No worries. Start your research now. You don’t know what you don’t know. 💡
Don’t start by looking at houses or condos. Instead start by connecting with a lender. A lender will let you know what you need to do to qualify for a mortgage. It’s not necessarily that you need to make more money. Perhaps you need to eliminate some debt (not necessarily all of it either!), or improve your credit score (are your credit reports accurate?). A lender can look into that for you to give you advice that is personalized to you. There are also many first-time homebuyer programs available to assist with down payments.
I also have lots of personally written valuable information for homebuyers and home sellers on my website. My article on improving your credit score was from my personal experience. In fact, I recently went to a class on this topic from a big-name banker and I could have taught the class myself!
Contact me directly if you have any questions!
DAISY CASILLAS (206) 866-8090 ListingsFor1.com savvy lane
Interested in house flipping? I get asked about that a lot. Here are the basics of what and who you’ll need:
1) Hard Money Lender. Unlike the late-night infomercials promising you riches, you will need money to acquire properties. No, not the entire amount of the list price on a property, but you’ll still need a down payment and that’s 20% for a conventional lender. Their interest rates are low, but they have more stringent requirements to qualify. Hard money lenders lend at higher rates, but they’re private individuals or a group of individuals without the governmental requirements needed to lend you money fast. They’ll lend you the money for the purchase of the property AND repairs, but you must also put some form of down payment as well, so you have “skin in the game” and they’re not left having to do the work if you skip out.
2) Construction Crew. To be a house flipper in WA state, you need a general contractor’s license if you’ll be hiring subcontractors OR hire a GC to hire subcontractors. This area of the U.S. does NOT have the great number of blue collar trades that other states do such as Southern CA or AZ. Our contractors have an abundance of work and can take their pick of jobs, so expect to pay good money for labor.
3) Wholesalers. You know those little signs you see on the side of the road, on poles, etc. that read “We buy ugly houses,” or “We buy houses, any condition”? They don’t actually buy houses. Haha! They put your house under contract then sell the contract to a house flipper. They make money and the house flipper gets a house at well below market value. That’s how they can flip the house and make a profit – because it was done off market (that is, NOT on the MLS). And that’s also why putting your home on the open market (that is, the MLS) is the best way YOU can make the most money from selling your house. When it’s on the MLS, your property gets exposed to the greatest number of potential buyers, including investors. As supply is perpetually low in the Pacific Northwest, investors DO look on the MLS for fixers. Don’t expect to get paid the same as a house in good condition, of course, but certainly better than a wholesaler will offer you. Back to being a house flipper. You want to know a few wholesalers who can bring you good deals to buy.
4) Join a local REIA – Real Estate Investors Association. Every major city has at least one. This is a great place to learn about real estate investing from people who are actually doing it. It’s also a great place to connect with wholesalers and hard money lenders. Contractors don’t attend much for the aforementioned reasons; they just don’t need a local REIA to get business.
DAISY CASILLAS, 1% Real Estate Broker (206) 866-8090 call or text ListingsFor1.com 1% listings. Just 1.5% total if I represent your buyer too.
Many potential home buyers give up before they’ve even gotten started because they think they don’t have enough for a down payment. Oftentimes it’s because they’ve bought into the myth that you can’t buy a home with less than a 20% down payment. Many people think you must use an FHA loan for a low down payment too. NOT true! In fact, with a conventional loan, you can go as low as 3%! That’s lower than FHA’s 3.5% minimum. Plus, VA loans and USDA loans are as low as ZERO percent! Woohoo! Check out these myth-busters in this infographic (click the link to make it larger; may need to click it twice), and CALL, EMAIL, or TEXT me about purchasing a home now.
DAISY CASILLAS 1% Real Estate Broker (206) 866-8090 call or text ListingsFor1.com 1% listings. Just 1.5% total if I represent your buyer too.
Number 1 – There are 7 factors that determine your rate. According to the Consumer Financial Protection Bureau, your credit score, home location, home price, loan amount, down payment, rate type, and loan term and type can all affect your rate.
Number 2 – Your interest rate and annual percentage rate (APR) are different. Both are expressed as a percentage, but your interest rate is the cost you pay each year to borrow money. An APR is a broader measure that includes your interest rate, points (if applicable), and other charges you may pay to get a loan. It’s what allows you to compare one lender’s offer to another.
Why are real estate brokers harping on buying a house now due to low interest rates?? Here’s a visual! Your buying power increases as interest rates drop. There’s a huge difference between a $500,000 home and a $700,000 home. Alternatively, if your goal is to keep your monthly payment low but buy the more modest house, now is the time to do it because interest rates will keep your payments lower. Click here to go to the home buying section of my website.