I was just reviewing one of my client’s mortgages and thought I’d share a happy story with you. I’m REALLY proud of them. I first met Ryan and Rachel Renton (yes, I made up the names…but the rest of the story is true), at a home buyers class that I was teaching. Home buyers interested in the down payment assistance programs offered by the Washington State Housing Finance Commission are required to take a “live” class or an online class in order to qualify for the down payment assistance (dpa).
Not long after the half-day class, Ryan and Rachel met with me to get preapproved to buy a home. They had been renting a house for a couple years and were ready to buy their first home together. With the help of their Real Estate Agent, they found their home and submitted an offer which was accepted. One month later, they were moving into THEIR new three bedroom, two bathroom home and were no longer paying rent to a landlord.
They bought the home in 2015 for $259,950 in south King County. With the down payment assistance, and a seller contribution towards closing cost, they just had to provide enough funds for the earnest money deposit of roughly 1% of the sales price.
It get’s better… in 2019, I reached out to them because rates had dropped and it looked like they had built enough equity to refinance, paying off the first mortgage and the down payment assistance. Their home in 2019, appraised for $350,000. In just 4 years, they gained $90,000 in home value from appreciation. With the refi, they were able to reduce their mortgage payment and drop their private mortgage insurance!
Fast forward to today, when I was reviewing their mortgage, online estimates have their home valued at around $385,000. So their earnest money deposit of roughly $2500 five years ago has created about $125,000 in home appreciation. Had they not taken the first step of getting preapproved, I pretty confident they would not have $125,000 sitting around. Of course the funds are not “liquid” but they could sell the home and use those funds to buy their next home, or they could do a cash out refi if they wanted to access some of the equity.
Plus, they have their own home where they can have pets, paint their walls or plant a garden. It’s theirs!
I love my job. It is so gratifying to help people buy homes. It’s especially wonderful to be able to witness their financial well being improving as they build their nest-egg. This afternoon I actually met with a couple who needed to create a game plan to build their credit and employment. I was honored the mother of one them, who happens to be a client, referred them to me.
It’s also gratifying to help people reduce their monthly payments by refinancing, whether it’s reducing the mortgage payment and/or eliminating debt.
If you’re thinking about buying or refinancing your home located anywhere in Washington state, I am happy to help you with your mortgage!
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