Dan Vollmer, Associate Broker, ABR/CRS/GRI, REMAX 1st Olympic REALTORS

Nowadays many things need to be considered when one is buying a home. A home is an investment and a place that meets your family’s needs and where you feel safe and make friends.
You also want to get a good deal for your money and a mortgage payment that you can live with. Here are a few things to keep in mind that will help you narrow down your choice.

1- Understand that this home will likely not be your home forever. Many buyers go into a home purchase thinking they will be in this home for a long time. Even if you think you’ll be there for 10 years, the likelihood is that you won’t. So much about life changes within such a short period of time (stages of life, interests, job changes), that you can’t plan for your entire future when buying a home. Find a home that suits you now, and that you can most likely deal with if your family size gets a little bigger.

2- Speak with your friends and family to help you select a good Real Estate Agent. Once you have had a face to face meeting with the agent and you feel comfortable with them, you then need to put all your trust in them and let them represent you just like you would hire an attorney on a case. You no longer need to lean on friends, family, or the media. They are not professionals in the industry and they won’t be the ones living in your house and paying the mortgage. Your friends and family do know you and should be a good source for a second opinion and may also ask you some questions you may not have thought of. Allow your agent to be the experts on the market conditions, what homes are worth, or how you should negotiate. It’s a frustrating battle when a good agent’s advice is tempered with the ‘wisdom’ of their client’s out-of-state family members. Be polite, but learn to trust your agent first.

3- Always keep in mind that someday you’ll want to sell this place. While you might not need three bedrooms, 2.5 baths and a full unfinished basement right now, when you go to sell, you’ll want to appeal to the broadest market. If you buy a home that only suits a single professional, you’ll be looking for a very specific buyer when the time comes to upgrade or move. Don’t overdo it, but try to always keep in mind the market you’ll want to reach as a seller down the road.

In Lynchburg, Bedford County, Campbell County and other areas in Central Virginia, one of the highly recommended agents is Dan Vollmer from the ReMax 1st Olympic office on
Timberlake Rd. in Lynchburg, VA. He has been in the profession for more than 5 years and has helped hundred of buyers find home that they are very pleased with. He takes great pride in serving his customers and knows his stuff. Since 2009, I have been friends with him and worked with him professionally. With Dan and his ReMax team you cannot go wrong.

Call or text Dan today: 434.420.1238 Also, email at danvollmer@att.net

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WEB www.DanVollmer.com

Jay A. Kumar

Did you know that the government allows your phone number to be sold to telemarketers?

Every time someone pulls your credit, the big three credit bureaus take your information and sell it to anyone who will pay them.

The only way to keep them from calling you is to register with the ‘National Do Not call registry’.  It is very simple and can be done for your home phone or cell phone. 

Just go to their website and follow these 3 simple steps.

Step 1: REGISTER YOUR HOME OR MOBILE PHONE NUMBER

Follow the registration steps below.

1. Enter up to three phone numbers and your email address. Click Submit.
2. Check for errors. Click Register.
3. Check your email for a message from Register@donotcall.gov. Open the email and click on the link to complete your registration.

If you share any of these telephone numbers with others, please remember that you are registering for everyone who uses these lines.

Step 2: Make Sure Your Information is Correct

Please check your phone number(s) and email address below. If they are correct, click Register to continue. To make a correction, click Change.

Your email address MUST be correct to process your registration.

STEP 3: OPEN YOUR EMAIL AND CLICK ON the LINK

You have submitted your phone number(s) for registration in the National Do Not Call Registry. You will receive an email from Register@donotcall.gov. To complete your registration, you must open the email and click on the link provided.

Important: If you do not click on the link in the email within 72 hours, your phone number will not be registered.

Here is a sample link:
https://www.donotcall.gov/register/RegConf.aspx?09DAD7BF-9A98-4F4F-

Click on the link to complete your request to register your phone number with the last four digits 8795 on the National Do Not Call Registry.

Important: You must respond to this email by clicking the link within 72 hours for your registration to be successful.

Important: After you click on the link, print the web page and keep it for your records.

REGISTRATION COMPLETE

You have registered the following telephone number in the National Do Not Call Registry:

(434) 258-8795

You may print this page if you wish to retain a copy for your records. By the way, the number above is my number and you can call me anytime especially if you have questions on home financing in the state of Virginia.

Last but not least, you can also call 888-382-1222 and register via phone.  Both ways, you will be registered for the next 5 years and it does not cost you anything.  While you are at it, might as well opt out from credit card offers and save our planet too.

Jay A. Kumar

Jay A. Kumar

Selling your home? Make sure your home is staged by a professional.

What are your favorite foods? Dark chocolate, filet mignon, mashed potatoes or perhaps pizza? You may enjoy each of these foods by themselves but would you ever consider mixing them together in a casserole? They may not even work together as part of the same meal. This same sensible restraint applies to the design of our homes. Every home has varying degrees of detail that contribute to the overall recipe: color, lighting, texture, scale, balance and proportion. Each ingredient must work well with the others in order to create an appealing plate.

We all have different taste preferences but when staging a home to sell, the goal is to eliminate anything that is taste specific. This may mean something as standard as a change in wall color, removing elements that lend towards a specific generational era or even eliminating ethnic and religious symbols. Buyers want to envision themselves living in a home so if your personal style shines through they will not be able to see themselves living there. The architecture will be hidden by the distraction of your personal taste. Many people are eclectic in style but just because you may like a variety of things, doesn’t mean that they should all be featured “on the stage” at the same time; that’s why there are scene changes in a play.

So how do you achieve a balance that reflects personality yet removes the personal elements?

To get a sense of what might work, do this exercise to see how you instinctively react to different décor elements. A good rule of thumb is to take a picture of each wall in a room. Look at the photo.

Where does your eye instinctively go? If it is automatically drawn to your personal belongings, then some de-cluttering may be in store. The eye should always go to the architecture in a room, such as a fireplace, not to your personal belongings. An undisciplined room can compete for attention causing your eye to never get a chance to rest on the highlights. Practice this technique throughout the house and you’ll be much more conscious of the things that compete for your attention, then it becomes easier to see your home the way buyers do. Often photos are the first impression a home buyer has of your house because this is what they are seeing on MLS so you should do everything you can to set your home apart from all the others you are competing with.

Remember, when you assemble the ingredients for your home, group them together so that your home becomes an appetizing entree. Context is everything. If there are too many distractions, odds are good that some purging is due. Just remember this: Your favorite recipes feature ingredients that blend together tastefully. Who would have ever thought to think of food when figuring out the right balance for design?

To see how this home was staged or to talk about a consultation for your home, contact Heather Bonawitz, Owner of Becoming Designs at  becomingdesigns.com or call 434-352-1334 or email: becomingdesigns@mail.com

Get the right tax professional!

Guest post by Bryan D. Johnson, CPA

One area of finances that can very easily be neglected is tax advice and planning. While most people may do their own taxes or go to an outfit they saw on TV that hires people at minimum wage during tax season, anyone who truly wants to benefit from our massive tax code and make sure that they are following all the rules needs a tax professional. The best source will be a local CPA.

CPA’s are truly the professionals in the area of tax preparation, tax planning, financial planning, business valuation, representation to tax authorities, etc… CPAs have to be licensed, they are required to have so much continuing education each year, it’s their full time job to be knowledgeable in the area of tax, and they are there year around. When it comes to taxes and the ever-changing tax law, you want a professional.

Not only do you want a professional to prepare your tax return, but you will want that person to help out if the tax authorities send you a notice. There are many times where the IRS or the Virginia Department of Taxation will make mistakes or lose return documents and try to penalize the taxpayer. Your CPA will step in and act as an advocate for you as part of that tax return preparation you paid for. They will focus on saving you the most possible on your taxes, but are there for you all year long.

As far as cost goes, that is certainly a myth as well. It is a know fact that tax preparation services offer a low rate on TV and then end up charging much more since they may have additional charges for all the extra forms that they have to fill out. Most CPA’s are usually quite amazed at what these businesses charge for tax return preparation. With most of these tax returns the CPA’s fees would have been lower and more reasonable and you would have a piece of mind that someone totally qualified was submitting your information to the IRS.

In Lynchburg and the surrounding areas, the CPA of choice who I would endorse is Bryan D. Johnson. He has been in the profession for more than 15 years and now owns his own business. He takes great pride in serving his customers and knows his stuff. He not only does my taxes, he helps me plan my future and makes sure I am documenting everything correctly. He is excellent for personal and business returns and is conveniently located near Graves Mill Shopping center. With Bryan and his team you cannot go wrong.

Bryan D. Johnson, CPA is with Mather, Johnson & Associates at 1922B Graves Mill Rd. in Lynchburg, VA 24502. He can be reached at (434) 316-5214 or by email at bryan@mathercpas.com.

Credit history:

One of the most important things these days is the credit score. Different loan programs have different minimum requirements. Contact me and I can discuss this with you. Note: Lenders use three different scores and they have their own unique scoring system. It will NOT be the same as a score that you might have pulled online. The FICO people have introduced a new website which will really help you understand credit scoring etc.

Income
The amount you currently earn will play a part in whether or not you can receive credit. Lenders will check how long you have worked in the same field and if it is a steady job or at least you get a steady base income. People who work on commission or are self employed have to have a longer work history with a good bottom line on their tax return and their income should not be declining from one year to another.

Monthly Expenses

Lenders will also want to know your monthly liabilities since they are your minimum fixed expenses. They could include a car payment, college loan, credit card minimum payment etc. When you include the new total mortgage payment you get a debt ratio called the DTI (Debt to Income). This no. is very critical also.

Assets

These are things that help attest to your financial stability and can be used as a source to help make loan payments if you are between jobs or have to take a medical leave. Assets consist of items such as cash, stocks, and/or retirement accounts, etc.
Note: Most government loans do not normally need any assets.

Rental history: This does matter but normally is not a deal breaker as long as you don’t owe any of your landlords any money from the past and it is showing on your credit report.

Bad or old debt
Last but not least, all collections and judgments have to be paid in full before they will make a new loan. If you have had a BK etc. please call. It’s not the end of the world.

Appraisal: Appraisals these days will also be done by an independent AMC (Appraisal Management Company) and will not be influenced by anyone party to the loan. Lenders want to also loan on homes that are in good condition.
Don’t let any of this scare you. All you have to do is call and spend a few minutes with me. We have many ways to help our customers even when they do not qualify the first time.

For more details or financing questions feel free to contact me.

Jay A. Kumar

Last week Fannie Mae relaxed the standards on a program that used to be very popular.

Around 2005, a common conventional loan product for purchases had been the loan which buyers loved. Some folks avoided the mortgage insurance (MI) premium by doing what is called an 80/20 loan which involved getting a second mortgage for the 20%. After the mortgage meltdown we lost both of these programs.

Keep in mind, one of the biggest reasons for the foreclosure crisis in the U.S. was due to the mismatch between borrowers and particular loan programs that they choose; not the existence of the loan features themselves. We still have a wide variety of ARM programs and many people benefit from them.

The new program is the new Flex 97. The Flex 97 and is not really a new program but is available again since MI is now available at a 97% loan to value purchase. Additionally, the down payment of 3% can be a gift. There is no upfront MI like the FHA product and the loan limit is $417k except for the high cost areas where the limit is higher. You must have good credit in order to qualify for this loan.

For more details and payment information feel free to contact me.

Jay A. Kumar

Mortgage loans (offered by banks, lenders, and brokers)

If you are buying a home or refinancing a home, chances are it will be financed with a conventional or government loan. Brokers generally have a wide variety of lenders that they can go to in order to find you the most suitable loan for your particular situation. Once these loans are closed, they are sold off to Fannie Mae or into the secondary market. Lenders that sell their loans off to Fannie Mae are very particular when it comes to loans because they want to ensure that they will be able to sell their loans to Fannie Mae. Banks, lenders and brokers all sell their loans to Fannie Mae.

Some times when a person cannot qualify for a loan that can be sold to the secondary a bank may do a portfolio loan or an in-house loan.

Bank loans (Portfolio or in-house)

Bank loans are generally given to bank employees, people the bank knows well or have lots of money, if you are looking for a construction loan or are purchasing land. Unlike brokers, bank loans are all internal so they can’t shop around outside of their own loan programs to find a more suitable loan to your situation. These loans aren’t sold to Fannie Mae either which is why they are popular for those looking for construction loans or looking to purchase land. For example, a dentist who starts a practice will not be eligible for the secondary market until they have two full years of income history with that business. This is where portfolio or in-house loans come in because banks may sometimes help this dentist buy a home.

Equity loans

Equity loans or equity lines are loans that are normally 2^nd loans and are based on the equity in the house. Years ago, people bought homes with no money down by using 80/20 loans to avoid mortgage insurance. The 20% loan is basically the equity loan.

In recent times lenders and banks have reduced to limit on 2^nd loans to between 80-90 % of the value of the house. This would mean that you might be able to get a 80/10/10 loan.

The last 10% would be your own money. If you already own a house then your limit for a second would basically be 80-90% of the value of the house.

Jay A. Kumar

Now it’s time to attack. A great place to start is with a spending freeze. Do a needs vs. wants analysis. Keep in mind that your needs should not total more than 25 different things. For example, you need shelter, food, transportation, phone, clothes, etc. Wants may be items like a cell phone, cable, memberships, private lessons and, yes, even Starbucks. I am guilty of that as well but I have a budget for it. With the extra money you have you can now start attacking the smallest balance first even though it makes more sense to pay on the card with the highest interest. We are looking for small victories. Not all of us can kill a goliath.

Pay off the card with the Lowest Balance

Paying off cards with a lower balance will allow you to pay off certain cards quicker than others. This will work towards faster results and may be a more encouraging method to pursue when paying off your credit cards. When it comes to paying off credit card debt, motivation is often underestimated. Once you payoff one card, you will have extra money to put toward the next card. Remember to keep making minimum payments on all cards while you are attacking one card at a time.

Paying on the Highest Interest Rate

In the long run, this method will allow you to save the most amount of money. It’s possible that this card may have the highest balance as well and if this is the case, you will be saving yourself an even larger amount of money by paying this card off. This may take you awhile so don’t let yourself become discouraged. If you feel like this might be demoralizing, you may be better off paying off cards with the lowest balance first.

For more help see post on money saving tips.

Jay A. Kumar

Here is what the lender wants to see on your credit report. First of all, your credit score is like a snapshot of how you have handled credit and it is an important factor in judging the amount of risk involved in giving you a loan. Credit scores include information like how much credit has already been extended to you and what your balances and payments are on your outstanding debt. It also tells us if you have any current or prior collections, judgments or bankruptcies.

Sometimes people say they know what their score is. Well, if you went to an online site and got your score then you need to know that the mortgage world has a different scoring system and it is usually stricter. If your credit score is marginal then it can make a huge difference. Here is an example of a marginal customer I got yesterday. My lenders want a 640 middle score and he has a 652 on his own report. However, when I pulled his score, I got a middle of 636. This will have a huge difference on what rate and payment he will get.

Exp – My customer got a score of 571 and I got a score of 636. A 65 point difference.

Tran – My customer got a score of 652 and I got a score of 633. A 19 point difference.

Equ – My customer got a score of 702 and I got a score of 651. A 51 point difference.

These differences mean that lenders can’t simply rely on any credit scores you provide them with. They need to go and pull the credit themselves to see what numbers they are provided with.  The good news is that when I pull your credit, I can use that same report with any number of lenders and the score is good for 90 days.

Curious as to how credit inquiries affect your credit score?

Jay A. Kumar