Showing posts with label mortgage payments. Show all posts
Showing posts with label mortgage payments. Show all posts

Tuesday, May 3, 2016

3 Mortgage Myths to Correct Before Buying a House in Northern Virginia

Did you know misconceptions and myths are what holds would-be homebuyers back most in Northern Virginia? Buying a home is indeed one of the biggest steps you will ever take, but don't allow what you assume is true or required to become fact without first doing the research.

 As your local real estate expert in NoVA, I'm happy to help you clear a few things up! Below are three myths surrounding mortgages that may be keeping you from purchasing your dream home in Alexandria, Arlington, Centreville, Falls Church and the surrounding areas:

 Myth: Your best credit scores will be used
When you apply jointly with another borrower for a mortgage in Northern Virginia, your lender will take the middle of three credit scores from the three credit reporting bureaus, then use the lowest score between the two borrower's middle scores. For instance, if your middle score was 780, but your co-borrower's middle score was 700, many lenders' decisions would be based on the 700. 

 Myth: Your quoted rate is the one you'll secure
I've emphasized the importance of shopping around for a mortgage rate in the past, but it is important to note that your quoted rate is not necessarily the one you will secure. Unless you are locking in the rate that day, the rate quotes are subject to change. You will find you need to gather quotes throughout your home buying journey until you've found the right property and are ready to lock down a rate.

 Myth: Fixed-rate mortgages are the only option
While 30-year fixed-rate loans are common among homebuyers, they are not the only option and may not be the right option for you. The rate and payment with a 30-year fixed-rate mortgage will never change, but keep in mind that the longer the loan is stretched, the higher the rate. Ask yourself how long you will stay in the home you're planning to purchase as an adjustable-rate mortgage could be a better fit.

 Do not hesitate to contact me with any questions about buying a home in Northern Virginia!
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. 
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Tuesday, December 8, 2015

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. 
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Tuesday, October 6, 2015

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:

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. 
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Tuesday, July 14, 2015

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!
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. 
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Tuesday, May 26, 2015

How to Shop Around for a Mortgage in Northern Virginia, DC

When it comes to homebuyer mistakes in Northern Virginia and DC, perhaps the biggest one is failing to shop for a mortgage. Many homebuyers simply take the first mortgage they are offered without knowing they could have secured a better loan, with lower fees and a lower rate. 
As you shop for a home in Annandale, Springfield, Centreville, McLean, Mount Vernon this summer, make sure you then also take the time to shop around for a mortgage. Use the following tips to ensure you're getting the best possible deal and loan for your dream home in NoVa:

 First, research your budget
Use a mortgage calculator to determine how much you can afford in a NoVa home. Include all of your monthly expenses, including property taxes, monthly maintenance and utilities, insurance and any private mortgage insurance (PMI) that you may acquire. Once you've determined your budget, you can then proceed with shopping for the best rate.

 Research the different types of mortgages
It's important that Northern Virginia homebuyers know the different types of mortgages— from fixed rate mortgages to adjustable rate to those that allow payment adjustments. Each loan type will come with its own set of fees, terms, requirements and limitations. For instance, you may receive a penalty for paying off your mortgage early with some loans. Take the time to find which loan type is best for you.

 Compare loans among lenders
On one specific day, gather quotes from several lenders and even brokers. Lenders can give out different rates and fees to consumers on the same day for the same loan, so it's important to shop around. Once you have a list of rates from many lenders, then you can go about finding which is the best deal.

 Ask for help
If finding lenders and brokers in the NoVa area is stressful for you, always ask for help! As your local real estate professional, I can provide suggestions for experts in the mortgage space that can help you find the best rate for your new home loan. A recommendation can oftentimes put you at ease, knowing that you are working with a trusted pro.

 Shopping around for a mortgage in Northern Virginia and DC can save you thousands of dollars over the life of your loan, so don't leave it out of the mix! I'm happy to help walk you through the process of buying a home and answer any questions to calm your fears. Just 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. 
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Tuesday, April 14, 2015

What Lenders Are Looking for in Northern Virginia Homebuyers This Spring

House hunting is indeed an exciting aspect of the spring real estate market— from browsing available properties online, visiting open houses and exploring desired neighborhoods in NoVa. However, that is just one small part of the homebuying process.

 In a previous blog post, I explained the importance of being prepared before you begin the house hunt this spring. It is wise to take the steps mentioned in the post and meet with a lender to get pre-approved. 

 If you have yet to meet with a Northern Virginia lender to learn if you're able to qualify for a mortgage, here are four things they will be looking for in potential buyers:

 1. Capacity
Lenders in NoVa and DC will want to know you have the ability to pay back the loan on a home. They will look at your income, your current employment and employment history, your monthly payments or debts (such as credit card payments) and your savings to decide if you can comfortably afford a mortgage every month.

 2. Credit
Your credit score, as you can imagine, plays a major part in deciding if you will be granted a mortgage loan. Lenders in Northern Virginia will look at how well you have done paying your bills on time, in addition to other debt payments. It is also recommended to try to improve your credit score before applying for a mortgage to increase your chances of being approved.

 3. Collateral
Lenders will look at the value of the home you intend to purchase in Northern Virginia when deciding if you qualify to take on a mortgage. 

 4. Capital
In order to determine whether to grant a homebuyer a loan, the lender will look over the money and savings you have on hand in accounts, plus any investments you have or other assets that may be sold for capital. They will want to see that you have at least two months of reserves to cover a mortgage payment and that you can manage your money well to pay back the debt of the loan.

 If you are ready to begin the homebuying process in the NoVa and DC area, I am happy to help! Contact me today to discuss what steps you should take first!
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. 
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Tuesday, February 24, 2015

4 Things Northern Virginia Buyers Must Do Before House Hunting This Spring

Spring is typically the busy season for real estate and this year will be no exception in Northern Virginia. Some residents are finally prepared to make a move as equity returns to more homes, some are now in a position to stop renting and buy their first home and some are ready to move up before mortgage rates increase.

We're getting closer to the start of the new season, but there are still a few tasks you must-do before you even start your spring house-hunting. 

File your taxes
It is tax season after all! Lenders will want to see your most recent tax return to show your income when you're preparing to buy a home in Northern Virginia. If you are making payments now or are filing an extension to file your return later, the lender will require additional documents to confirm your income. Regardless, the bank will want to see your federal tax return prior to your purchasing a home.

Get other financial documents ready
Preparing to buy a home this spring is a process that will require documents like W-2's, 1099's and old tax returns to show your income for the past two years. The more assets you can show, the better. What lenders want is the proof that you have funds to cover at least two months of mortgage payments, plus insurance.

Check on your credit
Credit scores are important to homebuyers in NoVa, so look into your report now. Any errors you find can take months to fully correct which is why working slightly ahead of your home buying timeline is always advised.

Research the market
Before you can start house hunting in Alexandria, Arlington, Springfield or Annandale, it's helpful to get pre-approved, research how much you can comfortably afford and take note of home prices in the area.

Start shopping smarter for homes in Northern Virginia this spring. Don't wait until you find a home you love to do the prep work— I'm here to help! Have questions? I have years of experience in real estate to answer them!
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. 
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