About Spokane County, WA

Spokane, Washington Home Buyer asks “What is DTI?”

In Spokane, Washington and across the nation, first time home buyers sit anxiously across the desk from a mortgage specialist who tells them whether or not they qualify for a home loan. Do I qualify? How much do I qualify for? Knowing the lingo about home loans isn’t intuitive and it isn’t totally about credit scores.

There is another issue – it is DTI which is Debt- to- Income- Ratio. The calculation is based on your numbers – income and obligations.

What is DTI? It is the comparison of your monthly take-home income and your monthly obligations to creditors. Which creditors? Your major creditors like automobile payments, student loans, credit cards, rent, alimony, etc. Day-to-day living expenses are not included.

Here’s an example but use your numbers to get an idea of your debt-to-income ratio:

$1850 mo/expenses divided by $4000 mo/income = 46%

46% is the DTI

Anything above a 44% makes it harder (but not impossible) to qualify for a mortgage. So, before you shop for a new home, you need to know if you can afford a mortgage and how much of a mortgage.

Owning a home is not the same as renting. The landlord pretty much takes care of the repairs and maintenance on a rental but when you assume home ownership, you assume the upkeep including painting, landscaping, and repairs which become additional out of pocket expenses and impact your cash flow. And….those pesky monthly expenses continue. Only you—and your underwriter—know how much you can comfortably afford to pay each month.

Every lender determines its own guidelines regarding allowable DTI ratios for new loans and refinances. The type of loan also determines the allowable DTI. This is why a good mortgage broker will explore several opportunities and assist you in determining whether an FHA (government) loan or conventional loan is right for you. Lenders want to know if you will be able to meet your monthly payments as well as have the ability to repay the loan. The counsel of an experienced loan officer can make all the difference.

So now you know the definition of DTI in Spokane or anywhere. But to learn more call a reputable mortgage broker WHO WILL PRE-QUALIFY you based on several criteria. Visit www.bills.com/debt-to-income-article/ for even more information.

Queen Latifah comes to the INB Performing Arts Center in Spokane March 22nd ~~ proceeds benefit the YWCA.

Tickets available through all TicketsWest outlets and the prices range from $50 to $200. “All proceeds will support the YWCA’s critical programs that empower thousands of women each year …….”

Spokane - a city that supports its own.

"YWCA of Spokane is dedicated to eliminating racism, empowering women and promoting peace, justice, freedom and dignity for all."

Thank you Queen Latifah for answering the call to benefit Spokane's YWCA.

Support for the YWCA through donations of all types are always welcome.

Spokane in March is hardly inspirational. Oh, sure, I do get excited when I see the first sprouts pop out of the ground, but I am not quite so naive that I take that as a sure sign that Spring will follow close behind. Sometimes it happens . . . more often it doesn’t!

So when I saw a recent challenge from Paula McDonald entitled “What is Springing Up in Your Area?” I must admit I grumbled a little. I just knew other AR members would have posts with great pictures of blossoming trees and a population in flip-flops, while mine would be showing the first little tips of some brave but foolish perennials that I would have to dig out of the snow before I could even photograph them. They were there last week . . .I swear!

While driving down Bernard today I saw a sign.

Plant sale?! In March? Did the Friends of Manito get a little carried away with last week’s balmy weather? Now I must say I am rather drawn in by crazy behavior . . .if nothing else the absurd is good fodder for a blog post, so I decided to go find out more.

A flyer on the door of the Gaiser Conservatory in Manito Park told me what I needed to know . . .it is a TROPICAL PLANT SALE which is happening on March 3 in the Manito Meeting Room. I have long ago given up torturing house plants, so it is probably not an event I will attend, but since I was already at the door of the conservatory there is no way I wasn’t going inside!

Opening just two glass doors transports me from a dreary Spokane day to a tropical forest filled with exotic flowers . . . moist warmth . . .sweet floral smells . . .the soft babbling of a brook . . . PURE BLISS!

Of course, I had to take lots of pictures . . .some to show you how great Spokane is even if our Spring is not yet springing! The rest are to hold me over till Spokane’s glorious outdoor gardens boast their finery!

Looking for a place to call home with four true seasons and affordable housing? Spokane may just be the perfect place for you!

Contact me today for more information on homes for sale in our wonderful city!

Valerie Baker

Realtor®

Exit Real Estate Professionals

(509) 496-6938

simply real estate

Dr. Grant Forsyth of Eastern Washington University College of Business and Public Administration has compiled an area economic outlook for 2012. The good news is Agriculture and Retail sectors are on the increase while non-farm employment and income are trending upward. Initial filings for unemployment are down as well. It continues to be a forecast for choppy waters in the housing market however with an overall loss in equity predicted.

Here's the link: http://www.ewu.edu/Documents/CBPA/IPPEA/2012%20Forsyth%20Outlook2-Nov-15-2011-PDF.pdf

One thing of note in terms of residential real estate; with anecdotal value of course, is that for some on the buying side of things, it's a time of growing frustration in that the housing inventory has shrunk somewhat in various price ranges making it difficult to find the right place to buy. Will this trend that myself and many of my colleges are facing continue through Spring into Summer? I'm inclined to think that possibly with Spring and the change in weather, that more homes will come on the market. Still (and less inventory is supported with evidence in the data from the Spokane Association of Realtors) this decrease in inventory and increase in sales, if it continues, and at a time whereby foreclosure inventory is also shrinking, it could point in a direction of a stable market and ultimately one in certain categories that may show price increases. Of course nobody knows for sure how things will play out. It will be interesting to see and then revisit the 2012 outlook in 2013 and see how close it came to an accurate portrayal. Meanwhile with low interest rates, rock bottom prices, it appears to be a race to the finish line this year for those wishing to invest in real estate and get a great deal.

Finally, it's a tremendous value and asset to have research in motion here in our area. Not just in business, but in medical, biology, technology and all areas of academia. Having earned an undergraduate and graduate degree from Eastern Washington University, I'm proud to see our area University District at Riverpoint grow, as well as new projects and growth at Gonzaga across the river, Washington State University Spokane, and the central EWU campus at Cheney. Institutions of higher learning are smart investments in the regional economy. As we support growth in research and funding, we see the University community grow and along with it, various economic sectors. As the tide rises, so rise all boats, as the saying goes. Of course we are all interconnected nationally as well as globally, but isn't a marker of success within a civilization it's strength in the arts, sciences, and advanced disciplines? Spokane has so much potential, and we can grow big if we put our minds to it!

MEAD RANCHER SPOKANE WA OPEN HOUSE SUN. 2/27/12

Join me for an OPEN HOUSE this Sunday 2/26/12 at 15004 North McKinnon in beautiful North Spokane!

2-4pm

5 bed. 3 bath HUGE family room addition!

take the virtual tour now!

http://www.tourfactory.com/810741

Hope to see you there :) This is truly a beautiful home in Mead schools!