3. Most Lenders will no longer accept a "no doc" loan application. In otherwords, you have to have your taxes done and the income must show you are qualified for the Loan. 

 

4. Really shop for the right mortgage and Broker and/or Bank.  Portfolio Lenders are rising to top in the Northwest WA market.  These are Lenders that are still in excellent shape, have high bank ratings and typically keep all their loans "in-house".  They do not have to work with Freddie Mac or Fannie May and they can be more flexible than the other Lenders.

 

5. Be aware that any real estate loans other than related to a primary residence will have higher interest rates and a higher threshhold of income to be qualified.

 

 

Finally, if you did have an ARM that is have been adjusted so high that you are having difficulty, definitely contact your Lender to try to refinance into a Fixed Loan immediately. If you think you may not hold your home for more than 5-10 years you can get 5 year ARMS at a fixed rate. It really is up to you to know the product, understand the terms and do your homework. 

 

Even if you are still comfortable with your ARM payment, you should consider moving to a fixed rate for the stability it promises plus the rates are actually fairly good right now.  Re-financing current mortgages is extremely poplular now due to the lower interest rates.  However, a lot of times a re-financed mortgage on a primary residence can change the status of the loan to a "Recourse" loan as opposed to a "Non- Recourse".  See my Article on Foreclosures.

 

 

SELLERS: You need to be extremely flexible in every way.  It is a Buyers market.  You need to get the Inspector that the Realtors hate because they are so picky.  You need to pay them to inspect your home and tell them you want them to treat you like a picky Buyer.  THEN  - fix everything they recommend in their inspection.  Give your listing Realtor a copy fo the Inspection and proof that it has all been fixed.  THEN - tell your Realtor that you want them to be totally honest about where you should list your property  TO SELL - or, you are not a Seller.  Wait until the market goes up.

 

Consider Seller Financing a portion of the down payment, or maybe a lease option for a year or two.  You need to work closely with your Accoutant and maybe even attorney to make sure the Buyer is qualified, has good credit, and adequte collateral.   You are a bank - act like it.