What Kind of Mortgage is Right for You?

With the real estate market of Northern Virginia becoming more active every day, there is a constant surge of property in demand. If you're a prospective buyer, CLICK HERE for a Full Home Search, or if you're interested in placing your property on the market, obtain a Free Home Value Report RIGHT HERE. For any other questions about current market conditions or the value of your property, contact me at (703) 909-3939.

When buying a home in northern Virginia, it's important to know you have options when it comes to the type of mortgage you buy.

We want to share some information that will help you decide what kind of mortgage is right for you.

Some mortgage economists are predicting conventional 30-year fixed-rate mortgages to rise to 5.5% before 2015. Because of the higher rate, you may want to consider a hybrid mortgage if you are thinking about buying a home this year.

Here's why:

• It provides a fixed-rate for a predetermined period, anywhere from 5 to 10 years. 
• You can convert to a rate that can change annually.
• There is a potential for substantial monthly savings.

It's important to remember that there's still a case to stick with a conventional fixed-rate mortgage, because interest rates remain at historic lows.

The question to ask yourself is how long you plan to stay in your new home. If you are a new buyer looking to buy a smaller home and upgrade to a larger one down the road, the hybrid may be your best bet.

As always, the best choice is ultimately the one you're most comfortable with.

If you're unsure about these options, give us a call at (703) 909-3939 or email us at Steve@HomeSearchWebsite.com for advice on which mortgage is right for you!

How to stand out as a serious buyer in a competitive market

With the real estate market of Northern Virginia becoming more active every day, there is a constant surge of property in demand. If you're a prospective buyer, CLICK HERE for a Full Home Search, or if you're interested in placing your property on the market, obtain a Free Home Value Report RIGHT HERE. For any other questions about current market conditions or the value of your property, contact me at (703) 909-3939.

How to stand out as a serious buyer in a competitive market
In a competitive market with a very small amount of inventory, like the one here in Northern Virginia, you need to stand out as a buyer in order to get the homes that you desire.

One of the ways in which you can accomplish this would be to make a confident and trustworthy offer on a property to prove to the seller that you're serious about purchasing a home.

While most buyers get a pre-qualification letter, we require our buyers to get a Pre-approval letter with a direct under-writing report. This essentially turns you into a cash buyer, and this is much more desirable in the eyes of a seller.

You will also want to put down a large Escrow payment in order to show good faith. The more that you put down, the more trustworthy you will appear to the seller. Shoot for $5,000-$10,000 depending on the purchase price, not $500 or $1,000.

Also, be careful with appraisals because a property is really only worth the amount that the buyer is willing to pay for it. In my experience, two different appraisers can have wildly different prices for a property. If you waive the appraisal and agree to cover any shortfalls, you will become a much more desirable buyer.

Hopefully these tips will help you to be competitive in our real estate market here in Northern Virginia. If you're serious about buying, my best suggestion to you would be to contact me and my team of professionals. We can help guide you through this crowded market.

Thanks for tuning in!