Bellingham Wa Real Estate Blog & NewsRecently posted or modified blog posts in the category - Buying a Homehttps://www.levainteam.com/blog/Copyright LevainTeam.com2023-04-26T10:45:34-07:00tag:levainteam.com,2012-09-20:93088 Reasons Real Estate is the Best Investment<img src="https://assets.site-static.com/userfiles/865/image/blog_headers_1.jpg" width="1120" height="630" />
Are you looking for an awesome investment opportunity that can help you build your wealth? Look no further than real estate! Especially here in Bellingham, Washington area where we are based, the area is growing in popularity and population. Here are eight reasons why it’s the best investment out there:
1. Steady Cash Flow: If you invest in rental properties, you can expect a steady cash flow each month. Expenses are predictable, and if you keep your properties occupied, you can rely on a consistent profit margin.
2. Appreciation: Real estate consistently appreciates in value, even during economic downturns. On average, real estate in the US appreciates between 3-5% annually. So, not only are you making money every month, but your investment is also growing over time.
3. Retirement: Paying off your mortgage during your working years means you'll experience greater cash flow when it's paid off. Investing in real estate can help you retire more comfortably.
4. Lower Taxes: When you sell your property, you are taxed at a lower rate than other types of income. Short- or long-term capital gains tax brackets are usually lower than income tax brackets.
5. Leverage: Investing in real estate allows you to leverage your money. When you take out a mortgage to purchase property, you reduce the amount of capital required. As you build up equity in the property, you can borrow against it or refinance the original loan, freeing up cash to buy another property.
6. Control: You have control over your investment in real estate. Unlike stocks, where you have no control over how they perform, you can improve upon your real estate investment. Updating or upgrading systems, finishes, appliances, and landscaping can help build value in your investment.
7. Tax Deferral: Under the 1031 exchange tax code, you can invest the gains from the sale of one property to the purchase of another property without paying taxes on the gains. This allows you to keep reinvesting your money and grow your portfolio without being taxed on the gains.
8. Depreciation: You can legally claim a depreciation expense on an investment property, even though the value of your investment property is actually appreciating. The depreciation deduction allows investors to generate a higher cash flow while reporting a lower income for tax purposes.
So there you have it, folks. Eight rock-solid reasons why real estate is the best investment out there. Ready to go ahead and start building your investment portfolio today? Reach out to us and we can go over in detail how we can help you succeed! 2023-04-26T10:29:26-07:002023-04-26T10:45:34-07:00Aldo LeVaintag:levainteam.com,2012-09-20:928012 Tips to Make Moving Easier<img src="https://assets.site-static.com/userfiles/865/image/tips_to_make_moving_easy.jpg" width="2240" height="1260" alt="aldo_jasmin_levain_team_real_estate_bellingham" />
Are you ready to take on the exciting adventure of moving to a new home? While the idea of starting fresh in a new space can be exhilarating, the actual moving day can quickly become overwhelming and stressful. But don't worry, we've got you covered! We've put together 12 tips to make your move a little easier and a lot more fun. From scheduling your move in advance to hiring packers, getting your new home professionally cleaned, and even planning for your pets and little ones, these tips will help you stay organized, efficient, and even enjoy the process. So put on your favorite playlist, grab a snack, and let's make moving day a breeze!
1. Plan ahead! Schedule your move with the moving company well in advance, and make sure they know about any heavy items you'll be moving.
2. Hire packers if you can. They're efficient and great at wrapping fragile items, and they'll even pack the day before your move.
3. Don't forget to schedule services for your new home, like power, water, trash service, internet, and more.
4. Get your new home professionally cleaned before you move in. You don't want to arrive to a dirty house!
5. Pack a moving supply box with all the essentials you'll need, like toilet paper, paper towels, and snacks.
6. Make your bed as soon as you can. You'll thank yourself later when you're exhausted at the end of moving day.
7. Pack your towels and bath soap with your bed sheets so you can jump in the shower without searching for towels.
8. Make plans for your pets so they don't get stressed or lost on moving day.
9. Say yes to helpers! Delegate tasks like unpacking, organizing, and picking up lunch.
10. Hire a sitter for your little ones so they can explore their new home while you focus on unpacking.
11. Hire someone to hang your art and window treatments if you're not into DIY.
12. Don't forget to check out of your old house! Submit a change of address form, leave all keys and garage door openers, and clean out any hideaway spaces. And if you're feeling extra nice, leave a list of recommended local vendors for the new owners.
Looking to move into the Whatcom County area in Washington? Give us a call or send a text - We are always excited to help you succeed in your real estate goals and dreasm!
Why is Bellingham, Washington area becoming so popular? Bellingham, Washington is a beautiful city located between the Cascade Mountains and the Puget Sound, making it the perfect place for those who love the outdoors. With its proximity to hiking trails, ski resorts, and water activities, there's always something to do in Bellingham. The city also boasts a vibrant downtown area with unique shops, restaurants, and a bustling arts and culture scene. Plus, Bellingham is known for its commitment to sustainability, making it a great place for eco-conscious individuals. Whether you're a nature enthusiast, beer fan, a foodie, or an artist, Bellingham offers something for everyone, making it a wonderful place to call home.2023-04-20T08:12:50-07:002023-04-21T09:38:58-07:00Jasmin Wordentag:levainteam.com,2012-09-20:8800Part 2: Unlock the Secrets of Construction Loans: A Comprehensive Guide to Building Your Dream Home
Part 2 of the Video Series: Unlock the Secrets of Construction Loans: A Comprehensive Guide to Building Your Dream Home
In Part 1 of the video series, Aldo LeVain with The LeVain Real Estate team at Windermere and Dylan Langei discussed that Construction loans are financing options for those who want to build their own home. Before applying, it's important to be aware of potential delays and cost overruns due to material and labor shortages in the construction industry, and to determine if you are financially eligible by speaking with a lender.
Key Take Aways from Part 1:
A construction loan is a financing option for building a home and not everyone qill qualify for it.
Before applying for a construction loan, it's important to know if you are financially eligible and prepared for potential delays and cost overruns due to material and labor shortages in the construction industry.
If you have a passion for building homes and are prepared for the process, a construction loan may be a good option for you.
In Part 2 we go over:
Step 1: Pre-Approval The first step in securing a construction loan is pre-approval, where the lender will collect your credit, income, and asset documentation to determine your credit score, debts, income, and assets. Your lender will then preapprove you for a loan based on this information.
Step 2: Equity from the Lot If you already own the lot, you can use equity from the lot towards your down payment. For example, if you purchased a $1 million lot and put a 10% down payment, you have $100,000 of equity in just that portion.
Step 3: Add in Hard and Soft Costs When calculating the acquisition cost, remember to add in the hard costs (construction costs) and the soft costs (permits, fees, etc.). Your total acquisition cost will be the sum of the lot price and the hard and soft costs.
Step 4: Collecting Documentation Once you have pre-approval, you'll need to complete a full construction packet. This includes the following documents:
A general contractor who is licensed and bonded
A builder resume that verifies the contractor has been in business for at least three years
Check for any outstanding liens against the builder
A full budget that itemizes the costs for framing, foundation, dirt work, etc.
Step 5: Construction Review The lender will run the construction review process alongside the credit and income review process. This includes reviewing the construction budget, builder resume, and credit profile. Once the lender has received all necessary documentation, they'll provide final approval for the construction loan.
Building your dream home requires careful planning and preparation. By following these steps and working with a professional lender, you'll be one step closer to realizing your dream.
Stay Tuned for Part 32023-02-03T15:32:52-07:002023-02-03T15:50:01-07:00Aldo LeVaintag:levainteam.com,2012-09-20:8799Part 1: Unlock the Secrets of Construction Loans: A Comprehensive Guide to Building Your Dream Home
Construction loans are a type of financing option for those who want to build a home instead of buying an existing one. Building a home is not as easy as many people think, and there are several steps involved in the process. Before applying for a construction loan, it is important to know if you are financially eligible for it and if you are okay with the process taking longer and costing more than expected. This is due to the current material and labor shortages in the construction field.
The first step in the process is to either talk to a realtor or a lender. Lenders are a good option as they can help determine how much you can afford to spend on your home. When you meet with a lender, they will evaluate your financial situation and see if you qualify for a construction loan.
Before applying for a construction loan, it is important to be aware that building a home can take longer and cost more than you expect. This is due to the current shortage of materials and skilled tradesmen in the construction industry. If you are okay with this, a construction loan may be a good option for you.
When building a home, there may be delays and unexpected costs, but if you are prepared for this, you can enjoy the process of building your own home. If you want to be a part of the process and have a passion for building homes, then a construction loan may be the right choice for you.
In conclusion, a construction loan is a financing option for those who want to build their own home. Before applying for a loan, it is important to be aware of the potential delays and cost overruns that may occur due to material and labor shortages in the construction industry. If you are okay with this and have a passion for building, a construction loan may be the right choice for you.2023-02-03T15:08:27-07:002023-02-03T15:51:11-07:00Aldo LeVaintag:levainteam.com,2012-09-20:8790When is the perfect time to buy a home in Bellingham Washington?
Hi everyone, it's Aldo here with tThe LeVain Real Estate Team in Bellingham Washington. Today I want to talk about a topic that's been on everyone's mind: When is the right time or perfect time to buy a house?
Well, there is a common belief that there are different seasons in every year that are better to sell your house in our market, but the reality is that the perfect time to buy a house is subjective. There is no perfect storm or ideal market for everyone. It all comes down to what's the right time for you.
For example, some people may have bought their house a year or two ago when interest rates were low, while others would rather take a higher interest rate but not have to pay over asking price. The good thing about the current market is that buyers are starting to become more in control, meaning they may be able to get closing costs paid for or extra money off the list price. However, the downside is that interest rates are currently around 6% to 6.5%. But, the upside is that there is very little competition right now.
The National Association of Realtors came out with an article two years ago and found that over 100 reasons why people bought houses, but the number one reason was simply because it was just the right time for them. It wasn't because of interest rates or a favorable market. Every person has their own ideal time.
So, when is the perfect time to buy a house? The answer is simple: when it's the right time for you. Whether it's because you saved up enough money, interest rates are low, you got a new job, or any other reason, just remember that every person's ideal time is different. So, don't worry about trying to find the perfect time, just focus on finding the right time for you.2023-02-03T08:48:08-07:002023-02-03T08:59:52-07:00Aldo LeVaintag:levainteam.com,2012-09-20:8169Is There a Perfect Time To Buy A House?
<br />There's never a perfect time for you to buy a house. Or is there?
Yes, there are certain times of the year that are better for selling a house in our market. For example, listing your house in December or January may not be as effective as listing it in the springtime. This is because the market is generally more active during the spring, and buyers are more likely to be out looking for homes.
But what I want to talk about is when the perfect time to buy a house is so there really isn't a perfect time. There's no perfect storm. There's nothing that's going to create a housing marketthat is going to be in ideal market for everybody.
While interest rates may be higher than in recent years, the current market offers other advantages for buyers. One of the biggest benefits is a lack of competition, which means that you can take your time and look at multiple houses without worrying about losing out to other buyers. This gives you the opportunity to carefully consider your options and make the best decision for you and your family. So even though interest rates may be higher, there are still plenty of reasons to consider buying a house now.
So some people will say, hey, I bought my house a year ago or two years ago and my interest rates 3% or 2%, whatever it is, like I was perfect for me. Yes, it was. But for some other people, they would rather take a 4% or 5% and not have to pay maybe $50,000 over asking price maybe $100,000 or asking price because that was the market that we were in for the last six months to a year, a year and a half. Yes, you're going to have every market's going to have their ups and there's going to have their downs right now. The good thing about this market is that the buyers are starting to become more in control of the market, meaning they're going to be able to get some closing costs paid for and or getting an additional money off of the actual list price.
The perfect time to buy a house is ultimately up to you. According to the National Association of Realtors, the number one reason people buy a home is because it feels like the right time for them, regardless of market conditions or interest rates. And while market conditions may fluctuate, there are still many people buying homes and going under contract, even with higher interest rates.
Becoming a homeowner is a big decision, but it's not impossible, even with high home prices and interest rates. In fact, continuing to rent may end up costing you more in the long run, as rents are likely to continue to rise. So if you're thinking about buying a home, don't hesitate to reach out to a real estate agent for help and guidance. It may not always be easy, but with the right support, you can make the dream of homeownership a reality.
- Aldo LeVain2022-10-04T11:11:00-07:002022-12-12T17:35:55-07:00Aldo LeVaintag:levainteam.com,2012-09-20:3012Get Your Sh*t Together
If you guys are looking at buying a house in today's market, you need to get your shit together.
You need to be prepared. There's no time for you to go out and start looking at houses and finding your dream home and then trying to get pre-approved. You need to have everything in place. You need to have all your paperwork in. Get a pre-approval letter knowing how much your mortgage is gonna be at different increments, just in case you need to offer 10,000, $15,000 more for that house. So I wanna bring this information to you because homes are coming on the market, and we're seeing a lot more inventory, but homes are obviously selling still rather quickly.
People that I've been talking to last year wanted to wait for this year. And this spring actually may be pretty chaotic. We may start seeing more homes come on the market, but we will start seeing a lot more competition. I'm not saying homes are gonna append for 40, 50, $70,000 over asking price, but can they can go in maybe one, two or three days. And you need to be prepared 'cause there's no waiting around. There's so much that's going on to the market right now that you need to take advantage of it.
So, right now you need to be prepared, you need to know what city you wanna live in, or maybe a couple, and start seeing the homes that come on the market, if not that same day, the next day. Be prepared to make an offer so that you can get into the house that you truly want. So remember, get your shit together, be prepared, do what others aren't doing so you can be in your dream home come the spring time.
Reach out to us if you have any other questions and we'll see you next time.2020-03-09T10:50:00-07:002020-03-26T18:10:04-07:00Aldo LeVaintag:levainteam.com,2012-09-20:2879When Should You Refinance Your Home?
Have you been thinking about refinancing your house but not sure when you should do it? Today we want to talk about when you should be looking at refinancing your house, whether that was last year or five years ago.
There's only a couple of reasons why you should refinance your home and I'm gonna name off a few of them, no importance in order, but number one is obviously getting a better interest rate. And some of you may have bought your house about a year and a half ago, where interest rates were almost 5% and now they're hovering in that mid or so 3.75%, and you want to get a better interest rate 'cause you don't want to be paying 1% more over the next 30 years. Your credit is probably getting better now that you're a homeowner and you just want to simply get a lower interest rate.
Number two is getting rid of your private mortgage insurance. Some of you have bought your home at least two, three years ago where you've built up equity and you maybe only put three, five, or even ten percent down and now you have enough equity in there that you can get rid of your private mortgage insurance and remember, you can only do so by having an 80% loan to value. So let's say maybe you owe only $300,000 on your house so it could be worth 450 now, well you're at that 80% threshold so you can actually just get rid of that and lower your payment. Some of you have $100 of mortgage insurance or some of you can have up to $300 and that alone will save you so much over the course of the next 30 years.
Number three is a little bit of hosh posh, it has to do with number one, number two, but if you have a lot of equity, some people like to get a HELOC, or home equity line of credit, or they're just trying to pull some money out so they can go ahead and redo their kitchen, their bathrooms, whatever it is, maybe some of you have other debts you just wanna get rid of, and you just wanna take some money out, so those are the top three reasons why you should maybe look into refinancing your home and interest rates right now are so low, they're gonna keep continuing to go down is what we've heard and what we've read this coming year in 2020, so if you have a high interest rate, if you need money out of there, or just get rid of the PMI in your home, it'd be a really good idea to reach out to your lender, reach out to us, we have great recommendations, we'll put you in contact with the right people, that way you can make your home and your monthly payment just a lot lower than what you have now. 2020-02-17T12:23:00-07:002020-02-17T12:32:40-07:00Aldo LeVaintag:levainteam.com,2012-09-20:2871Buyers & Sellers: it's crucial to let your Realtor know what your ideal timeline looks like!
Today were talking about why it's crucial for you to let your realtor know about your timeline. We want to emphasize why it's so crucial about these timelines, and what do I mean by that? And that is, whether you are looking at selling your house or looking to buy a home, you need to let your realtor know when you wanna be moved in by, or when you need to sell by.
Now let's start with if you're trying to list your home and you need to sell. Well, you always need to reverse engineer. Right now, if you wanna be sold and be moved out, whether you're moving out of state or moving into a new school district, and let's say you wanna be out by the very first of June, well depending on your house, whether it's the price point, condition, or relatively, maybe what's going around in your life, we need to figure out when we need to actually have your home listed and, worst case scenario, when your house is gonna sell by, so when it does come to June 1st, we need to have your home sold by then.
There takes a good effort in the prepping of your home before it even goes on. We need to figure out whether your house needs repairs, whether you need to spruce it up a little bit, landscaping, decluttering. Are you busy, do you work 50, 60 hours a week? Is that something that's going to impact your efforts in getting your home ready, and any contractors that we may need to get in contact with to actually get your home right where it needs to be in order to sell. So your house may take a couple weeks, or it may take a couple months in order for it to get on the market, and depending once again on price point and condition, it may take your house two days to sell, or it may take your house maybe two months to sell, and whether that buyer actually loves your home and doesn't back out, well, from there it takes another 30 to 45 days to actually get your home sold, so relatively speaking, your house from start to finish, it may take three, four, five months to actually get it sold, so it's very crucial for you to be able to speak to your realtor and let him know exactly when you wanna be moved out.
For those of you who are thinking to buy, timelines are just as crucial. You may be renting, and you need to be out of your lease by June 1st, and maybe the property management isn't going to allow you to renew month to month. Maybe you need to sell your home, but you can actually afford to buy your other home, so you need to be out of there before the new owners take that over. Once again, you have to reverse engineer everything, and when it comes to buying, you have to have all your finances, everything ready to go, because when you do find that home, you will need to make an offer right away on it, because homes are still selling relatively fast, so when you're buying, you have to think of, okay, I have all my forms into the lender, okay, perfect, I know what my payment's gonna be. I know the area I wanna be in, I've looked at enough homes in this price point to know whether or not I need to actually, maybe, make my budget higher or if I'm okay with lowering or staying at your budget at where you're at.
So, it's very crucial when you're sitting down with your realtor to let 'em know, hey, I wanna be in, my goal is to buy by this date, or to sell by this date. That way you guys can go ahead and make sure to have a complete game plan on where and when you need to be by. 2020-02-14T12:18:00-07:002020-02-14T12:21:30-07:00Aldo LeVaintag:levainteam.com,2012-09-20:2818Fear of Owning a Home
Here's a common fear that many renters have about owning their first home. Jasmin is talking to you about a common fear that many renters have about owning their home.
The BIGGEST fear? Commitment. The reason this freaks people out is because this commitment is not only committing to pay for something for the next 30 years, but probably pay for something that might be a little bit outside of your comfort zone or maybe something that you're used to paying.
The reality actually is that you've already committed to being a lifetime renter. And really, if you think, oh, I'm not gonna be able to afford my mortgage, that's probably gonna happen to your rent, as well because rents are increasing every single year. If there's that fear of the commitment of, what if I can't pay my mortgage, that same fear is also within renting, as well.
The major difference in what you're doing is paying for something that's actually appreciating. So you're paying money every month, but you're paying for an appreciating asset that will hopefully, in turn, build you some equity down the line if you choose to sell and buy something different, or if you choose to keep it and have renters in that, as well, because when you're renting, what you're doing is you're making the person that owns that property more wealthy.
To put it in perspective, if your rent is $1500, over the course of 10 years, you're gonna be paying $90k in rent. That's basically money that you can just think of going down the drain. You've never gonna see that again. Now, if you are renting $1500 a month for 20 years, that is $360k. That's the price of many homes here in Whatcom County.
What we're trying to explain is just the fact of understanding that by not buying a house, you're committing to being a renter for the rest of your life. And still essentially, gonna spend the same amount of money. One will give you a return over time. One, that money will go away and you'll never see it again. 2020-02-03T09:32:00-07:002020-02-03T11:25:19-07:00Aldo LeVaintag:levainteam.com,2012-09-20:2642The #1 Mistake Home Buyers Make
The number one mistake seen day in and day out is home buyers missing a buyers consultation. Yes, you can be pre-approved and find a house that you want, but the very key step is sitting down with myself and going through the process of actually buying a home. So why does skipping this process, why can it be problematic?
Well, there's three different things. One, you may not be pre-approved, and number two, you don't know the actual process and you just haven't discovered enough homes, possibly, out there that may be a right fit for you or may not be a good fit for you.
So, what actually happens in this buyer’s consultation? Well, it's going to be a large investment of my time into you guys so I can figure out exactly what you're looking for, the timeline you're trying to be in your home with, and most importantly, going through the process and giving you expectations and a process so you know what to look for and what to do when you're actually buying a house.
Sometimes you are pre-approved and you've got everything ready to go and you see a house, we go take a look at it, we make an offer, and the next thing you know, you're being thrown in the fire and your realtors are trying to give you information here and there and it's pretty much just like herding cats, and that’s not how the process should be. Realtors want to make sure when you do find that home, you're prepared to make an offer, you're prepared to do what you need to do in an inspection and sit down with you. They want to make sure that this home-buying process is as easy and smooth as possible because home-buying can be stressful, or it can be a really great experience.
So, remember guys, we want to build and create a very unique game plan for you because you are different than anybody else that who's buying a house. We want to figure out how we can tailor our strategies to you in owning a home, whether that's tomorrow, six months from now, or two years from now. So please, don't skip the buyer’s consultation. It's very, very important. 2020-01-30T13:58:00-07:002020-01-30T14:56:22-07:00Aldo LeVaintag:levainteam.com,2012-09-20:2621Real Estate Market 10 Years Ago
Our housing market here in Whatcom County was way different 10 years ago.The Bellingham Herald's posted an article that just came out a couple weeks ago explaining the numbers, but here is a recap.
Homes depreciated nearly 7% in 2008-2009, which is crazy. 849 properties received a foreclosure filing that year, up from 253, (which is almost 4x the amount, from 2006.
Nearly 4% of Whatcom County households were more than 90 days behind on their mortgage payment. The median price hold back then was 259k so right now the median, which I don't really go by, but, it's more than the average, in Whatcom County, is about 418k.
The reason this information is important because alot of people keep talking about the "crash", but the reality is, there were some real big stats that came out with deaths and people losing their jobs and families just being broken and, people are always talking about how they're so excited for this crash they jump on real estate.
Just remember that, even though yes, the crash was good for home prices, that doesn’t mean that it is necessarily good for all the other factors that go into buying and selling a home.
2020-01-27T11:33:00-07:002020-01-30T14:56:50-07:00Aldo LeVaintag:levainteam.com,2012-09-20:2603New Spring Real Estate Market
Last week there was 87 homes that were under contract and only 30 new listings, so what does that mean for you if you're looking at selling right now? There were very little listings, but we actually saw a big number of homes that went under contract, so what does that mean?
It means that spring really isn't the new time to come in and sell your house. Research according to realtor.com, last year in January 2019 there was 1% less homes viewed in January than in February and in March, so a lot of people are starting to look at homes in January and February, and not waiting until the spring market.
A lot of people are knowing that the spring is a huge time to buy and sell but now that there are buyers, and it's proven last week there was still real estate transaction that was going on, and you can see 87 homes are under contract. Now seven of those went under contingent, so about 80 or so actually went pending, but that's showing that even through the slush, wind and cold, people are still wanting to buy homes, there just isn't a lot of inventory out there.
So if you are thinking of selling your house and you're trying to wait for the spring, right now may be the optimal time, because when you want to sell something and there's a high demand but a shortage of inventory, that's when you're going to get the most amount of money for anything that you're selling.
So guys you should look at it, the snow hopefully won't be coming back, hopefully we have a nice wet February, but you should really start thinking about getting your home prepped and getting it on the market before the springtime because even if you are listing your home you will have competition with everybody else, so why not capture less competition and maybe possibly getting a higher dollar amount for your house still here in the wintertime.
So remember there's a misconception that springtime is the best and optimal time to sell your house, when data shows that maybe it's not so much anymore, and that there is a new spring market which is now the winter market to sell and buy a piece of property. 2020-01-23T14:09:00-07:002020-01-30T14:58:11-07:00Aldo LeVaintag:levainteam.com,2012-09-20:2602Buyers Don't Pay Commission
Did you guys know, when you're buying a house you don’t pay for your realtor or any services that they provide for you throughout the whole transaction?
Now the seller pays both the listing agent and the buyer's agent, which means that you're not financially committed to the agent that's working for you. They're working for your best interests to get you from A to Z to get you in the house that you want in the location that you want, in the right amount of time that you guys are looking for.
There’s point for you, as a home buyer to go out there and not even have a real estate agent representing you because everything's being paid out by the seller and you have no financial commitment to your buyer's agent except for just committing to them to help you find your home and negotiate and find you the right house and really represent you and get you through this whole transaction and the whole process and especially if you're a first-time home buyer, it's a huge plus.
So remember if you're going to be out there and you're looking at for sale by owners or maybe your friend or friends of a friend maybe a family member is actually going to be selling you the home and there's not going to be a real estate agent involved, you should really look at finding somebody to represent you because unfortunately right now the seller regardless of what kind of relationship you have with them, they are looking out for the best interests of themselves and themselves only as listing their home to you.
Now you'll have a representation, we know a lot of us can be very naive and we can be trustworthy of other people but when it comes to buying a house you don't really know and you don't want to trust exactly what they're telling you about the history of the home. And if they have any assessment or they've done inspection you want to have the proper steps and the proper guidance from a real estate agent, to help you through that process.
So remember, when you're buying a house from your neighbor, from a family member whoever it is and there's a real estate involved, we highly encourage you to look for one so they can help you out through this whole process. 2020-01-23T13:21:00-07:002020-01-30T14:59:22-07:00Aldo LeVaintag:levainteam.com,2012-09-20:2472What Are Interest Rates Today?
So what are interest rates at right now? What are they today?
That's a great question but also a very loaded question because it does depend, right? Interest rates are constantly moving. Sometimes they can change twice a day, or even three times a day. It's usually every other day, and it's heavily dependent on that individual's scenario, back to the variables, the credit, the down payment, the loan program, these items that we really need to look into for us to be able to give them a custom quote.2019-11-21T14:18:00-07:002019-12-30T14:43:02-07:00Aldo LeVaintag:levainteam.com,2012-09-20:2471A Few Reasons Why Home Prices are Increasing in Whatcom County
There's a lot of new companies that are coming to Washington. Obviously, we all know there's a lot of huge companies that are in Seattle, and they're starting to look at maybe coming up north. So what does that, I mean what does that say for us? There could be more jobs. We don't really know what's going to happen with that, but we do know that Bellingham is a much less expensive option for a lot of big companies as far as rent and home prices go. We are seeing a lot of people migrate to Bellingham from California, from Seattle., last year alone, we saw 3,500 people come up here that weren't from here. So there are a lot of people coming in, so it is driving our economy up.
In Whatcom County, there are about 3,000 new kids being born every year, but there are about 2,400 deaths every year as well. So our net growth is about, let's say, 500 or so. But with 3,500 new people comin' into Whatcom County, that's where we started to see the prices go up. We saw a lot of people coming up from Seattle, California, when they sell their $800,000 house to buy a $500,000 house, they have a lot more equity to work with.2019-11-19T14:13:00-07:002020-01-06T15:28:56-07:00Jasmin Wordentag:levainteam.com,2012-09-20:2469What Variables Can Affect Your Interest Rate
Today Jasmin and Aldo are going to talk about interest rates and what kind of variables affect them, but most importantly, why would one person get a 4.5% interest rate, and then another get a 4.25?
The biggest variables with interest rate pricing are going be credit, it's going to be your down payment, it's gonna be the loan program, it's gonna be the terms of the loan, so whether that's a 30 year fixed, a 15 year fixed, an ARM loan which is an adjustable-rate mortgage, there are a lot of variables that go into that.
When a client meets with a lender there is something called points which are a percentage of your loan amount, so one point would equal 1% of your loan amount. An example would be a 300k loan, one point of $300,000 would be $3,000. So that $3,000 would be paid at closing to lower your interest rate.
Another important variable is points, however, they are very situational depending on how long the client stays in their home. For example, lenders will look at the difference in the monthly payment, and we'll see how many months it will take to recoup that initial investment back, $3,000. Because that $3,000 points that you paid is actually an investment to buy down that rate. So lenders find that break-even point, and then they tell clients, "Hey, if you plan on staying "in your house over seven years, "then buying down your interest rate makes sense." But there are some cases where it may not make sense for everyone.2019-11-18T13:46:00-07:002019-12-30T14:43:40-07:00Aldo LeVaintag:levainteam.com,2012-09-20:2464Behind the Scenes of an Inspection
Today Aldo is going to show you a little sneak peek of what it's like to be behind the scenes at an inspection. Aldo met with Darren at Caliber Home Inspection to give a tour of what happens during an inspection.
The main thing is just to look at is the wiring of the house, the inspectors want to see what type of wiring you have in your house. Is it copper? Is it aluminum? They know what to expect based on the age of the home usually. Inspectors like to look at your breakers, they like to make sure that everything is sized appropriately, there's no sign of overheating, none of the breakers are double-tapped, so having two wires that come into a breaker that's not designed to handle two wires connected, 25 to 30 years is kind of an average.
For Water heaters, you're looking at more like 8 to 12 years. Next inspectors look at your sheeting, make sure that your roof seems to be doing its job. They check to make sure there are no signs of water leaks or water intrusion or anything like that. They check your framing components, all your web members, your trusses, insulation, you have some wiring usually, you've got some return ducting up here, soffit vents, all those thin are important to check. Everybody thinks of the attic as storage but it's a lot more than that.
Next, they check the crawl space. In the crawl space, they look at the drain lines, these big plastic pipes which need to aim going out of the side of the house. Inspectors want to see what the material the pipes are as well because if it's cast iron or any other type of material, its worrisome but plastic is what they like to see.
Then they look at all the framing components, the posts, beams, all the connections, floor joists, insulation, foundation, crawl space vents and then signs of bar intrusion.
At an inspection realtors don't do a whole lot, they aren't just sitting around doing nothing but the inspection is actually really meant for the buyer and for the inspector to have that one on one to figure out if there's anything majorly wrong in a house so generally the realtor is in the background out of the way. 2019-11-12T12:50:00-07:002019-12-30T14:44:25-07:00Aldo LeVaintag:levainteam.com,2012-09-20:2463How Long Does It Take to Buy a House?
One of the biggest questions and most common questions asked is, how long is it gonna take for me to buy a house? Now, the simple answer can be, oh, it's gonna take 30 to 45 days to close on your house, but that's when you find your home. So once you come under contract, it's gonna take about 30 to 45 days for you to get the keys, sign all your documents, and actually be a homeowner. Now, where the answer kinda get a little vague is how long it's gonna actually take you to find a home.
We always have to reverse engineer, and say its the middle of October, if your goal is to be inside a home before Christmas, you have 70 days or so to actually find one, so you should be looking right now because it can take you 30 days, 2 months, 6 months, even more. Because, if you're wanting a house and it's in a specific neighborhood and you have a long list of necessities that you need, well, if there's not a lot of listings that come up in those certain neighborhoods, well then it can take you longer.
A house may not be available for 2 or 3 months. Or you may not even get the house that you want when you make an offer because you're competing, so it may actually take you 2 or 3 homes. If you're looking for an investment or maybe you're looking for a condo that you wanna live in for the next five years and then move up from there, you can find the house in 30 days, even if it is a larger home.
Some people are fortunate to find their house in the first week. Some people, it takes them two or three months, even more. So it really depends on, okay, how long am I going to wait until I can finally find that perfect home? Or how long is it gonna actually take to find it? Because the longer you wait, obviously the longer the timeline's gonna be. So once you close on your house, gonna be 30 to 45 days, but depending on your patience level and how in a hurry you are to actually find your home, it could take you a week, it could take you a couple of months. 2019-11-07T12:30:00-07:002019-12-30T14:46:13-07:00Aldo LeVaintag:levainteam.com,2012-09-20:2462Paperwork, Paperwork, Paperwork
Paperwork, paperwork, paperwork. When will it stop? Today Aldo wants to bring you this video because he wants to share some expectations with you of what it's like to go through the process of buying a house when it comes to documents and paperwork that needs to be signed.
A lot of times the lenders going to need paperwork from you upfront to get a preapproval process started. Now when something gets accepted, you will then need to hand over a lot more paperwork to the lender. Not only that, but the title companies will usually send you a pretty large packet via email or through your mail so you can look over, sign, whatever it is.
Banks are getting a lot more strict now so they are requiring even more information to make sure you can borrow money. Now there may be times where you're getting paperwork sent to you one week, a couple days even before you close that you need to sign and it can be annoying and it's frustrating, and it might feel tedious, but again, you're borrowing hundreds of thousands of dollars and you're not buying a small asset, It's a large asset.
It can get frustrating, but just remember, it's all part of the process, so just have faith in the process, everything will go smoothly. So they will require a lot of documents for you to sign and especially the title company to make sure it gets recorded correctly at the Courthouse. 2019-11-07T12:18:00-07:002019-12-30T14:45:14-07:00Aldo LeVaintag:levainteam.com,2012-09-20:2460Speak With a Realtor ASAP!2019-11-07T12:02:00-07:002020-01-06T16:08:19-07:00Aldo LeVaintag:levainteam.com,2012-09-20:2459Waiting to Buy Can Cost You Money
I'm just gonna wait until home prices go down. This is one of the most common things Aldo hears from clients on a daily. I'm gonna wait until the market goes down or home prices drop. Today Aldo is going to share why waiting can cost you money and some good deals.
You want the best deal possible whether that's on your house, your interest rate, closing costs, whatever it can be, but Aldo wants to share with you some dynamics and some data that actually shows why we may not be having homes decrease 8%, 10%, or 20% like it did back in 2008.
Some factors right now are months of inventory and interest rates. Right now, we're seeing about 2, to 2.5 months of inventory for those of you who don't know. If we were to stop listing any houses right now in our market, it would take us about 2 to 2.5 months for us to run out of all of our listings. So it's pretty small compared to historical months of inventory.
Now for us to see an actual balanced market or moving more into a buyer's market from the seller's market that we in right now, we would need to be closer to 6, or even 7 months of inventory. That's more of a balanced market. Now, we don't know how long it's gonna take for us to be there. It's been about almost 4 years since we've been anywhere above 3 months of inventory, so we're moving back that way but it still can take a couple of years.
Now the second thing that is holding the market really strong right now are interest rates. About 8 months ago or so, the average house was $400k. The average interest rate was around 4.5% or 4.75%. Now, right now in the Fall, the average house has climbed up more to about $430k, $440k or so. But interest rates are now hovering between 3.75% and 3.95%. So, 8 months ago if you were to buy a house at $400k, your principal interest would've been about $1,650, so $1,650 a month.
Today, even though the prices of the homes are actually 10% more than they were, interest rates are about 1% more. So you would actually have the exact same mortgage payment of $1,650. I just want everybody to see the big picture. I wouldn't worry so much about home prices right now with interest rates being so low because you're gonna be paying less.
2019-11-07T11:51:00-07:002019-12-30T14:45:45-07:00Aldo LeVaintag:levainteam.com,2012-09-20:2458You DO NOT Need to Put 20% Down When Buying a House
Jasmine is going to talk about a misconception today about home buying and how much you should put down. Jasmin had some clients ask her about this topic and they had the thought that they needed to put 20% down when they went to buy a house. The reason they thought this was because back in the day, that's what their parents did and so that's what their parents had told them that was what they were supposed to do. However, they didn't take into account that maybe when their parents purchased a house, house prices were much, much lower than they are now and interest rates were much, much higher.
The market was just completely different than what it is today. In today's day and age, first time home buyers or home buyers in general, definitely do not need to have 20% down in order to purchase a home.
There are many loans out there that will have you purchase a home with 3-5% down. Now if you have more, that's great, but if don't, you have these options and you even have some other options depending on if you qualify to purchase a home for 0% down.
If you have been feeling discouraged about this, know that there are a lot of options and Jasmin is here to help if you need it and she can get you in touch with a lender if you want to explore all the options that could work for you. If you have any questions don't hesitate to reach out!2019-11-07T11:31:00-07:002019-12-30T14:46:34-07:00Jasmin Wordentag:levainteam.com,2012-09-20:1783What to expect at an open house!
Did you know these 3 things about an Open Houses? ??
1) The Realtor who is hosting the open house is most likely not the Listing Agent. If an agent has 5 or more homes on the market at once it's very hard to hold an open for every listing they have. That's why they lean on their brokerage to have other experience agents host it for them. Don't be alarmed if you start asking the host a lot of detailed questions about the home and they don't know the answer. The best agents will get together with the actual listing agent to get as much information as possible so this scenario doesn't occur!
2) Expect a busy Open House. There's no worse feeling when you think that no one else will be there, and you show up with 5 or more other families. Make sure that your realtor explains to you about which type of market you are in and have them prepare you for an open house and the possibility of there being 20 people looking at the home, or there could be 0. Don't be intimidated of the number of people that you come across at the open house; there is an ass for every saddle and not everyone that visits a house will want to make an offer!
3) Expect the Realtor to ask for your information before entering or leaving the Open House. Whether you are asked to "sign in" at the front door or if the host asks for your information towards the end, it's okay to leave just your name. If you want further information or would like to work with that realtor then make sure to leave your information and grab their card. But make sure to not lose it!
In this video we go into more detail to prepare you for your open house venture!
2019-05-13T16:30:00-07:002019-06-06T16:52:36-07:00Aldo LeVaintag:levainteam.com,2012-09-20:1751Inspection Expectations
So, what does an inspection report look like and what should you expect?
First off, once you are under contract on a home you should hire a licensed inspector to go through the home to see if there is anything wrong with it or if you will need future repairs. Once that is done they will email you a report with any of their findings.
Once the report is delivered, the buyer and realtor will have a chance to review it separately or together. This is where things can get a little complicated. If your realtor doesn't prepare you for what can show up on the report or let you know there is going to be quite a bit of finding, then this can scare buyers away, especially first time home buyers.
An inspection report shouldn't scare you, but it should make you aware of what is going on with the home. A good inspector will bypass a lot of the small imperfections that you could go to Home Depot and spend $200 on and do it yourself. They should be looking for any major items that can arise like the roof, appliances, water leaks, crawl space, etc.
You could either get back a report that is 20 pages long or 50. Don't let it scare you. Instead, go page by page and see what you think is the most important and urgent to have fixed or replaced by the seller. Remember, it is ultimately up to the seller if he/she will want to those fixes but they can't un-sell you the house just because you asked for a lot! 2019-04-29T13:57:00-07:002019-04-29T14:12:34-07:00Aldo LeVaintag:levainteam.com,2012-09-20:1570Whatcom County Real Estate Market Report for October 2018
Each month, we conduct an in-depth analysis of market trends to help you make the best buying/selling decisions.
Here's what we're seeing when comparing October 2018 to October 2017
Average sold home prices are WAY up. From $377,000 last year to $427,000, around a 13% increase.
2018-11-13T18:09:00-07:002018-11-13T18:20:03-07:00Aldo LeVaintag:levainteam.com,2012-09-20:1569Download our free Buyers Guide<a href="https://assets.site-static.com/userfiles/865/file/Buyers_Guide_AldoLeVain_2018_Final_HighRes_91818.pdf" target="_blank"><img src="https://assets.site-static.com/userfiles/865/image/sierra_seller_packet_cover.png" width="901" height="898" /></a>
Buying a home should not be stressful. That's why we have come up with a proven plan to get you from a house to a home!
Whether you're wanting to buy a home now, or if you're in the beginning stages click below to download our free buyer's packet to get questions answered right away.
<a href="https://assets.site-static.com/userfiles/865/file/Buyers_Guide_AldoLeVain_2018_Final_HighRes_91818.pdf">CLICK HERE TO DOWNLOAD NOW!</a>2018-11-06T17:19:00-07:002018-11-06T18:52:50-07:00Aldo LeVaintag:levainteam.com,2012-09-20:1451Misconceptions of getting a loan2018-03-01T15:40:00-07:002018-03-01T16:00:18-07:00Aldo LeVaintag:levainteam.com,2012-09-20:1440Is Getting a Home Mortgage Still Too Difficult? <img src="https://assets.site-static.com/userfiles/865/image/Getting%20A%20Home%20Mortgage.jpg" alt="Is Getting a Home Mortgage Still Too Difficult?" title="Is Getting a Home Mortgage Still Too Difficult?" height="410" width="750" />
Potential homebuyers are always cautioned to be aware of mortgage lending standards and the difficulty they might face when trying to obtain a mortgage. Credit availability is expanding, making it easier to get a mortgage now than it was a year ago. The market is still tight however, and homebuyers should be prepared to shop around until they find a lender who is offering something that will meet the needs of their family.
Mortgage lending companies have high standards so it is important to make sure you and anyone else who will be included on the mortgage have their credit in check. The mortgage market is strict because lenders do not want to be put in a situation where they are forced to repurchase loans that are not paid on. They also do not want to end up in a litigation situation due to loan issues.
What Has Happened to the Number of Mortgages?
Due to the strict nature and requirements of the lending companies, the number of mortgages given out has significantly dropped. A report by the Housing Financial Policy Center at the Urban Institute showed that about 6.3 million fewer mortgages were given out between 2009 and 2015. The reasons behind this statistic are strict regulations and policies. These mortgages would have been granted if the lending standards where more reasonable.
Mortgage companies rely on calculations to determine if a home buyer will become delinquent on their payment. They will not give you a loan if you are too much of a risk for them. Credit history has a huge impact on this decision since lenders can see how often you pay back your debts. The history they receive is extensive. This view into your financial past causes lenders to take less risk when lending to you for your mortgage.
The Effect on the Economy
The housing market is recovering at a slower pace than it should since less potential homebuyers are being offered loans. While the market is still recovering with positive trends, fewer buyers can create a strain on other economic factors like home goods or construction jobs. Bottom Line
After the housing market boom and bust, mortgage lenders became stricter in their lending standards. It is not impossible to get a mortgage loan, but it can still be difficult for potential home buyers. Stay on top of your credit and make sure you and anyone else who is applying are in a good financial position so you can be approved for a loan. It is important to research different companies and their requirements to ensure success in getting a mortgage.2018-02-14T12:22:00-07:002018-02-14T09:23:01-07:00Aldo LeVaintag:levainteam.com,2012-09-20:1438Common Things to Look Out for Before Buying Your Dream Home<img src="https://assets.site-static.com/userfiles/865/image/3%20Questions.jpg" alt="Common Things to Look Out for Before Buying Your Dream Home" title="Common Things to Look Out for Before Buying Your Dream Home" height="410" width="750" />
It is easy to become overwhelmed when you enter the home buying market. Friends, family, colleagues, and even acquaintances will give you their opinions if you are a first time home buyer. While most of them are looking out for your best interest, they are not fully aware of what is happening in the housing market.
It is important for you to be prepared and have your own questions ready. No matter what other opinions you are getting, you are the one buying the home and your comfort level will help make your final decision. Here are three important questions to ask before you purchase a home.
1. Why am I Buying a Home?
Regardless of the finances, it is important to think about what made you want to buy a home in the first place. Usually the reasons don’t have to do with money. Instead, home buyers are focused on how the house will impact their family in the future. A study done by the Joint Center for House Studies at Harvard found there are four reasons people buy a home. Those reasons include schools for your children, a safe environment, more room for your family to grow, and control of your own space.
These factors are the most common reasons people look to buy a new home. When you ask yourself why you are looking to purchase a home, do any of those factors come up? Spend time with your spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and can help your real estate agent find the best home for your needs.
2. What is the Trend with Home Values?
Our current economy and housing market is strong. That means home values and mortgage rates are increasing. If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. It is forecasted for these trends to continue in an upward motion, causing home values to continue to increase.
3. What About Current Mortgage Rates?
The ticket price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are always changing and can have a huge impact on your monthly payments. Current trends show mortgage rates are rising. This is something to consider if you are debating the right time to purchase a home, since the rates may be even higher down the road.
Bottom Line
You and your family are the only ones who can determine the right time to purchase your dream home. It is important to decide exactly why you want a new home for your family and decide on a budget that will be comfortable moving forward. This budget may affect the amount of time you have to search for a home, since home prices and mortgage rates are increasing. 2018-02-14T12:20:00-07:002018-02-14T09:21:06-07:00Aldo LeVaintag:levainteam.com,2012-09-20:1437Will Increasing Mortgage Rates Impact Home Prices? <img src="https://assets.site-static.com/userfiles/865/image/Mortgage%20Rate%20Projections.jpg" alt="Will Increasing Mortgage Rates Impact Home Prices? " title="Will Increasing Mortgage Rates Impact Home Prices? " height="410" width="750" />
There has been some discussion recently on home prices in relation to mortgage rates. Some believe if there is a rapid rise of mortgage rates, home prices should decrease. Logically it makes the most sense for the price of the house to drop when interest rates are rising, but this is not always the case.
This theory of home prices decreasing is typically discussed by future home buyers. As a buyer you would like to think if you are paying higher rates on your mortgage, you should be able to see a decrease in cost somewhere else. Unfortunately, these rates are rising because the economy is in better shape. As the economy succeeds, incomes rise, rates go up, as well as the price of the home.
A recent study by the John Burns Real Estate Consulting found mortgage rates have very little impact on the cost of the home. The housing market and price increases are affected by things like job growth in the area and rising wages. Coincidentally, these same factors are causing the rise in the mortgage rates since people can afford to take out more.
Bottom Line
As the economy progresses and strengthens, mortgage rates and home prices will fluctuate. It is a misconception as rates increase, home prices will decrease. Advances in the economy have shown that rates and home prices are more likely to increase together.2018-02-14T12:18:00-07:002018-02-14T09:20:16-07:00Aldo LeVain