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Margie MacDonald's real estate blog about all things Northern Virginia: - Northern Virginia real estate

Margie MacDonald's real estate blog about all things Northern Virginia: - Northern Virginia real estate

Lending standards have gotten much tighter as a result of the mortgage crisis. Fannie Mae and Freddie Mac now require a credit “refresh” no more than three days prior to closing . Since most mortgages are sold to Fannie and Freddie, most lenders follow their guidelines. Your lender will be reviewing your credit report again just prior to the closing date so please do not do anything that would change your credit report before closing, even if you have received loan approval. Home buyers are often not aware of how something as innocent as making a credit card purchase or moving cash from one bank to another can jeopardize the mortgage application process. Please be aware of these common areas that need special attention:

Don’t Move Cash/Savings Around:
All funds have to be verified prior to closing, including the source of those funds. Moving assets around can create a paper trail nightmare. The best practice is to leave everything where it is, even if the purpose of the move is to pool your funds for buying the house. Please consult with your lender before you move any funds.

Large Deposits:
Your lender has to verify all sources of funds for the transaction. They will be looking at any large non-payroll deposits into your asset accounts—checking, savings, money market, etc. You should be prepared to document the source of these deposits—copy of the bonus check, receipt from the sale of an asset, etc. If you have a question as to what documentation is needed, please call your Loan Officer.

Selling Something?
If you are selling an asset such as a car, an antique, baseball card collection, etc, to come up with the cash for closing, please document the transaction. For instance, with the sale of a car, make a copy of the check the buyer gives you, the car title, and a bill of sale.

Gifts:
Gifts from relatives are a very common item in the purchase of a home; however, there are certain ways a gift needs to be handled so as to not create a paper nightmare for you. If you are going to receive a gift, please contact your Loan Officer before receiving the gift. You will be given specific instructions and a Gift Letter Form for your particular type of loan.

Become a Paper Hound:
Save all of your bank statements and pay stubs from now until closing. Your lender may need them so keep them handy.

Do Not Pack Any Financial Papers:
Keep all of your tax returns, along with any W-2′s, 1099′s, K-1′s, and any other financial papers from the past two years, in a handy place. If you sold a home in the past two years, also have your (HUD-1) Settlement Sheet handy. You may have to produce an item that you did not expect.

Credit Cards/New Debt:
Do not apply for any new credit. The new creditor will show up when your credit is refreshed just before closing, and the lender will have to verify that there are no new accounts or debt before you can close. If you are planning to pay debt off in order to close, check with your lender first. They may be able to pay off that debt at closing with no effect on your approval process. If you try to pay it off before closing, it may not show up on your credit report in time to verify the pay-off, and the lender will have to manually re-verify each creditor’s current balance, which requires more time, and may delay closing.

Changing Jobs:
Please do not change jobs during this process without your Loan Officer’s knowledge. This could jeopardize your loan approval.

Today’s interest rates continue to be at historically low levels. It’s a great time to buy, refinance, or perhaps even refinance to a 15 year loan to save tens of thousands of dollars in interest. I have several loan officers that can offer incredibly competitive rates. Please contact me if you need more information!

Margie MacDonald's real estate blog about all things Northern Virginia: - Northern Virginia real estate

Are you interested in providing input for the future of Route 66 between the Beltway and Route 15 in Prince William County? Now is your chance!

A Tier 1 Environmental Impact Statement (EIS) is being developed by the Virginia Department of Transportation (VDOT), the Federal Highway Administration, and the Virginia Department of Rail and Public Transportation to study potential multi-modal improvements to address existing and future needs of Route 66. There are two meetings scheduled to gather public input, or you can email your comments to the study team’s leadership.

The upcoming meetings are:

You can email your comments to CG.Collins@VDOT.Virginia.gov or Stephen.C.Walter@Parsons.com. Get information and register for updates at www.HelpFix66.com.

Margie MacDonald's real estate blog about all things Northern Virginia: - Northern Virginia real estate

On December 23, 2011, Congress voted to extend the payroll tax cut for 2 months. The extension is being paid for by increasing and then diverting the fees that Fannie Mae and Freddie Mac charge banks to protect against credit-related losses on a mortgage portfolio. These fees are called guarantee fees or “g-fees,” and they are usually 15-25 basis points.

Congress voted to raise the guarantee fees that Fannie and Freddie charge beginning April 1, 2012 by 10 basis points, and these funds will be used to pay for the payroll tax cut extension. It is assumed that banks will pass this extra expense along to borrowers, and I have heard that mortgage interest rates will increase anywhere from .125% to .25% as a result. Some lenders have already started to increase their fees in anticipation of the April 1 increase.

If you’re thinking about buying a home, now might be a good time to do that! Below is a chart that shows how much more it will cost you to borrow money if rates go from 4% to 4.25%.

Margie MacDonald's real estate blog about all things Northern Virginia: - Northern Virginia real estate

Jason Cameron, host of the DIY Network’s Man Caves and Desperate Landscapes, was in town this weekend to speak at the 2012 Home & Remodeling Show at the Dulles Expo Center. I had the opportunity to sit down with him on Saturday morning before he went on stage.

As a Realtor, I was curious to know what trends he was seeing both inside and outside the home. One word sums it up–Green.

Outside the Home

Permeable Paving: The first thing Jason said when I asked him what trends he was seeing was a lack of concrete. For instance, instead of driveways and walkways being made out of concrete, he’s seeing permeable paving being used–porous material that allows water and air to move through them.

Synthetic Turf: I had to laugh at this one. I had an image of the fake grass rug my best friend used under the awning of her tent trailer when we went on our camping adventures. Jason said so many advancements have been made in synthetic turf that it is hard to distinguish it from the real thing.

Rain Chains: Widely used in Japan, rain chains can be used as a decorative alternative to a downspout. They are becoming quite trendy according to Jason.

One of the attractions of a rain chain is that it can be easily combined with a rainwater harvesting system that is both beautiful and practical. Jason said rainwater barrels are also popular.

Inside the Home

Recycled Materials Countertops: Using recycled materials such as paper and aluminum for kitchen countertops is a big trend, but Jas0n specifically talked about recycled glass countertops. A combination of recycled glass and resin, these countertops are every bit as durable as granite but less expensive.

Are you thinking of putting your home on the market and want to know what your competition looks like or would like to know what updates you should make to stay competitive? Give me a call or email me! I would be happy to schedule a tour of homes that are currently on the market.

Look for more of the interview with Jason Cameron by Seher Chowdhry on Centreville Patch.

Margie MacDonald's real estate blog about all things Northern Virginia: - Northern Virginia real estate

The 2012 Home & Remodeling Show is at the Dulles Expo Center this weekend, January 20-22. Friday: 10:00am – 9:00pm. Saturday: 9:00am – 9:00pm. Sunday: 10:00am – 6:00pm

Adult tickets: $10 at the door, $7 online. Children 6-12 years: $3. Children 5 and under: free.

Jason Cameron of DIY’s Man Caves and Desperate Landscapes will be appearing Saturday at 1pm and 5pm, and Sunday at 1pm and 4pm. I’ll be interviewing Jason Cameron so send me your questions!

Margie MacDonald's real estate blog about all things Northern Virginia: - Northern Virginia real estate

The most noticeable statistic in the Market Statistics released by NVAR for December is the inventory. Inventory in December is the lowest it’s been since May, 2005. This usually has the effect of pushing values up. I expect more foreclosures to come on the market now that lenders have started to process foreclosures again after the robo-signing scandal so any large increase in home values in the short term will probably be tempered as inventory increases. The good news for those living in Virginia is that the foreclosure timeline is one of the shortest in the nation so any increase we see in foreclosure inventory will be moved quickly.

December Active Listings

December Homes SoldDecember Median Price

Northern Virginia Homes Sold v. Active Listings

Northern Virginia Median Prices

Margie MacDonald's real estate blog about all things Northern Virginia: - Northern Virginia real estate

If you’re like a lot of Americans, you might not be ready to buy a home right now. At a time when job security is shakey, the U.S. economy continues to stumble, and almost a quarter of U.S. homeowners are underwater with negative equity, it’s hard to get excited about buying a home.

Today, I heard the phrase, “protect against inflation,” and I realized that no matter how many good reason there are to not buy a home, there is one very important reason to buy a home–your future financial health.

The economy will recover, and the job market will strengthen. Along with that recovery, interest rates and home values will go up. We are already seeing a surge in rental prices because those that are looking for a new home are not buying, putting tremendous demand on the existing rental market. I had two clients in the last six months that were able to rent their condos out for at least $250 a month more than they did last year–great for them, not great for all the renters out there.

Even in the worst housing market, if you have a thirty year fixed mortgage, at the end of thirty years, you will have paid the house off, and that equity is yours. You can’t pay off a mortgage and end up owning a home free and clear if you are a renter. We are in the perfect moment to buy a home–low prices, low interest rates, and rental rates that are going up faster than the cost of living.

Buying a home today will protect you against tomorrow’s inflation when housing prices will be higher, interest rates will be higher, and the alternative to owning–renting–will also be higher.

Margie MacDonald's real estate blog about all things Northern Virginia: - Northern Virginia real estate