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Tips for Getting the Best Mortgage Rate

In the following article, Brandon Cornett shares 3 tips for acquiring the best mortgage rate. I recommend consulting with a professional mortgage lender to discuss your financing options. Often the best way to find a lender is ask around for a referral.

by Brandon Cornett

As a home buyer, it only makes sense to try and obtain the lowest interest rate when applying for a mortgage. After all, that rate is a primary component of the mortgage payment, so it has a direct bearing on the amount of money you'll pay each month.

But how do you get a low rate when applying for a home loan? This is the question many home buyers want to know. So in this article, I'll explain three important concepts you should keep in mind when seeking the best rates from mortgage lenders.

Concept #1 - Your Credit Score Plays a Role

The first thing to realize is that the interest rate you are offered will be partly determined by your credit score and financial history. In other words, the best mortgage terms are usually reserved for those home buyers with the best credit scores.

What does this mean to you when buying a home and applying for a loan? It means that your credit score will often dictate the type of interest rates you are offered. So if you have a bad credit history, and your score illustrates this to the lender, then there's little chance you'll be getting the best interest rate. If this is the case, you should focus on improving your credit score before you go shopping for a mortgage online.

Concept #2 - The Mortgage Type Makes a Difference

The type of home loan you select also plays a role in determining the interest rate you receive. So it's important for home buyers to understand this concept as well. For example, an adjustable rate mortgage (ARM) loan will generally come with a lower interest rate than a fixed-rate loan -- but that is only for the first few years. Of course, the rate on an ARM loan will also adjust at some predetermined point in the future, and typically this adjustment means a higher interest rate! That's another thing to keep in mind when mortgage shopping.

Concept #3 - You Must Compare Lenders on Key Factors

There is one last thing I want to touch on, and that is the need to shop around in order to get the most favorable rates from a lender. Shopping for a loan is just like shopping for anything else -- you have to compare multiple lenders in order to find one that offers the best rates and terms on the loan.

Many buyers don't realize that ten different lenders may offer you ten slightly different mortgages. The interest rate will vary, the terms will vary, the closings costs will vary ... you get the idea. And these make a big difference in the amount of money you pay over the long haul. That is why it's so important to compare lenders and to carefully review the information they present to you, ideally with a financial advisor of some kind (or at least someone who is mortgage-savvy).

* Copyright 2008, Brandon Cornett.

About the Author: Brandon Cornett publishes a number of educational websites for consumers. He is the creator of this real estate information website as well as the Home Buying Institute.

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Is the Real Estate Market Tide Turning?

Quick Housing Market Facts

Here are 3 housing market facts offered by the National Association of Realtors®.

Remember to consult your local Realtor® for additional LOCAL housing market facts.

Housing Market Fact #1

A temporary $7500 Tax Credit is now available for any qualified purchase before July 1, 2009. *Housing and Economy Recovery Act, H.R. 3221

Learn More About the $7500 Tax Credit

Housing Market Fact #2

Homeowners may deduct mortgage interest and property taxes as an expense against income.

Housing Market Fact #3

You may claim a deduction for certain home expenses if you use part of your home for business. *IRS Form 8829 - Expenses for Business

*source: National Association of Realtors®

Click to Read  < "The 9 Steps to Owning" > Click to Watch Video 

Down Payment Assistance Programs for Washington State Home Buyers 

Search Washington State Real Estate MLS Listings

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

How to get a down payment

1. Set up an automatic saving plan.
2. Get a gift from your parents, grandparents, other relatives or friends.
3. Sell a car, boat, motorcycle, collectibles or other assets.
4. Liquidate stocks, mutual funds, savings bonds or other investments.
5. Allocate your income tax refund.
6. Take a loan from your 401(k) retirement plan and repay yourself with interest.
7. Withdraw funds from your 401(k) plan, subject to taxes and penalties.
8. Collect on a loan that you made to someone else.
9. Get a bonus from your employer.
10. Explore homebuyer programs for public servants if you qualify.
11. Apply for a state or local government down-payment program.
12. Use a private down-payment assistance program.

source: By Bankrate.com

Down Payment Assistance Programs:

Down Payment Assistance Programs for Washington State Home Buyers 

Search Washington State Real Estate MLS Listings

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

A Message not only for Realtors

In a recent event I attended, the Vice Chairman of the Board for Keller Williams, Mo Anderson, delivered a strong message about succeeding in the current Real Estate market. She said that to succeed, you must commit to "Self-Mastery," and that includes mastering your mindset. To become the master of your mindset, you must:

1.   Get disciplined

2.   Get rid of "worry of the mind."

She also stated that "We need to 'hear' the right things." Mo referenced the scripture verse Mark 4: 24-25. I have been carefully reflecting on these words. Here is what that verse says: 

Mark 4:24-25 (New International Reader's Version) 

 24 "Think carefully about what you hear," he said. "As you give, so you will receive. In fact, you will receive even more. 25 If you have something, you will be given more. If you have nothing, even what you have will be taken away from you."

The Scholars Version translates these verses like such: "...The standard you apply will be the standard applied to you, and then some. In fact, to those who have, more will be given, and from those who don't have, even what they do have will be taken away!"

I hope this message give offers you encouragement and words to reflect upon. May we all continue to be blessed in our business and our lives.

Real vs. Personal Property

At closing time, the last thing you want is a dispute over what goes with the house and what doesn’t. But it isn’t all that unusual for a buyer to think a particular item is included in the sales price, while the seller never had any intention of including the same item! Classic examples include window coverings, lighting fixtures and chandeliers. But just about anything which might be construed by a buyer as being “part of the house” has the potential for misunderstanding and disagreement.  

Generally, the law says that anything which is part of the land or attached to the house and is immovable, or can’t be removed without damage, or anything which is incidental or appurtenant to the land is real property. Personal property is basically everything else – the possessions you take with you when you move.  

The law recognizes the intent and manner with which an item is attached in determining whether an article or fixture is real or personal property.  Built-in appliances are usually considered real property, while free standing ones are usually personal property. If removing the item requires pulling nails, it’s probably real property. If it can be unscrewed and removed without leaving any damage, it might be an item ready to cause some disagreement!  

To avoid problems, both buyers and sellers should make detailed lists of any items to be included in the sale before closing.  As a seller, give your list of items to be included to the closing agent. If there is something you want to take with you, and it requires removing a screw or nail, put it in the contract.  

Remember, as with everything else in real estate, it’s all negotiable. If there is a unique item you want included in your purchase, you may be able to get it included at a reasonable price.  Especially if the item won’t fit in with the new home the seller is moving to.     

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The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

List with a Broker vs. For Sale by Owner

Contemplating hiring a Realtor® to list your home or to attempt the For Sale By Owner? Below is an article posted by MSN Real Estate that may help you determine which option is best for you.

Before you read through the article, study these 8 reasons why home sellers need a Realtor®:

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What to expect whether you hire an agent or go it alone.

By MSN Real Estate

Consider these points when deciding whether or not to work with a listing agent to sell your home. If you're buying a home, think about working with a buyer's agent.

If you work with an agent

If you work alone (FSBO)

• You are in charge of the transaction, including marketing your property, negotiating the purchase, and handling the paperwork. Educate yourself on relevant federal laws and state regulations governing real estate sales.
• You do your own market research (including possibly hiring an appraiser) to determine your home's value.
• You create your own marketing plan and decide how you will handle inquiries from prospective buyers or their agents.
• You decide how to prepare your home for sale, including arranging for pre-sale repairs, inspections, or other necessary services.
• You field all buyer inquiries, show the house yourself, handle all negotiations, and move the paperwork through the transaction.
• You pay for the buyer's agent's services, unless the buyer is also working alone or has hired the agent for a set fee. You may also pay for services you require during the transaction, such as legal advice or help negotiating the contract. Discount brokers offer individual services for flat rates.

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Tacoma Real Estate LINKS:

Free Highest Price Analysis - Get your home's value (CMA)

Staging Your Home for Sale

Improvements That Pay

FREE Home Seller Resources

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The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

Neighborhood Sales Alert

Find out the sales price for the house down the street. With my free "Neighborhood Sales Alert," I can give you the sales prices of all recently sold properties in your neighborhood. Or, I can give you the sales price of a specific property. Or I can even tell you the prices of homes in the Tacoma area.

For a FREE Neighborhood Sales Alert, simply contact The Trey Affolter Team.

Additional Articles for Tacoma Area Home Sellers:

5 Good Reasons to Sell Your Home During the Holidays

6 Reasons to Stage Your Home Before Selling

Declutter Your Tacoma Real Estate Home

Myths About Selling Your Tacoma Real Estate Home in a Slow Market

Tacoma Real Estate LINKS:

Free Highest Price Analysis - Get your home's value (CMA)

Staging Your Home for Sale

Improvements That Pay

FREE Home Seller Resources

 _________________________________

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

Warning! This house could be hazardous to your health!

You’d be hard pressed to sell a home with such a label attached to it. And yet, many older homes in the United States might qualify. You see, prior to 1978, paints and other products containing lead were widely used in homes and offices. Chipping and peeling paint can expose occupants to this hazardous material. In addition, many older plumbing systems utilized lead-based solder to join pipes. This lead can leech into the water, especially when running hot water. In certain areas, high concentrations of lead can even be found in the ground soil.

Unknown in years past, it is now clear that lead causes a number of health-related problems. In children this can include growth and learning disabilities, headaches and even brain damage. Adults are not immune either. High levels of lead have been tied to problem pregnancies, high-blood pressure and digestive problems.

Many solutions exist for cleaning up lead concentrations. Depending upon your situation, you may find one of these an adequate solution. Removing lead-based paint, for example, may be as much trouble as it is worth. First, just the act of stripping the paint from the walls is likely to create dust and debris which is more likely to be ingested. Given these hazards, you should consult a certified contractor to complete this kind of work. Short of removing the paint, you may be able to get by with covering the old, lead-based paint with a coat of sealant specifically designed for this purpose. Once again, a certified contractor will be able to recommend an appropriate solution. Financial assistance is even available in certain circumstances.

So even though a house may not carry a warning label from the EPA, a little common sense and a sharp eye should keep your family safe.

Search Washington State Real Estate MLS Listings

Down Payment Assistance Programs for Washington State Home Buyers 

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

Mortgage Interest Rates - 5 Things a Home Buyer Should Know

If you are considering purchasing a home in the Tacoma Real Estate area...or in Pierce, south King, or north Thurston Counties, like most buyers you will need to attain a home mortgage loan. Mortgages can be a little scary, so edcuating yourself a bit, and finding a reputable lender are steps you can take to make the process more comfortable.

In the following article, Brandon Cornett, offers some guidance to home buyers shopping for a mortgage loan. Additional resources below article.

by Brandon Cornett

There's plenty of homework involved when buying a home for the first time. The terminology alone can make your head spin. But one of the most important concepts you should understand is the concept of mortgage interest rates and how they are applied.

Specifically, you need to know how you can get the lowest interest rate on a mortgage loan by reducing your debt and improving your credit. These are the things we will discuss in this lesson.

Let's start with some general terminology. When you buy a home, you will hear the terms "mortgage rate" and "interest rate" used quite often (especially when you start dealing with lenders. Within the context of home buying, these terms mean the same thing. They both refer to the interest rate the lender gives you when approving you for a mortgage loan.

This is a key concept to grasp, because it will partly determine the size of your mortgage payment. Obviously, you want to get the lowest mortgage interest rate possible, because this in turn will reduce the size of your monthly payment.

Getting the Lowest Interest Rates on a Mortgage

Now that you understand the core principles at work here, we get to the million-dollar question that every home buyer wants to know: "How do I get the best interest rate on my mortgage loan so I can save money?" The answer to this question lies within the five key points listed below:

1. Interest is the first 'I' in the acronym PITI, which refers to the four parts of a mortgage payment — principal amount, interest, taxes and insurance. PITI. So by getting the lowest possible rate on your home loan, you are reducing one of the four key components of the loan.
2. The mortgage interest rates offered by lenders will vary from one borrower to the next — often significantly. This has a lot to do with a person's credit score. In order to qualify for the best rates on a mortgage loan, you need to have excellent credit. This is something to keep in mind when you see a "teaser rate" offered in an advertisement. There's probably an asterisk with some fine print that says "for qualified borrowers." This means they are only offering their lowest interest rate to a select group of people above a certain credit range. So it may or may not apply to you.
3. To get the lowest rate on a mortgage loan today, borrowers need even better credit than they did a few years ago. This comes as a result of the subprime mortgage crisis that spread throughout our economy. Lenders have stricter requirements. It's harder to qualify for a loan, and it's a lot harder to qualify for the lowest mortgage interest rates on your loan. To get the best rates in the post-mortgage-crisis economy, you will probably need a credit score of 750 or above.
4. As a home buyer, you should learn the advantages and disadvantages of fixed-rate and adjustable-rate mortgages. The adjustable mortgage (ARM) gets its name because it starts off with a relatively low interest rate, but after a few years it will adjust or "reset" to a higher rate. Many of the people who had their homes foreclosed upon in 2007 - 2008 were people who had adjustable / ARM loans that they held onto past the adjustment point (instead of refinancing). The mortgage interest rate shot up after a few years, and they could no longer afford their homes. Learning the difference between these loans will you avoid becoming a statistic.
5. If you plan to stay in the home more than a handful of years, then you might want to consider the fixed-rate mortgage. As you can probably guess by the name, this type of mortgage keeps the same interest rate over the life of the loan, regardless of whatever ups and downs happen in the economy. So you have a greater level of certainty over the long haul. A common (but somewhat risky) strategy among home buyers is to start of with an ARM loan in order to secure the lowest mortgage interest rate possible, and then to refinance into a fixed-rate loan a few years later before the ARM adjusts. If the value of your home drops during that initial period, you may not be able to refinance. We are seeing a lot of this right now. So be realistic about your long-term plans, and choose your mortgage accordingly.

This article will help you understand what it takes to get the lowest mortgage interest rate when buying a home. But your research and education should not stop here. To be a smart consumer, you must continue learning about the topics covered above. In particular, I recommend that you read up on the differences between adjustable and fixed-rate mortgages, the pros and cons of each type, etc. This is a key area of research that many home buyers skip over ... much to their detriment.

I hope this tutorial helps you secure a low interest rate on your mortgage loan, and I wish you all the best in your home buying experience.

* Copyright 2008, Brandon Cornett.

About the Author: Brandon Cornett publishes a number of educational websites for consumers. He is the creator of this real estate information website as well as the Home Buying Institute.

Additional Featured Real Estate Articles:

Types of Mortgage Lenders - Tacoma Real Estate

Locking in Your Mortgage Rate - Tacoma Real Estate

3 Tips for Getting the Best Mortgage Rate - Tacoma Real Estate

What Types of Mortgage Lenders Are There?

There are a number of types of primary mortgage lenders that you may encounter when shopping for your mortgage loan. To give you a better understanding of these service providers, a brief explanation is provided below.

• Mortgage Bankers typically originate loans and then sell these loans to the secondary mortgage market shortly after funding. (The mortgage banker may or may not sell the servicing of the loan.) Often mortgage bankers have attractive loan programs and rates.

• Portfolio Lenders make loans with the institution's own funds and keep the loan on the institution's books rather than immediately selling it to the secondary mortgage market. Many institutions engage in mortgage banking as well as portfolio lending.

Since portfolio lenders fund the loans, they are not confined to Freddie Mac/Fannie Mae guidelines. After a portfolio loan has reached its one year anniversary date without any late payments, it is considered seasoned and may be sold to the secondary mortgage market even if it does not meet Freddie Mac/Fannie Mae guidelines.

If a portfolio loan is sold to the secondary mortgage market, the portfolio lender may continue to service the loan.

• Direct Lenders fund their own loans. Direct lenders usually fall into the category of a mortgage banker or portfolio lender.

• Correspondents act on behalf of one or several lenders (sponsors) throughout the origination and closing. The loan is usually underwritten by the sponsor. The correspondent acts as the lender's agent. The correspondent may also service the loan for the lender.

• Mortgage Brokers work as intermediaries between lenders and borrowers. Mortgage brokers have access to a number of lenders and often offer the most variety in loan programs. Brokers assist the borrower in filling out the loan application, obtaining the credit report and appraisal, selecting a loan program and finding a lender to fund the loan. In general, brokers do not make the decision to extend the loan and do not fund the loan.

The mortgage broker may be paid by the borrower or the lender. Payment to the broker is typically included in the closing costs as either fees or points.

• Wholesale Lenders underwrite and fund mortgage loans. Wholesale lenders may also service the loan payments and ensure the loan's compliance with underwriting guidelines.

• Banks, Credit Unions and Savings & Loans use funds gathered from their customers through checking, savings and certificates of deposit to make mortgage loans. The institution may hold the loan in its portfolio or sell it to a secondary mortgage market.

Secondary Mortgage Market

When you apply for a home mortgage, you may be under the impression that the mortgage lender will be servicing the loan until it is paid off. This may not be the case. It is common practice for the mortgage loan to be bought and sold to a secondary mortgage market investor, sometimes more than once in the life of a loan.

These transactions will not affect your mortgage amount or your mortgage payment. The secondary mortgage market is comprised of investors like Fannie Mae and Freddie Mac. Selling loans to the secondary mortgage market provides primary lenders with funds needed to issue new mortgage loans.

Search Washington State Real Estate MLS Listings

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

E-Cycle Washington is Here!

As of January 2009, The Department of Ecology is offering free recycling for many electronic items.

E-Cycle Details provided by http://www.ecyclewashington.org/:

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• televisions
• computers
• computer monitors
• portable or laptop computers

Please note that computer peripherals such as keyboards, mice, and printers are not included in this program.

Why recycle electronics?
Many electronics, especially TVs and computers, contain toxic materials such as lead, cadmium and mercury. Reusing and recycling electronics keeps these toxic materials out of our landfills and incinerators and also recovers valuable resources. The electronic equipment this program collects will be taken apart and separated into materials such as glass, plastic, metal and toxic chemicals. All recycling will follow performance standards set up by the Department of Ecology.

What if my electronic equipment still works?
Many groups and businesses focus on making used electronics available for reuse. Click here for more information on donating your electronics for reuse.

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The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

Search Washington State Real Estate MLS Listings

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

Gated Communities

The popularity of living in gated, or private communities has been rising in recent years. It used to be that gated communities were thought of as being only for the rich. But today they are becoming more and more popular with middle and upper middle class families. Security is usually given as the biggest reason for choosing to live in a gated community. Among the other reasons people are attracted to living in these communities are protecting property values and lifestyle.Many gated communities are designed with amenities built around a particular lifestyle, with golf courses, tennis, swimming pools, or equestrian facilities.Gated communities are usually located on some of the most desirable land in the area. Prime land, combined with careful planning and HOA rules create an environment where home values hold up extremely well.

Aside from the gates or walls, the second most defining characteristic of gated or private communities is the Homeowner’s Association (HOA).The HOA is made up of all the owners of the development. The HOA is responsible for collection of the Association fees and making and enforcing the “rules” of the community.It is often also responsible for maintaining the public aspects of the community, such as streets, security, parks, etc.

The rules set by the HOA can vary a great deal, depending on the individual development.Typically the HOA will have rules pertaining to upkeep and appearance of homes within the development, specifying the colors of paint on outside walls, types of fencing, guidelines for landscaping and storage of boats or recreational vehicles.

Gated communities aren't for everyone.But with strong protection of property values, increased security, less traffic and amenities for your specific lifestyle, they are appealing to more people each year.

Search Washington State Real Estate MLS Listings

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

Home Inspection Tips for Home Buyers

In this featured article by Brandon Cornett, he outlines Home Inspection Tips for Home Buyers. Consult your Realtor® regarding your home inspection.

The home inspection is an essential part of the home buying process. In this article we will talk more about the home inspection, how it works, how to find an inspector, and related topics.

What Does a Home Inspector Do?

In short, an inspector checks the safety and functionality of your potential home. He will focus primarily on the structural and mechanical aspects of the home (as opposed to cosmetic or aesthetic items).

It's a good idea to get a home inspection as soon as possible after the seller accepts your offer. This will help you determine if there are any major problems with the property -- and sooner is better than later. You should also make the purchase agreement / contract contingent upon the home inspection. That way, if the inspection uncovers a major flaw that you're unwilling to accept, you have a legal way out of the contract.

Don't confuse this process with the home appraisal process. The appraisal protects the lender's financial interests in the property. The home inspection protects your interests, as the buyer. The appraisal is the bank's way of determining whether or not the house is worth the price you've agreed to pay for it. The inspection is your way of identifying structural or mechanical problems with the house. Two different things entirely.

Where to Find an Inspector

Finding a qualified home inspector is usually fairly simple. Here are some ideas:

• Ask a friend or coworker who has recently bought a home in the area.
• Ask your agent if he or she can recommend a qualified person for the job.
• Visit the American Society of Home Inspectors website at ASHI.org.
• Visit the National Association of Home Inspectors website at NAHI.org.

When you find a candidate, ask how many home inspections he has done. Also ask what certifications he carries. The person you choose should be certified by one of the national associations.

Who's Fixing What?

So you've found someone to inspect the property, and he has come back with a list of discrepancies. Now what? When you review the inspector's list with your agent, you'll have to decide which items (if any) you want the sellers to repair. Like nearly everything else in the home-buying process, the fix-it list is negotiable. When you submit your list of requested repairs to the sellers, you face one of several outcomes:

1. The sellers will agree to fix all of the items.
2. They will only agree to fix some of the items.
3. They will refuse to fix anything (most common in a seller's market).
4. The seller will reduce the price in lieu of certain repairs.

How you proceed in light of the seller's response is up to you, with your agent's input. A good rule of thumb -- don't ever turn a blind eye to a major repair issue just because you're excited about getting in the house. If you're an experienced investor and you're buying the house specifically to fix it up, that's one thing. But if you're buying your first home, be conservative and carefully consider each item on the inspector's list. It will benefit you in the long run.

by Brandon Cornett

* Copyright 2008, Brandon Cornett.

About the Author: Brandon Cornett publishes a number of educational websites for consumers. He is the creator of this real estate information website as well as the Home Buying Institute.

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Is the Real Estate Market Tide Turning?

Real Estate Market Improving

The article below offers more proof that the Real Estate market may just be turning for the better. Real Estate is a local business, consult a professional Realtor® for your market's conditions. 

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featured article...

FAIR OAKS, CA - The nation’s foreclosure hemorrhage has finally slowed and 2009 should see a significant decline in foreclosures as buyers return, pushing home prices up and fueling a real estate recovery, according to the 2009 Outlook from ForeclosureS.com.

“Recovery is underway. Affordable is back in the housing market,” says Alexis McGee, real estate expert, educator, and president of ForeclosureS.com. “In 2009, housing will not only recover, but we’ll see buyers leap into this market in droves, depleting our housing oversupply, and actually put higher price pressures on the market.”

“With 4.5% fixed mortgage rates, housing prices lower than they were 'pre-housing bubble', commodity prices lower, tax credits available for homebuyers, and the government eager to stimulate our economy, for the first time in years I can see prices rising again in 2009” adds McGee. “This is a great time to buy properties for investors -- to buy properties at wholesale prices below today’s already low prices -- rent them out for positive cash flow and then sell them for big profits in late 2009 once price appreciation kicks in.“

The latest U.S. Foreclosure Index by ForeclosureS.com shows a slight drop from 84,534 to 84,291 in the number of properties repossessed by lenders following foreclosure last month over October. These are REOs or lender-owned real estate. But that’s off nearly 21% from September’s 106,415 REO filings. (Year to date 12.6 of every 1,000 households nationwide have been lost to foreclosure.)

“Certainly some of the drop reflects growing results of government and private efforts to keep homeowners in their homes,” says McGee. “But the recovery takes shape when you factor in other things like what the National Association of Realtors calls ‘solid’ gains from a year ago in existing home sales in some key areas, and the fact that many of the same areas are seeing dropping home prices. Fewer foreclosure actions were initiated in the last quarter, too, according to the latest Mortgage Delinquency Survey from the Mortgage Bankers Association,” McGee adds.

“California is a great example of what’s happening now and what lies ahead for the housing sector. Long a leader in the subprime mortgage mess and rising numbers of foreclosures, the state’s foreclosures have slowed significantly,” says McGee.

The latest U.S. Foreclosure Index numbers show November REO filings in the state down to 15,978 in November, down 6.55% from October and off nearly 50% from September. Home prices there have come down, too, as much as 39.4% from the third quarter from a year ago in some areas like Riverside-San Bernardino-Ontario, according to National Association of Realtors numbers. That’s left many homeowners that bought their homes at high price points with upside down mortgages—they owe more than the value of the home. But it’s also made homes more affordable for plenty of other people. Solid and in many cases rising existing homes sales support that, adds McGee.

In November, another perennial leader in foreclosures, Arizona, saw its REOs and pre-foreclosure filings drop (down 5.19% and 5% respectively), according to U.S. Foreclosure Index numbers.

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Is the Real Estate Market Tide Turning?

First-Time Home Buyer
Tax Credit Fact Sheet

2008 Housing Stimulus Legislation

Who is Eligible?

• The $7,500 tax credit is available for first-time homebuyers only or if you have not owned a principal residence in the past 3 years.
• All U.S. citizens who file taxes are eligible to participate in the program.

Types of Homes thatQualify for theTax Credit

• All homes within the United States, whether single-family, town homes, or condominiums will qualify.

              However, there are several conditions:

                 •  The home must be used as a principal residence, and

                 •  The buyer has not owned a home in the prior three years.

•  The tax credit includes newly-constructed homes.

Income Limits

• Homebuyers who file as single or head-of-household taxpayers can claim the full $7,500 credit if    their adjusted gross income (AGI) is less than $75,000. (The price of the purchased property must be $75,000 or more to receive the full credit; otherwise the tax credit will be 10% of the sales price.)
• For married couples filing a joint return, the income limit dou­bles to $150,000.
• Single or head-of-household taxpayers who earn between $75,000 and $95,000 are eligible to receive a partial first-time homebuyer tax credit.
• Married couples filing jointly who earn between $150,000 and $170,000 are eligible to receive a partial first-time homebuyer tax credit.
• The credit is not available for single taxpayers whose AGI is greater than $95,000 and married couples filing jointly with an AGI that exceeds $170,000.   

Effective Dates for theTax Credit

First-time homebuyers could receive a $7,500 tax credit for the purchase of any home on or after April 9, 2008 and before July 1, 2009. To qualify, you must close on the sale of the home during this period.

Tax Creditis Refundable

• A refundable credit means that if you pay less than $7,500 in federal income taxes, then the government will send you a check for the difference.

            ? For example, if you owe $5,000 in federal income taxes, you would pay nothing to the IRS and receive a $2,500 payment from the government.

            ? If you are due to receive a $1,000 tax refund from the government, your refund would increase to $8,500 ($1,000 plus $7,500 from the homebuyer tax credit).

• If you purchased the home in 2008, the tax credit is taken on your 2008 tax return. If you buy in 2009, you have the option of taking the credit on your 2008 or 2009 returns.

Payback Provisions

•  The tax credit is an interest-free loan that must be repaid over 15 years.
•  The minimum repayment amount must be 15 equal annual installments. For example, if the credit amount is $7,500, then the homebuyer must repay a minimum of $500 each year for 15 years.
•  A homebuyer must begin repaying the credit two tax years after claiming the credit. For example, if the credit is claimed on the 2008 tax return, repayment of $500 (or less, if the credit amount is less than $7,500) per year begins with the 2010 return.
•  If the homeowner sells the home for a profit and there is a remaining credit, then the homeowner is required to repay the remaining credit during the tax year of the home sale. The amount of the repayment will depend upon the amount of profit from the home sale.

             ? If the profit on the sale is more than the remaining credit, then the homeowner must repay the entire remaining credit.

             ? If the profit on the sale is less than the remaining credit, then the homeowner must repay an amount equal to the profit on the home sale. The remaining credit payback will be forgiven.

             ? If the homeowner sells the home but did not make any profit on the home sale, then the remain­ing credit payback would be forgiven.

Further information regarding the tax credit may be found at http://federalhousingtaxcredit.com or www.irs.gov. This information is provided for general awareness only, and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind. Please consult with your tax professional for complete details.

Additional Featured Real Estate Blog:

Down Payment Assistance Programs for Washington State Home Buyers

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Current Home Buyer Down Payment Assistance Programs:

• $7,500 Tax Credit for Homebuyers     (Expires June 30, 2009)

• Washington State's HOUSE KEY Home Ownership Program

• HomeChoice | Assistance for Persons with Disabilities

• House Key Veterans Program

• USDA Rural Development Home Ownership Program

• City of Tacoma Down Payment Assistance Program

• Pierce County Housing Programs Down Payment Assistance Loan

• City of Lakewood Down Payment Assistance Loans   

Call The Trey Affolter Team @ 253-222-6000

to learn more and to take advantage of the Down Payment Assitance Programs!

Tacoma Real Estate, Pierce County Real Estate, Thurston County Real Estate, King County Real Estate

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The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

Showing off the new home!

This funny Dutch commercial reminds us that a huge walk-in closet is almost every woman's dream. But, what do guys go nuts...

Why Are These Guys So Happy? - Watch more Free Videos

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate.

253-222-6000

http://www.TreySellsHouses.com

Keller Williams Realty

Staging Your Home For Maximum Profit - Tacoma Real Estate 

Experts agree, staging a home for sale is important for the success and to maximize a seller's earning potential. More importantly, buyers agree and tend to react more favorably to a home that is shown in it's best light.

Distraught sellers who need to generate more interest in house that has been languishing on the market for months should consider 10 steps from MSNBC financial guru Laura T. Coffey

1. Can the clutter. Pack up knickknacks, pictures, piles of paper and furniture that makes the place look crowded.
2. Let the light in. Take down any heavy drapes.
3. Scrub-a-dub-dub. Shampoo soiled carpets, Scrub the front door. Repaint scuffed walls. Tidy up the lawn and trim the shrubs.
4. Get moving on the "honey do" list. Fix everything that is in need of repair.
5. Enhance the view. Erect a fence or plant shrubbery to improve or obscure the view of unattractive nearby properties or streets.
6. Try weeknights. Holding an open house on Wednesday may attract a different crowd.
7. Ask for criticism. Consult with buyers’ agents for their feedback.
8. Send the owners away. Ask them to vacate when potential buyers come around so they can talk freely.
9. Rent to own. Give a potential buyer a little credit .Becoming a landlord may keep you from having to shoulder two mortgages.
10. Drop the asking price. And figure out the lowest amount you're willing or able to accept.

Source: MSN Money, Laura T. Coffey (01/06/2009)

Bonus Home Staging Article:

 Reasons to Stage Your Home Before Selling

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Links & Resources:

Myths About Selling Your Tacoma Real Estate Home in a Slow Market

Free Highest Price Analysis - Get your home's value (CMA)

Staging Your Home for Sale

Staging Your Home for Sale Video

De-clutter Your Tacoma Real Estate Home

Improvements That Pay

FREE Home Seller Resources

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

Green Remodeling Your Home - Adding On

If you’re considering making an addition to your home, to "Go Green," pay attention to these particular possibilities:

• Don’t add more than you need. Consuming less is always eco-friendlier.
• Install ceiling fans to keep warm air down in the winter, and to provide cool air in the summer.
• Install insulation in the walls and attic to prevent heat transfer.
• Strategically place windows, shades, and overhangs to take advantage of the sun’s heat.
• Choose eco-friendly flooring such as Bamboo, cork, or reclaimed wood. If you install carpet, select a product certified by the Carpet and Rug Institute's Green Label programs.
• Choose eco-friendly paints. 

*helpful sources: www.nalo.com, by Alayna Schroeder

Additional Resource for a Green Remodel:

Green Remodel Your Home's Kitchen - Tacoma Real Estate

"Go Green" - Green Remodel Your Bathroom - Tacoma Real Estate

The 7 Commandments of a Green Remodel for Your Tacoma Real Estate Home

Free Insulation for Tacoma Real Estate Home Owners

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The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

Green Remodeling a Bathroom

Second only to kitchens, bathrooms are another top place home owners remodel. Eco-friendly, "Green" options include:

• Replace toilets with low-flow models.
• Install tiles made of recycled content.
• Use flow reducers on the shower and sinks so you’re using less water.
• Put in a fan to keep air circulating and to prevent mold growth.

*helpful sources: www.nalo.com, by Alayna Schroeder

Additional Resource for a Green Remodel:

Green Remodel Your Home's Kitchen - Tacoma Real Estate

The 7 Commandments of a Green Remodel for Your Tacoma Real Estate Home

Free Insulation for Tacoma Real Estate Home Owners

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The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

Make a Good Home Buying Decision in 2009 - Top 5 Tips

You can be a positive home buying statistic in 2009! Tacoma Real Estate home prices are down, mortgage interest rates are at record lows, and it's a buyers market. Still, you want to make an educated investment. Help yourself by reading the following 5 tips and consult with a local Realtor®.

5 Home Buying Tips in 2009:

1. Buy for the long term

If you plan to buy a home in the Tacoma Real Estate area in 2009, your best bet is to buy a home that you plan to live in for at least 3 years.

2. Understand your local market

Don't get caught up in the national housing trends. Real Estate has always been and will continue to be local. So, pay more attention to what's going on in the market you are considering purchasing. The Tacoma Real Estate market and the surrounding area has fared better than most. Consult with a professional Realtor® about the local market. 

3. Search for deals

A local Real Estate professional can also help you locate good deals. In addition to working with a Realtor®, read the local paper and search online to get more educated on the local market.

It is definitely a buyers market, and with interest rates at record lows, this is a fantastic time to invest in the Tacoma Real Estate market and surrounding areas of Pierce, King, and Thurston Counties.

Be cautious though, while negotiating is a good tactic, be careful not to go overboard. Have your Realtor® show you comparable homes that have sold recently in the area, then calculate your offer with their help.

4. Do your homework if buying a foreclosure

Be careful purchasing a foreclosure just because it's cheap.

While foreclosures can offer home buyers discounts, occasionally such properties can be "money pits." Previous owners of foreclosed homes often leave them in poor condition, and the costs to improve the home could eat into the initial money you saved.

Before you decide to invest in a foreclosure, consult your local Realtor®.

5. Buy a home within your budget

Even if you find the perfect home, make sure you can afford it. You may qualify for the home mortgage, but make sure you have a budget and that the payment works into your budget.

Follow these 5 steps, consult with a local Realtor, and be a positive home buying statistic for 2009.

Search Washington State Real Estate MLS Listings

Further advice is offered in the additional articles below. Educate yourself!

Are there risks with buying a Short Sale or Pre Foreclosure home?

No, not really. A Short Sale is when a home seller is selling their home for less than what they owe the bank. There are many reasons why a home owner may be doing this, but it may just be necessary to sell their home.

Tips for Buying a Short Sale of Pre Foreclosure Home:

1. Make sure title insurance is in place.
2. Verify that title is clean.
3. Make sure that a foreclosure date, if there is one scheduled, is not too close to interfere with your transaction.
4. Try to defer any costs, such as inspections or appraisals, until you have Short Sale approval from the current Lien Holder.
5. The Short Sale negotiating process can take quite a bit of time. You must be willing to be patient and be prepared that the bank may decline or counter your offer.
6. Consult with a professional Realtor® with Short Sale transaction experience.

Suze Orman explains tips and risks with buying Short Sale homes in this video. 

Buy Tacoma Real Estate Foreclosures

Buy Pierce County Real Estate Foreclosures

Contact The Trey Affolter Team for Short Sale Homes

 Down Payment Assistance Programs

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate.  

253-222-6000

http://www.TreySellsHouses.com

New Tax Breaks to Save You Money

In the attached video, Suze Orman highlights three new tax breaks that every home owner should know. Tax breaks for owner's selling their home as a "Short Sale," owners with Private Mortgage Insurance (PMI), and owners who lost a spouse and are looking to save taxes on Capital Gains.

1. Loan Forgiveness Tax Break

For owners who need to sell their home at a price for less than what is owed to the bank, they do what is called a Short Sale. The new law does not require income tax owed on the amount of loan forgiveness for a primary home bought or improved upon between 1/1/07 - 12/31/09. The loan forgiveness is the amount of debt relieved.

2. PMI - Private Mortgage Insurance Tax Deduction

PMI is required on loans when a borrower puts less than 20% down on a home. PMI tax deduction is extended through 2009 if the homeowner's income is less than $100,000 a year.

3. Capital Gains Tax Exemption

There is also a new tax law change to the $250,000 per person Capital Gains tax exemption. A married couple is able to claim up to $500,000 exemption, up to $250,000 each. The new law offers help to cover a lost loved one's exemption. Now, if the home has been a primary residence, the homeowners have lived there 2 of the past 5 years, and they sell the home within 2 years of the spouse passing, they can claim the additional $250,000 exemption.

Watch the attached video for further details and consult your accountant or financial advisor to determine if you can take advantage of these new tax breaks. 

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com