5 COMMON MISTAKES THAT BUYERS MAKE WHEN APPLYING FOR A HOME LOAN

Once you have decided you are in the market for a home it does not take long before you start looking for the perfect property. You sit down set your criteria in a searchbar and start dreaming about what your new castle will look like. Stop, you just made mistake #1

1. KNOW HOW MUCH YOU CAN AFFORD BEFORE YOU START LOOKING.

Looking at dream homes on Pinterest is fine and is great for inspiration, but when looking for a serious home the first thing you need to know is how much you are approved for. Visiting a lender is not nearly as exciting as looking for homes online (Don’t you click this link until you are approved), but it is the first step in a process that if not executed correctly may make buying a home unobtainable. Buying a home is easily one of the biggest decisions you will ever make, so before going on the open house circuit you need to get into a lenders office and find out what type of budget you are working with. Don't commit yourself to 30 years of payments without doing your homework, which leads us to mistake #2

2. NOT BEING PREPARED.

When you sit down with a lender and they pull your credit score it should not feel like a surprise. Lenders are great at telling you the things you can do to improve your credit score, but changes to your credit score take time and adjustments in behavior. Having a good credit score can improve your interest rate and save you big dollars over the life of that loan. Sometimes a few simple actions can improve your credit dramatically. More then 79% of all Americans credit scores contain errors. According to the Federal Reserve 25% of credit reports contain errors that are deal breakers for lenders. Before you step into a lenders office get your credit score, if your score is not ideal consult a credit-reporting agency. Once a year you are entitled to a free credit report, utilize this resource and be informed.

3. NOT BEING HONEST.

Not so long ago there was a process of receiving loans based on income that you did not have to provide supporting evidence for. These non-document loans are now referred to as “liar loans” and many people ended up with loans that they could not afford. The days of being self-employed and not having to show your tax returns are long gone. Obtaining credit is nowhere as easy as it was, and for good reason. Don’t let your ego get in the way. You may be tempted to stretch the truth on your application to get a larger loan, but doing so will put you in jeopardy of getting your loan denied.

4. CHANGING YOUR JOB.

Employment history is key to getting approved for a loan. Most lenders will want to see 2 consecutive years of work history with the same employer. By switching jobs before or during the approval process you run risk of getting your application denied. In the best case scenario switching your job will delay the process while employment is confirmed. Do yourself a favor and wait to switch jobs until you have made your first house payment.

5. DECORATING THE HOUSE BEFORE YOU OWN IT.

Buying a house is exciting and shopping for your new house may be even more fun! Don’t even think about it. Just before closing escrow, lenders may do something called a “soft pull” of your credit. If your debt to income ratio has changed you may not qualify for your mortgage any longer. Imagine how bad it feels to purchase all of the things you want to put in your home only to find out that you no longer can afford it in the eyes of the lender. Keep you credit cards tucked away until after escrow closes and the deal is done.

The process sounds intimidating, but using the right lender in combination with the great Realtor can take most of the bumps out of the road. Just be prepared, informed and don’t make any major life changes between the application process and your closing and you will be fine.

Want to do a little searching on your own after getting approved for a loan? Let us help, use our custom search bar for information about Real Estate in the local Spokane Area, simply type in any criteria you desire and get immediate relevant results.

Investing In Real Estate In Spokane Washington 5 mistakes to avoid.

Lately we have been getting a-lot of questions about Investing in Real Estate. We believe it is partially due to the large number of short sales closing but also because Spokane is experiencing a sellers market. Right now prices are low enough that anyone with a reasonable credit score and a full time job can purchase an investment property. However there are several mistakes that first time investors make that can be easily avoided. Here are 5 mistakes first time real-estate investor makes. 

1. Being Underfunded. The math seems simple, I will buy a property for X my mortgage payment will be XYZ, I’ll increase it by 20% and Ill be paying my mortgage and making a little money on the side. If properly executed this can be true, but there are several costs to take into consideration when setting up an investment property. Factors such as closing costs, insurance, maintenance, and property taxes can eat away at profits very quickly. Make sure to talk to a professional and work to set up a budget that covers contingencies including setting up a emergency budget for unexpected costs.

2. Underestimating The Time Commitment. Being a landlord can be very time consuming. If you do not set up a clear system for working with your tenants you may find yourself living on your phone. Credit checks, rental contracts and maintenance can chip away at valuable time and resources. Consider enlisting the help of a property management company. Property management companies can provide day-to-day managers, contracts, background checks and trusted service providers to make sure that you investment is taken care of while you are looking for your next investment.

3. Knowing The Neighborhood. It can be tempting to buy a home in a not so favorable neighborhood because the price is right, just remember that someone actually has to want to live in your house for you to make money. Factors such as proximity to transportation, employment, great schools and public parks can improve the quality of the type of tenant that rents your property. It is important to look at the marketability of your property, does your property have curb appeal, what sets aside from the hundreds of other rental properties In Spokane? If your costs are fixed (which they should be if you have a proper budget) then you need to differentiate it by amenities and curb appeal and not price.

4. Miscalculating Improvement Costs. Once you have received professional estimates double their estimate both in time and cost. Unforeseen expenses always make their way into the best-planned projects. Being prepared is one of your best assets when starting your first project. After doubling your costs if you can still make money on the investment property then it is likely a good investment.

5. Not Using A Professional. Professional Realtors can save you time and money when looking for investment properties. Local Realtors not only know specific neighborhoods but they deal with other investors, vendors, and lenders on a daily basis. The professionals at Synergy Properties know the Spokane local Real-Estate market and have become experts at serving the Spokane community. Give us your your criteria and we will find a home for you. For more information contact us at (509) 624-4400 or visit us on the web. 

Want to do a little searching on your own first? Let us help, use our custom search bar for information about Real Estate in the local Spokane Area, simply type in any criteria you desire and get immediate relevant results.

Renting Vs. Buying In Spokane Washington

Is now the right time for you to buy a home, or should you continue to rent? There are many factors to weigh in on for the first time home buyer and several arguments for both sides.

Let’s get the disclaimer out of the way first. We are just scratching the surface to give you an idea of the different Pro’s and Con’s associated with buying and renting. To make an informed decision you should consult your realtor who will look at your unique situation and help you make an educated decision. We welcome your feedback and would love to hear from you if you have any additional questions. Just email us with your question and we will be happy to get you the information you need to make an informed decision. 

Buying a home is a big responsibility, financially and emotionally, however most people want to own a home. There are a number of considerations you must make when making this decision. Renting and buying both present a number of pros and cons without further delay, here are the Pros and cons associated with renting and buying. 

Pros and Cons of Renting in Spokane 

Advantages

• Lower Up Front Costs. As a renter you will be required to pay a first and last month’s rent and if you have a pet most likely you will have to pay a security deposit. As a new homeowner depending on your credit score you will have a down payment. The difference could be significant 
• No Maintenance. If the screen door comes off the tracks, or the drain gets clogged and you need a plumber, getting things fixed is as easy as a phone call if you have a good landlord. This is true with home ownership also; the major difference is that when renting the charge has already been built into your rent. 
• Mobility and Flexibility. If have not decided where you want to live this is a great way to test-drive the neighborhood you like. In addition if you have not settled in your career or may be thinking about relocating in the near future, it is far easier to have someone take over your lease then it is to sell or rent your home. 
• Time to Establish Credit. If you have marginal credit or bad credit it can significantly impact how much you are paying on your mortgage and the amount you will have provide for a down payment. Renting gives you some time to establish better credit through one-time rental payments and allows you to address other issues to get you credit where it needs to be. 

Disadvantages

• You Are Not Building Equity. When you rent, you are paying someone for the right to live in his or her property, the property will never become yours. When you move you start over and do not have an asset to sell. 
• There Are Not Any Tax Benefits. Unlike owning your home the renter in Washington State does not receive any tax benefits. When you paying for rent you are paying for maintenance and property taxes through but you are not entitled to claim any deductions on your taxes. 
• You Are At Your Owners Mercy. Property owners can raise rent, making costs higher with little notice, this is especially true as housing prices rise and demand for apartments increase. If you would like to put some personal touches on your property you are going to need to make a call, changing you apartment in any way without permission can lead to some hefty fines. Depending on your agreement with your landlord this could include everything from painting your white walls to hanging pictures. In addition in Spokane renters are subject to restrictions on the property with very little notice including pets, children and even noise. 

Pros And Cons Of Buying A Home In Spokane Washington

Disadvantages

• You Break It You Bought It. Depending on the home you may have to spend time and money keeping your home in good repair. As a homeowner no one is including maintenance into your rent so you will have to set aside funds for the unexpected leak, light bulb or furnace filter. 
• With Property Comes Taxes. Although you get to deduct property taxes on your income taxes you still have to pay them. Although predictable to an extent property taxes can go up adding to your monthly payment. 
• Rising Home Values Are Not Guaranteed. Your homes value is subject to the market, and several other factors. Historically buying a home with a responsible loan has been a safe investment but as with everything in life there are no guarantees. 

Advantages

• You Can Build Equity. The biggest advantages of buying a home are financial. Homes historically rise in value anywhere from 4% to 6% per year. Even if your home doesn’t increase in value you are still building equity as you pay down your mortgage. As long as your home maintains its value you investing in a valuable asset. 
• Home Owners Receive Tax Break. By deducting your mortgage interest payments and property taxes homeowners receive several deductions in Washington State that will reduce the cost of owning your home over the long term. 
• Your Payments Stay Stable. By getting a fixed rate mortgage, your principal and interest payments stay the same for the duration of your loan, no one can increase your payment. The only fluctuation you may see is in your homeowners insurance or property taxes. 
• Your Home Can Be Used As An Investment. Life has a funny way of changing and making plans for you, if you decide to leave you can rent out your home instead of selling and generate income. Using a management company and covering your rental costs and their fee allows you to continue to build equity and live somewhere else. 
• By Owning You Are Buying Freedom. Freedom to decorate, own pets and customize your living space to suite your needs and lifestyle, this is the real joy of owning your own property, you get to make your home a reflection of you. 

There are also hundreds of other factors that can make all the difference between renting or buying a home in the Spokane area. Do you need storage space, are you good at fixing things, do you have pets, what school district do you want your children to go to? The list is considerable, the key is to call a professional to help you make the right decision  

The team at Synergy Properties will give you an honest estimate and evaluate whether it is the right time to buy, we can also let you know what actions you can take to really make a difference in your credit if it needs improvement. Having sold thousands of properties we can assist you in finding the best fit for you. 

The professionals at Synergy Properties know the Spokane local Real-Estate market and have become experts at serving the Spokane community. Give us your your criteria and we will find a home for you. For more information contact us at (509) 624-4400 or visit us on the web 

Want to do a little searching on your own first? Let us help, use our custom search bar for information about Real Estate in the local Spokane Area, simply type in any criteria you desire and get immediate relevant results.

Is your home welcoming to buyers?

Many homeowners in the Spokane use their garage as the front door to their home. They come home, park the car head into the laundry room.  Paying attention to what the entry to your home looks like in-between trick or treaters on Halloween is important. This is the place a potential buyer will get their first impression of your home, and the last impression they have when they leave. 

How many times have you gone to watch the game or hang out with friends and when you arrive you are not sure where to enter? Chances are if you have not been using your front door this may the first impression a buyer may have when they visit your home. The transition from the outside to the inside of your house is important but more importantly it is the last thing they will see and most likely remember when reviewing the properties they have looked at. This can be crucial when trying to attract first time home buyers. If you have not spent much time thinking about this your not alone. Here are a couple of tips to making your entryway more appealing. 

Edge your driveway and walkway

Clean lines are pleasing to the eye and define boundaries. Edge your driveway and walkways with a edger or add pavers and decorative landscaping blocks. Installation takes a little manual labor but the end result is worth the trouble. Use a string line for a guide and remove the sod or other material equal to the width of your blocks. Measure your blocks and dig down an additional two inches. Back fill the additional two inches of depth with sand for a stable base and lay in your blocks. Spread sand and cover the blocks to fill in the joints, then brush away the excess. 

Lights action sale

Provide adequate light along the path to the front door. Solar powered low voltage landscaping lights can make a huge impact on curb appeal. They also create a nice pathway to the front door. If buyers are looking at your home after work in the evening not only does this create a nice lit runway for them but it gives your yard a nice glow. Accent up-lighting can also be placed at the bottoms of trees and in flower beds to keep the yard lit and safe. Place lighting anywhere you want to draw attention. You don't need to be an electrician to make these improvements, several simple solutions are available at most hardware stores or garden centers, and if you go solar you just stick the lights in the ground and walk away.

Make a bullseye out of the front door.

Buyers should never have to search for the right place to knock to take a look at the inside of your home. Make the entry to your castle worthy of a sale. Clean the walkway to the door, making sure that it is visible from the street. Get out the paintbrush and give your front door some color, polish the hardware and make sure that porch light is on. Create a little symmetry to draw potential buyers attention. Adding symmetry is easy (it doesn't take a-lot of skill to match the left side of your door to the right or vise versa) and it is aesthetically pleasing to the eye. Match light fixtures and add some plant boxes with flowers or shrubs and x marks the spot, you have a entry. 

Get a healthy case of the Joneses 

Take the dog for a walk or go for a jog in your neighborhood, are there any houses that stand out? Take out your phone and take a couple of pics. Use your neighbors houses as inspiration to get your creative juices flowing. Remember to differentiate your home from theirs nothing is worse when buying a home then driving down a street of identical houses. 

By making your entry to your home more welcoming you are improving the value of your home and making it more attractive to potential buyers. The team at synergy properties will give you an honest estimate, and let you know what actions you can take to really make a difference. Your Synergy Properties Realtor can also save you time and money by keeping you from taking on expensive projects that are not necessary to add value to your home. Having sold thousands of properties we can tell you what works and what does not. 

If you are looking to buy or sell a home The professionals at Synergy Properties know the Spokane local Real-Estate market and have become experts at serving the Spokane community. Give us your your criteria and we will find a home for you. For more information contact us at (509) 624-4400 or visit us on the web here 

Want to do a little searching on your own first? Let us help, use our custom search bar for information about Real Estate in the local Spokane Area, simply type in any criteria you desire and get immediate relevant results.

Spend change and change your homes value

Spending some change can add up to big dollars.

There are several simple, cost effective improvements you can make that will have huge returns when selling your home.  If you are waiting for the transition to a sellers market you may be leaving money on the table. Making your property more attractive will put you ahead of other sellers and make sure you get theselling price you want.  Here is a list of things you can do that do not cost much to increase the value of your home.

Add some curb appeal.

Curb appeal is a term used to describe the general first impression and attractiveness of a property from the street.  First impressions are hard to change, what better place to make an impact then with the first thing a potential buyer sees when they drive up?  Get out the lawn mower, mow, rake and clean up the front yard, and edge the curbs and the driveway.  If you have flowerbeds go and grab a bag of topsoil or peat and put a layer over the beds. While you’re at the nursery pick up bright blooming flowers and plant them with even spacing.

If buyers are not knocking paint the door.

The front door is the focal point of your house, and it is the first thing that buyer touches when they enter your home. If the door is older and is looking a bit dingy consider getting a new one, if you cannot afford a new door don’t get frustrated there are still ways to make that baby shine.  Give your door a little color and make it stand out by painting it with a color that compliments the exterior paint but stands out.  Polish the hardware, take a second and clean the doorknob and any other metal accents that may be on the door with a little metal polish. Grab a can of WD-40 and hit the hinges, so that it doesn’t sound like a haunted house when you buyers walk in If it’s the holidays add a wreath and a red ribbon.

Put your grade school skills to the test.

Remember painting as a kid? Remember how fun it was? Well this is not going to be that fun, but it will make you some money. When you consider the impact that paint makes, rolling for a couple of Saturdays is small price to pay for making your house look new.  If you are an amateur painter there are several books out there on painting and picking colors that can guide you along the way. This is one of the single most impactful actions a homeowner, (or homeowners kids) can take to improve the value of their home.

Don’t just limit yourself to the house, hit the mailbox and the fence while brushes are wet.

Call a professional.

Since you are going to have a realtor looking at the house anyway ask their opinion.  The team at synergy properties will give you an honest estimate, and let you know what actions you can take to really make a difference. Your Synergy PropertiesRealtor can also save you time and money by keeping you from taking on expensive projects that are not necessary to add value to your home. Having sold thousands of properties we can tell you what works and what does not. 

If you are looking to buy or sell a home The professionals at Synergy Properties know the Spokane local Real-Estate market and have become experts at serving the Spokane community. Give us your your criteria and we will find a home for you. For more information contact us at (509) 624-4400 or visit us on the web 

Want to do a little searching on your own first? Let us help, use our custom search bar for information about Real Estate in the local Spokane Area, simply type in any criteria you desire and get immediate relevant results.