Step By Step Guide To Buying Your First Home In Arlington

So, you’re thinking about buying your first home in Arlington. Awesome!!

Buying a home in Arlington is a big deal both literally and figuratively. It requires a serious amount of money and time. The journey can be exhausting and frustrating. But, don’t worry here is a step by step process that can help you get the keys to your new home in Arlington.

Waverly HIlls real esate agents
Waverly Hills is near Glebewood and Charrydale in Arlington VA

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What are the steps of buying a home?

It’s a waste of time and energy to look at homes that are outside of the budget, so prequalification is the first step for any home buyer. If you choose to work with Nesbitt Realty here are many of the steps that we’ll be taking on the road to home ownership.

Julie Nesbitt
Julie Nesbitt is an Accredited Buyer’s Agent and Top Producing agent.  Put her experience to work for you.
  1. Tour properties — We’ll take a top level tour of some of the properties that are in your budget. This gives the client something concrete and real to think about so that you can decide whether this home ownership thing is for you or not. It also gives us a chance to see which properties most interest you so that we can rely upon our experience to identify communities and properties you may have overlooked.
  2. Revisiting — We’ll revisit those communities that hold the greatest interest and look at everything available in those communities.
    • A few more choices — If none of these really feel right, we’ll find a few more to consider and continue with the search.
  3. Make an offer — When we’ve found the property that stirs the soul, fits the budget and feels right, your agent will prepare an offer. At that time we’ll collect earnest money.
    • The earnest money is evidence that the seller is serious about the purchase and is held in escrow until the sale is completed. We’ll submit a preapproval letter, a copy of the earnest money deposit and the signed offer for the seller to consider.
  4. Negotiations — Sometimes there is a difference between the asking price and the selling price. The selling price is determined by negotiation. We’ll pass drafts of the contract back and forth until the buyer and seller have agreed on all terms.
  5. Loan processing — Your loan officer will then collect additional documentation from the you and from your agent. This documentation will serve the purpose of proving the representations made in the loan application process. The buyer will produce pay stubs, bank statements etc. The loan office and agent will also order an appraisal as required by all lenders.
  6. Settlement — Settlement is the word used to describe the actual transfer of ownership. We’ll settle on the property in a timely fashion on an agreed upon date. Settlement will occur at a title company’s office and a settlement agent will ensure that funds are present as is marketable title.
  7. Ownership — Here’s where the fun begins … as does the responsibility of home ownership.

Real Estate for:

The law requires that Realtors

  • Perform essential and customary acts to help out with the purchase or sale of real estate.
  • Properly account for the money or other property put in his or her attention.
  • Reveal any “adverse material facts” which are, or should be the broker’s knowledge.

Realtors can help buyers pre-qualify for mortgages and keep abreast of the newest house listings. They can assist sellers in screening potential buyers and preparing their homes. They are able to demonstrate investors the properties that fit their risk profiles and long term investment strategies.

Nesbitt Realty can quickly find the best house for you personally. Our agents can efficiently organize and coordinate meetings with sellers and potential buyers.

A Nesbitt Realty Realtor is well acquainted with the affairs you’ll need to know about the neighborhood you might be considering:

  • the security of the community,
  • Cost,
  • Metro availability,
  • Nearby parks and sites,
  • Nearby shopping,
  • School quality.

Our agents have immediate access to homes when they are put in the marketplace. Your agent will help structure the deal to save you money, when you’re prepared to make an offer on a home. She or he will describe the benefits and drawbacks of different types of mortgages and guide you through the mounds of paperwork.

Why buy a home?

As found in a Realtor.com® survey of more than 1,000 home shoppers, many young adults are being pushed towards owning a home due to the increasing rentals costs, with 23 percent of those between the ages of 18 and 34 citing rising rents as a trigger for purchasing a home. Realter.com®’s chief economist Danielle Hale explains that even in the current unique housing market with low inventory and high prices, most shoppers still want some classic features. Older home-buyers desire privacy and the ability to age comfortable while millennials emphasize family needs, stability, and personal expression.

Nesbitts in suits
Will Nesbitt, Julie Nesbitt, and Stuart Nesbitt.

Nesbitt Realty is family-owned and family-operated. Our realty business serves Northern Virginia, and our services as well prices are quite competitive although we compete against some of the biggest names in the industry. Even though this is a rather competitive market, we are quite successful as we are the winners of a number of awards in categories for client satisfaction.

You are assured that you will have no worries when it comes to reveling in the joy of stress-free, passive income, and there is no work necessary on your part. There is always a solution for you when your business is in the hands of Nesbitt Realty.

We confidently offer you an experienced, professional, well-trained, and dedicated team who will confidently manage each detail ranging from leasing to maintenaOur team is experienced, professional and dedicated to managing every detail from leasing to maintenance to financial transactions.

Learn more about us now!

Our real estate agents are dedicated to excellence and are required to continue their education after licensing.

A happy dog enjoying play time
A happy dog enjoying play time

Renters who have a pet or more than one pet may face additional challenges when renting a condo or a house. One of the primary challenges the renters may face is finding a living situation which is acceptable to them and also willing to accept their pets. This can be difficult as many rental properties do not allow pets at all. Those who do allow animals on the property may place certain restrictions on they size and breed of animal which may reside on the property.

Your agent can help you identify and target properties that allow pets. Your rental agent can save a lot of time and can get you to your next home with the least amount of troubles.  [Read more about rental agents]

703 765 0300

 

How FHA is Helping Buyers Obtain Condo Financing

First-time buyers are hurting. It’s hard for them to save for a down payment, credit restrictions remain tight, and there are few affordable homes for them to choose from. What’s more, wage gains are modest, home prices keep going up, and now interest rates could be heading up, too. The Federal Reserve has sent signals that it could start raising short-term interest rates as early as this month and more rate hikes could happen throughout 2016.

VRE 35And yet there’s some good news, too, because FHA has announced changes to its rules to make it easier for buyers to get federally insured financing for condominiums. This is important because condos have traditionally been one of the best ways for new home owners to get into home ownership.

Under administrative changes FHA has announced, second homes are no longer considered “investment property” for purposes of determining the owner-occupancy ratio of a condominium project.

Prior to the change, if someone who owns a unit in a condo project uses the unit as a second home, that unit doesn’t count as part of the project’s 50-percent owner-occupancy threshold, which FHA requires. Under that rule, if fewer than half the units are owner occupied, someone who wants to buy a unit in the project can’t get FHA-backed financing. That hurts if FHA is the only viable financing option.

But the FHA change has wider implications than that because it sends a signal to conventional and other mortgage financing sources that it might be time for them to rethink their owner-occupancy ratios as well.

FHA announced two other changes: a streamlined recertification process, and an expansion of the types of insurance condo owner associations can have for their project to be eligible for FHA financing.

These three changes are key because they address one part of condo financing that has nothing to do with the creditworthiness of the borrower: they address the hoops the condo project has to go through before FHA will permit a borrower to apply for its mortgage insurance.

It’ll be helpful to watch how things change in the months ahead to see if the eased requirements lead to more households obtaining FHA financing for condo purchases. But for now, REALTORS® can take satisfaction in knowing FHA responded to concerns NAR had been raising for the last three years. And more changes are in the works, according to the agency. Details are in the video above.

The FHA announcement is one of the stories in The Voice for Real Estate for the week of November 23, 2015. Another segment looks at NAR’s new member benefit for keeping REALTORS® integral to real estate as transactions increasingly go digital. Under the benefit, REALTORS® get free access to two products from zipLogix®: its forms software program and its transaction management platform

5 Common First Time Home Buyer Mistakes

A Single family house at 5428 Grist Mill Woods Way Alexandria VA 22309
Grist Mill Woods is in Alexandria 22309

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving.Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.

5. Get your credit in order.Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

6. Determine your mortgage qualifications.How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

Condos at 2001 15th St N #615 Arlington VA 22201
Odyssey is in Arlington 22201

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of home ownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process.

For more information or to set up an appointment call Julie at (703)765-0300.

Mistake 1: Disregarding what you can afford.

Budgeting isn’t easy, but the fact is, if home buyers don’t set a budget for what they can afford for a house, things can go terribly wrong. The recent subprime mortgage crisis is a perfect example. Banks may say home-buying hopefuls can afford an amount they actually cannot afford.  Budgeting is one way to ensure you don’t get trapped by knowing what you can and cannot afford to remain financially comfortable.

Create a budget that includes your major expenses. Examples of major expenses could be student loan payments, transportation costs (gas, car payments, etc.), credit card bills, cable bills and telephone bills. Also be sure to include expenses that come only once a year, like holiday bills or taxes. Add all this together and subtract it from what your earnings — the result is what you can afford on a house.Home buyers who skip this step could end up either badly wanting something they can’t afford and/or putting themselves at risk financially.

Mistake 2: Skipping Mortgage Qualifications.