***if
you know anyone who is thinking about buying a home, our next classes
are:
 
 
 
 
 
 
Saturday, January 5, 2013, from 9am-12pm at the Vancouver YMCA located at 11324 NE 51st
Circle (corner of SR-500 & 112th/Gher Road). 
 
Thursday, January 10, 2013, from 5pm-8pm, at the Marshall Center, conference room at 1009 E. McLoughlin Blvd. (kitty corner from Clark  College
 
 
Remember....with reservation...we will throw in lunch, or dinner!  :-) ...we also have other class dates/times...check out the
website
  
  Please go to www.learningtobuyahome.com, or www.traciedemars.com for information on ALL upcoming Free Community Home Buyer Classes.  I do keep all updated information, and directions there... I would love to hear from you about when you might like to see the classes.  These classes are for you, so please, I love your comments and feedback!!  :-) ***



Happy Sunday~
 

Happy New Year to you, and yours!  This time of year always makes me a bit melancholy as I reflect on the past year.  I try to concentrate on the good things that have happened, but yes, I need to acknowledge the bad things as well so that I can analyze what happened and how I can change it.  I like to turn bad things into positive things....it is so much easier to be positive than negative...agree?  :-)  2012, was a year of extremes.   For my family the good was very good, but the bad things were very bad, and seemed to linger, and linger, and linger some more.  I am hoping for a bit more balance in 2013, and that we all get along and play nice in the sandbox...
   
So, again I am going to go off topic...but I promise to get back on topic next week!   :-)   I would like to look at the year and review...
   
The real estate market for 2012, at least in our local Clark County area, has been HOT!  I am so excited with how many keys I have been able to hand out this year, and even more excited to have helped so many hard working, and deserving families achieve home ownership.  Truly, it has been a pleasure, and a privilege to be a part of your lives.  :-D    That is the wonderful...and now the not-so-wonderful...  Because the market has increased with so many buyers our inventory of available homes has decreased from this time last year, and with the low supply, and the high demand of buyers, the prices have risen quite a bit.  Last year about this time I was able to find 3 bedroom, 2 bath homes around $150,000ish...easily.....now?  Not so much.  The same homes that I was assisting folks with last year are now about $175,000ish.  However, interest rates are lower right now than they were last year...so it kind of balances.  The hardest thing we are dealing with is the lack of inventory.  I am just telling clients to be patient....if it isn't the home for you, then just hang in there....the right home will come up when you are ready for it.  :-)
 

Now  more than ever before, you need to have your ducks in a row.  
 

 
• 
  With
  the ever changing real estate and lending rules, get your education and take one
  of the free home buyer education classes.   The point of these classes
  is to de-mystify the home buying and loan process, and to help you get ready if
  you are not ready already.  Too often we see folks who want to buy a home NOW,
  but aren't ready to do so...and they had no idea that they were doing anything
  'wrong'. 


• 
   
  You MUST have a legitimate pre-approval before you start the home buying
  adventure.  With the limited supply, and the many buyers out there, no
  seller will even consider your offer unless you have spoken with a lender and
  have taken those formal steps to the pre-approval.  For sellers, and banks it is
  all about RISK.... how much of a risk are you?  We want the sellers to want to
  sell to you over another offer.


• 
  You
  must be prepared to maintain that pre-approval...remember that the last
  step of the home buying process is the underwriters refreshing your pre-approval
  by updating all your information, and yes, this includes, credit reports, bank
  statements, paycheck stubs, etc before they can order docs and before you can
  close. Any changes you make in your lifestyle between the pre-approval and
  closing can prevent you from closing and getting keys. 


• 
  Keep
  an open line of communication with your Lender and your Real Estate
  Agent.  I can't tell you how many times people don't tell us something
  thinking we will never find out so it doesn't matter.  From the time you get
  pre-approved to the time you get keys you live in a fish bowel.  You may think
  we won't know, or find out, but we ALWAYS do.  We truly WANT to help you get
  keys (remember, we don't get paid unless you get those keys) so let us know what
  is going on.  We will help you with things that come up, but if we don't
  know...we can't, and yes, things you don't tell us can prevent you from getting
  those keys. 


• You need to have some money put away for those fees that are a part
  of buying a home, like, earnest money, home inspection, and appraisal. 
  The total of these fees runs a little under $2000.  Don't spend this money, and
  don't spend your downpayment....you're going to need it!


• You must feel comfortable asking questions....even if you
  are afraid of the answers, or feel that the question is 'silly'. We do this
  every day....you don't....NO question is ever 'silly'!  This kind of goes with
  the open line of communication....


• You MUST want what you can afford.  Yes, this sounds silly,
  but often I run into someone who wants a home at last years prices because a
  friend bought there.  I am so sorry....that was LAST year, not THIS year. 
  No...we don't see prices going down.  Last year was the bottom, and home prices
  have been going steadily up since the beginning of 2012. Again, I am sorry, but
  if you want what you can't afford then you have two choices...you can adjust
  your home expectations, or adjust your price range.  Please remember that this
  is your FIRST home, and not your last.


• KNOW what  you want in a home.  What are the top 3 things
  you want in your home?  Are these things in your price range?  Are you prepared
  to change what you want, or change your price range?  Spend some time on the
  rmls.com and check out homes.  Check out prices in your price range, and the
  price range of the home of your expectations.  Do they match?  DON'T look at
  short sale homes unless you are prepared for the wait that comes with it, and
  the gamble of a 10% close (see previous blog entries about short sales, or call
  me for questions)


• Be prepared for the roller coaster ride of the home buying
  adventure.  This is tongue-in-cheek advice, but really there are 4 big
  events in a persons life....and they are all stressful.  Buying a home ranks
  right up there with getting married, having a baby, and loss of a family member
  and/or divorce.  Buying a home has very fun, and wonderful moments and it has
  those moments where you are pulling your hair out, screaming in frustration, and
  wondering why you even wanted to do this to yourself!  All I can say is, be
  prepared....


• Pay your Bills on TIME!  33% of your credit score is paying
  your bills on time!  I can't stress this enough....


• DON'T buy anything for your new home until you have keys
  for that home in hand.  This is another one of those things that we see folks do
  all the time, and it was on Sale!  However, I don't care how good that sale
  was...is it worth losing your home?  Don't use your credit cards, and don't buy
  things for your new home until you HAVE the new home.

In 2012, a lot of my blog entries were in reaction to questions by readers, class attendees, and by clients going through issues when buying their homes.  I appreciate everyone who reads this, and passes it on to your friends, family, and co-workers.  appreciate your comments and questions, and as always, if I don't have the answer then I will help you find it.  I have had
some wonderful clients, and some learning experiences, but as always, my faith remains strong that everyone deserves a home to call their own.  With your assistance, Chris Berg and I truly want to help you get there.
 
  I have faith that 2013, will be even better as interest rates remain low.  Many homeowners who were hesitant about selling their homes are starting to feel more confident about doing so and that will help the inventory.  As we come into the early months of 2013, more banks will release bank owned foreclosures from their inventory to be sold.  The real estate market is getting healthier by the month, and really, that helps all of us in the long run economically.  2013, is going to be wonderful for all us, and hopefully, more balanced! 

From my family to yours, Happy New Year!  We wish you nothing but the best in the coming year and looking forward to helping you with any of your questions, and with your home buying adventure!
 
  
Please call, email, text, or even facebook me (at Tracie DeMars Real Estate) anytime with any questions, or if there is anything I can do to assist you with your home buying adventure! As your buyers agent, I am, as always, here to help!!
:-D
   
Thank you again for your business and for your referrals!
 
...as always...if you have already purchased a home, or no longer would like to receive these emails
from me, please let me know and I will be happy to remove you from receiving any more.

Thank you again for attending the home buyer education classes, and I hope that you will continue to refer the classes out to
your friends, family, and co-workers. Upcoming class dates and times are located at www.freehomebuyerclasses.com. Just click on the link on the left hand side. Or you can go to www.learningtobuyahome.com and click the links.


We appreciate your  referrals and word of mouth! Also, if you have somewhere that we can place the flyers at, please let me know....
:-D
 
 
Next Week:    Tax Benefits of Mortgage...explained
(coming up - Credit....explained,  Inspections...explained & Mortgage
Insurance....explained)
Last Week:  escrow....explained


Remember that you can always go to 'Tracie DeMars Real Estate' on Facebook for all of my weekly blogs and upcoming
class dates/times/locations. I  post the weekly blogs on there as well.  
 
 
Have a great day, and I will talk to you soon,
;-D
Tracie DeMars
Buyer's Agent
Re/Max - Van Mall
360/ 903-3504 cell
360/ 882-3600 fax
www.traciedemars.com

find me on
LinkedIn
traciedemars@aol.com
  
“Interested in free and non promotional home buyer classes? Go to www.freehomebuyerclasses.com or www.learningtobuyahome.com for  local upcoming classes, or facebook: Tracie DeMars Real Estate.”



*****Remember that if you are interested I can, and will be happy to, set you up on an email that will automatically email
you with new home listings in your area and price range as they come up on the market. This email will include all bank owned homes and anything with price changes. Just send me what you are hoping to find, your top 3 things in a home, and what is the best email to send it to. This is with no obligation, and is a good way to 'window shop'.
:-)

***if you know anyone who is thinking about buying a home, our next classes are
 
 
 
 
 
   Saturday, January 5, 2013, from 9am-12pm at the Vancouver YMCA located at 11324 NE 51st Circle (corner of SR-500 & 112th/Gher Road).

Thursday, January 10, 2013, from 5pm-8pm, at the Marshall Center, conference room at 1009 E. McLoughlin Blvd. (kitty corner from Clark College)
  
Remember....with reservation...we will throw in lunch, or dinner!  :-) ...we also have other class dates/times...check out the
website
 
  Please go to www.learningtobuyahome.com, or www.traciedemars.com for information on ALL upcoming Free Community Home Buyer Classes.  I do keep all updated information, and directions there... I would love to hear from you about when you might like to see the classes.  These classes are for you, so please, I love your comments and feedback!!  :-) ***
 
Happy Sunday~
 
Here we are....one week closer to Christmas.  Are you done shopping?  Here is my confession...I haven't even started!  :-)  Yep, there is the truth of it.  Of course, it is difficult to want to go shopping right now with all that has happened this week.  Sometimes I wonder if the world hasn't gone crazy....or is it that we just hear more about it these days with the news coverage?  I do admit to holding my family a bit tighter this week....
   
I have had a few folks request shorter blog entries, so in case you haven't noticed, I have been trying to break the information down in more digestible pieces.  :-)  As promised the a couple of weeks ago, we will talk more about the second part of mortgage payments, and how mortgage payments are paid.  Next week we will talk about your escrow account.   
  
So let's break down mortgage vs rent.....
         When you pay your January rent, you pay to live there for the month of January...from the 1st to the 31st.  When I pay my January mortgage, I was actually paying for the month of December.  Nope...not kidding, I really am, and you're like, "what? how?"  :-)  Well, rent is paid ahead of time, but for mortgage, you can't be charged for what you haven't accrued, so when you pay your mortgage, you are actually paying for the month just past.  Mortgage is technically due on the first, but it isn't considered late until the 15th of the month, and which point you will be charged a late fee which is usually about 5% of your monthly payment.  Did you know that if you pay your mortgage at the 1st of the month though you are actually paying the most in interest?  I was told this from someone I know who works at a bank....that 'supposedly' if you pay at the the last day of the month (for example: on December 31st for January) then you are actually paying the most in principal, and the least in interest that you can in your regular payment.  Interesting... 

    So... why do you need to know this at closing?  This is important knowledge when you are writing up an offer because it has to do with how much your closing costs are going to be.  Some examples....
     If you were to close on your new home on March 25th, then you will be paying for 6 days of interest as part of your closing costs for the rest of March, and your first payment is due May 1st for the month of April.
       If you were to close on your home March 10th, then you will be paying for 21 days of interest as part of your closing costs for the rest of March, but your first payment is due (still) May 1st for the month of April.  Does that make sense? 

       If you close ANY day in March...whether the 1st or the 31st....your first mortgage payment is due May 1st.  If you close earlier in the month then your closing costs/downpayment may be a bit higher as you are including that months interest as part of that downpayment....but your first payment is further away.  Some people like this as it gives time to put a bit of money aside for savings. 
  
    If you close later in the month, you have less to pay for interest as part of your closing costs/downpayment, but your mortgage payment will be due sooner.  Some people like this because it is just going from one rent payment, to your first mortgage payment, and it is a smooth transition.
 
      Whether you choose to close sooner, or later, is up to you, and it is good to talk with your lender about how much that additional interest may cost you in your closing costs/downpayment.  Usually when doing your paperwork, and your pre-approval, your lender will figure your fees based on as if you are closing on the 15th since...number wise...that is a safe bet and won't affect you too much either way if you close at the beginning, or at the end. 
    When writing up an offer this is always something I spend some time on when talking about when you might like to close as it isn't something that people realize....and no one ever explains it.  If you have any questions about this, please call or email me and I will be glad to help!! 
   
You can always go to my Facebook page at:  Tracie DeMars Real Estate, or to any of my other blog pages for all of my home buyer education blogs.  I want to help you understand how the process works....  :-)

I hope all of this helps you understand how your mortgage works!  Call, email, text, or even facebook me if you have any questions!  That is what I am here for as your buyer's agent!
   
Please call, email, text, or even facebook me (at Tracie DeMars Real Estate) anytime with any questions, or if there is anything I can do to assist you with your home buying adventure! As your buyers agent, I am, as always, here to help!!
:-D
   
Thank you again for your business and for your referrals!
 
...as always...if you have already purchased a home, or no longer would like to receive these emails
from me, please let me know and I will be happy to remove you from receiving any more.

Thank you again for attending the home buyer education classes, and I hope that you will continue to refer the classes out to
your friends, family, and co-workers. Upcoming class dates and times are located at www.freehomebuyerclasses.com. Just click on the link on the left hand side. Or you can go to www.learningtobuyahome.com and click the links.
 
We appreciate your referrals and word of mouth! Also, if you have somewhere that we can place the
flyers at, please let me know....
:-D
 
  
Next Week:    Escrow ...explained (coming up - Inspections...explained & Mortgage Insurance....explained)
Last Week:  Pre-approvals....explained


Remember that you can always go to 'Tracie DeMars Real Estate' on Facebook for all of my weekly blogs and upcoming
class dates/times/locations. I post the weekly blogs on there as
well. 

Have a great day, and I will talk to you soon,
;-D
Tracie DeMars
Buyer's Agent
Re/Max - Van Mall
360/ 903-3504 cell
360/ 882-3600 fax
www.traciedemars.com

find me on  LinkedIn
traciedemars@aol.com



“Interested in free and non promotional home buyer classes? Go to www.freehomebuyerclasses.com or www.learningtobuyahome.com for local upcoming classes, or facebook: Tracie DeMars Real Estate.”



*****Remember that if you are interested I can, and will be happy to, set you up on an email that will automatically email
you with new home listings in your area and price range as they come up on the market. This email will include all bank owned homes and anything with price changes. Just send me what you are hoping to find, your top 3 things in a home,
and what is the best email to send it to. This is with no obligation, and is a good way to 'window shop'.
:-)

***if you know anyone who is thinking about buying a
home, our next classes are:






 

Monday, December 10, 2012, from 5pm-8pm, at the Marshall Center, conference room at 1009 E. McLoughlin Blvd. (kitty corner from Clark College)
  
Saturday, December 15, 2012, from 1pm-4pm at the Vancouver YMCA located at 11324 NE 51st Circle (corner of SR-500 &
112th/Gher Road).
 
See ya in 2013!
 
Remember....with reservation...we will throw in lunch, or dinner!  :-) ...we also have other class dates/times...check out the website
 
   Please go to www.learningtobuyahome.com, or www.traciedemars.com for information on ALL upcoming Free Community Home Buyer Classes.  I do keep all updated information, and directions there... I would love to hear from you about when you might like to see the classes.  These classes are for you, so please, I love your comments and feedback!!  :-) ***
  
Happy Sunday~
  
   Ok....Happy Monday morning!  Sorry for the delay as I just got home from a family vacation late Saturday night and slept most of Sunday away as we were beat.  ;-)  Luckily we deep clean the house BEFORE we leave for vacation so we don't feel bad for
sleeping and relaxing the day we get home.  I know...weird, but when we go on vacation we don't relax.  For some reason we can't just lay around and relax; we like to go run around and check things out.  Did I mention we went to Disneyland for our 3 year olds birthday?  Now you understand why we are so tired!  Our 16 year old son got that nasty cold right as we got to Disneyland, but trooped through it because well....we were there and it is Disneyland.  Poor thing had to go back to the hotel and take naps with the 3 year old!  :-)  Thank goodness I overpack and brought cold meds with me....just in case!  
   
    So, while I was gone I had all sorts of things happen at work.  Chris is such a great guy that he tried to take care of everything with my managing broker while I was gone so I could have a family vacation as it was our first one in three years, and we had saved up for it. One of the things that did came up was a misunderstanding about what a pre-approval means, so let's go there today. 
:-)
   
What is a Pre-Approval?  What does it take to get one?  How long does it take to get one?
       A pre-approval from a lender is a snapshot of your current financial situation....DON'T change it once you get your pre-approval without discussing any changes with your lender first.  Even paying off, and closing a credit card can negatively affect your credit.  Weird....I know!  A pre-approval will require the lender to have copies of your W-2's for the past couple of years, 3 months of bank statements, 1-2 months of pay stubs, and of course, the lender will pull your credit.  It can take about a week (on average) for a pre-approval from a lender. 
   
Some other 'pre-approval don'ts'....
Don't cut your work hours as your pre-approval is based on the number of hours you have been working. Cutting your work hours can lose you your pre-approval and financing...and so can working too many hours if you are using a special loan program like the downpayment loan program.
Don't pay your bills late!  I know this sounds like common sense, but 33% of your credit score is based on paying your bills on
time.  By being late on your bills you can lower your credit score.
Don't miss a payment!  Again, common sense, but if you miss a payment...even a small one for say, $25 you will lose your
pre-approval as it will really hurt your credit score.
Don't assume because you have a pre-approval that checked all your information that your lender won't know if you do any of the above.  When your file goes to the underwriter they will want an updated copy of your bank statements, your current paycheck stubs, and yes, an updated copy of your credit score.  
    
    Remember that when getting a pre-approval that the lender is actually pre-approving you for a monthly payment and not for the actual dollar amount of the home purchase.  WHAT?!  Yeah...it is true.  The way it works with pre-approvals is that the lender looks at your income, and the takes away your known debts like car payments, credit cards, etc, and this is your debt to income ratio.  Each loan looks at a different percentage of debt to income ratio for your pre-approval.  The lender then adds in an average for your home insurance and your taxes since this has to be added into your payment...and then your lender has to look at current interest rates.  Most lenders will base your pre-approval on a higher interest rate since your interest rate can't be locked until you have a signed around purchase/sale (an offer that is mutually accepted by the person with the legal authority to sell the home.) 

   Be aware that your pre-approval amount can change over time depending on interest rate fluctuation, property tax fluctuation, and more.  A pre-approval is only good for 90 days and then must be updated if you haven't already found a home.  When in the process of buying a home, at the time your file goes to underwriting, the underwriters will still want to update everything.
 
    As a home buyer you need to be aware of your budget, and the debts that are not part of that pre-approval process.  We all have lives, and you want to enjoy yours...not be house poor....or to not have enough money left over at the end of the month to do those things that you want for fun, or for the home.  
  
Why is the pre-approval so important before you start looking at homes?
    A pre-approval with a lender is important to both you and your agent for a couple of reasons.  For the buyer the pre-approval is important as it helps you to know what you can comfortably afford, and what types of loans what might work best for your family.  You don't go grocery shopping without knowing how much money you have in the bank, you should never go home shopping without knowing how much payment and home you can comfortably afford.  Your home payment is much more than your mortgage....A mortgage payment will include your principal on your loan, your interest, your property taxes, and your home insurance....this is what's known as a PITI payment.  (Principal, Interest, Taxes, and Insurance).  See last week's blog for more information on that.
 
    For your agent having a pre-approval already is important because your buyer's agent wants to show you homes that you will love, and that you can afford.  We don't want to show you a home that you fall in love with, but find out you can't  afford.  When this happens it is hard to find another home you love as much as the 'home that got away'.   It is better to start looking at home that are in a price range that is comfortable for you, and your family.
 
     Another reason for a pre-approval is that if you find a home you really like you can't even make an offer without your agent being able to include a pre-approval letter from your lender within a couple of hours.  In this market your offer can
not, and will not,  be considered by the seller without the pre-approval letter.  Homes that are in good shape and that are well priced sell fast, and you can miss out on the home you want waiting for a pre-approval to come in. 
  
    In short, your pre-approval is your passport to you home buying adventure.  First step in any home buying adventure should be the home buyer classes, but the second step is talking to an experienced lender who can offer ALL the loan
programs.  I know a lot of real estate brokers will tell you to talk with an agent first, but realistically there isn't a lot we can do for you without that pre-approval letter from a lender.  A good lender will sit down with you and see where you are at, where you want to be, and help you with a plan to get there.  Remember that, just like a buyers agent, the lender works FOR YOU!  We are in the customer service industry....this means that we provide services to you....  give me or Chris Berg at Pinnacle Mortgage (503-320-0925) a call and we will be happy to help!
  
    Enjoy the weather, and the holiday lights.  I look forward to talking with you soon and helping you to find a great home!!!  Thank you for your referrals as well....I couldn't do this without you!  Hope this helps....as always, give me a ring, text, email, or facebook me if you have any further questions!
;-)
 
  Please call, email, text, or even facebook me (at Tracie DeMars Real Estate) anytime with any questions, or if there is anything
I can do to assist you with your  home buying adventure! As your buyers agent, I am, as always, here to help!!
:-D
  
Thank you again for your business and for your referrals!
 
...as always...if you have already purchased a home, or no longer would like to receive these emails
from me, please let me know and I will be happy to remove you from receiving any more.

Thank you again for attending the home buyer education classes, and I hope that you will continue to refer the classes out to
your friends, family, and co-workers. Upcoming class dates and times are located at www.freehomebuyerclasses.com. Just click on the link on the left hand side. Or you can go to www.learningtobuyahome.com and click the links.


We appreciate your referrals and word of mouth! Also, if you have somewhere that we can place the flyers at, please let me know....
:-D
   
Next Week:    Mortgage Payments & how they're Paid  (coming up - Inspections...explained & Mortage
Insurance....explained)
Last Week:  Mortgage Payments explained...part one
  
Remember that you can always go to 'Tracie DeMars Real Estate' on Facebook for all of my weekly blogs and upcoming
class dates/times/locations. I post the weekly blogs on there as well. 
 
Have a great day, and I will talk to you soon,
;-D
Tracie DeMars
Buyer's Agent
Re/Max - Van Mall
360/ 903-3504 cell
360/ 882-3600 fax
www.traciedemars.com

find me on LinkedIn
traciedemars@aol.com
 
“Interested in free and non promotional home buyer classes? Go to www.freehomebuyerclasses.com or www.learningtobuyahome.com for local upcoming classes, or facebook: Tracie DeMars Real Estate.”
  
*****Remember that if you are interested I can, and will be happy to, set you up on an email that will automatically email
you with new home listings in your area and price range as they come up on the market. This email will include all bank owned homes and anything with price changes. Just send me what you are hoping to find, your top 3 things in a home,
and what is the best email to send it to. This is with no obligation, and is a good way to 'window shop'.
:-)
 
 
 
 

***if you know anyone who is thinking about buying a
home, our next classes are:
 
 
Monday, December 10, 2012, from 5pm-8pm,
at the Marshall Center, conference room at 1009 E. McLoughlin Blvd. (kitty
corner from Clark College) 
 
Saturday, December 15, 2012, from 1pm-4pm at the
Vancouver YMCA located at 11324 NE 51st Circle (corner of SR-500 &
112th/Gher Road).  
 
Remember....with reservation...we will throw in lunch,
or dinner!  :-) ...we also have other class dates/times...check out the
website
  
  Please go to www.learningtobuyahome.com, or www.traciedemars.com for information on ALL upcoming
Free Community Home Buyer Classes.  I do keep all updated information, and
directions there... I would love to hear from you about when you might like to
see the classes.  These classes are for you, so please, I love your comments and
feedback!!  :-) ***
 


Happy
Sunday~ 
   
What a lovely, wet day!  :-)  We didn't do ANYTHING today, but layed around,
watched TV, and spent time together as a family.  That is why you will be
receiving this email Monday morning instead.  We don't always get to do this as
my family is so busy.  I know...we are always so busy...all of us.  Sometimes we
just need to lay low and relax...it was a good day.  :-)  
 
So, in the home buyers class this week I had a couple of good questions come up. 
One of the questions was about mortgage payments, and how that worked.  So,
perfect timing!  :-)  This is a lot of information so I am going to break it up
into two emails for this week and next.  
   
Mortgage Payments  (Part One)
  
There are four parts to your mortgage payment, and this is called,  P.I.T.I.
Principal
- the amount that you pay on the principal amount borrowed every month.
Interest
- the amount that goes toward the interest that the bank charges you
for the amount you borrowed.
Taxes-
the amount that goes toward your escrow account to pay your taxes.  More on
taxes later...
Insurance
- the amount that goes toward your escrow account to pay your
homeowners insurance. 
 
(Mortgage Insurance is a fifth component to your payment.  This will be an
upcoming blog....)  
 
The  Principal and Interest part of your mortgage actually stays the
same, but how it is split changes through the life of your loan.  In the
beginning of your loan you will pay more interest than principal, but as the
loan matures, that will change until you pay more in principal and less in
interest at the end of your loan.  Now, you have every right to pay extra on
your principal loan amount whenever you want.  I always put extra money toward
my principal loan amount every month when I pay my mortgage.  This will decrease
the length of my loan, and the amount of interest I actually end up paying.  
  
The Taxes and Insurance part of your mortgage can, and will change
though.  As your home increases in value the tax assessed value of it will also
increase, which will increase the amount of your yearly taxes, which then will
increase your insurance amount.  You always want to make sure that, as your home
increases in value, you are talking with your home owners insurance agent to
make sure you have enough insurance on it.  Your home owners insurance protects
you in case of a fire, or an event that is outside of your "care, custody, and
control".  It is like having insurance on your car in case of loss. 
 
Every year you will receive a letter from your escrow account letting you know where
you stand regarding the amount you are paying towards your escrow account for
your taxes and insurance.  Sometimes you have too much and you get a
check....but don't be too excited because if this happens it means that your
home is losing value, and we don't want that.  Usually you are going to get a
notice that your home has increased in value so that you need to put more money
into your escrow account.  You have two options of doing this....one by writing
a check to your escrow account one time (in which case your payments will now be
X amount of dollars), or you can choose to do it monthly (in which case your
payments will now be X amount of dollars).  All of this information will be in
that letter, but again....if you have questions, please feel free to call your
agent!  Yes....I know you already bought the home, but remember that we are here
to help you....for the long haul!!  :-D
 
When your agent is initially talking with your lender, one of the questions s/he
should ask your lender is what tax dollar amount the lender used for your
pre-approval.  This is important because if you are looking at a home with a
higher tax amount then you are actually pre-approved for LESS....for the same
mortgage payment, but if you are looking at a home, or area with lower taxes,
then you are approved for MORE...with the same mortgage payment. 
  
Typically your homeowners insurance should run about, or around $500 a year.  Of course,
this also depends on if you need flood insurance which will raise this amount. 
One thing that every home owner should think about is earthquake insurance. 
Earthquake insurance is not required, but did you know that we live in the area
that is #1 at risk for a very large earthquake in the near future???  Earthquake
insurance is not part of your regular home insurance anymore because of this. 
It's crazy....when I bought my home about 11 years ago, earthquake insurance was
part of my regular homeowners insurance, but now, because of this risk, it no
longer is, and must be purchased separately.  As a pre-caution, I urge you to
consider this.  You don't have to do it right now as you are in the process of
buying your home, but once you move in, contact your homeowners insurance agent
and talk to them about earthquake insurance, and if you have dogs, a trampoline,
kids, a pool, etc...ask also about an umbrella insurance policy to cover those
things that your regular homeowners insurance might not....just to be on the
safe side...  as you know...these classes, and this blog is all about CYA!!! 
:-D
  
Enjoy the weather, and I look forward to talking with you soon and helping you to find
a great home!!!  Thank you for your referrals as well....I couldn't do this
without you! 
;-)
 
Hope this helps....as always, give me a ring, text, email, or facebook me if you have
any further questions!
  
Please call, email, text, or even facebook me (at Tracie
DeMars Real Estate) anytime
with any questions, or if there is anything I can do to assist you with your
home buying adventure! As your buyers agent, I am, as always, here to help!!
:-D
   
Thank you again for your business and for your referrals!
 
...as always...if you have already purchased a home, or no longer would like to receive these emails
from me, please let me know and I will be happy to remove you from receiving any
more.

Thank you again for attending the home buyer education classes, and I hope that you will continue to refer the
classes out to your friends, family, and co-workers. Upcoming class dates and
times are located at www.freehomebuyerclasses.com. Just click on the link
on the left hand side. Or you can go to www.learningtobuyahome.com and click the
links.
 
We appreciate your referrals and word of mouth! Also, if you have somewhere that we can place the
flyers at, please let me know....
:-D
   
Next Week:    Mortgage Payments & how they're
Paid  (coming up - Inspections...explained & Mortage
Insurance....explained)
Last Week: The Do's & Don'ts of Buying a Home (Mortgage persective)
  
Remember that you can always go to 'Tracie DeMars Real
Estate' on Facebook for all of my weekly blogs and upcoming
class dates/times/locations. I post the weekly blogs on there as
well. 
 
Have a great day, and I will talk to you soon,
;-D
Tracie DeMars
Buyer's Agent
Re/Max - Van Mall
360/ 903-3504 cell
360/ 882-3600 fax
www.traciedemars.com

find me on LinkedIn
traciedemars@aol.com
 
“Interested in free and non promotional home buyer classes? Go to www.freehomebuyerclasses.com or www.learningtobuyahome.com for local upcoming classes, or facebook: Tracie DeMars Real Estate."
 
*****Remember that if you are interested I
can, and will be happy to, set you up on an email that will automatically email
you with new home listings in your area and price range as they come up on the
market. This email will include all bank owned homes and anything with price
changes. Just send me what you are hoping to find, your top 3 things in a home,
and what is the best email to send it to. This is with no obligation, and is a
good way to 'window shop'.
:-)