Mortgages With Low Down Payments

Most of the news about the housing market has been good in recent months; we are recovered and moving on up. That's good news for buyers and sellers, but we are now seeing more buyers entering the real estate market than before the crash. At first the market recovery was almost too quick for many buyers; prices were rising fast, but we now see a steadier market with better affordability. The other big change we see is that the tightened lending regulations are able to open up at this point. More buyers are now able to buy with low or no down payment options.

VA Loan
The Department of Veterans Affairs provides guaranteed home loans to qualified veterans. Borrowers can buy with zero down payment, and there is no mortgage insurance. The borrower does pay a funding fee, which can range from 2.15-3.3%. That funding fee can be added into the total loan amount and paid as part of the monthly payment. The funding fee is determined by the type of service the veteran gave, whether it was National Guard, Reserves, or enlisted/officer in the military and by whether or not it is the borrower's first VA loan.

Navy Federal
Navy Federal Credit Union offers mortgages with no down payment to members of the military, Department of Defense, and their family members. The loan must be used for a primary residence, and it has a funding fee, like the VA Loan. The Navy Federal loan is only 1.75%, which gives it an edge over the VA Loan.

USDA
The Department of Agriculture supplies home loans, and not just for rural areas. They usually run out of money because of the popularity of this program. USDA loans have no mortgage insurance. They charge a 2% guarantee fee upfront, and then each year the borrower is charged 0.5% of the loan balance.

Mortgage Insurance
For borrowers with strong credit, this option allows a down payment as low as 3%. Private mortgage insurance (PMI) has stricter requirements than an FHA Loan (below), but it can cost less over the loan term. Another advantage of this over an FHA loan is that the PMI can be cancelled once the loan is under 80% of the mortgaged home's value.

FHA
The Federal Housing Administration offers loan products to borrowers with imperfect credit and not a lot of cash. This isn't the cheapest loan option, but it gives more buyers the opportunity to enter the real estate market, which is better for everyone. There is a premium of 1.75% charged at the start of the loan, and if the borrower paid the minimum down payment (3.5%), there is also an annual premium of 1.25%. This makes for a higher monthly payment on a similar property to a conventional loan, so borrowers' affordability is lowered in comparison.

No matter what your credit situation and down payment ability is, it is crucial to talk to a qualified mortgage professional before beginning your home search. Contact Preferred Realty Partners today for some great recommendations and to start your home search.

Originally posted on www.sarahknobbs.com.

The Cost of Selling Your Home

Everyone knows about closing costs, but what are they really? Can we estimate the cost of settlement before we even get the home on the market? The answer is YES. As part of the listing presentation, your Realtor should introduce you to this topic and give you a general idea of the costs involved in selling your home. Make sure that your agent not only educates you about the price at which your home will sell, but also how much it will cost.

So, what common closing costs can you expect when you are selling your home?

1. Settlement/Closing Fee – $300-500 – This amount varies depending on the settlement company you choose. They charge this fee to sellers and buyers to complete the final closing. Your Realtor should recommend a great settlement company to you. You do not have to use the same company that the buyer does.

2. Release of Liens/Trusts – $100-200 – This money pays for the certification that the lien on the property (mortgage) has been released and the property can be transferred.

3. Recording Release – $41 – This goes to the courthouse to record the transaction.

4. Document Delivery Fees – $50-100 – This ensures that documents are transported swiftly and securely between the settlement company and the other involved parties (courthouse, bank, etc.)

5. Grantor’s Tax –  $1 per $1000 of sales price or assessed value (whichever is greater) – This is a tax charged to all sellers. It essentially grants you the privilege of selling your home in Centreville VA.

6. Regional Congestion Relief Fee – $1.50 per $1000 of sales price or assessed value (whichever is greater) – As of July 1, 2013, all sellers in the Cities of Alexandria, Fairfax, Falls Church, Manassas, and Manassas Park as well as the Counties of Arlington, Fairfax, Loudoun, and Prince William are required to pay this tax as a way to offset the cost of improving traffic congestion in the area. I think anyone who lives in Northern Virginia can attest that the worst part of living here is the traffic!

7. HOA/Condo Disclosures – $100-350 – If your home is part of an HOA or condo association, you will need to provide the documents for that association to the buyer. The fee varies depending on the association, but more and more offer electronic delivery, which will usually save you some cash.

8. County Property Taxes – varies based on date of settlement and property value – You will be responsible for the property taxes due up until the date of settlement. This amount will be credited to the buyer at closing.

9. Brokerage Commission Fees – 6% of the sale price – The agents’ commissions are typically paid by the seller at settlement. If you have hired a great agent to sell your home, they will have sold your home at top dollar and should be well worth that commission.

10. Seller Contributions – 1-6% of the sale price – Sometimes the buyer will request seller assistance to close. This is certainly not a requirement to sell your home, but when you have the right buyer, it may be something you consider.

Please note that the costs listed above are not meant to be all-inclusive. They represent the most common costs that are incurred when selling a home in Centreville VA. Don’t forget that in addition to these items, you will be paying the balance of your mortgage. Your Realtor will go over an estimated cost of settlement with you so that you can see the approximate balance you will have after the sale of your home.

Are you buying a home in Northern Virginia this year? Contact Preferred Realty Partners today to get started!

Originally posted on www.sarahknobbs.com.

5 Ways to Protect Your Finances When Buying a Home

The search for your next home is always exciting, but it can often be filled with traps and pitfalls if you are not careful. Below you'll find 5 great ways to protect yourself in your next home purchase. Don't be a statistic; do your due diligence and get settled in a home that you can afford comfortably.

1. Be cautious about distressed properties
Many buyers seek out short sale homes or homes in foreclosure as a way to get a bargain on a new home. While some of these homes are still in good condition, many are not. It's important when you are considering a foreclosure or short sale home to do your homework. Be sure to hire a competent home inspector, and if major issues are found, hire a licensed contractor to analyze the problem and see if you can afford the fix. Even if a home is priced below market value, a fixer-upper can cost you more at the end of the day.

2. Watch out for overpriced FSBOs
Some buyers will talk to FSBOs (For Sale By Owner) because they want to cut out the Realtor commission and save themselves 3% on the price of the home. In theory, that could work, but many times FSBOs are actually priced higher than the market value because they haven't been priced by a professional. Be sure to talk to your buyers agent about the neighborhood values to ensure that you are not being wooed by an enthusiastic owner to pay too much for your home.

3. Don't borrow the full amount your lender offers
When you sit down to talk to a lender, they will review your financial situation with you to determine what you are able to borrow. They all have their systems in place that will give you a price they feel you can afford in the long-term. However, it's not always the best idea to shop at the top of your budget. While the lender knows a lot about your credit and expenses, they can't decide what monthly payment you are comfortable with. That needs to be a discussion between you and anyone else who is sharing that monthly mortgage payment with you.

4. Maintain a cash reserve 
Besides determining the amount of money you want to borrow to buy a house, you have to look at what liquid funds you have at your disposal. It's never a good idea to spend your entire savings on a down payment for a house. Keep a reserve available for taxes, utilities, repairs, and maintenance. Many homebuyers don't realize how much they will need to spend to move into a new home, especially first-time homebuyers. Keep your spending conservative with your home purchase, and you will be able to comfortably enjoy it for years to come.

5. Hire a strong buyer agent
This is perhaps the single best thing you can do to protect yourself when buying a home. A strong buyer agent will guide you through all of the above and more. They will make sure you see the best homes in your price range, and that you understand all of the costs involved in living there. A knowledgeable agent will know about the local HOAs, any special assessments, and they will be able to negotiate the best sales price for you. Don't sell yourself short; hire a strong buyer agent to help you and get to closing without the headaches.

Are you buying a home in Northern Virginia this year? Contact Preferred Realty Partners today to get started!

Originally posted on www.sarahknobbs.com.

New Listing: 42546 Longacre Drive

Preferred Realty Partners is proud to present an absolutely stunning Ryan Homes Courtland Model in South Riding's Cedar Hunt. Enjoy over 5000 finished square feet of living area!

The Gourmet Kitchen features upgrades including an extended island, morning room, granite countertops, and stainless steel appliances.

The 4-foot Family Room Bump-out gives plenty of space to relax with friends and family.

Upstairs you'll find a luxurious Master Suite complete with Sitting Room, Tray Ceilings, and Walk-in Closet.

Who wouldn't love this sumptuous Master Bath with soaking tub and separate shower?

The second bedroom has an Ensuite Bathroom.

Whimsical bedrooms 3 and 4 share a bright hall bath with a double vanity.

The lower level is brilliantly designed to include a Theatre Room with custom lighting.

The Wet Bar features heated tile floors and a walk-out exit to the spacious yard.

You'll find the 5th Bedroom and full bath with heated tile floors in the basement.

This gorgeous property backs to trees and has a large deck that's perfect for summer cook-outs.

Are you or someone you know moving to Chantilly VA this year? We’d love to help. Contact Preferred Realty Partners today to see this home and any others on the market in Chantilly VA.

Northern Virginia Real Estate Market Update – January 2016

Between Snowzilla 2016 and the aftermath of the holiday season, January 2016 was a relatively slow month for Northern Virginia real estate. Just under $700 billion in real estate was sold in Fairfax County VA, Loudoun County VA, and Prince William County VA combined compared to over $1 billion in December 2015. Keep reading for the details of each county.

4078 Clovet Drive, Fairfax VA

Fairfax County VA Real Estate Statistics
$401 million in real estate changed hands in Fairfax County VA in January 2016. 787 homes were sold (decrease of 33% month-to-month) with an average sale price of $520,796 (decrease of 5% month-to-month). That average sale price in Fairfax County VA would purchase a 3-bedroom 2.5-bathroom single family home on about 1/3 acre. The most expensive home was sold for $2.85 million – a brand-new 6500 square foot home on 1/2 acre with 5 bedrooms, 5 full bathrooms, and 3 half bathrooms in the Franklin Forest neighborhood of McLean. The lowest-priced home went for $97,500. This was a 1-bedroom 1-bathroom 652 square-foot condo in the Mount Vernon Lakes neighborhood of Alexandria. The average days on market for listings in Fairfax County VA was 58 days (decrease of 15% month-to-month).

42546 Longacre Drive, Chantilly VA

Loudoun County VA Real Estate Statistics
In Loudoun County VA, 338 homes sold in January (decrease of 35% month-to-month) for a total of $163 million. The average sale price was $491,854 (increase of 2.5% month-to-month), which would purchase a 4-bedroom 3.5-bathroom single family home on about an acre. The highest price paid for a home in Loudoun County VA was $2.8 million. This purchased a 5-bedroom, 6+ bathroom, 9500-square foot estate on almost 10 acres right outside of Middleburg VA. On the low end, a 1-bedroom, 1-bathroom, 666 square foot condo sold for $81,000 at the Cavalier Arms in Leesburg. The average days on market for listings in Loudoun County VA was very close to Fairfax County VA at 60 days (decrease of 10% month-to-month).

4414 Windermere View Place, Woodbridge VA

Prince William County VA Real Estate Statistics
587 homes sold in Prince William County VA (decrease of 33% month-to-month) for $133 million in January 2016. The average sales price for December 2015 was $339,461 (decrease of 1.5% month-to-month), which buys a 4-bedroom, 2.5 bathroom single family home on about 0.4 acres in Prince William County VA. The most expensive home was sold in Occoquan for $830,000. Built in 2008, this 2-bedroom, 3.5-bathroom home has just 2710 square feet, but includes a boat slip and sits right on the river. The lowest-priced home sold for $60,000 in Manassas. It was a 1-bedroom, 445 square foot home on .2 acres. The average days on market for listings in Prince William County VA was 64 in January 2016 (increase of 1.5% month-to-month).