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Buyers class draws crowd

By Rolf Boone | The Olympian • Published February 22, 2009

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OLYMPIA – A group of mostly couples in their 20s took the first steps toward buying a house Saturday by participating in a five-hour class to learn more about the homebuying process.

The class, sponsored by the state Housing Finance Commission, is required by the state agency if prospective homeowners plan to use one of its programs, such as borrowing money for a down payment on a new house.

Teaching the class Saturday at the Greene Realty Group office in Olympia were Eagle Home Mortgage senior home loan consultant Nona Woodard and real estate agent Shelly Field of Greene Realty.

Together they covered the basics of homeownership, such as picking a real estate agent and lender, understanding credit scores and budgeting for a mortgage payment.

Prospective homeowners can prepare themselves for a higher monthly mortgage payment as renters, Woodard said. If monthly rent is $800 a month and a mortgage is $1,200 a month, renters should pay rent, then set aside an additional $400 to see if they can afford the higher payment, she said.

"We don't want you go to into payment shock," Woodard said. "Be comfortable with the (mortgage) payment you're going to commit to."

Matt and Audrie Shellhart of Olympia attended Saturday's class as longtime renters looking to buy a house for their growing family. With them was their 8-month-old daughter Aurora.

Audrie said she has taken some initial steps toward buying a house, such as calling a couple of real estate agents, but acknowledged that she was intimidated by the process.

She said she and her husband have been careful with their money and think they could afford a monthly mortgage of $1,100, up from the $640 they pay in rent. Their goal is to find a house in Olympia, close to their church, Matt said.

The good news is that the current South Sound housing market for the Shellharts and others is a buyer's market, Field said.

An agent might show prospective buyers a house that appears to be beyond their budget only because they know "you can make a lower offer," she said. Home prices, too, have fallen in recent months, according to Northwest Multiple Listing Service data.

In the year-over-year period ending in January, Thurston County median prices for single-family residences and condos fell 8.59 percent to $239,950 from $262,500, the data show.

Brian and Leslie Thompson of Tumwater joined the class because they said they were tired of being renters after six years of renting a condo, paying $950 a month. Leslie also hoped to better understand the jargon of the real estate industry, acronyms such as ARM (adjustable rate mortgage) and FHA (federal housing administration), she said.

Leslie's other concern was the home-inspection process because she fears buying a house that appears OK from the outside but has hidden defects. Other than that, she seeks a house in a rural area that will offer more privacy.

Brian's wish list was shorter:

"I just want a garage," he said.

Rolf Boone is a reporter for The Olympian. He can be reached at 360-754-5403 or rboone@theolympian.com.