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It doesn’t happen often, but occasionally credit reports are missing some information. What about child support from before your current marriage? That doesn’t show up at all on a credit report. Should you tell the loan officer or just keep it to yourself. If it’s not on the report it doesn’t count, right?

Your loan and your credibility are at risk

You can go to jail if you deliberately withhold information from your mortgage application. It is called fraud and it’s not worth the risk. If you have ever wondered whether or not you must let a loan officer know about something that isn’t on you credit report, now you have the answer. Everything you know about your debts or obligations, regardless of if it may be on your credit report, must be disclosed to your lender. The lender is considering lending you thousands of dollars and has the legal right to full information. If that lender makes a decision to loan you money and finds out later that you withheld pertinent information, you could still go to prison.

Think of it this way. If a friend of yours asked you for a loan, but didn’t tell you something financially critical like they just totalled their car after a hard night of partying and need to get another one as soon as possible. And they didn’t tell you until after you gave them money. You’d be pretty ticked off, wouldn’t you? I would be. Without a car, your friend probably can’t get to work. And no work means no money. So of course you are going to wonder how they’ll pay you back.

A mortgage lender is in exactly the same position. They are making a decision based on a lie of omission.

Here’s the good news

Your loan officer can probably get your loan approved anyway. There are so many creative loan programs available these days, your debt ratio may not be as bad as you think, to a lender. If the lender agrees to make a loan after you have told everything there is to tell about your debts, you have nothing at all to worry about. The lender knows what he needs to know and fraud is no concern of yours.

So, if you have ever wondered about that hidden obligation or been tempted to keep it all to yourself, go with the honest solution and let the loan officer do his or her job. It works better for everybody involved. The honest solution allows you to stay out of jail and live in a nice house. The other decision? Well…..visitors are allowed!

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Posted in Miscellaneous, Mortgage Bites | 6 Comments »

Tags: kitsap real estate blog, mortgage fraud, real estate fraud, seattle real estate blog, silverdale real estate blog

Purchasing a home without representation is similar to driving down a straight road with a blindfold on. It might work out.

The process of purchasing real estate is pretty straight-forward, but the complexities of the legal paperwork are intimidating to say the least. Quite honestly, I wouldn’t think of doing this and I work with real estate transactions every day of the week! There is no better investment of my money, than the services of a well-trained and experienced Realtor®. 

If you have decided to do-it-yourself, here are three things to help you maintain some control of the transaction. These three contigencies will allow you some protection from the more common problems that arise between the time you find the home of your dreams, and the time you are handed the keys to it.

Stay In Control – Tip #1

Financing Contingency:  You want to insure that the financing happens the way that you need it to.  For example, you may want to place an offer based on  finding a mortgage with your specific terms. If you have decided that 6.50% is the highest interest rate you are willing to pay, yet 8.00% is the lowest available at the time, you will need a way to back out of the transaction without financial penalty.  If you do not find that mortgage, the deposit that you have made will be refunded to you. 

The best course of action is to have your financing in place before you go shopping. In that case you can still add a contingency for a specific time period in which to formalize you financing. 

Stay In Control – Tip #2
 

Inspection Contingency:  The next thing to insure your protection is a  home inspection contingency.  Because homes are such large investments and an emotional decision, you need to have your home professionally inspected.  This is no time to put your weekend-garage-warrior hat on thinking you can save a couple of hundred bucks. Let the professionals climb around in the attic and into the crawlspace. Listen to the inspector if he recommends calling in a licensed electrician because some seems amiss. And make sure you place a contingency in your offer that the inspections come back clean or the offer is voided.  If the home inspector does find any problems with your home, you can decide to back out of the home’s purchase altogether, or you can renegotiate for a lower price, based on the findings.
You should have a professional company come in and look at all of the major systems in the home including your heating, cooking, roof, windows and so on.  In addition, the home’s structure should be considered, the presence of any potential electrical, plumbing, water damage or pests in the home and much more. 

Stay In Control – Tip #3 

Appraisal Contingency: While many home buyers are willing to pay for the home of their dreams no matter what that cost, the bank that is giving you the loan for it is not likely be so nice about the process.  The lender will require that an appraisal be done on the home, and you should too.  You want to know that you are getting a home that is worth the cost you are paying for it.  You should place a contingency in your offer, then, that the home will appraise for at least the amount of the offer you are placing.

You will need to have an independent appraiser come out and do this work.  He or she will compare the home’s condition and property aspects to homes in the area that have the same or similar features and what their selling prices have been. If the appraisal comes in low, make sure you have the legal right to back out of the transaction or renegotiate the price.

If you are determined to play Russian Roulette with hundreds of thousands of dollars by representing yourself in the purchase of a home, at least take along some Kevlar. These three contingencies will give you a bare minimum of protection.

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Posted in Buyers, Miscellaneous, Real Estate Bites | 4 Comments »

Tags: home buyer tips kitsap washington, kitsap real estate blog, seattle real estate blog

Applying for a mortgage is stressfull under the best of circumstances. Even experienced borrowers feel a little twinge of anxiety at the thought of taking on hundreds of thousands of dollars worth of debt. There are things you can do to reduce the stress. Lists such as this one can be found on all mortgage websites, yet no real estate related site is complete without one. So here’s SoundBiteBlog’s list of Do’s and Don’ts.

The mortgage approval process is forgiving of many things, but these items will throw a serious wrench in the works. The following is a list of things that I see most often as a Loan Officer, that derail the process of getting approved for a mortgage loan.

1. Don’t quit your job.
2. Don’t pay your bills late.
3. Don’t procrastinate getting stuff to the loan officer.
4. Don’t lie to your loan officer.
5. Don’t withhold information from the Loan Officer.
6. Tell your loan officer in advance if you plan on making a large purchase.
7. Don’t open any new credit card accounts.
8. Do take your time. Make sure you understand everything that is happening.
9. Do overestimate expenses and underestimate income. Be conservative.
10. Do have fun!

On occasion, you might have to break one of the rules in this list. Life happens and there is just no way to make it a perfect one. When you simply must break one of the rules (with the exceptions of #4 and #5!), let your Loan Officer know about it right away. Let him or her know in advance it at all possible. There are ways to compensate for almost any sitution that can arise during the mortgage loan approval process. But it is much easier to anticipate a problem, than it is to pick up pieces after the fact.

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Posted in Buyers, Credit Bites, Miscellaneous, Mortgage Bites | 9 Comments »

Tags: bremerton real estate, kitsap real estate blog, port orchard real estate, poulsbo real estate, real estate blog, seattle real estate blog, silverdale real estate

If you’re looking for a unique and enjoyable dining experience, look no further than

 “The Boat Shed Restaurant & Bar!”

Serving Kitsap County since 1979, The Boat Shed is a family restaurant located under the Manette Bridge on the North shore of the Washington Narrows, across from Bremerton, near the quaint artisan town of Manette.

Whether you are looking for something casual and classy, or intimate and cozy, The Boat Shed offers fine dining with spectacular views of the Bremerton waterfront. In the summer months, take full advantage of the incomparable weather and sit outdoors on the waterfront deck.

Dinner entrees include certified Black Angus prime steak, Dungeness crab, Pacific salmon & halibut, fish & chips, poultry and pasta dishes. Lunches feature creative salads, savory sandwiches, and satisfying homemade soups. The beverage selection also includes a complete selection of micro brews, carefully selected wines and a full service bar. For small children, The Boat Shed offers an extensive kid’s menu. They can also accommodate parties of up to 35 people; complete catering services (their place or yours), weddings, birthdays, family reunions, and business banquets.

Perhaps one of the best ways to enjoy your meal at The Boat Shed is to arrive by boat! Pull up to the floating dock and walk right in! Your table, superior friendly service, and exquisite food await you!

Boat Shed Restaurant, 101 Shore Drive
Bremerton, WA 98311  (360) 377-2600

 Hours:

Open everyday: 11am to Midnight

Happy Hour 3pm-6pm & 9pm to Closing

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Posted in Bites of Washington, Bremerton WA Real Estate, Business Bites, Kitsap County Bites | No Comments »

Tags: bremerton business, bremerton real estate, kitsap business, kitsap real estate, kitsap real estate blog

We all have different strengths. Some people are creative geniuses yet housekeeping disasters. Some people paint. Others can do complex mathematical equations in their heads. We all have things we do well. We also have things we don’t do well at all.

Many men are taught from childhood that being completley self-sufficient is a sign of manliness. Women seem to ask for help more easily and naturally. It seems they automatically know that ,as individuals, we can’t be great at everything and it only makes sense to collaborate. When it comes to building and maintaining really good credit, the “I don’t need anyone’s help” mentality can be a serious roadblock.

Play to your strengths and delegate the rest.

If one of your non-strengths (notice I didn’t call it a weakness) is in the area of consistency when it comes to bill paying, consider asking for help. With couples, one of partners will generally be good at this while the other partner is not. That’s great if you are in a commited relationship, but if you aren’t? It doesn’t mean you can’t use the same technique to advantage. Do you know someone you trust who is really good at budgeting and has the credit to prove it? This could be a brother or sister, it could be a close friend, it could even be an uncle or a grandparent. Be open minded about who you can approach to get help. I have several clients each year who are fisherman in Alaska but reside in Washington State. They all have someone in WA handling the chore of getting the bills paid while they are fishing for months at a time. It seems to work very well for all of them. Why can’t the same thing work for a non-fisherman?

How do you pay them back?

How do you even up the scorecard if someone agrees to take on the task of managing your bills? Be creative and think about the old-fashioned idea of barter. When America was young, settlers had very little cash. They traded skills back and forth. The farmer traded grain for livestock. The blacksmith traded horseshoes for clothing. The same system can work vey well today. You probably have a skill that you are good at. Are you a roofer, or a handyman? Believe me, there are many folks who wouldn’t know where to begin tackling jobs like those. Trade what you are good at for the help of someone who is good at maintaining great credit. Do you have more money than time? Cash is always in demand.

Don’t let your ego trip you up.

If you have ever been in a management position you know that one of the most powerful tools a manager has is delegation. Important tasks are assigned to the employee who is best able to handle the task well. Approach your credit report as a manager, not as an employee. If someone else is better suited to handle that job, delegate it. When managers do this they are viewed as efficient, they are not viewed as lacking skill. You do not need to be great at everything to reap the benefits of a great credit report. That is your ego talking.

Don’t let your ego get in the way of a great credit score, or your credit score will end up hurting your ego.

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Tags: bremerton real estate, credit tips, kitsap real estate blog, port orchard real estate, poulsbo real estate, seattle real estate blog, silverdale real estate