Rent vs. Buy
If you are a renter in many Seattle neighborhoods, you can probably afford to buy. Even if you are a short-timer, it is possible to pay less in mortgage than you would in this uncertain rental market. A recent client of mine complained that his rent went up 40% over two years. He reduced his monthly out of pocket expenses by purchasing a town home, and it only took two weeks!
The average rental price in Queen Anne, Ballard, Fremont, the Capitol Hill areas, and Belltown often exceed the monthly mortgage amount even when factoring in home owner’s dues.
People often don’t realize that they can afford to buy right now. Looking at the big house on Queen Anne can make you feel like you should wait and save more money. But often buying something smaller now can bring that Queen Anne dream much closer, in a shorter period of time.
Clients ask what paperwork they need for applying for a mortgage. Waiting until you fall in love with a home is too late. The time to get organized is before you shop. A lender I work with provided this list of required items. You can apply first and rate-lock later, when you find the right property.
Initial Documentation That Will Be Required For a Loan:
- Complete and signed mortgage application
- Last two years federal tax returns (all pages)
- Last two years W2 forms
- Most recent continuous 30 days worth of pay-stubs
- Last three months of checking, savings and retirement account statements
- Explanation and source of large deposits
- Gift Donor information (if applicable)
- Details on debt not shown on credit report – Alimony, child support, 401-K loans
When you make an offer to purchase, these additional items will be required:
- Copy of earnest money deposit check
- Copy of a fully executed sales agreement, including requests for repairs that you make of the seller
And for Condominiums:
- Copy of a complete set of recorded condominium documents (Master Deed, Trust, By-laws, current budget, Reserve Study, Insurance certificate, Two-years of meeting notes)
- Resale Certificate supplied to Lender from HOA to be completed prior to approval
If you need recommendations about experienced loan agents, I am happy to provide you referrals.