MYTH: “It’s impossible to get low down payment loans.”
FACT: FHA down payments are 3.5% and VA is 0%. In some areas, there may be some 0% down payment USDA loans available. FNMA and Freddie Mac have 3% down payment programs.
MYTH: “It takes perfect credit to get a loan.”
FACT: There is a relationship of better rates to better credit but many issues on a credit report can be explained or corrected. The way to know for sure is to speak to a reliable lender.
MYTH: “If I've had a bankruptcy or foreclosure, I can't qualify.” FACT: Credit history following a bankruptcy or foreclosure is very important and there can be extenuating circumstances. It only takes a few moments with a reliable lending professional to find out if your individual situation will allow you to quality for a new mortgage.
MYTH: “Getting pre-approved is expensive.” FACT: Usually, the only expense to getting pre-approved is the cost of the credit report which could be around $35. The advantage is that you will know that you qualify for a particular mortgage amount.
MYTH: “I should wait to qualify until I find a home.”
FACT: It can take weeks to qualify for a mortgage especially if there are issues that need to be corrected. The best interest rates are only available for the highest credit scores. It is to your advantage to start the qualifying process early in your home search.
MYTH: “All lenders are the same.”
FACT: Reliable lending professionals will explain the entire process before collecting fees, quote fees up-front, have competitive products, do what is necessary to get the loan approved and close at the locked rate and terms. Ask for recommendations from recent borrowers.
MYTH: “Adjustable Rate Mortgages are more expensive than fixed rate mortgages.”
FACT: Adjustable Rate Mortgages can be less expensive than fixed rate mortgages if the buyer’s circumstances warrant it. If a buyer is only going to be in a home for a few years before selling, it can be determined if an ARM loan will result in the lowest way to finance the property. There are many variables and you need to be aware of them before deciding which type of loan to finance your home purchase.
Buyers and Sellers need solid information to make good decisions. Call me with your questions or to get a recommendation of a reliable lender who can give you the real facts.
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FHA Reduces Mortage Insurance Premiums
On Jan. 20th, the U.S. Department of Housing announced that they will lower the annual MIP rate on all FHA loans closing on or after January 27, 2017. The annual premium is dropping 25 basis points-from 0.85 percent of the value of the mortgage to 0.60 percent. The change goes into effect for borrowers who refinance mortgages or buy homes with FHA loans on or after January 27, 2017.
The reduction takes insurance premium levels back down to near a decade ago, according to FHA. The move is expected to save homeowners with FHA-insured mortgages approximately $500 per year. FHA predicts that the reduction will lower the cost of housing for approximately 1 million borrowers who are expected to use FHA-insured financing to either buy a home or refinance a mortgage.
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Washington home prices in 2016 match record set during housing boom: Washington Post
The D.C. region’s housing market closed out the year strong...
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Why the D.C. area’s tight inventory of home listings won’t be relieved anytime soon: Washington Post
One reason inventory has declined is that fewer owners are putting their homes on the market.
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If you’re a home seller, it pays to live in one of these three hot Northern Virginian communities: Washington Post
Median home prices shot up in Falls Church, North Arlington and Pimmit Hills.
Tesla's solar roofs could revolutionize the industry: YouTube
These roofs could be a game changer for Eco Housing!
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Self-made millionaire: Not buying a home is the single biggest millennial mistake: CNBC
Real estate is an "escalator to wealth," David Bach tells CNBC.
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5-Cent Stamps
What a Difference 50 years Makes
- In 1966, you could send a letter for five cents and now, it costs forty-seven cents
- A dozen eggs were $0.60 but they’ve only doubled to $1.33.
- A gallon of milk was $0.99 and today, it costs $3.98.
- A gallon of gas was $0.32 and today, it is $2.49.
- The average cost of a new car in 1966 was $3,500 and today, it will cost $33,560. New cars have more features than the earlier models but they’re still ten times more expensive.
- The median price of a new home was $21,700 and now, is $304,500.
- Interestingly, mortgage rates are actually lower today at 4-4.5% than they were fifty years ago when they were just under 7%. The rates have been low for long enough that many people have been lulled into believing that they are not going to go up.
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Here Comes the Winter!
- Take the time to clean gutters so rain and melting snow can drain properly. Water can seep in to a house with clogged downspouts, sometimes causing major damage. Take this opportunity to check for leaks in your gutters.
- Ensure your furnace works now, BEFORE you need it. In general, it's a good idea to change filters regularly and have the furnace checked out annually by an HVAC professional.
- Chimneys should be cleaned annually to reduce creosote build-up. Capping your chimney will help keep out foreign objects as well as rain water, which can deteriorate the chimney walls and be sure to keep the damper closed when the fireplace is not in use.
- Bleed and turn off all external water pipes. Frozen pipes can cause serious damage. By ensuring the lines are drained now, you can save yourself a lot of headache, not to mention money.
- Have ceiling fans? Change the rotation direction. This simple step will help air flow and circulation by pushing warm air down, keeping rooms more comfortable.
- Consider adding insulation. This may be a more expensive tip, but it really pays off. It’s recommended that homes in the U.S. have a minimum of 12 inches of insulation in the attic. Currently there are several insulation options, including recycled denim that has been re-purposed.
- For the long term “big picture,” have an energy audit to ensure your home is not losing heat where you can’t see.
- The final tip for staying warm in your house as temperatures drop outside: instead of turning up the thermostat, add an additional layer of clothing.
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Lose Those Dust Bunnies!
Having a dust-free home isn’t difficult, but it takes a serious commitment and a housekeeping strategy that addresses dust and its causes. Whether your motive is cleanliness or to eliminate the cause of some allergies and asthma symptoms, it will be worth it.
- Try to dust your home at least twice a week. Dust the tallest items and work your way down. Dust picture frames, blinds, baseboards and anything that stands out from the wall.
- Feather dusters can spread more dust than they collect compared to microfiber cloths that attracts dust because they have an electrostatic charge.
- Filters on heating and air-conditioning systems should be changed often not only to remove dust from the air but to increase the efficiency of the units themselves. Special HEPA filters can improve the overall indoor air quality.
- Frequently changing the bag or emptying the container in your vacuum is helpful in eliminating dust.
- Vacuum the floors at least once a week. Vacuum under furniture and periodically, move appliances to clean behind and underneath. Use the proper attachments to vacuum upholstered furniture and under cushions.
- Eliminate dust magnets like carpet, heavy drapes and upholstered furniture. Consider hard surface flooring like wood or tile instead of carpet.
- Keep windows closed to keep dust out.
- Clean your pillows and drapes.
- Damp mopping and dusting with plain water helps hold the dust and is environmentally friendly.
- A humidifier can eliminate static electricity which holds dust.
- Air purifiers circulate air and capture dust and other pollutants.
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WHY WAIT?
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