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?

Boost Your Credit Score or Boost Your Spam?

Experian, one of the big 3 credit bureaus, has been actively promoting that consumers can “boost” their credit score using their services. Since I help people with their credit and mortgage needs for my profession, this naturally got my attention.

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RIP RainCityGuide

6a00d834522f5769e2010537042aad970c-600wiRain City Guide, back in the day, was a resource for people interested in all things about Seattle…especially real estate. I was beyond honored to join the RCG panel back in 2007 to represent the mortgage industry. [Read more…]

Our Veterans DESERVE to use a VA Mortgage Loan

I’ve been trying to think about how to title this post without “shaming” real estate agents or home sellers… but I do feel that it’s really unfortunate that some still have a low view of VA mortgages. Men and women who have dedicated their lives to serve our country and protect our freedom have EARNED the privilege to have a VA mortgage loan. Those of us who have not committed to serve do not have this benefit… and it is a benefit. [Read more…]

King County Property Tax Valuation Notice

Did you receive your “Official Property Value Notice” over the weekend? Let’s just say that I’m not surprised to see how much our values have gone up…although, in my opinion, I think the 2018 assessed value of my home is higher than what I could most likely sell it for. [Read more…]

Why is My Mortgage Payment Going Up?

If you live in the greater Seattle area, you may be receiving a notice from your mortgage servicer stating that they need to adjust your mortgage payment because of an “escrow shortage”.  We actually just received such notice from our mortgage servicer. [Read more…]

Common Misconceptions about FHA and Conventional Mortgages

I just received a newsletter from a local real estate agent which had an article about whether buyers should opt for a conventional or FHA loan. I’m pretty certain the real estate agent didn’t write the article, however the author, whoever they are, got a lot of things wrong regarding these two mortgage programs. Many of the items that were wrong are what I think are fairly common misconceptions with these two popular mortgage programs. So I thought this was a grand opportunity to write a post to correct them…I’ll skip the fine hairs 😉 [Read more…]

Beware of Bogus Badness in your Email

There has been rampant wire fraud taking place in the real estate industry. This morning, I received an email appearing to contain a purchase and sales agreement for a new transaction with a link to download the contract.

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