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Are You REALLY Ready to Buy? 9 Pros and Cons of Buying a House

Weigh the pros and cons of buying a house before jumping into the real estate market. Raise your hand if you’ve found yourself running the following dialogue loop in your head when trying to decide if you’re really (really) ready to buy a house. Homeownership is a never-ending time and money suck. But renting is like throwing your money down the drain. And, hey, you’re young! Why tie yourself down with a house? But other people your age own homes — shouldn’t you own a home by now? (And repeat.) Stop the one-sided, one-way conversation in your head and read these pros and cons of buying a house to decide what’s right for you. Pro: Ability to customize Hate the chintzy cabinets in your kitchen? Dying to turn that laminate countertop into a solid piece of granite? As a renter, you have limited ability to customize your surroundings. As a homeowner, you can make your home your canvas. Paint the walls, knock down a wall, create your dream kitchen — no one can tell you what you can or cannot do to your home. No one but yourhomeowners’ association, that is. Pro: Freedom to live how you want Want to foster dogs, own five cats, and have tunnels for your gerbils to navigate through your rooms? Go for it. Want to host a cookout on your deck? Start up the grill. As a renter, you’re subject to your landlord’s rules about pets, outdoor spaces, and other lifestyle choices. As an owner, you can do almost anything, as long as it’s legal and you don’t disturb the neighbors. Pro: Financial perks  Owning a home can help you build equity. You can also write off mortgage interest at tax time, get tax credits for certain improvements (such as energy-efficient windows), and turn your unused rooms into rental units for extra income. Pro: Fixed monthly payments  As long as you’re on a fixed-rate mortgage, your mortgage payments will remain steady (although in some cases, they could go up). But long term, as inflation kicks in, you’ll repay your mortgage in cheaper dollars over time. If you’re a tenant, unless you live in a rent-controlled area, your landlord can increase your rent anytime your lease is up for renewal. And if your lease is month-to-month, your landlord could legally raise the rent every 30 days. Still not sure which is the better decision financially? Try Trulia’s rent vs. buy calculator to get an objective second opinion. Con: Less flexibility If your circumstances or preferences change, you no longer have the flexibility to move quickly. As a renter, if you lose your job, realize you hate your neighborhood, or decide to move in with your significant other, you can move as soon as your lease expires (or plunk down whatever cash is necessary for an early lease termination). If you own a home, by contrast, you’ll have to endure extensive additional expenses, hassle, and stress to sell (or rent out) your home before you can move to your next spot. Con: Limited access to amenities When you move to a house, you may not be able to access top-quality amenities you were used to as a renter. You may be saying goodbye to that on-site gym and swimming pool and the valet trash service. Con: More responsibility As soon as a home is in your name, the maintenance and repair hassles are now your responsibility. That leaky faucet will no longer be magically fixed for you while you’re at work, and you’ll have to start making time to mow the lawn in the summer and shovel snow in the winter. Con: More financial pressure  Owning a home is a long-term financial responsibility. If you’re a renter and you’re hit with a financial hardship, you can move into a less-expensive rental. As a homeowner, you’re stuck with your mortgage (or you can try a refinance). If the idea of paying a mortgage for 15 to 30 years makes you hyperventilate, you’re probably not ready for homeownership. Con: Costly surprises As a homeowner, you face a lot of potentially expensive surprises, such as a roof that suddenly starts leaking or a sump pump that fails and lets your basement flood. As a renter, your biggest potential surprise expense is a rent hike when your lease is up for renewal — and if you don’t like the proposed rent increase, you can negotiate or move. So how do you know if you’re really ready to buy? In addition to the lifestyle factors listed above, take the time to thoughtfully answer these five questions. Where do you see yourself in three to five years? How long do you plan on living in the same town? How stable is your job? Can you afford a home you can “grow into” in the next decade? Are you prepared to sink a large amount of money into purchasing and maintaining a home, or do you have other financial goals you’d rather focus on?

Samantha Mason

Samantha Mason

 

Recap of July's economic news

Sales of new homes rebounded, as did consumers’ outlook on the economy, and lay-offs saw a decline. 

New Home Sales 

New home sales enjoyed a return to positive performance, with sales of new single-family homes in July hitting an annual rate of 507,000, according to last week’s joint report from the Census Bureau and the Department of Housing and Urban Development. This rebound was 5.4 percent over June’s performance and was 25.8 percent higher than July 2014’s performance. All told, July’s sales marked a seven-month high. 

New homes sold in July had a median sales price of $285,900, and an average sales price of $361,600. In terms of inventory, the estimated number of new homes for sale at the end of July was 218,000, which represented a 5.2-month supply at July’s sales rate. Economists continued to highlight the fact that housing inventory needed to increase in order to contain prices and shore-up sales volume.

"Inventory is expanding relative to year-ago levels in each region of the country, particularly in the Northeast,” wrote IHS Global Insight Economists Patrick Newport and Kristin Reynolds in a public report. “But new home inventory is still relatively tight, especially relative to existing single-family home inventory.”

Consumer Confidence 

New home sales weren’t the only economic metric to see a turnaround. The Conference Board reported last week that its Consumer Confidence Index for August grew to 101.5 from 91 in July (a baseline of 100 was set in 1985). This was the index’s highest score since January 

The Present Situation Index, which measured how consumers feel about current economic conditions, grew from 104 in July to 115.1 in August. The Expectations Index, which gauges how respondents feel about the economy’s short-term prospects, improved to 92.5 from 82.3 in July. 

Notably, The Conference Board reported that consumers were more positive about the job market, with those declaring that jobs were “plentiful” growing from 19.9 percent in July to 21.9 percent in August, and those claiming jobs were “hard to get” declining from 27.4 percent to 21.9 percent. 

“If this upbeat sentiment is sustained, then it could potentially provide a strong platform for a sustained upswing in consumer spending activity, which could provide a strong tailwind for the economic recovery going forward,” TD Securities Deputy Chief Economist Millan Mulraine told the New York Times

Initial Jobless Claims 

Speaking of the job market, lay offs were down, with first-time claims for unemployment benefits filed by the newly unemployed during the week ending August 22 dropping to 271,000, a decline of 6,000 claims from the preceding week’s total of 277,000, the Employment and Training Administration reported last week.

The Administration’s four-week moving average, considered a more stable measure of lay-off activity, notched up to 272,500, an increase of 1,000 claims from the prior week’s average of 271,500.

Katherine Farber

Katherine Farber

 

Millennials and Home Buying

Homebuying Millennials             Who is in the next up-and-coming block of first-time homebuyers? It’s Generation Y, the Millennials, born between 1980 and 1995. Until recently most stories involving Millennials and homebuying discussed how this age group was staying away from the housing market, but a March report from the National Association of Realtors found that they are now the biggest group of homebuyers, at 32% of all buyers. 

The Government Wants People to Buy Homes 
And to encourage that, they’ve made it a bit easier to do so. Fannie Mae and Freddie Mac offer a 97% LTV program for first-time buyers — that means only a 3% down payment, and that money can come from a gift. 
The 3% down program is now in competition for clients with the FHA’s 3.5% down payment program. This is actually a long-standing offer for first-time buyers, made sweeter this year by the reduction in annual mortgage insurance premiums, ultimately making homebuying less expensive. Plus, FHA loans accept credit scores as low as 580 (and possibly lower, for a higher down payment). So there are several programs for Millennial first-time homebuyers to choose from. 

But What Do Millennials Want in a Home? 
Location, location, location. The location of the home can be almost more important than the features of the home itself. These twenty- to early thirtysomethings consider the home’s neighborhood and its proximity to their place of employment to be just as critical as the number of bedrooms. Consider both walkability and access to public transportation when working with this group. 

Less space but the right space. Bigger is not better; many Millennials spend little time actually in their homes, which means a smaller property is just fine for them. Because of this, it’s important that spaces in the home have multifunctional purposes. Smaller spaces are also easier to repair and keep clean, which works well with this generation’s desire to minimize upkeep and spend more time enjoying life. 

It’s not forever. Millennials aren’t getting attached to homes like older generations did; they look at them as a stepping stone and an investment. They don’t plan to stay in the home they’re buying now for more than five to seven years, in most cases (think repeat customer!). A first home is a chance to increase their credit scores and build their borrowing profile for the next property purchase. To these young homebuyers, a home is an investment: Keep this in mind as you work with your clients. 

In a Nutshell 
Lower credit scores and less cash for a down payment, but a high motivation factor and a willingness to start small and buy up over time are the general characteristics of the Generation Y homebuyer. Of course, another characteristic of this group is its dislike of being pigeonholed or profiled, so in order to succeed with this clientele, you need to be flexible and able to keep up with changing tastes and technology.  Content of this blog post was provided by movement mortgage.   

Katherine Farber

Katherine Farber

 

Wonderful Investment Opportunity and Family Home! Beautifully Updated on Corner lot off of Rivermont Avenue!

GREAT INVESTMENT! 
217 Charlotte Street Lynchburg you can send a text message to 54561 and put P24833 in the message field for MORE details! Move In Ready - Newly renovated adorable cape-cod home located in Lynchburg 24503 area. Like new construction with a fresh and bright kitchen, beautifully tiled bath rooms, and gorgeous hardwood floors for easy cleaning. Stainless steel appliances are offered with the purchase. Rocking chair front porch to enjoy a cup of coffee in the morning while watching the neighborhood or a nice glass of sweet ice tea on a hot summer day. This street offers sidewalks perfect for children to ride their bikes, play with their chalk, and safe to enjoy family walks together. This home has it all, so call your agent today to schedule your private showing.www.thelynchburgteam.com

Samantha Mason

Samantha Mason

 

Great First Time or Investment Property!

Don't miss out on this great property. Perfect for your first home or as an investment property. Convenient location, lots of storage and well maintained home. This home offers great outdoor space, ideal for you children and dog! More Pictures to come next week - schedule your private showing today with your Realtor!

Samantha Mason

Samantha Mason

 

Luxury Home Near Link Road, Rivermont and Randolph College

New construction nestled just off one of the City's most desirable streets! 4 bedrooms, 3.5 baths, huge bonus room, screened porch plus deck. Overlooking pond. Huge walk-in closets. Main level master and 2 bedrooms plus 2 full baths. Two-car garage. Full unfinished basement allows room for expansion and already features a roughed-in bath. This home has all the upgrades throughout including granite or marble on all counter tops and hardwood floors. Fireplace in living room. Very desirable school district. Home is now complete (the driveway has just been installed), move-in ready and beautifully landscaped.

Samantha Mason

Samantha Mason

 

Spacious 5 bedroom Maintenance Free Home in Wyndhurst!

$349,900, 5Bd/4Ba Single Family House, 3905 sqft.     THE LYNCHBURG TEAM, REAL ESTATE SERVICES | Dawson Ford Garbee &Co. | 434-879-3275 114 Paulette Circle, Lynchburg, VA 24502 Wonderful SPACIOUS maintenance free home in Beautiful Wyndhurst Community! 5Bd/4Ba Single Family House   $349,900 Year Built 2006 Sq Footage 3905 sqft. Bedrooms 5 Beds Bathrooms 4 Baths Floors 2 Laundry In Unit Lot Size 0.16 Acres  DESCRIPTION This is a gorgeous custom built home that is larger than it looks from the outside! Offering ample living space with an open floor plan. Five bedrooms with a 6th room that could be utilized as another bedroom. This maintenance free living offers dining, shopping, YMCA, swimming, and so much more right at your front door. This charming neighborhood makes for convenient living. 214 Paulette Circle has been freshly painted, new hardwood floors, and landscaping. The windows throughout make this is a bright and cheery home to enjoy for entertaining guess, relaxing, and just a happy place to call home. Schedule your private showing today and don't miss out!   Lynchburg see additional photos below Unit Features - Living room - Dining room - Walk-in closet - Master bath - Family room - Storage space - Breakfast nook - Pantry - Office - Basement - Sun room - Range / Oven - Refrigerator - Dishwasher - Microwave - Garbage disposal - Balcony, Deck, or Patio - Yard - Heat: forced air - Central A/C - Cable-ready - Hardwood floor - Tile floor - High / Vaulted ceiling Community Features - Shared pool - Fitness center - Clubhouse - Garage - Attached ADDITIONAL PHOTOS Contact info: THE LYNCHBURG TEAM, REAL ESTATE SERVICES Dawson Ford Garbee &Co. 434-879-3275 For sale by Agent/Broker Posted: Aug 31, 2015, 10:55am EDT  

Samantha Mason

Samantha Mason

 

5 Secret Sources of Downpayment Money for Your Home!

Having a healthy amount in your savings account could lead to greater financial security even after you purchase your home.
The down payment: It’s the biggest test of our ability to save money most of us will ever face, and one that stands between us and our ability to become a homeowner. It can be tricky, but down payments can be seen as an opportunity and less of an obstacle. The more money you have to put down, the more choice you’ll have in terms of purchase price range and monthly payment amount. And building a little cash cushion will definitely give you piece of mind once you’re in your home. Here are a handful of lesser-known sources for boosting your down payment stockpile. 1. Lean on your city Gone are the times when nationwide programs allowed for the zero-down loan, the federal homebuyer tax credit, and the use of tax credit funds toward down payment and closing cost requirements. Where have all the down payment assistance programs gone? Local. The best programs of this sort are now largely operated by local governments, primarily cities and counties — and the rules for qualifying vary widely. Some operate exclusively for buyers with low or moderate incomes; others are dedicated to helping first-time homebuyers. Many of these programs have a limited pool of funds that may run out over the course of the fiscal or calendar year, and almost all of them require buyers to jump some major hoops, such as completing homeowner education classes and choosing a home that meets specified criteria. Some state and local programs in areas that were particularly hard-hit by the 2008 recession also offer bonuses for buyers who agree to purchase a bank-owned home or a property in a designated economic recovery zone. Google your city, county, and state websites, and look for links for residents, housing, or homebuyer assistance to find these programs. And be sure to trust only websites that end in .gov — scammers posing as governmental agencies abound. Local real estate agents and mortgage brokers often know the ins and outs of these programs too. 2. Get by with a little help from your friends (and relatives) Most mortgage programs will allow for some portion of your down payment to come in the form of “gift money,” which is exactly what it sounds like: money someone gives you to help you buy a home. And while gift money may sound great, taking gift money from a relative can create relationship issues or come with emotional strings attached. It also typically comes with lender strings attached. Lenders frequently require that gift money be accompanied by a letter that clearly states the money is a gift, not a loan. The lender may also want to see a bank account statement from the giver proving that the money was theirs to give. Most may think of gift money as large gifts allowable exclusively in the context of a familial relationship, but some programs allow any general well-wisher to contribute any amount to your cause, whether or not they are a relative. The FHA Bridal Registry program allows couples to open a down payment registry account with their lender and to deposit checks into that account from anyone who wants to contribute to helping a couple become homeowners. 3. Ask your employer Universities and municipal departments that employ first responders such as police and firefighters frequently make down payment and other home-buying assistance programs available to staffers. Large employers or even smaller companies seeking to lure top-level recruits do something similar: relocation assistance programs. Check in with human resources to explore whether any such assistance is available — and if you happen to find yourself a hot prospect on the job market, consider trying to negotiate relocation or down payment assistance into your offer package. 4. Tighten your budget Get gut-level real with yourself about what’s truly important to you. If the answer is buying a home, then it’s time to examine your spending and look for the leakage you can stop up. That’s cash you can redirect to your down payment savings. If you spend $20 a workday on oatmeal and coffee at breakfast and your takeout lunch, that’s at least $400 per month — almost $5,000 a year you could be saving. And those numbers are not inflated to reflect big-city prices. Nor is the $100-a-month cable bill, the $15 yoga class, or the $2,000 vacation. Instead, bring your lunch from home, stream TV shows and movies online, and rally your friends to take a workout class together from one of the streaming sites you’re paying for. Cut hotel costs by renting a private room or small apartment on a site such as VRBO or Airbnb. The key is to click out of money-spending autopilot and to transfer the saved money into a separate down payment savings account. 5. Borrow from yourself There are situations in which it may make sense to borrow a few thousand dollars from yourself via your 401(k) or IRA. Some retirement accounts allow you to borrow against or pull out funds, penalty-free, to apply them toward your down payment on a home. Is it advisable for everyone, in every situation, to deplete their 401(k) or IRA to plug that cash into a house? Absolutely not. But if getting your down payment to the 20% mark by borrowing from your 401(k) gets your mortgage interest rate down and allows you to repay that cash to your own retirement account (versus to your mortgage lender) with interest, you and your financial adviser might agree that this move is right for you. How have you come up with down payment money? Yard sales, consignment stores, selling online? Share with us: contact@thelynchburgteam.com   
Tara-Nicholle Nelson
Tara-Nicholle Nelson is a real estate broker, attorney, author of two real estate guides for women, and a nationally syndicated real estate columnist. She's also a farmer's market addict, mom to two Chin/Pugs, and an Ashtanga yoga practitioner.

Katherine Farber

Katherine Farber

 

Great Home in Appomattox County First Time Home Buyers!!!!

$88,500, 3Bd/1Ba Single Family House, 982 sqft.     THE LYNCHBURG TEAM, LYNCHBURG REAL ESTATE SERVICES | Dawson Ford Garbee & Co. | 434-879-3275 278 Dogwood St, Appomattox, VA 24522 BEAUTIFULLY UPDATED HOME APPOMATTOX CO. 100% FINANCING 3Bd/1Ba Single Family House   $88,500 Year Built 1972 Sq Footage 982 sqft. Bedrooms 3 Beds Bathrooms 1 Bath Laundry In Unit Lot Size 0.34 Acres  DESCRIPTION Calling all First time home buyers: this homey 3 bedroom ranch style home conveniently located in the town of Appomattox, close to 460 and only a 20 minute drive to Lynchburg. Home has a nice attached garage with door opener, large flat backyard, 3 full bedrooms, & a cozy living room, kitchen, & dining area. This home has a newer heat pump/air handler (2012) and shower was just professionally reglazed. This home qualifies for 100% financing. Call your Realtor today to schedule a private showing of this great investment!   Appomattox see additional photos below ADDITIONAL PHOTOS Contact info: THE LYNCHBURG TEAM, LYNCHBURG REAL ESTATE SERVICES Dawson Ford Garbee & Co. 434-879-3275 For sale by Agent/Broker Posted: Jul 22, 2015, 10:50am EDT  

Samantha Mason

Samantha Mason

 

Great Home! In Appomattox County qualifies for 100% financing

$119,000, 5Bd/2Ba Single Family House, 2808 sqft.     THE LYNCHBURG TEAM, LYNCHBURG REAL ESTATE SERVICES | Dawson Ford Garbee & Co. | 434-879-3275 185 Pecan St, Pamplin City, VA 23958 FIVE BEDROOMS TWO FULL BATHS in APPOMATTOX COUNTY! 5Bd/2Ba Single Family House   $119,000 Year Built 1920 Sq Footage 2808 sqft. Bedrooms 5 Beds Bathrooms 2 Baths Floors 2  DESCRIPTION Located in Historic Pamplin City,in Historic Appomattox County! Built in 1920, enjoy the genuine feel of this arts and crafts bungalow style home. The owner has lovingly cared for this grand home complete with original doors glass door knobs, picture rail throughout many rooms including the spacious bedrooms, carved wall corners, beautiful wide baseboards and 1'' wide hardwood floors. A spacious 5 bedroom home with a main level bedroom, 2 full baths, a mud room and walk in pantry just off the kitchen. There are original French doors separating the formal living and dining rooms. The cellar is old and dark (like most cellars) but is accessible from inside or outside and there's even an old coal shoot door. Complete with rocking chair front porch, goldfish pond and ancient landscape such as the most glorious magnolia.   Pamplin City see additional photos below ADDITIONAL PHOTOS Contact info: THE LYNCHBURG TEAM, LYNCHBURG REAL ESTATE SERVICES Dawson Ford Garbee & Co. 434-879-3275 For sale by Agent/Broker Posted: Aug 3, 2015, 11:23am EDT  

Samantha Mason

Samantha Mason

 

Beautiful Home Between Charlottesville and Lynchburg on 29

$599,000, 5Bd/3.5Ba Single Family House, 3208 sqft.     THE LYNCHBURG TEAM, REAL ESTATE SERVICES | Dawson Ford Garbee &Co. | 434-879-3275 19281 Thomas Nelson Hwy, Faber, VA 22938 Beautiful Brick Home on 10 Acres in Faber, Virginia 5Bd/3.5Ba Single Family House   $599,000 Year Built 2000 Sq Footage 3208 sqft. Bedrooms 5 Beds Bathrooms 3.5 Baths Parking 4+ Garage Lot Size 10 Acres Website www.thelynchburgt...  DESCRIPTION This Gorgeous solid brick colonial home is situated on 42 acres. Convenient to 29 North offering easy access to both Charlottesville and Lynchburg. Enjoy country living and relax on the rocking chair front porch while looking out at the breathtaking mountain views. The land offers landscaping and stream that feeds into a large pond that has a center island and a bridge for quite strolls in the evening to unwind from your long days. This home is a custom built home that offers a main level master suite with his and her walk in closets and a master suite upstairs. The large bedrooms offer plenty of room to utilize to your specific needs. Magnificent hardwood floors throughout the home offer for low maintenance cleaning. As you enter in your are greeted with a grand foyer entrance with a parlor sitting room, perfect for entertaining. This home offers a three car garage and guest cottage, with full bath, bed, and kitchen. Owners are willing to sell less acreage or more acreage or just land.   Faber see additional photos below ADDITIONAL PHOTOS Contact info: THE LYNCHBURG TEAM, REAL ESTATE SERVICES Dawson Ford Garbee &Co. 434-879-3275 For sale by Agent/Broker Posted: Jul 13, 2015, 10:47am EDT  

Samantha Mason

Samantha Mason

 

Buying a home - do you really need to get preapproved?

Mortgages can be a daunting thing, but the preapproval process may make your hunt for a new home much smoother. You’ve decided to take the plunge and buy a home. Now what? You might think it’s immediately time to go out there, find a trusted real estate agent, and hit up open houses, but maybe you should consider getting mortgage preapproval first. Yes, it totally exists — you can get all that loan fuss out of the way before you fall in love with your dream house. But should you? Here are the benefits and downsides to the mortgage preapproval process. The preapproval process takes a little longer than prequalification and probes deeper into your credit, but it definitely has several upsides.What about Prequalification? Most agents will want you to get prequalified to purchase a home, which will give you a sense of your maximum price tag. But don’t confuse this process with preapproval — prequalification is a much quicker process in which you’re given the go-ahead based on the information you provide, meaning nothing is set in stone when it comes to your eventual loan. “A big piece of that puzzle is the prequalification piece — some [buyers] will come already having spoken to a lender, either with their own initiative or at our suggestion,” says Atlanta-based RE/MAX agent and team leader Maura Neill. “For the rest of them, we discuss the importance of getting prequalified, not just to protect themselves and to make sure that we’re only viewing homes that they can afford, but also to strengthen their position as a buyer.” Benefits to Mortgage Preapproval The preapproval process takes a little longer than prequalification and probes deeper into your credit, but it definitely has several upsides. The process will give you extra time to address unexpected entries on your credit reports. You’ll get the magic dollar amount that your mortgage is OK’d for, and you might even get a sense of the interest rate you’ll be charged. You’ll also get a conditional commitment to the loan amount, which will give you an advantage with sellers, and you’ll be able to set your sights on homes within your reach. Any offer you make won’t have to be contingent on financing — you’ve already got that covered! “You must know how much you can spend before you can spend it,” says Michael Barbolla, chief operating officer of New York City–based brokerage firm Charles Rutenberg LLC. “Sellers and their brokers will want to know you are qualified to purchase their apartment before they will begin negotiations. The preapproval will give the buyer a good-faith estimate at the outset as to what the closing costs will be for the transaction, and these numbers should be built into the financial picture for the transaction.” Downsides to Mortgage Preapproval All of the above sounds awesome, right? Of course, with the good comes the not so good. Like most great things in life, mortgage preapprovals unfortunately come with expiration dates, so you may feel the need to rush into making offers. (But don’t!) The process can be pricey, since it involves application fees and other costs upfront, before you’ve even stepped foot into an open house. Additionally, loan preapproval comes with hard inquires into your credit — and that could eventually hurt your score if multiple checks are made. But most real estate professionals say if you can do it, you definitely should. “There really is no downside,” says Neill. “There are so many benefits to getting pre-qualified, and even more to getting a full preapproval prior to making an offer.”   Mallory Carra Mallory Carra has been a professional writer for more than 10 years. Mallory currently writes for WhoSay and Bustle. Her work has also appeared in the New York Daily News, Columbia Journalism Review, BuzzFeed, The Huffington Post, and more.

Katherine Farber

Katherine Farber

 

Can you still be approved for a loan after changing jobs?

Keep your lender informed — and your paperwork in order — to stay on track for a loan. Worried about qualifying for a mortgage? You’re not alone. Sometimes even billionaires don’t qualify for a home loan, and it can have nothing to do with income or credit history. Automated mortgage lending systems can flag recent job changes as an indicator of a high-risk lender. Why? A lender can’t make a case for a borrower’s future income based on their current income when jobs are in transition. Borrowers in this situation just don’t have as much paperwork to back up their financial stability, especially if they have gaps in their work history or have changed their pay structure — say from salaried to commission. Luckily, simply changing jobs or pay structures doesn’t rule out qualifying for a mortgage if you’re ready to be upfront with lenders and are prepared with key paperwork. Follow these tips to plan ahead when a new job prospect is on the horizon and, assuming your credit and income do stack up, you should qualify with ease. Give lenders a heads-up on new job prospects First, if you expect to change jobs during the mortgage application process, tell your lender upfront so they can work with you on meeting the requirements. As you ease into your new job, send any relevant work documents to your lender as soon as possible. If you sign a new job contract, forward it right to your lender. Got a new compensation package? Send it over to your bank. You’ll have to notify your lender of any material changes, including job changes, at the very close of settlement anyway, so the earlier you alert your lender, the better. Step up your paperwork preparation Having your paperwork ready is a good practice for any borrower, and it’s especially important for those with income and job changes. Lenders need to see proof of income. Those first pay stubs from your new gig are especially important to have on hand to show you can continue to meet your bank’s income requirements. Pro tip: Lenders frown upon irregular, unpredictable earnings, no matter how much you’re bringing in. To put their minds at ease, document as much of your previous irregular income stream as you can and try to calculate trends and averages that will help your case that you actually have a steady, reliable income. Get your employer’s recommendation Finally, try to get a letter from your new employer stating earning expectations and confirmation on the security of your job. A move from a salaried position into a commission-based pay structure will be less threatening to lenders who hear from an employer that workers in similar positions regularly draw healthy paychecks

Rebecca McClay is a long-time business journalist who has written extensively on personal finance and real estate issues for a number of national publications, including MarketWatch, the Wall Street Journal and Bloomberg. She has a master's degree in business journalism from the Walter Cronkite School of Journalism and Mass Communication.    

Katherine Farber

Katherine Farber

 

Wonderful Home for First Time Buyers in Lynchburg City!

$60,000, 3Bd/2Ba Single Family House, 1103 sqft.     THE LYNCHBURG TEAM, REAL ESTATE SERVICES | Dawson Ford Garbee &Co. | 434-879-3275 1723 Texas Ave, Lynchburg, VA 24501 NEAR LIBERTY UNIVERSITY! GREAT INVESTMENT PROPERTY! 3Bd/2Ba Single Family House   $60,000 Year Built 1955 Sq Footage 1103 sqft. Bedrooms 3 Beds Bathrooms 2 Baths Parking 4+ Laundry In Unit Lot Size 8712 Square Feet Virtual Tour www.listingserver... Website 1723TexasAvenue.I...   Lynchburg see additional photos below Unit Features - Living room - Dining room - Master bath - Range / Oven - Refrigerator - Dishwasher - Central A/C ADDITIONAL PHOTOS   Contact info: THE LYNCHBURG TEAM, REAL ESTATE SERVICES Dawson Ford Garbee &Co. 434-879-3275 For sale by Agent/Broker Posted: Aug 18, 2015, 3:23pm EDT  

Samantha Mason

Samantha Mason

 

6 Minutes from the Heart Of Wards Road in Beautiful Family Subdivision

$244,900, 3Bd/2.5Ba Single Family House, 1892 sqft.     THE LYNCHBURG TEAM, REAL ESTATE SERVICES | Dawson Ford Garbee &Co. | 434-879-3275 179 Crestview Dr, Rustburg, VA 24588 Great Family Neighborhood 6 Minutes From the Heart of Wards Road 3Bd/2.5Ba Single Family House   $244,900 Year Built 2011 Sq Footage 1892 sqft. Bedrooms 3 Beds Bathrooms 2.5 Baths Floors 2 Parking 4+ Other Laundry In Unit Lot Size 0.36 Acres  DESCRIPTION This Home qualifies for 100% Financing! Owner to pay $5,000 Towards Closing Costs!

This is a must see home offering lots of beautiful and rustic details. New construction, craftsman style home close to everything but away from the hustle and bustle. The large windows throughout the home offer plenty of sunlight and brightens up this custom home. Hardwood floors and slate tile throughout the first level offer an appealing look as well as easy cleaning. Be sure to check out the beams throughout home that add to the rustic feel. Tray ceilings make all of the bedrooms feel as if they are their own master suite. Convenient laundry upstairs off of the bedrooms for busy moms and no carrying bulky baskets up and down stairs. Indulge in your morning coffee on the rocking chair front porch and enjoy the quiet, family oriented neighborhood. This home offers so much and for such a low price Call to View this home today!
(434) 879-3275
www.thelynchburgteam.com
The Lynchburg Team - Lynchburg Real Estate Services   Rustburg see additional photos below Unit Features - Living room - Dining room - Walk-in closet - Master bath - Storage space - Range / Oven - Refrigerator - Dishwasher - Microwave - Stainless steel appliances - Balcony, Deck, or Patio - Yard - Lawn - Heat: forced air - Central A/C - Cable-ready - High-speed internet - Hardwood floor - Tile floor - Granite countertop ADDITIONAL PHOTOS Contact info: THE LYNCHBURG TEAM, REAL ESTATE SERVICES Dawson Ford Garbee &Co. 434-879-3275 For sale by Agent/Broker Posted: Aug 12, 2015, 2:29pm EDT  

Samantha Mason

Samantha Mason

 

Great Family Home 6 minutes from the Heart of Wards Road

OPEN HOUSE SUNDAY AUG 23 2PM-4PM
$249,000, 3Bd/2.5Ba Single Family House, 1892 sqft.     THE LYNCHBURG TEAM, REAL ESTATE SERVICES | Dawson Ford Garbee &Co. | 434-879-3275 179 Crestview Dr, Rustburg, VA 24588 Great Family Neighborhood 6 Minutes From the heart of Wards Road 3Bd/2.5Ba Single Family House   $249,000 Year Built 2011 Sq Footage 1892 sqft. Bedrooms 3 Beds Bathrooms 2.5 Baths Floors 2 Parking 4+ Other Laundry In Unit Lot Size 0.36 Acres  DESCRIPTION This is a must see home offering lots of beautiful and rustic details. New construction, craftsman style home close to everything but away from the hustle and bustle. The large windows throughout the home offer plenty of sunlight and brightens up this custom home. Hardwood floors and slate tile throughout the first level offer an appealing look as well as easy cleaning. Be sure to check out the beams throughout home that add to the rustic feel. Tray ceilings make all of the bedrooms feel as if they are their own master suite. Convenient laundry upstairs off of the bedrooms for busy moms and no carrying bulky baskets up and down stairs. Indulge in your morning coffee on the rocking chair front porch and enjoy the quiet, family oriented neighborhood. This home offers so much and for such a low price Call to View this home today!
(434) 879-3275
www.thelynchburgteam.com
The Lynchburg Team - Lynchburg Real Estate Services   Rustburg see additional photos below Unit Features - Living room - Dining room - Walk-in closet - Master bath - Storage space - Range / Oven - Refrigerator - Dishwasher - Microwave - Stainless steel appliances - Balcony, Deck, or Patio - Yard - Lawn - Heat: forced air - Central A/C - Cable-ready - High-speed internet - Hardwood floor - Tile floor - Granite countertop ADDITIONAL PHOTOS Contact info: THE LYNCHBURG TEAM, REAL ESTATE SERVICES Dawson Ford Garbee &Co. 434-879-3275 For sale by Agent/Broker Posted: Aug 12, 2015, 2:29pm EDT  

Samantha Mason

Samantha Mason

 

TWO BEDROOM TWO BATH IN LYNCHBURG CITY NEAR LIBERTY UNIVERSITY

$55,900, 2Bd/2Ba Single Family House, 1190 sqft.     THE LYNCHBURG TEAM, REAL ESTATE SERVICES | Dawson Ford Garbee &Co. | 434-879-3275 2125 Hanover St, Lynchburg, VA 24501 2 BEDROOM 2 FULL BATH in Lynchburg nEAR LIBERTY UNIVERSITY 2Bd/2Ba Single Family House   $55,900 Year Built 1936 Sq Footage 1190 sqft. Bedrooms 2 Beds Bathrooms 2 Baths Floors 1 Lot Size 7013 Square Feet   Lynchburg see additional photos below ADDITIONAL PHOTOS   Contact info: THE LYNCHBURG TEAM, REAL ESTATE SERVICES Dawson Ford Garbee &Co. 434-879-3275 For sale by Agent/Broker Posted: Aug 18, 2015, 3:30pm EDT  

Samantha Mason

Samantha Mason

 

Just Listed! Home Near Liberty University! Great Starter Property!

Don't miss out on this great property. Perfect for your first home or as an investment property. Convenient location, lots of storage and well maintained home. This home offers great outdoor space, ideal for you children and dog! More Pictures to come next week - schedule your private showing today with your Realtor!

Samantha Mason

Samantha Mason

 

NEWLY CONSTRUCTED Home near Liberty University and Lynchburg Airport

This is a must see home offering lots of beautiful and rustic details. New construction, craftsman style home close to everything but away from the hustle and bustle. The large windows throughout the home offer plenty of sunlight and brightens up this custom home. Hardwood floors and slate tile throughout the first level offer an appealing look as well as easy cleaning. Be sure to check out the beams throughout home that add to the rustic feel. Tray ceilings make all of the bedrooms feel as if they are their own master suite. Convenient laundry upstairs off of the bedrooms for busy moms and no carrying bulky baskets up and down stairs. Indulge in your morning coffee on the rocking chair front porch and enjoy the quiet, family oriented neighborhood. This home offers so much and for such a low price Call to View this home today! 
(434) 879-3275
www.thelynchburgteam.com
The Lynchburg Team - Lynchburg Real Estate Services      

Samantha Mason

Samantha Mason

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