Washington is a state that is situated in the northeastern corner of the country right below the country of Canada. The Pacific Ocean is to the west, and Oregon is to the south. The largest city is Seattle, and the capital is Olympia. The state boasts a temperate climate, and the job market is booming. While living in Washington, you will pay no income tax, and the state is environmentally friendly. Washington is the perfect place for people who love spending time in the outdoors. You can hike on Mt. Rainer, and Washington has excellent opportunities for boating, kayaking, sailing, fishing, and whale watching. Many people who live in the state of Washington will be needing a mortgage soon. If you are looking for a mortgage, research your options so you will know what to expect.
Washington Mortgage Rates
The rates in Washington are consistent with the nation’s average. https://www.zillow.com/mortgage-rates/wa/ states that the average interest rate in Washington for a 30-year fixed loan amount is 4.00%, and the average interest rate in Washington for a 15-year fixed loan will run about 3.22%. If you want somewhere in the middle, a 20-year fixed loan will be 3.88%. The 7/1 ARM rate is 3.51%, and the rate for a 5/1 ARM stands at 3.16%. A 3/1 ARM will be 3.62%. These rates have recently decreased slightly, so now is a great time to buy a home in Washington.
Applying for a Washington Mortgage Loan
There are so many lenders available today, so it is important to find the best one. You want a lender who will offer you the lowest interest rate, and you want a lender who is honest and reliable. It is advisable that you pull your credit report before applying for a loan. Know what your credit score is, so you will know if you need to raise it before you apply for a mortgage. Most lenders will ask you to submit pay stubs, bank statements, income tax returns, and W2 forms, so make sure you have those available. You can compare lenders online, and you can get pre-approved for a loan. This will make shopping for a loan easier. After applying for loan, the lender will send you a copy of the Truth in Lending Disclosure, as well as the Good Faith Document for you to look over. These papers will let you know exactly how much you are going to spend on the loan and all the fees involved. When the loan is finalized, you can set up a time to close on the loan.
Types of Washington Mortgages
There are numerous options for you, so you need to consider the advantages and disadvantages of each option, so you will know what is best for your mortgage needs. Some things you need to decide include:
- Fixed Rate or Adjustable Rate: If you plan to live in your home for a long time and get a low rate, this is the best choice as your rate will stay the same. If your residence is temporary and your interest rate is a little higher than what you would like, you might go with an adjustable rate because your rate will change depending on the market.
- FHA Loan: If your credit score is a little low, this loan might be the best option. It is the most popular loan available. You might only need a 3.5% down payment.
- VA Loan: This is the most popular loan for military members or retired military members. No down payment is required.
- USDA Loan: If you do not make a lot of money, you need to consider this loan that the US Department of Agriculture offers.
- Conventional Loan: This loan is not backed by the federal government and required a down payment as low as 3%.
Washington Mortgage Laws
Lenders in Washington must present you with a Truth in Lending Statement and a Good Faith Estimate, so all of the fees and rates are disclosed to you. You cannot be discriminated by a lender because of your religion, gender, color, race, or handicap. Lenders must be licensed by the state of Washington, and they must operate fairly and honestly.