Start Planning Early

We all know that if we want the live in the home of your dreams at retirement, it’s essential to start retirement planning early.  But in many cases retirement goals and plans have changed since earlier generations, and so it’s important to think through what kind of retirement you’re actually planning for.

Former Retirement Trends

It used to be that, as soon as the kids were gone and the nest was empty, our parents traded in the larger family home for a smaller, cheaper condo in a warm-weather location like Florida or Arizona.  They would then use the difference to see them through their retirement years.  Some baby-boomers are clearly following that trend, but many are not.

Other Retirement Choices and What They Mean for You

There has been a marked increase in boomers who are planning to buy a nicer home, invest in a second home, or renovate their current home with some luxury comforts.

What does this mean?  Well, for starters, it may mean that you’ll need to plan for home expenses to take up a bigger chunk of your retirement income each month.  This requires greater savings than our parents often required.  It requires more intentional planning. And the earlier you start your retirement planning, the greater your choices for how you’d like to live when you retire.

One smart way to plan is to first consider the daily retirement lifestyle you’d like to have before deciding on what kind of home you’d like. A pros and cons list of your current living situation can also help clarify your goals. It’s important here to make sure you’re not just considering financial considerations, but personal lifestyle goals as well, since a healthy balance between both can ensure a happy, peaceful retirement.

Here is just a brief list of questions you (and your spouse or partner) should consider when it comes to lifestyle choices at retirement:

• What kind of climate would you prefer to retire in?
• What kind of environment would you like — the city, the suburbs, the country, a retirement community?
• How important is your proximity to children, grandchildren, friends, and other loved ones?
• Is it important to have room for overnight guests or long-term stays (i.e. aging parents)?
• What kind of amenities do you want to have close-by?
• How close do you need to live to medical facilities and community facilities, such as the library?
• Do you need access to buses, airports, etc?
• What kind of recreational activities would you like to have close-by?

For your finances, it’s important to consider:

• Mortgage or rent payments, and how much you’re willing to pay in retirement
• How much equity you have in your current home
• Potential association, condominium, or other community related fees
• Keeping up your intended property, from housekeeping to mowing the lawn to shoveling snow to replacing the roof
• Utilities
• Home improvements to accommodate your future physical needs and limitations
• Property taxes

If you’re currently looking to retire in the Pacific Northwest, Susan Stecher and her team of real estate professionals are ready and waiting to answer any questions you have, as well as provide helpful tools for planning the Pacific Northwest retirement of your dreams. Call (360) 319-4939 or toll-free (888) 319-4939 to talk to Susan today!

Important news for Pacific Northwest homebuyers currently in the closing process — it looks like you may have an additional three months to finish closing the deal and still be eligible to claim the federal homebuyer tax credit.

As you’ll remember from past posts, the original deadlines were as follows: you had to be under contract to buy by April 30th, and you had to finish closing by June 30th. An amendment to HR 4213, the “American Jobs and Closing Tax Loopholes of 2010,” extends the closing deadline to September 30th to allow lenders to clear a large backlog of thousands of homebuyers nationwide.

The National Association of Realtors supports the amendment to the bill, as they have had widespread reports that one-third of qualified applicants have been told their loans won’t close before June 30th because there are so many loans in the pipeline. This gives homebuyers an added opportunity to take advantage of the valuable tax credits.

The amendment was approved, but a Senate vote still remains on the amended bill itself. So far it looks likely to pass. We’ll keep you posted as we learn more!

If you’re looking to buy a Pacific Northwest home, my team and I can walk you through each step of the process. In times like these, it’s vital to have knowledgeable experts on your side! Call the Susan Stecher team of Real Estate professionals today at (360) 319-4939 or toll-free at (888) 319-4939!

Photo Credit: BAR Photography

Good news for Whatcom County real estate — property sales were up all across the county. Though some of the boost was due to homeowners trying to get in on the federal tax credit for homebuyers (which expired at the end of April), categories other than used single-family homes were up, too.

Here’s a quick glance of the numbers according to The Bellingham Herald:

Bellingham Property Sales

—158 property sales in April (10.5% increase from March and a 19.7% increase from April 2009). These include residential, commercial, industrial and undeveloped land.

—473 property sales January-April 2010, a 9.2% increase over the same period last year.

—New home sales are way down in 2010. Only 2 new homes were sold in Bellingham in April, and there have been only 16 new home sales this year.

Ferndale, Lynden & Blaine Property Sales

—Combined, these communities sold 154 properties, a slight increase from March, but up 51% compared to April of last year.

—New home sales have fared slightly better here, where 38 new homes have sold in the first 4 months of 2010 (39 new homes were sold in the same period in 2009).

My team and I are keeping a close eye on these numbers, and continuing to assist families with finding the best values in local Pacific Northwest properties. To get more information, take a look at our free MLS Search or call my office at (360) 319-4939 or toll-free at (888) 319-4939.

It should come as no surprise that with the first-time homebuyer and repeat homebuyer tax credits set to expire in April, many Pacific Northwest homebuyers were moving quickly to take advantage of this great opportunity.

Pending home sales (in process, but not yet closed) in Whatcom County last month totaled 372 in April, up nearly 27% from March, reports the NW Multiple Listing Service.  Closed home sales last month were about the same as in March (203 homes).

Whatcom County homebuyers with pending sales have until the end of June to qualify for the tax credit, so the market is expected to remain active.  And just because the tax credit has expired doesn’t mean that there won’t be good buyer incentives in the months ahead.  Expert Pacific NW Real Estate Agent Susan Stecher can help you find a Bellingham home that’s just perfect for your family and your budget, so give her office a call today at (360) 319-4939 or toll-free at (888) 319-4939!

If you’re a seafood lover, you may want to make sure you make your way into Fairhaven for the Eighth Annual Dirty Dan Days festival, celebrating seafood and Fairhaven community founder Dan Harris!

Festivities include seafood (of course), live music, a pro fish fillet contest, salmon toss, cupcake eating contest, toy boat building, interactive fish art, an 1800’s dress-up, cooking demos, the Chuckanut Chowder cook-off, and — get this — a piano race down Harris Avenue!

Don’t miss out on this early-spring opportunity to celebrate the roots of the Fairhaven neighborhood.

To find homes in Fairhaven, please search my free MLS search, or give me a call to get the very latest information on great deals on Fairhaven homes!

Pacific Northwest home buyers-if you are searching the Pacific Northwest MLS for your dream home right now, you will want to try to find it before the end of April 2010, so you can take advantage of the First Time Home Buyers Tax Credit. The tax credit has already been extended twice, and so far I have heard no news about extending it for a third time, so this may be the last chance you have to get the credit.

While you shouldn’t rush out to buy a home just because of the tax credit, if you happen to be already in the process of looking, or feel ready to make a purchase now, then it would be a shame to miss the benefit of the tax credit by only a few days.

Buy Pacific Northwest Real Estate

The credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase and offers a great way to save some money.

Are you not sure you can take advantage of the tax credit? Though the tax credit is for first time home buyers only, which the IRS defines  as someone who has not owned a principal residence during the three-year period prior to the purchase, there are some other restrictions so be sure to contact me to learn all the details.

Pacific Northwest Real Estate For Sale

What is also great? The tax credit can be taken for THIS YEAR, but simply submitting and amendment to your 2009 taxes, so you should get your tax credit before the end of the summer. The tax credit is for 10% of the home’s purchase price up to a maximum of $8,000 on homes priced at $800,000 or less. That is quite a nice sum of money to put towards your house, decorating your house, or even saving for a rainy day or a new roof down the road.

For homes purchased on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit. Additionally, so long as a binding contract is signed by April 30, 2010, the IRS will also grant the tax credit, so long as you close by June 30, 2010, so if you are already to start the Pacific Northwest home buying journey now, then you still have plenty of time.

Relocate to The Pacific Northwest

So while I don’t want you to feel pressured or rushed into buying Pacific Northwest homes for sale, if you have been searching for your perfect dream home, or feel ready to buy now, then it would be great to squeeze in on the tax credit deadline.

Contact Your Pacific Northwest Realtor

If you have questions, or want to put your Pacific Northwest MLS home search into high gear, simply contact me, Susan Stecher, your trusted Pacific Northwest real estate agent, to learn more about Pacific Northwest home buying and make sure you can get the Federal Housing Tax Credit.

Until next time,

Susan

Good news for Whatcom County communities — things sure are looking a bit busier, which is good news for those who want to sell a Whatcom County home.

117 properties (residential, commercial, industrial, or undeveloped land) in Ferndale, Lynden, and Blaine were sold in February, up 37.6% from this time last year, according to First American Title in Bellingham. For January and February combined, sales are up 27% compared to 2009.

Last month, there were 100 property sales in Bellingham, up 8.7% from the same month last year; in the Deming/Sumas area, there were 18 property sales in February, up from 6 sales in February 2009.

Used single-family homes are among the most active groups of property sales. During the months of January and February, Ferndale, Lynden and Blaine’s used home sales were up nearly 30%, while Bellingham was up nearly 14%. Sumas and Deming were up 50%.

If you want to sell your Whatcom County home in the near future, it’s best to have an expert Pacific Northwest Real Estate agent on your side! Please Contact Me or call my office toll-free at (888) 319-4939 to get started!

Renovating an older Pacific Northwest home? Here’s some information you need to know!

If you’re renovating your Pacific Northwest home and it was built before 1978, make sure your contractor is certified to perform renovations that might involve disturbing lead-based paint!

Federal law has long required that individuals receive certain information before renovating more that six square feet of painted surfaces in a room for interior projects (or more than 20 square feet of painted surfaces for exterior projects in housing, child care facilities and schools built before 1978 (at which point lead-based paint was banned for residential use because of its severely detrimental health effects for both children and adults).

Renovators are required to give a “Renovate Right” brochure to homeowners, tenants, staff and families affected by these renovations.

Beginning next month (April 2010), new federal law requires contractors who disturb lead-based paint in homes, child-care facilities and schools built before 1978 to be certified and follow specific work standards to prevent lead contamination.

Protect your family — ask to see certification before renovations begin on your Pacific Northwest home!

I’ve recently received word that some of our local Pacific Northwest mortgage lenders are a part of Fannie Mae’s HomePath Mortgage Financing program. If you’re the market for a great deal on a Pacific Northwest home purchase, this program might be for you.

About the HomePath Mortgage Financing Program:

Here is the basic information (please contact me for further details)…

Fannie Mae works with its lending partners to help homeowners avoid foreclosure; however, sometimes it is unavoidable. When foreclosures occur on mortgages in which Fannie Mae is the investor, it is their goal is to sell properties as soon as possible in order to minimize the impact on the local community. The HomePath Mortgage from Fannie Mae eases financing requirements to help facilitate a sale and protect home prices.

Benefits of using the HomePath program to purchase your next Pacific Northwest home:

• Low down payment and flexible terms for fixed-rate or adjustable-rate mortgages
• Borrowers may qualify even with less-than-perfect credit
• Available to both owner-occupiers and investors
• Down payment (at least 3% – primary residence, 10% – second home, 15% – investment) can be funded by borrower’s savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
• No mortgage insurance
• No appraisal

Limited Time Closing Cost Assistance

Fannie Mae is offering a 3.5% incentive* for buyers who purchase and close on a Fannie Mae-owned home between January 28 and April 30, 2010. Buyers who purchase eligible properties that are closed within this period may receive up to 3.5% of the final sales price for:

• Closing costs;
• The purchase of new Whirlpool® appliances by Fannie Mae; or
• A mix of closing costs and appliances, at the buyer’s discretion, up to the maximum 3.5%*.

To be eligible for closing cost incentives:

• Offers must be accepted on or after January 28, 2010
• Property sales must close before May 1, 2010
• Buyers must be owner-occupants — investors are excluded from the 3.5% incentive

*Some limitations on the use of the 3.5% incentive may apply so buyers should consult their loan officer for guidance.

To find a Pacific Northwest home that qualifies for the Fannie Mae HomePath program and closing cost incentives, please give me a call! An expert Pacific Northwest Real Estate agent, I can help you find an affordable home in Whatcom, Skagit, Island, or San Juan County!

Photo Credit: Skyler Jokian

Now that the Canadian dollar is improving again, I have many foreign real estate clients asking if they can finance purchases of US homes in the Pacific Northwest. Yes, they can!

Finance Programs Available for Foreign Purchasers

Here are some of the programs from one of my favorite Mortgage Brokers, Tom Mercadante, Sr. Loan Officer with Security First Mortgage, Inc., right here in Bellingham, WA . . .

Right now Tom has programs that require a 25% down payment for Second Homes at approximately 5.75% for a 30-year fixed rate loan, and programs that require 35% down payment for Non-owner occupied homes at approximately 6% for a 30-year fixed rate loan.

Of course, full documentation of income and assets is required.

Am I eligible?

Are you eligible for these kind of loans? Ask Tom. He will pull US and Canadian credit scores, and ask you to provide:

1. 2 years of your T-1’s and T-4’s;
2. 2 months of assets reports (including all pages of the documents) for all financial accounts;
3. One month of paystubs;
4. Your most recent RSP statements; and
5. Two forms of ID (e.g., your Passport and Driver’s License).

Note: These loans have a 1% hard pre-payment fee for payoff sooner than 3 years of lending history.

If you are NOT a Canadian, Tom will need a $100,000 down payment and 50% loan to value, whichever is more. Seller secondary financing is permitted as long as the combined loan-to-value is less than 50%.

How to contact Tom:

Tom Mercadante can be contacted at:

Security First Mortgage
2900 Meridian Street
Bellingham, WA 98225
(360) 734-5768 Office
(360) 483-9077 Cell
Email: tomm@sfmiloans.com

Give him a call and tell him “Susan Stecher said I should talk to you about foreign purchaser financing for buying a Pacific Northwest home!”