4 Simple Ways to Save for a Down Payment

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The down payment is often the largest hurdle first time home buyers face. Whether you’re going the FHA route and can put as low as 3.5% down, or you’re going the conventional loan route with 20% down, saving for a down payment can take some time. Here are 4 simple everyday ways to save for a down payment.

4 Simple Ways to Save for a Down Payment

Make a budget and stick with it

The number one way to save for a down payment is to create a budget. It’s hard to monitor your finances if you don’t know where you and your family stands. Take some time to review all your expenses every month and see the areas where you are over spending. For a lot of people, dining out can cost hundreds of dollars a week, whereas meal prepping at the grocery store could be a couple hundred dollars a month. Once you are aware of how much you spend in each area, make a budget and hold yourself accountable to sticking to it. Weekly checkpoints are a great way to keep yourself on track.

But first, coffee

Coffee is a huge part of how people function, so it’s hard to think about how coffee can actually cost you hundreds a month. If you pick up a coffee from your local coffee shop every morning, you could be spending $5 a day, for 30 days a month. This means you are allocating $150 a month just to coffee. And this doesn’t even include the days you go back for your afternoon pick me up. Think about buying coffee ground from the grocery store and making your own morning coffee. Also, a lot of workplaces offer coffee in the cafeteria for a subsidized cost or even free, so relying on that for afternoons can also help keep the cost low. Remember, saving doesn’t mean you have to get rid of things all together, it just challenges you to find different approaches.

Manage subscriptions

When you get to the point where you don’t even know what you’re subscribed to anymore, you’re likely spending too much on monthly subscriptions. Go through all your monthly and yearly subscriptions and get rid of services you don’t benefit from. For example, if you find yourself subscribed to multiple music streaming services, pick your favorite one and get rid of the other. These services can give you back $10-20 a month!

Sell items

Selling unwanted items can make you hundreds of dollars a month, while cleaning out your home! One man’s trash is another man’s treasure, truly. So go through your basement and see what you can sell. A helpful tip is if you plan to sell seasonal items, do so about a month before the season/holiday. This catches folks who are looking for that exact item, instead of catching people after the holiday hits and it’s not the front of their mind.

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5 Reasons to Move to Washington State

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With a booming job market paired with a temperate climate, it’s easy to see why Washington State is a popular state to live in. According to USA Today, Washington State was ranked the 4th fastest growing state in 2019. So let’s take a look at some specific reasons to move to Washington State.

Jobs

With Amazon, Microsoft, Starbucks and Boeing all headquartered in Seattle, it’s understandable why the Seattle, Tacoma, Olympia area is the employment engine for the state. Washington State is also unique in that the Eastern side of the state, opposite Seattle, is one of the nation’s largest agricultural producers, especially for seafood and fruits such as apples and cherries. That’s a lot of employment opportunities, which makes jobs one of the biggest reasons to move to Washington State.

Water

If you move to Western Washington, you’re sure to run across the Puget Sound while you’re there. Cities such as Seattle, Tacoma, and Bellevue are located right on the water so you’re bound to see a view while you’re there. While the water is pretty cold during the fall, winter, and spring months, during the summer you’ll see families gather round the many lakes and bays the state has to offer and remains one to the top reasons to move to Washington State.

Outdoor Activities

With three national parks within state boundaries – Olympic, North Cascades, and Mount Rainier, Washington is a mecca for those who enjoy the outdoors. Hikers flock to popular hikes such as Mt. Si., Rattlesnake Ridge, and Mailbox Peak, whereas those who prefer water sports are seen sailing, kayaking and fishing throughout the state.

Green

Washington State prioritizes sustainability and frequently ranks in the top five in various categories of the most environmentally friendly states. Especially in Western Washington, you’ll see an emphasis on recycling and composting as well as mass transit options such as the Light Rail and Sounder. In 2015, Washington State was ranked as the nation’s most bike friendly state and also hosts the Seattle to Portland (STP) bike race every year.

Diversity

With Seattle being a melting pot of different cultures, you’re surrounded by diversity. You’ll find yourself learning about new cultures on the regular and trying different foods. The row of restaurants adjacent to the University of Washington, informally known as the Ave, hosts over 50 restaurants of 30 different cultures. The diversity in this state inspires creativity and drives innovation statewide.

You might also like: 7 Steps to Buying a House in Pierce County.

 

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Community Recommendation: Maidify Cleaning Services

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In this series, I highlight the businesses I like to refer to my friends, family, home buyers and sellers in the Pierce County area. This month I’m talking about Maidify Cleaning Services.

Community Recommendation: Maidify Cleaning Services

When helping clients buy and sell homes, a common referral question I get is finding a trustworthy and thorough cleaning service. I have had wonderful success with Maidify Cleaning Services and like to refer them to my clients who are looking for a house cleaner. They offer a weekly, monthly and deep clean for clients to choose from. Maidify Cleaning Services is located in Steilacoom and focuses on helping homes in the South Sound region.

Before starting Maidify Cleaning Services, the owner was serving in the Army as a Helicopter Mechanic. After being honorably discharged, he decided to finish his Bachelor’s Degree in Sociology. He tried to get part time jobs to relieve stress off of his family and attend school at the same time, but these “part time jobs” didn’t honor his school schedule and were demolishing his GPA at school. He was very upset and disappointed with most business establishments that claim they “help” College students, only to work them as like full time employees without any benefits.

He started Maidify Cleaning Services for 3 reasons:

  1. To provide part time jobs to local college students and prior military at JBLM
  2. To donate to charity
  3. To help relieve stress on local residents by providing them with a clean home

He wants to thank all the Veterans at JBLM and McChord Air Force Base for making the world a better place.

Maidify offers a 10% discount to Active Duty, Reserve and Retired Military.

For more information about Maidify Cleaning Services, visit their website or their Facebook page.

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Financial Benefits of Owning a Home

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Buying a home is 38% cheaper than renting a home. This is especially true if you plan on living in one space for at least seven years. As mortgage loans are more affordable now with down payment assistance and different loan options, let’s take a look at the financial benefits of owning a home.

Financial Benefits of Owning a Home

Building equity

One of the largest financial benefits of owning a home is building home equity. When you pay rent to your landlord, you’re setting aside a chunk of money that you’ll never see again. Additionally, landlords have the right to raise your monthly rent yearly, so what you pay today could differ than what you pay monthly next year. When you sign a mortgage loan, you are agreeing to the monthly payment for the life of the loan (likely 15/30 years). So, you can accurately budget your spending every month on your mortgage. When you pay your mortgage, you are building equity as you are paying off your loan. This means that unlike renting, you will see these funds applied directly toward what you own.

Tax benefits

Another one of the biggest financial benefits of owning a home is the mortgage interest deduction. Most of your monthly mortgage payments will go towards interest in your first few years of homeownership. You are able to deduct that interest from your taxes, if your loan is $1 million or less. Additionally, any taxes you pay to the government on your property are deductible from federal income tax.

No longer moving every year

Homeownership increases sustainability and stability. While moving every year from rental to rental may be necessary for your lifestyle, it is a major inconvenience and a financial and emotional burden. Renting can mean you may never know where you are going to live in a year, or how much you’ll be paying. Owning a home allows a financial and emotional investment in both your physical home and your community.

Use your home investment toward another investment

The equity that comes from paying a mortgage is what allows many individuals make future investments in the same home (refinancing, renovations), a higher-valued home (using the equity toward a down payment), a second home (using equity toward a second down payment), or additional financial goals (paying off debt, buying an RV). A home equity line of credit helps homeowners use that part of their home that’s already paid off to obtain financing for additional investments.

You may also like: 4 Benefits of Using a Real Estate Agent

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Factors That Make Up a Credit Score

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Your credit score is a tool that lenders use to measure to risk of doing business with you. Your credit score is one of the largest pieces that determines if you qualify for a home loan. Here are the factors that make up a credit score.

Factors That Make Up a Credit Score

Payment History

Payment history is the most influential category of your credit score. Simply, if you have a track record of paying all of your bills on time, you are set in this category. The presence of negative information on your credit report will result in a lesser number of credit score points awarded. If you are looking to work on improving your credit history, consider focusing your efforts on this category first as it plays a major role in your overall score.

Amounts Owed

This category looks at the amount of your total debt. This section makes up 30% of your total credit score. Revolving utilization, or the debt to limit ratio on your credit account, is the most important factor considered within this category. Generally, the fewer number of accounts with balances on your reports, the better.

Age of Credit

Did you know that the age of credit also matters? This category makes up 15% of your credit score. Age of credit is comprised of the average age of accounts, how long accounts have been open, and the age of the oldest account. Because of this, it’s not always a good idea to terminate retail lines that you opened in high school/college. These accounts show longevity in your credit account.

Mix of Existing and New Credit

The mixture of accounts on your credit reports is also examined. Both existing and new credit is worth 10% of your credit score. It can help your credit score to have a variety of different account types on your reports. These account types include revolving credit account like credit cards, installment payments like student loans, auto loans, and mortgages. The mixture of loan types positively effects your score. Be cautious of applying for credit too often. When a lender pulls your credit it shows as an inquiry. Too many inquiries and it can negatively affect your credit. The good news is that any harm an inquiry has on your report only lasts for 12 months’ maximum. Additionally, if you’re shopping for credit, like a mortgage or auto loan, multiple inquiries within a short amount of time may only be counted once for scoring purposes.

You may also like: Helpful Real Estate Terms to Know

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4 New Year’s Resolutions for Home Owners

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2019 has officially begun, and with the new year comes New Year’s Resolutions. Being more active, saving more money, and organizing your life are common resolutions, but what about goals for your home? Here are 4 essential New Year’s resolutions for home owners.

4 New Year’s Resolutions for Home Owners

Start an emergency fund

One of the most essential New Year’s resolutions for home owners is to start an emergency fund. The idea of setting aside $100 cash every month to put in an emergency fund sounds doable, but often falls on people’s “will do later” list. But what happens if you’re faced with a life changing event where you need access to cash? This year, look at your finances and pick a monthly amount to set aside for your emergency fund. You could save over $1,000 in just one year by staying consistent in putting money aside. You’ll be so happy you did if/when the time comes.

Create a disaster kit

Your home is your castle, but it’s not indestructible. If you haven’t already, create a disaster kit to store in your garage so you’re ready to grab it and go should an emergency happen. A disaster kit that includes financial documents, copies of passports, and a home inventory will speed up recovery if disaster hits. Additionally, it’s a good idea to place at least 3 days of canned food in your disaster kit, along with emergency medical supplies so you’re set for a few days.

Budget for home improvements

Most homeowners have goals of what they want to improve in their home, even those who buy brand new homes. This year budget for one or two large projects so you’re able to make progress on this goal list. These large projects may be replacing roofing, kitchen appliances, or adding a living space onto the back of your home. By achieving one or two of these this year, you’ll stay motivated to keep finishing projects throughout the next few years, and with the right budget to do so.

De-clutter

If you feel like you’re running out of storage in your home, it is time to go through each room and de-clutter. Spend a day in each room and create 3 piles: keep, donate, and sell. Once you’ve made your way through your home, combine all the donate items and drive them to a Goodwill or Salvation Army. Once you have all your sell items in a pile, host a garage sale, or sell online via Facebook Marketplace or Craigslist. You’ll find your life less stressful when you get rid of all the unwanted clutter!

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Benefits of a Smaller Home

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Downsizing may seem like a daunting task, but there really are some major benefits of a smaller home. From having less to clean, to less utilities to pay for, to more family time, moving to a smaller home can add value to your life.

Benefits of a Smaller Home

Lower mortgage

The number one reason most people downsize to a smaller home is because they have kids that have left to college and they are left with a 5 bedroom home for just 2 people. Why pay for a home with 5 bedrooms when you only use 1 maybe 2? Moving to a smaller home can help you pay a higher down payment on the new home, and can help you save hundreds of dollars a month in a mortgage.

Less to clean

The amount of space you have to clean is one of the biggest benefits of a smaller home. Gone are the days of setting aside an entire weekend just to clean your home. Have you ever wished you had more house to clean? I didn’t think so. When you reduce the number of rooms in your home, you also reduce the number of surfaces that need to be cleaned. Less room in your home also means less clutter. So it’s really a win win situation.

Less focused on stuff

In a larger home, a big part of your focus is what you’re going to buy to cover all the walls. While furniture is necessary in smaller homes, you’ll have less wall space to cover and likely smaller décor to purchase. You’ll save a bunch of money on décor when you need less stuff!

More family time

When you live in a bigger home, it’s easy for everyone to retreat to their own rooms for time after school to evening. When everyone is thrown together in a smaller living space, it allows for more family time. You’ll spend hours and hours or more time with your family playing games and talking that you wouldn’t necessarily get if you spend all the time alone in your room.

More likely to know neighbors

With big houses comes big lots. And when you have a lot of land, it takes a little more time to spend quality time with your neighbors. Smaller homes often sit closer together. If you sit on your front porch, you’re likely to see your neighbors walking past with their kids and dogs. It’s easy to be a good neighbor when you’re closer in proximity! You’ll find that you become closer with the entire community when you live in a smaller home as well. Attending block parties and neighborhood functions can introduce you to neighbors all around!

You may also like: 4 Reasons to Buy a Home This Fall

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Cozy Private and Peaceful Home on 5 Acres

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Beautiful one story home on 5 acres in Roy, WA with updates throughout. The spacious kitchen is great for cooking and entertaining, while the shop out back is waiting to be put to good use!

home on 5 acreshome on 5 acres home on 5 acres home on 5 acres

One of the many top features of this home is the spacious backyard. The peaceful and private 5 acres is great for farm animals and gardens. This home also comes with a 36 x 36 shop out back.

  •   2 bedrooms, 1.5 baths
  •   1,336 square feet
  •   Updated features throughout home
  •   Large kitchen island
  •   Bethel School District
  •   36 x 36 shop
  •   1 year home warranty included

Contact me at 253-686-2174 to schedule a showing!

You may also like: 5 Reasons to Invest in Real Estate

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4 Reasons to Buy a Home This Fall

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Just like the seasons of the year, there are different real estate seasons that bring opportunities for home buyers. The spring market blooms along with the flowers, while the fall months dwindle with the leaves. This slower pace could be an advantage for home buyers. If you’re in the market for a new home, here are 4 reasons to buy a home this fall.

4 Reasons to Buy a Home This Fall

Deals on old inventory

Often times, sellers choose to put their home on the market in the spring, often listing their home too high. If their home isn’t selling, this could result in price reductions over the summer months. By October, if they still haven’t sold their home, they become desperate and potentially price below a home’s market value. So just because you’re not buying in the busiest home buying season, doesn’t mean you don’t get the benefits.

Fewer buyers

Perhaps one of the greatest reasons to buy a home this fall is because there are fewer homes competing in the home search. Families who want to be in their new home by the beginning of the school year will have wrapped up their home buying process a couple months ago. This means less competition and more opportunity for buyers. Additionally, in really busy home buying seasons, often times home buyers will find themselves under pressure to make a decision within hours. When there is less competition, the pressure isn’t so intense for home buyers.

Sellers want to close by end of year

Just like any other asset, a home is an investment with tax consequences. A home seller may want to take advantage of a tax gain or loss so you might see them pushing for a close date before December 31. As a home buyer, ask why the seller is selling, and look for listings that offer incentives to close by the end of the year. This way you can use their urgency to your benefit and come out with $3,000 credit in closing costs or a brand new washer/dryer/refrigerator set.

Harsher weather shows home’s true colors

In the summer months, every home looks great since there is a bunch of natural sunlight, and the front and back yard are looking green as ever. In the fall and winter months, you’re able to see any flaws revealed with the home. As a home buyer, it’s better to see a home’s flaws before making an offer, instead of being surprised and disappointed in the future months.

You may also like: 5 First Time Home Buyer Mistakes.

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A Charmer in the Heart of Fircrest

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Come check out this beautiful one story with basement home just minutes away from HWY 16, shopping centers, schools, and parks. Spacious basement with a secret room that could be used as an office or space bedroom!

fircrest fircrest fircrest fircrest

One of the many top features of this home is the spacious main floor with a newly updated kitchen. When you’re finished in the kitchen, relax and enjoy your favorite beverage in the large backyard with an existing fire pit and deck.

  •   4 bedrooms, 2.25 baths
  •   2,194 square feet
  •   Updated features throughout home
  •   Hardwood floors
  •   Tacoma School District
  •   Finished basement
  •   No HOA

Contact me at 253-686-2174 to schedule a showing!

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