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Alternative Ways to Come Up With the Down Payment on a Home
To successfully purchase a home today, you will need a down payment of at least 3.5 percent of the purchase price. Gone are the days of no down payment alternatives, down payment assistance and seller-offered programs to come up with the money needed to buy a home. Instead, let's look at the five ways you can come up with a down payment to seal the deal.
1. Gift Money: Gift money is simply that — a gift from family or documented close relationship. The giftor needs to provide a gift letter and paper trail for the monies they are gifting for the benefit of the buyer. In other words, they'll have to provide a bank account showing that they had the ability to gift the money. In short, gift monies cannot be funds sitting at home in a safe.
2. 401(k)/Retirement Loan: Typically, borrowed funds for a down payment are a no-go, but the exception is a 401(k) or equivalent retirement account (or current home equity line). If you can borrow money from your 401(k) for your down payment, this is accepted for obtaining a purchase mortgage loan. Note: Depending on the terms of your loan, this could be counted as a liability and factored into your debt-to-income ratio.
3. Sale of a Good: Believe it or not, you can sell your recreational vehicle and use the net proceeds from the transaction as your down payment. Let's say that you decide to sell your motorcycle for $10,000. You'll need to provide the full bill of sale — as well as the bank statement depositing those funds, matching the bill of sale — to your mortgage lender. Same goes for any other recreational vehicle, or other item that "makes sense." The key is as long as it's plausible and passes the litmus test and you can paper trail the monies from start to finish, you should have no problem using those monies for the house purchase.
4. Trust Funds, Settlement Awards, etc.: If you come into a chunk of change via an inheritance, settlement, lottery winning, trust fund disbursement, family buyout, even a gambling victory, all of these monies can be used for the down payment as long as the sourcing of the monies is fully documented from A to Z with no stone left unturned. Matching of the amounts of monies used to the original deposits will be required when it comes time to secure the loan.
5. Line of Credit: Where a down payment lacks, enter strength in income. You can take out a line of credit or a personal loan, deposit the full funds into your bank account and after two months, the funds will be eligible for use in the transaction.
While a down payment is needed to purchase in the current real estate market, a prudent homebuyer should also have plans for having available funds for closing costs. The same out-of-the-box strategies listed above can also be used to procure funds for closing costs.
Closing costs run at about 3 percent of the purchase price, on average. So the total funds to close would be 3 percent of purchase price plus 3.5 percent down.
Do your homework. If you don't have a down payment for a house, or your down payment is coming from more than one source, make sure that you talk to a lender upfront so they can help you navigate the best way to properly support and document your monies used. Doing this on the front end will save you from wasting time creating and gathering unnecessary paperwork.
If you would like further information on home loans, give our preferred lender, George Runnels of Washington First Mortgage a call at 206-604-4545.
For information on homes for sale in your market, give us a call or text at 206-769-9577, we are always ready to get to work for you!
Steve Hill and Sandra Brenner
Best In Client Satisfation
Windermere Real Estate
call/text 206-769-9577
BrennerHill.com
14 Household Cleaning Tips That Will Blow Your Mind
With Fall approaching and the holidays on the way, you may be doing some cleaning to prepare for guests in your home. You may also be looking for some tricks to clean up those stains that just don’t seem to come out, or inexpensive ways to shine stubborn surfaces like stainless steel. I’ve pulled together a collection of those amazing home cleaning tips that, once you try, you won’t be able to do without. Click through the jump to get them!
See all tips HERE.
Steve Hill and Sandra Brenner
Best In Client Satisfaction
Windermere Real Estate
call/text 206-769-9577
BrennerHill.com
Why Do American Families Buy a Home?
There is a plethora of opinions voiced by real estate gurus as to why the dream of home ownership is so important to most Americans. However, study after study reveals the same five reasons families decide to buy a home. They…
- Want a good place to raise children
- Want a place where their family feels safe
- Want more living space
- Want control of that living space
- Realize that owning makes better financial sense than does renting
(For those who question the validity of number five after the recent housing crisis, Harvard University just finished a study on the issue)
If you are considering purchasing a home, look at the five reasons mentioned above. If any of them apply to you and your family, perhaps it is time for you to take the plunge. With both prices and interest rates rising, waiting will only increase your monthly cost as we move forward.
If you are considering a home purchase before home prices and interest rates rise, give us a call or text, we are ready to get to work for you.
Steve Hill and Sandra Brenner
Best In Client Satisfaction
Windermere Real Estate
call/text 206-769-9577
BrennerHill.com
Just Listed! Captivating Edmonds Bowl Home
911 Carol Way
Edmonds WA 98020
Just Listed! Captivating Edmonds Home
Elegantly remodeled four bedroom, three bathroom, mid-entry home in the heart of the Edmonds Bowl. From exquisite tile work to a stunning epicurean kitchen featuring granite slab counters and stainless steel appliances, attention to detail is evident. The light filled living room features abundant natural light and a gas burning fireplace. The Master bedroom boasts a private bathroom and large walk in closet.
The Lower level features a large family room with gas burning fireplace and complete separate living quarters. Step outside to the park like setting and enjoy a large patio designed for Summertime entertaining, soothing water feature, manicured lawns and tastefully designed gardens.
2,464 square feet of interior space make this Edmonds home a rare find. Convenient location just minutes to downtown Edmonds, parks, schools and shopping.
Step inside and see why this home will captivate you.
My Zillow Reviews: http://www.zillow.com/profile/Brenner-Hill-Team/Reviews/
Seattle Area Real Estate Market Trends: http://ballardtobroadview.withwre.com/seattle-real-estate-statistics/
More Details & Price Online at: ExclusivelyEdmonds.com
Proudly Presented By
Steve Hill
Best In Client Satisfation
Windermere Real Estate/FN
206-769-9577
BrennerHill.com
5 Demands to Make on Your Real Estate Broker
Are you thinking of selling your home? Are you dreading having to deal with strangers walking through the house? Are you concerned about getting the paperwork correct? Hiring a professional real estate agent can take away most of the challenges of selling. A great agent is always worth more than the commission they charge just like a great doctor or great accountant. You want to deal with one of the best agents in your marketplace. To do this, you must be able to distinguish the average agent from the great one. Let us help.
If we were hiring an agent to sell my home today, we would require that they:
1. Tell us the truth about the price
Too many agents just take the listing at any price and then try to the ‘work the seller’ for a price correction later. Demand that the agent prove to you that they have a belief in the price they are suggesting. Make them show you their plan to sell the house at that price – TWICE! Every house in today’s market must be sold two times – first to a buyer and then to the bank.
The second sale may be more difficult than he first. The residential appraisal process has gotten tougher. It has become more difficult to get the banks to agree on the contract price. A red flag should be raised if your agent is not discussing this with you at the time of the listing.
2. Understand the timetable with which my family is dealing
You will be moving your family to a new home. Whether the move revolves around the start of a new school year or the start of a new job, you will be trying to put the move to a plan. This can be very emotionally draining. Demand from your agent an appreciation for the timetables you are setting. I am not suggesting that your agent can pick the exact date for your move. You just want the agent to exert any influence they can.
3. Remove as many of the challenges as possible
It is imperative that your agent know how to handle the challenges that will arise. An agent’s ability to negotiate is critical in this market.
Remember: If you have an agent who was weak negotiating with you on the parts of the listing contract that were most important to them (commission, length, etc.), don’t expect them to turn into Superman when they are negotiating for you with your buyer.
4. Help with the relocation
If you haven’t yet picked your new home, make sure the agent is capable and willing to help you. The coordination of the move is crucial. You don’t want to be without a roof over your head the night of the closing. Likewise, you don’t want to end up paying two housing expenses (whether it is rent or mortgage). You should, in most cases, be able to close on your current home and immediately move into your new residence.
5. Get the house SOLD!
There is a reason you are putting yourself and your family through the process of moving. You are moving on with your life in some way. The reason is important or you wouldn’t be dealing with the headaches and challenges that come along with selling. Do not allow your agent to forget these motivations. Constantly remind them that selling the house is why you hired them. Make sure that they don’t worry about your feelings more than they worry about your family. If they discover something needs to be done to attain your goal (i.e. price correction, repair, removing clutter), insist they have the courage to inform you.
Good agents know how to deliver good news. Great agents know how to deliver tough news. In today’s market, YOU NEED GREAT AGENTS like Steve Hill and Sandra Brenner.
Steve Hill and Sandra Brenner
Best In Client Satisfaction
Windermere Real Estate
BrennerHill.com
call/text 206-769-9577
Our Network Can Help
Usually when real estate brokers start talking about referrals, people assume they’re hunting for new listings or more buyers to represent. This isn’t one of those posts!
In fact, we wish more people would come to us looking for referrals in the community. A good real estate broker knows people in the community you can trust, and we're always happy to provide the connection.
If you think about it, brokers pretty much interact with all of the people dedicated to protecting, improving, or maintaining your biggest asset: Your home. Whether it’s a local insurance agent, an honest contractor, or a crack crew of yard and maintenance people, brokers are great sources of “who you should know.” (We’re also reliable sources of locals-only community info!)
It’s too bad that brokers are often involved only in the sale or purchase of a house. We prefer to think of ourselves as a lifetime consultant to our clients, and providing the names of people we would stake our reputation on is simply a part of my ethical obligation to serve.
When you need a referral, please give us a call or shoot us an email. We are more than happy to connect you with the right people.
Steve Hill and Sandra Brenner
Best In Client Satisfaction
Windermere Real Estate
Call/Text: 206-769-957
Seattle Homes Priced Under $250k
There are still over 100 homes priced under $250k in the city of Seattle. For a list of those homes, see them all right HERE.
Curious about home prices in your neighborhood? Find out HERE
For information on any home in Seattle, priced $100k-$10M, give a call, we would love to speak with you!
Steve Hill and Sandra Brenner
Best In Client Satisfation – Zillow and Seattle Magazine
Windermere Real Estate Seattle – Northwest
CALL/TEXT: 206-769-9577
When to Buy a House? Right Now!
After witnessing the housing bubble ‘pop’ just a few years ago, many would be buyers may be hesitant to pull the trigger. Today, we want to explain that the greatest risk a buyer can take right now is actually waiting to buy a home.
We realize that every purchaser wants to be able to get the best deal. They want a great price and the lowest mortgage interest rate possible because those to items together will determine the monthly cost their family will pay. Let’s look at each one:
Are home prices rising?
Just last week, the Case Shiller Pricing Index was released. The index revealed that U.S. home prices increased by 10.2% over the last twelve months. Last month, theHome Price Expectation Survey was released predicting that home values would increase by at least an additional 3.5% for each of the next five years.
If you were waiting for the absolute bottom of the home price declines, you already missed it.
Are interest rates rising?
According to Freddie Mac’s Weekly Primary Mortgage Market Survey, the 30 year mortgage rate shot up to 3.81% last week – the highest level in over a year. This is an increase of a half of a percentage point in the last six months. And the Mortgage Bankers Association, Fannie Mae and the National Association of Realtors all predict that rates will continue rise over the next eighteen months.
Conclusion
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
Considering Buying?
Give us a call and let our experience save you time and money.
Steve Hill and Sandra Brenner
Best In Client Satisfaction – Seattle Magazine
Windermere Real Estate Seattle Northwest
Call/Text: 206-769-9577
21 Thrifty Ways to Deck Out Your Bath
Polishing up a worn washroom needn't require pricey new fixtures or
wall-busting construction. In this gallery: How to make the most of what you have with creative wall and window treatments, salvage-yard finds, and stylish storage ideas.
Read on HERE.
Need more ideas about improving your home for a quick sale? Give us a call, we are ready to help.
Steve Hill and Sandra Brenner
Windermere Real Estate
Call/Text: 206-769-9577
What is an REO?
Just a quick video you might watch in case you're wondering
what an "REO" is…
VIDEO LINK: WHAT IS AN REO?
(had someone ask me the other day, so figured I'd
share this…)
If you'd like a weekly updated list of new "REO/Bank Owned" properties
that hit the market in the Seattle area, just send me an email and I will send them to you the moment they hit the Northwest MLS..
Steve Hill
Five Star Real Estate Professional
Windermere Real Estate
Call/Text: 206-769-9577
