Author Archives: lineartitleandescrow

What Are the Benefits of Mortgage Pre-Qualification?

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Mortgage Pre-Qualification

The purchase of a new home is equally an exciting and frightening endeavor. Exciting for the obvious reasons, but scary from a financial standpoint. Do you know how much mortgage you can handle, or how much you can reasonably expect to borrow? Getting pre-qualified for a home loan erases a good deal of uncertainty, giving you an accurate idea of your price range and solid ground when it comes to searching for your perfect home.

How Pre-Qualifying for a Mortgage Works to Your Advantage

What does it mean to be “pre-qualified?” With mortgage pre-qualification, a lender provides an estimate of the amount you could borrow, based on financial information you provide. (Note: This typically doesn’t involve submitting bank statements and tax documents, as in a pre-approval process.) Not everyone in the buying market seeks to get pre-qualified for a home loan. But if you’re a first-time buyer or have no general notion of how much you might qualify for, a mortgage pre-qualification is a smart idea.

Being pre-qualified for a home loan offers the following benefits:

  • Better Understand Your Goals. Having a general idea of the amount of home loan you can take on gives you greater insight into your financial position. This can help you determine if now is the right time to buy, or whether you should wait until you establish more secure financial footing.
  • Quick and Free. The mortgage pre-qualification process is often completed by phone or Internet. There is usually no charge associated with this service.
  • Early Understanding of Options. Having a general idea of your financial reach helps you narrow down and understand your mortgage options. The lender with whom you pre-qualify can review and explain the mortgage products that may be right for you.
  • Saves Time. When you look within your price range, you won’t waste time browsing properties beyond your budget.
  • Know Where to Start. Being pre-qualified gets you started in the right direction. Establishing a relationship with a lender who understands your personal needs and financial abilities is a great way to begin the home buying process.

Keep in mind, mortgage pre-qualification is just a general estimate of the loan amount for which you could potentially be approved. Being pre-qualified for a home loan in no way ensures you’ll be approved for a mortgage. Stay tuned for our next post, which compares and contrasts mortgage pre-qualification vs. pre-approval.

 

 

When Is the Best Time to Close on a Home?

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Best Time to CloseBuying a home is an exciting venture, whether it’s the first time or the fifth. It takes a certain amount of strategizing, from finding the perfect location to getting your offer accepted. Once approved for your home loan, the last step is to lock in your rate and count the days until your closing date. But when is the best time to close on a home? Is there a certain time that works more to your advantage?

Closing Date Comparisons

It’s largely assumed that closing on the last day or as close to the end of the month as possible is the best choice. However, this isn’t true for all cases. The following compares the benefits and drawbacks of closing at varying times within the month. Keep in mind the date on which you close affects when your first mortgage payment is due.

  • Beginning of the Month: Closing early in the month does require that you pay a good deal of interest for the remaining days of the closing month. But it also leaves you almost two full months before making that first mortgage payment. (For example, if you close November 4th, your initial loan payment is due January 1st of the following year.) The benefit is the substantial cost savings you’ll gain by not having to make a mortgage payment for nearly two months.
  • Middle of the Month: Closing between the 15th and the end of the month sets your first mortgage payment a full month out. (For instance, if you close between October 15th and October 31st, your first loan payment is due on December 1st.) You must take into consideration the amount of interest you’ll incur and be required to prepay during the closing month.
  • End of the Month: Closing towards end of the month ensures the amount of daily accrued interest you pay is minimized (for that month). This can add up to a significant savings in closing costs, when you consider paying interest on one to two days as opposed to 15 or more. Like the middle of the month example, your first mortgage payment would be due a full month out.

Consider the Circumstances

Many people prefer to close at the end of the month, to avoid paying additional interest. But bear in mind that the last few days of the month are the busiest times for lenders and title companies. Loans can often be pushed through more efficiently during slower times. The “funnel-effect” at the end of the month, at times, leads to closing date delays.

You may not have full control over which day your closing actually takes place. Certain factors may cause your closing to be delayed, and even moved into early days of the next month, depending on how the days fall. In such as case, you’ll pay more interest, but have nearly two months before you’re expected to remit your first mortgage payment.

Have questions on the closing process? The Linear Title & Escrow team is always here to help! Contact us today at (757) 340-0340.

 

What Goes Into the Appraisal Process?

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Appraisal

If you’ve ever bought or sold a home, or are currently in the process, the term “appraisal” is likely one with which you’re very familiar. An appraisal is a process that determines the fair market value of a home or property for sale. It’s also a crucial part of whether or not a lender decides to approve a home loan. If the appraisal comes back lower than the asking price, the loan request will likely be denied.

What Goes Into a Home Appraisal?

The lender is the party that orders the appraisal. An approved appraiser is contracted to complete the process, and visits the property to perform the assessment. A number of things factor into the final appraisal value of a property, such as the following:

  • Condition of interior and exterior portions of the home
  • Overall size of the home and lot
  • Age and location of the home
  • Square footage of each room
  • Number of bedrooms, bathrooms, etc.
  • Features, upgrades or improvements made to the home
  • Unique geographic aspects, like water-front, beach or mountain views
  • Comparable information (recent home sales in the neighborhood, zip code and surrounding area)

If the Appraisal Comes Back Low, Should You Spring for a Second?

Typically, the seller pays for the appraisal. However, some lender’s require the buyer to cover this cost. The seller wants the highest price possible, but the buyer also wants to be approved for the loan. If the appraised amount comes back off the mark, either party has the opportunity to order a new appraisal, at their own expense. According to HomeAdvisor.com, the national average cost of a home appraisal is currently $316. (The average for the Hampton Roads area is a bit higher, at around $450.)

Appraisals are an integral part of the home buying and selling process, and almost always required for residential real estate transactions.

Have a question about a real estate transaction or the closing process? Contact the Linear Title & Escrow team today at (757) 340.0340!

 

 

 

 

5 Easy, Inexpensive Ways to Improve a Property’s Curb Appeal

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Curb Appeal

Curb appeal. A term taken mainstream largely by a slew of HGTV home improvement shows over the past decade or so. That’s not to say that property owners previously failed to consider the importance of outward appearances when it comes to owning a home. Perhaps the market-driven economy since the turn of the century has engendered more of a need for our homes to look appealing from…well, from the curb.

Whether looking to spruce up the exterior portions of your property for your own contentment or wanting to ensure your home is in tiptop shape for its debut on the MLS, improving curb appeal doesn’t have to be too difficult, or expensive. We’ve put together a list of five easy ways to enhance the exterior appeal of your home – that won’t break your back, or the bank.

5 Simple Ways to Do A Lot With a Little

  1. Update the Entryway. Often the focal point of a home, the front door should be welcoming and inviting. Reframing the door, replacing the door handle and flanking your entrance with sturdy plants can go a long way in adding charm and appeal to your home.
  1. Add a fresh coat of paint. Nothing gives a home a facelift like a new coat of paint. Add accent colors to your front door, garage door, shutters and even window trim to completely transform the look of your home.
  1. Rejuvenate with landscaping. Remove dead, unhealthy shrubs, trees and flowers, and replace with fresh, vibrant plants and trees that add color, warmth and interest to your property. Plan out how to fill your space first, though, so your landscaping doesn’t appear haphazard, unorganized or as an afterthought.
  1. Enhance appearance with landscape lighting. Your property may look great in the daylight, but what about once the sun goes down? Strategically placed landscape and up lighting can do wonders for giving your home a regal appearance.
  1. Pressure wash, and seal the driveway and walkway. Dirt, grime, mold and a whole host of other unpleasant materials tend to collect on driveways, walkways and porches. Pressure washing away this collection leaves behind a fresh, like-new surface that can really complement the home. Sealing once completely dried helps protect these passageways into the home, keeping them cleaner in the long run and giving them an eye-pleasing sheen that lasts.

You don’t have to invest much to refresh and rejuvenate your property’s appearance. Be creative, be inspired and be ready to move when that offer comes in.

 

 

 

 

 

How to Expedite the Closing Process

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Closing on a new home is one of the most exciting things consumers have the privilege of doing. After months of searching for the perfect place, submitting an offer and negotiating terms of the sale, the time to closing can seem like an eternity. While this procedure may seem arduous, and at times emotionally taxing, there are a few things you can do to expedite the closing process.

closing-process

5 Tips for Streamlining Settlement

When purchasing a new home or even refinancing your current property, keep the following tips in mind for the most efficient, expedited closing possible:

  • Complete pre-approval process and loan application promptly. The sooner you submit your application to the loan officer, the faster you can get the ball rolling on the closing process. Ensure the information you provide on your application is accurate, though, or else you will experience a delay.
  • Have all required paperwork gathered in one location and ready to go. This includes important documents like pay stubs and proof of other income sources, W-2’s, tax returns for the previous two years and all bank statements. The settlement process is often delayed due to waiting for all necessary paperwork and information be submitted; this inevitably lengthens the time it takes for loan packages to be completed, and ultimately time to close.
  • Request a home appraisal as soon as possible. This is contingent upon getting all required documentation for your loan application submitted as quickly as possible. Once this occurs, your loan officer can initiate the appraisal request.
  • Stay in constant communication with your representative. Remain active in the communication process by frequently checking in with your agent. It’s also crucial to reply to inquiries about your loan as soon as possible, providing a quick response to phone calls, letters, emails and requests for additional information.
  • Be available to sign the Closing Disclosure (CD) form 3 days prior to settlement. Be aware, this document is submitted via email and signed electronically. The longer you wait to sign, the more time accrues until that closing day. Keep a close watch on your email account so that this step can be completed as early as possible.

Linear Title & Escrow has been providing settlement services to the Greater Hampton Roads area for the past 10 years. We take great pride in providing a streamlined, efficient and highly professional closing experience, and look forward to serving the needs of our community for many years to come. Learn more about how to expedite your closing process by contacting our friendly, experienced team today at 757.340.0340.

 

 

 

How Much Are Home Renovations Really Worth?

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renovations

Home renovations are commonly regarded as a way to render a property more appealing to buyers, and potentially even up the asking price. But what type of (realistic) return on investment can you expect? Due diligence with respect to research in your particular market will reveal the “true value” of popular home renovations, and help you determine if such projects are worth the effort.

Risk vs. Reward in Home Renovations

For the past 30 years, Remodeling Magazine has generated annual Cost vs. Value Reports, comparing ROI for a number of remodeling projects. A quick glance below gives insight into those most popular and the renovations rewarding the highest returns, as determined by Remodeling Magazine’s Cost vs. Value Report for 2017. (Keep in mind, the information presented here is a national average. A bathroom remodel in Boston, Massachusetts, will cost considerably more than one in Tulsa, Oklahoma, for example.)

Project                                                             Cost/Resale Value                  ROI

Popular Home Renovations

 Bathroom Remodel                                        $18,546/$12,024                    64.8%

Kitchen Remodel (minor)                              $20,830/$16,699                   80.2%

Basement Remodel                                          $71,115/$49,768                    70.0%

Wood Deck (addition)                                      $10,707/$7,652                     71.5%

Roof Replacement                                            $20,664/$14,214                   68.8%

Backyard Patio                                                   $51,985/$28,546                    54.9%

 

Renovations With the Highest Returns (Above 75.0%)

Fiberglass Attic Insulation                             $1,343/$1,446                       107.7%

Entry Door Replacement (steel)                   $1,413/$1,282                         90.7%

Manufactured Stone Veneer                          $7,851/$7,019                        89.4%

Kitchen Remodel (minor)                               $20,830/$16,699                  80.2% 

Entry Door Replacement (fiberglass)         $3,276/$2,550                        77.8%

Siding Replacement                                         $14,518/$11,093                     76.4%

Garage Door Replacement                              $1,749/$1,345                        76.9%

 

Though updating or remodeling may be crucial to selling a home, it’s always prudent to know what type of return you can expect on your investment. Maximize your ROI by committing to quality, and having a good idea of what potential buyers are looking for in their dream home.

How Has Tighter Industry Regulation Changed the Home Buying Process?

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home-buying-process

In place for over a year now, the TILA-RESPA Integrated Disclosure (TRID) rule set forth by the Consumer Financial Protection Bureau has certainly impacted the process of buying real estate. The intent of tightening regulations within the mortgage industry was meant to streamline and simplify the process for home buyers, while reducing the paper count and confusion of residential real estate purchases in previous years.

Here’s a closer look at how stricter regulation in the mortgage industry has affected the process of buying a home.

From the Home Buyer’s Perspective

  • Changes to settlement forms. Lenders are now required to provide more detailed, thorough information surrounding the mortgage loan to home buyers prior to closing, which is largely accomplished through the Closing Disclosure Form (replacing the HUD-1). Such changes better enable consumers to understand their risks and costs associated with taking on a mortgage.
  • Enhanced awareness of mortgage terms. Though the pre-approval process is relatively the same, borrowers are now more aware of the terms of their mortgage, generating less confusion and fewer surprises at the closing table. TRID mandates that home buyers receive a copy of the Closing Disclosure Form for review at least three days prior to closing.
  • Time to settlement. With TRID, the timeframe between contract and close has increased slightly, though overall, no major impact has been experienced. In general, purchasers have fewer questions at the closing table resulting from enhanced understanding of mortgage details.

Thanks to TRID, the explanation and interpretation of often complicated mortgage information has rendered residential real estate purchasers better informed about their mortgage responsibilities. In fact, all parties involved in the real estate transaction now typically experience a congruence throughout the process, right through to the day of closing. For questions or concerns regarding real estate settlement, contact Linear Title & Escrow at (757) 340.0340 today.

 

Working “You Time” Into Your Busy Schedule

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vacation-picMost of us like to be productive in the workplace, in our careers and even in our responsibilities at home. But are we taking the appropriate amount of time out for ourselves? According to Project: Time Off, many Americans leave vacation days unused, often to be forfeited without rolling over or converting to additional pay and other benefits. A key 2015 study by Project: Time Off found that 55 percent of U.S. workers failed to take all allotted vacation time. Reasons for this varied from financial concerns to worry over appearing replaceable in the eyes of the company. A number of us, it seems, struggle with balancing job dedication and taking time away to kick back, relax and enjoy life – even when our companies give their blessings.

For Health’s Sake, Take Time Off

Using those hard earned vacation days does far more than fill your phone, iPad or computer with fond memories of far away places enjoyed with loved ones. Some research studies suggest that taking time away from work (to actually enjoy yourself, not do more work) may have positive effects on your physical and mental health. Such effects include:

  • Reduced risk of coronary heart disease
  • Decrease in stress
  • Less chance of depression
  • Enhanced productivity levels
  • Improved attitude towards life
  • Greater job satisfaction

The Proof Is in the Planning

Not only does taking a much needed break from work every now and then create a positive ripple in your personal and professional lives, the joyous anticipation of such an event initiates happiness in the days and weeks leading up to your vacation. We all get busy, caught up in our day-to-day routines, meeting those monthly and quarterly objectives, and trying to make it from one stage in our careers to the next. However, vacation days left on the table do your health (and your psyche) no good. You’ve earned them, folks – by all means, use them!

 

Sources:

 http://www.projecttimeoff.com/resources/executive-summary/vacations-impact-workplace-executive-summary

http://psycnet.apa.org/journals/apl/82/4/516/

Click to access vacations_health.pdf

https://www.healthnet.com/portal/home/content/iwc/home/articles/health_benefits_of_vacations.action

Thriving in the Digital Age

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thriving

The real estate business relies heavily on in the know, in the NOW information – content that is instantaneously retrievable. In today’s technology era, the information you and your clients needs is available faster than ever before, and right at your fingertips. The “on-the-go” environment to which current society insists we acclimate is in large part, a major piece of the broad digital landscape. To ignore this fact or wait for information to find you is leaving money on the table – literally.

Are you using the latest technology to stay ahead of the competition, or is ever-changing technology leaving you in the dust?

Are You Thriving in the Digital Age?

Whether tech-savvy or tech-challenged, we must all embrace not only the application of technology to how we reach, conduct and manage our business, but the accelerated speed at which it moves. Just when you get the hang of one app, the-next-best-thing is already in place, promising greater efficiency and more efficacious results. To help you stay ahead (or at least hang with) the game, we’ve compiled a few of the latest and greatest tech buzz bits relevant to the real estate business:

  • Social Media Management. Though around for a while now, social media managers and tracking platforms are typically on the forefront of how to best reach your current audience as well as new clients through a multitude of social media outlets. Hootsuite™, sproutsocial and buffer are three highly rated companies offering the tools you and your team need to successfully plan and manage your social media marketing campaigns.
  • Apps, Apps and More Apps. Apps are designed to make your life easier and business more efficient. Aside from learning to use the staples (Instagram, Facebook, Snapchat, etc.) to an even greater extent, downloading others like Real Scout, BombBomb™ and curbcall can facilitate and help you grow your business. Run an Internet search to learn more about the latest apps and what is working for others in the industry.
  • Virtual Reality. Far more than just a gift you may have placed under the tree this past year, VR technology has made its way into the real estate sphere. Companies are eliminating the distance barrier for home buyers, as several are now offering VR and 3-D viewing experiences from the comfort of, well, anywhere.
  • “Alexa, find me a new home.” Changing the face of shopping and information retrieval, Amazon’s Echo and other virtual assistants are just the next step in reaching clients. Of course, creating the customization for the Echo dot and similar devices will likely require the help of a web developer, but this is certainly an area to watch (and engage with, if able).
  • (Big) Data Analysis: Analyzing the exorbitant amount of data relating to a business on any given day is a lofty task, at best, even for smaller real estate firms. From shopping patterns and financials to insurance and risk assessment, information gleaned from data analytics provides intel on the how, why, when and where of clients’ decision-making, helping organizations optimize their reach and better engage with, service and retain business – now and into the future.

However you choose to apply the latest technological developments, one thing is certain: We all work to serve our clients, in the best way possible. Choose what platforms works for you and your business, but by all means, do not get left behind.

2017 Housing Market Looks to Sustained, but Slower Growth

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pexels-photo-243722

With another year of ups and downs logged in the books, many have made predictions detailing what 2017 has in store for the housing market. In what position did 2016 leave us? Notable to last year:

  • Mortgage rates dipped below 4.0% early in the year, only to catapult beyond 4.0% following the presidential election.
  • A larger number of millennials jumped onboard with the home buying process.
  • The country saw a decrease in the unemployment rate, coupled with an increase in earnings.
  • Low housing inventory remained a concern, especially in first-time homebuyer markets.

How 2017 Will Play Out, According to Experts

 Though decelerating in rate compared with recent years, the 2017 housing market is expected to experience an upward trend in growth. Factors determined to influence this growth trend include:

  • Demand for housing steadily on the rise. The Millennial and Boomer generations are slated to take the lead in buyer demographics.
  • Slow, but steady, uptick in housing prices. A pricing increase is anticipated thanks to low inventory and modest growth expected in the U.S. economy. Prices, however, are expected to be a full percentage less than that of 2016.
  • Increase in sales early on in the year. The threat of rising interest rates will likely catalyze people into buying during the year’s first quarter, a period typically seeing a dip in sales.

What Factors Have Experts Concerned?

The overall consensus seems to be a positive outlook for an upward trend, but there are a few factors that many agree will affect the growth pattern for 2017:

  • Volatility in mortgage rates. The Fed has hinted at three rates hikes to be implemented throughout the year.
  • Decline in new and existing home sales. Though not expected to drop dramatically, a decline in sales from 2016 is expected, thanks to rising mortgage rates.
  • Inventory shortage in lower-priced brackets. Many first-time home buyers may experience difficulty in finding affordable housing.

Wherever we land at the end of 2017, we think it’ll be a year of growth, positive outcomes and potentially even a lesson in patience. For questions or expert assistance with your real estate settlement needs, contact Linear Title & Escrow at (757) 340-0340 today.

 

Sources:

http://research.realtor.com/2017-national-housing-forecast/

http://www.forbes.com/sites/samanthasharf/2017/01/03/housing-outlook-2017-eight-predictions-from-the-experts/#4674574e1ce2

http://www.kiplinger.com/article/business/T019-C000-S003-housing-market-forecast-housing-starts-home-sales.html

http://www.bankrate.com/finance/mortgages/housing-trends-5.aspx