Fairfax County VA Home Search Website Blog

Fannie Mae and Freddie Mac have been in the news quite a bit over the last year, so I thought it was a good time to do a refresher on who they are and what role they play in the Fairfax County Virginia real estate industry.

Who are Fannie Mae and Freddie Mac?

Fannie Mae is the Federal National Mortgage Association. Freddie Mac is the Federal Home Loan Mortgage Corporation. They were originally created to raise homeownership levels and increase the availability of affordable housing.

Fannie and Freddie don’t sell mortgages directly to homeowners. They buy mortgages from lenders, so the lenders can use the money to issue new home mortgages.

In 2008, due to mismanagement resulting in billions of dollar of losses, Fannie and Freddie were taken over by the government.

How do Fannie and Freddie impact Fairfax County Virginia real estate?

• They contributed to the financial crisis and real estate downturn, by loosening underwriting standards, buying and guaranteeing riskier loans and increasing purchases of mortgage-backed securities.
• They are key players in the government’s Making Home Affordable foreclosure-prevention program. If your mortgage is owned by Fannie Mae or Freddie Mac, you may be able to refinance your loan and take advantage of lower interest rates.
• They influence mortgage interest rates and the availability of home loans. Freddie, Fannie and the Federal Housing Administration together now guarantee about 90 percent of all new mortgages, far above their historic level.

What’s going to happen to Fannie and Freddie?

Fannie and Freddie’s future is uncertain. The House Republicans and the Obama administration agree that Fannie and Freddie should be done away with. But this will not happen soon, if at all. Congress must agree on a plan, which could take years, and then the market’s dependence on the companies and the financial backing they provide must be reduced.

If you have questions about Fairfax County Virginia real estate or how national or international events impact Fairfax County Virginia real estate, please give me a call at 703-909-3939 or email me at Steve@HomeSearchWebsite.com. I’m happy to help.

Steve Hawkins
Long and Foster REALTORS®
Springfield, Virginia
www.HomeSearchWebsite.com
Steve@HomeSearchWebsite.com
703-909-3939

Appraisals are final when it comes to securing money from a bank, so don’t let a poor one ruin your Fairfax County Virginia real estate plans. Be proactive to ensure your appraiser is competent and has all the information he or she needs, because your purchase, sale or refinancing goals could be wrecked with a low-ball appraisal.

Minimize the risk of receiving an inaccurate appraisal by …

• Meeting the appraiser at the house. Show them around your Fairfax County Virginia real estate, just like you’d show a potential buyer. That way you can highlight some of your home’s unique features that they might otherwise overlook. Also, if they have any questions about when things were updated or replaced, you’ll be there to share all relevant information — instead of them just taking a guess.
• Establishing that he or she is geographically competent. Appraisers that don’t know the area can misquote, so be sure to ask them questions, such as how far their office is from the property and if they have access to local MLS data. If you feel the appraiser doesn’t meet geographic competency standards, then you can raise the issue with your lender.
• Providing him or her with comparables. You probably know the neighborhood better than the appraiser, so supply information on recently sold homes that you think are similar to yours. He or she might not use them, but it can’t hurt.
• Record any mistakes. Always ask for a copy of the appraisal to review, because appraisers make slip-ups all the time. Especially if the value is low, be sure to look over the details of the appraisal and call out any discrepancies. If this is the case, you won’t be able to change the designated value, but you can file a complaint against the appraiser. If the mistakes are big, ensure you get a second appraisal.

Don’t let an inaccurate home appraisal ruin your future financial goals. Take Fairfax County Virginia real estate appraisals seriously, be proactive, do your homework and definitely review the final version.

If you’re getting ready to sell your home or purchase a new one and have questions about appraisals, please call me at 703-909-3939 or email me at Steve@HomeSearchWebsite.com for more information.

Steve Hawkins
Long and Foster REALTORS®
Springfield, Virginia
www.HomeSearchWebsite.com
Steve@HomeSearchWebsite.com
703-909-3939

If you’re thinking about taking the plunge into homeownership, before you even start looking, talk to a qualified mortgage professional to get preapproved for a home loan. Armed with that information, you can make better decisions on the type of Fairfax County Virginia real estate you can afford to buy.

Follow these steps to get preapproved for a mortgage:

1. Get referrals. Ask family, friends, neighbors and your Fairfax County Virginia real estate agent for referrals to a lender with whom they have had a good experience. Talk to several lenders to compare service, rates and other options.
2. Review your credit report. If anything unexpected appears on your report, do what you can to resolve the issues before you apply for preapproval.  Lenders will review your credit report before preapproving you for a home loan.
3. Provide financial information to the lender. This usually includes documentation of your income, recent statements for all your checking and savings accounts, assets and debt (for instance, credit card debt and car payments).

Even though the preapproval process is rigorous, obtaining a preapproval still does not guarantee that the lender will ultimately fund your loan. Lenders still need to look at property appraisals, verify your information and potentially check your credit again before agreeing to give you a mortgage.

Preapproval helps you narrow the focus of your Fairfax County Virginia real estate property search to properties that are within your financial reach. It also helps you check out lenders to find one that is the best match for your situation.

When you find the Fairfax County Virginia real estate of your dreams, you’ll be ready to move to the next step!

If you’re looking for more information on the home buying process, I can help. Give me a call today at 703-909-3939 or email me at Steve@HomeSearchWebsite.com.

Steve Hawkins
Long and Foster REALTORS®
Springfield, Virginia
www.HomeSearchWebsite.com
Steve@HomeSearchWebsite.com
703-909-3939

If you need (or want) to sell your Fairfax County Virginia real estate this winter, you’ll have to step up your game a bit. People tend to be less likely to buy in the winter because the weather keeps them indoors rather than house hunting. And, let’s face it, most homes just don’t look as good in the brown, drab winter as they do in the spicy spring and summer.

If you’re one of the lucky owners who has a home for sale in an area that stays beautiful all year long, you can still find a few tips here to help get your home ready to sell.

Six tips to help you sell your home this winter:

1. Keep it cozy. You want your home to be warm so people can comfortably take their time viewing your Fairfax County Virginia real estate. Saving money on heating costs isn’t worth it if it means freezing out your potential buyers.
2. Turn up the light. Keep curtains and blinds open during the day. Turn on your lights, both inside and out, at night. Put your lights on timers if you won’t be home until after dark. Use motion detectors to light up in the evening when a potential buyer approaches your doorstep.
3. Point out cold-weather benefits. Have mass transit within walking distance? That’s a big benefit in bad weather because you don’t have to de-ice or dig your car out of the snow in order to get to work.
4. Take advantage of good winter locations. If your home is in a location that people flock to in the winter, such as an area with great outdoor winter sports such as skiing or a warm-weather area like Florida, now is the time prime time to promote your house! Put all you’ve got into marketing the benefits of living where it’s always sunny or where winter living is fun.
5. Set the mood. Play soft, classical music. Toss afghans or throws across the back of your sofa. Hang plush robes in your bedroom or bathroom.
6. Clear away snow and ice. Shovel a path through the snow so potential buyers don’t have to get out their snowshoes. De-ice your driveway, sidewalk, steps and porch to prevent slips and falls.

If you’re ready to sell your Fairfax County Virginia real estate this winter, I can help. Give me a call today at 703-909-3939 or email me at Steve@HomeSearchWebsite.com for more information.

Steve Hawkins
Long and Foster REALTORS®
Springfield, Virginia
www.HomeSearchWebsite.com
Steve@HomeSearchWebsite.com
703-909-3939

If you’re looking to purchase Fairfax County Virginia real estate, you’ll probably come across many terms you don’t know — including concurrent ownership. This essentially means that more than just one individual can own property. You might be extremely interested in the details of concurrent ownership if you’re purchasing a property with another person, are married or have children.

It’s always good to educate yourself, so that you can assess all the options and maybe show off to your Fairfax County Virginia real estate agent and loved ones if you happen to come across this term during your house hunt. Below is the basic breakdown of the four main types of concurrent ownership.

1. Joint Tenancy with the Right of Survivorship – This means that owners retain equal share of the property. In the event that one of the owners dies, their share of the property is distributed equally among the remaining owners. Be sure to use specific language in your deed or will, otherwise the property might be considered tenancy in common.
2. Tenancy in Common – One or more people own the property, but the shares might not be equal. Also, if one owner were to die, the property would be passed by will or inheritance, and not necessarily to the other owners.
3. Tenancy by Entirety – This type of concurrent ownership is usually between a husband and wife. It states that the entirety of the property passes to the spouse upon one of their deaths. A divorce in most cases will change the tenancy of entirety to tenancy in common.
4. Community Property – Not all states recognize this type of joint ownership. However, if your state does, then all property acquired during a marriage is communal, while anything owned before the union or that has been inherited or gifted would remain separate property in the case of divorce.

By knowing the definition of concurrent ownership, you’ll be able to ensure that any communally owned property will be distributed the way you see fit in the case of an unexpected death.

Whether you’re thinking about purchasing Fairfax County Virginia real estate by yourself or with multiple people, I’d love to help. Please call me today at 703-909-3939 or email me at Steve@HomeSearchWebsite.com for more information.

Steve Hawkins
Long and Foster REALTORS®
Springfield, Virginia
www.HomeSearchWebsite.com
Steve@HomeSearchWebsite.com
703-909-3939

Of the many joys of property management, good tenants top the list.  The top of the headaches list? Bad tenants. Problems from failing to pay the rent in a timely manner to inadequate cleanliness to inconsiderate community habits plague the rental world of Fairfax County Virginia real estate.

You can find the best tenant for your vacancy by following these few steps.

1. Advertise
Having plenty of applicants to select from means that you can find a good match for the vacancy. So advertise to collect a crowd of prospective tenants.  It’s worth the extra time of showing the property to more people to find a reliable tenant.

• Spread the word among your friends and family that you have a space available. Through personal connections, you are most likely to find a good match for your space.
• Put a sign up outside the unit. People living near the neighborhood, or visiting family or friends in the area, are most likely to want to rent there.
• Put listings for your Fairfax County Virginia real estate in your local newspaper and online sources (such as craigslist).

2. Review Rental Applications with Care
While there are no guarantees, a few practices can help you screen applicants for your Fairfax County Virginia real estate vacancy.

• Check Rental History: If your prospective renter has moved every three months, it’s worth asking why.  When you call to verify rental history, check with former landlords to find out if there were any issues.
• Check Credit Reports: Your prospective tenant might proclaim that he is independently wealthy, but even if he is, that doesn’t mean he pays his bills on time. That said, remember that credit reporting agencies aren’t always accurate, so do allow for issues to be explained.
• Verify Income: Your tenant should have a steady means of meeting his rental obligation. Request copies of recent pay stubs or other income to ensure that the tenant can reasonably afford the rent you are charging.
• Check Job References:  Ideally, you want a tenant who has a stable history in his profession.

Of course, as a landlord you already know that the Fair Housing Act prohibits discrimination based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability).

If you are investigating new rental property purchases or looking to sell some of your current assets, I can help. Give me a call today at 703-909-3939 or email me at Steve@HomeSearchWebsite.com.

Steve Hawkins
Long and Foster REALTORS®
Springfield, Virginia
www.HomeSearchWebsite.com
Steve@HomeSearchWebsite.com
703-909-3939

Urban legends can be found within every industry, and Fairfax County Virginia real estate is no exception. Getting a big discount because a home needs minor repairs or being able to acquire 100 percent financing in a snap definitely isn’t as easy as it sounds and is probably just what you think — a big fat myth.

Whether you’re an experienced buyer or it’s your first time purchasing Fairfax County Virginia real estate, do your research and don’t get sidetracked by enticing fables that might cause you to miss out on your dream home. Below are three debunked mortgage urban legends that have been plaguing the industry for years.

1. You can get a foreclosed home for almost nothing. While foreclosed homes do tend to sell consistently lower than other homes on the market, they’re not always a great deal. Banks are required to sell a property as close to fair market value as possible, and only drop the price in small increments after 60 to 90 days. Foreclosed homes are also usually in worse repair and banks are less likely to negotiate on them.
2. As a first-time homebuyer, it’s easy to get 100 percent financing. While some homebuyers might be nostalgic for the subprime mortgage era when anyone could obtain full financing — that just isn’t the case any longer. While there is assistance out there, most first-time buyer programs require that you put down a certain amount.
3. A fixer-upper means a lowball offer. Gone are the days when just because a home needed a little cosmetic help you could make an incredibly low offer. Don’t do it because you’ll get rejected, and the buyer won’t take you seriously.

The market may be down, but that doesn’t mean you’re going to walk away with a steal. Save your money, keep your credit score in check and don’t fall prey to any of these common Fairfax County Virginia real estate urban legends.

If you’re in the market for a new home or you’d like to hear about more urban legends that buyers typically fall for, please call me at 703-909-3939 or email me at Steve@HomeSearchWebsite.com for more information.

Steve Hawkins
Long and Foster REALTORS®
Springfield, Virginia
www.HomeSearchWebsite.com
Steve@HomeSearchWebsite.com
703-909-3939

The data from the 2011 National Association of REALTORS® Profile of Home Buyers and Sellers is now available. Here are the significant changes you need to know that will help you market your Fairfax County Virginia real estate and get it sold:

1. Most buyers are married: 64 percent of all buyers are married couples (up five percent from 2010), 18 percent are single women, 10 percent single men and 7 percent unmarried couples.
2. Your property is competing against 12 other homes: Buyers searched a median of 12 weeks and visited 12 homes, both unchanged from 2010.
3. Multiple bedrooms and bathrooms are preferred: The typical home had 3 bedrooms and 2 bathrooms.
4. Most buyers want single-family homes: 77 percent of respondents purchased a detached single-family home, 9 percent a condo and 8 percent a townhouse or rowhouse.
5. You need to promote your home to buyer’s agents: 60 percent of buyers working with real estate professionals were represented by a buyer’s agent.
6. Hire a Fairfax County Virginia real estate agent to sell your home: 87 percent of home buyers use real estate agents to find their home. 91 percent of buyers who used the Internet to search for a home purchased through a real estate agent.
7. Market your home online, with yard signs and at open houses: When buyers were asked where they first learned about the home they purchased, 40 percent said the Internet; 11 percent said a yard sign or open house.

Want to work with a Fairfax County Virginia real estate agent who knows how to market your home to get it sold? Let me show you my proven marketing plan. Schedule an appointment with me today by calling me at 703-909-3939 or emailing me at Steve@HomeSearchWebsite.com.

Steve Hawkins
Long and Foster REALTORS®
Springfield, Virginia
www.HomeSearchWebsite.com
Steve@HomeSearchWebsite.com
703-909-3939

Should you be marketing to first-time home buyers in order to sell your Fairfax County Virginia  real estate? The 2011 National Association of REALTORS® Profile of Home Buyers and Sellers has a wealth of information on first-time home buyers and will help you figure out if you should market to this large and important group of buyers.

Here are the stats (courtesy of AgBeat.com) you need to know about first-time home buyers before selling your Fairfax County Virginia real estate:

• Long-term survey averages show that 4 out of 10 buyers are typically first-time buyers. This segment is critical to a housing recovery because they help existing home owners sell and make a trade.
• The median age of first-time buyers was 31 and the median income was $62,400, up from $59,900 in the 2010 study.
• The typical first-time buyer purchased a 1,570 square foot home costing $155,000.
• First-time buyers who financed their purchase used a variety of resources for the down payment: 79 percent tapped into savings; 26 percent received a gift from a friend or relative, typically from their parents; and 7 percent received a loan from a relative or friend. Nine percent sold stocks or bonds and 8 percent tapped into a 401(k) fund.

Ninety-four percent of entry-level buyers chose a fixed-rate mortgage. Fifty-four percent of first-time buyers financed with a low-down payment FHA mortgage, and 6 percent used the VA loan program which requires no down payment.

What this Information Means to You

If you’re selling an existing, entry-level home, you’ll most likely be selling to a first-time home buyer with a median age of 31 and a median income of $62,400. First-time home buyers are most likely to get a fixed-rate, FHA mortgage. Gear your marketing toward that buyer to have more success.

If you’re ready to sell your Fairfax County Virginia real estate, whether it appeals to first-time buyers or other types of buyers, I’ll market it to get it sold as quickly and for as much as possible. Give me a call today at 703-909-3939 or email me at Steve@HomeSearchWebsite.com for more information.

Steve Hawkins
Long and Foster REALTORS®
Springfield, Virginia
www.HomeSearchWebsite.com
Steve@HomeSearchWebsite.com
703-909-3939

One way lenders increase their profits on your Fairfax County Virginia real estate mortgage is by charging settlement fees. While many fees are standard and required, others may be negotiated.

Shop Around For Better Closing Fees

The Good Faith Estimate (GFE), as required by RESPA, is presented to you after you apply for a loan to purchase your Fairfax County Virginia real estate. It gives you a heads up as to what fees you should expect at closing.

If you don’t like the numbers you’re seeing on the GFE, shop around with other lenders. If you were approved for one loan, you can likely be approved for another.  Collect comparable GFEs and see how the interest rate, monthly payments, points, and closing fees stack up. Your best bet is to tell your lenders that you’re comparison shopping, so they give you the best numbers possible.

Common closing fees you can expect to see on your Good Faith Estimate include:

• Appraisal Fee – Fee for an independent appraisal of the value of the property. This fee often ranges from $350 to $500. Note that payment for this fee is sometimes required prior to closing.
• Credit Report Fee – This is the cost of acquiring a credit report.
• Title Insurance Fee – This is the fee paid to a title company for research and insurance related to the title of the property.
• Processing Fee – The processing fee covers the cost of the person who handles collecting the paperwork, such as credit reports and employment history, for underwriting. Sometimes, the processor is the loan officer. 
• Loan Origination Fee – Also called underwriting fee, administrative fee or processing fee, the loan origination fee is charged by the lender for evaluating and preparing your mortgage loan. This fee can cover the lender’s attorney’s fees, document preparation costs, notary fees, and similar charges.
• Application Fee – This fee covers the processing of an application for mortgage insurance.

All loans have fees; there’s no escaping them.  If there aren’t any fees, the cost of making the loan has been wrapped up in other areas such as the interest rate or points.  So as you comparison shop, remember to look to the long-term cost of the loan, not just settlement fees. 

That said, with some comparison shopping and negotiation, you may be able to decrease your fee amounts without the price being woven elsewhere into the loan for your Fairfax County Virginia real estate.

Whether you’re ready to buy or need more information before taking the plunge, I can help. Give me a call today at 703-909-3939 or email me at Steve@HomeSearchWebsite.com.

Steve Hawkins
Long and Foster REALTORS®
Springfield, Virginia
www.HomeSearchWebsite.com   
Steve@HomeSearchWebsite.com   
703-909-3939