Why it may be better to buy a home in the fall

I am sure you have heard that the best time to buy a home is in the spring because there is an abundance of listings but many people are now saying that fall is when the real magic can happen and here is why.

High inventory of leftover homes from the summer are readily available. Come October sellers are ready for something to bite because their homes have been sitting on the market all summer.
Which then leads to another reason as to why the fall might be best.
Sellers are motivated to close by the end of the year. Everyone wants a fresh start come January 1st, so the sooner they can sell their home before the desire to start fresh at the beginning of the year, the better.

My third point then follows.

Fall landscaping is the best, I mean come on, beautiful changing of colors, cool weather, piles of bright, fresh smelling leaves. This is the perfect scene for staging and selling a home.

Next to landscaping, many families want to be in a new home before the start of school so that their children don't face too much of a disruption. Therefore, the competition is much lower in the fall to buy a home.

Fall begins the start of holiday season, you begin with Halloween and then comes Thanksgiving and before you know it Christmas is here and everyone is holding parties and having family over to celebrate. The last thing a seller wants or needs is a sale looming overhead.

Sure the spring is great, the flowers are blooming the birds are chirping but the fall truly may sneak up to the first place spot for buying a new home.

Grants Available for 1st Time Home Buyers in Virginia

VHDA is pleased to announce a special allocation of funding available to eligible first time homebuyers financing with either of VHDA’s Fannie Mae Programs.

Details

Assistance in the amount of $1500 provided towards the borrowers closing costs (including prepaids and upfront MI) – not toward downpayment

This is a grant – no deed of trust – no repayment required

Funding is limited – funding available for 150 purchases transactions – first come first serve

We anticipate funds will be utilized very quickly

Lower income limits – lower income limits apply (limits are lower than the VHDA grant program see attached limits)

Limited time – loans must close by October 17, 2017

Closing Costs assistance may be used in conjunction with VHDA’s DPA Grant and MCCs

Borrowers may not receive cash back at closing

Lenders may offer the closing costs assistance to borrowers currently locked with a VHDA Fannie Mae loan

- Chesterfield, Hanover, and Henrico income limit is $62,960, Richmond City is $62,960.

Why Summer might be the best season to buy

We've all heard of a busy #Spring Real Estate Market. The Fall is another time in which Real Estate picks up. Winter tends to be too cold and people seem to be preoccupied with the Holidays. Summer might be a fantastic time for you to move into a new home because of the simple fact that the Spring frenzy has ended.

During the Spring season we see a lot of activity in the market, it can be harder to nail down moving plans because everyone has the same mentality at this point. Moving companies are getting lots of requests from people taking advantage of great weather. The market tends to be more competitive, more desirable homes might get several offers. That's added stress that you might not need. Real Estate Agents will have a bit more time in their hands now that the worst season is behind them, giving you the attention you deserve.

The Fall might be another season to consider if you're thinking of buying but historically we see some of the same issues we have during the Spring and if you experience any delays in the transaction you may end up having to move in the middle of Winter. This is why the Summer could be the perfect season to buy!

As always, if you have any questions on how the home buying process works, don't hesitate to give me a call!

Working with a Local Lender vs. Non-Local

Have you seen tons of ads online and on TV about mortgage rates and how low they are? Telling you that you can't get lower rates like that anywhere else? Yes, if you've been recently looking at houses it seems that these advertisements are everywhere and for good reason. Rates are not the lowest but they are pretty low compared to just a few years ago. The crazy thing is that the rates are mantaining even though the housing market seems to be booming.

The way to go might seem to use the "online tools" advertised or just do it with whichever bank you already have, it's so easy right?! Wrong. Getting a mortgage is not an easy process, at least not when you do it alone which is what it will feel like when don't work with a local agent. Having a real life person can make all the difference, especially when it is a local lender!

Options
Buying online should give you more options right? This is a big misconception mainly because there are some loans available to your state in particular that an online bank may not have access to or may not be very well versed in. It's impossible for an online representative to know every product available in every state and even if they are well educated in the subject, it's still impossible for them to know the ins and outs of every product. Being local gives us an advantage because of the products exclusive to your area and our experience dealing with them.

Flexibility
Don't qualify right away or need a little leeway with your mortgage? A local agent typically can be more forgiving and flexible on what we can offer based on your situation, in some cases even make exceptions. Big banks aren't really allowed to do this because they have strict guidelines to follow and even though we have guidelines too, it's easy for us to talk to our managers and get creative on how to help our clients. Our goals is to get you in your dream home!

We know the area
When you buy a mortgage online or even with the bank you usually do business with, it's not local therefore they don't have a full understanding of your needs. Knowing the area also helps because we can make sure you are getting a good deal and evaluation of the property. We'll know how much you'll need for the type of property you're looking to buy based on our extended knowledge of the area and prior loans.

Accessibility
When you use a big bank or an online option, you don't always get the same person on the phone or via email. Even if you do, they may not remember you because they work in such high volumes. Local lenders make it their priority to be a part of the process and keep you in the loop, we can even meet with you if you have questions! You can't this level of services when you don't shop local.

So when you're looking to buy, the first thing to do is shop for a mortgage with a local agent! Ask for references and check their presence online, make sure that they are good because this can make an experience that may seem complicated and intimidating into a pleasant one!

Golfing for a good cause: Special Olympics VA

I believe in giving back to the community and as my personal business grows, I want to make sure I am doing so. The Special Olympics is a great cause that I encourage people to get familiar with. We live in a very sport centered culture and I believe that everyone should be able to participate, the Special Olympics allows just that. We're not all the same and it is incredible to see an organization dedicated to embracing physical diversity.

This year, I decided to do a small part in making their Golfing Tournament a possibility. First Home Mortgage and myself are sponsoring one of the golf holes at this year's Golfing Tournament. I encourage friends and colleagues to register to play or support this cause by also becoming a hole sponsor. We all know someone with a disability and it is important to show them our support, no matter how big or small.

I hope to see some of you out there and if you're curious on how to get involved, click here to visit and get more tournament information or click here to learn more about the Special Olympics in VA.

Welcome to our team!

Jessica has joined the Clay Carroll First Home Mortgage team this week and I couldn't be more excited to have her on board! Her experience alone is invaluable but she is also an excellent people person.

Jessica, a native of Richmond VA, has been in the real estate business for nearly 20 years.  Starting her career just after high school, Jessica relocated to San Diego, CA where she lived for two years and spent another 5 years in Dallas, TX working in the real estate closing industry.  Although, she loved Texas, her heart was home in King William County where she moved in 2014 and married her husband in 2015.  Jessica understands that customer service should be expected and strives to go above and beyond in effort to create raving fans.  Her wealth of knowledge in all aspects of the Real Estate/Mortgage Industry helps her stay ahead of the curve in the ever changing market.  In addition,  Jessica brings outstanding communication skills, a get it done attitude, and contagious smile to First Home Mortgage and is also a big part of helping us create a mortgage experience to the customer that is second to NONE.

In her spare time she also enjoys watching sports, hunting with her husband, and spending time with her family.

Loan Options

Loan Options

As a home buyer, your mortgage is specific to your situation and lifestyle. First Home Mortgage specializes in a variety of loans that can meet your needs. Your Loan Officer will explain your options and deliver a mortgage with the best loan terms available.

PURCHASE AND REFINANCING LOANS

Conventional Home Loans

Conventional mortgages are loans that are insured by private companies. Typically, these loans meet the funding criteria set by Fannie Mae and Freddie Mac. There are a number of conventional loan types offered by First Home Mortgage:

FIXED RATE

A fixed-rate mortgage has an interest rate that stays the same for the entire life of your loan. This offers a predictable monthly payment for a term of 10 – 30 years.

Highlights
– Interest rate security
– Monthly payment stability
– Best for buyers planning to stay in their homes for a long time

ADJUSTABLE RATE

Adjustable rate mortgages (ARMs) may allow you to lock in a low, introductory interest rate that could increase over time. A hybrid ARM offers a fixed period (typically 3-10 years) followed by a yearly adjustment to the interest rate. Hybrid ARMs are often represented by fractions, such as 5/1 – meaning the first rate reset takes place after five years and continues to reset each year for the life of the loan.

Highlights
– Low starting interest rate
– Lower monthly payments during the initial term
– Best for buyers planning to keep their loan for a shorter period

JUMBO

Jumbo loans typically have higher loan amounts not allowed for standard conforming programs (set by Fannie Mae and Freddie Mac). This allows borrowers to a purchase a higher priced home with an affordable down payment.

Highlights
– Fixed and ARM options
– Loans up to $3 Million
– Best for borrowers who are in the market for higher priced homes

Government Loans

The government guarantees certain programs through various agencies to better serve borrowers with unique circumstances. These loans can only be offered through an approved lender such as First Home Mortgage.

FHA

FHA loans are insured by the Federal Housing Administration (FHA). Programs are available for borrowers with limited savings for a down payment.

Highlights
– Down payment as low as 3.5%
– Flexible use of gifts and grants for down payment
– Best for borrowers with limited assets for purchase

VA

VA loans are insured by The Department of Veterans Affairs (VA).Service members and their spouses are eligible to purchase with little to no down payment or cash to close.

Highlights
– Low to no down payment
– Refinance within the VA program without re-qualifying
– Specifically for eligible past and present service members and spouses

USDA

The U.S. Department of Agriculture (USDA) insures loans to home buyers with low to moderate income moving to designated rural areas. These loans can provide up to 100% financing.

Highlights
– Down payment not required
– Specific benefit needed here
– Best for borrowers with limited assets looking to buy in rural areas

State Housing Finance Agency Programs

Housing Finance Agencies (HFAs) are state specific and offer programs to residents to help purchase a home. Conditions and guidelines vary depending on the agency. These programs offer special incentives for first time home buyers:

• VHDA (Virginia Housing Development Authority)

Applying for a Loan

Pre-Qualification

The first step toward a home purchase is getting pre-qualified for a loan. Your Loan Officer will review your financial information and determine how much you are qualified to borrow. As a pre-qualified buyer, your offer on a home is more likely to be accepted.

• Loan Preparation Checklist
  1. Copy of photo ID
  2. Social Security number
  3. Copies of checking and savings account statements for the past 3 months
  4. Most recent pay stubs detailing your year-to-date earnings
  5. Federal tax returns with W-2’s, K-1’s, 1099 for the past 2 years
  6. Evidence of any other assets such as stocks and bonds
  7. Contact name and address of someone who can verify your employment
• Since everyone’s situation is unique, additional documentation might be required. Your Loan Officer will let you know exactly what is needed.

Making an Offer

Once you have found a home, you will make an offer to buy it from the seller. A real estate professional will conduct negotiations and a contract will be submitted to purchase, accompanied by the pre-qualification letter.

Mortgage Process

When the seller accepts your offer, you begin the mortgage process. Your Loan Officer will gather your financial information, loan application and provide the initial disclosures based on your loan terms.

• This process will also include
  1. Ordering the appraisal; estimating the value of the home
  2. Ordering/updating your credit report
  3. Submitting your loan to Underwriting for review
  4. Conditionally approving your loan (additional documentation might be requested)
  5. Providing information on homeowner’s insurance and selected title company
  6.  Underwriting approval on all acceptable documents
  7. Final loan approval – you are cleared to close!
• Your Loan Officer will keep you informed, answer your questions, and navigate you through the loan process.

Closing Process

In the days leading up to settlement, you will be sent final documentation about your loan, including the Closing Disclosure. You must review, sign and return the paperwork a minimum of three days prior to your scheduled closing date.

Your Loan Officer, or a designated employee, will tell you the amount of money you need to close on your home.

• What happens on closing day
1. Meet with your settlement agent as well as your Loan Officer, or designated employee.
2. Provide funds to the title company to cover your down payment, closing costs, taxes, insurance and other costs.
3. You and the seller will execute all closing documents so the settlement agent can properly record the purchase of your home.

Making Your Payment

Your settlement documents will include instructions on how to make your first payment. While First Home services many of our loans, it is possible servicing will be transferred. You will be mailed a notification that designates your mortgage servicer.

Show me your best Pumpkin Carving Skills!

So every year, I drop off pumpkins to a handful of clients and partners and I hold a contest to see who can do their best. It's an awesome contest that gets the family involved and it's just a great activity to do around this time of year. Check out the entries we've received so far! More to come...

Can refinancing save you money?!

Refinancing

Refinancing is a possibility to improve your current mortgage. It means getting a new loan, with new terms, and using that money to pay off your old loan. Your Loan Officer can help explain why refinancing might be the right option for you.

Reasons to Refinance

• Lower payments
  Refinancing with a lower interest rate could result in lower mortgage payments. This may provide extra money each month for homeowners to save, or spend, however they choose.

• Shorten your payment term
  If you want to build equity faster, or pay off your mortgage in less time, you can refinance to a shorter loan term. This may result in a slightly higher monthly payment, but you may also save money by paying less toward interest.

• Convert your home’s equity into cash
  As a homeowner, you make payments to increase your equity, or value of ownership. Refinancing allows you to turn that equity into cash – referred to as “cash-out” refinancing. You are free to access and spend the money without tax penalty*.
  *Consult a tax professional for more information.

Thinking of buying? Here's some benefits of Homeownership!

Benefits of homeownership:

• Build Wealth  Although home value may increase or decrease short term, if you decide to stay in your home long term, it could gradually increase in value. This would provide you with a significant return on your investment.
• Build Equity  Equity is the amount of money your house is worth minus what you still owe. Every time you make a mortgage payment, the amount you owe reduces and increases overall equity. This is beneficial, because equity can be accessed and converted to cash. See our Refinancingpage to learn more.
• Tax Deductions  As a home owner, your mortgage interest and property tax payments may be deductible from your federal taxes and possibly state taxes.*
  *Consult a tax professional for more information.
• Strengthen Credit History  Making monthly loan payments is evidence that you are a responsible borrower, which builds your credit history. This will help you take out loans for other purchases, such as a car or even home renovations.
• Create the Home You Want  Owning a home gives you the freedom to create your dream living environment. Whether you want to update appliances, paint rooms, landscape a yard, own pets – you will have a house that is completely yours to customize.