Upcoming Free (& non-promotional) Home Buyer Classes:

Saturday December 3rd , from 9am-12pm (ish)
        Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)Tuesday night, December 6th , from 5pm-8pm (ish)
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

If these class dates and/or times don't work for you, please let us know.  We understand that you have lives, and families, and work.  We will work something out that works better with your schedule.  Just let us know....                                                                                  
....we also have home seller classes available too...link on left on website
                  
Remember...with reservation...we will throw in lunch, or dinner!  :-D
~~~~~~~~~
Happy Thanksgiving evening...

Another quick reminder that we have our Winter Client Appreciations coming up...  yep, plural this year!  Chris Berg and I are honored to invite you to either Disney's Moana on Saturday, 12/3 from 3pm-6pm....OR... Star Wars: Rogue One on Saturday, 12/17 from 3pm-6pm (time could change slightly for Star Wars).  While Moana is now full, there are tickets for Star Wars still.  Please let Jennifer Komp at jkomp@pcmloan.com, or Jennifer Cobb at jkcobbllc@yahoo.com, know that you would like to attend and they will send you the link to get your tickets.  :-D  Tickets are first come, first served...and no assigned seating.  Chris and I want you to know that we appreciate you!  We appreciate your trust, your friendship, and your referrals!  So...come watch a movie with us!!  :-D 

Today I touched base on Facebook this morning, and then turned off my phone... ok, it died...tomato/tomoto.  LOL  The point is, we had a 'no phone day', and it was wonderful.  I had a delicious meal with my favorite people, and it was wonderful.  :D  Tonight I turned my phone on and enjoyed all my friends and clients posts about their day.  I love those posts... I love to see people happy in their homes.  It just really gladdens my heart.  <3 So... from my circus to yours, I want to wish you a very happy, and loved Thanksgiving.  :-)

Now...to work.. this week I want to talk about bit about escrow.  We here about escrow in a couple of different instances in the real estate process.  

When a home is IN ESCROW, it means that it is pending sale.  The buyers made an offer, and the contract was accepted (or negotiated to acceptance) by the seller.  Once this happens, an earnest money check is written to the title company by the buyer. This check is deposited.  The buyers agent sends a copy of the purchase/sale contract to the title company so that, with the earnest money, the home is opened up into escrow.  The buyers agent also sends a signed around copy of the purchase/sale contract to the buyers lender so that the buyer can meet with the lender to sign the loan disclosures.  Remember that the pre-approval (while important when making an offer) doesn't mean anything until there is a signed around purchase/sale agreement.  A pre-approval is just a piece of paper....a snap shot of your current financial situation.  You need to meet with a lender to get pre-approved for a loan so that you know 1- how much home you are approved for, 2- what type of loans & programs you qualify for, and 3- which loans & programs might work best for you.   It's YOUR job to know how much home you can afford though.  Your lenders job is to pre-approve you for as much as possible, but it's your job to know how much home & payment you can afford.   Right now interest rates are very volatile, and the interest rate has gone up a 1/2 point since the election.  I know that doesn't sound like much, but that can be between $50-$70 more a month on your mortgage, and when the rates go up, how much you get pre-approved for goes down.  The interesting thing is that a lender doesn't really pre-approve you for a price range...the lender pre approves your for a monthly payment based on your credit, income and debts (this is called a debt to income ratio).  Your interest rate can not be locked until you are about 30 days from closing.  What this means to you is that you may not get the interest rate you are quoted at pre-approval since your lender can not start the actual loan process until you have a signed around purchase/sale agreement on a home.  Once the lender receives your signed around purchase/sale agreement from your agent your lender will begin to ask for more paperwork and documents.  Please get those papers to your lender as soon as you can.  We will go over what happens after your offer is accepted more next week.  
 
When the home is IN ESCROW the escrow company/title company then sends out a title report to the buyer. Look this over as some folks need to provide additional information to the title company.  Call the title company with questions as they work for you too. 

One of the things that is set up when you close on your new home is the escrow account.  What is an escrow account?

   So what is the escrow account?

   If you remember a couple of weeks ago I talked about the 4- 5 parts of a mortgage payment...Principal, Interest, Taxes, and Homeowners Insurance (and for most people; the Mortgage Insurance).  I mentioned how the title company will set up an "escrow" account for the buyer...but what is an escrow account?  An escrow account is an account set up to receive a portion of your mortgage payment for the payment of those items that don't go directly to your loan/lending institution.  So what do I mean?

Escrow...
   That portion of your mortgage that goes toward property taxes, homeowners (aka Hazard) insurance, and mortgage insurance (if you have it and most people do) will be placed into your escrow account.  This account builds up, and when your property taxes are due, those taxes will be paid from your escrow account.  Your homeowners insurance is due once a year (and if you have flood insurance this will also be part of your escrow account), and when it comes due, that payment will be made from your escrow account.  If you have a HOA, this fee may also be placed into your escrow account.  You may still receive a bill for your taxes, and insurance, but again...those bills will be paid as part of your escrow account that has built up over the year to pay for these items. 
    On the anniversary of your loan, you will get an escrow update.  While your interest never changes, and neither will your loan (unless you re-finance) your mortgage payment can change depending upon whether or not your property taxes go up, or down, and whether or not your insurance amount needs to increase as your home increases in value.  Your homeowners insurance needs to be for the amount of your homes value, so as your homes value goes up, so can your home owners insurance.  As these are part of your mortgage payment, if it goes up...so does your payment...if it goes down....so can your payment.  It usually isn't by too much though...either way.  Every year when you get your escrow account update it will let you know whether you will have enough in your payments to cover next years payments, or not.  Another example.... my escrow update came in recently and says I will be a little short for this next year.  I can either mail them in $140, and my payment will go down $3 a month, or I can do nothing and my payment will go up $5 a month.  I chose to do nothing as I always pay extra on my principal to shorten my loans length of time anyhow. Property taxes are based on the county's assessment of your homes value.  The county assesses the homes yearly, but the numbers they use for tax assessment are anywhere between 12-18 months old, so just know...your tax assessed value is NOT your market value!

   I know someone is going to ask if you have to have an escrow account, or if you can pay taxes & insurance separately?  Well, I have had clients in the past you have done that...but I wouldn't count on it nowadays.  The vast majority of people will use a FHA loan, and for any state/government loan, they will mandate the buyer have an escrow account set up to pay taxes & insurance.  However, please talk with your lender about this if you would like more information.  

**as a quick reminder...all home buying adventures should START with the Home Buyer Education Classes.    Don't talk with lenders, and agents until after the classes so you know the questions to ask, what the paperwork means, and fully understand the process.  As always though...the classes are Free and Non-Promotional.  We are not there to promote ourselves or any 'special' agenda like some classes, and while we certainly hope you will call Chris or I, or both of us, to help with your home buying adventure, that certainly isn't the main focus of the classes.  :-)  We are, both of us, as always, here to help!

 
            Information is power, and I hope that I am able to help you.  Good luck, and as always...May the odds be ever in your favor out there....  AND If you are looking for a real estate agent, I would love to be able to help you.                                                                       
 
    As always....this is just a quick overview.... again...and I can't say this enough...please remember that your agent is NOT a salesperson, and should not be acting like one.  Real Estate is not really about houses, it is about relationships.  Your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your home adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  

If you have any questions about this, or something you have heard...or if you would like me to help you with your home adventure, please call, email,  text, or facebook me anytime.  I am, as always, happy to help!
 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 .   ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Upcoming Topics: What happens after an offer is made?
Last Week:  Delayed Possession...what you need to know.

Have a great day, and I will talk to you soon,   
;-D   
Tracie DeMars   
Real Estate broker    
Re/Max - Van Mall   
360/ 903-3504 cell   
360/ 882-3600 fax   
www.traciedemars.com   
traciedemars@aol.com   
    
“Interested in free and non promotional home education classes?  Go to www.freehomebuyerclasses.com for local upcoming home buyer and home SELLER classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.”
"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."    
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

Upcoming Free (& non-promotional) Home Buyer Classes:

Saturday, November 19th, from 11am-2pm (ish
         Vancouver YMCA, conference room
         11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave)

Saturday December 3rd , from 9am-12pm (ish)
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)
​.


If these class dates and/or times don't work for you, please let us know.  We understand that you have lives, and families, and work.  We will work something out that works better with your schedule.  Just let us know....                                                                                  
....we also have home seller classes available too...link on left on website
                  
Remember...with reservation...we will throw in lunch, or dinner!  :-D
~~~~~~~~~
Happy Sunday night!

Another quick reminder that we have our Winter Client Appreciations coming up...  yep, plural this year!  Chris Berg and I are honored to invite you to either Disney's Moana on Saturday, 12/3 from 3pm-6pm....OR... Star Wars: Rogue One on Saturday, 12/17 from 3pm-6pm (time could change slightly for Star Wars).  While Moana is now full, there are tickets for Star Wars still.  Please let Jennifer Komp at jkomp@pcmloan.com, or Jennifer Cobb at jkcobbllc@yahoo.com, know that you would like to attend and they will send you the link to get your tickets.  :-D  Tickets are first come, first served...and no assigned seating.  Chris and I want you to know that we appreciate you!  We appreciate your trust, your friendship, and your referrals!  So...come watch a movie with us!!  :-D 


  What a game tonight!  Sorry...  I like football and the game with the Patriots was really good and right down to the last couple of seconds and a missed catch...  wow!  Anyhow, while the game was great...what happened last night, and into this morning....was not.  This week we are going to talk about Delayed Possession...  

  What is Delayed Possession?  Why is it important?  

  In our current market, many homeowners are selling their homes, and moving into new ones.  When a seller is living in their home, and selling it to buy a new one, they need the equity from their current home to buy the new home.  So far...so good... right?    Homeowner puts home on the market...homeowner/seller gets offer.  Now homeowner/seller has to find a new home.  Homeowner/now buyer finds a home, makes offer, and gets accepted.  Remember that homeowner/seller/now buyer can't buy new home until they sell old home, right?  Now, this part is all about timing.  Homeowner/seller/now buyer has to close on old house first, and then close on the new home afterwards.  This is called a "simultaneous closing"...meaning homeowner/seller/now buyer closes on old house on Tuesday, and using the equity from their old home, closes on new home on Wednesday...or closes on both homes on the same day.  Of course, the homeowner/seller/now buyer can not move into their new home until it closes, and they can't close on their new home until they close on their old home...so what does the homeowner/seller/now buyer do?  Why..they ask for Delayed Possession.  The homeowner/seller/now buyer requests that their buyers (for their old home) gives them time in their old home after closing so they can move into their new home.  At this point you might think that this all comes after the deal is accepted, but it's not.  The delayed possession is agreed upon when the offer is written.  

  Ok...  so we're out looking at homes... some are vacant, and many have homeowners in them.  We find the 'perfect' home, but the listing says that the seller needs time after closing to move into their new home. The seller is asking for Delayed Possession.  Maybe the seller counters your offer requesting delayed possession... either scenario is likely.  We can always ask for rentback in this situation...meaning the seller will pay you rent for them staying there...usually at an amount equal to one day of your mortgage per every day they are there.  In a multiple offer situation you might not be asking for rent back.  

  Now, you know what Delayed Possession is... let's explain it a bit further.  Once you close on your new home your home owners insurance kicks in.  The homeowner/seller/now buyer switches over to a renters insurance.  Renters insurance, as you know, only covers the contents of the home...not the home itself... that's yours since you are now the homeowner.    So what happened yesterday/today?

 I have a client who put her home on the market, she received 5 offers on her home.  Three of the offers offered my client delayed possession, and the offer she accepted gave her 14 days after closing to close and move into her new home...rent free.  This was a good thing because it actually took us 6 days after closing her home to close on her new home because her seller had not done the requested repairs from the inspection, and we refused to close until we had those receipts showing those repairs had been done.  Sometimes...this happens too.  We closed on her New home on Monday, and keys were transferred today.  Friday night my client, and her SO packed up her home, and left at 10pm.  Plan was to finish on Saturday afternoon after work, and clean the home Saturday evening/Sunday.  I received a call from her yesterday afternoon that she thinks someone broke into their old home after they left on Friday because a window was ajar, the back door was unlocked, and they found folded cardboard on the basement floor, a couple of empty beer cans, and the unwrapped remains of the children's halloween candy.  They noticed the spare keys were missing, and a couple of other small items...but all in all.... nothing else seemed to be amiss.  It was weird...and kind of funny...  someone broke in, ate all the candy (touching nothing in a full fridge or freezer), drank a couple of beers...and took a nap.  She switched out the locks though, and braced the ajar window, to be on the safe side since the spare keys were now missing.  
  Then I got a frantic call last night...  well, it wasn't so harmless after all...  this halloween candy napper had also cut the lines to the heat pump & furnace and stripped out the copper lines...about 10ft of it.   S/he also cut the the clutch out of my clients SO's motorcycle.  Now...we have an issue.... who is responsible for this?  I called the buyer/new homeowners agent to let her know what was going on, and so we could figure out who is responsible here.  You see...this is now a grey area... because while the rental agreement says that the new homeowners insurance is to take care of it, but the original purchase/sale agreement says that the home will be received by the new homeowner in the same condition as it was when they made the offer, and did the home inspection.  All systems/appliances also need to be in working order, and my client has not transferred keys yet.  

 I'll be honest with you... this could have gotten very ugly...  in the end, my client is going to either pay for the deductible, or the damage...whatever is less, but she's not happy about it.  While the new home owners, and their insurance are liable, she is still in possession of the home so it's a mixed bag.  She spent the night last night in the old home to make sure that halloween candy napper didn't come back...with her two big dogs, and a bat.  

  This is an extreme situation, and the first time in 13 years I have had something like this happen at this stage in the transaction.  Typically, with delayed possession we worry more about whether or not the home is left in a clean condition, or if the homeowner/seller is going to leave the home a mess, or trash still in the home.  I know plenty of agents, including myself, who have spent time cleaning a home after a seller left it messy.  When the home is vacant prior to closing (even if it is after signing), we can do a walk through of the vacant home...in fact, I am doing a walk through of a vacant home on Tuesday.  When the homeowner/seller isn't moving out until after closing though...there is no way to do a walk through.  95% of the time, the homeowner/seller leaves the home empty and fairly clean...but sometimes we deal with that 5% of the time when they don't.  During the home inspection period, you can request that the seller has the home professionally cleaned (and/or the carpets professionally cleaned) upon closing, and pre-paid.  Receipts are important.  Of course, if the home has bigger repair considerations during the inspection, you may want to concentrate on getting those repairs, and the receipts for those repairs.  

Anyhow, this all being said... Delayed Possession is something we are dealing with right now, and fairly frequently as more and more homeowners are selling their currents homes to move into their next home.  It's important to understand how it works, and ways that we can try to protect you.  I tell you...there's a reason why I don't drink much... I'm afraid if I start..that I won't stop some days....  
  
          Information is power, and I hope that I am able to help you.  Good luck, and as always...May the odds be ever in your favor out there....  AND If you are looking for a real estate agent, I would love to be able to help you.                                                                       
 
    As always....this is just a quick overview.... again...and I can't say this enough...please remember that your agent is NOT a salesperson, and should not be acting like one.  Real Estate is not really about houses, it is about relationships.  Your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your home adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  

If you have any questions about this, or something you have heard...or if you would like me to help you with your home adventure, please call, email,  text, or facebook me anytime.  I am, as always, happy to help!
 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 .   ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Upcoming Topics: Escrow Accounts, and what they do
Last Week:  What's in my mortgage payment?


Have a great day, and I will talk to you soon,   
;-D   
Tracie DeMars   
Real Estate broker    
Re/Max - Van Mall   
360/ 903-3504 cell   
360/ 882-3600 fax   
www.traciedemars.com   
traciedemars@aol.com   
    
“Interested in free and non promotional home education classes?  Go to www.freehomebuyerclasses.com for local upcoming home buyer and home SELLER classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.”
"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."    
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).