The Number 1 Thing Buyers Forget....

Closing Cost......Buying a home involves more out-of-pocket than just the down payment. There are also closing costs to pay for items such as title policies, recording fees, inspections, courier charges, reserves to set up an impound account and fees that a lender charges, but it is the fees a lender charges to make a loan that will typically cost you the most.

 

(Closing costs are on top of the purchase price.)

How Much Are Closing Costs?
As a rule of thumb, closing costs to buy a home run about 2 to 4 percent of the purchase price. Much depends on the points and origination fees a lender charges to make the loan, which are disclosed on the buyer's Good Faith Estimate.

The total closing costs to purchase a $300,000 home could cost anywhere from approximately $3,000 to $12,000 or more.

Non-Recurring Closing Costs
Fees that are paid once and never again are called non-recurring. These fees are one-time charges for such items as:

• Title Policies
• Escrow or closing
• Notary
• Wire fees
• Courier / Delivery
• Attorney fees
• Endorsements
• Recording
• State, County or City Transfer Taxes
• Home Protection Plans
• Natural Hazard Disclosures
• Home Inspection

Recurring Closings Costs

 Recurring fees are those charges that you will pay again and again. They include such fees as:

• Fire Insurance Premium
• Flood Insurance (if required in your area)
• Property Taxes
• Mutual or Private Mortgage Insurance Premiums
• Prepaid Interest

Can a Seller Credit the Buyer for Closing Costs?
Always check with your lender before you negotiate an offer that involves a seller credit because the lender might not allow it.

• If you are financing 100% of the purchase price, the lender might limit your credit to 3% of the purchase price.
• Depending on your FICO score and the amount of your down payment, the lender might allow a seller to credit you as much as 6% of the purchase price.
• Lenders will not let a borrower receive cash from a seller at closing, regardless of what you may hear at those no-money-down seminars.

So remember Buyers..to include this hidden fees in your budget and speak with your realotr and morgage officer before hand, to get a better understanding of what extra fees are being charged...






 

 

 

 

 

 

To Buy or To Rent....That is the Question Part 2

Words you will hear few real estate agents mutter: Not everybody should own a home! Some people aren't cut out for home ownership, for a variety of reasons. Are you one of those who should rent and not buy? Here are some ways to tell.


Bad Credit Report
Does your credit report tank? If your FICO score is below 620, you're not going to receive a good interest rate for a loan and, in fact, that kind of score could dump you into the hands of a predatory lender. Not a good sign.

If you want to buy with bad credit, you should work on fixing it before applying for a loan. Four late payments is enough to disqualify you from obtaining a loan. You can also order your credit report free online.

Job Instability or Relocation

How secure is your job? A high-rolling Sacramento buyer purchased a home in Midtown. His mortgage payments were $3,500 a month, which was a lot for a 25-year-old. However, that payment was affordable while this guy was earning an annual $120,000 salary. But when he lost his job, he also lost his home to foreclosure.

• Is Your Job in Jeopardy?
• Is your company laying off? Could you be fired and, if so, how hard would it be to get another job right away? Unemployment compensation is rarely enough to cover mortgage payments.

Relocation.
Are you likely to be transferred to another city within the next two to three years? If you had to sell due to a job transfer, your property would need to appreciate at least 10% to cover the cost of selling; otherwise, you would lose money on the sale. When you buy a home, you should plan to stay put for a while.

Maintenance Issues
All homes require upkeep and maintenance. Not everybody has the where-with-all, much less the desire, to tackle home repair projects. In addition, many first-time home buyers can not afford to hire a professional to fix things that break. Experts suggest you set aside 5% of the purchase price to cover maintenance and repairs when you buy a home.

When Renting Costs Considerably Less
If your mortgage payment would be triple the amount (or more) you would pay for rent, it might not make financial sense for you to buy. For example, if it would cost you $2,000 a month to rent what would cost you $6,000 per month to own, does it make sense to pay $48,000 a year more to own a home?

If you are in a 30% tax bracket, you might not come close to recouping the difference you paid. Say your deductible expenses are $5,000 a month; 30% of that is only $1,500, which would be your true tax savings per month. Would you spend $6,000 to save $1,500? For more information, please consult a tax accountant or CPA.

I hope this gives you more clarity on what you should do..As said in part one...the real question is WHERE ARE YOU IN YOUR LIFE!!!!!

Top 5 Most Unique Thanksgiving Desserts

Its Thanksgiving time..A time where you look back on all of your blessings, spend time with your family, friends and love ones and eat till you pass out with a huge smile on your face. 

If your tired of the same o' same o', or just want to spice up your table, hear are some unique pies, with an even more unique, delicious taste to compliment it.  Simply click on the links to view pictures and to get the recipes. 

1) Pumpkin Mouse Pie
2) Cinnamon Apple Cake
3) Cinnamon Swirled Pumpkin Rolls
4) Almond Tart
5) Maple Glazed Donuts

What To Do For Thanksgiving???

Reston is a great place to enjoy holiday events. Reston Town Center hosts many holiday activities including a holiday parade, visits with Santa, a Christmas Tree lighting ceremony and much more. The Reston community kicks off the holiday season with a full day celebration on the day after Thanksgiving, Friday, November 26, 2010.



Here is the schedule of special events at Reston Town Center throughout the holiday season. All events are rain or shine.

Friday, November 26, 2010

Annual Race for the Kids

8 a.m. Fountain Square. Kids join Olympian and local hero Alan Webb in "The Reston Mile" to benefit Neediest Kids. Donation of $5 for participation is encouraged.


Annual Holiday Parade

11 a.m. Market Street & Freedom Drive. Join the community and "Ring in the Season!" at Reston Town Center. Santa and Mrs. Claus will be joined by Macy's style balloons, musical groups, dancers, antique cars and more making their merry way down Market Street. For 2010, the parade is a celebration of a milestone year at Reston Town Center, commemorating its 20th anniversary with the theme “Defining. Inspiring. 20 Years.”


Visit with Santa

12:30 - 4:30 p.m. Photos are $10 each with proceeds benefiting a local non-profit.


Holiday Tree Lighting & Sing Along

6 p.m. Market Street & Fountain Square. Santa and Mrs. Claus arrive on their horse drawn carriage to magically light up Reston Town Center and our holiday tree, followed by a chorus of traditional holiday music led by Reston Chorale and Brass Quintet. Horse Drawn Carriage Rides 6:30 - 10 pm, Located in front of Talbot's on Market Street. $5 per person (children 12 and under are free). All proceeds benefit Volunteer Fairfax.

(NOTE: December at Reston Town Center Ice Skating Pavilion Open every day for public skating until March. )



Holidays are Here!

Through December, Reston Town Center will host performances of music and dance by community groups at Fountain Square, and strolling on Market Street. Horse drawn carriage rides are scheduled for Saturdays, December 4, 11, and 18, 2010, from 2-7 p.m. All proceeds benefit local charities. $5 per person, children 5 and under ride free with adult.



Reston Town Center is a shopping center located at the intersection of Reston Parkway and New Dominion Parkway in Reston, Virginia.

Hope to see You There   :)

What to look for when house hunting!

Are you thinking about buying a home? If you are you really need to keep reading what’s below. This is our "Top Things to Look for When Buying a Home" and these things can help to get your search off to the right start. While the number of rooms, condition of the kitchen, and size of the yard are important, there are other things to consider before you make an offer.



• Location, Location, Location
They say that the 3 most important things to think about when buying are home are location, location, location. You can live with almost any imperfection in a home if you love the neighborhood and your neighbors. You can change almost everything else. But, once bought, you cannot change your home's location. When you go house hunting, consider any potential home's proximity to your work, the charm of the neighborhood, how the home is situated on the lot, ease of access, noise from neighbors, traffic, or pets, and access to parks, shopping, schools, and public transportation.


• Situation Factors
Beyond location look at the particular site of the home. If the home is on a hill does it have a view, a walkout basement, or lots of stairs to climb? Do neighbors' windows look directly into the home? Is the yard suitable for kids, pets, gardening, or other uses? Is access to the property safe regarding driveway elevation, stairs up to (or down to) the front door?


• Check Out the Neighborhood
Be sure the neighborhood, and not just the house, meets your expectations. Drive around on week days and weekends, during the day and in the evening. If you want to save on gas instead of driving around wait until your Realtor shows you the home and tell them you also want to take a look around the neighborhood. You should ask your self questions like… Are homes in the neighborhood consistent in size and features? Do the neighbors keep the yards clean and tidy or are there old cars and trash around? Is the neighborhood safe enough for people to walk, run, or bike and are there children playing in the yards?


• Consider a Home's Curb Appeal
Your home should reflect your lifestyle. Do you live a laid-back life? Then you might not want a formal Victorian or Tudor style home. Something simpler and more contemporary might be in order. Look at the exterior features. A brick home is easier to maintain, unless you live in an earthquake-prone area! Is the roof in good condition? Is the landscaping attractive and are the sidewalks leading to the home safe?


• Size and Floor Plan
You may be thinking about buying your dream home. But is your dream home impractical? Do you really need 4 bedrooms and 4 baths when you live alone? A large home can give you the extra space you've always wanted for a home office or crafts or art projects. But you'll pay higher heating bills and have higher taxes. It will take more furniture to furnish and money to decorate. Think about how the new home space will be used and whether it will fit your lifestyle now and in the future.


• Bedrooms and Bathrooms
Decide how many bedrooms and bathrooms you really need, and only look at homes that meet your criteria. It would be a shame to fall in love with a cozy, charming cottage that just isn't big enough. An extra bedroom is always a plus, as it can be used for a home office, craft studio, or guest room. If you think you'll be adding more room later, be sure to consult an architect who can advise you on space planning, lot usage and city regulations.


• The Kitchen
They say the kitchen is the heart of your home, so don't settle for a home with a kitchen that just won't work. You can always remodel, but it's very costly. Can you just replace cabinet faces and countertops? Will an inexpensive makeover be sufficient? Don't worry about appliances, as they can usually be easily replaced.


• Closets and Storage
Older homes tend to have little closets and not a lot of storage space. If you have lots of sports equipment, craft supplies, out-of-season clothes, and holiday decorations, be sure you know where it will go in your new home. Newer homes tend to have big closets and lots of storage. You can always add storage space, but you might have to sacrifice living space in your rooms.


• Windows and Lighting
Do you love a bright sunny room or do you love privacy? Look at a home with light and sunshine in mind. Look at the locations of electrical outlets and fixtures. Will they accommodate your lighting needs? Is there recessed lighting in the kitchen, cove lighting in the family room and a lovely chandelier in the dining room? If not, you can add them later, but it's nice to have it in place when you move in.


• Finishing Touches
Sometimes the simplest home looks spectacular because of the installation of moldings, hardware and a fireplace. If these elements are important to you, look for them while house hunting or be ready to add them after you move in.




If you keep these specific elements of a home in mind, your house hunting will be more successful, and you'll likely end up with the home of your dreams!


Please feel free to leave your comments below; I would love to hear from you!


www.woodbridgerealestate.blogspot.com  

To Buy or Rent...That is the Question

This has been a long standing argument between people and I'm here to set the record straight.  Now the real question should be ............WHERE ARE YOU IN LIFE?  If you are moving to an area because of  work or other conditions, but don't plan to stick around for more than 5 years, then I would advice that you rent.  If you have retired or decided to settle down, then of course I would advice you to buy a home. 
Now,contrary to belief, owning a home that you live in, is NOT AN ASSET, it is a LIABILITY  and unless you are prepared to take on all the responsibilities that come with owning a home, you are liable to get yourself in deep doo doo. 

Now on the other end of the rainbow, there are many negatives, as well as positives with renting.  When renting a home, you lose the right of ownership...(DUHHH..I know that) is what you may be saying, but what that means is, for example, if the home is going or being foreclosed on, as the renter, know one is obligated to tell you and one day you may wake up with a note on your door.  Even if YOU have been paying every month on time, the owner or bank is not obligated in ANYWAY to let you know.  So before renting a home, check online for the foreclosure rate in the neighborhood, as well as have a Realtor write up an addendum stating that if that were to happen, the owner must tell you. 

So they both have there Pro's and Con's....When it comes to the long run...BUY...one comes to short run (5 years or less)...RENT..

Hope this helps and Renters...STAY AWARE.

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Protect Your Privacy while your home is for sale

Are your secrets safe? Before your home goes on the market and home buyers start to walking through, savvy sellers will relocate confidential information. Even so, you might be astonished to learn what home buyers can figure out about you.



Private Documents


• Is it snooping to open a drawer?


Not if the drawer is part of a built-in such as a kitchen cabinet or a dining room china cabinet. Buyers can innocently tug on a drawer to inspect its construction or depth and find important documents that you might not intend for anyone to see.






• Don't leave mail where anybody can find it.


Lots of sellers leave piles of opened mail neatly stacked on the kitchen counter. Buyers could find out how much you owe department stores or other credit cards. They can tell if you're late on your mortgage payments or if the I.R.S. is after you. Heaven forbid should you file bankruptcy or be sued and leave those documents on the table, but sellers do it. They must believe that buyers will not read someone else's personal mail, even when that mail is taped to the refrigerator door, begging to be read.

• Remove Diplomas and Wedding Photos from Walls

Notwithstanding that all personal items should be removed, sometimes sellers overlook the obvious and leave diplomas on the wall. People form biases and can carry a bias too far. For example, the seller might be a lawyer, and there are buyers who might not feel comfortable buying a home from a lawyer. For whatever reason. Diplomas also give away a seller's age or a close estimate. If a buyer sees a recent medical diploma, for example, the buyer might assume the seller is saddled with student loans and needs to sell to pay them off.


Wedding photos might give away the seller's religion, as do certain religious artifacts left in the home. Buyers can be prejudiced. Don't give buyers a way to form any opinion about you at all. Don't let buyers form ideas about you from the type of music you like or the literature you read.


So before you list you home for sale pack up anything remotely personal. If your house speaks to a buyer about you, it's probably saying the wrong thing.


Please leave your comments below; I would love to hear from you!


www.woodbridgerealestate.blogspot.com