Real Estate Information Archive

     PRESS RELEASE FROM WASHINGTON REALTORS

            OLYMPIA, Wash. – The state Legislature has approved a strategy to help first-time home buyers come up with a down payment on a new home. The Legislature authorized a public/private partnership to provide for a “Tax Credit Advance Loan Program” in an amendment to the state’s general operating budget, which now awaits the governor’s signature. The Tax Credit Advance Loan Program, the first of its kind in the nation, is the result of a partnership of the Washington Realtors, Washington State Treasurer’s office, and Washington State Housing Finance Commission.

The approved budget brings the program one step closer for first-time home buyers, who would be able to use the recently approved federal tax credit at the close of a home sale for a down payment or closing costs.

 "If this down payment program can be put in place, it will remove one of the biggest roadblocks to home ownership for first-time home buyers," said Greg Wright (Chelan), Washington REALTORS® President. "Down payment loans would open the door of home ownership to thousands of hardworking families that have had their part of the American Dream delayed. Combined with lower home prices, some of the lowest interest rates in history and the wider variety of homes available, this is a win for families in Washington and a key to our economic recovery.”

 The program authorizes the state treasurer to deposit $25 million in a financial institution, which would then open a line of credit for the Washington State Housing Finance Commission (HFC).  The HFC would use that credit line to pay for down payment loans to first-time buyers. Buyers repay the advance loan after filing for and receiving the tax credit.  Washington Realtors are partners in the program and will provide up to $400,000 for deposit in the program account. The HFC would draw from those funds in the unlikely event of default by the borrower. Borrower eligibility, loan underwriting standards and other outstanding issues will be finalized when the budget is approved by the governor.

By putting the tax credit into the hands of first-time home buyers when they need it most, the program also would jump-start the state economy.  According to a recent Washington Research Council study, every 1,000 home sales to first-time buyers generate 711 jobs and pumps $112.4 million into the economy.  Every first-time home sale generates $11,100 in state and local tax revenue.  

After the buyers return their federal refund the HFC can turn funds around and provide assistance to other buyers. The Tax Credit Advance Loan Program would leverage the state investment by revolving the funds as many as three times before the tax credit expires, reaching up to 9000 first-time homebuyers. The availability of these loans would expire at the same time as the federal tax credit, on November 30, 2009. 

      “The $8,000 tax credit opens a window of opportunity that may never be seen again," said Wright. "The state’s budget and this new partnership could help bring the opportunity for home ownership to families throughout our state who have been waiting to buy. For half of first-time home buyers, a down payment is all they need.”      

Many of you think that when we find your dream property, write an offer and get it accepted, our job is done. Far from that point.....our job is just beginning.

In addition to helping you find your dream home through the listings we have sent you, making appointments to show you these listings, we are always working FOR you.

When we first met we gave you a copy of the "Laws of Real Estate Agency" that describes your legal rights in dealing with a real estate broker or salesperson in Washington State.  It describes the duties of a licensee, a seller's agent, a buyer's agent, a dual agent, compensation, vicarious liability, imputed knowledge and notice and interpretation. You also received my buyer book that contains information on your purchase process and an introduction to my team of professionals; my transaction coordinator, my lender, my title company representative, my escrow officer, and my inspectors.

As a buyer's agent we are to: Be loyal to the buyer  by taking no action that is adverse or detrimental or the buyer's interest in a transaction; to timely disclose to the buyer any conflicts of interest, to advise you to seek expert advice on matters relating to the transaction that are beyond our expertise, not to disclose confidential information from or about the buyer, except under subpoena or court order, even after termination of the agency relationship and make a good faith and continuous effort to find a property for you, the buyer, except that a buyer's agent is not obligated to: seek additional properties to purchase while the buyer is a party to an existing contract to purchase, or show properties as to which there is no written agreement to pay compensation to the buyer's agent.

We then begin the process of negotiating the contract in your best interest. Once we reach mutual acceptance, we send the contract to our assistant who will set you up on an internet web-based program so that we can communicate through emails what is happening on your transaction. You have 24/7 access to this file. We contact the selling agent, lender, title company, escrow company and they all become a party to this transaction.

We set up your inspection by coordinating that with your inspector and the seller. We negotiate after the inspection is completed and make sure all parties are aware of what's happening.

We follow up regularly with the lender to make sure they are on track with ordering the appraisal, getting paperwork to the underwriter and getting final loan approval.

We provide you with utility information and advise you when to contact the companies to get local utilities in your name.

We then make sure that the lender gets their paperwork to the escrow officer in a timely manner so that they can schedule your signing appointment. Remember, we talked about this, this is where you sign closing papers, deposit your funds to close. The paperwork is then sent back to the lender for a 24 hour review. Once the lender releases the package for recording, we follow up with the escrow office to make sure they are going to the court house to record your documents. Once that happens and we receive recording numbers, the escrow officer releases the fund and you CLOSE. You then are awarded keys according to the terms of the purchase and sale agreement.

We meet with you and hand over keys. You have your beautiful home, finally. We then follow up with post closing instructions to make sure there are no details left to discuss.

Phew, you say, you didn't realize we did all that. Yes, we do, and with zest, as you see provide you with the American Dream - home ownership and if we can do that successfully, our job is well done.

Congratulations, on your purchase. You'll be receiving a welcome home gift from my team. We wish you many years of happiness. "Oh, by the way, if you know of a friend or family member that could use our services, we'd be happy to speak to them and offer them the same level of service we gave you." Good Luck in your new home!

For Buyer Agency in Washington State contact:Karen Villa Schweinfurth, ABR, CRS, SRES, ePRO, ACRE

Your Snohomish County Expert

karen@karensvillas.com       425-308-3669

JP Morgan Chase is expanding it's home lending business in Washington State and will more than quadruple it's market share by the end of the year.  Chase has seven branches  and plans to open up four more offices this year. 

As reported in the Puget Sound Business Journal "The financial's giant's plans are reflective of the state's rosy reputation among mortgage bankers, and also could indicate a resurgence of the mortgage industry as stable lenders step in to fill the gaps left by those that have gone out of business."

They also reported that Golf Savings Bank, a subsidiary of Spokane-based Sterling Financial Corp., is also expanding its home loan business and plans to add 20 new loan officers by the end of the year probably hiring former employees of Washington Mutual who just closed 23 offices in Washington State.

So buyers, get off the fence, we have a great economy here in Snohomish County, interest rates are low and there is plenty of inventory to choose from.

Contact me, Karen Villa Schweinfurth, ABR, CRS, SRES, e-PRO, REALTOR - "As no one knows Washington Real Estate like a Washington Realtor - 425-308-3669.

http://www.karensvillas.com

karen@karensvillas.com

Washington State - The Sky is NOT Falling

With all of the attention on the failing national housing market, many people have lost sight of the fact that Washington State is a unique market place.  We have not seen the crash that most other states have. The median priced single family home in Snohomish County has dropped only .92% since last year. Here is why:

1.  Washington has an extremely strong economy: unemployment is under 5 percent and according to the Washington State Office of financial management, we are projected to add another two million residents in the next 12 years.

2.  Washington has few subprime loans in danger of foreclosure so, contrary to what is happening in some states, we have fewer "distress sales" and foreclosures.

3.  The historic low mortgage rates are tuning the market around. If you are renting, you are not alone. There are thousands of people just like you who want to buy a home and are just waiting to see what the market will do. As these people enter the market, supply will go down and the market will heat up.

This is a great time to buy a home in Washington State. Be sure to ask a Washington Realtor, "As no one knows Washington Real Estate like a Washington Realtor."

Please contact me for housing information and a special booklet for first time homebuyers. Karen Villa Schweinfurth 425-308-3669; or visit http://www.karensvillas.com

karen@karensvillas.com

First Time Home Buyers in Washington State

Do you fit that category? You will want to visit this website, a dedicated page on the Washington Realtor's Web site that will give you great information on the home buying process and a step by step guide to accomplish this.

Here's an sample of what is available to you:

Congratulations! You are thinking of buying your first home. We know this is a big decision for you with a lot of unknowns.

Many first time home buyers will contemplate the decision for years before taking any action, even a first step. Our research indicates that once a first time home buyer does take that first step, they purchase their first home within three months.

This site helps you take that first step.

Once you purchase a home you will soon learn the tax advantages of home ownership and the opportunity to build equity (or wealth) over time. According to the Federal Reserve, the median household wealth accumulation for a homeowner was $184,000; in comparison, the median net worth of a renter was $4,000.
You've probably already been using the Internet to search for homes, financing options and home buying information. You will find many of those resource links included in this brochure. We also encourage you to contact a Realtor® at the very beginning of your quest and put that Realtor® to work for you. He or she will help you find what you are looking for in a home, in the area you want, and at a price you can afford. When you find a home that you want to make an offer on, your Realtor® will research the market and let you know if the price is fair. He or she can help you negotiate an offer and advocate on your behalf throughout the process.

A Realtor® can help take the mystery out of the purchase of your new home and show you the ropes. There are hundreds of little details in buying a home and some details that are not so little-like property lines, easements, earnest money and the time allowed for home inspections (to name a few). Don't worry, you will be involved throughout the process and if you have any questions along the way, do not hesitate to ask your Realtor®.

• Starting the home search
• Determine how much home you can afford
• Shop for a loan & research first time home buying programs
• Decide on a home & make an offer
• Get home inspected
• Shop for homeowners insurance
• Complete the transaction

The 28 page booklet is downloadable in a pdf format for your use or contact me to send you one at karen@karensvillas.com or 425-308-3669.

Remember to look for the REALTOR® trademark designation when contacting an agent. Not all licensees are REALTORS® and "NO ONE KNOWS WASHINGTON REAL ESTATE LIKE A WASHINGTON REALTOR®.