The 3 Most Important Aspects of Buying a Home

Ready to make a home purchase? Here is some vital information you may want to know before applying for financing.

Washington Housing Market Stats 

In Washington, the average rate for a 30-year conforming mortgage was 3.11% at the end of 2021, but since then, rates have jumped over 1.5%—the largest increase since 1987, according to Western Washington Real Estate Market Trends’ Gardner Report Q1 2022.

This increase in rates signifies a recent slowing of house sales in Washington. From Q4 2021 to Q1 of 2022, home sales were lower across all market areas in Washington, and in Western Washington they were down by 31.7%.

Although sales have been slower recently, the prices of houses in Washing still continue to increase. In Seattle, one of Washington’s biggest housing markets, single-family homes increased 12.3% from $890,444 in June 2021 to $1,000,000 in June of 2022. The median home value in all of Washington is $524,077, and home prices statewide were up 9.2% year-over-year in June.

Although 2022 has thus far seen a plateau of sales, the housing market is predicted to continue growing, making any time still a good time to buy or sell a home in Washington.

Pre-Approval Process

Once you know your home buying budget and you’ve decided what type of home loan will work for you, it’s now time to get your loan Pre-Approved.

Pulling together all the documents for a Pre-Approval can be time-consuming. But what you’ll get will be worth it. Along with the Pre-Approval Letter stating how much the lender is willing to lend you, you’ll also get a good idea of the interest rate, fees, and other costs associated with buying.

A Pre-Approval letter also shows sellers and real estate agents that you are a serious buyer who can get financing, which can give you a crucial edge over competing home shoppers. And no, it’s not the same as being Pre-Qualified, that’s just a rough estimate of what the lender might let you borrow.

Top 5 Tips For Home Buyers

Don’t Skip the Pre-Approval

Get a mortgage Pre-Approval before you begin comparing properties.

Don’t Apply For Any New Credit

If you apply for new credit it could affect your credit score.

Save as Much as you Can

Buying a home requires cash for the down payment, closing costs, moving expenses, new furniture, and fixtures.

Ask if the Seller is Willing to Contribute to the Cost of the Home

You can increase the purchase price by the same amount if you have to. But at least you will reduce your out-of-pocket costs.

Understand Your Loan Options

The type of loan you choose will determine your down payment amount, what type of home you can buy, and more. Work with a mortgage company that will find the right product to suit you! Let us get you Pre-Approved and on your way to homeownership!

The 3 Most Important Aspects of Buying a Home

Buying a property to occupy or as an investment property can be exciting. There are some general factors to keep in mind when shopping for a loan product.

1. Choose a Loan Type:

If you are buying the property for yourself or your family there are many options to choose from:


These kinds of loans are for a primary residence, and 1 – 4 unit properties. They have some of the lowest down payment programs.


They require more for a down payment compared to an FHA loan. But if you can put at least 20% of the purchase price down then you would not need mortgage insurance. So that is a good threshold to shoot for.


You would need at least 10% down but these types of programs can be more flexible for credit and income documents. Although they can be more expensive in rates and fees than Conventional Loans.


This program allows you to buy a home for yourself with no down payment but there are some eligibility requirements.

2. Credit Scores:

500 – This is what is typically referred to as, Non-prime, and would likely require a 35% down payment, and would be offered at a higher-than-normal interest rate.

600 – This score opens the door to GSE-type loans like FHA and VA loans.

620 – This is usually the score needed to get a Fannie, Freddie Mac-type loan.

If you are purchasing the property for investment purposes, underwriting guidelines for Credit Scores are not as formulated, but factor into the investor’s analysis of the property and the terms they are willing to offer.

3. Income:

If you are purchasing a home for yourself then you must show your ability to repay your loan. That is typically based on a 43% Debt-to-Income Ratio. There are some products that will go as high as a 50% Debt-to-Income Ratio.

Complete a quick loan inquiry, and we can help you determine how much home you can afford. 

Frequently Asked Questions(FAQs)

Buying a home builds long-term wealth through forced savings.” With each mortgage payment, you pay down your debt and accumulate equity in your house. You save automatically compared to the conscious effort needed to allocate money into your investments or savings account.

1. Be Mentally Ready

You know when you are ready to buy a home or not. Whether you are sick of paying rent and want to jump on the appreciation train? Or you need to buy up, or scale down. Yeah, it can be scary, but get informed, organized, and most importantly, get started! You got this! 

2. Get Pre-Qualified

This is a quick way to figure out if buying a home is practical. This can be done by a mortgage professional and takes very little time. You can just give them your information and within a few minutes you will know if it makes sense. They will want to know:

  1. You are employed or self employed
  2. How much you make
  3. If you have been employed for two or more years
  4. How much you have for the down payment
  5. What your credit score is
  6. What is the purchase price that you have in mind
3. Get Pre-Approved

This is where you complete an application and provide your documentation. This is can be done by a mortgage professional, and takes a bit more time for them and you. But it’s a crucial next step. So they will ask you to provide:

  •  Application
  •  Income documentation

Two years income taxes or 12 months bank statements if you are self employed. A year to date paystub and last two years W2s if you are employed.

  • Assets

3 months bank statements to show the assets you have for the downpayment, and closing costs.

  • Credit

You may know your credit score, but they will need to run your credit. They will get a detailed credit history from three credit repositories, and it’s the score that the lender would use to approved or decline your application. So it’s important.

4. Go shopping for a house

This is the fun part! Armed with information and a Pre-Approval tucked under your arm, off you go! If it’s just web surfing your favorite website, or driving around with your local Realtor, take a look and see what your pre-approval says you can afford.

5. Make sure the property is acceptable for your financing before you buy.

Once you have your property in mind, let your mortgage professional know. They will want to factor in a number of things like:

  • Is there is a Home Owners Association Fee and will you still qualify with that additional fee.
  • If the property is in rough shape then it may not qualify for traditional financing. Or you may need to negotiate or budget for repairs before closing.
  • if the property is too rural and you are buying it as an investment property, then the financing you had in mind may not work.


The best age to buy is when you can comfortably afford the payments, tackle any unexpected repairs, and live in the home long enough to cover the costs of buying and selling a home. Legally, you must be at least 18 in most states to buy a home.

Your financial journey starts today

Let us help you get there.
Contact us at