TIRED OF RENTING? IT'S TIME TO BUY A HOME!

Your landlord is raising the rent. The neighbors are yelling at each other through paper-thin walls. You're a trembling jealous wreck because your best friends just bought a new home and it's awesome. Renting just isn't doing it for you anymore. Is it time to buy your next home?

The primary reason to buy a home is simply because you're ready. Homes are more affordable than they were 10 years ago, and you may be financially able as well as psychologically ready.

Perhaps you've taken a new job, married, or have a child on the way. You want more room for your family, or to live in a certain neighborhood close to work and other activities. To make your decision, you must weigh the pros and cons of renting VS owning so that you can achieve the lifestyle you want.

You know the typical arguments -- you have more freedom of movement as a renter but you build more personal wealth as a homeowner.

You can pick up and move when your lease is up, but the landlord won't let you have a pet and you can't choose the paint and carpet you prefer. As a property owner, your down payment and closing costs are significant, but it's yours to remodel or live in as you see fit.

When something breaks down, like the dishwasher, the landlord bears the repair or replacement costs. If you were in your own place, you'd choose whether to buy all new appliances so breakdowns won't be an issue for a few years.

As a renter, you just need to leave the place in the same condition as when you rented. As a homeowner, you're responsible for fixing, even if you've never picked up a wrench in your life. Or you'll have to hire a professional.

When you rent, you build equity for the landlord, not for yourself. When you own, your monthly mortgage payments go to reduce interest, which is income tax deductible. A portion of the payment goes to reduce the principal of your loan, allowing you to build equity ownership.

You may have to stay put for a while before you can sell your home at break-even or a profit, but you could also make enough to have a lot to put down on a bigger, better home down the road.

Renting was probably a good option while home prices were eroding during the recession, but affordability conditions favor buying now. In January 2015, rents rose 6.5 percent year-over-year, as much as home values increased for all of 2014.

While the population has continued to grow, housing units have not. New home building is two-thirds where it should be. With more new jobs added in April, competition for homes is heating up as renters are more able to afford to buy. Affordability has also been improved by near record-low mortgage interest rates for the last five years, and prime borrowing rates are still under four percent.

Yet many people are still afraid to buy, preferring the "security" of renting over the volatility of the housing market. If you're one of those, don't worry about short-term fluctuations and so-called corrections. Look at long-term trends -- that housing prices typically beat inflation, and that the tax advantages will more than allow you to profit from owning a home. And most important, that the home you buy will help you provide the surroundings you want for your household.

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11 WAYS YOU'RE GIVING MONEY AWAY WHEN YOU BUY YOUR HOUSE

Mortgage lender Fannie Mae just made a move to make homeownership more affordable, and it's one of many things that can help you save some cash when buying a home. If you're not taking advantage of every money-saving opportunity out there - and there are a lot of them - you're just leaving money on the table.

1. Take advantage of new programs

The aforementioned Fannie Mae program "will now pay your closing costs, up to 3% of the price of the home—provided you take the mortgage giant's home-buyer counseling course first," said Realtor.com. Called the HomePath Ready Buyer program, it "allows first-time buyers (defined as those who have not owned a home in the past three years) to take an online course, get certified, and become eligible for what could amount to significant savings. For instance, on a $150,000 home, Fannie Mae could contribute up to $4,500 toward your closing costs—which typically range from 2.5% to 3% of a home's price."

2. Ask the seller to pay closing costs

In an appreciating market, you may have a hard time getting the seller to kick in—especially if they have other offers to consider. Make sure you ask your real estate agent for advice (and listen to it.) You don't want to offend or amuse the seller into outright rejecting your offer.

3. Negotiate everything

Want the seller's refrigerator or dining room set? Ask for it. Could be that they're trying to get rid of them anyway.

4. That goes for new homes, too

If you're buying a new home, you may not have a ton of negotiating power when it comes to the sales price, but you may when it comes to upgrades. If you love the wood floor or quartz counters in the model, you just may be able to get them thrown in at no extra cost.

5. Use your builder's in-house lender

Another way to potentially save money on a new home is to use the builder's in-house lender, if they have one. A builder can't require you to use their lender, said Bankrate, but they may offer incentives to do so.

6. Fix up your credit

NEA Member Benefits found that poor credit can account for an extra $82,000 in interest on a $250,000 home loan. "The total interest paid for a home with a 630 score—nearly a quarter-million dollars over the lifetime of the loan—is enough money to buy a second house. There is always a cost to credit, and that cost can increase tremendously due to a low credit score."

7. Shop for the best loan

Settling for the first loan that comes your way might not be the best bet. Different lenders offer different rates. Shop around to see what your best options are.

8. Get a co-signer

If you're having trouble qualifying for a home at a low enough interest rate, a cosigner can help. "Part of that person's income can be considered toward your loan amount regardless of whether the person will actually be living with you or helping you pay the bill," said Investopedia.

9. Put 20 percent down

Twenty percent is the magic number when it comes to whether or not you have to pay Private Mortgage Insurance (PMI). PMI can add hundreds of dollars to your monthly payment, and can't be removed until sufficient equity in your home has been realized. If you can swing 20 percent, it will save you money. If you can't, try asking a family member for a gift or get down payment assistance, said Chase.

 

10. Buy a fixer-upper

A lesser-known FHA loan may present a great opportunity for those who are having a hard time finding an affordable home in a competitive market and who love a project.

This loan "not only covers the cost of buying the property, but also for remodeling expenses and closing costs allowed by the terms of your FHA home loan," said the FHA. "The best part of these ‘fixer upper' loans? The approved FHA loan amount also includes a percentage of the total remodeling costs (as spelled out in your submitted plan) set aside just in case there is extra work needed."

11. Read the fine print

When you get your good faith estimate from your lender, read everything. There may be some miscellaneous fees that can be negotiated out. Click here for more information on what to look for.

HOW TO MAKE A PURCHASE OFFER ON A HOME

You're ready to make an offer on the home of your dreams. But before you do, make sure you're really ready. Ask yourself and your household members if this is the home for the next five or so years. Make sure everyone is on board with commitments to make it work, from putting off the dream vacation to putting in the elbow grease to clean, paint and do the yard work.

Have your real estate agent pull up the most recent sold comparables within a reasonable radius of the home, so you can compare the home with other similar homes in terms of location, size, features, and amenities.

Next, consider the most current market conditions, so you can choose the right offer strategy.

In a buyer's market, discounts are common because there are fewer buyers, more properties for sale, and home prices are soft or falling so offers under list price are common.

In a seller's market, homes sell quickly for full price or higher because there are plenty of buyers and few homes for sale.

Whether you are in a buyer's market or a seller's market, your goal is to buy the home at a fair price. If you were the seller, what is the lowest possible price you'd accept?

To show the seller you're serious, include a copy of your lender's pre-approval letter, along with a cover letter summarizing your strengths as a buyer in terms of creditworthiness, flexibility in closing, and why you love this home. Include a copy of the comparables you used to show why your offer is a fair price for the property.

If the seller's home is offered at a reasonable price, don't waste time. Pay asking price or close to it. A home priced to sell will sell quickly and you'll lose it if you mess around.

Offering too little for a property is risky. If the seller feels insulted by your offer, you've lost the opportunity to negotiate. On the other hand, some sellers are simply unrealistic about their home's value. Maybe your offer will be their wake-up call. The seller will probably respond with a face-saving still-high offer, but at least they're negotiating with you.

If your offer is conditional, such as your need to sell another home before closing on the seller's, you'll have to find a way to sweeten the deal, such as a full-price offer. Few sellers will accept a discount and a contingency.

Your real estate professional will help you draft the offer with a price, estimated closing date and terms, including earnest money (a guarantee that you'll perform as a buyer in good faith,) final approval by your lender and your right to have an inspection. Your earnest money check will be forwarded to the escrow agent when your offer is accepted.

You'll have a brief period to get your home inspections completed. Your home inspector will go through the home with you and point out the condition and potential lifespan of all systems and appliances. You should only renegotiate when a problem wasn't obvious before, or when a system is found to be unsafe or not functioning.

Once you and the seller have agreed to terms, your offer is now a binding contract and you're on your way to owning a home!

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FIVE SMART HOMEBUYER STRATEGIES

The National Association of REALTORS® has announced that there's a housing supply shortage. Homes are selling quickly and home prices are starting to inch up again. It's becoming a seller's market in many areas.

 

Any time the market changes, it's time to change strategies. During a buyer's market, buyers have the upper hand and can make more demands to sellers over their homes' price and condition. During a sellers' market, buyers concede the upper hand to sellers and are more willing to accept higher prices and terms.

When homes are in short supply, buyers don't have the luxury of taking their time, teasing sellers with lowball offers, demanding that every little thing be fixed, and shopping for homes with multiple real estate agents. Do these five steps instead.

Make a good first impression. Not only do you need to impress sellers, you need to impress real estate agents. Hire one agent and let him or her profile your needs to the marketplace. Be specific about your must-haves so you don't waste your agent's and your time viewing homes that lack what you want most. When you find the home you want, send the seller a letter along with your offer outlining why you love the home.

Get preapproved by a lender. Not only will you know how much home you can buy, you'll be ready to make an offer quickly. Your real estate agent can include the fact that you're financially preapproved by your lender in with the offer, which will carry weight with the seller.

Shop within your price range. In a seller's market, it's wise to shop for homes within or slightly below your price range. This will give you more room to make full-price offers or above in case the home you want is in a bidding war with other buyers. You'll be able to pay your own closing costs. Trying to buy a home out of your reach during a seller's market will only cause you and your agent frustration.

Be flexible. No home is perfect. To get more home for your money, you might shop for an older home that needs renovation. Try to look past ugly wallpaper and stained carpet and visualize the home with more attractive finishes. You may be able to get more living space in an established neighborhood than with a newer home that is priced higher for similar square footage.

Be ready. Be ready to see a new listing at a moment's notice. Be ready to make an offer when you believe this is the right home for your household. Once a seller has accepted your offer, proceed as if you're in a normal market. Set a reasonable closing date that accommodates the seller as much as possible. Confirm the offer with your lender. Schedule the inspections you'll need and don't nitpick the seller over small things.

Whether you're in a buyer's market or a seller's market, you should feel good about the home you choose, the deal you make, and the courteous way you treated all parties to the transaction.

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Herndon,Reston,Centreville, Chantilly, Bull Run, Virginia, 

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LIVING SINGLE: BUYING A HOUSE WITHOUT HELP

Home purchases among single people are a growing trend, as buyers take advantage of low rates and available funds to transition from renting to homeownership.

And by and large, those singles are not men. Here are a few things to consider:

Make sure you have enough money to make the purchase

First-time buyers may be saving for a down payment and not thinking about the other costs of buying a house, like closing costs, which can add thousands of dollars that you pay upfront. Be prepared to come up with an additional 2–5 percent of the purchase price of your home to cover them.

If the upfront money is hard to come by, FrontDoor advises that down payment assistance may be available depending on where you live. Some states have affordable housing programs that that can provide "first-time homebuyers with $7,500," they said.

Make sure you can afford it monthly

Figure out the monthly payment of a house on any number of online mortgage calculators, and you might think it's far more affordable than it is, because you're only calculating principal and interest. Now factor in taxes, insurance, homeowner's association fees, and Private Mortgage Insurance if you're putting down less than 20 percent. This can add hundreds of dollars to your monthly payment. Even if you are approved by a lender, can you really swing it?

Forbes recommends that the "home's principal, interest, taxes and insurance not exceed 28% of your net income," and Bankrate adds that "You should not have a mortgage that's so big you still don't put at least 10 percent of your income in a retirement plan."

Be realistic about your goals

If you're looking for pride of ownership and to improve your way of life, homeownership can be a great move. If your goal is fast cash, maybe not.

"It is a mistake to expect a quick run-up in property values," said Bankrate. But "Owning a home can help women enter a more secure retirement if they pay down their loan balance over time."

Don't be afraid to shop for mortgages

You might be loyal to a friend who is a loan officer, but it doesn't hurt to look around. Especially when "A Consumer Federation of America study in 2006 found that women received an outsized share of subprime mortgages," said Bankrate. "Mortgage lenders may not provide women with all loan information and options because of stereotypes about women's alleged lack of financial sophistication.”

Have the loan officer lay out all the options. No matter which lender you go with, it's important to get pre-approved before you shop.

You want to know what you can afford before you fall in love with something that's way out of your budget. Being pre-approved will also mean you can move forward quickly when you find the right house instead of potentially losing out to another buyer who was better prepared.

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5 FRONT YARD LANDSCAPING TIPS THAT WILL WOW HOME BUYERS

Your front yard is the red carpet inviting buyers into the beauty that is your home. If it's rugged, messy and unkempt, buyers will take one look and then keep on driving to the next property on their list. Don't let that happen by making your front yard luscious and as amazing as the inside of your home.

What areas should you focus on in your front yard? Where do you start? To help you break down the revitalization of your front yard, here are the steps you should take:

1. Cut the grass.

Buyers don't want to trudge through high grass as though they were in the Amazon or on a safari in Africa. This means the lawn mower needs to be out at least once a week if not every other week, keeping it trimmed and maintained. It also needs to be green so it looks alive and lush. Water so the sun doesn't dry out the lawn and turn it yellow or brown. A professional landscaper can help maintain a balance of trimming and growth so it looks just right for buyers.

2. Plant more shade trees.

One or two trees in the front yard are all right, but if you want to really add some shade, plant more. Shade trees will detract from the glare of the sun, and it can help decrease the temperature of the house if they're placed close to windows. It also will help keep the lawn green with moisture. You can plant trees that are shorter and will grow by the time the new owner buys the home, but be sure they're strong and can handle the climate.

3. Install outdoor lighting.

Outdoor lighting is a good way to both illuminate the house at night and accent parts of your yard. Depending on where you install the lights, your house will look very appealing at night to those buyers who might not have time to do their shopping during the day. Outdoor lighting also helps to illuminate a path like a sidewalk to get from the curb to your front door for easier navigation. It helps to accent the beauty of your landscaping which all together increases the beauty of your home.

4. Consider adding flowers for more color.

If your front yard has a lot of greenery, you should increase the yard appeal by adding more colors. Flowers are a great and simple way to do this, as well as shrubbery with different blooms. Perennials are the best for this because they last for more than a year, which means less maintenance for the seller and the new homeowner. They come in a wide variety of colors and types so the yard can be decorated with any number of them while still requiring less maintenance.

5. Keep everything clean!

In addition to keeping the lawn trimmed, everything else should be clean. Anywhere that can build up dirt or grime - siding, porch, front door, driveway - should be cleaned on a regular basis. Buyers don't want to see a lot of dirt and mess, and it will detract from them wanting to walk into the house. So take a broom, a power washer and a few hours on the weekend to keep everything sparkling clean. Don't have a power washer? A professional power washing service can cost as little as $300.

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fees, Buy, Sell, Warrenton, Haymarket, Bristow, Manassas, 

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Herndon,Reston,Centreville, Chantilly, Bull Run, Virginia, 

Northern Virginia, Northern VA, NOVA, Virginia Fauquier 

county real estate, Prince William County, Fauquier County, 

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