Lender Checklist: What You Need for a Mortgage

  • W-2 forms --- or business tax return forms if you're self-employed --- for the last two or three years for every person signing the loan. Check
  • Copies of at least one pay stub for each person signing the loan.
  • Account numbers of all your credit cards and the amounts for any outstanding balances.
  • Copies of two to four months of bank or credit union statements for both checking and savings accounts.
  • Lender, loan number, and amount owed on other installment loans, such as student loans and car loans.
  • Addresses where you've lived for the last five to seven years, with names of landlords if appropriate.
  • Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, such as a boat, RV, or stocks or bonds not held in a brokerage account.
  • Copies of your most recent 401(k) or other retirement account statement.
  • Documentation to verify additional income, such as child support or a pension.
  • Copies of personal tax forms for the last two to three years.
For more information or to set up an appointment call Stuart at (703)765-0300.

What every purchaser should know about title insurance

Here are some of the basics about title insurance: 1. Every mortgage lender requires title insurance. Title insurance protects the lender and the secondary markets to which they sell the loans from defects in the title to your home and property. It ensures the validity and enforceability of the mortgage document. Title defects could include mistakes made in the local property office, forged documents and claims from unknown parties. The amount of the policy is equal to the amount of your mortgage at its inception. You pay a one-time fee as part of your closing costs. If you are purchasing a home, you should also purchase an owner’s policy which provides coverage up to the purchase price of the home you are buying. In some states it is customary for the seller to purchase the owner’s policy on your behalf. 2. You have the right to choose your title insurance provider! You can shop around for a lower insurance premium rate on line at sites, or you can also ask your lender or real estate professional for help in getting quotes. 3. Check the companies out before you select one. Make sure the title insurance company you choose has a favorable Financial Stability Rating® with Demotech, Inc., the leading title insurance rating company. 4. It’s easy to save money on title insurance. Request quotes from a few companies and then reach out and speak to them. Ask about hidden fees and charges which could make one quote seem more attractive than another. Ask about discounts. There are often discounts available if you are refinancing and sometimes even when you are purchasing if the current policy issued to the seller on the property isn’t too old. 5. Even new construction needs coverage. Even though the home is new, the land isn’t. There may be claims to the land or liens placed during the construction which could negatively impact your home. For more information or to set up an appointment call Julie at (703)765-0300.

Home buying starter kit!

Where to start the home buying process?

For a first-time home buyer, one of the most difficult things to do is to just start the process? What does one actually do to buy a home? We've prepared this short list of links to help you begin your home buying quest.
Stuart Nesbitt
Stuart Nesbitt is a real estate agent serving Northern Virginia.
  • Affordability Calculator -- How much home can you afford? The affordability will help you determine what your price range.
  • Buyers Tips -- Simple and effective tips for shopping homes.
  • Closing Cost Estimator -- What are closing costs? How much do you have to pay?
  • Guide to Northern Virginia -- All about the neighborhoods and communities of Northern VA
  • Map Search -- Our map-based search is one of the best in the business.
  • Mortgage Calculator -- Once you've identified a property plug the price into the calculator to see how much the purchase will cost on a monthly basis.
Call us anytime with questions or to learn more.  

Properties in Focus

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.

8 Tips to Guide Your Home Search

1. Get your finances in order.

cashReview your credit report and be sure you have enough money to cover your down payment and closing costs. Then, talk to a lender and get prequalified for a mortgage. This will save you the heartache later of falling in love with a house you can't afford. maps

2. Research before you look.

Decide what features you most want to have in a home, what neighborhoods you prefer, and how much you'd be willing to spend each month for housing. Is walkability important to you? How about proximity to the Metro? Perhaps you want your new home to be in find homes by school district? Whether you want a condo in Arlington or a single family home in Kingstowne, a townhouse in Cameron Station or a studio in Crystal City, Nesbitt Realty probably has a search tailored to your needs. If you have trouble finding the search that you need call us and we'll be glad to help you out.

3. Be realistic.

A Single family house at 106 Quaker Ln Alexandria VA 22304
Seminary Hill is in Alexandria 22304
Once you've zeroed in on a list of homes that fit your budget and criteria, then it's time to start viewing property. It's OK to be picky, but don't be unrealistic with your expectations. There's no such thing as a perfect home. Use your list of priorities as a guide to evaluate each property. We still have a buyers' market, but that doesn't mean people are giving real estate away. Although homes have dropped in price 10% to 20% from the high-water mark a few years back, prices in Northern Virginia have tightened up and I'm not seeing further erosion in prices.

4. Don't ask too many people for opinions.

It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion, but be ready to make the final decision on your own. Your home is a personal choice. In the end you're the one who will pay the mortgage and you're the one who will live there, so make sure you're pleasing yourself, not your advisers.

5. Decide your moving timeline.

When is your lease up? Are you allowed to sublet? How tight is the rental market in your area? All of these factors will help you determine when you should move.

6. Think long term.

Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in this home for a longer period? This decision may dictate what type of home you'll buy as well as the type of mortgage terms that will best suit you.
home inspector
Bob Murphy is a home inspector

7. Consider a home inspection.

A home inspection is an option for every home buyer. A home inspector is a professional whose job it is to check the home out for defects. Whether you purchase a condo, townhouse or single family residence, a home inspection is an important option to consider.

8. Get help from a REALTOR®.

Hire a real estate professional who specializes in buyer representation. Unlike a listing agent, whose first duty is to the seller, a buyer's representative is working only for you. Here's the best part about employing a Realtor to represent you: buyer's reps are usually paid out of the seller's commission payment, so there is no expense to you the buyer. For more information or to set up an appointment call Julie at (703)765-0300.

Take the Stress Out of Homebuying

Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.
Julie Nesbitt
Julie Nesbitt
1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality. 2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer — you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make that much difference in price, and a good home won’t stay on the market long. 3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family — the people who will be living in the home. 4. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.
decks
Decks
5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take. 6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself — room size, kitchen, etc. — that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life. 7. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers. 8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate. 9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased. 10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home’s most important role is to serve as a comfortable, safe place to live.
  • Julie Nesbitt

    Julie Nesbitt
    Julie Nesbitt knows the back trails and by-ways of Northern Virginia real estate.

    Read More

  • Enjoying Winkler Botanical Preserve

    We had a great time walking the trails. 

    Read More

  • Don’t take chances with real estate.

  • REDUCED: 7202 Churchill Rd, McLean

    Open House, Sunday, 1-4 BIG PRICE DROP! 7202 CHURCHILL ROADMcLean, VA 221016 Bedrooms5.5 Bathrooms6,752 SF $1,695,000

    Read More

  • Good Shepherd Housing and Family Services

    Fairfax County
    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…

    Read More

Mistake 2: Skipping mortgage qualification.

Before you place an offer on a house, obtain a pre-approved loan. This way, you won’t agree to something before knowing you will be able to pay for it. Also, understand that even after you’ve been pre-approved, the loan can still fall through if you do something to dramatically alter your credit score, like buying a car.

Therefore, when buying a house, it’s important to not only receive a pre-approved loan, but to also hold off on other large expenses for a while. If you really can’t wait to get that new car, perhaps you should hold the home purchasing process until later. After all, only you can determine what’s most important for yourself and your family.

NEXT Mistake 3: Failing to consider additional expenses.

Would Lower Market Rates Pump Up Sales?

Will mortgage rates ever drop to 0 percent? Zero percent financing has long been a loss leader in the automotive industry, but Keith Gumbinger, vice president of HSH Associates, a provider of mortgage information, says that scenario is unlikely. You’d have to find an investor who would buy a security with a zero return – a hard sell even today. Jim Sahnger, mortgage associate Palm Beach Financial Network, concurs that the funding would be hard to find “unless there were significant fees on the front end to compensate for costs to originate, deliver, default, etc.” If 0 percent financing could be funded, Sahnger believes potential borrowers would be lined up, kicking up demand for houses. Gumbinger isn’t so sure because buying a home is a bet on the economy and that kind of confidence is hard to find, he says. “People are concerned that tomorrow is not going to be better than today.” Source: MarketWatch.com, Amy Hoak (09/27/2010)
  • Julie Nesbitt

    Julie Nesbitt
    Julie Nesbitt knows the back trails and by-ways of Northern Virginia real estate.

    Read More

  • Enjoying Winkler Botanical Preserve

    We had a great time walking the trails. 

    Read More

  • Don’t take chances with real estate.

  • REDUCED: 7202 Churchill Rd, McLean

    Open House, Sunday, 1-4 BIG PRICE DROP! 7202 CHURCHILL ROADMcLean, VA 221016 Bedrooms5.5 Bathrooms6,752 SF $1,695,000

    Read More

  • Good Shepherd Housing and Family Services

    Fairfax County
    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…

    Read More

Recommended Lenders

head shot
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.

A few suggestions from Patsy Woods

Patsy has had dealings with the lenders above, but has also had good experience with these lenders.
Patsy Woods
your realtor
  • Lila Manley --- Senior Mortgage Banker Pinnacle Mortgage Group 877-716-9006 Ext 872
  • 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.

Most Home Buyers Have No Regrets

A study from Bankrate found that 90 percent of owners do not regret buying their home. The findings also revealed improved mortgage awareness, with only 8 percent of home owners in the dark about what type of loan they have -- down from 26 percent two years ago. The poll of 1,001 randomly selected home owners in August showed that 79 percent had fixed-rate financing, and this type of mortgage was used by almost 90 percent of respondents who make more than $75,000. Source: Realty Times, Broderick Perkins (09/02/10)