Nesbitt Realty helps first-time home-buyers realize their home-buying dreams.
Buying a first home can be a daunting experience. Here are five common and costly mistakes that novice home buyers make:
1. Ignore the costs of having a low credit score. Lower-score borrowers pay thousands of dollars in increased interest rates over the life of the loan.
2. Make purchases on credit before settlement. Lenders continue to check credit scores right up until the time of closing. Too much shopping could cause the lender to take back the loan.
3. Scrimp on an inspection. Being surprised by the need for expensive repairs can be financially devastating.
4. Buy without contingencies. Buyers should give themselves an out if the inspection turns up problems or the bank raises the interest rates.
5. No money for insurance. Insurance can be surprisingly pricey. Buyers who don’t budget for it can face a nasty surprise.
Budget
Establishing your budget before beginning the home search in {Location_Name} is an important consideration. Some experts suggest that you can expect to pay 25% of your salary towards your mortgage. Fortunately for people living in Northern Virginia, many job centers offering high paying salaries are available. These places include the Mark Center, Inova Hospitals, USPTO, NOVA Community College, Fort Belvoir and Reston Town Center.
Size
When considering buying a home in {Location_Name}, you must answer several important questions, such as whether or not you would like roommates, or whether or not you are married or plan to start a family. The answers to these questions will help you determine whether you might prefer a 2 bedroom condo in Courthouse or a 1,000,000 home in Mount Vernon.
Location and Atmosphere
{Location_Name}has neighborhoods to suit everyone's needs. Arlington is a bustling city with all of the big-city amenities, such as businesses and shopping, and is only a short distance from DC. If you would prefer a small-town atmosphere, Woodbridge can offer this at only a short commuter from the bigger cities. Alexandria, a nice middle ground between Arlington and Woodbridge, has plenty of nightlife, restaurants, and shopping in a variety of neighborhoods like Old Town, West End, and Fairfax County.
Type
Condo? Townhome? Single family home? Each has their own advantages and disadvantages. Condos can offer some amenities, like a pool, fitness center, or dry cleaner, all conveniently located in the condo community, but they come at the cost of condominium fees. Single-family homes do not have these extra costs, unless they are located within a neighborhood that has a home owner's association, but they also do not have the conveniences that a condo or townhome has to offer.
Commitment
Since a mortgage is such a long term commitment, factoring in job security when preparing to purchase a home in {Location_Name} is vital. For those who end up having to leave the area, whether it is temporary or permanent, hiring a property manager is an option so that you can rent out your home and collect rent on it while you’re gone.
Credit Score
The first step to buying a home in {Location_Name} is to get pre approved if you want to be considered a serious buyer. This can speed up the home buying process. Some ways to improve your credit score are to always pay your bills on time or, if you do not have credit, you can build your credit by opening a credit card, use it monthly, and pay the bill on time.
For more information or to set up an appointment call Julie at (703)765-0300.
The foreclosure mess is making it harder for banks to sell properties. ForeclosureRadar, which tracks foreclosures in five Western states, says the number of properties coming to auction in Arizona, California, and Nevada has declined by more than 30 percent.
Investors are backing away from sales because they fear that the properties they buy will be tied up in an investigation, says Sean O’Toole, CEO of Foreclosure Radar.
O’Toole believes the problem is short-lived and ultimately will be settled in favor of the banks. "The fear that has been created in based more in hype than in law," he says.
Source: CNNMoney.com, Les Christie (11/29/2010)
Julie Nesbitt
Julie Nesbitt knows the back trails and by-ways of Northern Virginia real estate.
Established in 1974 with a mission to reduce homelessness, increase community support and promote self sufficiency, the Good Shepherd Housing and Family Services is operated by a multi-denominational board of directors and staff managing over 70 housing units. Good Shepherd Housing and Family Services is located in the Mount Zephyr Business Center at 8305 Richmond…
Will Nesbitt -- principal broker of Condo Alexandria / Nesbitt Realty
I'm often asked for recommendations for financing. First-time home buyers often don't know where to begin, but even veteran purchasers like to know who I suggest. This is also important for relocation buyers. Condo Alexandria\ Nesbitt Realty never makes any money off of loans and our only goal is to see that your transaction happens smoothly and at the lowest cost. My recommendations are based on direct experience, so this list only includes folks I know personally.
One distinction for first-time buyers: a mortgage broker is a company that arranges for loans with lenders. Mortgage brokers don't technically make the loans, rather they get a cut from the bank for finding borrowers. Mortgage bankers actually loan the money. Mortgage bankers usually have good prices. Mortgage brokers with low overhead can sometimes beat the banker's price. On the other hand, mortgage brokers without a conscience can hammer the consumer. In other words, mortgage brokers often have more discretion on their price.
Condominium Mortgage
Condominium Mortgage is a mortgage broker in Alexandria VA. Although we used to send the bulk of our loans to Condominium Mortgage and American Affordable Mortgage, many of the lenders that provided loans to to these Condominium Mortgage have gone out of business. This company now focuses on buyers with top-flight credit and bankable incomes, providing discount loans for high-end buyers.
Alexandria Financial
Dillon Lee runs a nearly one man brokerage in Alexandria VA. Dillon has years of experience and can help all types of buyers. He specializes in keeping his overhead low to pass savings on to consumers. You won't always get Dillon the first ring, but once he answers he is a great loan officer. Call him at 703 360 8868.
Don Bucci
Don Bucci is a friend of mine dating back more than 25 years ago to my time in the Army. Don works for a mortgage banker with an office in Richmond VA where he resides. Don can sometimes beat Northern VA prices because of lower overhead working in Richmond. On the other hand, Don can't meet with you personally if you're buying a home in Northern VA. His number is 804 400 0864.
Kelly Garant
Kelly works for Wells Fargo. I think the "big boy" banks like Wells Fargo and Bank of America often have great prices, but it's tough to get an experienced and accountable loan officer for these big banks. (Tip: NEVER call the 800 number for a mortgage.) You can get Kelly at 703 442 5338. She works for the big bank but you'll get the service you expect from a small lender.
James Thompson
James is fairly new to my acquaintance but he's impressed me with his attention to detail, pricing and work ethic. James works for AmericaHomeKey, Inc. You can call him at 240 499 1140.
Gregory Williams --- Home Mortgage Consultant, Wells Fargo Home Mortgage 7620 Little River Turnpike, Suite 300, Annandale, VA 22003, (703) 333-5560
Kenneth A. Cyr, CMPS Mortgage Banker, Mortgage Planning Specialist, Asst. Manager Primary Residential Mortgage, Inc. 8001 Braddock Road, Suite 101, Springfield VA 22151. Call him at 703.426.6968
A few more tips ...
Credit Unions promise great rates but there is often a funding fee or other fee that basically makes the price the same as a mortgage broker or mortgage banker. The trouble is the service at credit unions is often poor.
Above all, we're I've seen the biggest problems is with out-of-the-area fly-by-night Internet lenders who hang customers out to dry after promising a great rate.
Recently, I've also seen a pattern of delayed closings with Bank of America. Bank of America has had an influx of business since the onset of the financial crisis and they don't appear equipped to handle the volume of loans they are trying to do.
Will Nesbitt is the principal broker of Condo Alexandria / Nesbitt Realty.
Establishing your budget before beginning the home search in {Location_Name} is an important consideration. Some experts suggest that you can expect to pay 25% of your salary towards your mortgage. Fortunately for people living in Northern Virginia, many job centers offering high paying salaries are available. These places include the Mark Center, Inova Hospitals, USPTO, NOVA Community College, Fort Belvoir and Reston Town Center.
