Fairfax County VA Home Search Website Blog

To get the best deal on a mortgage for Alexandria VA homes for sale, you want the highest possible credit score.  If you don’t know your credit score, you may want to request a credit report or talk with a financial advisor or mortgage lender.

If your credit score needs improvement before you buy Alexandria VA real estate, here are some tips to help:

• Payment History. This is the greatest factor in determining your credit score. The longer you have a history of making your payments on time and not missing payments, the higher your credit score. Paying your bills shows that you are responsible with your debt.
• Amount Owed. One-third of your credit score is based on the amount of debt you owe in relation to the amount of credit available to you. Paying down the amount you owe on your credit cards lowers your credit risk and raises your score.
• Length of Credit History. The longer you’ve had your credit accounts open, the better your score. A lengthy history of credit shows whether or not you’ve been able to manage your credit.
• New Credit. Although this accounts for just 10 percent of your credit score, opening several new accounts within a short time can lower your credit score. If you’ve had credit problems in the past, new credit accounts can help raise your score.
• Credit in Use. Banks do look at the mix of credit in your report. Generally, a mixture of accounts like installment (car payments), revolving (credit cards), and mortgages looks better than having only one type of credit.

If you’re thinking of buying one of the Alexandria VA homes for sale, I would love to assist you. Give me a call and I’ll help you find a qualified lender who will help you get pre-approved for your mortgage loan.  Call me at 703-909-3939 or email Steve@HomeSearchWebsite.com now.  
 
Steve Hawkins
Long and Foster REALTORS®
Springfield, Virginia
www.HomeSearchWebsite.com
Steve@HomeSearchWebsite.com
703-909-3939

Finding the right mortgage to buy Fairfax County VA homes for sale can be confusing and stressful.  When preparing for what is most likely the biggest financial transaction of your life, you want to make sure you do it right.

One type of mortgage you may be considering is an Adjustable Rate Mortgage (ARM).  With an ARM, your interest rate generally starts out lower for a set period of time and then is periodically adjusted.  It could be adjusted monthly, semi-annually, annually or adjusted in 3 or 5 years.  This rate adjustment leads to the possibility of your monthly mortgage payment going down (very good) or up (not good at all). 

Interest rates are made up of two important factors: 

1. Index (gauge of inflation) that the lender uses.  This index can go up or down with the general movement of interest rates. 
2. Margin (lender’s cost plus profit) this is added to the index to get a mortgage interest rate.

As the index goes up (inflation) your mortgage rate will go up accordingly.  However, today’s ARMs have pre-set maximum caps in place to protect borrowers.  These caps set the limit on not only upward movement, but also downward movement.   

An ARM may seem like a risky venture given the fluctuation of interest rates over the years, but if you are well informed, an ARM may be the right choice for Fairfax County VA homes for sale buyers.

When should you seriously consider an adjustable rate mortgage?

You aren’t planning on staying in your home for very long.  Interest rate adjustments for an ARM occur periodically based on the type of ARM you have.  For example, if you receive a 5 year ARM, the rate can be adjusted every five years.  If you plan on moving before the end of the adjustment period, this may be the loan for you.

You want a lower interest rate.  Most lenders offer lower interest rates initially for ARMs, which may make you eligible for a larger loan.
 
You are willing to take a risk.  Sometimes ARMs result in lower average interest rates over the life of the loan.  However, you need to be aware if interest rates go up, it could increase your overall mortgage payment.  Be sure to ask your lender what Index they use, how it’s behaved in the past and where you can find it published.

Although an adjustable rate mortgage may seem a bit like rolling the dice, a well-researched ARM with a reputable lender can sometimes save you money in the long run.

Today 15 and 30 year fixed mortgage interest rates are low.  Be sure and check on a fixed rate mortgage before you look at ARMs, since a fixed rate may be lower over the life of your loan.

Now that you have more information about available mortgage options, if you’re considering purchasing Fairfax County VA homes for sale, give me a call at 703-909-3939.  I’ll help you find your perfect home and help you obtain it for the best price and terms.  Drop me an email at Steve@HomeSearchWebsite.com now!
  
Steve Hawkins
Long and Foster REALTORS®
Springfield, Virginia
www.HomeSearchWebsite.com
Steve@HomeSearchWebsite.com
703-909-3939

Buying Alexandria VA homes for sale for the first time can be an adventure…and it can also be intimidating.  Making such a large financial purchase for the first time can cause more than a few sleepless nights for prospective Alexandria VA homes for sale buyers.

One of the biggest fears first time Alexandria VA homes for sale buyers have is “can we really afford to purchase a house?”  It’s a natural fear considering the amount of money involved.  Yet there are numerous programs available to first time homebuyers to make the process less stressful. 

Here are a few things first time Alexandria VA homes for sale buyers should consider:

• Pre-qualification
  An agent will usually have a list of lenders you can work with to get pre-qualified for a loan.  Doing so helps you know how much of a home you can afford and what your monthly mortgage payment will be.
• Money Down
  Most homebuyers are required to put a certain percentage down on their Alexandria VA homes for sale purchase.  As a first time homebuyer, you may be eligible for a very low to zero down payment.
   
• Interest Rate
  Depending on your income and credit rating, you may be eligible for a lower than average interest rate.  Or, if you choose to put nothing down, you may be paying a higher than average interest rate.  When you consider financing your Alexandria VA homes for sale, look at all the costs involved…not just the interest rate.  Be sure to discuss with your lender the closing costs associated with each loan and what the difference is between interest rates.  It may be worth it to get a loan with a slightly higher interest rate and lower closing costs; rather than it would be to go with a loan that has a lower interest rate, but higher closing costs.

Why Use an Agent?  The most valuable tool a first time Alexandria VA homes for sale buyer can have is an experienced REALTOR®.  Your Alexandria real estate agent should know all the areas and market trends including: Old Town, Arlandria, Del Ray, West End, North Ridge and Franconia. 

No matter which area of Northern Virginia you choose for your first home, my knowledge of the local real estate market  will make your first time home buyer experience a smooth one.  I’ll advise new Alexandria VA homes for sale buyers on all mortgage options available to them and will help you decide which option best meets your personal budget and needs.  Learn about the top 10 Buyer Mistakes you won’t want to make.

Alexandria Virginia has something for everyone.  Whether you’re buying your first home,  relocating to the Alexandria VA homes for sale area, or looking for a second home, I would love to help!  Just drop me an email at Steve@HomeSearchWebsite.com or call me direct at 703-909-3939.  You’ll be glad you did! 

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