Area experts walk potential first-time home buyers through the process

“Every one of us works for you. If you don't like what we are doing, you can fire us.” - Juli Rasmussen, Country Financial 

MOSES LAKE — How to facilitate a first home purchase was the topic of a seminar in Moses Lake Tuesday. 

The Homebuying Process Workshop, hosted by Opportunities Industrialization Center, or OIC, of Washington, featured three experts in home purchasing and a ton of advice for people new to the process.  

One of the biggest hurdles to homeownership is saving up for a down payment. OIC has a program that can help with that, said OIC Support Service Counselor Jose Vasquez. The Down Payment Assistance program will provide up to $20,000 or 20% of the home’s purchase price for eligible buyers.  

There are other programs that can be combined with OIC’s to make coming up with a down payment within reach, said Rosa Cabrera, a loan officer with Self-Help Credit Union in East Wenatchee. One is the Equity Boost program, which is open to either first-generation home buyers — people whose parents did not own a home — or those with an income of 80% or less of the Area Median Income. In Grant and Adams counties, the AMI is $90,000 per year, which makes that 80% maximum $72,000. The Equity Boost program also finances the closing costs, Cabrera added. 

“We have signed loans where families have bought their homes with as little as $3,000 out of their own pocket,” she said. 

Another SHCU program, for buyers whose income might be just a little bit over that minimum, is a zero-down program, but the buyer pays the closing costs. That one involves a little more out-of-pocket expense for the buyer, she said. 

Both of those programs can be layered with OIC’s DPA, Cabrera said, or any other assistance the buyer can find. It applies to almost any sort of housing, she said. 

“I can finance a home, I can finance a duplex, I can finance a triplex. I can finance a four-plex (if it’s the) first-time buyer’s primary residence,” she said. “You have to live in the home that I will finance. If it's a duplex, you will live in one (and) rent the other. I can also finance condos, townhomes (or) manufactured homes.” 

There are certain restrictions on a manufactured home, Cabrera added: It must be from 1994 or newer, it must be at least a doublewide. It must also be on its own lot and its own foundation. 

Once the financing is secured, it’s time to find a house. That process can have its pitfalls, and it takes a good agent to help the first-time buyer navigate it, said Stacy Lopes of Re/Max in Ellensburg. That agent should form a team with the lender and the title company to make the process as smooth as possible, she said. 

“The reason I became a Realtor is because I had a terrible Realtor, and I was like, ‘Oh, I can do this. I can definitely do this,’” Lopes said.  

The first step that buyers sometimes aren’t prepared for is earnest money, Lopes said.  

“It's basically your promise to purchase,” she said. “This seller, if they accept your offer, they're putting their house (on) pending, so pretty much no one else is going to want to look at it. So, you have to have some sort of skin in the game, a promise to purchase their place. It's typically 1% of the purchase price, but it's definitely negotiable and flexible.” 

Once the seller has accepted the offer, the buyer has three business days to get that information to the title company, and then 10 days — not business days, that includes weekends — to get an inspection done. 

“That's hiring the inspector, booking it, paying for it, having the inspection, receiving the report and responding back to the seller,” she said. “We have 10 days, so it's good to get on that.” 

The inspection is likely to reveal problems in the house that need to be fixed before the purchase is complete, Lopes said. That may be a broken garage door or funky wiring, among other things. Sometimes the seller will have the problem fixed, or sometimes they’ll reduce the price of the house to accommodate the buyer dealing with the issue. 

“That purchase price doesn't always remain that purchase price,” she said. “But one thing you have to watch out for is that anytime you mess with the purchase price, you have to check back in with your lender. Not all Realtors will do that, and it creates problems towards the end. So it's really important to have great communication throughout the whole process with every party involved.” 

The last presenter was Juli Rasmussen, an agent and financial advisor with Country Financial Insurance in Moses Lake. She emphasized the importance of not following any professional blindly simply because they’re a professional. 

“I say this at every home buyer seminar that I do: We work for you,” Rasmussen said. “Every one of us works for you. If you don't like what we are doing, you can fire us … You have the right to do business with whomever you want, to interview real estate agents, interview insurance agents. Just because you have car insurance doesn't mean that that (insurance agent) is the perfect fit for you in your home.” 

Insurance agents should have that same approach, Rasmussen said, and be ready to stand up for their clients. 

“You’ve got a plumbing issue, let me know,” she said. “If there is a problem with that house and it was remodeled within the last year I want you to call me, because I will tell you, ‘Oh no, we're going to go after that contractor. He has to warranty that work,’ and I will stand right beside you and make sure it gets done on his policy, not coming out of your wallet.” 

For more information: 

Antonia Mende, OIC of Washington Down Payment Assistance Program: 509-731-5332. 

Rosa Cabrera, Self-Help Credit Union, 509-317-7246 

Stacy Lopes, Re/Max: 509-972-7459 

Juli Rasmussen, Country Financial: 509-766-9197 

    Juli Rasmussen, left, and Sue Campbell of Country Financial Insurance share information about home insurance and how to deal with real estate professionals at the OIC of Washington Homebuying Process Workshop in Moses Lake Tuesday.