A credit score is a number that helps lenders predict how likely you are to make your payments on time. This score affects your ability to obtain credit and helps determine what you pay for credit cards, auto loans, and mortgages on Virginia Beach real estate. Even your insurance rate is related to your score. The higher your score, often referred to as a FICO score, the more apt you are to be approved for and pay a lower interest rate on new loans.
What do the numbers mean?
FICO scores range from 300 to 850, with most people scoring in the 600s and 700s, and are generally rated from excellent to very bad.
Above 800 is considered excellent. This rating reflects that fact that you pay bills on time, have a strong credit history, and have not filed for bankruptcy. You use your credit responsibly.
Between 750 and 800 falls into the very good category. You are considered a very low risk because of your history of paying bills on time and acting responsibly.
Between 700 and 750 puts you in the low risk range. You my have missed some payments in the past, but you current record is good. You do not have an excessive amount of credit card debt.
Between 650 and 700, or fair, means you are a moderate risk. Your credit history may include older negative items, too many recent applications for new credit, or a higher than normal credit card debt. Read the rest of this entry »
The Home Buyer Tax Credit was set to expire last month, but because of the high number of buyers who purchased homes by the April 30th deadline but were unable to close on their Virginia Beach real estate, Congress has extended the closing date to September 30, 2010. Apparently, the demand to close by June 30th was greater than expected, thus overwhelming mortgage lenders. In addition, short sales and foreclosure purchases require more time to process, and as their number increased, so did the backlog of closings. The National Association of Realtors estimates that at least 180,000 home buyers were unable to settle by the June deadline and thus missed the opportunity to receive the tax credit.
So what does this mean for you? If you purchased your Virginia Beach real estate by the April 30th, you now have until September 30th, 2010, to close on your property. (Note: the new legislation applies only to those who did so. The purchase deadline was not extended.) Other than date changes, the terms of the original program still apply, allowing tax credits of up to $8000 for first-time buyers and $6500 for repeat buyers.
Included in the current bill are special provisions for members of the U.S. military forces, the foreign service, and the intelligence community. For those who fall into these categories and have been ordered on an extended (90 days or more between after December 31, 2008, and before May 1, 2010) tour outside the United States, the new extension allows for a binding contract to be in place on or before April 30, 2011, and a closing to take place on or before June 30, 2011. In addition, a person who is forced to return to the U.S. for medical reasons before completing the 90 day tour may qualify for a one year extension.
Why would you refinance your Virginia Beach home mortgage at this time? For many reasons. Refinancing now can allow you to:
1. Lock in a lower interest rate
2. Reduce your monthly mortgage payment
3. Extend (or reduce) your repayment time
4. Help you pay off high interest debts
5. Free up money for investments, home repairs, or making your home more energy efficient
Since interest rates hover around all-time lows, anyone carrying a higher rate interest loan or an ARM will benefit from refinancing; just a .5 or 1 point drop in rate constitutes worthwhile savings. Even if the ARM on your Virginia Beach home is lower than the current rate, when rates rise again, your costs will certainly go up, perhaps dramatically. Refinancing to a fixed-rate mortgage now allows you to lock in a low rate for the duration of your loan. Do be aware, though, that lenders generally charge a risk premium for fixed mortgages.
If you, as a Virginia Beach home owner, want to shorten the length of time required to pay off your loan, you may want to consider refinancing to a 15-year fixed-rate mortgage with even lower interest rates. This move will increase your monthly payment, but you may save hundreds of thousands of dollars in the long run.
At a time when house foreclosures are on the rise, beleaguered and vulnerable property owners who are at risk of losing their Virginia Beach homes are increasingly the targets of unscrupulous con-artists offering fast and false solutions.
These individuals/companies contact their unsuspecting prey in person or by mail, phone, or email. They advertise their services in all forms of media and far too often appear legitimate. They promise foreclosure prevention/rescue programs and sometimes seem to have government connections. At-risk owners of a Virginia Beach home must beware of the following scams as set forth by the Office of the Comptroller of the Currency:
Foreclosure “rescue” and refinance fraud. The scam artist offers to act as an intermediary between you and your lender to negotiate a repayment plan or loan modification and may even “guarantee” to save your home from foreclosure. You may be told to make mortgage payments to the scammer directly — along with significant, up-front fees — and be told that the scammer will forward the payments to your lender. In reality, the scammer may pocket your money and leave you in worse shape on your loan. The scam artist also may tell you to stop making payments or stop communicating with your lender. Don’t follow that advice.
Bankruptcy scams. You may have heard that filing bankruptcy will stop a foreclosure. This is true — but only temporarily. Filing bankruptcy brings an “automatic stay” into effect that stops any collection and foreclosure while the bankruptcy court administers the case. Eventually, you must start paying your mortgage lender, or the lender will be able to foreclose. Bankruptcy is rarely, if ever, a permanent solution to prevent foreclosure. In addition, bankruptcy will negatively impact your credit score and will remain on your credit report for 10 years. Read the rest of this entry »
Choosing between a 15-year mortgage and a 30-year mortgage can be a difficult decision, one which will have a major financial impact on your life. On the one hand, the 30-year mortgage will have lower monthly payments, but you will pay a higher rate of interest. On the other hand, a 15-year mortgage requires higher monthly payments (at a lower interest rate), but your Virginia Beach real estate will be paid off in half the time.
In order to decide which of the two is better for you, you need to carefully analyze your life situation in the following areas:
1. Current Financial Situation
Can you presently afford to pay the higher monthly payment of a 15-year loan on your Virginia Beach real estate? In addition to income, factor in other expenses such as credit card debt, car payments, food, clothing, and entertainment. As a guiding principle, your total housing expense should not exceed 40% of your gross monthly income minus taxes. Beware of becoming house poor and having few liquid assets. It is essential that you have a hefty nest egg to rely on I n case you lose your job or are unable to work.
2. Spending Habits
If you choose a 30-year mortgage, what will you do with the money you save each month?
Will you save/invest it? Put it in a retirement or college fund? Can you live on a budget, avoid credit card debt, and save regularly? If so, then the 30-year loan may work well for you. If, however, you can afford the higher payment and will most likely “fritter away” any extra money, you just may be better off borrowing for 15 years.
HAFA provides incentives to families to take advantage of selling their Virginia Beach home by means of a short sale (the home is sold for less than the value of the loan), or a deed-in-lieu of foreclosure (the home owner voluntarily gives the deed to the lender.
HAFA helps families quickly sell their Virginia Beach homes by giving them pre-approved short sales terms before listing the property. They are fully released from future liability for the first mortgage debt, and can receive $1,500 for borrower relocation assistance. HAFA also allows investors and servicers to receive financial assistance for administrative costs, processing fees, etc. The program sounds simple, but is actually quite complex with many guidelines and rules. HAFA officially began on Monday, April 5, 2010 and will end on Monday, December 31, 2012.
Here you can watch ‘An Animated HAFA Story’, an informative video explaining HAFA…
I am a Certified Distressed Property Expert (CDPE), trained in helping families in distress avoid foreclosure. Are you or someone you know behind on mortgage payments? You do have options! A short sale may be what is needed to save your, your family and your credit. Please contact me anytime for a private consultation.
Although the terms pre-qualification and pre-approval are often used interchangeably, the two differ greatly in the process involved in obtaining them and in the benefits they provide when buying a Virginia Beach home. Here’s what you need to know about each of them:
Pre-qualification:
This is a lender’s informal way of estimating how much you may be able to borrow. It is based on the information you provide (often by phone), none of which needs to be verified or documented. Since a letter of pre-qualification gives you an idea of how much house and the amount of mortgage payments you can afford, the best time to get pre-qualified is as soon as you decide you want to buy a Virginia Beach home.
You supply to the lender unverified information about your income, assets, debts, and possible amount of a down payment. There is no cost involved in obtaining pre-qualification, and there is no commitment for either party. Understand, however, that a letter of pre-qualification does not mean you will get a loan; it is simply a ballpark figure of the amount you can afford to spend on your Virginia Beach home and an indication that you might qualify for a mortgage in that amount.
DEADLINE: April 30, 2010 (June 30th with a signed, binding contract).
ELIGIBILITY: First-time buyers and repeat buyers (those who have owned and lived in one residence for 5 consecutive years of the last 8).
INCOME LEVELS; $125,000 individual and $225,000 for couples.
PURPOSE Allows Virginia Beach home buyers to receive a tax credit (which may be claimed on this year’s taxes) of $6500 to $8,000.
***Remember that a tax credit is a dollar-for dollar reduction in what a taxpayer owes. If the credit exceeds the amount owed, a refund will be issued.
That’s right, Tax Day is almost here and given the state of the economy, saving every penny is very appealing. As an owner of Virginia Beach VA real estate there are many deductions and tax credits you will want to take claim on your 2009 return…provided you qualify of course!!
Here are a number of money-saving ways to reduce the amount of tax you owe–or even increase the amount of your refund!
First, let me explain the difference between a tax deduction and a tax credit. A tax deduction reduces (adjusts) your taxable income.A tax credit reduces your tax dollar for dollar. You do not have to itemize deductions to claim a tax credit.
For you, as for most Americans, your Virginia Beach real estate is your largest and most important investment. Homeowners insurance, required by mortgage lenders, protects you from losing the value of your home if disaster strikes and enables you to repair or rebuild the structure. It covers damage to your home (real property) and your personal belongings (personal property) for the hazards specified in your policy. It also covers your liability for any injuries and property damage that you or your family members (including pets) cause to other people.
Types of homeowners insurance:
HO-1 is very basic coverage, insuring against fire or lightening damage
HO-2, called “broad coverage,” also covers loss of or damage to property resulting from windstorm or hail, theft, explosion, smoke damage from vehicles and aircraft, glass breakage, removal of property endangered by covered peril such as fire, vandalism, malicious mischief, and riot or civil commotion. HO-2 also covers building collapse, freezing of or accidental discharge of water or steam from within plumbing, heating, or air-conditioning, falling objects, weight of snow, ice, or sleet, and rupture or bursting of steam or hot water heating system
HO-3, called the “special” form, insures your home and detached structures against loss or damage from any peril except for those specifically excluded in the policy. This is the policy most homeowners purchase. It is important for you to read your policy carefully to see what is excluded—you may want to cover exclusions with special endorsements. Read the rest of this entry »
The Butler Team
RE/MAX Allegiance
505 S. Independence Blvd. #111
Virginia Beach, VA 23452
PH: 1-757-490-7300 ext 550
TOLL FREE: 1-866-222-0158 ext 550
Email: info@butlerteamhomes.com
Above 800 is considered excellent. This rating reflects that fact that you pay bills on time, have a strong credit history, and have not filed for bankruptcy. You use your credit responsibly.
process, and as their number increased, so did the backlog of closings. The 
2. Reduce your monthly mortgage payment
be told to make mortgage payments to the scammer directly — along with significant, up-front fees — and be told that the scammer will forward the payments to your lender. In reality, the scammer may pocket your money and leave you in worse shape on your loan. The scam artist also may tell you to stop making payments or stop communicating with your lender. Don’t follow that advice.
debt, car payments, food, clothing, and entertainment. As a guiding principle, your total housing expense should not exceed 40% of your gross monthly income minus taxes. Beware of becoming house poor and having few liquid assets. It is essential that you have a hefty nest egg to rely on I n case you lose your job or are unable to work.
This is a lender’s informal way of estimating how much you may be able to borrow. It is based on the information you provide (often by phone), none of which needs to be verified or documented. Since a letter of pre-qualification gives you an idea of how much house and the amount of mortgage payments you can afford, the best time to get pre-qualified is as soon as you decide you want to 
INCOME LEVELS; $125,000 individual and $225,000 for couples.
Here are a number of money-saving ways to reduce the amount of tax you owe–or even increase the amount of your refund!
Types of homeowners insurance:
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