So you’re on the hunt, the ink is still wet on the pre-approval letter clenched in your fist. Your Realtor is showing you amazing homes and the excitement of buying a new home is overwhelming you. There are a few simple rules, that if followed, can make a huge difference in financing your home.

1. Don’t acquire any new debt. It may be very tempting to go out and look at new furniture and buy it 90 day same as cash, or take advantage of those discounts at the register (10% off for opening a Kohl’s card etc.) but you must leave those temptations at the till. They may seem like simple transactions but even the slightest change in your debt to income ratios and you could be looking at a smaller home (or no home at all). New cars are the worst – long term debt and the payments are usually $200-$400 per month, significantly modifying your debt to income ratios… if you do buy a car, make sure you love it – you may live in it!
2. Do not spend money you have set aside for closing. I think this goes without saying for most people, BUT I have to say it. Many people think, “I’ll have it in there when we close.” Little do they know that the underwriter has to verify those funds and may even do so more than once. If those funds aren’t there, you’re not qualified. Additionally – the Washington Purchase and Sale agreement states that you have the funds available and can close, not having the money in the bank could cost you your earnest money if things got sticky!
3. Do not (and this is a biggie) omit liabilities (expenses) or other blemishes on your loan application. Underwriters are very thorough, they will find out. Failing to follow this creed could cost you the loan (not to mention you certify under penalty of perjury that the application is correct). Obtaining a loan with false information is loan fraud too.
4. Do not quit your job, change jobs, or become self-employed mid stream. this will almost always cost you the loan (especially the self-employed one!). Things happen and you may unwillingly lose your job, let your Realtor and your Loan Officer know immediately. Usually with time, things can be worked out – loan programs can be changed etc., but don’t willingly quit your job or change careers midway through a home purchase.
5. Do not make unordinary or non-typical deposits into your account. Your bank statements will be scrutinized. Unusual deposits must be defended and proved. You’ll have to explain everything. If you get a big check, bonus or the like – make sure you discuss this with your Mortgage Officer.

There are many more no-no’s when buying a home, but these are the main issues I see come up with first time and even established home buyers. If you have any questions or would like to get pre-approved, do not hesitate to contact me!

Tags: Idaho Real Estate, Spokane Real Estate by Spokane Home Guy (509) 990-7653
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Recently I watched an REO expire and relist on http://www.auction.com (still with representation of the listing agent). The home was reasonably priced while on the market but the pricing did not accomodate for the condition of the property which would have led to a considerable discount.

The property is now listed with a starting bid price of under $20,000 but the fine print hints towards a reserve price. Upon further investigation and a live online chat with a representative from Auction.com I discovered that indeed there is a reserve price that is undisclosed. Not a problem so long as there is still someone in the market place willing to pay the reserve PLUS the 5% buyers premium to cover Auction.com’s costs of the sale and profit.

The Real Estate auction idea is great, in fact, this is one of the better setups I’ve seen. Buyers can have buyer’s agent representation – essential for navigating potential pit falls and arranging for needed inspections. Additionally, unlike Trustees auctions and Tax Foreclosure Auctions, Buyers can finance their purchases on certain homes (some homes are designated as “cash” due to condition).

I read through the processes, each home has three open houses where potential buyers can inspect the property prior to bidding (I’d suggest having an agent represent you and arrange for a home inspector to accompany during the open house, this will help identify any hidden issues AND help you determine a maximum bid). Have your agent register you for the auction and then begin arranging for funds. Most auctions have a minimum deposit (like earnest money).

Now it may seem like common sense, but it’s extremely important to pre-plan before bidding. Set your maximum price and stick to it, Auctions are designed to drive up the price, but if played correctly you can get a great buy on a great property. Your agent can help you determine a fair market value for a property, need an agent – contact me.

Happy bidding!

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Tags: New Ideas by Spokane Home Guy (509) 990-7653
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Crystal & I spent some time at Pig Out In The Park this year and I have to say I was impressed with the turnout. The weather was a bit overcast and muggy but not too hot. There was a sea of people gorging themselves on over 40 vendors worth of food and drink.

My office is just across the street from the park, but I’m sad to say I’ve really not spent much time there. I remember the rides, Imax & other attractions fondly from my childhood, but had almost forgotten they were there!

We made our way to Azar’s and had some Gyros (they were amazing by the way) and wondered over to the Northern Lights Brewery booth for some unique micro-brews. The Chocolate & Blueberry beers were very interesting!

You can’t Pig Out In The Park without desert! We made our way to the homemade ice cream booth and ordered pie and ice cream (by this time I was almost in a food induced coma). All in all it was a great time and relatively inexpensive. Nothing was over $8-$9 and the portions were good.

If you haven’t made it down there yet – you’d better, Pig Out ends Monday September 7!

Tags: Fun by Spokane Home Guy (509) 990-7653
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