10/24/07
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Find more pictures of Madison by Patti at
www.MadisonVaRealEstate.com
Thursday, October 25, 2007
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Know The Score
You hear it everywhere: exotic loans, FICO scores, default risks, rising interest rates. Sounds like a lot of gloom and doom, doesn't it? While lenders are generating hot and heavy business, the truth is that it's still an excellent time to purchase a home. It's also time to educate your self about the economics behind securing a home loan.
The rate you are offered on a mortgage is largely based on your FICO score. What is FICO? It simply stands for Fair Isaac & Company, who developed our modern credit scoring models. The highest possible “score” is 850, and you'll need a rating of 620 or above to be considered for the best interest rates.
Higher income does not necessarily generate a higher score. Your payment history does have significant impact, however. If you have a higher credit score, you're probably in a position to accept a “prepayment penalty,” which is imposed when a loan is repaid early. But many borrowers who accept this “penalty” will end up paying a lower interest rate.
Be cautious out there - with so many types of loans available, you'll find some are a good fit for you and some are downright unwise. Real estate agents and mortgage specialists work together to determine the best avenue for you to follow, leading right up to the front door of your new home!
www.MadisonVaRealEstate.com
The rate you are offered on a mortgage is largely based on your FICO score. What is FICO? It simply stands for Fair Isaac & Company, who developed our modern credit scoring models. The highest possible “score” is 850, and you'll need a rating of 620 or above to be considered for the best interest rates.
Higher income does not necessarily generate a higher score. Your payment history does have significant impact, however. If you have a higher credit score, you're probably in a position to accept a “prepayment penalty,” which is imposed when a loan is repaid early. But many borrowers who accept this “penalty” will end up paying a lower interest rate.
Be cautious out there - with so many types of loans available, you'll find some are a good fit for you and some are downright unwise. Real estate agents and mortgage specialists work together to determine the best avenue for you to follow, leading right up to the front door of your new home!
www.MadisonVaRealEstate.com
Remodeling Dollars and Sense
REMODELING: DOLLARS & SENSE
Many homeowners remodel not just to improve the condition of their biggest asset, but also to improve the salability of said asset. Experience proves that some projects are better for improving your bottom line than others.
DO upgrade kitchens and bathrooms, as these rooms are most likely to get scrutinized by potential buyers. New countertops and appliances and sparkling fixtures will be a memorable aspect of your showings.
DO improve exterior features, too - first impressions count! Some of the most valuable work you can do is to add new siding, or to pressure clean or replace old dingy siding. Another outdoor biggie: decks. Most everyone loves relaxing outside, so adding or improving this amenity not only adds style to your lifestyle right now, but also increases your home's real and perceived value.
DO realize that the biggest return on your remodeling investment will come from more costly repairs, such as replacing windows or installing new air and heating units. If your home is in need of such improvements, it makes sense to do it now, before it costs more later.
Finally, DON'T turn your home into the neighborhood's priciest palace. You'll end up turning off potential buyers who will see other homes around the block offering more affordability. It's a delicate balance, but your home should offer the greatest value when compared with similar offerings.
www.MadisonVaRealEstate.com
Many homeowners remodel not just to improve the condition of their biggest asset, but also to improve the salability of said asset. Experience proves that some projects are better for improving your bottom line than others.
DO upgrade kitchens and bathrooms, as these rooms are most likely to get scrutinized by potential buyers. New countertops and appliances and sparkling fixtures will be a memorable aspect of your showings.
DO improve exterior features, too - first impressions count! Some of the most valuable work you can do is to add new siding, or to pressure clean or replace old dingy siding. Another outdoor biggie: decks. Most everyone loves relaxing outside, so adding or improving this amenity not only adds style to your lifestyle right now, but also increases your home's real and perceived value.
DO realize that the biggest return on your remodeling investment will come from more costly repairs, such as replacing windows or installing new air and heating units. If your home is in need of such improvements, it makes sense to do it now, before it costs more later.
Finally, DON'T turn your home into the neighborhood's priciest palace. You'll end up turning off potential buyers who will see other homes around the block offering more affordability. It's a delicate balance, but your home should offer the greatest value when compared with similar offerings.
www.MadisonVaRealEstate.com
Monday, July 9, 2007
Rubbing Elbows
At some point in your life you're likely to find yourself either buying or selling a home. When that time comes, you might want to ask yourself some questions.
Can I figure like an accountant? Can I measure like a surveyor? Do I understand "legalese" like an attorney? Can I spot defects like an inspector? Can I speak like an auctioneer? Do I understand zoning, building codes and taxes like a city or county employee? Do I understand human motivation like a psychologist?
Chances are you'll be hard pressed to answer all those questions with a "Yes," unless you're a real estate professional. Why, you ask, would an agent be different? It has to do with "rubbing elbows."
The daily routine of an active, highly committed real estate broker or agent is an exhausting one. During any 24 hour period, such a professional will likely have contact with loan officers, lawyers, tax collectors, land surveyors, insurance company representatives, mortgage lending officers, accountants, auctioneers, courthouse personnel, local businessmen and - most importantly - buyers and sellers.
Working at least six days a week, can you imagine how many individual contacts would be made in a year's time? Such an active individual can mean the difference between winning or losing at real estate. After all, it's who you know, and now you know the benefits of representation.
At some point in your life you're likely to find yourself either buying or selling a home. When that time comes, you might want to ask yourself some questions.
Can I figure like an accountant? Can I measure like a surveyor? Do I understand "legalese" like an attorney? Can I spot defects like an inspector? Can I speak like an auctioneer? Do I understand zoning, building codes and taxes like a city or county employee? Do I understand human motivation like a psychologist?
Chances are you'll be hard pressed to answer all those questions with a "Yes," unless you're a real estate professional. Why, you ask, would an agent be different? It has to do with "rubbing elbows."
The daily routine of an active, highly committed real estate broker or agent is an exhausting one. During any 24 hour period, such a professional will likely have contact with loan officers, lawyers, tax collectors, land surveyors, insurance company representatives, mortgage lending officers, accountants, auctioneers, courthouse personnel, local businessmen and - most importantly - buyers and sellers.
Working at least six days a week, can you imagine how many individual contacts would be made in a year's time? Such an active individual can mean the difference between winning or losing at real estate. After all, it's who you know, and now you know the benefits of representation.
AN OUNCE OF PREVENTION!
What does the phrase "title search" mean to you? Aside from an activity at the local library, its purpose is critical to the successful sale of a home. A title search is performed by an attorney in order to guarantee that there are no unknown liens on or claims to a property.
Because title searches are often ordered only after a purchase contract is on the table, problems can suddenly turn up at the eleventh hour, causing delays in the closing. That's why it may be advisable for the sellers to request a title search before even listing their property for sale.
What sort of problems might a title search unearth? There might be an "unreleased mortgage," which happens when a previous refinance is paid off, but the lender fails to file a release on the old mortgage. Property taxes may appear to be unpaid until filing errors are discovered. A divorce or death in the family may not be properly reflected in the ownership structure. Sometimes property records are fraudulently used to commit identity theft.
This is not to say that these errors are common, but they are increasingly prevalent among properties that have changed hands several times over these last few years of frenzied real estate activity. Speak with an agent before listing your home to determine whether a title search is appropriate.
What does the phrase "title search" mean to you? Aside from an activity at the local library, its purpose is critical to the successful sale of a home. A title search is performed by an attorney in order to guarantee that there are no unknown liens on or claims to a property.
Because title searches are often ordered only after a purchase contract is on the table, problems can suddenly turn up at the eleventh hour, causing delays in the closing. That's why it may be advisable for the sellers to request a title search before even listing their property for sale.
What sort of problems might a title search unearth? There might be an "unreleased mortgage," which happens when a previous refinance is paid off, but the lender fails to file a release on the old mortgage. Property taxes may appear to be unpaid until filing errors are discovered. A divorce or death in the family may not be properly reflected in the ownership structure. Sometimes property records are fraudulently used to commit identity theft.
This is not to say that these errors are common, but they are increasingly prevalent among properties that have changed hands several times over these last few years of frenzied real estate activity. Speak with an agent before listing your home to determine whether a title search is appropriate.
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