The First Door · Guest Q&A
The money part, answered.
Eleven of the questions we hear most from first-time buyers, answered honestly by Hans and Camey Westermark of Family First Mortgage.
When someone tells me they are not ready to buy a home, nine times out of ten they are not talking about the house. Or the neighborhood. They are talking about the money part.
It is the question Nina and I hear most, usually some version of the same worry. I do not have twenty percent. My credit is not perfect. I do not even know where to start.
So I did what I would tell any friend to do. I went to people I trust and asked them the questions you have been asking me.
Hans and Camey Westermark are a husband-and-wife team, and they own Family First Mortgage. Our families connected through school, but the reason I send first-time buyers their way is simpler than that. They answer the phone when nobody else does, and they tell the truth even when it is not the easy answer.
I sent them eleven questions. Here is everything they said.
—Donald
Let’s kill the big myth first. Do people really need 20% down to buy a home around here?
Nope. This is probably the biggest myth we hear.
Many buyers are surprised to learn they can purchase with as little as 3% to 5% down, and some programs allow even less. FHA loans require just 3.5% down, and there are down payment assistance programs that can help cover some or all of that.
The 20% number isn’t about qualifying to buy. It’s simply the point where you can typically avoid private mortgage insurance (PMI). For many people, waiting years to save 20% ends up costing more than getting into a home sooner and starting to build equity.
Be honest with people. What credit score do they actually need versus the score they think they need?
Most people think they need a 700-plus score before they should even talk to a lender.
The reality is many loan programs allow much lower scores than people expect. We’ve spoken with plenty of renters who assumed they couldn’t qualify, only to find out they were much closer than they realized.
What surprises many people is that purchasing power isn’t determined by the score alone. Sometimes the bigger issue is what’s behind the score, things like recent late payments, collections, high credit card balances, or reporting errors they didn’t even know existed.
On the flip side, a lower score doesn’t always mean there is a problem. Sometimes it’s simply someone who is early in their credit journey and hasn’t had enough time to build a longer credit history.
That’s why we encourage people not to self-diagnose. A quick review of credit can often identify opportunities, and in many cases, the things people worry about most are either manageable or easier to address than they expected.
Most first-time buyers around here have no idea these programs exist. What down payment assistance is actually available in King and Snohomish County right now?
Washington actually has some fantastic programs.
The Washington State Housing Finance Commission’s Home Advantage program helps many first-time buyers with down payment assistance. There are also local programs like ARCH for certain Eastside communities, and occasionally grant programs that don’t require repayment.
The tricky part is figuring out which programs fit your specific situation. That’s where having a conversation can save a lot of time, because eligibility depends on factors like income, location, household size, and the type of home you’re buying.
Pre-qualification versus pre-approval. People throw those terms around like they are the same thing. They are not, right?
Definitely not.
A pre-qualification is often based on information someone provides verbally. It’s a good starting point, but it doesn’t tell the full story.
A true pre-approval means income, assets, credit, and supporting documents have been reviewed. That’s what gives both buyers and sellers confidence.
In a competitive market, a strong pre-approval can absolutely make a difference. The good news is that most buyers can complete an application online, upload documents securely, and often receive a pre-approval much faster than they expect.
What is the real difference between the rate someone sees advertised and what they will actually pay? And what is this APR thing?
The advertised rate is kind of like seeing the starting price on a car.
It’s a real number, but it may not be the number that applies to your exact situation. Interest rates can vary based on credit score, down payment, loan type, property type, and many other factors.
APR includes some of the costs associated with obtaining the loan and gives a broader picture of the overall cost of financing. We always encourage people to look at the whole picture rather than chasing the lowest advertised rate.
Walk us through the fees. What are closing costs really, and what is the number that surprises people the most?
Closing costs are simply the collection of expenses involved in completing the transaction.
They can include lender fees, title and escrow fees, recording fees, prepaid property taxes, homeowners insurance, and other items required to finalize the loan.
The biggest surprise for many first-time buyers is that closing costs are separate from the down payment. Most buyers focus on saving for the down payment and don’t realize there are additional costs associated with closing. The good news is there are often strategies available to help offset some of those expenses.
Someone finds a house they love on a Saturday afternoon. Can they even reach you, or are they stuck waiting until Monday?
This is one of the biggest advantages of working with a family-owned mortgage company.
Real estate doesn’t happen Monday through Friday between 9 and 5. Most people are touring homes on evenings and weekends.
If one of our clients finds the right house on a Saturday, we’re available. We regularly answer calls, update pre-approval letters, run payment scenarios, and help buyers make informed decisions when opportunities come up. In a fast-moving market, waiting until Monday isn’t always an option.
What is the one mistake you watch first-time buyers make over and over, the one you wish you could stop before it happens?
Waiting.
We regularly meet renters who have spent years assuming they aren’t ready. One conversation later, they discover they qualify today, or could qualify much sooner than they thought.
The challenge is that people often rely on information from friends, social media, or something they heard years ago. By the time they reach out, they’ve often spent months, or even years, worrying about a problem that wasn’t actually a problem.
Rates have been all over the place. Should someone wait for them to drop, or is that a trap?
Everyone wants the perfect timing.
The problem is nobody knows exactly when rates will move or by how much. What we do know is that when rates fall, buyer demand often increases, which can create more competition and put upward pressure on home prices.
We’re believers in buying when you’re financially and personally ready. If rates improve later, refinancing may be an option. But you can’t go back and buy today’s home at yesterday’s price.
If a renter reading this is sitting on the fence right now, what is the very first step? Not the scary version. The first small, doable thing.
Just have a conversation.
Not an application. Not a commitment. Not a promise to buy a house next month. Simply a conversation.
Most people walk away feeling relieved because they finally know where they stand. Sometimes the answer is “you’re ready now.” Sometimes it’s “here are three things to work on over the next six months.” Either way, uncertainty gets replaced with a plan.
For someone who already owns and is thinking about moving up, what is the biggest thing they get wrong about buying and selling at the same time?
Many homeowners assume they have to sell first before they can even think about buying.
Sometimes that’s true. Often it isn’t.
There are more options available today than many people realize, and the best strategy depends on their equity, goals, and timeline. The families who have the smoothest transitions are usually the ones who start planning before they start packing.
Here is what I noticed reading their answers back. Almost every one of them ends in the same place. Just have a conversation.
That is it. Not an application. Not a commitment. A conversation that replaces the worry in your head with an actual plan.
If you have been sitting on the fence, that is the first door. You do not have to walk through it today. You just have to knock.
Wherever you are starting from, let’s talk it through.
Reach out and I will connect you with Hans and Camey, or we can just talk through where you stand. No rush, no pressure, only a real conversation between people who have been where you are.
P.S. When I asked Hans and Camey the one mistake they watch first-time buyers make over and over, their answer was a single word. Waiting. I have never read a truer answer to anything.
Hans & Camey Westermark, Family First Mortgage
Hans and Camey are the husband-and-wife team and owners of Family First Mortgage, an independent brokerage based in Bothell. Together they help homebuyers navigate one of the biggest financial decisions of their lives with education, transparency, and a lot less stress. They believe every buyer deserves to understand their options, not just receive a loan approval. When they are not helping clients, you will usually find them with family, exploring the Pacific Northwest, or supporting the communities they serve.
