Home Buyer Tips How to Save Yourself Some Heartbreak

Home Buyer Tips
How to Save Yourself Some Heartbreak  

Setting you up for success by finding your lender first
 

As you may know I offer a free seminar every month for First Time Home Buyers to help anyone thinking about buying a home to start wrapping their head around the process. One of the questions I'm often asked is "Why can't I shop for the house and then shop for my loan?" We can all understand where this question is coming from. Someone may be hesitant to really get too far into the process if they're not sure Mr. or Ms. Right House is out there. Well, as a professional "house & new owner matchmaker" I can assure you it's out there! You just have to be realistic about what you need and be READY to sweep that house off it's feet when you find it.  

The fact of the matter is you need to be pre-approved for your home loan Before you shop for your new house for several reasons:

1. Save heartbreak by knowing your price point - Our region has homes of many different shapes, sizes, and price points. Without first knowing what price you can afford there is no way to find your house. Nothing is more heartbreaking than falling in love with a house you can't have. Online calculators can give you a ball park, but many specific factors about your financial situation come into play when a lender is reviewing your application, and so only your lender can give you real numbers.  
2. Save heartbreak by being ready - The best houses that are priced right for the market sell quickly. You're looking for the very best thing for your budget and your needs, and so is everyone else. If you were to find the house and then try to go through the process of applying for a loan, the time lost could easily mean not getting the house because while you were trying to get your financing together, someone else contracted to purchase the house instead of you. 
3. Save heartbreak by writing a competitive offer - In our market the sellers want to know that their potential buyer is serious from the very beginning. Taking the house off the market for someone who is not ready, willing, and able to buy the house will cost a seller precious time and money. Including a pre-approval from your lender along with your offer to purchase the house shows the seller that you are serious and have the ability to buy it. The stronger your offer the more likely that you will be the one buying the house. 

There are many steps to the home buying process, and by following them you will find a new home you can love.

Happy Valentines Day!  

DC Metro area real estate market update

January 2016 Regional Market Update: The DC regional housing market saw a 2.5% dip in median sales price from January 2015 (From $385,000 to $375,500). Sales activity (up 5.8%) and volume (up 2.7%) remained strong. We saw a decrease in pending sales and new listings, likely due to the historic storm.  

NOVA Market Update: Northern VA home prices remain stable. Fairfax County median sales price for January was $444,000 up 1.1% year over year. 

Rate Update: Good news for buyers! Rates are still not rising at the rates anticipated when the Fed made changes in December. The current rate for a 30 year fixed mortgage is 3.72%  

Home Owner Tips: Keep Cozy this Winter

Home Owner Tips
Keep Cozy this Winter

The way your home feels is what makes it home! 

Making your home a brighter warmer place to live is always a good idea for this time of year. With the first major snowfall likely to hit us this weekend, here are a few tips for feeling more snugly. 

Flame on! 

Anthropologists can go on about why humans love fire, but all that matters is that having some flames, or flame like things, about will change the feel of your home and possibly your mood. Good old fashioned candles, and fancy new electric candles are a great way to check this box as well as simply using your fireplace. If you don't have a fireplace consider a gel fuel fireplace, or an electric space heater with flamey character. Using warm colors in your decorating can also help (in case you wanted an excuse to paint a room orange!) And if none of that sounds good, maybe download a fireplace app for your phone, or check it out on Netflix. 

SAFETY FIRST! Please always follow directions and use common sense when dealing with fire. Check your smoke detectors and fire extinguisher before busting out those winter candles. 

Lighten up 

It's a really simple thing, but dusty light bulbs and fixtures can impact the amount of light you're seeing from them. Especially with how long lived bulbs are these days, make sure you're getting the best from your lights by taking the time to dust your bulbs and fixtures. 1. Turn off the electricity to them 2. Wipe with a dry cloth to prevent water getting into any of the electronics. Same goes for dirty windows. 

Seal air leaks 

Use an incense stick to watch the way air moves in your home and find drafts. Seal them appropriately depending on the nature of the draft. This can make an impact on your utility bill as well.

Focus on Hygge

Hygge is my new favorite Danish word which loosely translates to cozy with a side of it's cold outside, but I have the love of my family and friends. Further reading: Fight the winter doldrums with Hygge, Blog post with more ideas on how to Hygge and the best part is how to pronounce Hygge.

Northern Virginia Real Estate Market Update

2015 Regional Market Update: The DC regional housing market continued to see strong sales activity in 2015 with year over year gains in sold volume every month. The median sales price for the region was $410,000, up 1.1% from 2014, and comparable to the median price at the height of the market in 2007.  

NOVA Market Update: Northern VA home prices remain stable. Fairfax County median sales price year to date is $474,844, up 3.2% from year end 2014.  

Rate Update: You may have heard about the Fed raising rates in December. And if you didn't (or if you want to know more) you can check out my blog post about it here. Mortgage lending rates have done what most experts expected for the initial time being and not changed significantly. The current rate for a 30 year fixed mortgage is 3.73%  

Why the fed rate hike is important for home owners and home buyers

Why the fed rate hike
is important for home owners and home buyers 

Photo Credit CNN Money

I talk about rates in my monthly newsletter because it's a piece of the economic puzzle that has a real impact on my clients. I've found there are two main types of consumers when it comes to information like this - those who can't get enough data, and those who want me to sum it up. So here's the short version and some resources for further learning. 

What's going on?

The Federal Funds Rate is a benchmark number in financial markets. It pertains to how much it costs banks to lend and borrow money. The rate is determined by the central banking system of the US, the Federal Reserve System (aka "The Fed").  For the first time since lowering it nearly 10 years ago during the recession The Fed has increased that rate.  It is a small change that was expected, and is seen by many as a vote of confidence in the US economy. 

All this explained via Rube Goldberg Machine 

US historic interest rates explained via sound effects 

Home Owners: 

If you have an adjustable rate mortgage or a home equity line of credit with an adjustable rate, it will likely have a higher rate at your next adjustment. 

Home Buyers: 

Mortgage rates are not predicted to shoot up, but they are almost certain to start increasing now. An increase of half a percentage point for 30 year fixed mortgages is anticipated by the end of 2016.
 
To demonstrate how even a small change can effect your bottom line take the example given by Michael Fratantoni, chief economist of the Mortgage Bankers Association, consider a $200,000 home with a 4% fixed interest rate. Change the rate to 4.25% and your payments go up by $30 a month, potentially adding another $11,000 over the life of the loan. This can also effect the debt to income ratio for a potential home buyer. A recent analysis by the National Association of Realtors found that an increase of half a percentage point to the 30 year fixed rate mortgage (as some economists are predicting will take place by the end of 2016) could result in as many as 7% of potential borrowers not being approved simply because of the rate hike.

Everyone: 

Credit cards have variable rates which are directly impacted by the rate set by the Fed. This 0.25 increase is relatively small so you shouldn't see this impact your budget much, but as the rate climbs so will your credit card bill.   

Savings accounts can look forward to increased returns in the near future. Though some major banks including JP Morgan Chase, Bank of America and Wells Fargo have already increased their prime rate on the money they lend in accordance with this news, they have not yet made any adjustments to their rates for savers. That change is widely expected to come. 

Bottom line: things are changing - they are changing slowly - and all of these rates are still at historic lows. If you carry credit card debt that is now getting more expensive, and if you were waiting for rates to fall lower before making a home purchase than you should probably start evaluating that strategy :) 

US Economy Statistics
News Round Up: Economist, Reuters, NY Times, CNN Money, Washington Post, Market Watch, Marketplace's In-depth Coverage

Northern Virginia Real Estate Market Update

November 2015

Regional Market Update: The DC regional housing market continues to see strong sales activity with year over year increases in activity for the past 12 months. November sales volume across the region was slightly below $1.7 Billion, up 14.3% compared to last year. If you had any doubt that our market has recovered from the recession, check out the below chart. 

NOVA Market Update: Northern VA home prices remain stable. Year to date median prices in most jurisdictions are up. The only one lagging behind is Falls Church City (down 3.8% YoY). Fairfax County median sales price year to date was $475,000 for November.

Rate Update: On 12/16/15 the Fed announced a rate hike for the first time in nearly a decade. I will be posting about this soon. 

What to do when you find mice in your house

I recently got to spend some time with my favorite pest guy who not only knows his stuff (like he's an entomologist y'all) but likes to explain things to me in terms I can understand. It's fun, and it can take the edge off of some gross stuff.

At a routine termite inspection recently he was telling me about the last job he'd done - a routine mouse treatment.

"So what should you do if there's a mouse in your house?" I asked

1. Do something. Ignoring them will just invite more. Mice are social creatures and when they find a place that's comfy they invite friends - and they invite their friends- and they invite their friends... Before you know it you've got rodent Burning Man in your laundry room. 
2. Clean until you find the nest. As good little party hosts, chances are good that they have been nesting somewhere. Do you have a place in your house where things are "stored" (see: forgotten) and you can't get to it easily, or often. That's a very likely candidate. If they've been partying in there for a while you may smell them too. They pee around the nest to help their friends find them. They also sometimes die nearby (especially if you maybe put out some poison) and that will make a smell too. 
3. Call a professional. Like so many things in home ownership, if you want it done right you really should get someone in with the expertice and experience and tools to help you make the problem go away. Most of the things you will think to do (put out traps/ poison / etc.) if not done correctly for the particulars of your situation will just drag out the process. You'll be calling them in a few months anyway. A pro will also be able to more easily assess if you've got a full on party, or just a few scouts and treat accordingly. They will be able to tailor the treatment for your family (dogs/ kids) and help keep everyone safe... everyone but the mice.