If you’re buying a new house, you’re likely looking at the various terms on your paperwork and have noticed “mortgage insurance” on there. It’s not something that everyone is familiar with, so here is some basic info that can help answer your questions.
What is mortgage insurance?
Mortgage insurance is not a benefit to the home buyer and does not protect them against anything. Actually, it will only protect the mortgage company/bank in the event that the borrower defaults on the loan and doesn’t pay their mortgage. It is required when a borrower puts less than 20% down on the purchase or has less than 20% in equity during the refinance process on a home.
Aaron Hicks, Mortgage Consultant with Homestreet Bank shares that when a borrower is looking to get a mortgage, it can affect the loan approval process. Hicks shares, “It can increase the borrower’s monthly payment, which overall effects a borrower’s debt-to-income qualifications. Mortgage insurance companies require stricter guidelines depending on a borrower’s debt-to-income, credit score, loan to value, and type of property. Sometimes mortgage insurance companies require additional supporting documentation above what the bank may require and/or additional underwriting review.”
What kind of mortgage insurance is there?
Hicks says that there are multiple types of mortgage insurance for conventional loans. There is monthly mortgage insurance, single premium mortgage insurance, or split premium mortgage insurance. There is also lender paid mortgage insurance. For some loans, especially FHA loans, the premium will last for the life of the loan, even when your equity position gets you above the 20% mark. If the homeowner has a conventional financing method, the insurance can be removed once 20% equity in the home is reached. I can do a quick market analysis to determine if borrowers are at the 20% equity mark. The lender will require a formal appraisal to remove mortgage insurance, which costs $400-$600. So, it is a good idea to verify you’ve reached that point before ‘getting official’ with your request.
Purchasing a home is very involved and requires various steps and attention to detail. Oftentimes, questions and issues will arise, and this is one of the many reasons why it’s critical to work with an experienced Realtor. Whether it’s a question about mortgage insurance or something else entirely, I’m happy to answer your questions and will work with you to help get the answers you need. Contact me for info!
I’ve worked in the real estate industry for a long time and I enjoy getting to know people as I work to help them find the best home for their unique needs. Just like I enjoy learning more about people, many of my clients and potential clients want to learn more about me and my specific expertise when it comes to my involvement in real estate. Here, I answer some of the common questions I get about me and my experience.
Q: How long have you been in real estate and how did you get started in it?
A: I got involved in Clark County real estate in 1992 and since 1994, I’ve worked with Windermere. Before that, I worked in the high-tech industry in marketing management. After transitioning out of that role, I felt like working in real estate was a natural fit for me.
Q: How has your career background helped you with your real estate career?
A: Coming from industries in high tech, I brought experience in management, budgets, and developing complex problem solutions with ‘lots of moving parts’. All of these have been invaluable as I understand markets, help clients navigate lending and paperwork, and orchestrate all the ‘moving parts’ of every real estate transaction, whether it’s helping people move on from their current home, or helping someone find a home to buy.
Q: How has real estate evolved since you began?
A: The biggest change to Real Estate is technology. I started when we had a printed book of homes, YIKES! Thank goodness, now we have much better ways to search for homes, property information and communicate with clients and each other. Of course, coming from this industry before, I was excited to see the real estate industry evolve.
Q: What is your favorite part of your job?
A: Meeting with all varieties of clients is very gratifying. I’ve worked with artists, families, professional musicians, and higher-up company leaders. As a buyer’s agent, each client comes to me with various wish lists and I work closely with them to find what they need. When it comes to selling a home, I use my experience to price your home for a fair sale. Determining the right price from the get-go is important and it can help minimize stress for sellers listing their homes. The combination of these things is what makes the job fresh and rewarding.
Contact me today for information on what it will take to embark on your journey in buying or selling a home.
If you’re in the process of buying or selling a home, chances are, you’ve run into some questions along the way. This is one of the many reasons why your Realtor® plays a valuable role each step of the way. One of your questions may have been what role the title company will play in your purchase or sale. In Clark County, escrow and title services are completed through the same company, but each department has different roles and tasks. Here is some helpful information that can help clarify what the title company does as well as what the differences are between escrow and title.
At the time your property is listed, thorough agents will request a preliminary title report. This will show loans, taxes (property and excise), certain kinds of personal debt (tax liens/back child support), which must be paid when the sale is completed. Of course, the total of these should be less than the purchase price of the home.
In addition, easements, road maintenance agreements, HOA information, and CC&R’s will also be on the report. These are examples of items that will stick with the property. Reading the title report will allow your Realtor® to know about any trouble spots that come with the property before closing happens. Once there is an accepted offer, the buyer and the lender are added to supplemental reports.
Escrow includes collecting all necessary documentation to allow the property to transfer over to the new owner. Escrow also will pay off underlying encumbrances (ie. Liens on the property), will place new encumbrances, and make the property transfer with the County. The escrow team will work up the costs for both seller and buyer, including pro-rated property taxes, pro-rated HOA dues, costs from the buyer’s lender, and closing utility bills that could become liens on the property (water and sewer).
While each real estate transaction is different, there are still some basic action items that need to happen with each one. The title and escrow company play a crucial role in the closing process. I will help walk you through the various steps to make sure you understand what you need to do.
We’re officially into 2018 now and it’s a great time to buy or sell your home. Contact me today to explore how to get the ball rolling.
Homeowners oftentimes ask me what types of home renovations or improvements they should complete to help increase their home’s value, especially if they’re considering putting their home on the market soon. There are a variety of things that can help update your home and if you do it right, they can bring in good returns when it comes time to sell the home. It’s important to note that some home remodeling or home improvement projects will add more value than others. Here are four things that can help increase your home’s value right away.
#1: Updated bathrooms.
A freshly updated bathroom can bring in great returns when it comes time to sell your house. You don’t need to do a full remodel, either. Simple updates like new sinks and toilets or updated flooring can be easy and inexpensive ways to increase value.
#2: Updated kitchen.
A fully remodeled or updated kitchen is one of the best things you can do to add value to your home. New cabinets, flooring, and countertops make all the difference when it comes to selling your home. If you decide to list the home without doing any updates or repairs to the kitchen, it’s common for prospective buyers to think they must remodel the kitchen space completely from scratch, overestimating how much a remodel will be. A kitchen remodel may be less than a buyer might think, so it’s great to get this part done so you can yield the returns when it comes time to sell.
#3: Exterior maintenance.
New exterior paint can do wonders for curb appeal! In addition, stay on top of other exterior maintenance to make sure it’s free from dry rot or other issues that could cause a potential buyer to worry. Make sure your roof is cleaned regularly and that a roofing professional checks it for leaks or missing shingles, but do not pressure wash it. If these aren’t repaired and come up during an inspection, it could mean an expensive repair or a price reduction in your home, so it’s better to get things maintained and taken care of before the house goes on the market.
#4: Updated color palette.
Looking for an easy and inexpensive way to create a relaxing ambiance inside your home? Freshen up the paint in your home to make sure it is updated to some currently popular colors that could be appealing to a broad audience. Fresh paint goes a long way. You’ll not only make the space feel brighter and cleaner, but painting with an updated color palette will give prospective buyers the opportunity to better envision themselves living in the space.
Not sure where to start when it comes to picking reliable companies or contractors to help you with your home maintenance or home remodeling projects? I am happy to give you some names of local contractors that I work with regularly and I’m also glad to visit your home and help you decide which to-do items would be the best bang for your buck.
There are many facets of buying a home and the process can be a bit overwhelming at times. However, buying a home is very exciting and if you avoid various home buying mistakes, it will make your home ownership process one that is rewarding for many years to come. I recommend that home buyers avoid these three common mistakes when it comes to purchasing a house.
#1: Not working with a buyer’s agent.
A knowledgeable Realtor can help provide advice that fits your specific situation. An experienced buyer’s agent has worked with hundreds of different home buyers and they can help you understand what’s happening each step of the way. You’ll also be able to ask questions that may come up and your agent will also help you plan for closing costs and other costs that may arise. In addition, a buyer’s agent will help you know if a home is worth the price, what its resale value might be, and they will be your advocate when it comes to negotiations. When it comes to buying a home, you want someone on your side, and a qualified Realtor will be there the whole time.
#2: Not getting pre-approved.
Getting pre-approved for a mortgage serves dual purposes: it shows sellers that you’re serious and it also gives you a realistic idea of how much you can afford for a home. Work with a lender that you trust and gather up all relevant financial documents like pay stubs, tax returns, and bank statements. Your lender will work with you to get the information needed to provide an accurate pre-approval letter. Then, you can start shopping for homes within your budget.
#3: Not getting an inspection by a credentialed inspector.
A credentialed inspector will help alert you to any potential problems that the home may have such as faulty wiring, plumbing leaks, or structural issues. A layperson generally wouldn’t be able to spot these things, so when it comes to spending hundreds of thousands of dollars on a home, it’s worth it to pitch in a little bit extra to pay for a qualified and experienced inspector that holds proper credentials. Skipping that step could be costly, and you may end up paying for it later when you discover something major is wrong with the home.
If you’ve decided that you’re ready to buy a home this autumn, contact me today to help you get the ball rolling!
We continue to hear that the housing market is unbalanced—that there are more buyers than sellers. There is no single reason for the situation we are in today. Rather, the situation has developed this way because of several combined factors that suggest that the market will not return to equilibrium any time soon. Although this varies widely by location and price range, here are some reasons that this might be happening.
Reason #1: Demographics.
The first reason for the shortfall is purely demographic. As “Boomers” age, they are not following the trends of previous generations. Many are staying in the workforce far longer than their predecessors, and because of their postponed retirement, they don’t feel compelled to downsize their living situation. In fact, almost two-thirds of Boomers plan to age in place and do not plan to move even after retirement. Without this anticipated supply of homes from downsizing Boomers, there aren’t enough homes for move-up buyers. This limits the supply of homes for first-time buyers.
Reason #2: We don’t move as often as we used to.
As an overall nation, people aren’t moving as often. After experts have analyzed mobility, it’s clear that people aren’t required to relocate as frequently for work that matches their skillset. Because there has been a drop in geographic-specific jobs, are simply moving with less frequency.
Reason #3: Builders aren’t building as many homes.
Many builders are not building as many homes as they were in the past, because of three main factors: land supply/regulation, labor, and materials. The costs related to building a home have risen rapidly since the Great Recession, and this is keeping many builders from building to their potential. In addition, to justify the additional costs, many of the homes that are being built are larger and more expensive, which makes it difficult for many first-time home buyers that cannot afford the price of a newly constructed home.
So, what should you do in this kind of market? My advice is to focus on what works for your specific needs and if you want to explore what your options are, give me a call. I’m always up for a discussion about which approach might be right for you.
**Content an excerpt from blog posted 8/2017 by Mathew Gardner, Chief Economist for Windermere Real Estate
The inspection process: generally speaking, this is an overall evaluation of a home’s condition. If you’re not clear on how the process works, keep reading and I’ll lay out the general guidelines of what happens.
When the buyer gets the inspection done, the seller might not know what the results are for a few days. Once the buyer gets the results of the inspection, they need to get a copy of the report, digest it, and determine what they want the seller to fix, if anything. Most of the time, the buyer has 10 days to get any repair requests to the seller. In order to expedite things, the agent should help the buyer determine what is reasonable and what’s not.
Once the repair list is drafted, the seller has time to look at it and digest what’s on it. They can clarify what’s being asked for and they’re given some time to get bids and determine what items they should fix. An agent to help with this part of the process is crucial. An experienced agent will help provide information on what buyers generally ask for and what could be determined as “too much” or “over the top.” The seller will then respond and then the buyer will decide if they will accept this response.
The back-and-forth process can create a lot of dialogue and it’s very important that everyone understands each other. Whether it’s credits to the buyer or items that need to be completed before closing to meet buyer bank requirements, your agent has valuable experience in the negotiation process here. Take advantage of this experience and rely on your agent to help guide you along.
Buying and selling a home is full of many different steps and details. The inspection process can be complex, so if you have more questions about it, I’m happy to sit down and talk with you about it.
If you’re thinking about selling your home, you have a lot of different factors to consider. You’re thinking about where you’ll move and what it will cost, and finding a qualified Realtor is one of the biggest decisions. If one of your questions involves finding out more information regarding reduced commission versus full rate services, here I’ll cover what the three basic levels of fees and services include.
#1: Very Discounted Services: This will include access to the MLS only. The seller will input all information and will set the buyer’s agent fee. The seller pays for marketing and will negotiate elements of the contract. This can work for some situations, but being an unrepresented seller in today’s complex market can be risky and oftentimes results in a lower net price. Most buyers will have representation, so the fee you save is really only half of the full real estate fee.
#2: Cut-rate fees: This will again only save half of the real estate fee, as buyers are usually represented by an agent. With full service representation, you usually get more experienced and knowledgeable agents to work with you. This is the “secret sauce” that can save you big time in the end – especially in the areas of price negotiation, inspection negotiation, and other timing issues that can derail the overall transaction.
#3: Full-service: When using a full-service Realtor, you’ll get a fully developed and proven marketing plan. The Realtor will additionally help you develop a pricing strategy that will help get your home sold in a timely way. You’ll work together to address issues upfront that could cause a buyer to pass by your home. The key here is knowledge, knowledge, knowledge! An experienced Realtor has been part of numerous, varied transactions that can help benefit you throughout the process so you can get the best price for your home with the quickest closing date and the least hassle.
If you have decided that it’s time to make the jump to sell your home, now is a great time to do that. The information around fees can be a complex topic to consider, so if you have additional questions, I am happy to sit down and talk with you about what could work for you and your specific situation.
Summer in the Pacific Northwest is amazing. The days are longer and warmer and the rain is gone so you can get outside and enjoy the great outdoors. If you’re in the midst of buying or selling a home and you feel like you’re overwhelmed with the details, don’t forget to take time for yourself and enjoy the beauty that Washington has to offer. Here are some great tips on activities that you can participate in locally this summer.
#1: Summer reading program through Fort Vancouver Library.
Kids, teens, and adults alike can sign up for the summer reading program through the Fort Vancouver Regional Library. Log days that you’ve read and you can earn rewards and prizes with the free program. The best part: it keeps your reading skills sharp throughout the summer.
#2: Summer concerts and movies in the park.
Every year, the City of Vancouver puts on a summer concert series in Esther Short Park. Each concert is free and family friendly. Enjoy a variety of talented local artists, including Vancouver Pops Orchestra, and enjoy food from local vendors, too. The city also puts on Friday night movie nights in parks around Vancouver in July.
#3: Dive in!
Jump in and cool off! Klineline Pond is a great spot to cool off and enjoy the warm summer weather. The pond is located in a large park setting with large water features/fountains for the little ones to run around and cool off in, too. Not to mention, there is a playground, plenty of picnic tables, and lots of green space to walk. If you want to stay indoors to swim, the pools at Jim Parsley Community Center, Propstra Aquatic Center, and Firstenburg Community Center are great places to swim.
#4: Hike or camp!
Living in the Northwest means that there are many beautiful hikes and walking trails. Hike Mount St. Helens, take a drive out through the Columbia Gorge and hike the Multnomah Falls, or enjoy some family time by setting up a tent and a mini-campground in your backyard for one night.
No matter what you decide to do this summer, take time to relax and enjoy the beautiful area we live in!
The process of buying or selling a home is very detailed and requires a lot of moving parts. Once the end is in sight, you’ll need to prep for closing day. Planning for closing day can help make things run a little bit smoother. So whether you’re a buyer or a seller, here are some important must-knows on what you’ll need to have in place for closing day.
For the seller:
- Repairs will need to be done and receipts obtained
- Before closing can happen, all repairs that were requested during the selling process will need to be complete. Once everything has been done, be sure that all of that is documented well and that you have all receipts readily available.
- Be ready for a buyer walkthrough
- Once repairs have been completed, the buyer will likely want to do a walkthrough to make sure everything looks in order.
- Arrange for your utilities to turn off
- Call your utility companies, cable/Internet company, and any other services that will need to be turned off and transferred to your new residence. However, it’s important to note that you shouldn’t cancel your homeowner’s insurance on your current address until the final sale of the home has been recorded.
- Gather all brochures, keys, garage door openers, etc.
- If you have collected brochures/manuals on specific appliances in the home, or you have other important documents that need to be left for the new homeowner, make sure you have those readily available. In addition, you’ll need to leave them the keys to the home, mailbox, and any garage door openers you have.
- Sign documents
- This is the biggest step that transfers ownership and gets the process moving toward completion! It can happen several days before the “closing date.”
For the buyer:
- Obtain receipts for completed repair work
- If repairs were done in the home you’re purchasing, make sure you get all of the receipts and warranties associated with the work that was done. Keep these in your records in case you need to refer to them later or in case something goes wrong with the repair down the road.
- Do a walkthrough
- This is your chance to make sure that the repairs were done right and that things are good to go so you can move forward with signing closing papers.
- Set up utilities
- Call your utility company and schedule a time when you want water/electricity to come on. While you’re doing this, schedule a time for Internet/cable service to be hooked up, or any other services that you will need ready to go when you first move in.
- Sign any last minute lender information
- This is an important step! You will need to sign a closing disclosure that needs to be acknowledged to start a 3-day waiting period before you can sign final closing documents.
- Sign documents at escrow
- Here, you’ll sign papers that allow you to complete the home buying process. After the sale is recorded, you’ll get keys to your home and you’ll be able to start moving in!
If you’re confused about which step comes next, don’t worry! I will be there to walk you through the process. If you’re looking to buy or sell a home, contact me today for information on how I can help.