Loudoun County Offers Free Homebuyer Workshop

The Loudoun County Department of Family Services is offering free homebuyer education workshops called "Homeownership 101". The workshops are focused on helping potential first-time homebuyers in understanding the home-buying process. The workshop is six hours and goes over things such budgeting, credit, working with Realtors, the mortgage process and what to expect at settlement. The class is required if you’re looking to purchase and ADU (Affordable Dwelling Unit) or obtain financing through the Virginia Housing Development Authority (VHDA).

The workshops are held at different locations several times throughout the year over a two-evening time period from 5:30 to 8:30 p.m. You have to attend both sessions. You must pre-register and the class size for each workshop is limited so do it early. To pre-register, contact Chris Vogel of the Department of Family Services at (          703-777-0353       .

For the schedule of workshops, click here.

If you’re a first time home buyer or just refreshing your memory, you can also check out the Buyer Resources category of LoudounScene.com.

Related Articles

The Real Estate Buyer’s Guide to the Home Buying Process - Part One

The Real Estate Buyer’s Guide to the Home Buying Process - Part Two

Glossary of Real Estate Terms

Mortgage Rate Round Up - June 28, 2008

Here’s this weeks’ mortgage rate update:

• Fed stays put on rates
• Mortgage rates improve as bonds rally
• National average of 30 year fixed rate down to 6.25% (VA average is about the same)
• 10 year treasury dipped under 4% for the first time in two weeks
• 30 year loans are still cheaper today than a year ago

Graph courtesy of Bankrate.com. Stats courtesy of Darran Anthony, Suntrust Mortgage.

Forbes Names Loudoun County Top 10 Places To Buy Foreclosures

Forbes recently named the DC metro area including Loudoun County one of the top 10 places in the US to buy foreclosures. Some of the criteria used was prices, inventory levels, hints of stabilization and long-term investment potential. For more on the story, check out my post over at LoudounForeclosures.com.

How To Find Out About Some Of The Best Real Estate Deals In Loudoun County

Up until recently, some of the best deals in Loudoun County were being posted here on this blog. Many of you emailed or called asking for more information about the properties or to see them in person. Well, unfortunately, I can no longer continue posting those. Based on rules and regulations that govern all Realtors, posting about a property that is listed by another agent/broker is considered "advertising" and is not allowed.

But, there is a solution! You can receive my top picks of properties for sale in Loudoun County via email. If you request the information to be sent to you, then it’s no longer "advertising".

Here’s how you do it…

Insert your email address and first name into the form below and then click "Submit". A thank you page will pop-up stating that you will receive a confirmation email shortly. Just click on the link in the confirmation email and you will start receiving the best deals in Loudoun County immediately.

Please note…your email address, name or personal information will never be sold or provided to third parties. You will not receive any emails other than the best deals in Loudoun County. You will not be harrassed by sales emails or emails trying to solicit your business. It’s completely up to you if/when you wish to initiate contact with me.

Send Me The Best Deals In Loudoun County!

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Loudoun Real Estate Inventory Levels Well Below National Average

Loudoun County’s real estate inventory/supply levels are currently well below the national average of 10.9 months. Loudoun currently has 2400 active homes for sale. The number of homes that sell (go under contract) each month is averaging 427 so far this year. This puts the supply of homes in Loudoun County at 5.6 months meaning that it would take that long to go through the existing supply of unsold homes.

Note: More than a 6 months supply is considered a "buyer’s market" and less than 5 months is considered a "seller’s market".

So why the huge difference in market conditions?

Because Loudoun County and the DC metro area are typically about 6 to 9 months ahead of the rest of the US when it comes to real estate market conditions. So when you read headlines about the US real estate market in general, remember that we’ve probably already "been there and done that".

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Undergoing MyBlogLog Verification

How To Have Your Home Make A Great First Impression To Buyers

When you meet someone for the first time, what’s the first thing you do? You look them up and down, notice how they’re dressed, listen to the inflection in their voice, watch their mannerisms, etc. You then use that information to help make an initial judgment of that person (whether consciously or subconsciously). This is called a first impression.

Well, the same holds true for buyers when they first drive up to your home to preview it. What buyers see when they first drive up to your home will set the tone for the rest of their visit. It’s the buyer’s first impression of your home and you want to make it a good one.

The number one thing when it comes to having your home make a great first impression on a buyer is the curb appeal. Part of curb appeal is landscaping, especially in the front yard. Your front yard is one of the first things buyers see when the arrive at your home. It’s also going to be used in the picture of your home that buyers see when they’re browsing online.

Now you don’t have to go crazy and spend gobs of money or even hire a landscaping company. All you really need is about a few hundred dollars and a few hours to a day of your time.

Here are some of the things you can do:

• Throw some grass seeds or sod down ahead of your home going on the market
• Make sure your lawn is cut at all times
• Spray for weeds
• Lay down fresh mulch just before your home goes on the market (you can also look at a different color mulch that will go along with the colors of the flowers, siding, shutters, etc)
• Neatly trim bushes, ivy, trees, etc.
• Plan some bushes, small trees, etc.
• Plant seasonal flowers that go along with the color scheme of the outside of your home
• Place or hang planters on your front porch if you have one
• Throw in some solar lights in the mulch/grass alongside the walk-way to your front door (you can get inexpensive ones at Home Depot or Lowe’s)

If you have a really bad brown thumb, you could always hire a landscaper or bribe a friend or family member to do it for you. It’ll cost you more (including a future favor to your friend ot family member), but it may be well worth it.

Note: If you’re thinking about planting/cutting down trees or large bushes, you may want to check with your HOA regarding the community bylaws/rules. And don’t plant things so close to the house that the buyer’s Home Inspector brings it up as a fault during the Home Inspection (I’ve seen it happen often).

Dos and Don’ts For Home Buyers - Between Contract and Closing

Now that you’ve got a ratified contract on a new home, you’re probably thinking about all the stuff you need to get and buy. New furniture, appliances, carpet, hardwood…there’s always something you "must have" for the new place. But your loan will start getting processed and while this is going on, you have to be very careful about what you do, and more importantly, what you don’t do.

Why? Because your lender will be carefully watching your credit and financial situation for any changes between now and settlement. In fact, they may re-pull your credit only a few days prior to settlement day to ensure that your nothing has changed. If you’re not careful, your lender may make you jump through major hoops to explain yourself, delay settlement or worse, rescind their loan approval altogether leaving you out to dry come settlement day.

So before you tell yourself "yes" or "no" to something between contract date and settlement, follow this simple checklist and check with your loan officer as well:

Do’s

• Keep originals of all pay stubs, bank statements and other important financial documentation. Most lenders are required to update any documents that are more than 30 days old prior to the closing of your mortgage loan (settlement day)
• Provide all documentation for the sale of your current home (eg; sales contract, closing statement, employer relocation/buyout program)
• Notify your loan officer if you have an employment change (eg; change of employer, recent raise/promotion, change of pay status from salary to commission)
• Get additional paperwork and documentation requested by the lender back to them as soon as possible
• Continue making payments to liabilities so that your outstanding balances don’t go up

Don’ts

• Change jobs/employers without inquiring about the impact this change would have on the approval/approvability of your mortgage loan
• Make major purchases during or prior to closing (eg; new car, furniture, appliances, electronics) because this will impact your debt-to-income ratios
• Obtain and/or deposit sums of money over $500 without notifying your loan officer . Guidelines require documentation as to the source of these funds (eg; bonus check copy, tax refund, insurance settlement, gift letter and check copy)
• Close, open or transfer any asset accounts without inquiring about the proper documentation required for your loan (eg; if you transfer all the funds in your stock account to your savings account, documentation is required)
• Open new liabilities (including credit cards, signature loans, etc.) during the loan process because this will impact your debt-to-income ratios
• Skip payments on liabilities (eg; loans, credit cards) just because they’ll be paid off by the proceeds from the sale of your current home in the near future. If you’re late on a payment and it’s reported, there goes your credit score

In case you’re wondering, there is no "maybe" category. If you have a question whether something falls into the "Do" or "Don’t" category, immediately check with your loan officer/lender. You don’t want to guess and be wrong…

(And once again, make sure you speak with your loan officer for guidance)

Van Metre Homes, Broadlands - New Construction Update

Had a chance to stop by Van Metre Homes in Broadlands, Virginia today to check out the latest on their single family homes including incentives and available quick-delivery/spec homes. Van Metre Homes in Broadlands is currently offering either $35K, $50K or $75K towards options and/or closing costs depending on the series/collection of home. And between now and the end of June 30th, they will throw in a finished rec room. In addition, you can go to their web site and play their "Go For The Green" game, which can get you up to another $10K off.

Here’s the scoop:

Van Metre Homes’ Parkgrove section of Broadlands is near the end of Truro Parish next to Belmont Ridge Rd. Van Metre Homes has the Windsor Collection available within that community.

• Models available are the Eastbury, Kendall and Chartwell (no floorplans available on their web site, but I have ones available)
• Prices start at $849,990 and go up to $919,990 depending on the model and home site
• $75K towards options and/or closing costs
• Free finished rec room in basement through June 30th
• Homes range in size from about 4000 to 5500 square feet on two levels
• Lot sizes are 3/4 to 1+ acres
• 4 car garage, 4 bedrooms, 3 full baths, formal poweder room, rear morning room, gourmet kitchen, 12×12 ceramic tile flooring standard
• They’ve sold 13 out of the 41 available lots in the community not including two with lot holds on them
• Three of the available lots have either a $15K or $20K lot premium
• HOA dues are $65.50 per month and include use of all the Broadlands community amenities (bundled high speed internet, phone and TV not included)

The Parkgrove section has one quick-delivery/spec home available. Here are some of the details:

• Eastbury model
• Elevation D7 - Brick with Stone
• 4 bedrooms, 4.5 baths
• 3 car garage
• Hardi Plank Siding
• Architectural Shingles
• Gourmet kitchen with rear morning room
• Butler’s pantry and "tech center"
• Upgraded countertops and cabinets
• Side sunroom with 2nd floor "kids retreat"
• 2nd family room upstairs
• Finished basement
• Upgraded plumbing and lighting fixtures
• Hardwood throughout main level
• Originally priced over $1.1M - for sale for $975K
• Immediate delivery
• Backs to trees, but on the corner of entrance to community and Truro Parish
• One of only 3 car garage homes in community

Van Metre Homes in Broadlands South has the Courtyard, Classic and Estate Collections available.

Courtyard Collection:

• Models available are the Chase, Brighton and Porter (Porter is being discontinued this Monday)
• Prices start at $524,990 and go up to $552,990 depending on the model
• $35K towards options and/or closing costs
• Free finished rec room in basement through June 30th
• Homes range in size from 2244 square feet to 2636 square feet on two levels
• Lot sizes are rougly 1/5 acre (size depends the lot)
• 2 car garage, 4 bedrooms, 2.5 baths standard
• They have 9 lots available to choose from based on their last release of lots
• No lot premiums
• HOA dues are $214.50 and includes use of all the Broadlands community amenities as well as high-speed internet, phone and TV

Classic and Estate Collections:

• Models available are the Byron, James, Eastbury, Taylor and Blackwell
• Prices start at $670,990 and go up to $779,990
• $50K towards options and/or closing costs
• Free finished rec room in basement through June 30th
• Homes range in size from 3203 to 3906 square feet on two levels
• Lot sizes are roughly 1/4 acre (size depends on lot)
• 2-3 car garage, 4-5 bedrooms. 3/5 baths standard
• They have 16 lots available to choose from based on their last release of lots
• No lot premiums
• HOA dues are $214.50 and includes use of all the Broadlands community amenities as well as high-speed internet, phone and TV

The Broadlands South section has three quick-delivery/spec homes available:

1. Eastbury model, fully loaded, originally over $1.1M - for sale for $998K
2. Chase model, still room to pick some options - around $600K depending on options
3. Brighton model, still room to pick some options - around $625K depending on options

If you’d like more information or wish to check out the available lots, models, etc., drop me a line. If you’d like to take a look at any of the the specs, I can take you through them as well.

Mortgage Rate Round Up - June 21, 2008

Average rates on 30-year fixed mortgages in Northern Virginia fell slightly to 6.24 percent on Friday (basically even with last week). The mortgages in the survey had an average of 0.51 discount and origination points.

The highest rate on a 30-year fixed mortgage was found at two institutions that charged 7.000 percent. The lowest rate was found at four institutions that charged 5.750 percent. Six months ago, the average rate was 5.80 percent.

Source: Bankrate.com

What Is Title Insurance? And How Much Did You Say It Was?!

You, like many consumers, may wonder what Title Insurance really is and how much it costs. You may also cringe at the cost when you find out what it is. Yes, several thousands of dollars is definitely a lot of money. But it's a drop in the bucket when compared to the loss you could be facing should their be a claim or an issue, which could cost you hundreds of thousands of dollars.

So what is Title Insurance?

As defined by Wikipedia,

"Title insurance in the United States is indemnity insurance against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens. Title insurance is principally a product developed and sold in the United States as a result of the comparative deficiency of the US land records laws. It is meant to protect an owner's or lender's financial interest in real property against loss due to title defects, liens or other matters. It will defend against a lawsuit attacking the title as it is insured, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy."

In layman's terms, Title Insurance is what covers you against a claim against the property.

The good thing about Title Insurance is that rather than you fighting the claim (which can cost tens of thousands of dollars), the Title Insurance company handles it for you. You don't have to waste your time, energy or money worrying fighting the claim. In addition, if the claim proves to be valid, you will be reimbursed for your actual loss up to the face amount of the policy.

Title Insurance is divided into two parts, Owner's Title Insurance and Lender's Title Insurance. Let's look at the difference…

Lender's Title Insurance

• Covers the lender's interest in the property (if the loan is for $400K, it covers the lender's interest up to $400K)
• As a borrower/buyer, you are required to purchase it in order to receive financing
• Unless you're not getting lender financing, there's no getting out of this one. And the lender always passes the buck to the borrower/buyer (sorry folks)

Owner's Title Insurance

• Covers the borrower's/buyer's interest in the property up to the purchase price (if the loan is for $400K, but the purchase price is $500K, it covers the buyer all the way up to $500K)
• This type of Title Insurance is optional. It's up to you whether you buy it or not, but it's strongly recommended (I'll cite examples of why in a future post)

In addition, there is what's called "Standard" and "Enhanced" Owner's Title Insurance. Depending on who the Title Insurance provider is and what their coverage is like, you'll want to go with either "Standard" coverage or "Enhanced" coverage.

"Standard" coverage typically covers you up to the sales price at the time of settlement. If you bought the property for $500K, but it's worth $650K in 7 years, you'd still only be covered up to $500K. If there was a claim up to the full market value of $650K, you may be liable for the difference of $150K.

On the other hand, "Enhanced" coverage does cover the appreciation of the property up to a certain amount over a certain time frame. You'll typically see language similar to,

"The property is covered up to ____ percent appreciation per year over ____ years."

Also, most "Standard" policies do not cover Mechanic's Liens while "Enhanced" policies do. Mechanic's Liens are liens put on the property by contractors that claim to not have been paid by the previous owners/builder whom they provided services for. These are the most common types of liens found on properties.

What's important to know is that these types of liens follow the property, not the owner. So if the seller skipped out on their tab to the carpenter who fixed the deck as part of your Home Inspection contingency, you would be liable for it (unless you had Title Insurance that covered Mechanic's Liens).

So how much does Title Insurance cost?

Typically, Title Insurance is calculated as a dollar amount per $1,000 of the loan amount and/or purchase price. Generally speaking, Title Insurance (Lender's and Owner's combined) costs about 0.5 percent of the total purchase price*. For example, if the purchase price is $500K, the cost would be about $2,500.

*Please note that these figures are general. The actual cost depends on who the Title Insurance provider is, their specific rates and what type of coverage you get, "Standard" or "Enhanced". Shop around and compare rates and coverages if you can.

So, that's Title Insurance and the costs involved in a nutshell. If you have further questions or concerns, don't hesitate to contact me.

Related Articles

Case Study: Why Owner's Title Insurance Is So Important

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