Get Pre-Approved, or Risk Losing!

So last week I sat through a presentation from Laura Lafayette, CEO of the Richmond Association of REALTORS which talked about the trends happening in Richmond and how we are growing as a city. Home purchases are up in general which is fantastic! It's really great news, but it's a little scary for potential home buyers because about 99% of asking price is being met.

What does that mean for our buyers? When you look for a home, you need to have your pre-approval letter! Why? If you happen to look at a house that you fall in love with, you have to be able to put in an offer right away. Even though our approval process is fairly quick, we can't really stop someone from putting in an offer before you if they are pre-approved.

This keeps happening to our buyers and we hate having to give them the bad news on their home being sold because they didn't talk to a mortgage lender first. Laura shared with us that rates may go up this year, which means that more buyers will try to buy homes before they go up. It's more competition to our buyers so preparation is key.

So what happens in the pre-approval process? We get some basic information from you, like driver's license, copy of W2's, etc. We figure out your debt to income ratio and know about how much home you can afford. Why is this important? Getting your finances straight is a crucial part of the approval process, we need to know that your current lifestyle won't suffer with a mortgage payment even though a lot of the times we can lower your current monthly expenses.

Speak to a mortgage professional, we know it can be intimidating but it doesn't have to be. Even if you find out that you're not ready to buy now, we can make sure that we get you in the right path so you can in the near future!

I'll leave you with one closing note, if you're even thinking of looking at houses, please don't get your hopes up by going around and looking at them without a pre-approval letter. You'll end up finding something that you really love just to find out someone was better prepared than you and they'll snatch it up from under you!

No Matter The Loan, Big or Small, We Can Make Our Customers Homeowners

I want to take a moment to talk about one of my clients Zach, who was looking to buy a new home in the Richmond Area. Zach works in non-profit meaning that he works for a good cause but doesn't have a lot of disposable income. Having a restricted budget it was my job to figure out how to get him in a home that he would be happy with and that wouldn't strain him too much financially. 

Even though he didn't have a large budget, he also wanted to buy something that was move in ready and that didn't need a lot of renovations - with the help of Kristina Davis Denzler from Clocktower Realty, we are able to find something that checked off all of Zach's needs and wants. 

His monthly payment is something that he can easily handle, just under $1,000 a month. It's close to the city, just a few minutes away and with enough room to entertain and have people over. 

Having the RIGHT Realtor and the RIGHT Lender can really make all the difference. I want to make a difference when it comes to your Real Estate needs. If you want to find out more of what I can do for you and your family, please give me a call! Spring is just around the corner and it would be really great if can get you into a new home then! 

Member of the Richmond Mortgage Banker's Association

I have some very exciting news to share with all of you. I have become a Board Member of the Richmond Mortgage Banker's Association (RMBA). What better way to help all of my clients than by being part of this amazing group of people who directly influence the Mortgage Industry in Virginia.

So who is the RMBA? They are the people who research the Richmond Mortgage Industry and figure out what needs to be done to it. Then they communicate their findings to the Virginia Mortgage Lender's Association (VMLA), which lobbies and molds legislation so it can protect and benefit our clients' interests. The RMBA is composed of people from all over the Mortgage Industry in #RVA. My goal is always to make it as easy and painless for my clients to be home owners, and getting involved with the RMBA is just another way to make this happen. Homeownership is after all the American dream.

The RMBA also holds regular educational events geared towards loan officers, this is great for me because it provides direct access to tremendous amount of information that benefits my customers.

I am excited to be a part of this organization in 2017 and I can't wait to see what other amazing things come my way!

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.

Hear what people are saying...

Great Experience with Clay

We had a great first time home buying experience with Clay. Clay made sure that everything went as planned and my wife and I now live in the home of our dreams.

LOAN STATUSClosed Jul 2016

LOAN TYPEConstruction

CLOSE ON TIMEYes

Great Job!

Clay did an AMAZING job in our home purchase. Two BIG thumbs up!! We were looking for a specific home, and came through with shining colors. Process was easy, and he was in full communication the whole time! 

LOAN STATUSClosed Jul 2016

LOAN TYPEPurchase

CLOSE ON TIMEYes

As a first time homebuyer I was nervous and worried but Clay put all my mind to ...

Clay helped us from start to finish leaving no question unanswered. A truly hassle free experience in getting our mortgage!! As a first time homebuyer I was nervous and worried but Clay put all my mind to rest! I would highly recommend he and his team to help you purchase/refinance your home!

LOAN STATUSClosed Apr 2016

LOAN TYPEPurchase

• In today's challenging and demanding market, he dealt with my frustrations ...

  Clay followed through with everything he promised. In today's challenging and demanding market, he dealt with my frustrations in a calm composed manner. He answered every question I asked and completed the process as painlessly as possible.

  LOAN STATUSClosed Apr 2016

  LOAN TYPEPurchase

  He always had time for us regardless if we needed something on the weekend or past ...

  Clay is very informative, able to answer all of our questions and address any and all concerns immediately. He always had time for us regardless if we needed something on the weekend or past 'normal' working hours. We already have recommended Clay and his team, and will continue to do so in the future.

  LOAN STATUSClosed Apr 2016

  LOAN TYPEPurchase

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.