5 Money-Saving Tips for Northern Virginia Homebuyers to Follow This Spring

While we are only days into the new season, this spring is already projected as a stand-out period for first-time buyers to enter the real estate market. Mortgage rates are low, home prices are rising in addition to rents and first-timers are ready to invest into something of their very own in Northern Virginia.

But when you are new to purchasing a home, you can overlook the many ways you can potentially save money in the process. Keep the following in mind as you house hunt this spring and as always, do not hesitate to reach out with any questions!

Look past cosmetic issues
Many first-time buyers in NoVA tour a home only to write it off because they didn't like the paint colors. Remember that these are only minor cosmetic issues and can easily be fixed! Look past the paint and if the home could work for you, you might want to act before the competition does!

Get pre-approved
This step may not save you money, but it will save you time when a seller is reviewing offers. A pre-approval letter shows you are serious about the purchase and that you have the funds to back up your offer. 

Don't open new credit cards
If you want to set yourself up to receive the best possible interest rate for your mortgage, it is wise to steer clear of opening any new lines of credit prior to applying. These hard inquiries on your credit report will remain there for up to two years and as a result, can cause a drop in your score.

Shop around for a mortgage
Even seasoned homebuyers in NoVA forget to shop around for a mortgage! Gather rates from different lenders on the same day in order to accurately compare terms and rates. Even the smallest different in percentage can equate to thousands over the life of the loan.

Work with an agent
Did you know working with a real estate agent saves you more money when both buying and selling a home than if you tried it on your own? I have decades of experience in assisting buyers navigate the market and can help you negotiate the best offer possible.

I happily serve the areas of Alexandria, Annandale, Arlington, Burke, Centreville, Chantilly, Clifton, Fairfax City, Falls Church, Great Falls, Herndon, Lake Ridge, McLean, Mount Vernon, Reston, Rosslyn, Springfield, Tyson’s Corner and Vienna. 

Earle Whitmore

Long & Foster Real Estate, Inc.
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Homeownership in Northern Virginia, DC Still More Affordable Than Renting

There is no doubt that homeownership in Northern Virginia and DC provides more benefits than renting, but given the latest news about rising costs, it is even more apparent. Experts predict rents will surpass inflation in 2016, rising three to five percent across the country.

A high demand for renting in past years has driven up costs and as a result, nearly half of all renters cannot afford to make the monthly payment. 

How is this so? Experts recommend that renters keep housing costs limited to no more than thirty percent of their monthly income. However, Harvard's Joint Center for Housing Studies reported the number of renters who now spend more than this amount rose to just over 21 million last year.  

Rents are increasing faster than wages and, as I mentioned above, are expected to rise above inflation this year. Homeownership is proving once more to be the more affordable option, thus prompting current renters to jump into the real estate market as first-time homebuyers.

What's more, mortgage rates are still dropping. The rate for a 30-year-fixed-rate mortgage is averaging 3.7 percent, while the rate for a 15-year-fixed-rate mortgage remains at just over 3 percent. Homebuyers in the Northern Virginia and DC area may be able to purchase a home for less than the cost of their rent payment! 

And while lower inventory may tend to push housing prices higher, it is the low mortgage rates that signal an opportune time for first-time homebuyers to find their ideal property. 

If you are ready to purchase a home in NoVA, do not hesitate to contact me! I have decades of experience in assisting buyers and together, we can find the best home that meets your needs and budget before the busy spring season arrives!

I happily serve the areas of Alexandria, Annandale, Arlington, Burke, Centreville, Chantilly, Clifton, Fairfax City, Falls Church, Great Falls, Herndon, Lake Ridge, McLean, Mount Vernon, Reston, Rosslyn, Springfield, Tyson’s Corner and Vienna. 

Earle Whitmore

Long & Foster Real Estate, Inc.
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Northern Virginia Homebuyers: What It Actually Takes To Qualify For A Mortgage

When it comes to buying a home in Northern Virginia and DC, you would be surprised by the number of potential buyers that sit back because they do not think they will qualify for a mortgage. However, the reality is that qualifying for a mortgage is simpler than you think and as a result, you are missing out on the many benefits of homeownership!

If you're sick of renting, given the increasing costs each year, and are ready to settle into a place of your own, now is the time! Don't allow yourself to put off homeownership any longer, just research the facts. Consider the following your checklist of what it takes to qualify for a mortgage: 

1. A Down Payment
Did you know nearly half of all homebuyers believe 20 percent is required as a down payment? With today's mortgage requirements, that is just not the case. Many homebuyers today are purchasing a home with as little as 3 to 5 percent down. There are many loan programs available to you that no longer require the standard 20 percent down. 

In fact, according to a survey of Millennials that recently purchased a home, 44 percent put down less than 10 percent.

2. A Credit Score
Lenders will take a look at your credit score to determine your ability to repay a loan, but that doesn't mean your score needs to be the best. Two-thirds of survey respondents said they thought they needed a "very good" credit score to buy a home, with "good" meaning over 780. 

Keep in mind that the average scores of approved conventional and FHA mortgages are much lower than 780. The average score for approved FHA loans is 687, while the average for conventional loans is 754. 

3. Employment History
If you have a stable employment history, lenders will be able to sidestep one more obstacle on the path to approving your mortgage. They will want to see that you have the funds to pay for your impending home loan and tax returns and payment stubs can help them to verify. 

Do not let your ideas of mortgage qualifications hold you back from purchasing a home this year! As your local real estate agent, I have years of dedication to clients and helping them achieve their homeownership goals. 

Give me a call today with any questions you might have!

I happily serve the areas of Alexandria, Annandale, Arlington, Burke, Centreville, Chantilly, Clifton, Fairfax City, Falls Church, Great Falls, Herndon, Lake Ridge, McLean, Mount Vernon, Reston, Rosslyn, Springfield, Tyson’s Corner and Vienna. 

Earle Whitmore

Long & Foster Real Estate, Inc.
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New Mortgage Closing Rules Will Help Northern Virginia Homebuyers

If you are planning to purchase a home in Northern Virginia going forward, you're in luck! New mortgage closing rules took effect on October 3 and are expected to help buyers understand the terms much easier than with past documents.

Prior to these new mortgage closing changes, homebuyers were given numerous sets of disclosures containing unfamiliar terminology— if you are not in the real estate industry or have purchased a home before. The new rules have reduced those disclosures down to two sets, containing eight pages in all, with clearer answers to common questions and streamlined information.

What do the new disclosures involve? Here are the two new documents you will see when you secure a home loan in NoVA:

1. Loan Estimate
The loan estimate is one of the two new disclosures included in the TILA-RESPA Integrated Disclosure Rule or TRID and you will receive this once your loan is approved. The loan estimate outlines the following:

• Expenses associated with your loan— including any pre-payment penalties and expenses in your escrow account.
• Expected future changes and interest rates.
• Your projected monthly mortgage, with taxes, insurance and other assessments.
• The estimated closing costs for the loan and how much you will need to have on hand at the time of closing.
• Information on what services buyers can shop for— including the appraisal, pest inspections and surveys.

Note that there is now a 10-day grace period for buyers to shop other loan options, from 15 to 30-year mortgages and adjustable and fixed-rate products.

2. Closing Disclosure

This document now replaces the HUD-1 Settlement Statement and Truth-in-Lending form given to buyers at closing and is available three days prior to your scheduled closing. This disclosure outlines the following:

• Final costs for both buyer and seller.
• Exactly what you will need to pay at closing.
• How much is paid to each real estate agent.

All part of the new "Know Before You Owe" initiative, these new mortgage rules will undoubtedly help Northern Virginia buyers avoid any surprises at the closing table. However, homebuyers in Alexandria, Annandale, Arlington, Burke, Falls Church, Fairfax and the surrounding areas should note that closings may now take 15 days longer— extended from 30 to 45 days.

If you have questions about buying a home in Northern Virginia, do not hesitate to give me a call!

I happily serve the areas of Alexandria, Annandale, Arlington, Burke, Centreville, Chantilly, Clifton, Fairfax City, Falls Church, Great Falls, Herndon, Lake Ridge, McLean, Mount Vernon, Reston, Rosslyn, Springfield, Tyson’s Corner and Vienna. 

Earle Whitmore

Long & Foster Real Estate, Inc.
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Should You Wait Until Next Year to Buy a Home in Northern Virginia?

There are many questions for homebuyers in Northern Virginia this summer— one of which may cross your mind as you're browsing available properties. Is now really the right time? Should you wait until next year to buy a home instead?

While only you can know what's right for you financially, it's important to remember that there will be a cost associated with waiting to buy. And it will be hundreds of dollars higher than this year!

Let's take a $250,000 house in Northern Virginia, for instance. With mortgage rates currently around 4 percent, your principal and interest will come out near $1,100. However, you decide to wait until next year to make that same purchase. Home prices are projected to appreciate by 5 percent over the next year which means that home will soon cost nearly $263,000. Interest rates will be higher also, meaning your new mortgage payment will be $1,400 instead of that initial $1,100!

Depending on your financial situation, the difference could be as high as $300 per month! Over the course of a year, with a new mortgage rate of 5 percent, the annual extra cost will come out to $2,600 or more!

What does that mean for your wallet? Think of it this way:

• It's your morning coffee ($2) every day and $10 spent for lunch
• It's dinner out every Friday night ($50, 4 nights per month)
• It's a new car with a monthly payment of $215-300 per month
• It's your yearly family vacation ($2000)
• It's a new deck or similar home renovation

If you don't have this much extra money in your budget to purchase a home next year, it may be wise to invest now! With my expertise in the Northern Virginia real estate market, I'm here to help you make smart home buying decisions and enjoy a stress-free process!

Contact me today!

I happily serve the areas of Alexandria, Annandale, Arlington, Burke, Centreville, Chantilly, Clifton, Fairfax City, Falls Church, Great Falls, Herndon, Lake Ridge, McLean, Mount Vernon, Reston, Rosslyn, Springfield, Tyson’s Corner and Vienna. 

Earle Whitmore

Long & Foster Real Estate, Inc.
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Older Homes in Northern Virginia More Appealing to Many Buyers

For homebuyers in Northern Virginia today, there are many choices associated with local real estate. From when to buy or when to sell, which mortgage is best and which community to move into, there is also one other important question homebuyers must ask themselves— new construction or existing? 

The prices can vary dramatically and while you may prioritize having a brand-new home over a lived-in property, it's important to consider the financial differences between the two. 

New Construction Upgrades
When you visit a model home in a community like Fairfax City, Centreville, Reston, Mount Vernon or McLean, it can be easy to feel attached to all of the modern features. However, each of those upgrades comes with a price tag and it can be a hefty one at that. When you realize how much everything you want in the home will cost, older homes start to become more appealing.

More available, less expensive
Older homes in Northern Virginia are typically less expensive than new construction and more readily available in the real estate market than newer homes. Sales of newly-built homes have been hovering around historically low levels.

Troublesome Financing
Newer homes can come with larger price tags and because of this, can be harder to finance. With stricter lending requirements, homebuyers are forced to comply with traditional guidelines of down payments and debt to income ratios. If your home will be using more than 30% of your household gross income to cover living expenses (mortgage, taxes, insurance), lenders may not see that as a sound purchase.

Commute Cost and Time
Oftentimes, new construction homes are built where land is less expensive, which can mean  outside of town. While living in the suburbs of DC can cost you more in terms of commute time, it is worth a look with your real estate agent to see which older homes are closer to than new construction developments.

As your local real estate agent, I can help you determine which style of home and location are best for you and your needs. Contact me today to discuss!

I happily serve the areas of Alexandria, Annandale, Arlington, Burke, Centreville, Chantilly, Clifton, Fairfax City, Falls Church, Great Falls, Herndon, Lake Ridge, McLean, Mount Vernon, Reston, Rosslyn, Springfield, Tyson’s Corner and Vienna.

Earle Whitmore

Long & Foster Real Estate, Inc.
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How to Arrange Furniture in Your Northern Virginia Home

When it comes to creating an inviting space in your Northern Virginia home, it's not all just about hanging a wreath on the door and setting out the welcome mat. Creating an ideal space is much about how your furniture is arranged inside and how easily your guests—or potential homebuyers—can navigate it. 

As you prepare for the new fall season, give your home a spruce by moving furniture around. These arranging tips will help your home in Northern Virginia feel more open and bonus, boost appeal for homebuyers if you're selling the property.

Find the Focal Point
What is the focal point of the living room in your Northern Virginia home? Is it a great view or a fireplace or maybe just the television? Start by placing the biggest piece of furniture directly facing the focal point and angle all other pieces toward it. For instance, the couch should be placed straight in front of the television with armchairs angled on each side.

Direct through the Space
Find the doorways of the room and allow a straight path through the space. This allows guests and potential NoVA homebuyers to easily move from room to room. Imagine there is a line from doorway to doorway and create a trail on either side of it.

Keep Symmetry in Mind
While it is important to mind the focal point of the room, it's also important to encourage conversation and interaction with furniture arrangement. One common way to do this is to move two couches to face each other, keeping the focal point on one end. No one has a direct view of the focal point, thus making the set up great for entertaining. 

If you're getting ready to sell your home in the Northern Virginia area, I'm here to help! I have decades of experience to assist you with the sale and also shed light on what homebuyers are looking for in a home, including what appeals to them with home staging. Contact me today to chat about how you can boost your home's image to buyers.

I happily serve the areas of Alexandria, Annandale, Arlington, Burke, Centreville, Chantilly, Clifton, Fairfax City, Falls Church, Great Falls, Herndon, Lake Ridge, McLean, Mount Vernon, Reston, Rosslyn, Springfield, Tyson’s Corner and Vienna.

Earle Whitmore

Long & Foster Real Estate, Inc.
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Baby Boomers Staying Put in Northern Virginia Real Estate

Despite recent reports of the Baby Boomer generation looking to downsize, it seems just the opposite is true in local Northern Virginia real estate  Baby boomers have long dominated the single-family home market and aren't showing any signs of moving to smaller spaces just yet. 

Previous real estate predictions of the past months (and even years) forecasted boomers downsizing once they hit the age of 65 and become empty nesters, believing they would move into a condo, townhouse or apartment. Now, even housing giants such as Fannie Mae are coming forth with a new outlook that has boomers staying put in their single-family homes.

"There's a perception, particularly in many media reports, that this massive generation born between 1946 and 1964 is altering its housing consumption," said one Fannie Mae researcher told the Chicago Tribune. "It's true that they're becoming empty nesters in droves. But by one measure, the proportion of boomers who live in single-family homes actually increased between 2006 and 2012."

In fact, a recent AARP survey found that 9 out of 10 boomers want to stay in their current single-family home as long as possible. For some, it could be due to their home value dropping or like some Northern Virginia homeowners, they could still be underwater in their mortgage and waiting for the right time to sell. Some baby boomers in Alexandria, Arlington, Annandale, Herndon, Mount Vernon or McLean  may even wish to hold on to their low mortgage rate instead of selling their home.

And while some boomers in Northern Virginia may be looking to downsize, they will likely purchase a smaller single-family home instead of purchasing a condo or townhome. 

If you're looking to purchase a new home in Arlington, Alexandria, McLean, or Fairfax  I would be happy to show you properties from single-family homes to townhomes and condos. I have nearly 3 decades of local real estate experience and together, we can find you a home that works for you and your family, no matter what stage of life you're in. I look forward to hearing from you!

I happily serve the areas of Alexandria, Annandale, Arlington, Burke, Centreville, Chantilly, Clifton, Fairfax City, Falls Church, Great Falls, Herndon, Lake Ridge, McLean, Mount Vernon, Reston, Rosslyn, Springfield, Tyson’s Corner and Vienna.

Earle Whitmore

Long & Foster Real Estate, Inc.
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