How can I afford to move?

Buyers Agent | Modern Home Buyers Guide

Navigating Buyer Agent Agreements and Compensation Post-NAR SettlementAs the real estate landscape evolves, the recent NAR settlement has introduced new dynamics in how buyer agents are compensated.Buyers' agents can navigate the new NAR settlement rules effectively by being transparent with clients and integrating these strategies.Partnering with a professional lender (me!) to make sure your compensation doesn't hinder your clients' offers on homes with limited or no commission. Let's work together to make home purchases transparent, stress-free, and ensure your clients can buy any home on the market. By understanding these options, agents can help buyers can make informed decisions and can better assist their clients in navigating these changes.These creative compensation structures will help you adapt to the new norms and ensure a smooth home-buying process.1. Seller Compensates Both Agents Equally (Same as prior to NAR Settlement)The seller agrees to compensate the listing agent and the buyer's agent individuallyThis compensation structure must be disclosed to both parties. Unlike previous practices, it clarifies that the seller is paying both agents directly. 2. Buyer Reduces Down Payment to Pay Buyer's Agent Commission (Finance in Mortgage Balance)The buyer offers a fair purchase price but reduces their down payment by, using these funds to pay the buyer's agent commission.The buyer adjusts their financing to allocate funds for the agent's commission from their down payment.3. Buyer Increases Purchase Price to Cover Buyer's Agent Commission (Built into Purchase Price)The buyer increases the offer price and requests that the seller pay this increased amount as the buyer agent's commission.The increased purchase price covers the buyer's agent's commission, effectively transferring the cost to the seller through the transaction. 4. Buyer Pays Buyer's Agent Compensation in CashThe buyer agent negotiates the best purchase price and pays their agent's commission in additional funds to close.The buyer directly compensates the buyer's agent without increasing the transaction amount.Implementation ConsiderationsTransparency: Ensure all parties know and agree to the compensation structure.Documentation: Clearly outline the agreed compensation method in the Buyer Broker Agreement and other transaction documents.Compliance: Adhere to the new NAR rules and local real estate regulations.Education: Inform clients about these options to help them make informed decisions and understand their financial commitments.I'm here to help!Becky Elder

Mortgage Basics Binder

Listing Agent | Modern Home Seller Guide

Dear Seller,Navigating the intricate world of real estate and home financing can be daunting as the landscape undergoes transformative changes, particularly with affordability, values, and increasing lowball offers. That is why your agent has partnered up with us, because I've assembled this playbook to illuminate solutions to our market's most pressing challenges. By having us on your team, we can use some of these solutions, as well as others, to help make the home more affordable to the buyers, while netting you, the seller, more money. Consider this an educational tool and a resource you can refer back to. It's designed to answer some of the pivotal questions you may have about the nuances of selling and purchasing real estate.⚡️ AFFORDABILITY SOLUTIONS ⚡️ Home affordability is a cornerstone in our industry. My team and I are equipped to devise financing solutions that cater to a diverse range of potential homebuyers. By securing favorable rates or introducing unique loan products, our goal remains steadfast: making the dream of homeownership feasible for more individuals.Example ➡️ Affordability Solutions .......................................................................⚡️ APPRAISAL GAP SOLUTION ⚡️ We have a remedy when a property's appraised value doesn't measure up to the anticipated list/sale price. Our appraisal gap strategy is tailored to bridge this disparity, ensuring that your listing agent, can secure the most competitive offer for the property. I've incorporated a video detailing our approach to this challenge for a more comprehensive understanding.Example ➡️ Appraisal Gap Details.......................................................................⚡️ NEGOTIATING LOWBALL OFFERS ⚡️ Encountering a lowball offer doesn't have to be a setback. We have a tried-and-true strategy to counter such offers, striking a balance that meets the buyer's proposal without compromising your financial considerations. This approach ensures that both parties reach an equitable and satisfactory agreement.Example ➡️ Negotiating Lowball Offers.......................................................................I aim to be a collaborative partner in your real estate journey. Our challenges in this dynamic market are achievable with the right tools and strategies. I hope this playbook serves as a testament to my commitment to excellence and unwavering support for you. Let's work together to turn challenges into opportunities and achieve unparalleled success in our ventures.Warm regards,BE Home loans team

Rent to Own ToolKit

Homebuyer Guide Spring 2025

Mortgage Insurance

Price Reduction V Seller Credit

While reducing the purchase price by $25k may seem like that would save the buyer a lot of money, it could actually save more money to keep the purchase price the same and ask for seller credit instead.Check out this example - a slight reduction of purchase price does not save as much as a seller credit used to buy down the interest rate! The seller will net the same from the sale but this can make a world of difference to the buyer.

Student Loans and How The Financial Responsibility Act of 23 will Impact Homeownership

High-Level View Of Options We Can Use ⚡️Standard Repayment Plan Payments are a fixed amount that ensures your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans). This is not an income-driven plan. It is not a good option for those seeking Public Service Loan Forgiveness (PSLF). ⚡️Graduated Repayment Plan The graduated repayment plan starts with lower payments that increase every two years. Payments are made for up to 10 years (between 10 and 30 years for consolidation loans) This is not an income-driven plan, which means you will not qualify for Public Service Loan Forgiveness or interest relief as you would on an income-driven repayment plan. Even more detail here. ⚡️Extended Repayment Plan Payments may be fixed or graduated and will ensure your loans are paid off within 25 years. If your extended plan is graduated, then payments will rise over time. You will pay back significantly more interest than on a 10-year plan. This is not an income-driven plan, which means you will not qualify for Public Service Loan Forgiveness or interest relief as you would an income-driven repayment plan. Even more detail here. ⚡️Revised Pay As You Earn Repayment Plan (REPAYE) This is an income-driven plan. Your monthly payments will be 10 percent of your discretionary income. Payments are recalculated annually based on your updated income and family size. Unlike PAYE, though, the monthly payment can exceed the 10-year standard plan payment. ⚡️Pay As You Earn Repayment Plan (PAYE) This is an income-driven plan. Your monthly payments will be 10 percent of discretionary income, but never more than you would have paid under the 10-year Standard Repayment Plan. Payments are recalculated annually and are based on your updated income and family size. ⚡️Income-Based Repayment Plan (IBR) This is an income-driven plan. Your monthly payments will be either 10 or 15 percent of discretionary income (depending on when you received your first loans), but never more than you would have paid under the 10-year Standard Repayment Plan. Payments are recalculated annually based on your updated income and family size. ⚡️Income-Contingent Repayment Plan (ICR) This is an income-driven plan. Your monthly payment will be the lesser of 20 percent of discretionary income or the amount you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income. Payments are recalculated annually based on your updated income and family size. ⚡️Income-Sensitive Repayment Plan This is an income-driven plan. Your monthly payment is based on annual income, but your loan will be paid in full within 15 years. Deferment ............................. You are in deferment on your 6-month grace period. Interest accrues during this period. This means your balance will increase, and you’ll pay more over the life of your loan. Any period of deferment will not count toward loan forgiveness. We recommend you enter into an income-driven repayment plan to lower your payment. Forbearance You are in forbearance, and interest accrues during this period. This means your balance will increase, and you’ll pay more over the life of your loan. Any period of forbearance will not count toward loan forgiveness. We recommend you enter into an income-driven repayment plan to lower your payment. Loan Sense is a great resource https://app.myloansense.com/

Will the Housing Market Crash Again?

One of the reason the housing market is unlikely to crash again like it did in '08 is because lending standards have tighten up significantly! So when your loan processor and underwriter are asking lots of questions and requiring extra documentation, know that they are doing their part to keep the housing market stable!

Is Home Equity decreasing?

What are Closing Cost?

Downpayment, closing costs, and cash to close are all related to each other, but have separate definitions!Downpayment = the percentage of the purchase price that you are paying now (i.e 5% downpayment on a $100,000 purchase price = $5,000 down payment).Closing Cost = the additional fees that are required to be paid in relation to the loan transaction. (i.e. Appraisal fee, Escrow fees, Recording fees, etc.)Cash to Close = Down payment + closing cost = the Total dollar amount that you will bring to closing.

Guide to Renovation Loans

What Is a Renovation Loan?When using a renovation mortgage loan to purchase a new home, Fairway will combine the amount of the purchase contract and the necessary repairs and improvements to calculate your adjusted sales price. You can also use a renovation loan to refinance your existing mortgage and finance the costs of your desired repairs and improvements into the new home loan.If the house is uninhabitable while being renovated, you can finance up to six months of your mortgage payment into the loan to alleviate you and your family from having to make two payments at the same time.Eligible repairs and upgrades may vary from loan program to loan program, so be sure to ask your Fairway mortgage advisor about all your options when discussing the specific details of your project.Renovation Loan HighlightsWhen shopping for a home, you may come across properties that aren’t quite what you’re looking for but have the potential to be your dream home with some repairs or renovations. With a renovation loan, you can roll the cost of financing or refinancing a home and repairs into one loan – saving you time and money.HomeStyle Renovation LoanLimited 203(k) Rehabilitation MortgageStandard 203(k) Rehabilitation MortgageRenovation Loan FAQs:How Does a renovation loan work?Renovation mortgage loans allow homebuyers and homeowners to borrow against the home’s subject-to-completion value today, rather than the value of the home in its current condition. The home’s subject-to-completion value takes into account the value added after repairs and improvements have been completed.For example, if the Jones family found a home in their ideal location listed for sale at $250,000, they could opt for a traditional home loan to finance the purchase of the property. While the Jones family may have enough money for a decent sized down payment, they may not have the funds needed to pay for desired upgrades or repairs out of pocket at this time. This is precisely where the benefits of a renovation mortgage come into play.Using a renovation loan at the time of purchase, the Joneses can not only finance the purchase price of the property, but the costs of the necessary repairs and home improvements as well.So if the home needed $50,000 of upgrades in the bathrooms, the Joneses could roll all $300,000 of the home’s price, plus the project price into one home loan.Minimum down payment requirements vary from loan program to loan program, of course. But imagine the savings (in both cash and in headaches) of being able to finance 95-97% of the total$300,000 loan amount it would take to turn this home the Joneses are considering into their dream home.Renovation mortgage loans are also a great way to upgrade your home at the time of refinance, rather than at the time of purchase. This is especially true if the home’s current value — before repairs — is significantly limiting the amount you might be able to borrow in a refinance.Are renovation mortgage loans a good idea?If the home you are living in or the home you are looking at for purchase needs repairs, or if you simply have a wish-list of upgrades that you would like to make, a renovation mortgage might be right for you. Keep in mind that since renovation costs are being financed into your home loan along with the mortgage amount, this could result in a higher monthly mortgage payment than other mortgage loan options.At Fairway, your renovation loan will take the form of a fixed-rate mortgage, which protects you from rising interest rates in the future. Remember, though, that renovation mortgage programs will differ in terms of their down-payment requirements and types of eligible repairs, so speak with your Fairway mortgage advisor about all your options today!

WA Home Advantage program

Ask me about down payment assistance options in WA State!

Homebuyers – Address change checklist

What exactly is a credit score??

Ever wonder how a lender decides whether to grant you credit? For years, creditors have been using a credit scoring system to determine if you'd be a good risk for credit cards, auto loans, and mortgages. Copyright© 2022 Fairway Independent Mortgage Corporation. NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Opportunity. Fairway Independent Mortgage Corporation is not affiliated with any government agencies. Materials are not from HUD or FHA

BUDGET!

A significant portion of how your lender determines how much you can qualify for depends on your month debt-to-income ratio. Meaning, how much income you earn each month divided by your monthly obligations; including (but not limited to) your new mortgage payment, auto loans, credit cards, student loans, child support. etc. Budgeting is a powerful tool that can help you successfully plan your financial future, and qualify for the home you want. On the right hand side, please feel free to download this monthly budget worksheet to help you get started on reaching your financial goals [email protected]

Downpayment

What exactly do we mean when we say down payment?The downpayment is a portion of the purchase price that you are able to pay at closing. For example, if you are buying a $100,000 home and you put 5% down, that means that your down payment is $5,000.A common misconception is that you must put 20% down to buy a home, but that isn’t true, especially for most first-time buyers!FHA loans only requires 3.5% down and there a conventional options for 3% or 5% down. If you’re a Veteran or Active-duty military, you may qualify for 0% down (See about VA Loans)Your down payment can come from a variety of sources.Saving or Checking accountGift: did you know that your family can gift you your down payment as well? That is a tremendous way that family can help build generation wealth. 401k: You also could borrow from your 401k account or use funds from an investment account. You may hear some people say to not borrow against your 401k, obviously everyone’s situation is unique; however in general I was say that borrowing against your 401k to purchase an asset that is going to appreciate overtime is a good investment.Down payment assistance: through the Washington State Housing Finance CommissionIf none of these options are available to you just yet, I would encourage you to sit down and work through your monthly and annual budget. Saving money is an important step in preparing to buy a home. Buying a home is a tremendous accomplishment, it’s okay if it takes a little time!Lastly, don't forget that the down payment is separate from the closing cost (see what are closing cost). Your total cash to close = down payment + closing cost - any seller credit.Let's chat about your [email protected]

Introduction to Becky Elder and the Loan Process

Through Education and Transparency, my goal is to help families build wealth in Real Estate.

The Mortgage Process (Simplified)

So you're pre-approved and got your offer accepted, what's next? The life of your loan has just begun! You will sign initial loan disclosures, and then your file is handed off to a team of experts to get your loan to closing!

Mortgage Dos and Donts

Your loan approval is largely based on your credit, debts, and income. Any changes to those during the mortgage process can negatively affect your loan approval. Don't open new lines of creditDon't co-sign on a lease or noteDon't close any accounts (there is difference between paying an account to $0 v closing it - Don't close unless explicitly advised to)Don't deposit large amounts of cash or move money around between accounts (Do: carefully follow instructions about how to move money between accounts) Don't quit or change jobsDo continue to pay your bills on timeDo continue to work your normal work hoursDo continue to save moneyDo continue to pay down debt if possibleDo continue to use your credit card as normalAlways consult your mortgage advisor before making any credit, income or financial changes! [email protected]

Interest rate Buydowns

Does it make sense for you to pay points for your interest rate? That depends on your financial goals. How long do you plan to stay in your home? How much monthly savings can a lower rate offer you compared to how much it will cost you in the beginning?In this scenario the points cost about $8,404 at closing (wow!) however it provides about a $400 per month savings! (even more wow!) $400 x 12months = $4,800 annual savings. That means in LESS THAN 2 years, you will 'break even' and be saving $$$$$.*Estimates based on conventional financing 20% down and 720 credit score. Actual rate and costs may be higher. Rates subject to change without notice. Not a commitment to lend.PLEASE NOTE THESE NUMBER ARE FOR IMFORATIONAL AND DEMONSTRATIVE PURPOSES ONLY.

Home Inspection Vs. Home Appraisal

What is the difference between a home inspection and a home appraisal? An inspection helps you to determine the condition of the home, which can impact further negotiations for seller credits or repairs. The Appraisal report is ordered by the lender and is used to determine the current market value of the home. Be sure to click on the additional resources on the right column --> (Source Keeping Current Matters)

Rent V Buy

Should you wait to buy until interest come down?Most experts agree, if you have the means to buy now - you should! The reason? Waiting to buy has multiple cost:Cost #1 - Rent is 100% interestWhen you pay rent, it is similar to paying 100% interest. The money is going to someone else and you will never see it again.When you own a home and pay down the balance of loan you're putting money into an asset that you own. As the loan balance gets lower the difference between your loan balance and the home value is your equity. When you go to sell the home someday, you will get the money that you invest back, unlike rent.This is the reason that the average homeowner's net worth is 40xs greater than the net worth of the average renter.Cost #2 - You're missing out on home value appreciation Home values are predicted to continue to rise steadily over the next five years. In addition to paying down your loan balance, equity is also grown through your home value's increasing. Let's say you buy your home today for $400k and in 5 years you sell it for $650k, not only are you making back the money that you invested in over the last 5 years through paying the mortgage balance down, you're also making $250k just in home appreciation!Cost #3 - You will likely be paying more for a home in the futureThe person who buys the home from out prior scenario in 5 years for $650k is paying $250k more for than if they bought it today for $250k.The cost of waiting can be high - hence why most experts agree, if you can buy now - you should!Let's connect: [email protected]

About VA Loans

True to its name, this loan is for Active-duty military members, Veterans, and certain surviving spouses that qualify.This is an amazing product that can allow for as little as 0% down for those who qualify without any kind of mortgage insurance. The underwriting guidelines takes into account the unique life experiences of Veterans and military members to help them qualify for a home that they so well deserve.A common misconception about this loan is that it doesn't close as fast as conventional loans and that simply isn't true. There's no reason why a VA loan cannot close as seamlessly and timely as any other. If you’re Active-duty military or a Veteran you need to inquire about this loan option

Seller Paid Closing Cost

What is a Seller Credit? Seller credit is when the seller of the property you are purchasing agrees to use some of their sale proceeds to help you, the buyer, pay for your closing cost.Some closing cost are split between the buyer and seller, so a seller credit would be going above and beyond paying their own costs, and the shared costs.There are limits on how much a seller can credit the buyer. These limits depend on the loan program and down payment amount - check out the PDF for specific details.In all cases, the buyer must meet their "minimum required investment" which means, the buyer is responsible for their down payment. There are multiple sources their downpayment can come from (see down payment options) , but it cannot be a seller credit. A seller credit can cover prepaids, points, and closing cost but NOT the down payment.In some case, asking for a seller credit instead of reducing the purchasing price, can actually help the buyer more! Depending on what we do with the seller credit we can significantly reduce your cash to close or even monthly payment!Have questions? Let's [email protected]

About Your Loan Officer – Becky Elder