Virginia Real Estate Settlement Services

Housing values have risen through all six recessions in the past 44 years

The US population continues to rise and with it, so does the need for housing

Inventory is higher than average, but in-line with common cyclical levels.

Mortgage Rates are near all time lows

4.    Values did rise quickly during the so called ‘bubble”, but that had followed 20 years of below average growth.

3. The media has sensationalized the “bubble” idea as values are actually below their historical trend line.

FINANCIAL BENEFITS OF HOME OWNERSHIP

1. For 44 years, real estate values has risen an average of more than 6%

The lender must disclose a good faith estimate of all settlement costs. A check to cover your closing costs will probably have to be a cashier’s check. The title company or other entity conducting the closing will tell you the required amount for:

 Downpayment
 Loan origination fees
 Points, or loan discount fees, you pay to receive a lower interest rate
 Appraisal fee
 Credit report
 Private mortgage insurance premium
 Insurance escrow for homeowners insurance, if being paid as part of the mortgage
 Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow
accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
 Deed recording tax fees and recording tax fees for the mortgage/Deed of Trust
 Title insurance policy premiums
 Survey
 Inspection fees—building inspection, termites, etc.
 Notary fees
 Prorations for your share of costs, such as utility bills, fuel oil in the tank, and property taxes

A Note About Prorations: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first five days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.

6. Ask about other discounts. For example, retirees who are home more than working people may qualify for a discount on theft insurance.

5. Slight variations in interest rates, loan amounts, and terms can significantly affect your monthly payment. For help in determining how much your monthly payment will be for various loan amounts, use Fannie Mae’s online mortgage calculators at
http://www.fanniemae.com/homebuyers/calculators/index.jhtml?p=Resources&s=Calculators