Facebook
X
Pinterest
Copy Link
A Lenders Perspective on Credit Scores
Have you ever wondered what a lenders perspective is on credit scores? Well the wait is over. Lender, Michelle Schmidt from Movement Mortgage goes the extra mile sharing not only how a credit score is viewed by lenders, but also provides a breakdown of five main factors that contribute to your score. Don’t skip out too early, she also offers a few key insights for how to fix your credit score if it is not quite where you would like it.
What is a Credit Score?
“A credit score is a three-digit number that ranges from 300 to 850 and is used by lenders to assess your creditworthiness, or how likely you are to repay a loan on time. The higher your credit score, the less risky you are considered to be by lenders, and the more likely you are to be approved for loans and credit cards at lower interest rates,” says Michelle. To better understand credit score range visit experian.com here.
There are five main factors that affect your credit score:
Payment history (35%)
Your payment history is the most important factor in your credit score. This includes whether you have made your payments on time in the past, and whether you have any late payments or collections on your credit report.
Credit utilization (30%)
Your credit utilization is the amount of credit you are using compared to the total amount of credit you have available. For example, if you have a credit card with a $10,000 limit and you have a balance of $5,000, your credit utilization is 50%. Ideally, you should keep your credit utilization below 30% to improve your credit score.
Length of credit history (15%)
The length of your credit history is also important. The longer you have had credit and the more consistently you have used it responsibly, the better your credit score will be.
Types of credit used (10%)
The types of credit you use also affect your credit score. Having a mix of different types of credit, such as credit cards, installment loans, and mortgages, can help to improve your score.
New credit (10%)
Opening new lines of credit can hurt your credit score in the short term, but it can also help to improve your score in the long term if you manage them responsibly.
You can check your credit score for free from annualcreditreport.com. You can also get your credit score from your credit card company or bank.
What if I have a low credit score?
There are a number of things you can do to improve it, such as:
- Pay your bills on time
- Keep your credit utilization low
- Don’t open too many new lines of credit
- Dispute any errors on your credit report
It takes time to build good credit, so be patient and don’t give up.
If you are not currently working with a lender and would like to talk with Michelle in more detail about your specific situation contact her at: michelle.schmidt@movement.com
If you are not already connected with an agent connect with us by filling out a request form here.
Celebrating 40 Years of Windermere’s Community Service Day
This year marks a significant milestone for Windermere Real Estate as we celebrate the 40th anniversary of our company-wide Community Service Day. Since 1984, Windermere associates have devoted a day each year to neighborhood improvement projects, reinforcing our deep-rooted commitment to the communities we serve.
The tradition began with a simple yet profound idea: real estate is not just about properties; it’s about people and the places they call home. Over the past four decades, our teams have engaged in countless projects, from revitalizing public spaces to supporting local charities, always striving to make our neighborhoods better places to live.
In honor of celebrating 40 years of Windermere’s Community Service Day, our offices are planning several impactful activities to give back to the communities that have supported us throughout the years. Stay tuned for more details on our upcoming projects. Here in the North Sound our unique projects will include bench restoration in downtown Anacortes, a clean up at the Riverfront Park in Skagit Valley in preparation for Monday night’s ribbon cutting presenting the new sign on the Riverwalk, painting the Stilly Thrift store and cleaning up the highway in Arlington.
This year we have been blessed by the support of our communities. Many local businesses have contributed to the cause, making this year efforts bound to have an even bigger impact on our communities. We would like to make a big shout out to Fronter Building Supplies, Anacortes Ace Hardware, Patrick’s Quality Painting, Lowes in Smokey Point, and Michelle & Earl from Movement Mortgage for their contributions.
Windermere’s Community Service Day is a reminder that investing in our neighborhoods goes beyond real estate transactions. It is about fostering a sense of community and making a positive difference where we live and work. Here’s to 40 years of service, and many more to come!
If you would like to learn more about what we do, connect with us.
Mango Salsa
In honor of May being National BBQ Month we decided to share one of our favorite go to recipes… MANGO SALSA.
This vibrant dish brings not only its pop of color to the table, but an extraordinary burst of flavor as well. Discover an irresistible combination of both sweet and spicy with this simple, six ingredient recipe.
How to pair Mango Salsa:
- Decorate the top of your fish tacos
- Dip your chips like any other salsa
- Sprinkle across your Carne Asada or any other meat
- Add it to the top of a salad
- Or call it “Mango Salad” and eat it with a fork and bowl… yes it is that good
How much does it make:
This recipe makes about 3 cups of salsa. If you need more, double it up. It takes about 15 minutes to prepare. We prefer it cold. We suggest making it in advance and letting it chill in the refrigerator before serving.
Ingredients:
- Dice 3 ripe mangos (If you have never diced a mango before check out how to here)
- Chop 1 medium red bell pepper
- Chop 1/2 a cup of red onion
- Chop 1/4 cup packed cilantro leaves
- Deseed and mince 1 Jalapeno
- Juice 1 Large Lime (for about 1/4 cup of lime juice)
- Salt to taste
Instructions:
- Combine diced mango, chopped bell pepper, chopped onion, chopped cilantro, and jalapeno in a large serving bowl. Cut the lime in half (take out the seeds) and squeeze the lime allowing the juice to drizzle over the ingredients.
- Gently stir the ingredients together with a large spoon. Season to taste with salt and mix again. For best results, cover and place in the refrigerator for at least 10 minutes.
If you have enjoyed this recipe share it with your friends and tag us in your Instagram posts with one of our tags:
Interested in purchasing a home here in the North Sound to host your own BBQ’s? Connect with us here.
Is it better to buy or rent?
The question of whether it is better to buy, or rent, will always exist. This is because the answer has a lot more to do with each individuals unique situation and their personal goals. We have composed a list of a few considerations that you should consider.
Supporters of buying a home point out you are making an investment. This is because not only are you paying down your mortgage total with each additional month you live in your home, but homes also typically increase by 5% each year in value. Combine the two together and you can quickly build wealth in equity. Additionally, if/when you decide to rent out your home your renters are essentially paying your mortgage. When you no longer have a mortgage, you will have positive cash flow every month.
Advocates of renting claim that the additional costs that accompany owning a home, such as taxes, interest payments, maintenance, unexpected repairs, ect. can add up rather quickly. They point out that there is no guarantee that those expenses will be regained when it comes time to sell the home. Rather than investing in a home, you might consider investing in stocks, bonds, and other financial securities.
Either way you are paying somebody’s mortgage until the home is paid off.
How long do you plan to stay in the home?
If your intention is to reside in the property for no more than five years, renting may be the more financially prudent choice. This is because the upfront costs associated with homeownership are typically spread out over the duration of a mortgage loan. Conversely, the longer you anticipate living in a home, the more advantageous it becomes to buy rather than rent. Therefore, if you’re prepared to commit to a residence for 7 to 10 years, purchasing a home is likely the optimal path. Over this timeframe, there’s a strong likelihood that the property will appreciate in value, offering potential financial gains in the long run.
Consider the Market Where You Plan to Live:
Every market is unique. It’s important to know what is happening in real estate on a national scale, but local as well. When purchasing, it is of the utmost importance to pay close attention to what is happening in the local markets. What is happening in one city might be drastically different than what is happening in another. Remember, when evaluating housing expenses, it is essential to consider the current market conditions in your city and even neighborhood, rather than relying on nation expenses. Look both at home prices and rental rates.
Consider the Cost of Buying and the Cost of Renting:
There are costs associated with both buying and renting. When you rent you typically need to pay upfront, your first and last month’s rent and a security deposit. This could be a hefty upfront cost. When buying your first mortgage payment often isn’t due the first month. However, there are escrow fees, closing costs and downpayments to consider. Be sure to talk to your lender so this doesn’t come as a surprise. If you plan right, you might even be getting back your security deposit from your previous rental that can help cover any costs. Your lender can help you determine if buying is right for you. They can provide options you might not have thought of. You might discover that you can buy a home for a monthly payment that is close to what you might rent for. Keep in mind when you buy, each payment made increases your equity.
Lifestyle:
When it comes to lifestyle differences between buying a home and renting one, ownership offers distinct advantages. Homeownership often means greater flexibility and freedom in personalizing your living space. For instance, homeowners have the liberty to make renovations, upgrades, and alterations to suit their preferences and needs. This includes options like painting walls, landscaping the yard, or even adding additional rooms. Additionally, homeowners typically have more flexibility in keeping pets, as they are not bound by the restrictions often imposed by landlords in rental properties. These aspects contribute to a sense of stability, security, and personalization that renting may not always offer.
Repairs and Improvements:
Keep in mind, when you are a homeowner you are responsible for the costs of repairs and maintenance. When looking to buy, it is important to get an inspection to have peace of mind that you are purchasing a sound home, or that you are aware of the costs associated with needed repairs and have taken them into consideration.
Can the home create an alternative revenue stream?
When making your considerations, be sure to weigh the potential opportunity for additional streams of income with the purchase of a home. Homes and properties have the potential to serve as valuable assets beyond just providing a place to live. They can also be sources of additional income streams. One way to generate extra revenue is by renting out space within the property, such as a spare bedroom, basement, or even an entire accessory dwelling unit (ADU). This can be particularly lucrative in areas with high demand for rental housing. Additionally, homeowners can utilize their property as office space for side jobs or small businesses, saving on external rental costs. For those interested in sustainable practices, properties with ample outdoor space can accommodate activities like beekeeping, gardening, or even hosting events, which can provide supplementary income while also contributing to environmental conservation efforts. By leveraging their properties in creative ways, homeowners can unlock various opportunities to generate additional revenue streams.
Do you have alternative investment opportunities available to you?
Under the right circumstance purchasing a home can be an easy way to invest. You can create significant savings while living in your home. However, for others renting an apartment and investing savings in stocks, bonds, and other financial securities is better for their circumstances.
Speaking with a financial advisor about your specific financial situation can help. A financial advisor can break down what you need to do to get the best return on your investments. They can also see the big picture for your unique situation when it comes to your money.
One Last Money Saving Consideration:
One significant benefit to buying is that if you can pay extra towards your monthly mortgage, you can knock years off the life of the loan. For example, if you pay an additional $300 a month towards a 30-year, $300,000 loan, you will take eight years off the life of the loan. You reduce your final bill by more than $63,000. That is savings you would never see if you rented. Additionally, every time you make that extra payment your equity in the home also increases.
For a unique look at your situation connect with your trusted Realtor. If you do not have one, connect with one of our experts. They can provide guidance in navigating your findings, analyzing additional factors, and exploring various home options. Click here to connect with a knowledgeable professional who can provide personalized assistance tailored to your unique needs and preferences.
Differences Between Pre-Qualified and Pre-Approved
It can be difficult to understand real estate jargon when it’s your first time purchasing a home. If you are in the process of purchasing or considering buying, we are here to help. One of the biggest misconceptions has to do with understanding the differences between pre-qualified and pre-approved when applying for a home loan. So, we took the question to the pros! We connected with Michelle Schmidt, a lender with Movement Mortgage. Michelle explained that while, “pre-approval and pre-qualified sound similar, they have significant differences when it comes to securing a loan or line of credit.” Are you ready to explore some of those differences with us?
Pre-qualified:
- Initial estimate: Based on basic information you provide, like income and debt, the lender gives a rough idea of the loan amount you might qualify for.
- Less rigorous process: No formal application or documentation required, often done online or with minimal verification.
- Not a guarantee: Not a firm commitment from the lender. Your actual approval may differ depending on further verification and credit checks.
- Lower commitment: Can be helpful for budgeting and narrowing down your search, but less persuasive to sellers or lenders.
Pre-approved:
- Formal commitment: Requires a full application and credit check. The lender verifies your income, assets, and debts. Generally, will also run your file through underwriting.
- More specific: You receive a pre-approval letter stating the exact loan amount, interest rate, and conditions you qualify for, under specified circumstances.
- Stronger leverage: Makes your offer more competitive to sellers, as it shows you’re a serious buyer with proven financing ability.
- Higher commitment: Requires more effort and may involve a hard credit inquiry affecting your credit score slightly.
Here’s when to choose each:
- Pre-qualified: Start your research, understand your potential borrowing power, and set budget limits.
- Pre-approved: When you’re serious about buying and want to make competitive offers or secure specific rates.
Michelle says, “In short, pre-qualified is like a preliminary assessment, while pre-approved is a conditional guarantee”. When planning to buy, it is important to assess your financial positioning. A lender can help you ensure your finances align with your home ownership goals. Talking with a lender early on can help you set your goals in motion and can help you feel confident in your purchase when you are ready to buy. When you are ready, getting your pre-approval is of the utmost importance. Your pre-approval letter demonstrates to the seller your seriousness about purchasing a home. It shows that you have done the legwork and is proof that you can purchase the home.
If you have any further questions about the differences between pre-qualified and pre-approved or any other loan or real estate term don’t hesitate to reach out to Michelle Schmidt, your own trusted lender, or get connected with one of our realtors if you are not currently working with your own by clicking here.
The Tulip Dance
What once was a boring parking lot has become transformed into a peaceful River Walk. This is your opportunity to walk along the Skagit River in Downtown Mount Vernon. Located in historic downtown Mount Vernon between Gates Street, First Street, Myrtle Street and the Skagit river, this park encompasses 30,000 square feet of riverfront making for the perfect walk along the water. While secured with a permanent floodwall, over the years has become a beautiful outdoor art gallery perfect for perusing or place for a picnic.
The Tulip Dance:
As you walk the plaza you will discover lovely art structures. For example, pictured is the “Tulip Dance”. This piece was created by husband and wife team, David Feri and Jennifer Corio to honor the Skagit Valley Tulip Festival. The oversized metal tulips stand over 14 feet tall and are a combination of both steel and aluminum with a powder coated finish. The beautiful piece was donated to the city by the Blackburn family.
Click here to learn more about Mount Vernon. Thinking about moving to Skagit Valley? Connect with us.
Have You Considered New Construction?
Have you considered new construction? If not, here are several reasons why you should expand your search criteria to include new construction homes.
Buying from a builder is certainly different from buying from a home seller. Builder contracts can be challenging. This alone might have you a bit hesitant to consider a new construction home. Just remember, when purchasing your home your realtor will assist you throughout the entire process whether you are purchasing an existing home or a new build.
If you have not yet partnered with a local real estate expert, connect with us.
Here’s why you should considered a new construction home:
Considering a new construction home increases your pool of opportunity. Sometimes, buying a new construction home allows you to have a say in creating the home of your dreams. Better yet, you can often get new construction home with reduced rates. Follow along as we discuss each of these benefits of purchasing a new construction home further.
The new construction market increases your pool of opportunity:
On a positive note, we are experiencing a slight increase in inventory of existing homes for sale. However, when compared to historically standard numbers of homes for sale, such as in 2018 and 2019 inventory of existing homes today is still low. Low inventory can leave buyers feeling as if they have exhausted all their options. When this happens, buyers may feel as if buying a home is just out of their reach. If you are finding yourself feeling this way, have you considered new construction? New construction has begun to see an uptick providing buyers a huge opportunity. If you are in search of a turn-key home or you want the ability to customize your own home, you have more options right now. Not only do you have more options, but many builders are offering lower rates. Keep reading to find out why.
You have a say in creating the home of your dreams:
Purchasing a new construction home offers the unique opportunity to customize and tailor the property. Customization allows the home to fit your specific needs and preferences. Unlike buying an existing home where you may need to compromise on certain features, sometimes new construction allows you to make decisions on everything from the layout and floor plan to the finishes and fixtures. This level of customization ensures that the home truly reflects your personal style and requirements. Are you ready to create a space that feels like yours from the moment you move in? Additionally, being involved in the construction process allows you to incorporate modern design trends, energy-efficient features, and the latest technology, ensuring that your home meets both your current and future needs. Overall, the ability to customize a new construction home offers unparalleled advantages in creating a living space that perfectly suits your lifestyle and preferences.
Be sure to refer to your agent who can assist you on determining the quality of construction. Keep in mind your local agent has knowledge of local builders reputations. They can help you review and negotiate your contract to help you get the best terms. As an added bonus, they can walk you through which customizations and upgrades will benefit you most not only as an owner but also to help get you the best return on investment if you ever decide to sell in the future.
Don’t have an agent? Connect with us to get paired with one here.
New construction builds can come with reduced rates:
If you weren’t convinced that you should consider new construction already, you will be when you learn that some builders who have already broke ground on construction offer incentives to help buyers be able to afford a new construction. Keep reading to find out why and explore some of the options.
The simple truth is, the longer a new construction home sits on the market the more it costs the builder. Builders are eager to sell you the home because they are not living in it. First American’s Chief Economist, Mark Fleming explains:
“Builders aren’t rate locked-in. They would love to sell you the home because they’re not living in it. It costs money not to sell the home. And many of the public home builders have said in their earnings calls that they are not going to be pulling back on incentives, especially the mortgage rate buydown, so that will help the new-home market continue to perform well in the spring home-buying season.”
One of the most popular incentives we are seeing with builders are rate buy-downs. You might be wondering what a rate-buydown is and how it impacts you as a buyer.
A rate buydown is a real estate financing strategy used to lower the initial interest rate on a mortgage loan for a certain period. This is typically done by paying additional upfront fees to the lender. These fees are often referred to as “points”. Each point purchased reduces the interest rate.
There are two main types of rate buydowns:
- Temporary Buydown: With this type of buydown, typically the borrower pays additional upfront fees to the lender. In this case, the builder would on behalf of the borrower. These fees are used to subsidize the mortgage payments during the initial years of the loan term. For example, in a 2-1 buydown, the interest rate is reduced by 2% in the first year, 1% in the second year, and then returns to the original rate for the remainder of the loan term.
- Permanent Buydown: In a permanent buydown, typically the borrower pays additional upfront fees to permanently reduce the interest rate over the entire loan term. In this case, the builder would pay on behalf of the borrower. This results in lower monthly mortgage payments throughout the life of the loan.
Overall, rate buydowns can be beneficial for borrowers who want to lower their initial mortgage payments, qualify for a larger loan amount, or afford a higher-priced home. However, it’s important for borrowers to carefully evaluate the costs and benefits of a rate buydown to determine if it aligns with their financial goals and long-term plans.
If you have questions or are considering opening up your search to include new construction and would like to partner with one of our agents please do not hesitate to connect with us.
Down payment? You’ve got options
If you are considering purchasing a home, it is likely that you have heard that you will need a down payment. If you are a first time home buyer, you might not fully understand your down payment options. We have connected with Michelle Schmidt from Movement Mortgage who has provided information to help you better understand. Keep reading for an explanation of down payments and your options as a buyer.
A down payment is an initial, partial payment made upfront when purchasing a home. It’s expressed as a percentage of the total purchase price, with the remaining amount financed through a loan.
Here’s a breakdown of down payments:
Function:
- Reduces the amount you need to borrow.
- Signals to the seller your seriousness about the purchase.
- Influences your loan terms, like interest rates and mortgage insurance.
Typical amounts:
- Homes: Usually between 3% and 20%, with 20% being ideal for avoiding private mortgage insurance (PMI). Not sure what PMI is, connect with us we will help you better understand.
Factors to consider:
- Budget: How much can you comfortably afford to put down without impacting other financial goals?
- Loan type: Some mortgages, like FHA loans, have lower minimum down payment requirements. Be sure to discuss which loan is right for you with your trusted lender.
- Credit score: A higher score may qualify you for better loan terms, even with a lower down payment.
Benefits of a larger down payment:
- Lower monthly payments: You borrow less, so your payments are smaller.
- Lower interest rate: Lenders see you as a less risky borrower and may offer a lower rate.
- Build equity faster: You own a larger portion of the property from the start.
Downsides of a large down payment:
- Less available cash: You have less money for other needs or investments.
- May delay purchase: Saving a large down payment can take time.
Some lenders, like Movement Mortgage offer down payment assistance programs for buyers who need a little extra help. Connect and see if it is a good option for you.
Feel free to ask if you have any specific questions about them or need help calculating how much you might need for a particular purchase.
If you are not currently working with a Realtor and would like to connect, reach out to us here.
The Skagit Tulip Festival
Are you ready for an enchanting annual event that blankets the Skagit Valley in vibrant colors? Every spring, the expansive fields in Skagit Valley burst into bloom with millions of tulips, creating a floral wonderland that draws visitors from near and far. The Skagit Valley Tulip Festival celebrates the breathtaking beauty of these blossoms, inviting attendees to meander through the meticulously arranged rows of tulips, capturing the essence of nature’s artistry. With Mount Baker as a majestic backdrop, the scene is nothing short of breathtaking, and the vivid hues of red, yellow, purple, and pink provide an awe-inspiring experience for all who attend. Beyond the fields, the festival features the Tulip Festival Street Fair in Downtown Mount Vernon, live music, food vendors, and a range of family-friendly activities, creating a joyful and festive atmosphere that showcases the splendor of the Pacific Northwest’s springtime charm. Ready to jump in the car and go? Check the interactive map here to see where the tulips are blooming. Interested in learning more about tulips? Discover bloom information including the lifecycle of tulips here.
Ready to make Skagit Valley your home? Connect with us.
A Modern Masterpiece with Incomparable Views
A modern masterpiece with incomparable views can now be found in the charming town of La Conner. It could be yours. This truly extraordinary home redefines luxury living. Found atop 502 High Street, this exceptional property stands out from the rest. Keep reading to discover the multitude of reasons that make it a coveted gem in the area.
Own both the home and the land
First and foremost, unlike many homes in La Conner that are situated on leased land, this residence is fee simple. This means homeowners experience peace of mind and security by owning both the home and the land. This distinction sets it apart as a rare find in the community, adding an extra layer of value and desirability.
Award-winning local builder
Designed and crafted by the renowned, award-winning local builder, BYK Construction. They believe that “everyone deserves the peace of mind knowing they come home to quality”, as is demonstrated throughout this luxurious home. This home showcases the epitome of modern architectural excellence. Boasting sleek lines, contemporary finishes, and thoughtful design elements, it stands as a testament to superior craftsmanship and attention to detail.
Breathtaking panoramic views
One of the most captivating features of this home is its breathtaking panoramic views. From the expansive windows and outdoor living spaces, residents can enjoy sweeping vistas of quilted farmlands, majestic Mt. Baker, the rugged beauty of the Cascade Mountains, and the sparkling waters of the Salish Sea. Whether basking in the warm glow of sunrise or witnessing the vibrant hues of sunset, every moment in this home is accompanied by nature’s ever-changing masterpiece. Can you imagine yourself waking to fields bursting with color during the daffodil and tulip festivals showcased by the magnificent mountains in the distance? If so, schedule your personal showing of this home now.
Incredible design
Inside, the interiors are equally impressive. Architecture that blends form and function seamlessly to create an atmosphere of refined elegance and comfort. High ceilings, open concept living areas, and luxurious amenities are thoughtfully integrated to enhance daily living and entertaining alike. From the gourmet chef’s kitchen and sumptuous master suite to the inviting living spaces and stylish design elements, every aspect of this home exudes sophistication.
Luxury lifestyle
Beyond its impeccable design and stunning views, this residence offers a lifestyle of unparalleled luxury and convenience. Whether indulging in outdoor adventures, exploring the vibrant local arts scene, or simply relaxing in the tranquility of nature, residents will find endless opportunities for enrichment and enjoyment right at their doorstep.
502 High Street, La Conner represents a rare opportunity to experience the best of modern luxury living in one of Washington’s most picturesque locations. With its exceptional design, breathtaking views, and unparalleled quality, this home is more than just a place to live – it’s a place to thrive. Don’t miss your chance to make this extraordinary property your own and experience the ultimate in Pacific Northwest living.
Are you interested in scheduling a tour of this incredible home? Connect with us here to schedule your personal viewing.
Listed by: Colleen Craig and Julie Birkle
