As promised here's the next restaurant of interest in the Hampton Roads area, Siam 21 in Norfolk. Siam 21 is a Thai/Vietnamese restaurant in downtown Norfolk. The atmosphere is very calming and authentic. The service was a little slow, but once the food arrived. All is forgotten! It has the family feel and is good for a family night out or a cozy place for a date. I ordered the drunken noodles and a green curry. The food was flavorful with just the right amount of spice! I would very much recommend this place to anyone with a hankering for Thai. It compares with the ever popular Bangkok Garden for food quality but is actually a little bit cheaper, which is always good!
If you have any questions about this post or want to continue this discussion beyond the customary comment, email me at lizgermanos@yahoo.com. If you are interested in real estate in Hampton Roads and need an agent to guide, please feel free to also email me.
Monday, September 22, 2008
The Mortgage Process
Qualifying for a Mortgage Loan
First let me caveat this post with the fact that I am not a mortgage specialist and this is a bit outside my usual realm of expertise. To verify this information or delve deeper into it, I would consult a mortgage broker. However, as a Realtor, we do know a lot about the mortgage process. Before I was a Realtor, I worked for a loan officer. So I do know a few things……I hope this guide helps!
Banks don't loan money to just anybody. They want to feel secure that you're able and responsible enough to pay them back, especially since the sub-prime fiasco. So you'll usually need these things in order for the bank to give you a loan:
*Enough money for the Down Payment (3 to 20% of the purchase price)
*Two years of steady employment (same job or field)
*Good (not perfect) credit score (thought the better the credit the better the interest rate)
*Income that's 2 to 3 times higher than your expected mortgage payment
If you don't have all these things right now don't fret. You still have some options.
Meet with a lender anyway. Don't just assume you can't get a mortgage. It can't hurt to go talk to a bank and see whether they're willing to give you a loan. Even if they won't give you a loan they can probably help you by letting you know where the deficiencies are, so you can work towards qualifying in the future.
Try for a Low-Doc or No-Doc Loan. In recent years banks have been offering loans to people who can't (or don't want to) provide details about their income or their employment. The most popular is called a Stated Income loan because you just "state" how much income you have without offering any proof. It's also called NIV for "No Income Verification" because your income isn't verified. With No Ratio and No Doc loans, you don't even say how much you make. You can think of these as "Don't Ask, Don't Tell" loans. The No Doc is also called NINA, for "No Income & No Asset verification". Because income is never proven with any of these loans I joking call them the "Drug Dealer Loans", though of course there are many legitimate reasons for wanting a loan of this type. People such as myself who are self-employed or commission based often have a lot of tax write-offs and that hurts you in qualifying for a loan. My good credit, and my willingness to pay a tiny amount of extra interest, was enough to get me the loan without having to supply any paperwork. So this program is perfect for this group of people. The draw backs to these loans are usually a higher interest rate and a minimum down payment of 10%. Since the bank is taking a bigger risk on you with a No-Doc or Low-Doc loan, the interest rate is higher than on a traditional loan, and the exact amount depends on your credit score, your lender's preference, and which flavor of low-doc/no-doc loan you get. The premium you'll pay will range 0.125 to 3.0 percentage points over a traditional loan.
Use a Mortgage Broker. A mortgage broker represents lots of different lenders so they can shop around to try to find one who will make you a loan. They charge a fee for this service but if you can't get a mortgage otherwise then it could be worth it. You can find mortgage brokers in the homes section of the newspaper classifieds and in the yellow pages. But usually the best ones you find are the ones that come recommended to you from your trusty Realtor, friends, family, or coworkers.
If you have a hard time qualifying for what you want or are denied, don’t give up! Get a co-signer! See if a family member or very close friend with a higher income and better credit than yours will cosign a loan for you. That means that the loan will be yours and you'll be responsible for paying it, but if you don't, the cosigner will have to pay it. Obviously the cosigner will have to have a great deal of trust in you for this option to work and to violate that trust is terrible. This is only the way to go if you know you can afford the place. Many people go this route when they know they will have a roommate or a significant other paying half the mortgage (which is not used in qualifying you for a loan).
Another option in the case of denial in lieu of a cosigner is to have a friend or family member buy the house, and rent-to-own it from them. Friends and family might be wary of co-signing a loan for you because their credit gets ruined if you don't make the house payments, and they have little recourse against you. A more attractive alternative is to have your friend or family member buy the house in their name, and then rent it to you with an option to buy. My parents did this for me when I first started out and it put me in a good position to buy my next home!
Here's how it works: You'll make the mortgage payments and pay for taxes, insurance, and maintenance, as your "rent". You can get the house in your name by either making all the payments after 30 years, or by buying the house for the amount of the remaining mortgage once your credit or income improves enough for you to get your own loan. If you fail to make your payments, you forfeit your right to buy the house, and your friend/family member can either pick up the payments or sell the house. Either way, they're not out because they already own the house. They don't have to foreclose if you don't pay, because the house was already in their name. For that reason this arrangement can be more attractive to them than the idea of their being a cosigner.
In fact, if you don't have the money for a down payment, your friend/family member might loan you the money for the down payment as well -- usually for a slightly higher interest rate than the mortgage.
A downside of having someone buy the house for you is that the interest rate will be about 1% higher because the house will be considered investment property for the buyer and not a residence, since they're not going to live in it. Still, if the only way you can get yourself into your own home is to pay a little more interest, it might be worth it.
Plan for the future. Even if you can't buy a home right this very minute if you make home-owning a serious goal then within two years you can probably overcome most or all of any obstacles above.
If you have any questions about this post or want to continue this discussion beyond the customary comment, email me at lizgermanos@yahoo.com. If you are interested in real estate in Hampton Roads and need an agent to guide, please feel free to also email me.
First let me caveat this post with the fact that I am not a mortgage specialist and this is a bit outside my usual realm of expertise. To verify this information or delve deeper into it, I would consult a mortgage broker. However, as a Realtor, we do know a lot about the mortgage process. Before I was a Realtor, I worked for a loan officer. So I do know a few things……I hope this guide helps!
Banks don't loan money to just anybody. They want to feel secure that you're able and responsible enough to pay them back, especially since the sub-prime fiasco. So you'll usually need these things in order for the bank to give you a loan:
*Enough money for the Down Payment (3 to 20% of the purchase price)
*Two years of steady employment (same job or field)
*Good (not perfect) credit score (thought the better the credit the better the interest rate)
*Income that's 2 to 3 times higher than your expected mortgage payment
If you don't have all these things right now don't fret. You still have some options.
Meet with a lender anyway. Don't just assume you can't get a mortgage. It can't hurt to go talk to a bank and see whether they're willing to give you a loan. Even if they won't give you a loan they can probably help you by letting you know where the deficiencies are, so you can work towards qualifying in the future.
Try for a Low-Doc or No-Doc Loan. In recent years banks have been offering loans to people who can't (or don't want to) provide details about their income or their employment. The most popular is called a Stated Income loan because you just "state" how much income you have without offering any proof. It's also called NIV for "No Income Verification" because your income isn't verified. With No Ratio and No Doc loans, you don't even say how much you make. You can think of these as "Don't Ask, Don't Tell" loans. The No Doc is also called NINA, for "No Income & No Asset verification". Because income is never proven with any of these loans I joking call them the "Drug Dealer Loans", though of course there are many legitimate reasons for wanting a loan of this type. People such as myself who are self-employed or commission based often have a lot of tax write-offs and that hurts you in qualifying for a loan. My good credit, and my willingness to pay a tiny amount of extra interest, was enough to get me the loan without having to supply any paperwork. So this program is perfect for this group of people. The draw backs to these loans are usually a higher interest rate and a minimum down payment of 10%. Since the bank is taking a bigger risk on you with a No-Doc or Low-Doc loan, the interest rate is higher than on a traditional loan, and the exact amount depends on your credit score, your lender's preference, and which flavor of low-doc/no-doc loan you get. The premium you'll pay will range 0.125 to 3.0 percentage points over a traditional loan.
Use a Mortgage Broker. A mortgage broker represents lots of different lenders so they can shop around to try to find one who will make you a loan. They charge a fee for this service but if you can't get a mortgage otherwise then it could be worth it. You can find mortgage brokers in the homes section of the newspaper classifieds and in the yellow pages. But usually the best ones you find are the ones that come recommended to you from your trusty Realtor, friends, family, or coworkers.
If you have a hard time qualifying for what you want or are denied, don’t give up! Get a co-signer! See if a family member or very close friend with a higher income and better credit than yours will cosign a loan for you. That means that the loan will be yours and you'll be responsible for paying it, but if you don't, the cosigner will have to pay it. Obviously the cosigner will have to have a great deal of trust in you for this option to work and to violate that trust is terrible. This is only the way to go if you know you can afford the place. Many people go this route when they know they will have a roommate or a significant other paying half the mortgage (which is not used in qualifying you for a loan).
Another option in the case of denial in lieu of a cosigner is to have a friend or family member buy the house, and rent-to-own it from them. Friends and family might be wary of co-signing a loan for you because their credit gets ruined if you don't make the house payments, and they have little recourse against you. A more attractive alternative is to have your friend or family member buy the house in their name, and then rent it to you with an option to buy. My parents did this for me when I first started out and it put me in a good position to buy my next home!
Here's how it works: You'll make the mortgage payments and pay for taxes, insurance, and maintenance, as your "rent". You can get the house in your name by either making all the payments after 30 years, or by buying the house for the amount of the remaining mortgage once your credit or income improves enough for you to get your own loan. If you fail to make your payments, you forfeit your right to buy the house, and your friend/family member can either pick up the payments or sell the house. Either way, they're not out because they already own the house. They don't have to foreclose if you don't pay, because the house was already in their name. For that reason this arrangement can be more attractive to them than the idea of their being a cosigner.
In fact, if you don't have the money for a down payment, your friend/family member might loan you the money for the down payment as well -- usually for a slightly higher interest rate than the mortgage.
A downside of having someone buy the house for you is that the interest rate will be about 1% higher because the house will be considered investment property for the buyer and not a residence, since they're not going to live in it. Still, if the only way you can get yourself into your own home is to pay a little more interest, it might be worth it.
Plan for the future. Even if you can't buy a home right this very minute if you make home-owning a serious goal then within two years you can probably overcome most or all of any obstacles above.
If you have any questions about this post or want to continue this discussion beyond the customary comment, email me at lizgermanos@yahoo.com. If you are interested in real estate in Hampton Roads and need an agent to guide, please feel free to also email me.
Wednesday, September 10, 2008
Dining in Virginia Beach
One of the best parts of living in Hampton Roads is the dining. I love to eat out and I have made it my mission to, as part of my promotion of living in Hampton Roads, to discuss once a week a great place to eat! This week's pick is Back Bay Pizza in Virginia Beach at Hilltop next to the Melting Pot. This restaurant has been open for about 8 months as a full service pizza restaurant. The serve gourmet salad and pizza, as well as main dishes. I ordered a portabella mushroom pizza and caesar salad. The pizza was amazing and the salad had the perfect ratio of dressing to lettuce. The atmosphere is reserved and laid back with subtle lighting and white linen. The staff was very personable. I would definitely recommend this place for a pizza connoisseur. You can also get their gourmet pizzas to go, ready to be baked fresh at your oven at home. So support your local small businesses and check this place out!
If you have any questions about this post or want to continue this discussion beyond the customary comment, email me at lizgermanos@yahoo.com. If you are interested in real estate in Hampton Roads and need an agent to guide, please feel free to also email me.
If you have any questions about this post or want to continue this discussion beyond the customary comment, email me at lizgermanos@yahoo.com. If you are interested in real estate in Hampton Roads and need an agent to guide, please feel free to also email me.
Wednesday, September 3, 2008
How to Prepare a Home for Sale
Here's How:
1. Disassociate Yourself With Your Home.
· Say to yourself, "This is not my home; it is a house -- a product to be sold much like a box of cereal on the grocery store shelf.
· Make the mental decision to "let go" of your emotions and focus on the fact that soon this house will no longer be yours.
· Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!
· Say goodbye to every room.
· Don't look backwards -- look toward the future.
2. De-Personalize.Pack up those personal photographs and family heirlooms. Buyers can't see past personal artifacts, and you don't want them to be distracted. You want buyers to imagine their own photos on the walls, and they can't do that if yours are there! You don't want to make any buyer ask, "I wonder what kind of people live in this home?" You want buyers to say, "I can see myself living here."
3. De-Clutter!People collect an amazing quantity of junk. Consider this: if you haven't used it in over a year, you probably don't need it.
· If you don't need it, why not donate it or throw it away?
· Remove all books from bookcases.
· Pack up those knickknacks.
· Clean off everything on kitchen counters.
· Put essential items used daily in a small box that can be stored in a closet when not in use.
· Think of this process as a head-start on the packing you will eventually need to do anyway.
4. Rearrange Bedroom Closets and Kitchen Cabinets. Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:
· Alphabetize spice jars.
· Neatly stack dishes.
· Turn coffee cup handles facing the same way.
· Hang shirts together, buttoned and facing the same direction.
· Line up shoes.
5. Rent a Storage Unit. Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room's purpose and plenty of room to move around. You don't want buyers scratching their heads and saying, "What is this room used for?"
6. Remove/Replace Favorite Items.If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won't want it. Once you tell a buyer she can't have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.
7. Make Minor Repairs.
· Replace cracked floor or counter tiles.
· Patch holes in walls.
· Fix leaky faucets.
· Fix doors that don't close properly and kitchen drawers that jam.
· Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls. (Don't give buyers any reason to remember your home as "the house with the orange bathroom.")
· Replace burned-out light bulbs.
· If you've considered replacing a worn bedspread, do so now!
8. Make the House Sparkle!
· Wash windows inside and out.
· Rent a pressure washer and spray down sidewalks and exterior.
· Clean out cobwebs.
· Re-caulk tubs, showers and sinks.
· Polish chrome faucets and mirrors.
· Clean out the refrigerator.
· Vacuum daily.
· Wax floors.
· Dust furniture, ceiling fan blades and light fixtures.
· Bleach dingy grout.
· Replace worn rugs.
· Hang up fresh towels.
· Bathroom towels look great fastened with ribbon and bows.
· Clean and air out any musty smelling areas. Odors are a no-no.
9. Scrutinize.
· Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
· Linger in the doorway of every single room and imagine how your house will look to a buyer.
· Examine carefully how furniture is arranged and move pieces around until it makes sense.
· Make sure window coverings hang level.
· Tune in to the room's statement and its emotional pull. Does it have impact and pizzazz?
· Does it look like nobody lives in this house? You're almost finished.
10. Check Curb Appeal.If a buyer won't get out of her agent's car because she doesn't like the exterior of your home, you'll never get her inside.
· Keep the sidewalks cleared.
· Mow the lawn.
· Paint faded window trim.
· Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive.
· Trim your bushes.
· Make sure visitors can clearly read your house number.
MOST IMPORTANTLY: List that sparkling house with a Realtor! :)
If you have any questions about this post or want to continue this discussion beyond the customary comment, email me at lizgermanos@yahoo.com. If you are interested in real estate in Hampton Roads and need an agent to guide, please feel free to also email me.
1. Disassociate Yourself With Your Home.
· Say to yourself, "This is not my home; it is a house -- a product to be sold much like a box of cereal on the grocery store shelf.
· Make the mental decision to "let go" of your emotions and focus on the fact that soon this house will no longer be yours.
· Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!
· Say goodbye to every room.
· Don't look backwards -- look toward the future.
2. De-Personalize.Pack up those personal photographs and family heirlooms. Buyers can't see past personal artifacts, and you don't want them to be distracted. You want buyers to imagine their own photos on the walls, and they can't do that if yours are there! You don't want to make any buyer ask, "I wonder what kind of people live in this home?" You want buyers to say, "I can see myself living here."
3. De-Clutter!People collect an amazing quantity of junk. Consider this: if you haven't used it in over a year, you probably don't need it.
· If you don't need it, why not donate it or throw it away?
· Remove all books from bookcases.
· Pack up those knickknacks.
· Clean off everything on kitchen counters.
· Put essential items used daily in a small box that can be stored in a closet when not in use.
· Think of this process as a head-start on the packing you will eventually need to do anyway.
4. Rearrange Bedroom Closets and Kitchen Cabinets. Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:
· Alphabetize spice jars.
· Neatly stack dishes.
· Turn coffee cup handles facing the same way.
· Hang shirts together, buttoned and facing the same direction.
· Line up shoes.
5. Rent a Storage Unit. Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room's purpose and plenty of room to move around. You don't want buyers scratching their heads and saying, "What is this room used for?"
6. Remove/Replace Favorite Items.If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won't want it. Once you tell a buyer she can't have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.
7. Make Minor Repairs.
· Replace cracked floor or counter tiles.
· Patch holes in walls.
· Fix leaky faucets.
· Fix doors that don't close properly and kitchen drawers that jam.
· Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls. (Don't give buyers any reason to remember your home as "the house with the orange bathroom.")
· Replace burned-out light bulbs.
· If you've considered replacing a worn bedspread, do so now!
8. Make the House Sparkle!
· Wash windows inside and out.
· Rent a pressure washer and spray down sidewalks and exterior.
· Clean out cobwebs.
· Re-caulk tubs, showers and sinks.
· Polish chrome faucets and mirrors.
· Clean out the refrigerator.
· Vacuum daily.
· Wax floors.
· Dust furniture, ceiling fan blades and light fixtures.
· Bleach dingy grout.
· Replace worn rugs.
· Hang up fresh towels.
· Bathroom towels look great fastened with ribbon and bows.
· Clean and air out any musty smelling areas. Odors are a no-no.
9. Scrutinize.
· Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
· Linger in the doorway of every single room and imagine how your house will look to a buyer.
· Examine carefully how furniture is arranged and move pieces around until it makes sense.
· Make sure window coverings hang level.
· Tune in to the room's statement and its emotional pull. Does it have impact and pizzazz?
· Does it look like nobody lives in this house? You're almost finished.
10. Check Curb Appeal.If a buyer won't get out of her agent's car because she doesn't like the exterior of your home, you'll never get her inside.
· Keep the sidewalks cleared.
· Mow the lawn.
· Paint faded window trim.
· Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive.
· Trim your bushes.
· Make sure visitors can clearly read your house number.
MOST IMPORTANTLY: List that sparkling house with a Realtor! :)
If you have any questions about this post or want to continue this discussion beyond the customary comment, email me at lizgermanos@yahoo.com. If you are interested in real estate in Hampton Roads and need an agent to guide, please feel free to also email me.
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