YO U R R E A L E S TAT E PA R T N E R S These team members will work together to make sure your real estate transaction progresses as expected and the home becomes yours!
BROKER
LENDER
TITLE
My job is to educate you on the process for buying a home, show you the homes that meet your needs, write a competitive offer, negotiate on your behalf, and make sure we meet all the deadlines outlined in the contract.
The lender will work with you to determine your home-buying budget, then will work with you to make sure they have the documentation they need to execute that loan on your behalf.
Title will run a history on your home to make sure there are no issues with ownership so the home will be all yours. In addition, they will identify any documents or easements that may come with your property.
INSPECTOR
APPRAISER
ESCROW
Once your offer is accepted, the inspector will inspect the property for defects. Every home has defects, but our job will be to determine what we want to negotiate with the seller to fix before the home closes.
The appraiser will review the property to make sure you are paying market price for it. This protects both you and the bank!
Escrow coordinates all the paperwork, creates the final set of documents to sign by both parties, coordinates the transfer of money between buyer and seller, and makes sure the property closes in a timely manner.
Thank You
I recognize that purchasing a home is one of the most important decisions you will ever make. Therefore, I treat our relationship with the utmost care and respect.
HOMEBUYING OPTIONS Making the Move with Ease
I look forward to working with you in the near future and feel certain that you will be happy with my services!
15418 Main Street #302 Mill Creek, WA 98012 E | nina@ninabjornstal.com
Nina Bjornstal, REALTOR C | 206-730-0962 E | nina@ninabjornstal.com
TYPES OF HOUSING
T Y P E S O F L OA N S
CONDO
TOWNHOME
HOME
DUPLEX
Condos require little to no outdoor maintenance which will save time and money. There is a sense of security in a building, especially those with a lobby. There may be rules regarding what you can have on your deck or outside your door. Association dues to maintain the building need to be budgeted for. In some buildings, only one parking spot is allocated per unit. Condos generally cost less and appreciate slower than stand-alone homes.
Although each development is different, townhomes generally have more outdoor space than condos with some yard and perhaps a garage. Many townhomes have a central association with rules regarding what can be done with the outside space. Some have shared maintenance costs and/or requirements including landscaping and paint color restrictions. Parking availability needs to be investigated.
A stand-alone home may have the space and yard that you want. Although you have much more flexibility in customizing a stand-alone home, properties which are located in a homeowners association may still have rules that must be adhered to regarding paint color, landscaping, etc. Budget for home maintenance (about 1% per year) for dealing with things such as roof, furnace, hot water heater, etc.
In some areas, duplexes may be an option to consider. Live in part of the home and rent out the other. Duplexes are generally more-expensive and valued higher due to the income potential, but offsetting a portion of one’s mortgage payment with rental income is appealing! Ongoing maintenance may be higher because you would own not just one, but two water heaters, furnaces, etc and you would need to determine if you wanted to be a landlord.
L O C AT I O N S URBAN
SUBURBAN
RURAL
Restaurants just steps from your front door, city energy at all times and everything seems to be a few minutes away! Often, public transportation may be an alternative from having to drive to work and for fun. Parking availability, having others in close proximity, and noise tolerance need to be considered before making a city center home.
Get a few minutes - or many minutes away from the city core and enjoy a slower pace of life. Perhaps you long for your own home with a yard and quiet streets. Considerations include commuting time and distance to not only your job but also services. In areas that are up-and-coming, getting a sense of what the area will look like as it gets developed is important.
You may long for a lot of space; you can’t see your neighbors with a winding driveway to guide the way home. Make sure you factor in commute times and determine how your acreage will be maintained. In addition, in case of a storm, can you fend without power for longer than you would in-town and are you handy with a chainsaw?
C O N V E N T I O N A L L OA N S F I XE D RAT E LOA NS
AD JU S TAB L E R AT E LOA N S
Fixed rate loans include a fixed interest rate for the entire term of the loan and come in any term wanted with different rates for 15, 20, and 30 years.
Also known as ARM’s these loans can start out at rates that are fixed for a set number of years and then the lender can change the rate based on where current interest rates are.
Advantage of the Fixed Rate Loan: “Security Blanket.” Payments for principal and interest will not change regardless of the market’s interest rate.
Advantage of the Adjustable Loan: If you plan on transferring or selling your home within the next one to seven years an ARM or Balloon Mortgage could save you money.
N O N - C O N V E N T I O N A L L OA N S VA
These are managed by the Department of Veteran Affairs and are reserved for military service members. The benefit of a VA loan is it does not require a down payment. If you are a military service member, I can help you find a property and can point you in the right direction to begin the application process.
FHA
The three benefits of this loan are the low down payment (currently 3.5%), lower credit score requirements, and additional monies to fix the home up can be included in the loan amount. Buyers who want to take advantage of an FHA loan first need to find an FHA-approved lender (I have a list of lenders I can provide you).
USDA
These loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. Area income limits and geographical limits apply.
T H E P OW E R O F I N T E R E S T Mortgage interest, or the amount you pay the bank for taking out a loan, varies from day to day and week to week. Depending on your loan amount, a change in as little as 0.5% can result in tens of thousands more paid over the life of the loan. In the chart to the right, you can check the anticipated amount of your loan and the interest rate you expect to pay to check your combined principal and interest payment per month.
Loan Amount
4.50%
5.00%
5.50%
6.00%
6.50%
7.00%
$300,000
$1,520
$1,610
$1,703
$1,799
$1,896
$1,996
$400,000
$2,027
$2,147
$2,271
$2,398
$2,528
$2,661
$500,000
$2,533
$2,684
$2,839
$2,998
$3,160
$3,327
$600,000
$3,040
$3,221
$3,407
$3,597
$3,792
$3,992
$700,000
$3,547
$3,758
$3,975
$4,197
$4,424
$4,657
$800,000
$4,053
$4,295
$4,542
$4,796
$5,057
$5,322
The chart shows fixed mortgage rate repayment. Work with your lender to learn about your repayment plan and all the costs involved with your options.
H O U S I N G A M E N I T I E S A N D C O N S I D E R AT I O N S S Q UA R E F O O TAG E
BEDROOMS
BATHROOMS
KITCHEN NEEDS
LOT SIZE
FLOORPLAN