Bribery to work with the Builder’s Lender

I’m going to jump right to the point…I think buyers working the builder’s lender is generally not a good idea. Some might say, “But the builder offered us $10,000 towards closing cost, special mortgage interest rates, a new fridge or perhaps an air conditioner… if we worked with their lender! How can this be bad??”

Think about it… where does the $10,000 (or what ever the cost of the incentive is) come from? The builder doesn’t have a big piggy bank of extra cash to fork out just because someone is going to work with their lender. The price of the incentive is factored into the price of the home. Yep, you probably just paid $10,000 too much for the home. Builders have to make a profit – they are not in the business to be a charity.

In addition, if you REALLY want that incentive, whether it’s money towards closing cost or air conditioning in your new home, your Real Estate Agent can certainly try negotiating this for you continuing to work with your preferred lender. It certainly doesn’t hurt for your agent to try negotiating this for you…worst case, if you still really want that air conditioner, you can opt for working with the builder’s lender.

Last but not least, consider this…when you work with the builder’s lender, you are working with the seller’s lender. This lender is dependent on transactions from the builder – they are gravy fed and they’re not going to upset the gravy train. This lender does not truly look out for your best interest, they have more to gain by keeping the builder happy. If you have a challenge pop up, how do you know the loan officer won’t share your information with the builder?

When you are working with possibly the largest purchase and debt of your lifetime, why risk working with someone who is potentially compromised and not looking out for your best interest?

Mortgage Rates Low and Steady…sort of

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Welcome to 2020!

Happy New Year from our family and Hitch

We are just into our second week of the new year and I hope your new year is off to a great start! I like to use this time of year to review my goals and make adjustments to my plans. [Read more…]

2020 VA Loan Limits for Washington State

The loan limits for VA mortgage loans have been announced. 2020 VA loan limits will follow conforming mortgage limits for single family homes.

Mortgage Master Service Corporation will lend up to $2,000,000 subject to Veteran entitlement eligibility requirements.

Home Sellers should really consider accepting VA home buyers. Just because they’re putting less down, does not mean they are less qualified. VA home buyers have EARNED this benefit by serving our country. And these days, VA mortgage loans are not any more or less challenging to process and close than any other type of home mortgage. VA loans do not have monthly mortgage insurance and they have very competitive mortgage rates.

If I can help you with a VA mortgage or any type of home loan for property located in Washington state, please contact me.

‘Tis the Season to not sabotage your credit

Several weeks before the holiday season sets in, we begin to see those commercials I absolute dread. You know, the luxury cars with giant red bows on them…the recipient gushes, “you shouldn’t have!”… and they’re right, the gift giver probably should not have – especially if they’re considering buying or refinancing a home. [Read more…]

2020 FHA Loan Limits for homes in Washington State

Here is a complete list of FHA loan limits for all counties in Washington for 2020. The new loan limits go into effect on FHA case numbers issued January 1, 2020 and after. [Read more…]

Breaking News: 2020 Loan Limits Announced from HUD

HUD has released the FHA loan limits for 2020.

Seattle – King County, Tacoma – Pierce County and Everett – Snohomish County all have higher loan limits at $741,750 for a single family home.  Homes located in King, Snohomish and Pierce Counties qualify for a higher loan amount as the counties are considered “high cost”. 

FHA mortgage loans are not limited to first time home buyers and do not have income limits. Loan limits do vary by the county the home is located in. Here is a complete list of 2020 FHA loan limits for in Washington State.

If you’re interested in buying or refinancing a home located anywhere in Washington state, I’m happy to help!

 

 

Conforming Loan Limits for 2020 for Washington State

Conforming loan limits are increasing for 2020 to $510,400 for a single family dwelling. Counties that are considered “high cost” such as King County, Pierce County and Snohomish County qualify to have a “high balance conforming” loan limit of $741,750. [Read more…]