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Some things get more valuable with age like fine wines and real estate. The longer you keep them the more valuable they get. In real estate, homeowners should stay put for at least five (5) years before selling their property or risk loosing money. The reason for this 5
 year rule is that closing costs and real estate commissions required to buy and sell will consume between 7% to 10% of the cost of the house. Because real estate usually appreciates slowly, the longer you keep the house the more money you stand to make. As a general rule, 2 percent per year market appreciation is normal and 3 to 4 percent is a hot market.  We are lucky in Seattle where market appreciation has been double digits.  The average closing costs range from 2% to 5% of the cost of the house. Selling a house is often more expensive than buying one. The real estate commission alone can suck up 4% to 6% of the home's sale price. 

Should you need to move within the first 5 years of buying your house, consider renting it out. Generally, rental income is sufficient to cover for your mortgage payment.  If your homes are in vacation worthy locations like on the beach or near popular tourist attractions, you can also rent it out via platforms such as Airbnb or bookings. However, you should know local laws governing these kinds of rental. 

If you don't plan to on being in the house for more than five years, then you should seriously consider renting. 

Posted by Sam Kader on December 16th, 2018 6:40 PM

Yeah, you have finally reached the last milestone of your home buying process and have received the key to your house. It's moving day. Here are some moving expenses that you should factor in your budget: 

1. Peak surcharges. Many moving companies raise rates during busy summer times and weekends. Have a flexible schedule and relocate in an off-peak period to save money. 

2. Packing materials and equipment. Boxes, bubble wrap and packing tape can add up quickly. Estimate accurately of what you need or seek free materials from friends or online. If you are not hiring a professionals, try tenting these items to save money - furniture covers, hand trucks and bungee cords. 

3. Excess cargo. Movers usually factor the number and weight of items into the bill. To save money, donate or sell what you can before your move. 

4. Cleaning. If you have a security deposit at your current place, housecleaning services typically charge between $200 to $300 for a one-time cleaning. You will save money by doing some or all of the work yourself. 

5. Utilities.  Watch for deposits, taxes, and connection and installation fees hen setting up utilities. Ask these companies about charges in advance. 

6. Food. Think snacks for the road, restocking the refrigerator and pantry and feeding friends who've helped. Go to Costco could save you money. 

7. Lost or damaged items. Some belongings might not survive the journey. It may be worth purchasing protection to repair or replace property. If you have homeowners or renters insurance, you likely have some coverage but check your policy to confirm. 

8. Tips. Movers appreciate tips after a long day of heavy lifting. A good rule of thumb is 5 percent of the total bill. 

9. Storage. If you can't immediately move your possessions into your new home, you might have to rent a self-storage unit.Costs vary by size and location. The less time and space you need, the less expensive it will be. 

Moving is a huge undertaking. Mentally walk through the process from start to finish and outline the potential items and services you will need at least a month in advance. Then research prices and get multiple estimates for the best deals and services. 













Posted by Sam Kader on September 2nd, 2018 7:33 PM


Let me help you save hundreds of dollars at closing: 

  • Available on all purchases - Conventional, FHA, USDA and VA. 
  • Conventional - Low down payment of 3%. Entire down payment of 3% can be gifted. 
  • FHA - low down payment of 3.5% (for those with high DTI ratio and low FICO score).
  • USDA and VA - 100% Financing, 0% down payment. 

Posted by Sam Kader on August 29th, 2018 7:31 PM
Having sufficient down payment is one of the biggest obstacles for first-time homebuyers. Fannie Mae introduced HomeReady Program in 2015 specifically to address that problem. 

Example A - Joe Smith a single father working  with Amazon for 2 years earns $103,400 per year wants to buy a Single Family Home somewhere in King County.  Joe's FICO score is 740.

  • Purchase price of $702,105.
  • 5% or $35,105 as down payment. 
  • Loan amount is $667,000.
  • Conventional High Balance 30 Year Fixed at 4.625% (APR 4.848% as of 7/27/18).  
  • Joe's monthly Principal + Interest (P&I) payment is $3,429.31.
  • His monthly Mortgage Insurance(MI) factor is 0.36 or $200.10.
  • Joe will receive $525 credit towards appraisal fee. 
  • We can help Joe to close in less than 30 days. 
Does Joe sound like your prospect that we can help? I have highlighted the main points in the above scenario that I can do better than other lenders.

How can I assist you?  

Posted by Sam Kader on July 27th, 2018 6:04 PM
Buying a home is a big financial commitment for most people. It definitely pays to do it right the the first time. Here are some common missteps that homeowners make at every age group and a few tips on how to avoid them. 

20's something. Getting the wrong type of mortgage. 

People in this age group are just staring their careers and usually have less money and paying less for a mortgage is a necessity. They might get an Adjustable Rate Mortgage (ARM) thinking that they will earn more money down the road so when the ARM rate resets , they will have excess funds for
it. Adjustable Rate Mortgage seems attractive because the initial teaser rate is low compare to Fixed Rate.  However, if that promotion or salary increase does not happen and when the ARM resets, there is a chance that the borrower will no longer be able to afford their mortgage payment. Consider other alternatives to ARMs such as Fixed FHA loans, Fixed VA loans and GNND

30's: Not thinking about the future. 

Homebuyers in this age group may not think much about potential future family when buying a condo in a downtown Seattle with gorgeous views of the
Puget Sound. It's important to think that even if you are currently singe that you should ponder these questions: 
  • Who do I imagine living with in the future? 
  • Where do I imagine living? 
  • How do I imagine living? 
Those answers should be an integral part of what you look for in a home. For example, even if you think you might want kids or even a dog, you'll probably want to choose a home with a backyard instead of one near a great nightlife. 

40's - 50's: Overestimating your budget. 

People in these age groups are more financially stable and tend to have more money which can lead to overestimating your budget and buying a house you can't afford. Figuring out our budget is a critical step for buyers of all ages. Your budget should incorporate things that you aren't willing to give up and discretionary spending. Use this online home affordability calculator to determine how much you should spend. 

60's and up. 

Falling in love with that vacation home. Homeowners in their 60's are retired or getting ready to retire. While some choose to stay put, many plans on moving to warmer climates or even another country. 
Before buying a new home in your vacation paradise, be sure to visit the area in every climate. For example, Florida is great in the winter but may not be comfortable in the humid summer months. 


Posted by Sam Kader on July 23rd, 2018 12:50 PM

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