How Can a Lender Help You?

Today I’m here with Pete Wease, our preferred lender, to discuss a few things about his job as a lender. For instance, what is the best part of his job? What makes a transaction a home run?

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Today I’m here with Pete Wease, our preferred lender, to discuss job satisfaction on the lending side of things. 

One of the best parts of Pete’s job is when a client gets to the closing table and signs the dotted line. “They’re smiling ear to ear,” Pete says. “That is the biggest sign of job satisfaction for me.” He knows that his clients are feeling a sense of pride and ownership when they close on their home. 

Unfortunately, there are situations where a transaction shows signs of trouble. When it looks like a deal might fall apart, Pete just takes a step back, reflects, and communicates with the client to find a solution. “Any time we close a transaction, that’s a home run,” Pete says. “The bottom line is, I am here to help you close on your loan.” 

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Communication and proper preparation will get you to the closing table.

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There are times when a transaction may not be able to close. Pete says, “If I can’t help you now, I will help you in the future.” Pete believes that preparation and communication are crucial to making it to the closing table. 

If you have any questions for Pete, you can give him a call at 503-267-6391 or email him at PeteW@FairwayMC.com. We have been working with Pete for four years now and it’s been a fantastic experience. We have nothing but good reviews for Pete here, so we highly recommend that you reach out to him if you are thinking of buying a home.  

If you have any other real estate questions, just give us a call or send us an email. We would be happy to help you!

How to Market Yourself as a More Desirable Buyer in Portland

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The Portland real estate market continues to be brisk and fast paced. Because of the competitive climate, it's important to make yourself stand out from the rest of the crowd. Today, you will learn creative ways to make yourself stand out as a buyer, despite the rigorous competition.

Get pre-approved! Instead of only getting pre-qualified, it's useful to get pre-approved by a reputable lender in the area. Allow a well known, reliable lender to help you through the entire process in a timely fashion. They will help you look as strong as possible on paper when it comes time to negotiate.

Have at least a 20% down payment. Even if you can't afford a 20% down payment, look for innovative ways or creative terms to make yourself stand out. For instance, suppose the seller needs a quick close in order to return to their job in another city. You then have the advantage to market your ability to close quickly. Your flexibility to accommodate the seller's needs could be a great selling point.

Have all your paperwork in order. Organization always works in your favor. Avoid any incomplete paperwork to save everyone's time. Check for any missing signatures, unanswered questions, and any other blank fields. Remind your agent to make sure everything is complete.

Forget lowball offers. Lowball offers simply don't work in the current climate. One day, they will work in the future, but not today.

Keep your contingencies reasonable. It's difficult to get a contingent offer accepted today, even on a good house. Get your home in escrow in order to move forward and enter the market. Other contingencies include shrinking your inspection period from the standard seven to ten days. Again, look for ways to make yourself look good. Remove any barriers that may get in a client's way.

 Feel free to reach out to us if you have any questions. We look forward to hearing from you.

Owning a Home in Portland Is Easier Than You Think!

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If you can't afford a large down payment, should you wait to buy? We get this question all the time, so we thought we might address it here today, and explain how private mortgage insurance might help you buy sooner than you thought you could.

It seems we run into people every day who think they need to wait to move in order to save a large down payment. They think that without a 20% down payment, they won't be able to qualify for a mortgage in today's market.That is a mistaken belief, as there are many available programs out there that require anywhere from 3.5-10%! There are even some programs that require no money down, but those are a bit harder to qualify for.

Putting 5% down is a whole lot more affordable for many people than putting 20% down, at least in the short term. For instance, if you put 5% down ($10,000) on a $200,000 home, as opposed to 20% ($40,000), your monthly payment would only be $232.75 more expensive. Many people think that saving for a 20% down payment will save them money, but is that really true?

Core Logic recently published a report that tells us to expect a residential appreciation rate of about 4.3% and I think here in Portland that number is going to be even higher (it's currently in the 7% range!). If you were to purchase private mortgage insurance, the difference in payments over the next 12 months would be $2,793, whereas the expected appreciation over the next 12 months is $8,600. When you take those numbers together, it shows that you are missing out on $5,807 a month by not owning.

If you would like to sit down and talk about your options, please don't hesitate to reach out to us. We would love to help in any way we can!

How to Stand Out as a Home Buyer in Portland with One Simple Document

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Today we'll be discussing an important distinction among home buyers in Portland. I'm talking about a pre-approval versus a pre-qualification. It's an important difference that you may not know about, but home sellers will surely be scrutinizing you about it.

A pre-qualification and a pre-approval are two entirely different documents. A pre-qualification is a much more basic certification, and it can be obtained in a few hours. You only need a few pieces of information, none of which is really double-checked, and you can then get your pre-qualification letter once a lender has looked over your numbers. This is a very informal meeting between you and the lender, and it doesn't mean a whole lot in the eyes of the seller.

A pre-approval letter is much more desirable, and I highly recommend it to all of my home buyers. This is more time-consuming, but it will designate you as a serious buyer if you can acquire it. You will submit tax returns, pay stubs, insurance information, and more. Once the lender has an opportunity to review these items, you will then be issued an approval letter.

Both buyers and sellers like to see letters of pre-approval, and this is especially true when the real estate market is as hot as it is in Portland.

If you would like to be put in contact with a great local lender, please don't hesitate to contact me!

Avoid These Six Buyer Mistakes for a Smooth Transaction

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As we head into the buying and selling season, I thought I'd give my home buyers some tips for when they set out on the market. Now is a great time to buy a home, but it's important to make sure you're avoiding these mistakes.

1. Borrowing the maximum amount: You need to set a realistic budget because there are a lot of hidden fees when you purchase a home. You need to be able to afford the costs of maintenance, insurance, HOA fees, and a fund for when something absolutely catastrophic happens. Hopefully, you will never need this, but you never know. You want to be able to comfortably afford a home, not live paycheck to paycheck.
2. Not Planning Ahead: You need to take into consideration what your home will be worth when you go to sell it in a few years. Are you next to a busy street? Do you need new carpet or a new roof? You want to sell your home for more than you bought it for, and that will take some planning.
3. Get Pre-approved for a loan: You need to get approved for a loan even before you go out and start looking for a home. Sellers probably won't even consider you as a buyer if you can't prove that you can buy the home. Getting approved will also allow you to figure out what you can afford to buy, so you won't be wasting time looking at homes that you cannot afford.
4. Indecision: Our market is moving very quickly, so you need to be able to make decisions quickly if you find a home that you really like. Don't let someone else buy your dream home!
5. Checking only online sources for mortgage programs: We believe that it's best to have a face-to-face relationship with your lender. This ensures proper communication between you and your lender, and that is really important during the closing period.
6. Debt to income ratio: You really need to pay attention to this. Don't think about going out and buying a new car or new furniture that could ruin your debt to income ratio and disqualify you for a loan. I've seen people spoil their ability to close by doing this, so please budget wisely during your closing period.

We would love to talk to you further about these items. If you have any questions about this, please don't hesitate to contact us. 

As always, consider us your #1 resource for real estate in Portland!

Why Now Is the Time to Buy

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Buying a Portland home? Search all homes for sale

  

Affordability is at an all-time high right now. Interest rates are low (below 4%), and loan products from Fannie Mae and Freddie Mac are allowing consumers to buy with only 3% down. Even rates for private mortgage insurance have dropped, and this can save you thousands of dollars over the life of your loan. It's difficult for me to imagine a better time to purchase, and on top of these financial incentives, I have five more reasons why owning a home is beneficial to you.

1. Home ownership leverages your money: If you purchase a home, it's likely going to appreciate in price, so you own an investment that you should make a profit on. Other than regular maintenance, there is not a whole lot you have to do to profit off of this investment. 
2. You're paying anyway: You have to pay for housing either way, so why help to pay off someone else's mortgage when you rent a home? When you own a home, your monthly payments go towards an investment that you can gain equity in.
3. It's a forced savings account: You're making a monthly payment, a portion of which goes toward your principal balance, and in 15 or 30 years, you will have the savings of your home's value. 
4. Tax incentives: Property taxes are deductible, and mortgage interest is tax-deductible. There are many tax cuts that you receive when you own a home as opposed to when you pay rent on a property. 
5. A home protects against inflation: When inflation occurs, your home gains value, so your equity increases and your wealth does too.

If you're renting right now, I highly suggest you start considering a home purchase. Homes are wonderful investments for the future, and there are actually a lot more benefits to home ownership than I could discuss in the time frame of this video.

If you need any help with buying or selling real estate in the Portland area, please feel free to contact me. I'm always happy to help!