As we approach the end of November, there has been an increase in new home construction and builder confidence, while rates remain low and unemployment claims start to rise.
Bothell is part of the Seattle Metro Area and considered one of the best places to live in the state of Washington. It offers residents a fabulous mix of both city and suburban life. There are plenty of eateries, cafes, shops, and greenspace for residents to take advantage of, all while being in close proximity to the city of Seattle.
Bothell is in high demand among buyers, which is why it’s important to be adequately prepared to enter the market. And a big part of that involves teaming up with an experienced mortgage company. When you’re on the prowl for a home in Bothell, you don’t want to encounter any hiccups when it comes time to finalize your mortgage approval. That’s precisely why choosing the right mortgage company is key.
This article will provide you with a brief overview of the Bothell real estate market to help give you a sense of what buying a home is like right now. It will also outline a few handy tips to help you find and choose the right mortgage company in Bothell to work with.
Overview of the Bothell Housing Market
As of April 2020, the median home price in Bothell, WA is $666,400. That’s a pretty hefty price to pay for a home and is above the statewide average. That said, it’s about $100,000 less than the average price of $767,900 in nearby Seattle. According to Zillow, Bothell home prices have increased 3.1% over the past 12 months. The real estate market is currently very competitive, according to Redfin. The majority of homes receive multiple offers and go pending in about 6 days. Hot properties can sell much faster, after around 3 days of being listed and can fetch about 3% over the listing price.
Down payment amounts can vary depending on the type of mortgage you apply for and your financial situation. Based on an average home value of $666,400, you would be looking at a down payment of anywhere between $19,992 (3% of the purchase price) and $133,280 (20% of the purchase price). Of course, you can put down an amount anywhere in between those figures, depending on your situation.
The down payment you require will also depend on the mortgage company in Bothell you choose to work with, which is just one reason why you should take some time to make the right choice.
Here are some tips to finding the right mortgage company in Bothell.
Tip #1: Compare Interest Rates
One of the main goals as a buyer is to ensure affordability in a mortgage, and one way to do this is by choosing a lender who can offer you the lowest interest rate. The rate you are offered on a mortgage will directly determine how much your home loan will cost you over the term. You could be spending a lot more in interest over the life of the loan if you lock in at a higher rate than necessary.
One of the first things you should do is compare interest rates among mortgage companies in Bothell to see where you can get the lowest rate. The internet makes this easy. A simple online search can provide you with this information, which you can then use to compare mortgage companies side by side to see where the best offer lies.
To illustrate how much of a difference rates make, let’s compare two rates on a 30-year fixed-rate mortgage of $400,000. At a rate of 4%, you would be paying $284,746 in interest over the 30-year term. A rate of 5%, on the other hand, would cost you $368,514 in interest over that same time period. That’s a difference of over $83,000! This is why comparing interest rates is so important. This type of search can help you decide who will help save you more money on your mortgage.
Tip #2: Get Referrals From Those You Know
You trust your friends and family, so why not ask them who they worked with to obtain the mortgage needed to finance a home purchase? Make sure you ask specific questions when speaking with those you know about the type of service that was provided.
You want a mortgage company that is attentive and is willing to pull out all the stops to work with you and your particular situation. This is especially important in a competitive market where working collaboratively with a mortgage company will increase the odds that you can close on a home faster than other prospective buyers. Getting some positive reviews on mortgage companies from those you know can help get you off to a good start.
Tip #3: Check Out the Mortgage Company’s Credentials
There are plenty of mortgage companies out there in Bothell, so you want to make sure that the one you choose can be properly vetted for professionalism. If possible, consider looking into the company’s credentials. Ideally, they should be properly licensed and have the necessary qualifications required to work in the state of Washington. Taking this step can help ensure that you are working with a reliable company with only the most trusted industry professionals on its roster.
Tip #4: Give Your Credit Score a Boost
Improving your credit score is another step that you should take when looking around for a mortgage company in Bothell. In fact, you may want to do this even before you start your search for a lender or a home. A good credit score will open many more doors for you when applying for a mortgage.
Not only will it increase your odds of approval, but it will also put you in a better position to be offered more favorable terms and lower rates on home loan products. So, if your credit score could use some improving, take some time and the necessary steps to make that happen before you apply for a mortgage.
Tip #5: Ask the Right Questions
When you’re looking around for a mortgage company in Bothell, be sure to ask important questions as they relate to your situation. Some of the questions you may want to ask include the following:
- What type of home loan programs do you provide?
- What interest rate do you offer?
- Are there any down payment assistance programs I can take advantage of?
- What are the closing costs?
- What loan term can I get?
- What will my monthly mortgage payment obligation be?
- Are loans provided in-house?
- How much of a down payment will I need to make?
The answers that you get will help you narrow down your choices and choose the right mortgage company that you believe will provide you with the best options.
Speak With a Representative at Sammamish Mortgage
To make life easier for you when searching for a mortgage company in Bothell, get in touch with a professional at Sammamish Mortgage. If you’re looking for more information about mortgages in Bothell, we’d love to help answer them all so you can go into the mortgage application and approval process fully informed.
Ready to Apply For a Mortgage in Bothell?
If buying a home in Bothell is on your radar this year, then you need to team up with the pros in mortgages, and Sammamish Mortgage is ready to step in to help. We have been helping home buyers across Washington, Colorado, Idaho, and Oregon obtain the mortgages they need since 1992. We offer a variety of mortgage programs with flexible qualification criteria. Please contact us today for a rate quote, or with any financing-related questions you might have. We look forward to speaking with you!