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.
Visit Our Website
View Northern Virginia Homes for Sale
Become Our Facebook Fan
Follow Us On Twitter
Connect With Us On LinkedIn

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.
Visit Our Website
View Northern Virginia Homes for Sale
Become Our Facebook Fan
Follow Us On Twitter
Connect With Us On LinkedIn
Contact Us

Reference: www.bankrate.com

Last Minute Holiday Shopping in NOVA!

Still haven’t found that one gift?  Last minute gifts can be stressful and can add more stress to our busy lifestyles here in NOVA.  I want to help you place that red check mark on your list! We have great shops in Fairfax that you’ll be sure to find that one unique item that I promise won’t be re-gifted for next year.  Forget the mall and step out of the big boxed stores.  Look right in your local area for the right item that will surely put a smile on that special someone’s face.  

Some places I have discovered over the years I would like to share with you. I frequently go to local boutiques not only for these holiday gifts but any time I need to find something I can’t anywhere else.

Need a special item for a lovely uptown lady in your life?  

Undeniable Boutique (Fairfax Corner, 11891 Grand Commons Ave. Fairfax, Virginia 22030) www.undeniableboutique.com carries clothing and accessories for women who want to dress for the occasion but not like everyone else.

You boss, husband or dad adores good cigars but you have no idea how to pick them out? 

Fairfax Cigar Town (118877 Grand Commons Ave. Fairfax, Virginia 22030) www.cigartowns.com Invites you to visit their location that is family operated and owned and will take the time to make sure you leave satisfied and educated.  

Heading to the families for the holiday and need to get your host a fab gift?  

Head to Oakton Wine Shop (2952 Chain Bridge R. Ste. A Oaktonm VA 22124) www.oaktonwineshop.com which carries wine, cheese and beer.  You’re sure to satisfy with the wide array of reasonably priced wines, expensive ones too and more than 40 handcrafted beers.

Also, to help your holiday spirit remember the Fairfax High School Winter Concert is this Thursday, December 20^th at 7 p.m. The Fairfax High School Choral and Orchestra Department present a performance of Christmas tunes. Bring an unwrapped gift for a child to donate to the Toys for Tots drive.  Location: Fairfax High School, 3501 Rebel Run, Fairfax; 703-219-2355; fhschorus.net and the event is free.

I hope this helps with some last minute ideas and I truly wish you all a happy and safe holiday season.  I cannot believe the holiday is already near.  I am blessed to reside in such a great area in America and so happy to serve the community with their housing needs.  I hope all your homes are warm with love this holiday season.

Happy Holidays!

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