Their new policy, which took effect January 15, states:
• With a credit score between 500-579 a borrower would be considered if the borrower was able to make a minimum down payment of 10% (gifted funds and other down payment assistance is not allowed)
• With a credit score between 580-599 a borrower would be considered if the borrower was able to make a minimum down payment of 5% (gifted funds and other down payment assistance is not allowed)
• With a credit score 600 and above the minimum down payment would be 3.5%
So what are you waiting for?! Call your Wells Fargo lender now! (I have no affiliation with Wells Fargo; I am simply a supporter of policies that allow more options for the consumer).

1) Become familiar with the market. You probably have an idea of the general area that you would like to buy a home; there are a variety of ways for you to get familiar. One option is to simply pick up the phone and call a Realtor. That person should be happy to talk with you about what is available, what the current trends are in that area, what the prices may be, etc. 2) There are an abundance of websites that allow you to sign up for a FREE update program (we call ours a listing manager account). You can enter your specific criteria including price range, size of the land, number of bedrooms, etc. The more parameters you enter the more restricted the results will be, so if you are just starting out it may be best to keep it simply to price range, or simply to the size of the land that you desire. 3) Go online often and search local websites and watch the new listings and the listings that are selling. This will give you a good idea of the market values.

2) Understand the amount that is needed for the down payment. There is a huge range of amount due for down payment on a home/land. It is a percentage of the purchase price but varies based on the lender you use and the program that best fits your needs. At this point the down payment can be as low as 3% and as high as 20% (more if it is vacant land). The best resource is going to be a local lender. They will undoubtedly start the conversation off with “it depends” but you can usually get them to give a general idea of down payment amounts. If you are at a loss for a lender to contact, your Realtor can suggest a few alternatives.

3) Know how much you can afford. There is nothing worse than falling in love with a home only to find out that you cannot afford the payments. Again, a lender can help you with this magic number. Another tool that I find helpful is one of the online amortization calculators that you can play with the numbers and find out how rates and down payment amount affect the monthly payment. The one I have bookmarked is: http://www.bretwhissel.net/cgi-bin/amortize but there are plenty available.

4) Be sure to include other monthly expenses when you are figuring what the costs will be monthly. Include insurance, taxes, utilities, maintenance items, and any homeowner’s dues or road maintenance amounts.

5) Get your credit score all cleaned up. You are allowed one free credit report for each of the 3 major credit reporting companies annually. Go to https://www.annualcreditreport.com/cra/index.jsp to get started.

GOOD LUCK!

Here’s how:

Text SIR to 87778
Type in this url: m.sir.com/sir

Off you go!

1) Price Adjustments are being made and prices are generally “soft”. On average, we are back to values similar to 2002 in and around the islands. Couple that with phenomenal interest rates and it simply makes sense.

2) Interest rates are still low, for now… If you are “waiting for the rates to go lower” you may miss the boat. We are seeing indications that rates may slowing begin to increase. It makes sense to step forward now and take advantage of these 30 year low rates.

3) Tax deductions in your mortgage payments. Owning a home is a great tax shelter and tax rates favor you if you are a homeowner. As long as your mortgage balance is lower than the price of your home, mortgage interest is fully deductible on your tax return. Deducting the interest on your income taxes helps make the real cost of owning more attractive. Talk to your financial advisor for specifics.

4) Sales prices are lower than replacement values. You have a lot of choices in homes and raw land. But the cost of building can look down right scary if you compare it to buying a pre-existing home. Rates are lower, down payments are lower, and you can move right in upon closing!

5) Pride in ownership. There’s no place like home! Think of all the things you get to do: decorate your house, landscape your yard, brag about how cozy and wonderful your home is, take your Holiday pictures in your home and send them to everyone! You have worked hard to have a home and the sense of accomplishment is invigorating. Enjoy!

For more information about the real estate market in this area go to www.SanJuanConnection.com or email me directly at Michele@sanjuanconnection.com (text to 360.317.5683).

Today most Buyers get the majority of the information they need about a listing or pricing by a click on the internet to one of many sources for free real property information. When a Realtor gets a phone call from a Buyer, for example, in many cases that Buyer already knows what he wants to see and has learned a lot of facts about it online. Online is where most people look for property, but where do they look for Realtors, and how do they pick one? Here are a few places that in my opinion are not the best place to look:
1. The listing agent of the property you want to see. Why might this not be a good idea? Think about it: the listing agent gets paid a commission from the Sellers and has been hired to have the Seller’s best interests at heart. As a Buyer, you may want someone to represent your best interests, especially if you are a first-time Buyer.
2. A phone call to a real estate office. It’s Russian Roulette. How do you know what you will get? The new agent that has only lived in town six months? Someone who talks too fast or drives too slowly? It is a potluck pick for a pretty important position.
3. The guy down at the local tavern that hands out advice on everything under the sun. OK, yes he may have had good or bad experiences with certain Realtors in town, but since you and he are very un-alike, it is only borderline useful.

My suggestion on how to choose a Realtor? Ask yourself what is important to you and call a few Realtors who have good websites on-line. Ask to meet at least three of them, separately, in their offices for a short interview. Sit face to face with them to see how you communicate with each other. There is a Realtor for everyone, and this is an avenue to find just the right one for you.

If I was interviewing a Realtor to be my Buyer’s Agent I would ask how often they would get in touch with me about new listings. I would want to know if they basically communicated by phone or email. I would look at the things in their office and ask about them – family pictures, travel mementos, etc. I would ask them to tell me about their most memorable recent sale. I would ask them what they thought was the most important thing for me to know about the local market at this time. The answers to these questions would give me a good idea if I had found a person who communicated clearly to me. I would know about their values. I would know whether or not they were a whiner or someone with a good sense of humor. I would get a sense of the process they go through for a sale and see if they were detail-oriented.

I would not get into details of talking about certain listings at the first interview. The time spent on specifics should be saved for the person you select to represent you after the interview process. It is unfair to the Realtors to go looking at property with more than one of them. After the meeting, if you get a follow-up phone call (or especially if you don’t) that will be another big hint about your compatibility with the Realtor, as well as their organizational skills.

I know, interviewing a Realtor sounds like a crazy thing. But think of all the time you put into finding a house. You need a person who can “read” your needs clearly. You want someone who is “on the same page.” In today’s market, any Realtor would be happy to give you a few minutes to discuss things. If they won’t do that, you certainly wouldn’t want to use them anyway.

Next: Advice for the Seller