THE ABC’S OF HOME FINANCING 

By Rob Suling

There are four major items in reviewing a loan file for approval:

CREDIT…what is your credit score?  Are there things to fix before you can buy?

Everyone assumes that the SCORE is the sole determiner in getting a loan.  However, the credit score is only the “Borrowers’ credit history for dummies”.  The report tells the full story.  Good originators look at the entire credit report to see what story it is telling.  A lower score with 1 and only blemish can be worked around but a higher score with a history of non-consistent payment, will not be approved.  Underwriters look for the underlying story.  What happened?  Why did it happen?  If it was a fluke scenario generally underwriters try not to hold it against a borrower.

EMPLOYMENT…does job hopping hurt?  How long do I have to be employed before I can buy?

Employment is a very important piece in the puzzle in today’s mortgage puzzle.  Where 1 in 11 are unemployed, banks have become very concerned about job stability.  If a prospective borrower stops one job and there is a 30 day gap in employment, most lenders will require they be on the new job for at least 6 months before the income is useable.  Most lenders will also require at least 30 days of paystubs if someone has recently moved employers, however, there are some exceptions.  This is also the number one reason lenders today do not issue commitment letters.

ASSETS…Is a gift my money?  How long do I have to have the money in the account?  What is seasoning and what are reserves?

On each application, we go through every page of every asset account we receive and the borrower must explain any deposits into the accounts that are not payroll.  This is a Federal Requirement and any unexplained deposits are to be reported to OFAC (Office of Foreign Asset Control).  Most outside deposits come from gift monies from relatives but not all loans allow for gift funds.  Many times this can be explained by borrowers simply moving funds from one account to another, but we have to paper trail all movement.  This one issue probably occupies at least 20% of a loan processor’s day. 

DTI/INCOME…How much can I buy?  What is counted in DTI?  How do they calculate my income?

Another major component of qualifying a borrower is calculating any business expenses from their most recent Federal Tax Returns.  Any business expenses claimed on a borrower(s) personal Federal Tax returns will directly impact their gross income.  For example:  If a borrower(s) annual income is $60,000.00 and they claim $20,000.00 in business expenses, the borrowers useable qualifying income now becomes $40,000.00.  Some lenders even apply this logic with Married Couples Filing Jointly.  Assume Mr. Smith takes a loss on a joint return.  Assume Mr. Smith is not on the loan.  This loss is held against Mrs. Smith as she tries to purchase a home, even though it is her husband’s loss it is claimed on taxes as their loss.  Additionally, part time income/2^nd jobs can only be used if there is a history, generally 2 years, of working in that position.  The same is true for both self employed, commissioned, and bonus income.

HAVING SAID ALL OF THIS, PLEASE CONTACT ME DIRECTLY.  SCENARIOS HAVE MANY VARIANCES BASED ON SPECIFICS SO PLEASE CALL WITH ANY QUESTIONS.  JUST WANTED YOU ALL TO KNOW WHAT OBSTACLES WE FACE AS WE APPROVE THOSE LOANS.

Buying a home is an exciting time!  Make sure you proceed with the mortgage that is right for you!  What works for your neighbor may not work for you!  These are all questions that a mortgage professional should gladly answer for you.

CALL ME ANYTIME!
 

Chantilly VA 20152 Fairfax County VA real estate statistics for closed home sales, pending sales, average sold prices, days on market, active Chantilly VA MLS home listings, and more for homes listed and sold in Chantilly VA. If you are buying or selling a home or real estate in Chantilly VA 20152 in Loudoun County VA, then what is occurring in real estate trend right now is of critical importance to you, and will most likely impact you directly.  The amount of Chantilly VA active MLS listed homes for sale, recent average home solds, and sold prices will directly affect your home’s value and worth.  For more information, feel free to contact us.  It would be our pleasure to assist you as your Chantilly VA real estate agents.

Chantilly VA home buyers. Whether you are buying a home out of choice or necessity there are several questions you must ask yourself before proceeding further in when buying a home. The first few home buyer questions asked will require specific answers that will define your home buying search. What must the home you are buying have? What style of the home are you looking for, what are the numbers of beds, baths, the appointed must have features, and what location do you really need are all critical in this answer. The next question is how much will the home cost that you are buying in Chantilly VA, and do you think you can really afford it? This is a very in depth question because not only does it deal with the cost to acquire the home, and close on it, but also include the long term payments, and the maintenance costs of that property. The next question is do you qualify to buy that home? Do you have either the cash to buy it outright, the income to qualify and get a loan, the required down payment, and the funds necessary for closing the home? Lenders are much stricter today than just a few years ago so you will need a decent credit score, a source of funds, and / or a demonstrated verifiable income. Not to worry, sometimes there are programs out there that can make the home buying process very affordable even over the long term. A lower down payment, and some seller assistance or seller paid closing costs will help you greatly. As experienced Chantilly VA buyers agents we can assist you in buying a home in the Chantilly VA area.

Chantilly VA Home Buyers Tax Benefits of Buying A Home

The United States IRS allows you to deduct mortgage interest on your home for the year the interest is paid. So if you have an amortized loan, an ARM or even and interest only loan the good news is that each month’s payment usually has interest paid as part of each monthly loan payment. At the end of the year, you will usually receive a statement from your lender showing you how much interest was paid on your mortgage loan for that year for tax purposes both Federal and state. This is a very substantial subsidy of home ownership.

Also, if you’ve owned and occupied this home in Chantilly VA as your principal residence for at least two of the past five years you can sell the home and keep up to $500,000 profit on the sale of that home and pay no federal income tax if you are married – and if you are single you are allowed up to $250,000 tax free. This is allowed every 2 years.

There are many advantages for homeownership, and for more information speak to your tax accountant, tax advisor, or contact us about buying a home in Chantilly VA.

Chantilly VA 20152

Selling a home is never about guess work and nor should it be if you are looking to buy a home in Chantilly VA 20152.  Chantilly VA home prices, homes sales, town homes, and price trends are always important to pay attention to.  Zip code 20152 is located in Loudoun County VA – Chantilly VA.  It is also where the subdivision South Riding is located.  The statistics below are the most recent and were published on April 10 2011 for homes sales in March 2011.  The homes sold statistics for Chantilly VA  listed in the chart below are very interesting.  Compared to the same time frame last year, total  dollar volume is down, prices are up, but sales are down.  The days on market compared to last year are basically a wash.  Not really much of a change at at.

Chantilly VA Home Sales March 2011

South Riding Homes for sale priced at $500000 to $600000. Find homes for sale in Loudoun County Virginia in close in Chantilly VA 20152 just over the Fairfax County border in Toll Brothers “South Riding” a new homes community $500K-$600K. Find listings of new homes, new homes ready for quick occupancy and closing, resale homes model homes and homes to be built.  Whether you are buying or selling a home in South Riding in this 500K or 600K price range, we can assist you as your listing agents, or new homes buyers agents in Chantilly VA.  Feel Free to search for your South Riding Dream home below.  Find homes with full finished basements, gourmet kitchens, granite counter tops, decks, two car garages, 4 Bedrooms, 3 full baths, and loaded with hardwood floors!  If you have any questions, please feel free to contact us!  It will be our pleasure to work with you!

South Riding Homes for Sale $500000 to $600000

South Riding homes for sale $400000 to $500000.  Searching for great homes in northern VA with a reasonable price?  You should be looking at homes and townhomes for sale in South Riding that are priced at $400K to $500K.  You can get a lot of home for the money, and South Riding subdivision is located in close in Loudoun County Virginia off Route 50 West just over the Fairfax County line.  It is only 24 miles west of Washington DC, and just south of Dulles International Airport and 3 miles west of Route 28.  South Riding is an incredible place to live.  As a Toll Brothers master planned community and subdivision development, South Riding has every thing to offer today’s home buyer.  It offers new homes, resale homes, town homes, single family detached homes, and some condos.  It is a fully contained swim, tennis, golf subdivision and community with police, fire, elementary, middle and high schools, shopping, restaurants, a Home Depot, and all located within the community!  What are you waiting for?  Start looking at homes for sale in South Riding for reasonably priced $400K – $500K.

South Riding Homes for Sale $400000 to $500000

Find homes for sale in the $300000 to $400000 price range the sought after South Riding subdivision that is located in Chantilly VA 20152.  Some of the South Riding homes for sale in the 300K – 400K price range will have a garage, or assigned parking places, and keep in mind that each unit is different and the MLS listings inventory changes all the time.  South Riding is a Toll Brothers new homes community with golf, swim, tennis, sidewalks, waking paths, recreation centers, shopping , schools , police and fire all contained within the South Riding subdivision.  For more information about buying or selling homes for sale in South Riding in the $300K to $400K price range, please fee free to contact us for more information.  It will be our pleasure to assist you as your South Riding real estate agents.

South Riding Homes for Sale $300000 to $400000

Search homes for sale in South Riding subdivision in Chantilly VA Priced from $200000 to $300000.  In this price range there will only be a few homes, and they will be townhomes or condos style homes as opposed to single family homes.  The South Riding subdivision is a great planned community and a fantastic place to live with swim, tennis, walking paths, shopping and schools and it is located in Chantilly VA just over the Fairfax County border in Loudoun County.  It is convenient to Braddock Road, Route 50, Route 28, Route 29 and Dulles Airport.  For more information about buying or selling homes for sale in South Riding priced at $200K to $300K, lease contact us.  It will be our pleasure to assist you as your Chantilly VA real estate agents.

South Riding Homes for Sale $200K to $300K

[Loudoun Homes for Sale ]  [Contact Us] [Free CMA]  

I compiled a list of single family fee simple detached homes that have sold in the South Riding subdivsion in Chantilly VA since hte first of the year.  There were 16 homes sold, and I included the average sales price and sellers contributions for the home sales to show you the net home sales price. This also include the average sales price, original list price, and List Price / Sales Price Ratios.  There may also be more home sales because not all new home sales are entered n to the MLS system.

If you are thinking of selling your own home and are interested in finding out what your home is worth and can be sold for, please do not hesitate to contact me.  It will my pleasure to assist you.

South Riding Home Sales Update*

*MRIS Listing Search 4/7/2011 Single Family Detached Homes for Sale Fee Simple Homes