Tam’s Tuesday Tip – Say What?

Alexandria VA Real Estate – What did that listing agent just ask me?  If you’re in the market to buy a home in Alexandria VA, then watch today’s Tuesday Tip, where I answer the question.

Buying A Home In Alexandria VA -
Here Are My Top Lenders To Help With Mortgage Approval

Before you get geared up to look at homes for sale in Alexandria VA, invest the time in meeting with a local mortgage lender to help you with your mortgage approval.  Getting approved for your mortgage will help you in a variety of ways:

1. First, your mortgage approval will tell you exactly how much money you can spend.  And whether you know it or not, it’s all tied to your credit report.  Interest rates are credit score driven, so the higher your credit score, the lower your interest rate on your mortgage.
2. Your mortgage approval will let you know what type of financing you’ll be using, and that means knowing how much you’ll need for a down payment.  The 100% financing and ‘no money down’ mortgage programs are still available, and again, they’re credit score driven.  So if you’re aiming to buy a home for sale in Alexandria VA with no down payment, then a lender can tell you if you qualify.
3. Your mortgage approval will let you know how much you’ll need in closing costs.  For example, if a lender offers a no money down program, but charges a loan origination fee, then that means you’ll have to pay interest up front on your mortgage, and that will be considered part of your closing costs.  You may be able to take advantage of obtaining a loan with no down payment, but doesn’t mean you won’t have any closing costs.
4. You’ll get a free credit report.  Getting your mortgage approval is free, and it requires a lender to pull your credit report.  If you’re not quite in a position to buy a home, your lender can help you by putting together a game plan to increase your credit score so that you can take advantages of lower interest rates.

Choosing your mortgage lender is an important step in the homebuying process.  Here are my top local lenders (in no particular order):

• Tim Curtin, Americorp Mortgage Services
• Patrick Cunningham, First Savings & Trust Mortgage
• Brian Bonnet, George Mason Mortgage
• Cindy Small, Union Mortgage Group
• Kelly Wadsworth, Wells Fargo Home Mortgage
• Carey Meushaw, George Mason Mortgage

All of these lenders offer a variety of programs to fit your financial needs.  From grants, to first-time buyer programs, to no mortgage insurance programs, to VA loans, FHA, and conventional, these lenders take the time to ask the important questions to help you finance your new home purchase.

NAR Video Explaining The FHA Increase That Will Take Effect April 1 2012

In a recent blog post, we brought you information on the changes to the FHA costs that will be taking effect starting April 1.  The National Association of Realtors has produced a video which explains the changes, and why they are being implented.

Alexandria VA Homebuyers Will Pay More After April 1 With FHA Loans

  Time is money.  And if you’re looking at homes for sale in Alexandria VA, and will be buying with an FHA loan, then expect to pay more after April 1.  Cindy Small of Union Mortgage Group provides the following update on the fee increases for FHA loans and what they mean for buyers in terms of closing costs and monthly payments.

FHA is raising mortgage insurance dramatically and considering several other changes. 

Homebuyers who act now can beat the increase, by indentifying a home and having a written accepted purchase contract.  There are two dates (April 1^st and June 1^st) and two changes (up front mortgage insurance which is collected at closing & annual mortgage insurance increases) that you need to be aware of .

 1^st Change Effective ON APRIL 1^{ST,  2012}

The Up Front Mortgage Insurance Premium (UFMIP) will be increased from 1 percent to 1.75 percent of the base loan amount…regardless of the amortization term or LTV (loan-to-value) ratio. FHA will continue to permit financing of UFMIP into the loan amount.  

What does that mean if I’m buying a home now?  How will that affect my out of pocket costs at closing?
Let’s use two examples…one is a $300,000 purchase and the other a $500,000 purchase.  Both are with 3.5% as the down payment… 

$300,000 Purchase Price                                         $500,000 Purchase Price
  – 10,500 @3.5% down                                               -17,500 @3.5% down
$289,500 UFMIP      1% = $2,895                            $482,500 UFMIP      1% = $4,825
  New UFMIP 1.75% = $5,066                           New UFMIP 1.75% = $8,750

2^nd Change Effective ON April 1^st…

 The Temporary Payroll Tax Cut Continuation Act of 2011 requires FHA to increase the annual MIP it collects by 0.10 percent. This change is effective for case numbers assigned on or after April 1^st.

 What does this mean? A ‘case number’ is assigned to your loan once you have received an accepted offer, and your lender begins processing your loan and preparing it for underwriting.  This usually happens within 2-3 days after the lender has received your signed purchase offer.

Currently the annual MIP or mortgage insurance premium (what we often refer to as the “Monthly MI”) on an FHA loan depends upon the down payment amount.  Below is the current vs. what it will become on April 1^st.

                     Again, these changes are effective for case numbers assigned on or after April 1^st

**ADDITIONAL CHANGE TO JUMBO FHA ON JUNE 1^{ST **}

FHA is also exercising its statutory authority to add an additional 0.25 percent to mortgages exceeding $625,500. This change is effective for case numbers assigned on or after June 1, 2012.

What does this mean?
Let’s us two different examples…one is a $300,000 purchase and the other a $700,000 purchase with 3.5% down.

$300,000 Purchase Price                                         $700,000 Purchase Price
  – 10,500 @3.5% down                                               -24,500 @3.5% down
$289,500 Base Loan Amount                                    $675,500 Base Loan Amount   
        New UFMIP 1.75% = $5,066                                    New UFMIP 1.75% = $11,821
 $294,566 Loan Amount with UFMIP financed          $687,321 Loan Amount with UFMIP  financed
1.25% Mo. MIP = $3,682/12 = $307 per mo.             1.50% Mo. MIP = $10,310/12 = $859 per mo.

Alexandria VA Homebuyer Education Class – March 10 2012

If you are looking to buy a home within the next 3-6 months, then you’ll find a lot of helpful information at the Alexandria VA Homebuyer Class that will be held Saturday, March 10 from 10:00 AM to 12 NOON, at the Charles Houston Recreation Center in Old Town Alexandria.  Come and learn about the Alexandria City Office of Housing programs, grants for first-time buyers, and the top things you can do right now to be in the best position to buy a home.

See the Google map below for the direction to the Charles Houston Recreation Center, located at 905 Wythe Street, Alexandria, VA 22314.  Closest metro is Braddock Road station on the blue and yellow lines.

Alexandria Homebuyer Class Registration

 Another Condo For Sale In Palazzo At Park Center Under Contract

Palazzo at Park Center Condos For Sale –  Alexandria VA listing agent Tamara Inzunza has listed another condo for sale at the Palazzo at Park Center, that has just gone under contract!  This ground level unit offered two bedrooms and one full bath.  Interior features included wood laminate flooring, an updated kitchen with stainless steel appliances and granite countertops, and palladian windows.  The exterior has two balconies, one off of the living room, and the second off of bedroom #2.  Amenities at the Palazzo at Park Center include an outdoor pool, fitness center, and clubhouse.  This unit conveys with one underground parking space.

        

Northern Virginia Real Estate Market Report for January 2012 – Video

Houses are being snapped up quickly.  There are officially more buyers than there are sellers, so in case you didn’t get the memo…we’re in a sellers market.

Tam’s Tuesday Tip – What Makes You Click

Please join me in helping my future sellers.  Will you tell me, “What Makes You Click?” when you’re looking at Alexandria VA homes for sale online?  Inquiring sellers really want to know.  Watch my quick video below and comment here or on my Facebook page.

The first 10 comments, names will be entered into a drawing for a $50 gift card to the Cheesecake Factory.

Northern Virginia Home Sales Stats for December 2011 -
We’re In A Sellers Market

National doom and gloom?  Who knew that Northern Virginia was in the middle of a sellers market?  According to the real estate sales statistics for December 2011, that’s the real deal.  Here’s the video:

Alexandria VA Real Estate – Are There Any Black Friday Deals?

Undoubtedly your email inbox has been flooded with Black Friday and Cyber Monday deals.  And according to news reports, it’s actually been a record setter.  But what about real estate?  Are there ever any ‘Black Friday’ deals when it comes to buying houses?

I’m working with a couple of buyers right now who would say so.  Scenario #1: My buyer found a ’steal of a deal’ on a foreclosure.  It was a 2BR/2BA condo in the building where he wants.  This home was priced to sell.  My buyer went out of town with the intention of submitting an offer upon his return.  Not only was the condo under contract, but so were four others out of the seven that we saw!  File this one under  ’the one that got away’.  Scenario #2: My buyer found a short sale condo that had already had multiple offers.  After submitting an offer, he was disappointed only to learn that the seller selected a cash offer that was lower.

Here in Northern Virginia, we have multiple cycles in our real estate market.  We have the traditional spring market, where historically sellers are able to get the most for their home, but that’s also when buyers usually compete the most.  There’s also the ’post-Father’s Day market’.  This is the time after school ends and families take a vacation, then decide to beef up their home search in order to be settled in before school starts.  And finally, there’s the holiday market.  That’s the market that we are in now.  This is the market where you will most likely find ’HAVE TO SELL’ sellers.  You’ll also face some competition among other buyers because the market will include buyers who want to be in their homes before Thanksgiving, before Christmas, or before December 31 for tax purposes.

Home affordability is at an all time low in Northern Virginia.  Not only will your pre-approved dollar go farther than it’s gone in the past five years, but with seller concessions (paid closing costs and home warranties), there are deals in place that will be contingent upon you closing before December 31.

You may want to keep an eye out of the Fannie Mae foreclosures.  Did you know that you can purchase a Fannie Mae foreclosure with as little as $500?  Here are the newest foreclosures that have hit the market in Alexandria, are you ready to go house shopping yet?