1. Save, save and save some more. At minimum to qualify to purchase a home, you will need:

• 3.5% of the home’s price or higher for a down payment.

• An extra 2-4% for closing cost.

• And some loans require 6 months cash reserves in savings

And once you purchase a home don’t forget about the moving cost and other expenses that typically follow.

2. Hone in. Do your research on different areas you would like to live. This can be as easy as doing a property search online. Eliminate those areas you can’t afford or are too far from work. Narrowing your search will make it easier to gather information about school districts and other things that are important to you.

Helpful tip: Consider getting a real estate agent before you’re ready to go tour houses. An agent’s services go way beyond “showing and selling” houses. They can guide you through the entire home buying process, from well before to well after the actual purchase. If you are open and honest about your time frame you won’t have to worry about being “sold” too until you are ready to buy.  Learn more: 4 Busted Myths about Using a Real Estate Agent

3. Assess your credit. Obtain your credit report now. Don’t wait to be surprise by your credit score when your lender pulls it six months from now. Know in advance if there are some areas you need to improve. Working to bring up your score could save you thousands later on. Also, review your history for any discrepancies. Resolving an error on the report can take some time but may help your score.

Helpful tip: The Fair Credit Reporting Act requires each of the nationwide consumer reporting companies (Equifax, Experian, & TransUnion) to provide you with a free copy of your credit report, at your request, once every 12 months. Here is the website for a free annual credit report. Be wary of other free credit websites advertised on TV. They almost always have hidden fees or gimmicks.

4. Plan. Consider your time frame. When do you want or need to move? What factors will affect your time frame?

Do you have a lease? If so, look into the cost of breaking a lease or extending it month to month. Knowing the cost will help you determined how much “pressure” there is to move by a certain date.

Are your financials in order? Once you have a time frame determined you can work backwards to allow the appropriate time to save or correct your credit.

Are you considering short sales or foreclosed homes? . Short sale homes can run into complications when it comes time to close and may take longer than expected, a month or so longer. Consider these few extra months from the beginning.

5. Educate. Take time to learn about the home buying process before you start it. Between envisioning your dream home and the constant media message of “Buy, Buy, Buy!” it is easy to get sucked into the emotional whirlpool of buying a home. Arm yourself with knowledge.

Helpful Tip: There is a lot of real estate information out there and it is easy to get over whelmed. Remember that housing trends should be considered locally, not on a national level. Break away from the generic News headlines and get local with Market Minutes Reports.

Photo Credit: by ~ggvic~

Each year as we head into the Holidays, potential Sellers always ask if they should list or keep their home on the market over the Holidays.

First, there is no right or wrong time to list and sell your property. Buyers buy 365 days a year, and they are very motivated if they are looking in December. These buyers can fall into several groups. The top two are those who are relocating, and those who need to close before the end of the year for tax reasons. Even though there is always a seasonal drop in January, December will frequently see a little upward “bump” as buyers get the end of the year push. If you keep your home on the market during a time that normally sees a drop in inventory, you can capitalize on these conditions.

If you decide not to show your home, we suggest you take it off the market and re-list it in January. This is a simple, but effective strategy to have your property appear as a “New” listing and will also help reload any marketing your agent plans for the New Year.

If you plan to keep your home on the market, then we suggest you not go overboard with holiday decorations. Seasonal staging almost always is a turn-off for buyers. Simple is best if you do plan to decorate. Some of the most successful holiday sales actually have no decorations. As with other times of year, you must depersonalize and declutter. Be sure to keep any decorations secular and ethnically neutral. You should put away things like nativity scenes and any family heirlooms.

As for showing times, be very careful at using “blackout times”. You will certainly lose buyers if you make it difficult for an agent to schedule a showing. Give your listing agent clear instructions like – no showings one 12/24, 12/25, 12/26, and 1/1.

Be flexible this time of year. Plan on there being some crazy times and showings and be prepared to have dirt tracked in, sidewalks to shovel and late notice on showings.

Lastly, do not leave fires or candles burning. This is a must. You should have your home well lit and homely and even allow some of those holiday smells – cookies and pies – to remain.

Good luck!

photo credit: raiosunshine

Most lenders are willing to play the what if game.  If a borrower is denied the loan officer can easily revisit their application and attempt to tweak the application to the borrower’s favor. This is not mortgage fraud. They can only tweak the loan terms not the borrowers’ information.

For example, adjusting the loan amount lower or considering longer loan terms.  Or running a what-if scenario of how much more of a down payment is needed to offset a weaker factor like credit score.  This gives the borrower the opportunity to step back and weigh all options. And thanks to the AUS ( automatic underwriting system) this can be done in a matter of minutes not days like in the past.

If the buyer cannot or chooses not to meet the adjusted requirements this is when the loan application is denied.  The great thing about the tweaking process is that the borrower now has a roadmap detailing exactly what the borrower has to do to be approved in the future, to the dollar amount. “If you save $10,000 more or bring your credit score up 20 points then we can do this deal.”

So “now what?”  Well that depends on each borrower’s particular situation, be it fixing a credit score or saving additional funds.  The silver lining is with interest rates projected to remain low for the next year and market pressure keeping prices down, time is on the borrower’s side.

Source: Mortgage Confidential: What you need to know that your lender won’t tell you

Whether buying new or resale homes, choices abound in today’s home buying market. Buying a newly constructed home may be top of mind as many factors come into play.

Choice: One reason buyers go the new home route is that they are given plenty of choices and options in the level of customization of their home. These options may range from being able to choose color schemes, upgrades like trim moldings, kitchens finishing’s, selection of flooring options throughout the home, home automation and more. New home buyers can have their builder add their personal touches that satisfy their personality, personal tastes and needs.

Home repair cost: This is a significant factor when buying new. Home repairs on a new home are kept at a minimum. And even if repairs are needed, today’s builders include warranties for certain period of time. Most builders cover home repairs for the first year you live in the new place. Resale homes in other hand, can offer warranties, but often are limited in the items it covers. Many times these warranties need to be purchased separately by the buyer.

Up-to-date features: Home automation also makes buying a new home that much more appealing. In the case of a resale home, implementing today’s new technologies may be cumbersome and not necessarily cost effective. Since more and more builders are integrating new technologies on new home designs, the costs savings can be dramatic. Technologies such as wireless internet access, intercom systems, and surround sound are just some of the aspects of new home technologies that can be expected in the today’s new home designs.

Stringent building codes and safety requirements :  From lead-based paint to asbestos insulation, the materials found in resale houses can be costly replace, many times impossible to replace. New homes are subject to more stringent building codes and safety requirements than what older homes have. In addition, materials used in new construction, asbestos and lead have been eliminated. This in turn benefits the new homebuyers and their families from hazardous materials or unsafe environments. Then there is less risk of fire in today’s new home construction. Wiring systems have improved as well. In addition, most of today’s new homes have hard-wired smoke detectors with battery-powered backup.

Energy efficiency: As home buyer become more conscious of the environment, having a home that is energy efficient, has become an important factor when buying new. The appliances available today are far more energy efficient than they were 10 years ago. Energy efficient solutions found in today new homes can help greatly reduce overall energy cost. This in turn helps to save in utility bills. Improved heating and cooling systems and better insulation techniques in new constructions offer greater efficiency than older homes. This can in turn offset the cost of a new home.

New home buyers after having considered all the hidden costs of resale homes, may actually save money by buying new. The level of customization, home automation, energy efficiency and construction durability as well as safety, are among the many benefits that buying a new home would bring.

Learn More: We’re Buying a New Home: Do We Go it Alone?

The index is calculated based on 4 factors; home values, walk score, population density and local crime data. See below for the 5 best neighborhoods in each city.

Washington, D.C.: West End, Kalorama, U Street Corridor, Georgetown, Dupont Circle

Virginia Beach: Alanton, Thoroughgood, Great Neck, Bay Colony, The North End

Baltimore: Roland Park, Homeland, Guilford, Hampden, Mount Washington

We would be happy to show you a home in any of these neighborhoods. Reach us by email or by phone (855) 235- 7926. Have a safe and Happy Halloween from your friends at Long and Foster.

Do: Be honest.

Real Estate agents work best when they can tailor their services to each buyers unique situation. Hiding important information will only slow down the process.  The most common factors buyers tend to hide is representation (they already have an agent), timing and financing. All of which are more beneficial to the buyer to disclose upfront since all will be revealed during some point of the transaction anyway.

For example let’s say buyer Jan already has a Real Estate agent but she doesn’t like Agent’s 1 service and finds a new agent. She doesn’t tell the new agent 2 about agent 1.  She buys a house with agent 2 and now agent 1 is hitting buyer Jan with fees for breaking their buyer’s agreement. Had Jan told the second agent from the beginning they would have advise her to review the contract, offer advice on what grounds she had to exit the contract and then assisted her with finding a home.

Don’t: Think you are bugging your agent.

How many houses will your agent be willing to show you? Can you text them questions throughout the day? What if you want to see a house when the agent is on vacation?

All the questions above should be address from the start when a buyer signs the buyer’s agreement.  By clearing the air early buyers won’t have to question boundaries. The last thing an agent wants is for their client to go to another agent or broker because the client thinks they are “bugging them”.

Do: Do make sure the agent represents your interest.

Going the “easy” route and using the agent that is selling the home is not in the buyers’ best interest. The agent selling the home was hired by the owner to represent their best interest not the buyers. Also be weary of those agents who refuse to show certain properties like foreclosures or short sales. They could be trying to get out of doing a little extra work that may benefit the buyer.

Don’t: Go with your mom’s friend’s son, unless you actually trust him.

Using a family friend is fine, if the buyer is doing it for the right reason.  Using a friend simply to get a cut of their commission could cost a buyer far more in the long run if the agent is under qualified. The family friend may not be the best negotiator and may miss an opportunity to shave thousands off the price, or never completed a short sale before and drag the process on for months longer than a short sale certified agent.  Is your biggest purchase and the next 10 years something you are willing to gamble with?

First Halloween as a homeowner or renter? No worries. Here are a few Halloween etiquette tips so you don’t look like the newbie on the block.

Porch light on means you have candy. If you want to participate in the trick or treating fun be sure to keep your front door well lit.  Typically trick or treating starts around 6 pm and ends around 9pm latest. If you don’t want any door knocks after a certain time, simply turn off your porch lights and any illuminating decorations.

If you are out or don’t want to participate, make the house look dark. Having the porch light off should be enough to deter door knocks. But it may be confusing to children if they can tell you’re home and your front lawn is fully decorated. If you want peace and quiet close your blinds and go light on the décor.

Another option is to leave candy outside your door. In this case, leave the porch light on and make a sign that says, “Please take one piece”. Lift the bowl off the ground with a small table to keep from having a scary ant invasion.

Buy individually wrapped candy. Now is not the time to be the neighborhood baker. No matter how nice the thought is, parents won’t let their kids eat it anyway, so save the effort. If you want to be different try handing out bouncy balls or fun erasers.

And don’t get caught up on age politics. A good rule of thumb is from age 2-17, if they show up in costume they get a treat.  This may save you from having to clean egg off your door the next morning.

Don’t know how much candy to buy?  Catch a neighbor while they are taking out the trash or parking and ask what they saw last year.

Happy Halloween from your friends at Long and Foster!

Why is this important to know? Borrowers are caught off guard when the nice loan officer lady that helped them with their application hands them off once approved. Confused, borrows don’t know who to turn to with which questions. Knowing what part of the loan process the officer, processor and underwriter handle will minimize confusion down the road.

Officer: The loan officer is typically the first representative borrowers interact with. They are there to speak on the loan products, determine which are best for the borrower’s situation, quote rates, and assist with the loan application (also called the 1003 form“10-o-3”).  They will also run credit and prequalify borrowers.

Processor: The loan officer will then pass the file on to the loan processor. They prepare the paperwork for the underwriter. They double check all the numbers and ensure that the Is are dotted and all the Ts are crossed to put the borrower in the best position to be approved quickly and smoothly. The borrower will probably spend more time with their processor than they do with the officer.

Underwriter: Although very important in the transaction, borrowers will typically never hear from the underwriters. Underwriters verify that all the documentation provided is accurate and that the loan conforms to lending guidelines.

AUS(automated underwriting system): To eliminate shady underwriting it is now mandated that all loans go through a AUS for final approval. Once all the information is verified and paperwork is in place the raw numbers, such as salary and credit score, are imputed in this computer system. Some complex formula later, the loan is approved or not. Typically your loan officer and processor catch any approval issues prior to this point.

Source: Mortgage Confidential: What you need to know that your lender won’t tell you

Read the complete Mortgage Confidential series here

My husband’s parents live a mile from where we purchased our new home one year ago. At first I was skeptical, worried that our lives would end up like an episode of Everyone Loves Raymond where the mother in-law barges in unannounced to tell me how horrible my cooking is. But I am happy to report, we would make for a boring reality show.

In fact just the other day we had them over for dinner to celebrate the one year anniversary of the new house.  His mom asked us, “What has been your favorite thing about being a homeowner?”

Before I give you our answers you need a little background on my husband and me. I had left home at 17 and he moved from his parent’s house to ours.

My answer was stability. Being in college and changing my address almost every year on campus and off, I was ready to settle in to a home I wanted to invest time into. Changing my driving license address for the first time since I left home was my moment.

Without missing a beat, my husband said to his mother, “Making you mad when I bought the fence and you not being able to do anything about it” We had recently purchase a picket like fence his mother hated.

She would rant, “ it’s going to warp over time”, “ why would you put up a fence that gives you no privacy?” and so on.

To him homeownership meant the freedom to make his own decisions. He felt a type of independence he never had living with his parents. It was his roof, his rules.

I wonder what our answers will be next year.

With ample time and these ten things to look for in a daycare provider, from Connect utilities; parents can ensure they get great child care service wherever their move takes them.

1. Licensing - Choose a provider who is licensed by the state. Usually the provider is required to be certified in child CPR and first aid, and will have gone through background checks and facility safety inspections.
2. Open –door - The provider you choose should have an open-door
   approach for parents that allows you to come and go and see your child any time you want.
3. Adult-child Ratio - Ask what the adult to child ratio is and double check that they are within state guidelines.
4. Cleanliness - When you visit a daycare, keep an eye out for the cleanliness of the facility. Don’t be afraid to ask the questions that will help keep your child healthy.
5. Schedule - Ask your prospective daycare provider what a typical day looks like. Do they have a daily schedule that is well rounded?
6. Toys - While the schedule of activities is important, it is equally important for the daycare to have a wide variety of age-appropriate toys and games, and that they are kept separate.
7. Meals and Snacks - Your child will soon be eating table-food, so you want to make sure the daycare provider serves a wide variety of nutritional foods.
8. Policies - Good daycare providers will have a written policy that covers just about every issue that can come up. You will want to know what will happen in any circumstance as it pertains to your child.
9. Contracts -  With a signed contract, there will be no question as to how much you will pay per hour or per day, what the pay schedule is, or how to handle vacation and sick time.
10. Good Feeling - Finally, after visiting a prospective daycare provider, you should have a general, overall good feeling, about leaving your child in their care. You can reinforce that feeling by talking to references and seeing the other well-cared children.