Real Estate Information

On Monday's we discuss the various aspects of financing.  Today, mortgage advisor Corbin Hargraves with The Providence Group of VA shares with us some guidance regarding those old credit card accounts.

Be Cautious…

In today’s society as hackers become more advanced be very cautious when it comes to dealing with old credit cards that you keep open.  Traditional financial wisdom advises a consumer to keep older credit card accounts open especially if there is no annual fee because the longer the account stays up it will eventually add points to your credit score over time. This is because one factor in coming up with a credit score for all three bureaus (Experian/Equifax/Trans Union)  is “time or length of history of accounts established”.  So here are some tips on how to effectively manage older credit card accounts that you are not actively using:

• Cut up your old cards, but go a step further by using the following method. Slice the card into sections by using each set of four digits on the card as areas to cut the cards instead of just breaking the cards in half. Once cards are cut up, deposit pieces of the cards in separate trash bags for disposal.
• Burn them! Of course, one way to completely eliminate any chance of credit card or identity theft is to incinerate all card-related documentation. Now for all of my eco-friendly readers this is not necessarily the best thing for the environment, but if you are making a fire this winter it might not be a bad idea. 
• Use your credit card monitoring services, especially if they are little to no cost – Here is my personally testimony to this one.  Just over the weekend, I received an email from one of my non-active credit cards that stated a large purchase had been made on my account.  I immediately called the company, instructed them that not only was the purchase not authorized by me but I had not used the card in well over two years.  Within an hour and after doing some research on my account they credited back the amount, closed out that account, and provided a new account number.  They have begun proceedings into how this card was accessed.  So I am definitely a firm believer in card services!
• Lastly, always watch your accounts on a monthly basis. Even if you are not using the card, check the statements each month either via mail or the internet.  With the new CARD Act in place now, there are some significant changes in credit cards that could definitely impact you as a consumer.

To all of the readers, one of our great community partners Mr. Kevin Holt, real estate consultant, will be my special guest tomorrow on Money Matters on 92.7 Kiss FM at 8:30 am. Tune In!

As Always, Make it a Great Monday!

Information provided by:
Mr. Corbin Hargraves
The Providence Group of VA
1924 Arlington Blvd.
Suite 102
Charlottesville, VA 22903
Phone: (276) 724-0628
Email:  CHargraves1@gmail.com

On Fridays we test your knowledge of how well you know the Charlottesville area.  Think you know your way around Cville pretty well?  Okay, where am I in the picture below?

Are you asking where in Charlottesville that perfect house is for you?  Click HERE and we'll get started!

Very Well Said...

CAAR Market Report

2010 Third Quarter

Published by the Charlottesville Area Association of REALTORS®

Where Are We Now?

Overall, the pace of home purchases in the Charlottesville market area increased compared to last year at this time. In the first three quarters of 2010, area sales (2111) were up 3.6% from the same period in 2009 (2037).  Realizing the tax credit of earlier this year had an impact on our market, we are not far enough removed from the influence of that event on our area to draw any conclusions. But as it stands now, we are still showing an increase in sales activity year over year.

As reported in the CAAR Mid-Year Market report, that data had indicated a continuation of price stabilization. Our third quarter year to date numbers bear this out, showing mixed results depending on the county. For the entire area, the median price was down slightly (-.4%) compared to last year at this time.

Full Report:  2010 Third Quarter Market Report

On Thursdays we take a closer look at clauses that comprise real estate documents or discuss some scenario involving a real estate contract.    

This Thursday let's briefly touch on a subject that has recently been in the headlines a lot...foreclosures and one item in particular to monitor--time. 

In working foreclosures I have experienced an all and all pretty smooth and efficient process and I have experienced the complete opposite.  In counseling my Buyer clients I am always sure to educate them about this prior to them entering into a foreclosure contract.  The difficulty we can run into is a long delay between submitting a document to the bank and receiving their response.  As an example, say during the home inspection an item was noted that was significant (i.e.: structural problem, mold, etc.) that would most likely influence a Buyer's willingness to proceed in purchasing the property and/or their ability to get a loan if not addressed.  

A request in the form of an Agreed Repairs Addendum can be made to the Seller (bank) to address the issue.  It can happen where a response of whether or not the bank will fix the problem is received very promptly.  In this case, the parties are able to proceed accordingly.  However, here is the case where the Buyers Representative has to watch out for...where there is a significant delay in receiving a response from the bank.  Here, you want to watch the dates that have been written into the contract such as your loan commitment date.  If it happens where you are about to reach that date and still have not received the bank's response you will want to use what is called an Amendment to amend the contract, extending those dates.  Doing this and submitting it to the bank for their signature will make sure you, as the Buyer, are not in default.  

Questions about the above information, real estate contracts in general or have a suggestion for a Thursday Contract Chronicles...let me know! 

Curious about the market in your specific neighborhood or the possible market value of your home?  Check out PriceMyCharlottesvilleHome.com. 

"Hey Kevin, What are the first steps in the home buying process?"

It is quite common that when I am first contacted by prospective Buyers the very first thing they want to do is to go look at property.  This is understandable as Buyers can be really excited and anxious to go see what is out there.  However, unless you are an all cash Buyer there are two items I feel must be accomplished prior to actively looking at property.

The first is to schedule a Buyer-Counseling session with a Realtor who is a Buyers Representative.  Here, you want to discuss what your specific goals are such as the type of property you are looking for, commute issues, your timeline, etc.  You  want to make certain that the Buyers Representative has a crystal clear understanding of what your intentions are so that he or she can best serve you.  If you are new to the real estate process this is a time for the Realtor to educate you about what is involved in purchasing a property, including financing.

Right along with a Buyer-Counseling session you will want to get pre-approved for financing.  In other words, you want to confirm with a reputable lender what price range will work best with your budget.  The last thing you want to do is to go out and look at homes in the $400,000 price range only to eventually confirm you can only be pre-approved for a loan up to $275,000.  

Having knowledge of the home buying process, working with a Buyers Representative who has a clear understanding of what you are looking for and having been pre-approved for financing you are now ready to go shopping! 

The U.S. Department of Housing and Urban Development website presents a great plan of action for the home buying process.  If you have questions about buying real estate or would like to schedule a Buyer Counseling Session let me know!      

On Monday's we discuss the various aspects of financing.  Today, mortgage advisor Corbin Hargraves with The Providence Group of VA shares with us reasons to buy real estate even though the tax credits have expired. 

Service members might still receive tax credit under certain circumstances – Service members who were on official extended duty outside of the United States for at least 90 days between Jan.1, 2009 and May 1, 2010, may qualify for a one-year extension to receive tax credits.

Mortgage Interest Deductions – Owning your primary residence has certain tax perks & benefits. As long as your mortgage balance is less than the price of your home, then the mortgage interest is fully deductible. 

Interest Rates are at historic lows – With interest rates at historic lows for qualified buyers, it could make it less expensive to take out a 30 year fixed rate mortgage.  Also, if you already own a home and have equity, this would also be a great time to look at refinancing if you have a high interest rate.

Payment – Because of rates being at historic lows, there is a good possibility that you might end up paying less in a mortgage payment then you would in rent.  In a rent vs. buy comparison, there are some other factors you should take in consideration.  How long do you plan on staying in the area you will be buying a primary residence? Do you intend to sell the residence in a short term period (5 years or less)?  These items as well as your overall financial picture should be assessed before making such an important financial decision.

Appreciation - Although real estate moves in cycles, sometimes up, sometimes down, over the years, real estate has consistently appreciated. The Office of Federal Housing Enterprise Oversight tracks the movements of single family home values across the country. In a stabilized market, homeowners can typically expect to see appreciation of 2-3% annually.  With the annual appreciation in an upward market, plus reduction of loan balance over time this can lead towards equity in your residence.

Inventory Surplus – With a surplus of homes on the market this can drive the price of homes down, which can lead to some great deals for buyers.  Rise in the foreclosures have also contributed to the additional homes on the market.

100% financing is available again – For certain eligible buyers and in certain areas, 100% financing is available. There are certain requirements in order to meet this type of loan such as income restrictions, credit score, and property location. 

Make it a Great Monday!

Information provided by:
Mr. Corbin Hargraves
The Providence Group of VA
1924 Arlington Blvd.
Suite 102
Charlottesville, VA 22903
Phone: (276) 724-0628
Email:  CHargraves1@gmail.com

On Fridays we test your knowledge of how well you know the Charlottesville area.  Think you know your way around Cville pretty well?  Okay, where am I in the picture below?

Are you asking where in Charlottesville that perfect house is for you?  Click HERE and we'll get started!