Okay, Christmas is just two short weeks away and the New Year rings in three weeks from now! The entire county is celebrating the holiday season with decorations, parades, and festivals, and we want you to be the first to know about what’s coming up around the community these next few weeks.

Here’s a few happenings we thought might be fun to check out:

Gingerbread House Making at Lynden Library – Dec 10 at 4pm

Christmas Festival at Bellewood – Dec 14, 15, 21, and 22 from 12-5 pm

Winter Arts and Crafts Festival at Pioneer Pavilion – Dec 14 from 10-6 pm

Fairhaven Winterfest – Nov 29 thru Dec 21

Narnia the Musical at The Claire Theatre – Dec 12 thru 15

The Nutcracker at Mount Baker Theatre – Dec 18 and 19

Christmas Eve Candlelight Services at FRC – Dec 24 from 3:30 or 5 pm

New Year’s Eve 2019 at Steak House 9 – Dec 31 at 9 pm

New Year’s Eve Bash at Boundary Bay Brewery – Dec 31 at 9 pm

Birch Bay Polar Bear Plunge – Jan 1 @ 11 am

Enjoy and remember the reason for the season. Merry Christmas and Happy New Year!

It’s ‘National Roof Over Your Head’ Day!

Did you know that each year in the United States, we celebrate “National Roof Over Your Head Day” on December 3^rd?

As noted on the National Calendar, it was “created as a day to be thankful for what you have, starting with the roof over your head. There are many things that we have that we take for granted and do not stop to appreciate how fortunate we are for having them.”

From bungalows to cottages, and farmhouses to treehouses, today we show our appreciation and gratitude for the places we call home. Owning the roof that shelters us is something many renters still aspire to, knowing there are so many financial and non-financial benefits to homeownership.

According to the 2019 State of the Nation’s Housing from the Joint Center for Housing Studies of Harvard University,

“Cost-burdened renters now outnumber cost-burdened homeowners by more than 3.0 million. In addition, renters make up 10.8 million of the 18.2 million severely burdened households that pay more than half their incomes for housing.”

Homeownership drives many benefits, including providing families with a place to feel secure. It also helps promote confidence that they are investing proactively in themselves and their communities. That is why there are 77.7 million owner-occupied housing units in the United States.

Many, however, fear it is too expensive to own a home. In reality, however, it’s actually more expensive to rent. Here’s the breakdown as a percentage of income necessary for both – affording median rent and owning a home:

Bottom Line

Today we pause to appreciate the places we call home, and all of the other reasons we have to be truly thankful. For those who don’t own yet and would like to, it’s a wonderful time to start identifying the steps to take toward homeownership. Let’s connect today to begin creating your plan.

There are Two Huge Myths Holding Back Home Buyers

In a recent article, First American shared how millennials are not really any different from previous generations when it comes to the goal of homeownership; it is still a huge part of their American Dream. The piece, however, also reveals,

“Saving for a down payment is one of the biggest obstacles faced by first-time home buyers. Dispelling the 20 percent down payment myth could open the path to homeownership for many more.”

Myth #1: “I Need a 20% Down Payment”

Buyers often overestimate how much they need to qualify for a home loan. According to the same article:

“Americans still overestimate the qualifications needed to get a mortgage, resulting in qualified potential buyers not even considering homeownership. Indeed, the Urban Institute report revealed that 16 percent of consumers believed that the minimum down payment required by lenders is 20 percent or more, and another 40 percent didn’t know at all.”

While many potential buyers still think they need to put at least 20% down for the home of their dreams, they often don’t realize how many assistance programs are available with as little as 3% down. With a little research, many renters may actually be able to enter the housing market sooner than they ever imagined.

Myth #2: “I Need a 780 FICO® Score or Higher”

In addition to down payments, buyers are also often confused about the FICO® score it takes to qualify for a mortgage, believing a ‘good’ credit score is 780 or higher.

To debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans.As indicated in the chart above, 50.23% of approved mortgages had a credit score of 500-749.

Bottom Line

Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Believe it or not – your dream home may already be within your reach.

On Veterans Day, we salute those who have served our country in war or peace, and we thank them for their sacrifice.

This year marks the 75^th anniversary of VA Home Loan Benefit offerings through the Servicemen’s Readjustment Act, also known as the GI Bill. Since 1944, this law has created opportunities for those who have served our country, ranging from vocational training to home loans.

Facts About VA Home Loans:

• Nearly 24 million home loans have been guaranteed by the Veterans Administration.
• Nearly 82% of VA home loans are made with no down payment.
• The VA also provides grants to help seriously disabled Veterans purchase, modify, or construct a home to meet their needs. Last year the VA provided 2,000 grants totaling $104 million.

Benefits of a VA Home Loan:

1. No down payment
2. No Private Mortgage Insurance*
3. Lower credit score requirements
4. Limitation on closing costs
5. Lower average interest rates

*More information on VA Home Loan Fees

Bottom Line

The best thing you can do this week to celebrate Veterans Day is to share this information with those who can benefit from these opportunities. For more information, or to find out how to qualify to use a VA Home Loan Benefit, let’s get together to navigate through the process. 

Thank you for your service!

Many sellers believe spring is the best time to put their homes on the market because buyer demand traditionally increases at that time of year. What they don’t realize is if every homeowner believes the same thing, then that’s when they’ll have the most competition.

So, what’s the #1 reason to list your house in the winter? Less competition.

Housing supply traditionally shrinks at this time of year, so the choices buyers have will be limited. The chart below was created using the months supply of listings from the National Association of Realtors. As you can see, the ‘sweet spot’ to list your house for the most exposure naturally occurs in the late fall and winter months (November – January).

Temperatures aren’t the only thing that heats up in the spring – so do listings! In 2018, listings increased from December to May. Don’t wait for these listings and the competition that comes with them to come to the market before you decide to list your house.

BONUS: Serious Buyers Are Out in the Winter

At this time of year, purchasers who are serious about buying a home will be in the marketplace. You and your family will not be bothered and inconvenienced by mere ‘lookers.’ The lookers are at the mall or online doing their holiday shopping.

Here’s the bottom line…

If you’ve been debating whether or not to sell your house and are curious about market conditions in the Whatcom County area, let’s get together to determine the best time to list your house!

It’s a spooky time of year right now with Halloween coming up next week, but it’s not just the horror films and haunted houses that are giving people a fright this fall. Common myths about what it takes to get a loan in today’s market are actually scaring buyers away from getting into the real estate market. We sat down with a Caliber Home Loans officer the other day to discuss what some of the top myths people fall victim to when it comes to buying property. If you have been guilty of believing any of the following assumptions or asked similar questions, you’re not the first! We understand that buying a home can be a stressful experience and might seem out of reach, but hopefully these answers will leave you feeling more knowledgeable about the loan process and maybe even encouraged to learn more about the opportunities available to you.

Myth #1: I need a 20% down payment to buy a home

This belief has been around forever, and we are happy to say that there are many low down payment options out there including 5%, 3%, and even 0% down! The concern with the low down payment options is higher interest rates, but these days lenders are offering great 0% down programs with competing rates including USDA rural housing loans.

Myth #2: I will be stuck paying for high mortgage insurance in a low down payment program

In simple terms, mortgage insurance is a fee to offset the risk for the mortgage investor. It is true, there are situations where the program available comes with a set mortgage insurance. However, not having the means to put 20% down doesn’t necessarily trigger a high mortgage insurance. To save yourself some money, there’s ways to buy it away upfront or build it into the interest rate!

Myth #3: I need a perfect credit score to qualify

Yes, taking the time to build up your credit score is definitely going to pay off when it comes time to buy property. Focusing on things such as paying off student or credit card debt, not making large purchases like buying a car, and maintaining a steady income will all affect credit score in a positive way. When it comes down to qualifying for a loan, there are low down programs that allow for 620 credit score and some even some as low as a 580! So, don’t get discouraged or assume your score isn’t high enough before speaking with a lender that can lay out some options to look into.

Myth #4: Lender credit inquiries will ruin my score

There are two different types of credit checks; soft and hard pulls. The hard pulls are associated with actions such as applying for credit cards, submitting rental applications, or even when applying for a new job. What the credit scoring system allows is for consumers to shop for certain services without your score getting hit after each inquiry, and mortgages are included in those services! The system actually allows a consumer to meet with multiple lenders during a 30 day window and the various credit pulls will only show up as one inquiry.

If any of these myths resonated, I would love to direct you to a seasoned loan officer that may have the right program available. It never hurts to ask the questions. Getting another perspective might help you see what you weren’t able to before!

Earlier this month, the entire Northwest Multiple Listing Service provided us with a detailed snapshot of the housing market. I have provided that report below but wanted to first compare the data given to what we saw specifically in Whatcom County last month and what we can expect heading into the 4th quarter of 2019.

According to the NWMLS, there was just over 2 months of available inventory in the entire database, where in Whatcom County the months supply was 2.5, up 8.7% from this time last year. Lynden has been gradually increasing inventory levels since last September and has climbed up to 2.8 months, 47.4% jump year over year! In a balanced market, we generally see 4 to 6 months of inventory, so demand continues to out way supply considerably.

Adversely to the entire MLS, the median sales price of homes in Whatcom County this September was right around $380,000 and Lynden was slightly lower at $375,000. Closing prices in all three areas are climbing with over 5% increases year over year.

Of the 8,000 residential and condominium properties sold in the entire MLS, 4% of that was in Whatcom County with 314 total closed sales in the month of September.

Hello! Happy Tuesday and the 1st day of October! We think that it’s now officially acceptable to embrace the fall season. Go hang the autumn decor, sip on all things pumpkin spice, and don’t forget to turn those heaters on cause it’s getting chilly outside!

This time of year tends to be hectic for many people as calendars fill up with family get togethers, company parties, and all kinds of necessary end of year tasks. The majority of people are busy and have put their goals of buying a home on the back burner. If you are serious about getting into a new home before the new year, it couldn’t be a better time to hunker down and get looking!

The competition will continue to drop as the holidays near, so your chances of getting into a multiple offer situation is significantly less. Also, those that are keeping their house on the market or even just now listing it are likely highly motivated to sell before the new year! Keep a look out for competitively priced inventory and frequent price drops as sellers get more anxious to find a buyer.

We want to make sure you are ready to move forward quickly, so here is some professional advice we recommend taking to best prepare for buying a home. It may have been a few years since you purchased property or maybe this is your first time. Things have changed a bit and it pays to be aware of these changes. Since the recession and the sub-prime mortgage meltdown, banks have become more stringent in their lending standards which has an effect on people buying a home. Here are some things you can do now to prepare:

• Get a copy of your credit report – go to annualcreditreport.com and download a free report from each of the three credit agencies: Equifax, Experian, and TransUnion. Review and make sure everything is accurate. If there are discrepancies, get them cleaned up.
  
• Determine your down payment source – will you be using proceeds from your current home for your down payment? A savings account? Borrowing money from a family member? Receiving a gift from a family member? Different paperwork is involved with each which your lender would be happy to go over with you.
  
• Meet with a lender – a quality lender has your best interest in mind and wants to help get you set up with a loan program that fits into your budget. Sitting down with a lender gets you honest and professional feedback in regards to your debt to income ratio, credit history, and a comfortable price range.

We want to help facilitate this next step in your life, so please don’t hesitate to give us a call for further information on a property of interest or if you’d like us to set up a specific search. Our goal is to get you in that new home without the stress that can come up when making such a large purchase. Enjoy your holiday season and remember we are just a phone call away!

A recent study performed by Corelogic found that an increasing 40% of people labeled affordability as the #1 obstacle to becoming a homeowner. Yes, property values are rising, but the actual price of a home isn’t the only factor to consider. Purchasing power is a significant piece as well.

What many people are failing to consider is that mortgage rates have dropped considerably over the year making buyer’s purchasing power very strong. Mark Fleming also noted, “If the 30-year, fixed-rate mortgage declines just a fraction more, consumer house-buying power would reach its highest level in almost 20 years.”

In the most recent Freddie Mac survey, the average 30-year fixed mortgage rate was 3.49% during the week ending September 5, the lowest weekly average since October 2016. The average rate in August was 3.62%, the ninth consecutive month of falling mortgage rates!

Taking this all into consideration, this fall is actually a great time to get back in the housing market. Give us a call if you have questions about this information or the housing market in general!

Congratulations! You’ve officially closed on your new forever home and can’t imagine ever wanting to move. Then, life happens and two years in, you’re playing with the idea of selling. We understand that changes or obstacles might mean putting your home on the market sooner than planned! Whatever the situation, the question that may come to mind is, “How soon can I sell this house?”

A general rule of thumb that we relay to our clients is to wait at least five years before playing with the idea of selling. Five years is the typical amount of time it takes to break even on your initial investment. However, if your situation requires an early sell, it’s not the end of the world. An article written this past week on Realtor.com has come up with three quality exceptions to the five year rule:

1. Your property value goes way up! Occasionally, the market gets hot and property values jump quickly. The current market is a good example of this as home values in Whatcom County have been on a steep and steady incline for a few years now! If you bought a couple years ago and notice your property value rising drastically, we would suggest first figuring out where it is you plan to go next. Moving to a lower-cost community would be beneficial, but you may not be able to get a nicer place in the same area without also paying a higher mortgage. Also, keep in mind that selling a property that you’ve owned for less than two years generates a capital gains tax. Take a look around and run the numbers before taking the plunge!
2. The neighborhood is going downhill. If you notice a clear downward trend in the quality of the area and homes surrounding you, it might be wise to get ahead of it. Neighborhood characteristics are usually a major attraction or potential deterrent for a buyer, so a declining one could greatly reduce the value of your home. Factors to consider about your neighborhood include it’s distance from noise, factories, malls, new construction projects, or anything that disrupts the quality of life. Ask yourself if any changes are devaluing your home and if yes, get out of there.
3. You just really hate living there! Although making a profit on the sale is important, that is not the only factor to consider. Your happiness is just as significant if not MORE important than the former. Before pulling the plug, you might consider turning the house into an investment property so that you can stop living there, allow someone else to pay your mortgage and continue to grow your net worth. Sounds like a win, win!

We encourage you to ask the hard questions and explore your options. If you’re unsure what the best decision to make is, we are here to listen and offer professional advice on the matter!