New Homes Guide Blog

One of the first items on your new home quest checklist should deal with your finances because getting a mortgage these days can prove to be challenging. We hear about the issue almost daily but what do YOU do to put yourself in the best position to obtain the best mortage? There are some basic steps you should take both to keep your credit looking good and to make sure your financial picture doesn’t change during the mortgage application process.

1. The very first step is to find out what your credit score is right now. You may have checked in the past year, but you may not be aware of changes that have posted to your credit report – either correctly or erroneously – that have affected your score. All three major credit bureaus (Equifax, Experian and TransUnion) must provide you with a free report annually so be sure to get a copy from each one. One of the easiest sites I’ve found to work with is AnnualCreditReport.com.
2. Do you pay your bills on time? Even 1 or 2 late payments can greatly affect your score so be sure to stay on track with your payments and due dates.  Setting up automatic payments is a great method to make sure you don’t ever miss a payment.
3. Your income should be steady and reliable. Sounds basic enough but realize that lenders really like to see at least 2 years of employment within the same field and you will need to provide the supporting documentation. If you hold a commission-paying job, you may need even longer time in that field.
4. Please don’t go out and buy that new boat (or car or motorcycle or any big ticket item!) as soon as you get loan approval! New loans can adversely affect your credit during the critical period from loan approval thru settlement so hold off until you’ve gone to settlement. And keep in mind, it’s not just new loans – you need to maintain a certain amount of reserves so paying cash for expensive items doesn’t necessarily help. If you must absolutely purchase something, talk to your lender.
5. A common theme I have often heard is that buyers want to close old credit cards. That’s not necessarily the best move so talk to your mortgage lender before doing so. The lenders want to see credit history and a reasonable amount of available credit - closing cards can affect both of those.

These are just a few tips to help you purchase your dream home this year. Bankrate.com offers additional advice as well so check out their recent article “12 Mortgage Moves to Buy a Home in 2012″. And of course your lender is one of the best resources to talk to them to get guidance tailored for you.

Happy House Hunting!

You would be amazed at the number of people who are eligible to use the VA loan program and don’t know it!  In my opinion the VA loan is the best loan going right now.

The VA loan program can make it much easier for veterans to secure a home loan by requiring little or no down payment. This home loan is available to veterans and is guaranteed by the Veterans Benefits Administration, a part of the US Department of Veterans Affairs. In addition, with a VA-guaranteed loan, there is no private mortgage insurance requirement.

You are eligible for a VA loan if you have previously served in the military or are currently on active duty or in the reserves. You can check to see if you meet the requirements at http://www.benefits.va.gov/homeloans/eligibility.asp .   VA loans offer 0% down payment options for loan amounts up to $625,500 in the Washington DC Metro area.  For loan amounts greater than that there will be a down payment required.

The VA loan offers flexible qualifying terms.  There is a VA Funding Fee that is applied to the loan and the amount of the funding fee is determined by the amount of down payment.  The funding fee can be financed into the loan amount or it can be paid in cash as part of the closing costs at the time of settlement.  In certain cases the VA funding fee can be waived if the veteran receives a VA disability award.

Leslie Wish

If you are unsure as to whether or not you are eligible for the VA loan please email me at lwish@mcleanmortgage.com or visit me online at http://www.lesliewishmortgage.com/ and I would be happy to assist you in determining whether you qualify for the VA loan.

Happy House Hunting!

It seems that there is one question that those either working in real estate or contemplating getting real estate have always asked: Is it better to buy or rent a home? This question comes up time and again regardless of the economy and real estate market so let’s look at a few of the pros and cons for both.

RENTING:

One of the big pros with renting is the caretaking and maintenance of your home. Sure, you should always take care of your home but to not have to worry about some major items such as HVAC, appliances, roof, floods and the costs associated with those purchases or repairs – well, that seems to be a huge plus to me. It would be quite nice to simply make a call to the landlord when you walk into your home and suddenly the AC is dead on a day when it’s 95 degrees. Phew!

Another pro is the flexibility of renting. Let’s say you’re new to the area and not quite certain where you want to live. Renting gives you the opportunity to live in the community and learn a great deal about what it has to offer and how it benefits (or hinders) your family, work and lifestyle. It would be terrible to buy a beautiful new home only to find out the schools aren’t that great, there is not a lot of local retail or it is inconvenient to get to work because you didn’t know traffic patterns.

Also, let’s not forget that often times rent is a lower monthly payment than a mortgage payment…at least that’s what we’ve always thought. These days, as many people suffer hardships with the economy, some areas have developed high demand for rentals as families can no longer afford their homes. High demand equals…you got it – higher rents. So if that is the case for you, let’s take a brief look at the benefits of purchasing a home.

BUYING:

You always hear people say that to rent is to throw money out the window. Ever wonder exactly what that means? The rental payment you make is just that – a rental payment. A mortgage payment is much greater. At this time, you are able to right off all the interest associated with your mortgage payment, some fees associated with closings and you’re making a payment towards full ownership of your home giving you equity. Those are some big savings and advantages!

Another nice thing with buying a new home – you’re the first owner. You’re the first one to use your appliances, enjoy your yard or deck, and yes, I’ll say it – use your bathroom! You don’t have to worry about who the previous owner or occupant may have been because everything really is brand new, not “like new”.

There’s the design aspect to. You say you’ve always wanted a jetted shower? Well, if the rental doesn’t have it, I doubt you’re going to invest in one given that you’re not taking it with you when you leave. But with a new home purchase, go for it because it’s yours forever. You get to design your new home so that it fits your needs and desires instead of living with something where you just have to “make it work”.

Ginnie Mae (the organization that guarantees mortgage-backed securities and is supported by the government) has published a fantastic guideline to help you determine if you should rent or buy because the bottom line is what’s going to work best for you and what do you want out of it. Check out their page and use the “buy vs. rent” comparison chart, the buy vs. rent calculator and also determine what is affordable for you.

Good luck and Happy House Hunting!

Kitchens are by far one of the most important rooms when it comes to deciding on a home purchase. One of the many conveniences of purchasing a new home is being able to customize a

Beazer Homes

kitchen space based on your individual liking and needs. Just like new homes, kitchens come in many styles and just like a home purchase, kitchen style decisions should be well thought out. While you can always add personal touches to any kitchen, first choosing a style will help you narrow down your options when it comes to creating your dream kitchen.

Kitchens.com gives us a look at several different styles:

• Traditional
• Contemporary
• Transitional
• Country
• Rustic
• Arts & Crafts
• Old World

Interested in seeing more styles? You can check out New Homes Guide’s ‘Interiors’  supplement for more kitchen inspirations. Which kitchen style are you?

Happy House Hunting! 

Winchester Homes

 

These days, everyone seems to be looking for ways to save some money. Well, you’ve got easy and often very affordable (or even free!) ways to do that right in your own home. By conducting a do-it-yourself energy audit, you can assess how much energy your home consumes and figure out what you might be able to do to make it even more energy efficient.

You might be thinking, “I just moved into a brand new home. Isn’t it already as energy efficient as possible?” You are partially right – the house is well built with new windows and doors that shouldn’t have air leaks and probably came with EnergyStar rated appliances. However, there are still things you can do on your own to maximize your savings.

Is your home lit up like a Christmas tree year round? Take a look at where you have placed lighting and decide if you really need a high wattage bulb in that spot? You can save by switching to a low-watt bulb. If you have an area that is lit up a great deal of time, consider changing the regular bulbs out for CFLs – this can save up to 75% of lighting energy.

Do you keep your thermostat at a constant temperature all day and night or do you make adjustments for night time or trips? By regularly lowering your thermostat by 10 degrees (F), you could reduce your heating bill by 10-20%.

Have you checked to see what the temperature is set to on your refrigerator? The optimal setting is between 37 and 40 degrees (F). And did you know that by keeping a well stocked refrigerator, it will use less energy – it takes more energy to cool an empty fridge.

What about those toaster ovens or your fancy new microwave? Give them a workout and save money by not using the oven for smaller items.

Do you have a beautiful wood-burning fireplace in your new home? You’ve got money going up the flue if you’re not making sure that the damper is closed tightly.

These are examples of a few things you can do, even in a new home. For a host of other ways to evaluate and conserve your home energy, check out this piece by the EnergyIdeas Clearinghouse - there are tons of great tips and resources.

The Energy Efficiency Fact Sheet by EnergyIdeas Clearinghouse

Our blog has a guest writer this week to help you out with your questions regarding PMI. Leslie Wish (CMPS), Senior Loan Officer with McLean Mortgage Corporation gives you information and guidance on this important detail relating to your mortgage:

Oftentimes buyers will come to me asking about mortgage insurance and why they have to pay it. To help you understand some of the extra costs associated with your mortgage, this is a breakdown of what factors determine whether or not you need mortgage insurance.

Private Mortgage insurance (PMI) is required by a lender if you make a down payment of less than 20% for conventional loans.  This insurance protects the lender in the event a borrower defaults on a loan.  The PMI can be paid as a part of your monthly mortgage payment, or as a lump sum at closing, or possibly rolled into your interest rate. 

FHA loans require mortgage insurance (MI) regardless of your down payment amount.  The MI is usually paid as an upfront lump sum equivalent to 1% of your loan amount.  FHA also requires MI to be paid as part of your monthly payment.

Veteran’s administrations (VA) Loans do not require mortgage insurance.  The VA does, however, require a funding fee, which is paid upfront in cash or financed into the loan amount.  In cases where the veteran has a disability, the VA funding fee will be waived.

It is important to talk to a lender to figure out which program will best fit your individual situation.

I would be happy to assist you with all of your mortgage lending needs! Please email me at lwish@mcleanmortgage.com  or visit me online at www.lesliewishmortgage.com so I can help you best determine which program works for you.

We hope you find this information useful!

 Happy House Hunting!

Moving to a new home can be both very exciting and extremely stressful…and that is for an adult. Can you imagine what it must be like for children who don’t have all the knowledge, experience and ability to see the big picture that you do? If you are getting ready to make a move that involves your kids, there are some things you should take into consideration as you prepare for the big day.

 Just like many other situations in life, your kids look to you for the lead. If you’re anticipating this move with excitement, you will set the tone for the kids; if they see that you are not happy about the move or dreading it, they will certainly become more worried as well. I doubt you will be able to ease all of their concerns however by making some preparations and having a lot of patience with them, the move should go a little smoother for all. I just went through this exact situation myself with my two kids. Trust me – it’s not easy but it can be done and I am seeing them get more settled and comfortable every day. It’s taken a little extra effort though and a realization that what is important to them needs to be handled with a lot of TLC.

Better Homes and Gardens Real Estate published an article addressing the move with kids and I found it to have some very helpful reminders. For a complete list of suggestions, check out the article but here are a few examples:

• Communicate with your child patiently and frequently and let them know what is happening now and what to expect later.
• Show them all the advantages of the move and don’t be afraid to discuss disadvantages they may bring up (and how you plan to overcome those things).
• Involve them in the new home – let them see it before the move, if possible, and help plan out where their belongings will go.
• Know how to address their questions about the things that directly affect them: sports, scouting, school, friends, etc.
• Sticking to the regular routine as much as you can gives them the structure and comfort they are accustomed to.

And always remember, you may be the decision-maker in the family but your kids need to feel involved to reiterate their worth and importance. Good luck to your family!

Happy House Hunting!

 http://www.bhgrealestate.com/Learn/Buying-and-Selling/Moving-with-Young-Children.html

We keep hearing that now is the time to buy, partially because interest rates are so low right now. However, unless you are purchasing an inventory new home, today’s rates might not be what your rate is when you go to settlement. What to do?

The most important thing to realize is that no one has a crystal ball and no one can tell you without a doubt what will happen with interest rates over time. Fortunately, there are some indicators that can give you an idea of where they could be headed – the economy, inflation rates and the Federal Fund Rate. Unfortunately, we aren’t all Economists so understanding how all of these factors affect your interest rate can be complex.

I found an article that very nicely explains all of this. While a bit lengthy, the article How Interest Rates Work really breaks everything down in very simple terms. If you really want to know how everything is woven together, I would suggest you check this out. The forecast right now is for rates to stay relatively low but how long that will last is anyone’s guess. But…if you can at least understand the forces behind the rise and fall of interest rates, maybe it will give you some peace of mind with what to expect. And if that peace of mind isn’t quite enough, it never hurts to ask your lender if they extend rate locks!

http://money.howstuffworks.com/interest-rate3.htm

Happy House Hunting!

The temperatures are starting to drop as the cold months of winter are beginning to set in. You’re thinking about pulling out those sweaters, winter coats and boots but are you thinking about what sorts of warm and fuzzy things your home needs? Just as the change in weather can affect you, it can also have a big impact on your home.

We talked about preparing for Fall and you may have started prepping your home but there are a few critical items that need to be addressed as the weather gets colder. Based on my own experience, my own #1 winter preparedness item is winterizing the hose bibs. Trust me – you do NOT want to worry about frozen pipes and ultimately a cold weather flood! Not only is this a big mess, it can also be quite costly. It’s a simple task that doesn’t take a great deal of time – well worth the effort.

Along with winterizing the pipes, you should inspect the gutters and downspouts. This is potentially another water/ice issue  and one that can be avoided with a little bit of effort. Lack of taking care of this can result in ice dams and water seeping into your home. Another yucky situation!

Here are the Top Ten Tips from About.com for winterizing your home, top to bottom and inside & out:

1) Furnace Inspection

2) Get the Fireplace Ready

3) Check the Exterior, Doors and Windows

4) Inspect Roof, Gutters & Downspouts

5) Service Weather-Specific Equipment

6) Check Foundations

7) Install Smoke and Carbon Monoxide Detectors

8 ) Prevent Plumbing Freezes

9) Prepare Landscaping & Outdoor Surfaces

10) Prepare an Emergency Kit 

For the complete details for each tip, check out the full article: “Winterizing Your Home – Preparing Your Home for Winter”.

Stay Warm!

You’ve moved into your new home, set up all the furniture, put away all the dishes and now you’re ready to hang your favorite pictures…do you have a hammer and nails?

Most people who have already owned a home in the past have a pretty handy set of tools but when you’re a first time homeowner, chances are you don’t have a complete tool box. And since you’ve purchased new construction, it should be awhile before you need to do any repairs on your own. But the time will come and it’s a good idea to be prepared.

Along with your basic hammer and nails, I have a list of tools that you really should have on hand that includes a drill, pliers, wrench and measuring tape. For a good complete list, check out this article for everything to stock up on in your tool box – you’ll be happy you did!

http://www.nahb.org/generic.aspx?sectionID=124&genericContentID=125949

Enjoy hanging those pictures!