Good news for those who want to buy and are short on cash

With the implementation of the Frank-Dodd legislation in the mortgage industry, the number of qualified buyers were expected to decrease from the tightened loan qualification standards.

There is some good news however, that will aid a certain number of buyers in purchasing that dream property.  Several mortgage insurance companies are now insuring 95% conventional loans with 100% of the funds needed coming from gift funds.  The mortgage insurance premiums are no higher than normal in terms of the standard LTV and credit score differences.

So gone are the days when a buyer obtaining a conventional loan (up to $417,000) needed 5% of their own funds to purchase, unless putting 20% down.

If you would like to buy or sell a home, call me today.  I would love to assist you in the transaction.


                                                              Carla Brooks
                                                             703-577-4960
                                                          brkslong@aol.com

Why hiring a realtor to sell your home is a smart move

In the 1990's, my DH was concerned that the proliferation of the internet would render many sales positions obsolete.( He was and still is a mortgage loan officer.)  After all, if the facts and figures could be obtained online, then why would the consumer need a sales person to handle the transaction?

Time has proven that sales people are as valued today as they were before the use of the internet exploded. 

The role of salesperson has changed from being  "information" oriented to  "service" oriented.  As the "SYMS" department store slogan, "An educated consumer is our best customer", used to say, consumers increasingly are armed with a ton of knowledge before they ever meet a sales representative.  This knowledge has "lightened" the work load for sales personnel in regards to educating the consumer yet increased the service oriented tasks as the sales personnel strive to bring value to the table.

A professional realtor has ongoing education sessions with the top leaders in the real estate industry.  These leaders include successful colleagues, settlement attorneys, home inspectors, financial experts and legislative spokespersons.  This education translates to a wealth of experience and knowledge as the years go on.

Realtors are buffers between the home owner and the buyer's agents and the general public.  They are messengers of information and will guide the homeowner to make the right decisions in contract negotiations.  Realtors are current on all the legal forms that need to be completed with the sales contract and will be around after closing on the transaction to answer any questions and concerns that may pop up.

Call me today if you are in the market to buy or sell real estate.  Real estate is your largest financial investment and I never forget it.  I will guide you through the transaction and answer the multitude of questions that come up through the process. 

                                                           Carla Brooks
                                                          703-577-4960
                                                        brkslong@aol.com

An Informative Chart regarding mortgage rates

Mortgage Interest Rates are on the rise.  Whether there will be slow and  steady increases in the interest rates or fast and dramatic increases remains to be seen.  The KCM Blog offers this chart today on their new post site depicting examples of how the interest rate changes will affect the actual mortgage payment.  This chart does not include real estate taxes and homeowner's insurance.  Taxes and Insurance should be added to the mortgage payment of interest and principal to obtain the true monthly cost of owning the home.

I hope you find this chart informative. 

If you are ready to buy or sell a home or just want to discuss your options, call me today. I am never too busy to discuss the largest financial investment you will make!

Thank you

Carla Brooks
703-577-4960
brkslong@aol.com

Curious about Cash Transactions?

The Northern Virginia real estate market is competitive and will only become more so as  job opportunities continue to flow into the area.  Buyers are struggling to purchase their dream properties and often have to deal with multiple contract situations.  How many times have you heard a neighbor, friend or relative say that their contract offer was rejected in lieu of an offer by a "cash Buyer"?

According to the KCM Blog, roughly 25% of all transactions in the state of Virginia were cash transactions in September 2013.  If we reviewed the data for Northern Virginia the numbers would probably be slightly higher.

No need to get discouraged as Sellers are not rushing to grab those cash buyers as fervently as they used to. Logically speaking, a well qualified buyer that is willing to pay more (and in all likelihood will be approved for a loan) is the better deal.  At closing, the money from a cash buyer or a loan-approved buyer is the same.

In years past, sellers were often advised to grab that cash buyer and hang on for dear life since "cash is king" and there are no loan approval steps to fret over.  I've noticed a change from this thought in most recent years.

 Last year, while listing a property that needed updating,  each cash buyer felt they should pay less for the property since they had "cash". The cash buyer offers were anywhere from $10,000-$25,000 less than the offers from non cash buyers.  The seller waited for the right buyer to pay the price the home was listed for.  The seller eventually received a full price offer and was content.

Markets change over time in each locality.  Call a professional to have a candid discussion on your real estate needs.  A professional realtor not only has his/her experiences with the current & local market trends yet also the information of many colleagues' experiences.  This information can assist you in making the right decisions for the biggest investment of your life.

If you are in the market to buy or sell a home, call me today.  A home is most likely your largest financial investment and I never forget it!


                                                    Carla Brooks
                                                   703-577-4960
                                               Brkslong@aol.com               

Two Loan Programs that provide cash to the homeowner

Purchasing and Maintaining real estate can be tricky if one is low on cash for improvements.

 Many properties enter the market for sale needing anywhere from a few "fix ups" to a complete overhaul.

Appraisers note the conditions of the interior on the appraisal.  A home in poor condition can be problematic for the buyer seeking a loan.

There are two programs currently out there that can provide cash assistance to the homeowner.  One program is the "reverse mortgage" and the other is the FHA 203K loan.

The KCM blog has a great post today on these two programs here : KCM Blog


Enjoy the warmer weather and if you are in the market to buy or sell a home call me today for excellent service!

                                                         Carla Brooks
                                                    brkslong@aol.com
                                                       703-577-4960

PS Photos courtesy of Freedigitalphotos.com

Is January a good time to buy a home and/or sell a home?

As I hold Open Houses in the month of January I am noticing that many buyers are "Previewing" or making a "Dry run" as they start their home searches.

 They are definitely serious buyers.  Some have gone through the mortgage pre-approval process and some are planning on doing so in the near future.

Yet, I have been told by quite a few potential buyers that they are planning to buy in the "spring".  While there are some very good reasons to buy in the spring when the weather is generally more agreeable, there are certainly some very good reasons to act now.

For one thing, the Northern Virginia area is experiencing high demand for housing coupled with a limited supply of properties.  New household formations, delayed household formations during the Great Recession, a strong job market,   are some of the reasons for the increased demand.

Lack of building during the "Great Recession" is one reason for lack of supply.  In addition, some studies have shown that many retirees are electing to "stay put" in their homes as opposed to selling and downsizing.

Lack of inventory is a great reason to act now if purchasing a home in 2014.

 The potential for rising interest rates is another good reason to act in the near future.  The monthly mortgage payment is the "true cost" of owning a home.  As interest rates rise, the cost to own a home increases.  If acting now can save hundreds of dollars a month in mortgage interest payments, it only makes sense to buy now!

Happy New Year and call me to get the ball rolling on your next home sale or home purchase.  Its a great time to buy and sell!

Carla Brooks 

brkslong@aol.com

703-577-4960

PS Photo is a courtesy of freedigitalphotos.com