Real Estate Weekly: April 22, 2022

INSIDE

This Issue

SCORE MORE HOME FINANCING WITH A HIGHER CREDIT SCORE PAGE 5 THESE MORTGAGES ARE KEEPERS? PAGE 7 CLASSIFIEDS PAGE 7

APRIL 22, 2022

INSIDE

TABLE OF CONTENTS

PAGE

5

Score More Home Financing with a Higher Credit Score........................................................................P5 Q&A

Ask Our Broker.......................................................................P6

These Mortgages Are Keepers?....................P7 Classifieds............................................................................P7

RE-Weekly To advertise in RE-Weekly or other Skagit Publishing publications, Call: 360.416.2180 or Email: ads@skagitads.com ©2022 by Skagit Publishing | All rights reserved.

All real estate advertised in Real Estate Weekly is subject to the Federal Fair Housing Act, which makes it illegal to advertise “any preference, limitation, or discrimination because of race, color, religion, sex, handicap, familial status, or national origin, or intention to make any such preference, limitation or discrimination.” We will not knowingly accept any advertising which is in violation of the law. All persons are hereby informed

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April 22, 2022

STAT Real Estate Stat

-7.2%

Real Wood Real Quality

Existing-home sales fell month-over-month in all regions of the U.S. in February. Year-over-year, sales activity was up in the South, but down in the rest of the U.S.

Monday - Saturday 9:30-5:30

Dining | Bedroom | Entertainment | Home Office | Upholstery

NORTH PUGET SOUND ASSOCIATION of REALTORS®

FEATUREd PRoPERTY:

525 East College Way, Suite J

2890 SLATER RoAd, oAk HARboR

Mount Vernon, WA 98273

(360) 416-4902

222414-1

Source: National Association of Realtors

919 Riverside Dr. | Mt. Vernon www.nwff.com | 360. 424.8455

www.npsar.realtor

Skagit Tradition Realty LLC 3780 E. College Way Mount Vernon, WA 360-424-0300

Six Signs You Are Ready To Buy If you are thinking about buying, you're not alone. So are you ready to make the move? You might be if you: 1. Are familiar with the market. If you've been paying attention to how much houses are listed for in the area you’d like to live, you're in good shape.

2. Have the money for a down payment and closing costs. Generally, buyers will receive an estimate of these costs from your lender after you apply for a mortgage.

3. Know how much you can afford. Your monthly mortgage payment should be less than or equal to a percentage of your income. Also, your income, debt and credit history go into determining how much you can borrow.

4. Know what additional expenses will come with owning a home. Including homeowners insurance, utilities, and maintenance costs.

5. Have your credit in good shape and make sure your credit report is accurate. You should get a report from each of the three credit reporting companies: Equifax, Experian, and Trans Union.

6. You haven't made any recent major purchases, particularly a vehicle. If you do, you may have a harder time getting a loan, or it could potentially lower the amount you'll be approved for.

Realtor.com~Michele Dawson

$749,000

www.skagittraditionrealty.com

Carla FisCher (360) 982-0010

19+ acres of mostly level land with pasture, fencing, several smaller outbuildings and a lovely 3-bedroom home. Featuring a bonus room, hardwood floors, ceiling fan.

Warm and inviting living room has knotty pine ceiling, stone fireplace with insert, and bay window. Built-in wooden desk and storage upstairs. Primary bedroom with attached bath has linen storage and dual sink vanity. Kitchen has garden window, plenty of cabinets, double oven gas range.

Laundry/Mud room with attached half bath. Covered patio to enjoy the outdoors and your various fruit trees: apple, cherry, plum, and hazelnut; also thornless blackberry and blueberry bushes. New metal roof in 2020. Property offers plenty of space for your gardening and landscaping imagination.

MLS# 1916580

Mission Statement: The North Puget Sound Association of Realtors advocates for Realtors and their clients, and promotes the protection of property rights.

April 22, 2022

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3

Now could be the time to sell a new home and earn a slice of the real estate pie.

Record-low interest rates is renewing interest in the housing market for many people.

“When sellers are interviewing real estate agents to market their homes, their primary focus is usually on the advertising that the agent will offer them,” says Jessica Goodbody of Weichert Realtors.

Let us help you meet your marketing goals by advertising your listings in Real Estate Weekly.

Call 360.416.2180 Today!

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RealEstate weekly In print and online goskagit.com ads@skagitads.com

o M t p m t s w d n m a a

H o F a c April 22, 2022

Score More Home Financing with a Higher Credit Score

California, a FICO score, created by the Fair Isaac Corporation, is a three-digit Sports fans aren’t the only ones who value high scorers. number that is determined Mortgage lenders prioritize based on the information them, too. Only they aren’t found in your credit reports. paying attention to buckets FICO scores can range from 350 to 850; the higher your made, home runs hit, or touchdowns passed. They’re number, the more creditworthy you are considered, scrutinizing credit scores, and the less you’ll likely pay which play a big part in for financing. Your FICO determining whether or score is used by over 90% not you will qualify for a of top lenders when making mortgage loan and the rate and terms you’ll be offered if lending decisions.

“The three main credit approved. reporting agencies – EquiAccording to Freddie fax, Experian, and Trans Huynh, vice president Union – have also develof data optimization for Freedom Financial Network, oped their own credit scores from information in your a digital personal finance company in San Mateo, credit reports. Formulas

By Erik J. Martin

April 22, 2022

used by these agencies, and

by FICO, all look at similar information but are slightly different,” Huynh notes.

FICO scores vary from borrower to borrower, but, in general, are calculated based on your payment history (accounting for 35% of your score), the amount owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%).

“Your credit score helps lenders assess how much of a risk you are in terms of paying back your amount borrowed. If you are a high risk to pay back a mortgage, you’ll have a hard time finding a lender willing to let

you borrow money,” explains Andrew Lokenauth, a personal finance expert based in Tampa, Florida.

Lyle Solomon, an attorney and financial expert at Oak View Law Group in Rocklin, California, cautions that nearly 3 in 4 lenders within competitive markets ask for a credit score of at least 720 – a score you should target as a minimum goal.

You may be able to check your credit score for free through your bank or credit card. Chase, Capital One, American Express, U.S. Bank, and other financial institutions have allowed their members to access credit scores for no charge. There

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are also legit sites online that will provide your credit score for a fee.

It’s smart to gauge your score well in advance of applying for a mortgage loan.

If you learn your score is lower than desired, there are things you can do to up this number.

“First, check your three credit reports from the three major credit bureaus at regular intervals, and work to resolve any errors or inaccuracies you notice,” advises Solomon, who adds that you can access your three credit reports gratis at Annualcreditreport.com.

Additionally, work to lower your credit utilization.

“If you have high balances on your credit cards or other loans, try to pay off as much of it as possible so that your credit utilization is decreased,” Chloe Choe, owner of the personal-finance blog OffHourHustle.com, recommends.

Asking for a higher credit card limit can help with credit utilization.

“When your credit limit is increased, but your average monthly balances stay the same, your overall credit utilization will be decreased – helping to improve your credit,” says Lokenauth.

Avoid canceling credit cards, too.

“You can build credit with the length of time you hold a credit card. The average age of your existing credit accounts for 15% of your credit score. So the longer your credit card history, the better for your credit score,” Lokenauth continues.

At the same time, refrain from applying for new credit cards or excessively using your existing ones. When you apply for new credit, it can trigger a hard credit inquiry and ding your FICO score.

“Credit card offers are often very tempting, but applying for too many cards can dip your credit score. Excessive use of credit cards increases your outstanding balance, which in turn increases your credit utilization ratio,” cautions Solomon.

Of course, a surefire way to boost your credit long-term is to pay your debt balances in full and on time. Setting up automatic payments can go a long way toward achieving this goal.

5

Q&A

FHA Mortgages and Flipping Deals Question:

I’d like to buy and quickly sell a property while financing the transactions with FHA mortgages. My broker says such flipping deals are difficult—if not impossible. Why is that?

Answer:

FHA-insured financing is designed to help firsttime and entry-level buyers finance the purchase of a prime residence.

The FHA is not actually a lender, instead, it insures loans originated by mortgage lenders. A qualified borrower with an FHA-insured loan and a credit score above 580 can finance with just 3.5% down.

FHA mortgages are generally off-limits to investors, but there are exceptions. For instance, if you buy a four-unit property and live in one of the units as a prime residence, then FHA-backed loans may be available.

The FHA also has occupancy requirements. In general, you must move into the property within 60 days of closing and the occupancy must continue for at least a year.

On the other side of the transaction, the FHA restricts the ability of buyers to purchase flipped

6

ASK OUR BROKER

By Peter G. Miller

properties.

First, an FHA mortgage cannot be used to purchase a property that was bought by the seller within the past 90 days.

Second, if the sale date is between 91 and 180 days after being acquired by the seller, the lender must have two appraisals, each done by a separate appraiser.

Third, there must also be two appraisals if the resale price is 100 percent or more over the seller’s purchase price.

There are exceptions to the time-restriction rules. Most apply to government sales and sales by nonprofits, but one that can be important to individual sellers is that the time rules do not apply when a property has been acquired by inheritance.

Let’s say that the FHA anti-flipping rules did not exist. FHA financing would still be a poor choice for short-term investors.

The FHA provides mortgage insurance. For that insurance, it charges two types of premiums.

There’s an upfront mortgage insurance premium (the upfront MIP) equal to 1.75% of the mortgage amount. There’s also an annual mortgage insurance premium (the annual MIP) equal to .85% of the loan

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amount.

The upfront MIP can be added to the loan amount and paid off over the loan term. However, for a flipper, that’s a big cost for a loan that might be outstanding for just a few months.

As an alternative to FHA-backed loans, look for other financing options. Can you buy with cash from savings? In addition to the purchase cost, do you have the funds to make repairs and hold the property until it’s sold? Are you willing to buy with others, say friends and family who can contribute capital?

Are you willing to finance with private lenders, companies that may require 30% down for shortterm borrowing, as well as other charges?

Be aware that non-FHA programs can also have anti-flipping rules. The reason is that such transactions involve far more risk than the typical home purchase.

Before signing anything, before borrowing a dime, speak with real estate brokers and lenders. Get advice from an attorney and other professionals. And, as always, remember that with any investment, there’s always some risk.

Email your real estate questions to Mr. Miller at peter@ctwfeatures.com.

April 22, 2022

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CLASSIFIEDS RENTALS Houses for Rent -Unfurnished SEDRO-WOOLLEY Newer 3 bedroom, 2 bath, available May, $1700 month. Background/credit.

Reply by text message to 360-630-4183

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These Mortgages Are Keepers?

By Marilyn Kennedy Melia We may not hold many fond memories from the last couple of pandemic-ridden years, except for one notable exception: the record low mortgage rates. With the Federal Reserve beginning to steadily drop rates in 2020 that yearsaw an average rate of 3.11 percent on a 30-year fixed rate mortgage, and rates dipped further to their lowest level in January 2021 at 2.68.

From 2010 to 2020, rates were relatively low in comparison to previous decades, but the upper-three percent to five percent seen then are no match for the pandemic lows.

Traditionally, many homeowners like to pay-off their mortgage early, especially if retirement is on the horizon. But the psychological April 22, 2022

benefit and freed up monthly cash from being mortgage-free won’t hold as much appeal for the millions of homeowners who purchased or refinanced at 2020-2021 rates, say financial planners. Consider: Chances are investments can yield more than your mortgage rate.

“For those homeowners with long-term investment horizons, it is likely that long-term returns in equity markets will be greater than around three percent after inflation,” explains Ajay Kaisth, financial planner in Princeton Jct., NJ. “Since mortgage debt is fixed and determinable,” adds Baltimore financial planner Elliot Pepper, homeowners may fairly easily find investment above that mortgage rate threshold.

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Your tolerance for uncertainty counts.

Although owners are likely to earn more from investing cash instead of deploying it to pay down mortgage, investment returns likely aren’t certain, Pepper points out, and some homeowners will still want to pay off mortgage.

“Be thoughtful and rational, Pepper advises, “but remember sleeping at night cannot be discounted.”

Tax-deductibility on mortgage interest is no longer a factor for many.

Mortgage interest is often thought of as taxdeductible, which effectively would lower a three percent or so mortgage even lower.

But since tax law changes increased the standard deduction, many homeowners not longer itemize their annual interest charges. If you do 7

511 ShaDy lanE #40, Mount VErnon

$449,000 Lovely 2 bedroom & 2 bath in Stonebridge Active Adult Community. Condo with vaulted ceiling, living room with gas fireplace almost new hardwood floors, sliding door to covered patio. Kitchen with walk-in pantry/storage. Master suite with walk-in closet and bath with easy step in shower; guest room and full bath. Full size utility room with a deep sink, and no steps to large garage. Stonebridge offers RV storage, clubhouse and walking trails. Live maintenance free, HOA including siding, paint, roof, lawn care & irrigations. Located in quiet cul-de-sac, close to medical and shopping.

Elva Hunter MLS#1912351 (360) 202-3086

547 CrEStED ButtE BlVD, Mount VErnon

21290 lafayEttE rD, SEDro-WoollEy Shy 20 acres of farmland with deluxe triple-wide 2150 sq.ft. manufactured home. Portion of acreage is leased year to year to local farmer (about $4500 per year). Acreage offers Pole barn/garage w/attached carport and separate large shop. There is garden space and fruit trees, several smaller outbuildings, including starter greenhouse and deck. The home offers a large kitchen with island, pantry, and nook with bay window overlooking farmland. High ceilings and open feel to this floor plan. Free standing wood stove supplements forced air heat. Primary bedroom has walk-in closet and private bath. There are two more bedrooms, a den, and another full bath to complete this home. Lots of parking for you and your guests.

MLS#1905659

Three bedroom plus den and loft space on this corner lot in the Skagit Highlands.

Open concept main floor, kitchen has eating bar with pendant lighting, and matching black appliances. Laundry conveniently located at upstairs loft area.

Single car garage access thru alley. Community features trails, playground areas, basketball court, & parks. Easy access to local amenities and I-5.

MLS#1906699

Carla Fischer

1413 E CollEgE Way, Mount VErnon

JoAnn Boudreau (360) 391-0746

Juanita Bunch (360) 941-5530

Patricia Box Buyers agent

(360) 941-9186

LaConner Rotary Tulip Sales Available daily through the month of April, only $6.00 per bunch In LaConner and at Shawn O’Donnell’s Farmhouse Restaurant and at our office.

$5,200/Mo Still time to choose your interior colors. We use Behr brand paint, please visit behr.com/onecoatneutrals, to select your color. 3200 sq. feet, 9 offices/conference rooms, work area; lunch room; reception/waiting area; natural gas forced air heating; air conditioning; 3 restrooms; new flooring. Plus bonus stand alone building w/3 additional offices. Landlord pays property taxes and building insurance.

$600,000

Prime commercial property with utilities in street, including P.U.D. water, Puget Sound Energy electricity; Cascade Natural Gas, fiber optics; cable; and sewer. SubjectTo survey and short plat. Property is located between Chicago Title Company easterly parking lot and Max Dale Restaurant’s south easterly parking Danya Wolf area. MLS# 1649968 (360) 708-8294

Please visit the Kiwanis Salmon BBQ at Hillcrest Park, Fridays, Saturdays and Sundays, 11:30 am to 7:00 pm, now thru May 1st.

“It’s about the Kids!”

Danya Wolf

EXtErior paint CoMplEtE

Patricia Box Office Manager O: (360) 424-0300 C: (360) 941-9186

Carla Fischer

(360) 982-0100

2XXX urBan aVEnuE, Mount VErnon

NEW PRICE!! $475,000

(360) 982-0100

$595,000

(360) 708-8294

Carla Fischer (360) 982-0010

Elva Hunter (360) 202-3086

John Hunter (360) 202-3086

Suzanne Jenkins (360) 941-2983

360.424.0300

Phil LaMay (360) 840-3086

Russ Lanker (360) 708-1117

Brett Tacker (360) 840-7931

Danya Wolf Designated Broker/ Owner (360) 708-8294

3780 E. College Way, Mount Vernon www.skagittraditionrealty.com 214419-1

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April 22, 2022