Category Archives: Financing, Mortgages & Homes Loans

Why You Should Use Local Lenders?

by Nouman Mirza

When most of you are ready to buy a home, you begin by searching online. There are hundreds of website that provide you with little to lots of information.  A lot of these sites are generic sites that also affiliate with various lenders and offer advertising slots.  It is a common understanding that most people need a loan when buying a house.  When choosing a lender, it is extremely important that you use a local lender.

Here is some of the reasons why you should use a local lender:

  1. You can meet local lender face to face. Meeting with someone face to face doesn’t just establish a relationship but also makes people more sympathetic towards each other. When things go wrong or need more clarification, the loan officer can “care” for you and your family and will know how it effects you.  When you use an “online lender” you’re nothing but a number to them and will receive less care when things need extra attention.
  2. They have knowledge of the local market. A local lender will know what special programs may be available in certain areas. The will also know local market conditions and will try to figure out a customized solution for you after they’ve reviewed all documentations. A “online lender” will only look at your numbers and give you an “approval” or “denial” letter based on the documents without understanding the reasons behind them.
  3. They have relationships. Most Realtors® know 2 or 3 local lenders that they are actively working with. This creates an advantage because the loan officer knows that providing poor service will hurt their future referrals from that agent and possibly even their company. So don’t be afraid to ask your Realtor for a recommendation.

Local lenders have a vested interest in keeping everyone happy.  They know that if they screw up a relationship with a buyer, seller, Realtor® or settlement agent, they will hurt their chances of future business from their local market.

So if you’re ready to embark on a journey and find local experts, give me at call at 703-577-4320.

Pay Off Your Mortgage Sooner!

by Nouman Mirza

Paid MortgageMost of us dream of the day we finish paying off our mortgage. However, very few people actually do some of the simple steps that it takes to pay off their mortgage fast! Beyond the comfort and security aspect, paying off your mortgage early is a bit like locking in a guaranteed investment return. It can also end up saving you thousands of dollars of interest costs in the long run. Here are a few tips to help you pay off your mortgage early: Continue reading →

Step 7 : Secure Financing!

by Nouman Mirza

The search for your dream home has nearly come to an end. You’ve done everything that needs to be done up to this point and now the reality of owning a home is just on the horizon. You can smell and taste your new home, but before you start shopping for new furniture, there are a few more things left. Last time we spoke of doing your part with all the inspections and appraisal. Now there is one item left before you can officially take ownership of the home, that is to secure financing!  Continue reading →

Lots to Be Thankful For!

by Nouman Mirza

Last week was a very eventful week for Congress and we’ve got lots of things to be thankful for. The obvious is health, family, happiness, etc. However, there is much more had happened in  the real estate world last week that we should all be thankful for. Here is a list of all the great things that took place last week:

CONGRESS RAISES FHA LOAN LIMIT
As you know, in late September the FHA, Fannie Mae; and Freddie Mac loan limits were reduced in 42 states pricing potential home buyers out of the American Dream of home ownership and holding back the housing recovery. Congress restored the loan limits for the Federal Housing Administration (FHA) for two years. The reinstated FHA loan limit formula and cap change will help make mortgages more affordable and accessible for hard-working, middle-class families in 669 counties in 42 states and territories, where Continue reading →

Important Questions for Fixed vs ARM Loans?

by Nouman Mirza

Fixed vs ARMSo after reading the pros and cons of a fixed or adjustable rate mortgage, I’m sure you know which one is the best for you? Before you finalize your decision make sure to ask yourself these important questions:

  1. How long do you plan on staying in the home? If you plan to stay in the house for only a few years, it would make sense to take the lower rate ARM, especially if you can get a reasonably priced 3/1 or 5/1. Your payment and rate will be only and you can build up your savings for a bigger home down the road. Plus, you’ll never be exposed to huge rate adjustments because you’ll be moving before the adjustable rate period begins. Continue reading →

Fixed or ARM Loans?

by Nouman Mirza

Fixed vs ARMEven though I am not a loan officer, I will always get clients that want my opinion on fixed or adjustable mortgages. The low initial cost of adjustable-rate mortgages (ARM) can be very tempting but the carry a degree of uncertainty. However, fixed rate mortgages offer rate and payment security, but they can be more expensive. So here are some pros and cons to help you decide on your loan search:

PROS:

FIXED RATE ADJUSTABLE RATE (ARM)
  • Rates and payments remain constant. There won’t be any surprises even if inflation surges out of control and mortgage rates increase.
  • Stability makes budgeting easier. People can manage their money with more certainty because of their housing outlays don’t change.
  • Simple to understand, so they’re good for first-time buyers who wouldn’t know a 7/1 ARM with 2/6 caps if it hit them over the head.
  • Feature lower rates and payments early on in the loan term. Because of this, lenders can use lower payments when qualifying and buyers are able to buy more expensive home than otherwise could.
  • Allow borrowers to take advantage of falling rates without refinancing.
  • Help buyers save and invest more money. Someone who has a payment that’s $100 less with an ARM can save that money and earn more in a higher-yielding investment.

CONS: Continue reading →

FHA Loan Limit Decrease

by Nouman Mirza

FHA loan limits are decreasing on October 1, 2011. After years of steadily rising, the loans limits set by government agent will be decreased on October 1, 2011. Here is how the limit affects each county in Virginia:

County Current FHA Loan Limit Limit as of 10/1/2011 Difference
Alexandria City
Arlington County
Botetourt County
Clarke County
Craig County
Culpeper County
Essex County
Fairfax city
Fairfax County
Falls Church city
Fauquier County
Franklin County
Frederick County
Fredericksburg city
Highland County
King George County
Lancaster County
Lexington city
Loudoun County
Madison County
Manassas city
Manassas Park city
Middlesex County
Northumberland County
Orange County
Prince William County
Richmond County
Roanoke city
Roanoke County
Salem city
Spotsylvania County
Stafford County
Warren County
Winchester city		 $729,750
$729,750
$280,000
$729,750
$280,000
$382,500
$375,000
$729,750
$729,750
$729,750
$729,750
$280,000
$475,000
$729,750
$287,500
$386,250
$545,000
$296,250
$729,750
$277,500
$729,750
$729,750
$330,000
$392,500
$331,250
$729,750
$300,000
$280,000
$280,000
$280,000
$729,750
$729,750
$729,750
$475,000		 $625,500
$625,500
$271,050
$625,500
$271,050
$287,500
$274,850
$625,500
$625,500
$625,500
$625,500
$271,050
$271,050
$625,500
$271,050
$350,750
$442,750
$271,050
$625,500
$271,050
$625,500
$625,500
$271,050
$318,550
$271,050
$625,500
$271,050
$271,050
$271,050
$271,050
$625,500
$625,500
$625,500
$271,050		 ($104,250)
($104,250)
($8,950)
($104,250)
($8,950)
($95,000)
($100,150)
($104,250)
($104,250)
($104,250)
($104,250)
($8,950)
($203,950)
($104,250)
($16,450)
($35,500)
($102,250)
($25,200)
($104,250)
($6,450)
($104,250)
($104,250)
($58,950)
($73,950)
($60,200)
($104,250)
($28,950)
($8,950)
($8,950)
($8,950)
($104,250)
($104,250)
($104,250)
($203,950)

If the above limits are put into place, many of us will run the risk of being priced out of the American Dream of home ownership. Even worse, this could hold back housing recovery. So I ask you to ACT NOW! CLICK HERE to write a message to your elected officials to extend the loan limit. It is important to the housing recovery!

REMEMBER, FHA LOAN LIMITS WILL DECREASE OCT. 1!

Step 3 : Get a Loan Pre-Approval!

by Nouman Mirza

Loan ApplicationThere are very few people that can buy a home with cash. In fact, a recent study done by the National Association of REALTORS® found out that 90% of buyers finance their home purchase. After you’ve hired your Realtor it is critical to apply for a loan before looking at homes for many reasons. Prior to issuing a “pre-approval letter” a loan officer reviews your credit, job history and other pertinent information to find the best mortgage program for your needs and goals. They can also review potential issues that may arise and fix them prior to writing a contract. When getting a pre-approval letter, make sure to ask the following questions:

  1. How Much Can I Afford? A loan officer will take into consideration your loan-to-value (LTV), debt-to-income (DTI) and property type scenario to determine the maximum price you can afford. The other thing you want to keep in mind is never to buy a house at the max price you qualify at since your DTI will be on the high end and can make it harder to obtain financing. Continue reading →