realize that there are price adjustments to the rate for getting cash out, loan to value, property type, credit score, whether the property is owner occupied or an investment property and many other factors.

The government has tried to level the playing field by requiring mortgage bankers and brokers to quote their rates along with the APR. This would be great if all companies used the same formula, like they are supposed to, but it doesn’t appear that they do.
It has also been my experience that when I see a super low rate advertised, the rate shown may come with the cost of a point buy down, which means every that for every point one is willing to pay to "buy down" the rate,that point represents a cost of 1% of the total loan amount. On a $300,00 loan, that's an additional $3,000 in total loan costs. Points can be very costly for the consumer. I have also found that points may be attractive to get a lower rate but is usually used when making a home purchase, when the seller is willing to pay the points. I have found that it is usually far less attractive to a home owner, conscience of total closing costs, when doing a refinance and the home owner is the one paying the points to get a lower rate.
If I were looking for a mortgage, I would find out exactly what the" total closing costs" are, including all of the fees associated with the new mortgage. This should include all of the fees, including the appraisal, and will give you a more accurate comparison.
Many companies advertise teaser rates just to get the telephone to ring, but after careful evaluation of the total costs, you may discover that what sounds too be good to be true usually is.
Another point to remember is that, until your rate is locked, the rates may change and usually do at least once per day. It is my preference to “lock” the loan as soon as soon as reasonably possible.
It is important to remember that you are not buying a light bulb, it’s a mortgage. A person should deal with a company who has been in business many years and check out its history of complaints in addition to satisfied consumers. How long has the company, which you are about to do your largest investment with, actually been in business? Have you checked them out for the total number of complaints they may have with the Better Business Bureau? According to the Better Business Bureau only one in 10 people who can actually complain, ever do complain. This means that if a company has 10 complaints on their record, you can multiply that by 10 which would equal 100 complaints.
Another consideration is, does the company have a local office or are you willing to deal with a company out of state? Can you get in touch with someone if you need help quickly? I have seen many things come down to the "eleventh hour", and you need to be able to act quickly.

A mortgage is probably the single largest investment that you will ever make in your life. Yes, it is wise to get the lowest rate in paying the lowest fees but make sure your research is accurate and you get exactly what you were promised.

WA Lic# 120146
http://www.mortgagesNW.com

Gov't Backed Super Conforming loans going away soon (417k+)

Super conforming loans are going away soon as upscale owners brace for mortgage shock.
If you currently have a super conforming loan, or you are thinking about purchasing a home above the 417K level and below the super conforming loan amount in your area, then now is the time to obtain a new loan or refinance before jumbo rates kick in. The super conforming loan amounts vary depending on which county you live in.
In King, Pierce, and Snohomish counties the super conforming loans range between $417,000 and $567,500. For the past three years purchasers of new homes and homeowners who have refinanced have enjoyed the benefits of much lower rates than normal.
In the Seattle metropolitan area, the loan amount for a jumbo loan is set to be reduced from 567,500 to 506,000 for a single-family home.
Sometime in August buyers and sellers and some of the countries most upscale housing markets are scheduled to lose their biggest benefactor of the economic downturn, the the federal government is .
Without the federal government's backing of these higher-priced loans many lenders would refuse to do the loans.
From the New York Times with respect to "super conforming" loan limits, part of an economic stimulus bill first passed in 2008:
"For the last three years, federal agencies have backed new mortgages as large as $729,750 in desirable neighborhoods in high-cost states like California, New York, New Jersey, Connecticut and Massachusetts. Without the government covering the risk of default, many lenders would have refused to make the loans. With the economy in free fall, Congress broadened its traditionally generous support of housing to a substantial degree.
But now Democrats and Republicans agree that the taxpayer should no longer be responsible for homes valued well above the national average, and are about to turn a top slice of the housing market into a testing ground for whether the private mortgage market can once again go it alone. The result, analysts say, will be higher-cost loans and fewer potential buyers for more expensive homes."
If you would like to get a rate quote now click here.

Why is it a Perfect Storm for buying a home in Washington State?By Seattle Home Loan Expert Rich Rano

Why is it a perfect storm to buy a home now?

First, with escalating rents continuing to rise, you have got to be kidding me if are you waiting to buy? Look at the rents in the Seattle area alone, a studio in Capitol Hill is running around $950 or a one bedroom in Queen and or Seattle or Ballard upwards of $1500.

Secondly, inventory is at an all time high as there are so many homes on the market and prices are so low like we haven't seen in years. The word is there are now several offers being made on homes and prices are starting to rebound in the area, uhhh Don't Miss the Boat!!!

Finally, interest rates are at the lowest point they have been all year, for example your average 30 year fixed is 4.5% today 4.75% APR.

These three reasons alone are enough to make one wonder why anyone who is renting is not living in their own home. It may and probably will not get any better of a time to purchase a home. Don't be a "would have should have" kind of person. Most likely someone in Seattle will be looking at a home for sale in a few months from now saying "wow I could've purchased that $300,000 home for $225,000 and now interest rates are high".

The best thing you can do is get the facts. Find out how much house you can afford, get prequalified. Find out what monthly payments are, it may surprise you that the payments are less than what you are already paying in rent. This does not take into consideration the pride of ownership or the joy of owning your own home.

Once you have been preapproved feel free to contact me and I will put you in touch with a realtor in the area that you want to live in and get you a free list of homes to look at that you can afford.