Sell your home in NOVA now!

Why you should list your home NOW! 

Buyers that are looking to buy now are more serious buyers than the warmer months.  

People tend to shop around and also have more options in warmer months.  So, when people need to move and quick it doesn't matter the weather.  Buyers in the cold season tend to not only be more serious buyers but also have a quicker turn around.   Plus, there is less competition because most home sellers wait till the spring season. Also, better for you to sell now so when you need to buy you have a better opportunity to purchase durring the hot spring selling season and have more options.  

This will allow you to sell high and buy low.

Remember:

Buyers are Serious

There is Less Competition

You'll have a Quicker Selling Process

No Better Time to Move-Up in a Larger Home - Prices are projected to rise by 16% by 2016   

If you need more information or help selling your home, please don't hesitate to contact me with any questions.  I am here to help!

Earle Whitmore
Long & Foster Real Estate, Inc.
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More on Mortgage Payments for NOVA Homebuyers in 2013

The down payment presents the biggest obstacle to homeownership for most buyers, especially first-time buyers and those in lower income brackets. Fortunately for those people, lenders have become more willing to underwrite mortgages with small down payments.  If you need some help finding a good lender I can give you some great people in the NOVA market.

Most mortgage lenders require a cash down payment between 10 to 20% of the sale price. Some lenders have zero-down mortgage programs. If you can put down more than your lender requires, say 25 to 30%, your lender may be willing to overlook credit blemishes, approve your loan without verifying your income or both. If you come up short on the down payment, with less than 20% of the buying price, before your loan is approved you may have to obtain private mortgage insurance, or PMI, to protect the lender.  You can often lower your mortgage payment or afford a more expensive house by putting more money down.

The Lowdown on Down Payments:

If you make $40,000 a year your monthly mortgage payment (28% of gross income) would be $933. Your total monthly debt should be no more than 36% of your gross income; so in this senario: $1,200. The bigger the down payment, the more expensive the house you can buy.  So, let's say your monthly mortgage payment of $933 has an interest rate of 7.5%. In a 30-year fixed-rate mortgage, that monthly payment covers a total principal of $133,435.45. With 10% down, that mortgage would cover a house worth $148,262. With 20% down, the house price would be $166,794.

If you need more information or help determining how much you can afford, please don't hesitate to contact me with any questions.  I am here to help!

Earle Whitmore
Long & Foster Real Estate, Inc.
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Reference: www.bankrate.com

Finding Your Home in Fairfax Country in 2013

With many choices and options when buying a home in Fairfax Country how do you settle or make a choice?  The biggest and most important thing to consider is price. Always start with a price range!

Mortgage lenders are concerned with your ability to repay the mortgage especially in today’s economy. To determine if you qualify for a loan, they will consider your credit history, your monthly gross income and how much cash you have for a down payment. Start saving!  Have around 20 to 30 percent of the home’s cost to have for a down payment.

The standard debt-to-income ratios are the housing expense ratio or front-end, ratio shows how much of your gross monthly income would go toward the mortgage payment. Your monthly mortgage payment, including principal, interest, real estate taxes and homeowners insurance, should not exceed 28 percent of your gross monthly income. To calculate your housing expense ratio, multiply your annual salary by 0.28, then divide by 12 (months). The answer is your maximum housing expense ratio.

The back-end ratio is the total debt-to-income, that shows how much of your gross income would go toward all of your debt obligations, including mortgage, car loans, child support and alimony, credit card bills, student loans and condominium fees. Your total monthly debt obligation should not exceed 36 percent of your gross income. To calculate your debt-to-income ratio, multiply your annual salary by 0.36, then divide by 12 (months). The answer is your maximum allowable debt-to-income ratio.

When looking at Conventional loans your housing costs should be 26 to 28 percent of monthly gross income. FHA loans housing costs would be 29 percent of monthly gross income. 

In addition, lenders include the cost of taxes and insurance when calculating how much house you can afford.  Property taxes are part of your monthly mortgage payment, it is important to get an estimate of what yours would be.  Ask your real estate agent for the rates that apply in the area you want to buy. You must insure your property to obtain a mortgage monthly payment. Be sure to inquire about special requirements for hazard insurance, such as mandatory coverage for floods, earthquakes or wind. If you put down less than 20 percent of your home's value, you also will have to obtain mortgage insurance or take out a second loan, called a piggyback loan, to bring the first mortgage down to 80 percent of the purchase price. Both alternatives will raise your monthly payment.

If you need more information or help determining how much you can afford, please don't hesitate to contact me with any questions.  I am here to help!

Earle Whitmore
Long & Foster Real Estate, Inc.
Visit Our Website
View Northern Virginia Homes for Sale
Become Our Facebook Fan
Follow Us On Twitter
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Contact Us