| | | |  | | | L I V E O N L I N E | | | | | | | | | | Special Series: April 22-26
Real Estate and Home Buying Live Discussions
April 22
Mon., noon ET:  Columnist and expert Barry Stone offered advice about home inspections. Read the transcript, as well as his most recent column from The Washington Post.
April 23
Tues., 1 p.m. ET:  Columnist and expert Katherine Salant offered advice about new home construction.
Read the transcript.
April 24
Wed., 1 p.m. ET:  Columnist and expert Ken Harney answered readers' questions about selecting a mortgage lender. Read the transcipt, and read his weekly column from The Washington Post.
April 25
Thurs., noon ET:  Columnist and real estate expert Bob Bruss answered questions about buying and selling real estate. Read the transcript.
April 26
Fri., noon ET:  Columnist and expert Benny Kass answered legal questions related to real estate. Read the transcript. Also, read his weekly column.
| | | | | | __Related Articles __
• The Path to Ownership (The Washington Post, March 23, 2002)
• Realty Groups Honor Top Agents of 2001 (The Washington Post, April 6, 2002)
• Figuring a Home's Price, for What It's Worth (The Washington Post, March 20, 2002)
• 2002 Predictions (The Washington Post, December 29, 2001)
• Navigating the New-House Market (The Washington Post, January 19, 2002)
• Keeping an Eye on The Builder (The Washington Post, March 16, 2002)
• The Big Deals About Housing (The Washington Post, March 28, 2002)
• Don't Forget to Ask Who Owns Building Plans (The Washington Post, April 13, 2002)
• With a Modest Budget, a Custom-Built House Doesn't Have to Break the Bank (The Washington Post, December 22, 2001)
• Superior Exteriors (The Washington Post, December 1, 2001)
• When Is a Mortgage Rate Lock Not a Lock? (The Washington Post, January 5, 2002)
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Choosing a place to live can be one of the most exhilarating experiences of a lifetime. By helping thousands of home buyers over the years, the real estate experts at Long & Foster have learned that the best approach is to be prepared. Literally, to do some homework. Their observation is simple. Your move can be an improvement if you duplicate what you like in your present community and avoid what you dislike. Long & Foster , the largest real estate company in Virginia and in the five-state Mid-Atlantic region, just posted an all-time company record of $2.6 billion in sales in March 2002."Real estate companies have never before experienced a market with such high activity and scarcity of inventory," said Wes Foster, president of Long & Foster. Foster's company continues to grow, and has just broken ground on a new 33,000 square-foot office building in Centreville. Here's more advice from the experts at Long & Foster to help make you buying experience as pleasant as possible despite the tight market: House Hunting Begins at Home The search can begin in your present home so Long & Foster has developed some questions to stimulate your thinking and help you identify your needs and preferences. Once you've clarified what you like in your present community, you will have a better idea of what you want to find. Plus, you will be able to express your preferences clearly to your Long & Foster Sales Associate who can help you find it. One hint to keep in mind as you go house hunting is an old wisdom: "The best time to think about selling your home is when you're buying it." In other words, what appeals to you as a buyer today will probably also appeal (or what turns you off will be a turn off) to buyers tomorrow. A careful house hunter will benefit years from now when it's time to sell to an equally value-conscious buyer. Build your buyer's savvy by reading classifieds and homes-for-sale magazines, and also visiting open houses. County and City Questions Would you characterize your present area as urban, suburban, semi-rural or rural? Is the population density low, medium or high? Is the population decreasing, stable or increasing? What natural features are the most significant? Woods? Hills? Flat land? Rivers? Ocean shore? Man-made lakes? Streams and ponds? How do you commute to work? Do you walk? Drive? Car pool? Taxi? Bus? Train? How far must you travel and how long does it take morning and evening? Do you use available public transportation for local trips or to visit close-by communities? Can someone reach your home on public transportation? Where do you do your shopping? Central commercial districts? Shopping malls? Supermarket shopping clusters? Community shops or home delivery? Imagine a list of typical stops in one week& how many miles and how much time would visiting the entire list require? Do you want greater convenience? What types of schools does your family attend now? From grade school to graduate school, and from day care needs to special vocational training, what facilities will you require in the next few years? Are there any special needs or plans? Although it's extremely difficult to compare quality of education& especially when the most important ingredient is the relationship between teacher and student& some statistical indicators can be helpful. Average class size at grade level. Comparative standardized test scores. Average salary of teachers. Percentage of high school graduates who go to college. What does the area offer for recreation and entertainment? Music? Movies and live stage? Sports arenas? Museums? Nightlife? What types of indoor and outdoor sports facilities are available? Are there public parks, country clubs, athletic clubs, fraternal groups? Do you require any special facilities? Choosing a Neighborhood After you take stock of the larger view of the county and city, this section helps you zero in on your neighborhood preferences.  In real estate an old maxim says there are three criteria that determine market value: "Location, location, and location." The concept of neighborhood isn't as precise as county or city. Some people consider the boundaries to be the district around a grade school. Others consider it "walking distance," more or less within a half-mile radius. Wherever you draw the line, a neighborhood is the immediate area around your house. People, Services Every neighborhood can be described from three standpoints: its people (your future neighbors), what it looks like, and where its services are located. Yet any neighborhood description is highly subjective, which brings up another observation from our experience. No matter how much hard data one gathers about a neighborhood, nothing compares with information that local people provide. Whether it's fellow workers, letter carriers or people at a bus stop; neighbors are the best observers of a neighborhood. Talk to as many people as you can and ask them the following questions. Neighborhood Questions Do neighbors socialize regularly, or hold block parties, picnics, holiday parties, organize sports teams? What are the ways they have met their neighbors? Walking a dog, commuting, PTA, parties, little league, gardening? What types of dwellings: high-rise or low-rise apartments, condominiums, multi-family structures, single family houses, mobile homes? How much do the neighbors care for lawns and gardens? Are the houses maintained "like new," adequately, poorly? Is there a Home Owner's Association? Are cars parked mostly in garages, driveways, in the street? How old are the houses? More than 30 years old? 15 to 30 years? New? How far apart are the houses? Are property upgrades common? Swimming pools, tennis courts, fences, walls, patios, extensive landscaping? For convenience, how does the neighborhood rate? Can you walk to shopping or is a car necessary? List your five most frequent destinations. Are they clustered in one stop-and-shop location? Two stops? How much time is required for fire, police or ambulance services to arrive in an emergency? How close are cultural centers, parks, restaurants, theaters, playgrounds? How do the children routinely reach their schools, play areas, friends' homes? By walking, bicycle, bus, or do parents drive them? Is public transportation available for commuting or shopping? Do any local ordinances affect pets, parking, lawn, etc.? What are the disadvantages of the neighborhood? Freeway, railroad or airplane noise? Factory pollution, heavy traffic, exposure to heavy storms, possible flooding? Choosing a House We've saved the best for last. In many ways home finding is easier than choosing a county and a neighborhood, because you are considering tangible details. Yet our experience suggests that many people "decide" with emotion, and "justify" with facts. This section will help you strike a better balance. First, one should realize that thousands of houses are sold in the area every year. Inspecting the thousands of houses on the market is obviously impossible. But you can turn this overwhelming selection to your advantage. If you can clearly describe the features you require, your Long & Foster Sales Associate can make a preliminary screening for you. After you select the best houses, you can concentrate on inspecting your top choices. The key is knowing what you need. House Questions How many people will be living in the house? Do you prefer a new or resale home? What is your preferred housing style? Townhouse, colonial, contemporary, split level, split foyer, Cape Cod, rambler, or something else? How many total rooms do you need? Bedrooms, bathrooms? How strongly do you require features such as: separate living room, dining room, laundry room, basement or attic, family room, fireplace, workshop area, garage? How much property do you require? Do you have preferences for any particular natural features? House Hunting Many of our customers find it helpful to keep a record of the houses they inspect. A notebook is handy with pages large enough to record vital information, as well as hold stapled pictures of attractive houses and neighborhoods or clipped advertisements. Financial Details Is the asking price comparable to other houses in the neighborhood? Higher or lower? However, when carefully comparing properties be sure to take into account unique features and improvements that vary house to-house, and consult your Long & Foster Sales Associate who can provide a Market Comparative Analysis (CMA). What's the required down payment amount? What financing method is acceptable to the seller? What are the annual property taxes? Physical Details Outside Address of property? House style? Lot size? Landscaping details? Degree of grounds maintenance required? Age of house? Structural condition? Are any major repairs or improvements necessary? Maintenance of building? Inside. Make a sketch of floor plans.  Total number of rooms and baths on each floor? Any extras such as intercom, fireplaces, phone jacks? Built-in appliances: dishwasher, garbage disposal, trash compactor? Adequate storage space? Construction. Inspect quality of materials, present condition, craftsmanship both inside and outside. Insulation? Weather stripping or storm windows? Major systems. Plumbing, electrical, heating and cooling. What type of fuel does the heating system use? Approximate annual cost? A professional inspection of major systems is a good idea for a house you're considering. Computerized Hunting At any moment a complete description of homes you would like to visit is available through the Multiple Listing Service (MLS) system in all Long & Foster offices. Here's how it works. When a house is listed for sale by any area broker, the home's vital statistics are fed into the computer: the lot size; the age and kind of home (condo, townhouse, single family); style (colonial, contemporary, Cape Cod, etc.); material (brick, stone, wood); the number, size and use of rooms (4 bedrooms, 2 1/2 baths, kitchen, living and dining rooms, family room, finished basement and attic, foyer, utility room, garage). Also included are features (fireplace, walkout deck); equipment (stove, dishwasher, carpeting); the heating and/or cooling systems; the water and sewage systems; the annual taxes; the mortgage balance, monthly payments, and, finally, the price. A buyer's requirements can be fed into the computer by a Long & Foster Sales Associate: particular neighborhoods; styles of homes; the number and kinds of rooms, and the price range. In minutes the computer prints out all the houses that meet the buyer's criteria. The computer also helps buyers determine which home sellers will offer seller financing. It can calculate the amount of mortgage payments at various interest rates, under various financing plans. It can also help evaluate the investment and the financing that is right for the buyer. Plus, it's updated each morning, as hundreds of houses enter and leave the market. Could Your Dream Home Get Sidetracked by Mortgage Nightmares? You can't get a house without getting a mortgage loan Even if it seems like a daunting task to gather the right paperwork and fill out the forms and choose the right lender and the right program for your needs, it's worth it. It's the only path that can take you to homeownership (unless your Uncle Louie left you a few hundred thousand in his will). Sometimes the path is smooth strolling, other times it's slow going. "The thing to remember is that lenders are in the lending business, not the refusing business," says Ron Shur, CEO of National Financial News Service, a mortgage and banking tracking firm. "The basic requirements are that you take an equity position of some kind in the loan (a down payment, even if it's small), you have some form of credit (it doesn't have to be excellent credit), and you can prove the ability to pay back the loan (proof of income)," says Shur. Here are some other things you can do to smooth the loan acquisition process:
1) Apply for the mortgage loan before you purchase your home. Why would anyone go to contract on a home and subsequently face the mortgage issue? In America, many home buyers go through the process backwards. Why shouldn't the mortgage company be working on the loan while you're shopping? If the approval is received before your contract presentation, you will increase your leverage with the sellers, as you have a commitment in hand. Wouldn't you feel more secure in the home buying process if your loan was approved before you submitted a contract on a new home?
2) Do not rush the loan application. How much time do you need to prepare properly? Set aside time during the week to sit down with your lender, allowing proper time to concentrate on the application, free of distractions. Rushing through the application process with children on your lap is sure to result in important questions not being answered. These unanswered questions are likely to come back and haunt the process at the most crucial time-days before the expected settlement.
3) Come to the loan application prepared. One reason not to rush the appointment is to give yourself enough time to prepare. Use this time wisely. Have the lender fax you a complete loan application document checklist. If you are missing these documents, the approval process may be delayed and potential problems may be unresolved. You might ask, What could possibly go wrong? Let's say, for example, that your monthly bank statement reflects a large deposit made in the past few months. The mortgage company may question the source of the funds for the transaction. Perhaps the funds used for the escrow deposit came from a gift or loan. If the loan officer had this information up-front, you could resolve the issue at the beginning of the process. Many programs will allow a gift or a loan in certain situations, but a paper trail may have to be produced in order to substantiate the explanation. Developing a paper trail two days before settlement does not make for a peaceful transaction.
4) Stop shopping solely based on rates. We all shop for the best price on many occasions. Perhaps we are looking for the best airfare or price on a car. It stands to reason that the company which has a lower mortgage rate than all the others in your town will have a larger book of business. It's possible that this busier company is more likely to have processing and other service-related delays. This does not mean that companies with higher rates definitely have better service because there is not always an inverse relationship between low rates and service. On the other hand, don't you expect the airplane to be full when you fly at a greatly discounted fare? Keep in mind that a full airplane can mean a certain amount of inconvenience. What should you look for in a lender if you are not to shop solely based upon rates? First of all, look for recommendations based upon service. Talk to your Realtor and others who have had experiences with the company and the personnel. It is also important to interview the loan officer/agent and ask for references. Remember, this individual may be giving you advice concerning financing programs and could conduct the initial review of your mortgage application and supporting documentation.
Some Questions To Ask:
• How long have they been in the industry and what positions have they held?
• What education and or training do they have?
• Does the lender carry a wide range of mortgage and lock options?
• Can they support their service claims?
• Many mortgage lenders have quick approval programs. If they do not meet their service guarantee, what is the benefit to you?
• Does the lender have a customer service department?
Consult your Realtor if you have additional questions on the home buying process and remember that the consumer has the ability to control the process in such a way that they will experience a quick and smooth settlement. The purchase of a home is too important an economic event to leave anything to chance.
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