Alice is the Key to Your New Home

Sunday, July 12, 2009

Cool SummerFest - Free T-Shirts!

Don't care for the heat we've been having? Then today (11-7) should be a welcome change and the perfect day to get out to the Junction and enjoy SummerFest activities. I'll be hosting the Prudential booth, across from Talarico's, from 11-1 and 3-5. If you can correctly tell me (or correctly guess) the current statistic for average days on market for W. Seattle homes, you will win a free T-shirt! Lots of other fun little give-aways as well. Hope to see you there!

Saturday, July 11, 2009

Meet me at SummerFest!

If you're looking for something to do this afternoon & evening, look no further than the Junction in our own West Seattle. The annual SummerFest is in full swing and by all accounts, is better than ever. I've already done my bit to support a few of the vendors. Now I will be at the Prudential booth, across from Talarico's/Elliot Bay Brew Pub from 2-4 today and again tomorrow from 11-1 & 3-5. Stop by and say hello, even if you don't want to buy or sell a house :)

Friday, July 10, 2009

"Meet Me at the Fair!"

West Seattle SummerFest (aka street fair) is finally here! Once again, I will be spending a lot of time in the Prudential booth across from Talarico's Restaurant & Eliott Bay Brew Pub. Come by and say hi. I'll be there from Noon-2 and 6-8 today, 2-4 Saturday, 11-1 & 3-5 on Sunday. Lots of freebies to give away and tons of info about local real estate.

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Real Estate and the Single Person

Single women & men represent an increasing share of real estate investors. I specialize in working with single buyers.

As a single woman myself, I recognize the unique challenges -- as well as unique opportunities -- involved in buying a home on your own. On the one hand, you don't have to take anyone else's tastes or needs into consideration when deciding upon which home you want. On the other hand, there is probably no one else to share the responsibility of such a significant decision. You may consult many people, but ultimately the weight of the choice is on your shoulders alone.

This makes it all the more important to hire a buyer's agent you trust and on whom you can rely. Call me for a no-obligation, no-hassle consultation concerning how I can help you buy a new home with less stress than you thought possible. 206-708-9800.

I also offer free 2-hour homebuyer education workshops designed specifically for single adults. Call me for upcoming dates and locations. 206-708-9800.

Ready to get started? Click here to fill out a questionnaire telling me about your lifestyle and homebuying preferences.

Real Estate in Real Time

What have you heard about the real estate market in the news recently? Seems as if there's a new alarm bell rung every day, doesn't it? How do you know what to believe? How do you learn to read between the lines?

Following are a few general guidelines to help you interpret what you hear/read about real estate in the media.

1) Sensationalism sells: Real Estate is a topic that interests a wide segment of the population. It is a reporter’s job to focus on whichever angle will grab reader attention.

2) There is no such thing as a national real estate market: Although it can be helpful to report on national and regional trends, with rare exception, the relative health of a real estate market is affected more by LOCAL events than by national events. Markets differ significantly from city to city and even neighborhood to neighborhood.

3) Public perception changes the market: Consumer perception of the current state of the real estate market has the power to change the actual market dramatically and almost instantaneously. The extremes of consumer fear and confidence are powerful forces.

Real Estate Q & A

We all have questions we'd like to ask of an expert without actually having to talk to an expert: simple questions, complex questions and questions we are afraid might be considered "stupid."

Here's the place you can ask questions pertaining to real estate. Of course, I can't give legal advice (I wouldn't even try), and I'm not an expert in every area of real estate, but if I don't know the answer, I'll at least point you in the right direction.

E-mail me your question (alice@alicekuder.com) and let me know if it's okay to publish it here. I will normally respond within 24 hours.

The First-Time Buyer

Owning your own home is still referred to as "The American Dream," and for good reason. Few things make us feel as secure as knowing we have a safe, comfortable home to call our own. Is it a difficult goal to achieve? For the vast majority of us the answer is, "You bet!" But that only makes us appreciate it more when we make it happen.

Research tells us that almost 80% of new home buyers begin their search online before ever talking to an agent. This is a great way to start. But what do you do once you find a home you want to see "live"? Many buyers make the mistake of calling the listing agent. I say "mistake" because the listing agent represents the SELLER. More importantly, the listing agent is PAID by the seller and has a moral and ethical obligation to safeguard the seller's best interests. This makes it very difficult for the listing agent to also represent the buyer effectively, even though it is technically legal in this state to do so.

As a buyer, it is vital for you to hire -- yes, HIRE -- your own agent; someone who is concerned with only YOUR best interests. Take the time to interview at least two agents to find one whose style, philosophy and availability match your needs. Avoid choosing an agent through paid advertising. Instead, ask friends and neighbors for referrrals and/or visit Open Houses to do stealth interviews. Then ask for references and a written guarantee of satisfaction before you sign a Buyer's Agreement to protect your interests.

The First-Time Seller

You hear a lot of attention given to first-time buyers, but not so much to first-time sellers. And selling your first home is just as financially significant as buying. If you go into the process unprepared, you risk putting yourself in the hands of a less-than-stellar agent and leaving a great deal of money on the table. Interview agent candidates thoroughly; don't be afraid to ask as many questions as you need to in order to feel confident in your hiring decision.

I welcome the opportunity to work with first-time sellers, providing all the information you want and need to ensure that you have a positive experience and an exceptional outcome. (Check out the "Glossary of Real Estate Terms" below as a starting point, then visit my website www.alicekuder.pnwrealty.com for an amazing amount of free information.)

Sub-Prime Loans and Predatory Lenders

There has been a lot of talk recently about sub-prime loans, but sometimes the media forgets to define such terms, assuming everyone knows their meaning.

A “conventional” loan is one whose interest rate is determined by the prevailing prime loan rate, which is set by the Federal Reserve. The Reserve adjusts this rate periodically as a means of controlling inflation.

“Sub-prime” refers to loans with interest rates and fees which are significantly higher than conventional loans. These loans are designed to help otherwise-unqualified buyers obtain financing to buy a home. Candidates for these loans may not qualify for conventional financing for a number of reasons – perhaps they are self-employed, have a low income, a poor credit history, etc.

Sub-prime loans include “Interest Only” and “Stated Income” loans, among others. Lenders created these new mortgage products when they recognized that they were unable to sell their existing services to this significant segment of the population. Statistically, a higher percentage of sub-prime borrowers default on, or pre-pay their loans, so banks charge more to compensate themselves for the increased risk they assume.

Some lenders deal in both prime and sub-prime loans and the institutions they work for can be either independent or associated with mainstream banks and mortgage companies. A scrupulous lender will only steer a client to a sub-prime loan if they do not qualify for a prime loan. Lesser lenders may take advantage of a customer’s confusion and uncertainty to sell them a more expensive loan package. These are known as “predatory lenders”.

Predatory lenders, appraisers, mortgage brokers and home improvement contractors engage in the following types of behaviors:
Sell properties for much more than they are worth using false appraisals.
Encourage borrowers to lie about their income, expenses, or cash available for downpayments in order to get a loan.
Knowingly lend more money than a borrower can afford to repay.
Charge high interest rates to borrowers based on their race or national origin and not on their credit history.
Charge fees for unnecessary or nonexistent products and services.
Pressure borrowers to accept higher-risk loans such as balloon loans, interest only payments, and steep pre-payment penalties.
Target vulnerable borrowers to cash-out refinance offers when they know borrowers are in need of cash due to medical, unemployment or debt problems.
“Strip” homeowners’ equity from their homes by convincing them to re4finance again and again when there is no benefit to the borrower.
Use high pressure sales tactics to sell home improvements and then finance them at a high interest rate.

Other clues for identifying predatory lenders and/or investors:
A lender or investor tells you that they are your only chance of getting a loan or owning a home. Take your time to shop around and compare prices and houses.
The house you are buying costs a lot more than other homes in the neighborhood, but isn’t any bigger or better.
You are asked to sign a sales contract or loan documents that are blank or that contain information which is not true.
You are told that the Federal Housing Administration insurance protects you against property defects or loan fraud— it does not.
The cost or loan terms at closing are not what you agreed to.
You are told that refinancing can solve your credit or money problems.
You are told that you can only get a good deal on a home improvement if you finance it with a particular lender.

Every year, misinformed homebuyers become victims of predatory lending or loan fraud. Don’t let this happen to you.

Glossary of Real Estate Terms

Appraisal: A report written by a qualified expert that states an opinion on the value of a property based on its characteristics and the selling prices of similar properties or comparable properties in the area.

Closing: The final step after loan documents are signed. The funds for the loan are turned over to the homebuyer’s closing agent and document numbers are recorded with the County.

Closing Agent: Usually an escrow agent, title agency representative or an attorney, who oversees the closing and witnesses signing of the closing documents.

Closing Costs: The costs paid by the mortgage borrower (and sometimes the seller) in addition to the purchase price of the property. Examples include the lender’s fees, title fees, inspection fees, taxes and appraisal costs. Also known as settlement costs.

Conventional Loan: A mortgage loan that is not insured or guaranteed by a government agency such as FHA (Federal Housing Authority) or the VA (Veteran’s Administration). Conventional loans are not subject to the restrictions applied to government housing program loans.

Escrow: A transaction in which a third party acts as the agent for the seller and the buyer, or for the borrower and the lender, in handling legal documents and disbursement of funds.

Escrow Account: A holding account for the amount a mortgage borrower pays each month and which the lender uses to pay for the borrower’s taxes, other periodic debts against the property, homeowners insurance and if applicable, mortgage insurance.

Escrow Agent: A person with fiduciary responsibility to the buyer and the seller, or the borrower and the lender, to ensure that the terms of the purchase or loan are carried out.

Fannie Mae and Freddie Mac: Agencies that bus loans that are underwritten to their specific guidelines. These guidelines are an industry standard for residential conventional lending.

FHA Loans: Fixed or adjustable-rate loans insured by the U.S. Department of Housing and Urban Development. FHA loans are designed to make housing more affordable, particularly for first-time home buyers. FHA loans typically permit borrowers to buy a home with a lower down payment than that needed for conventional loans.

FICO Score: A numerical rating model that indicates a mortgage applicant’s creditworthiness based on a number of criteria. Scores can range from 350 to 900. According to this model, the higher the score, the less likely a borrower is to default on a loan.

Foreclosure: The legal process by which a mortgage property may be sold to pay off a mortgage loan that is in default.

Good Faith Estimate: A written estimate that tells mortgage borrowers the approximate costs they will pay at or before closing based on common practice in the locality. By law, the lender is required to provide this disclosure to the borrower within three days of receiving a loan application.

Homeowner’s Insurance (aka Hazard Insurance): A real estate insurance policy often required of the buyer to protect the property against loss caused by fire, some natural causes, vandalism, etc.

HUD-1 Settlement Statement: A standard form used to disclose costs at closing.

Lien: A legal hold or claim of a creditor on the property of another as a security for a debt.

Prepaid Expenses (aka Prepaids): Taxes, insurance and assessments paid in advance of their due dates. These make up a portion of the loan costs which must be collected at closing.

Processing: The completion of a mortgage loan application and supporting documents.

Recording: The act of entering documents concerning title to a property into the public records.

Signing: The act of signing final loan papers and other documents related to the purchase. Separate appointments are scheduled for buyers and sellers by the escrow agent. "Signing" is not synonymous with "closing" and typically takes place several days before the scheduled closing date.

Survey: A drawing, prepared by a registered surveyor, showing the legal boundaries of a property.

Title: Evidence of current right to or ownership of a property, plus a history of its ownership and transfers.

Title Insurance: A policy that insures against any losses to the property resulting from defects (errors) in the title or deed for a given piece of property.

Title Search: An examination of public records, laws and court decisions to insure that no one except the seller has valid claim to the property and to disclose past and current facts regarding ownership of the property.

Truth in Lending Act: A federal law requiring written disclosure of the terms of a mortgage (including the APR and other charges) by the lender to a borrower after application. The act also requires the right of rescission period.

Truth-in-Lending Statement: Required by federal regulations, this statement tells consumers the cost of financing their loan expressed as the annual percentage rate (APR), and it discloses all material terms of the loan including the number of payments, payment amount, etc.

Underwriting: The process of a lender reviewing the application, documentation and property prior to reaching a loan decision.

VA Loans: Fixed-rate loans guaranteed by the U.S. Department of Veterans Affairs. The loans are designed to make housing affordable for eligible veterans, reservists, active-duty personnel, and surviving spouses of veterans with 100% entitlement. Eligible veterans may be able to purchase a home with no down payment, no cash reserve, no application fee, and lower closing costs than other financing options.

Free Homebuyer Education Seminars

If you hope to be a first time homebuyer within the next year or so, you may be interested in the FREE Homebuyer Education Seminars sponsored by the Washington State Housing Finance Commission (WSHFC). David Todd, Sr. Loan Consultant, and I teach these 5-hour seminars throughout the year at various locations around West Seattle. At the workshop you will learn the steps to home ownership, including:
· How to address credit issues & develop a budget
· How to apply for downpayment assistance
· How to apply for State loan programs
· How to find the right home & agent for you
· How to purchase & maintain a home
For more information about my workshops (and/or to register), click on the icon below or contact me directly by phone 206-708-9800. For a list of seminars offered by other presenters throughout Washington State, go to the WSHFC website: http://www.wshfc.org/
Note: The sponsorship by the Commission of a homebuyer education seminar does not endorse a person, business practice, product or service other than those of the Commission.