June, 2008
A couple of years ago, I had the distinct privilege of helping a young couple purchase their first home. The home is located in Milford mailing area of Caroline County, just off of Highway 207. When they purchased the home, it was a three bedroom, two bath ranch, and sat on 1.6 acres. It was a nice home, and it suited my clients very well.
A couple years have passed now, and their family has grown a bit. They are also expecting orders (he is military) in the not so distant future, so they have decided to put their home on the market. And paid me the biggest compliment, by asking me to work with them again.
So, a couple of weeks ago, I strolled down to their home. I expected, as is often the case when working with sellers, to view the home and hand them a long “to-do” list. A list of things that should be done in order to stage and showcase their home to potential buyers.
Wow! Was I impressed. First, the home was staged incredibly well (read: not a thing to be done that they were not already on top of,) and it had been meticulously maintained. On top of that, they have turned this house in the country, to what I now refer to as a “Peaceful Country Oasis.”
I have dubbed the home thus, because that is exactly the feeling that you get as you preview this property. Every nook and cranny of the home is sparkling clean, fastidiously maintained, and some awesome improvements have gone into the home over the last two years. The home now sports crown molding, new laminate flooring, a warm, rich, but neutral decor, and a lot more.
The previously unfinished basement, is now mostly finished and adds a bunch more living space, and includes a den, and office or what could be used as a fourth bedroom, and a recreation room, that could easily be converted to a media/theater room.
Warm, vibrant and comfortable. Those are the words I was thinking as I marveled at what they had done with their home, since they purchased it. Then, my friends led me to the “nature area” and I was hooked!
They have painstakingly installed stairs and a hand rail, complete with tiki torches, that lead down a small hill, to a level area beside the small stream. In this area, they have dug a fire pit, cut down the greenery to form a nice large open area, and lined it with tiki torches. I am not in the market to buy their home. Even so, I was instantly imagining the hours of enjoyment and togetherness my family would have in this nature area.
I pictured camp-outs with my son. I imagined my teenage daughter’s friends huddled around the fire on an Autumn night, roasting marshmallows, and hot dogs. I pictured my friends relaxing around a fire. I thought about the times I could steal a few minutes from a busy day, and just relax under a canopy of shade in the warm summer days Virginia is known for. And, I thought, how could anyone who is looking for a home on some acreage in this area, resist this home. It is quite certainly, a “Peaceful Country Oasis.”
That is the story, here are the details:
- Bedrooms: 3 or 4 (4th not to code)
- Baths: 2 (rough in for a third in the basement)
- Acreage: 1.6 acres
- Square footage: Approximately 1500 to 1600 finished
- Kitchen/Dining Room Combination
- Living Room, that opens to a nice Country Front Porch
- 3 Bedrooms on Main Level
- 2 Baths on Main Level
- Walkout level basement, with sliding glass door entry
- Den in the lower level
- Office or potential 4th bedroom in lower level
- Recreation room in lower level
- Lower level laundry room
- Lower level storage room
- Newer storage shed
- Lovely Nature Area
It has just gone on the market, and is priced at $249,000. Click here to see the virtual tour of 14344 Nelson Hill Drive, Milford, Va.
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For the uninitiated, when loan officers speak about the price of a loan, they are talking about the interest rate, and any points that may be charged. We already know that credit scores affect whether or not a buyer will qualify for a loan, but they may also determine the price of the loan.
A buyer with a lower credit score is considered to be a higher credit risk, than someone with a higher credit score. So, buyers with lower credit scores may pay higher prices for their loan. Credit scores are usually a factor in determining the price of a loan, but the pricing may also be significantly impacted by other issues as well, like:
- The type of property,
- The amount of money the buyer is using as a down payment,
- The value of the property, and
- The type of loan product itself.
Historically speaking, the more money the buyer puts into a down payment, increasing their equity, the less of a credit risk they are considered to be. That is because they have a substantial vested interest in keeping the property from going into default.
The information included here is generally true all across the nation, and pertains specifically to the Fredericksburg real estate market as well.
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I wanted to piggyback off from Jeff’s article yesterday. FICO scores are more important than ever with the ever changing product and rates of mortgages. Below is a sample of the guidelines from the insurance providers for mortgages that are greater than 80% loan to value.
MGIC*:
- Max. LTV/CLTV: 95% in MGIC’s distressed markets with a minimum 680 FICO
PMI*:
- Max. LTV/CLTV: 95% in their Level 1 market(s) with a 620 FICO, 90% max. LTV/CLTV in their Level 2 market(s)
Radian*:
- 5% maximum LTV/CLTV reduction in declining markets for all products except loans >95% LTV/CLTV, which are reduced to 95% LTV
- Minimum 680 FICO and maximum debt ratio of 38% at 95% LTV/CLTV
Triad*:
- Triad requires a 5% Reduction in Max LTV/CLTV for properties in declining markets, except for loans above 95% LTV/CLTV,
which are reduced to 95% LTV/CLTV
- Loans in AZ, CA, FL, and NV will be limited to 90% LTV/CLTV for MI
RMIC* (Effective July 14, 2008):
- Max. LTV/CLTV: 95% with criteria that ALL must be met:
· OFHEO Index has declined 2% the most recent 2 quarters (refer to their website home page for %)
· 700 minimum FICO
· Maximum DTI 45%
United Guaranty
- The maximum LTV/CLTV is 90% for properties in Declining Markets
- The maximum LTV/CLTV is 85% for Agency Jumbo Loans
- Minimum FICO in a declining market is 680
Genworth
- The maximum LTV/CLTV in Declining Markets is 90%, with a minimum FICO of 680
- The following states are designated as Declining Markets: FL, CA, AZ, NV, MI, OH
Certain transactions and property types may be restricted from declining markets policies.
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As I mentioned in a previous article (Banks Selling Fredericksburg Real Estate Do Not Act Logically) there are still issues to beware of when buying a bank owned foreclosure property. I wanted to do a follow up on that particular situation.
We finally received the corrected title so we could close on Friday… interestingly enough on Friday the 13th. We were waiting for the final approval on the HUD (closing statement) from the sellers’ side. An hour before we were scheduled to close our client called to have the water turned on in his name and he was told “there is a lien on the address.” The lien had to be paid in the amount of $167.00 before it could be put in the buyer’s name.
So now it is 6pm on Friday. The attorney that is handling the closing for the bank called and stated “that the computers are not working for the bank to receive the final HUD, and they have closed for the day as of 3pm and it is Friday the 13th.”
So our client is forced to continue to stay in a hotel until Monday, to close on his home that I as the loan officer have been ready to close since May 15th. Did I also mention that the interest rate lock for his loan will expire on Monday at 7pm?
Thank the Lord our client, at this point, is beyond anything but humor and is taking it in stride, and understands that in this case, virtually everything that could go wrong on a real estate transaction, has gone wrong!
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It is important for a wide variety of situations in life to have a good credit score. This is especially true if you are considering buying one of the many homes for sale in the Fredericksburg real estate market. So, I wanted to do a small series detailing some basic information on credit scores and related topics.
Credit Score Basic Information
When considering making a loan to a consumer, lenders need to determine the consumer’s capability and propensity to repay the loan. One of the primary tools lenders use to make this determination is the consumer’s credit score. As the old adage goes, past actions are some of the best indicators of future events.
FICO Score
FICO scores utilize credit bureau information to assign a score to every consumer. This system uses both negative and positive notations to determine the consumer’s score, which ranges from 350 to 900. The higher the score, the better credit risk is the consumer.
The required scores to purchase a home using various loan products often changes, depending upon the location in the evolving real estate cycle and mortgage cycle. At some times a 580 credit score is sufficient to get a decent loan product and rates. Other times 680 may be the benchmark, and so forth.
I don’t purport to be an expert in the mortgage industry. The above information is provided from my working knowledge of credit scores and the mortgage industry, as a Realtor in the Fredericksburg real estate market. I can, however, direct you to someone who is an expert, should you require additional information or assistance.
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If you came to this site looking for real estate information, there are hundreds of articles, and great tools at your disposal. This article however, has nothing to do with real estate, and is written specifically to my father.
Over the last couple of weeks I have been jotting down notes about the things to which I owe my Dad. Things he taught me, things he protected me from, things he gave me, and things for which I know I can count on him.
My Dad wasn’t/isn’t perfect, but God put us together for a reason. In a way, we grew up together. We certainly learned a lot together. Sometimes when I write heartfelt things here on the blog, I make my Mother cry. I doubt I make my Dad cry – although he may have wanted to cry when I was younger.
Anyway, I pondered and jotted notes about my Dad, my youth, and so forth. This is a portion of that list…
- Dad taught me to always stand up for what is right, even if it hurts
- He taught me how to raise a garden, and to live off the land
- He taught me how to hunt for game, and to never, ever kill something that you do not intend to eat
- He taught me how to catch Catfish
- He taught me solid basic carpentry skills
- He taught me to love a John Deere tractor
- He taught me how to play guitar
- He taught me how to tear a car completely apart, rebuild it, remold it, put it back together and paint it
- He taught me to never be afraid to try (this is probably one of the best lessons of my life)
- He taught me that anything worth doing, is worth doing right
- He taught me basic electrical skills
- He chose my Mother well
- He and my Mother gave me two awesome brothers, and a delightful sister, all of whom I am enormously proud
- He taught me to never say anything about someone, that I am not man enough to say to that person
- He taught me how to safely handle a gun
- He came to Parris Island for my Marine Corps boot camp graduation, although I am sure he had never intended to go back to that island
- Dad was a tough father. He needed to be, and for that I am thankful
- Dad allows me to still remember my grandfather, I see some of him in Dad
- He taught me to face down my fears
- He and my Mother gave me a 1967 Chevy II (my little deuce coupe) that I desperately wanted. I am sure he later regretted it, but I will never forget that car.
- He taught me to work hard. I heard my Dad leave for work at some ungodly hour, around 3:30 in the morning, more days than I care to remember. I have known Dad to work 12 hour days, 7 days a week, for weeks and months on end.
- He taught me that when you make a mistake, you do all you can to make it right, if you have the chance
- He taught me that you owe your parents more than you can repay. He didn’t teach that by telling me to feel that way about him, he taught it by acting that way toward his parents
- He taught me basic woodworking
- He taught me responsibility… usually by waiting up for me to come home at EXACTLY the time of my curfew AND by often taking my car keys to hammer home the point
- He taught me that time, patience, and perseverance will conquer all things
- He taught me that sometimes it isn’t always fun to say I am a Marine, but that I will always be glad to say I was a Marine. Dad too was a Marine.
- He taught me to love a game that I can never master… golf
I know that whatever life throws at me, my family, or my siblings, that Dad will be there as long as he is able. There is not much more that a child can ask of a father.
I hope that when my earthly race is nearly over, I can look at my kids and see that I have done a good job…. and I hope that when that time comes for my Dad, that he too will be proud of the father I, and my brothers have become. I don’t think I can honor him any better than that. Dad… I am doing my very best, and I love you. I hope you had a happy Father’s Day!
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Rags to riches stories of hollywood celebrities – find out how much the house they grew up in cost and how much the one they live in now costs.
Eddie Murphy, See Home
Beverly Hills, CA – Eddie Murphy built a Mission-style $20 million mission in 2005.
Edward Regan “Eddie” Murphy (born April 3, 1961) is an Academy Award-nominated, Golden Globe-, Screen Actors Guild Award-winning American actor, film director, producer and comedian. Murphy ranks as the number one grossing film star in history, having a total of 33 films to date, his films grossing over $3.4 billion in the US alone, averaging $104 million per film.[1] He was a regular cast member on Saturday Night Live from 1980 to 1984, and has worked as a stand-up comedian. He has also enjoyed a minor singing career.
Murphy was born in Brooklyn, New York and grew up in the 1960′s where the median home price was $75,400.
Oprah Winfrey, See Home
Oprah resides in a $55 mil home in Montecito, CA with 14 bathrooms and 10 fireplaces.
Oprah Gail Winfrey (born January 29, 1954), often referred to simply as Oprah, is an American television host, media mogul, and philanthropist. Her internationally-syndicated talk show, The Oprah Winfrey Show, has earned her multiple Emmy Awards and is the highest-rated talk show in the history of television.[2] She is also an influential book critic, an Academy Award-nominated actress, and a magazine publisher.
Oprah was born in rural Mississippi but grew up in an inner city Milwaukee neighborhood in the 1960′s where the median home price was $60,600.
J.Lo, See Home
Los Angeles, CA – J.Lo lives in a seven bedroom and fourteen bathroom, 12,217 sq. ft home in
Jennifer Lynn Lopez (born July 24, 1969),[1] popularly nicknamed J.Lo, is an American actress, singer, songwriter, record producer, dancer, fashion designer, and television producer. She is the richest person of Latin American descent in Hollywood according to Forbes, and the most influential Hispanic entertainer in America according to People en Español’s list of “100 Most Influential Hispanics”.[2]
Jennifer Lopez was born in the South Bronx, New York and grew up in the 1970′s where the median home price was $86,400.
John Travolta, See Home
Ocala, FL – John Travolta built this $2.5 million dollar Florida house at the end of a private runway in Ocala, Florida, which includes parking for his Boeing 707 and Gulfstream jets. Oh, and a 16-car garage.
John Joseph Travolta (born February 18, 1954) is an Academy Award-nominated and Golden Globe Award-winning American actor, dancer, and singer, best known for his leading roles in films such as Saturday Night Fever, Grease, Pulp Fiction, Hairspray, and Battlefield Earth.
Travolta was born in Englewood, New Jersey and grew up in the 1960′s where the median home price was $76,900.
Billy Joel, See Home
Miami, FL – Billy Joel’s $35 million dollar, 7 bedroom modernist Miami mansion sits on a private island.
William Joseph Martin “Billy” Joel (born May 9, 1949) is an American pianist and singer-songwriter. He released his first hit song, “Piano Man”, in 1973. According to the RIAA, he is the sixth best-selling recording artist in the United States.[1]
Born in the Bronx, New York, Joel was raised in Hicksville, New York during the 1950′s where the median home price was $61,500.
Will Smith, See Home
Los Angeles – The Fresh Prince renovated this Calabasas castle, worth nearly $20 million. It has its own lake. Mr. and Mrs. Smith have their own full-sized basketball and tennis courts too!
Willard Christopher “Will” Smith, Jr. (born September 25, 1968) is an American actor and rapper. He is one of a small group of people who have enjoyed success in three major entertainment media in the United States. Newsweek has called him the most powerful actor on the planet.[1] Smith has been nominated for a Golden Globe, two Academy Awards, and has won multiple Grammys.
Will Smith was born and raised in West Philadelphia and Germantown in Northwest Philadelphia during the 1970′s where the median home price was $52,200.
Halle Berry, See Home
Malibu, CA – Halle Berry’s owns an $8 million estate in Malibu, CA. Nearly every room has a coastline view.
Halle Maria Berry (IPA:; born August 14, 1966)[1] is an American actress, former fashion model and beauty queen. Berry has received Emmy and Golden Globe awards for Introducing Dorothy Dandridge,[2] and an Academy Award for Best Actress in 2002 for her performance in Monster’s Ball, becoming the first and still only woman of African-American descent to have won the award for Best Actress.
Halle was born in Cleveland Ohio and grew up in the 1970s where the median home price was $67,600.
Brad Pitt, See Home
Malibu, FL – Brad Pitt’s cliffside crib in Malibu, just $4.5 million.
William Bradley “Brad” Pitt (born December 18, 1963) is an American actor, film producer, and social activist. He became famous during the mid 1990s after starring in several major Hollywood films.[1] Pitt received a Golden Globe Award and an Academy Award nomination for his role in the 1995 film Twelve Monkeys.[1]
Pitt was born in Shawnee, Oklahoma and grew up during the 1970s where the median home price was $42,600.
Ryan Seacrest, See Home
Los Angeles, CA – Ryan Seacrest recently purchased Kevin Costner’s Los Angeles home for $11.5 million.
Ryan John Seacrest is an American television/radio host and television producer.His first big break after college was him hosting a small radio station called Star 94. Then, He rose to fame as the host of American Idol, and he has since gone on to host E! News Live, Dick Clark’s New Year’s Rockin’ Eve, as well as such radio shows as On Air with Ryan Seacrest on KIIS-FM in Los Angeles and American Top 40.
Ryan Seacrest was born on Christmas Eve in Dunwoody, Georgia and grew up during the 1980′s $73,000.
Sylvester Stallone, See Home
Beverly Park, CA – Sylvester Stallone’s owns a $10 million 15,121 sq. ft. mansion in Beverly Park.
Sylvester Gardenzio Stallone[1] (born July 6, 1946) is an Academy Award-nominated American actor, director, producer and screenwriter. One of the biggest box office draws in the world from the ’70s to the early ’90s, Stallone is an international icon of machismo and Hollywood action heroism. He has played two characters who have become a part of the American cultural lexicon: Rocky Balboa, the boxer who overcame all odds to become a champion, and John Rambo, a sensitive soldier who specialized in violent rescues and revenge.
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Rates on conforming loan programs as of Friday June 13th
- 30 year fixed 5.875% no points/fees 20% down payment
- 15 year fixed 5.75% no points/fees 20% down payment
- 5 year ARM 5.0% one point 20% down payment
- 30 year fixed Jumbo 6.0% 1.75 points 20% down payment
VA/FHA rates are available as well. Call or email today for more information.
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I just had a potential buyer of Fredericksburg real estate ask a great question. That question was regarding the lack of photos contained within a real estate listing. Specifically the question was, “There are no photos with this listing, are they hiding something?”
It is a great question. Most often, the answer is no, they aren’t hiding anything. That particular listing agent just leans toward the lazy side. Sometimes though, they are hiding the fact that the property is in awful condition.
One of the biggest disservices a listing agent can do to his/her client is to put up no photos, or simply an outside photo, with no supporting visual tour. I looked up a property for another buyer today, and it had three photos… a postage stamp sized photo of the outside, one photo of a bathroom, and one of a staircase. This was how the home was showcased…
Now, I freely admit that I often just put one photo in the MLS. BUT, it is always supported by a virtual tour, like this one 4207 Bridlepath Ct, Fredericksburg, Virginia 22408.
So, back to the original question. Most often a lack of photos does not indicate a propensity to hide something. But, when you have photos of a few innocuous portions of the home, I would suggest there probably is something to hide. Ultimately, you or your agent just needs to go view the property and evaluate it well.
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I am a father to a teenage daughter, and a nine year old son. I love them with all of my being. I am sure I have, and at some point, will again give them advice that is well intentioned, but not necessarily professional. And, it will irritate some professional they are dealing with. This happens quite often in real estate.
Here in the Fredericksburg real estate market, we help a lot of younger couples buy their first home. Sometimes the buyer’s parents are involved – and that’s a good thing. But…. sometimes they give their children not so sound advice regarding the real estate transaction.
This situation was exemplified in a recent transaction. We have a young couple who are in the process of buying a home. The home is a foreclosure, and is being sold “as is.” However, my team negotiated the contract so that it was contingent upon a home inspection. This, of course, was done so that we could protect the buyer’s financial interests.
Somewhere along the way, the buyer’s father convinced them that it was a waste of money to do a home inspection on an “as is” property. Telling them that nothing would be repaired by the bank.
This is possibly true, that the bank would repair nothing. But, certainly not guaranteed, because the contract was contingent upon that inspection. I have to tell you that this is a frustrating scenario. It is frustrating because, we don’t have any contact with the original owners, the bank knows nothing about the property, and therefore, we don’t know if there are any hidden defaults that we just are not seeing.
Maybe the bank wouldn’t have repaired anything, but $350 for a home inspection could have purchased some serious peace of mind for these buyers. I am sure “Dad” was trying to save them some money, and that he had their best interest at heart… but it was not sound advice.
In some situations, when buying a foreclosure property in the Fredericksburg real estate market, you will not be able to make the contract contingent upon a home inspection. BUT, if you can, you should strongly consider doing the inspection. This is just good advice, and let me be perfectly clear…. I have no financial gain by a home inspection being conducted. I just want to protect my clients. It is frustrating when someone close to the clients thwarts that protection.
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