I wrote this blog many years ago. While there has been some improvement in simplifying the information that consumers get to better understand the process, there continues to be confusion about how lenders make their decisions. I felt it would be useful to repost it.
Lenders take two critical factors into account when considering an application for a mortgage loan. They evaluate the borrower and the property. When evaluating a borrower, lenders want to know about their:
Ability to repay
Track record of repayment of their other financial obligations.
KIRKLAND, Washington (December 4, 2015) – Inventory remains “critically low,” but there are fewer house-hunters in the hunt during this holiday season so motivated sellers and buyers are seeing success, according to brokers with Northwest Multiple Listing Service. Its just-released statistics for November show year-over-year gains in pending sales, closed sales, and prices, but a steep decline in inventory.
“The housing market continues to be red-hot on a seasonal basis, but this winter will be even more intense given the dangerously low inventory,” remarked J. Lennox Scott, chairman, and CEO of John L. Scott Real Estate. Read more
As a mortgage broker, you are guaranteed to enter into the ping-pong interest rate game. Are you prepared so you reduce your risk of losing the sale, without losing your commission at the same time? Let’s make sure by looking at the all-too-familiar scenario.
A mortgage broker quotes a potential borrower the best rate available at that time. The broker has answered all of the questions and concerns of his or her clients and disclosed all the relevant points. The broker explained the weaknesses in the borrower’s loan application and guided and helped the borrower(s) to resolve those issues.
This blog post was originally converted from an article that I wrote during the time when I owned a mortgage bank. Your ability to borrow money is the single most important factor whether you plan to buy a home on the Eastside or anywhere else in WA. These requirements have not changed significantly, thus I am reposting it. I recently wrote a book to help homebuyers streamline the entire process. It contains a chapter on this very topic. Check it out.
Real Estate and Mortgage Professionals Have A Symbiotic Relationship
Smooth, on-time, and hassle-free closings are critical to growing a business as a realtor. In fact to your very survival in the industry! If you are a good real estate broker, you work very hard to get a planned transaction to the contract stage. Once your client has entered into a purchase and sale agreement, you must rely on other service partners. This reality is an essential consideration in the entire sales process. The mortgage professional you choose to work with is the most important service provider. Read more
Millennials’ attitude towards housing and their path to homeownership has been a hot topic for some time. Several theories have been floating around as to what is their attitude towards homeownership, what is the rationale behind their thinking that way, and how is it going to impact the housing market, and subsequently, the economy. Read more
Prices increase by 2.5% ($12,500 on a $500,000 home!)
KIRKLAND, Washington (Oct. 6, 2014) – Pending sales of homes around Western Washington surged more than 13 percent in September compared to a year ago, and listing activity picked up slightly, fueling both broker optimism and words of advice for sellers.
Along with increases in the number of mutually accepted offers, the latest report from Northwest Multiple Listing Service shows year-over-year gains in the number of closed sales (up 4.6 percent) and prices (up 2.5 percent). Inventory for its service area, which encompasses 21 counties in Western and Central Washington, declined slightly (just under 1.2 percent).
We have had several gorgeous, sizzling hot days recently, here in Seattle. It reminded me of the summer of 1995 when I moved here from Denver, Colorado. I have lived in Denver for a couple of years. I loved three things about my time there. I got remarried there, I skied almost every day and I played Squash with the legendary Hashim Khan, seen here with his son and nephew, and yours truly, three to four times each week.
In late 1994 I started to consider moving from Denver. I have been fortunate enough to travel extensively and am very familiar with several beautiful cities in the world. I narrowed down the list to Kuala Lumpur, San Francisco, and Seattle. In December 1994 I visited Seattle, intending to find a place to live and then move from Denver.
We arrived here in the midst of a nasty rainstorm. I remember being thrashed around by the high winds while on the 520 Bridge, heading to Kirkland for dinner at a friend’s home. We stayed here for a few days and left very disheartened having decided against moving to a place that had such foul weather.
The following spring, I started my search again. I went to San Francisco and Boston amongst other cities. I liked those wonderful cities, however, none of them ‘called to me’. Then in July, I stopped here for a few days while on my way to Vancouver, BC to attend a business meeting. We hit a July heatwave that was almost exactly like the one we have just had. I got a taste of how amazingly beautiful the Greater Seattle Area can be on a nice, hot summer day. The lake, the Eastside, the Sound, various beaches, Pike Market – there are so many amazing aspects to the gorgeous Pacific North West.
Instead of staying for three days in Vancouver, BC I turned it into a day trip and returned to Seattle the same day. For those who might be saying, Vancouver is a beautiful city as well, yes, of course, it is. You see, I lived there before moving to Denver. I wanted to be as close to it as possible while still living in the US.
We stayed in Seattle for several days after that. We drove around all over Puget Sound. We looked at homes in Seattle, Kirkland, Bothell, Redmond, Sammamish, and Bellevue. Each day was more beautiful than the previous one. I finally understood the diversity in the beauty of this place. I bought a house in Bellevue before returning to Denver. I arrived back here with all my belongings on a truck in September of 1995 and have called it ‘home’ ever since.
I have been fortunate enough to have traveled through most of the world. I have also been privileged to live in some of the most beautiful places in the world. Sometimes great opportunities are just thrust upon you. All you have to do is accept the gifts and be thankful.
After I moved to Bellevue in 1995, I came across a very interesting employment opportunity. I had a shot at the top job in US Chess Federation. As an avid chess player since the age of eight, I was eager to combine my lifelong passion with an opportunity to run a unique business. The challenge was that their offices were located in Newburgh New York. I went out there a couple of times and was still undecided. As I was contemplating all the pros and cons of this opportunity, an old business associate called to ask if I would be willing to take on a four to six weeks project in Kauai, Hawaii. This was a short-term gig as opposed to a solid, long-term, rather prestigious position. In the end, Kauai, HI won easily over Newburgh, NY., and I found myself in Paradise. Read more
Three notable factors for the Real Estate Greater Seattle market
I have been fortunate enough to have traveled through most of the world. I have also been privileged to live in some of the most beautiful places in the world. Sometimes great opportunities are just thrust upon you. All you have to do is accept the gifts and be thankful.