ONLINE RELOCATION PACKAGE

If you're coming to D.C. for the Mid-Year NAR Meetings next week, don't miss this opportunity to see Annapolis and hang out with some activerain friends.  Annapolis is about an hour east of D.C., and it feels like a whole world away. You may even want to walk around the downtown area to experience the historic buildings and stunning water views.  Thank you, Martha, for organizing this!

PCSing to Fort Meade, Andrews AFB, Naval Station Annapolis, or The Pentagon?  Relocating for a civilian job at the Department of Defense or Homeland Security? 

You may be eligible for a $5,000 grant to help you buy a detached home, townhome or condo, using a 30-year fixed-rate loan.  This grant is available through the Dream Makers Program of the Pentagon Federal Credit Union (PenFed) Foundation, but you don't have to be a member of PenFed to qualify.

Eligibility requirements:

1. Military (Active Duty, Reserve, National Guard or Veteran)
   OR civilian employees at the DOD or DHS
2. First-time home buyers
   OR you haven't owned a home for the last three years
   OR you lost your home through divorce or disaster
3. $55,000 annual income maximum
   OR 80% of the amount earned by a smiliar family in the area 

You are expected to contribute at least $500 toward the down payment, and Dream Makers will match your contribution three-to-one up to a maximum of $5,000.  The combined total of your contribution plus the Dream Makers grant must be enough for a 3% down payment on the home.

To receive the maximum grant of $5,000, your contribution would be $1666 toward the down payment.  The combined total of $6,666 would satsify the requirement for a 3% down payment on a home selling for approximately $220,000. You can use the Dream Makers grant for an FHA loan, but keep in mind that FHA actually requires 3.5% down, not 3% (approximately $1100 more); you can also use it toward a VA loan, which has no down payment requirement.

You can find a home priced in the low $200's in some communities near Fort Meade, Andrews AFB, and Naval Station Annapolis, and I would be happy to identify them for you.

Click on the Dream Makers application form now, before you even find a home or choose a lender, to confirm you are eligible.

Thank you PenFed!

Sometimes the truth hurts, and it's not always easy for an agent to be entirely candid with a seller in this politically correct world. Steve is a REALTOR in Huntsville, Alabama, but he's on target with this post for ALL home owners.  If you're thinking of selling any time soon, please take the information in this post to heart. He's trying to be helpful, and I appreciate the opportunity to share his words with you.

Crofton home sellers, take note.  This post is a terrific explanation of what a professional home stager does... and why she does it.  As you'll soon see, home staging is much "More than Pictures and Pillows!"

 REAL ESTATE Q&A

Q: Is there anything I have to do to prepare for buying a Crofton home?

A. The short answer is “no.” The better answer is “yes!”

Lots of home buyers walk into a real estate office or model home with no preparation at all, and eventually they succeed in finding and buying a house. The process is rarely without disappointments, delays and frustrations, however, which might have been avoided with a little preparation.

If you want a more pleasant home-buying experience, here are some suggestions to help you prepare for becoming a home buyer:

1. Know how much home you can afford before you start looking.

Loan Pre-approval: Contact a local lender to be pre-approved for a loan. The lender will require you to provide information for yourself and any additional borrowers before you can be pre-approved:

• Full name, contact information, social security number, and birthdate.
• The name and contact information for employer, gross income, length of employment, and employment history for the past several years.
• The name, address, and account number for all monthly financial obligations including long and short term loans, credit accounts, child support, alimony, and child care.

Your lender may ask for additional information, but this list will get you started.

Budget: Just because a lender says you qualify for a loan, doesn't mean you want to borrow that much. Sit down with a calculator and evaluate the required monthly expenses you shared with the lender AND your discretionary spending such as hobby-related expenses, private schools for your children, or that annual vacation. Then you'll have a more realistic picture of how much you can afford for a monthly mortgage payment, and that can be easily translated into how much you can borrow.

Down payment and closing costs: How much cash do you have on hand for up-front expenses such as a home inspection, credit report, and appraisal? How much will you have for down payment and closing? There are other options besides savings or equity from another home. Click on this previous blog post, 8 Ideas for Down Payment and Closing Costs.

2. Know what features you want in a home and community

Make a wish list: If price were no object, what features would you like to have in your home and community? Now let's add a dose of reality to your wish list by separating your “wants” from your “needs.” For example, you may want 4 bedrooms but need 3.

Do your research: Take advantage of the many online home search options to get a preliminary idea of home prices, features, and neighborhoods. You can begin your home search right here, by clicking on the link for Search for Homes. Homesdatabase.com is is another good resource, since it is the public version of MRIS, the multiple listing service used by real estate agents throughout the Middle Atlantic region, including the greater Crofton area.

3. Choose a real estate agent

 How to choose an agent and what to expect at your first appointment are topics for another day.  Let it suffice, for now, to say that it's never been easier to choose a real estate agent. You can practically interview them online by visiting their websites, reading their blogs, and checking their reviews on 3^rd party websites – not to mention the various social media sites such as YouTube, Facebook, and Twitter.

Well-prepared home buyers are usually happy home-buyers, because there will be fewer delays, disappointments, and frustrations for them during the home-buying process.

As your buyer's agent, I will be a tireless advocate and adviser for you. Why not give me a call? Click on Contact Margaret to get started.

Pat Kennedy was published in the Washington Post.  Wow! 

Take a look at her post, and be sure to click through to her article on the new Washington Post blog, Where We Live.  Then, please comment on her post, not mine. (...unless you want to comment on both.)

REAL ESTATE Q & A

Q.  How can I take advantage of today's great interest rates and home prices, when I can't sell my current home?

A.  If your housing needs have changed, welcome to the club. That's a perfectly normal situation that has motivated home sellers and buyers for decades.

In today's market, however, it's not always easy (or even possible) to sell one residence and use the equity to purchase another. That doesn't necessarily mean you're trapped forever in a home that no longer fits your shrinking or growing household... not if you can rent that home for enough to cover your monthly mortgage payment. 

Have you considered these other options for your down payment and closing costs?

• VA Financing - Little or no money down for qualified veterans, as well as active duty military.  Even if you've already used your VA eligibility in the past, you may be able to use it now.  My husband and I have used VA several times for refinancing and purchasing.
• FHA Financing - Only 3.5% down for qualified buyers, within the local loan limit.  This is very popular in today's market.
• Closing Help - FHA and VA allow sellers to pay up to six percent towards "actual costs" of the loan.  Some Conventional loans allow sellers to pay up to three percent of the borrower's closing costs.  With so many homes on the market, many sellers are willing to do this.
  
• Retirement Plan - In some cases, you may be able to borrow your own money previously contributed to a retirement plan.  Check with your plan administrator to find out if this is possible and to determine any penalties or tax obligations that accompany this action.  One of my clients is using this resource to close on his first home in January, and the seller is paying most of his closing costs.
  
• Life Insurance - You may be able to liquidate the cash value of your life insurance.  Check with your insurer to find out if this is an option for you.
• Refinance your current home - Even if you can't sell your current home in today's market, you may be able to liquidate some of your equity for down payment and closing on another home by refinancing.  For some homeowners, refinancing will lower the payment to improve cash flow, even if you don't take cash out. 
  
• Relatives - Even if you can't refinance your current home or use your retirement plan or life insurance for down payment and closing, your parents or another relative may be in a position to do so.  It doesn't hurt to ask. 
  
• Owner Financing - The sellers of some homes on the market may be willing to hold a second trust for all or part of your down payment/closing costs.  My mother recently reminded me that she and my dad sold their home with owner financing during a previous real estate meltdown. 
  

Don't assume you can't get a Conventional loan with minimal down payment.  95% loans are making a comeback in the marketplace, and some well-qualified buyers are taking advantage of them to avoid the high FHA insurance.

If your housing needs have changed, you aren't necessarily trapped in your current home by today's struggling real estate market.  This may be perfect timing for you to make a move.

CROFTON, MARYLAND:  REAL ESTATE QUESTIONS & ANSWERS

Q. I want to sell my Crofton home, but I live in California. Will you mail the paperwork to me?  Fax it?

A. Paperwork that required mailing 10 years ago and scanning/emailing just 2 years ago can now be signed and sent electronically. Let me explain…

________________________

Your autograph is no longer necessary on real estate sales contracts, addenda, and other documents used to buy, sell, and lease real estate.  E-signing is the latest item on a long list of technology innovations since I started in this business. I love it!

The e-Sign Act (2000) and Uniform Electronic Transactions Act (1999) made electronic signatures binding, but there are still a few hold-outs in the banking world that won't accept digital signatures. In these situations, many people use electronic signing in their initial negotiations and then follow up with a copy signed the old fashioned way – with pen and paper – after the agreement is complete.

However, FHA is on board (FHA Letter) and so is the National Association of REALTORS (NAR White Paper), as well as many lenders.

Here's how e-signing works:

1. Your agent goes online to an e-signature company (such as Authentisign or Docusign) to create a new signing. The first step is to name the signing, such as “123 Crofton Parkway - Lease.”

2. Your agent will identify each participant in the new signing by entering their name, email address, role in the transaction, and whether they are a signer, reviewer, or copy recipient.

3. The document (or two or three…) will be uploaded by your agent. It's done the same way you add an attachment to email.

4. Your agent will then go through the document to identify each place where a signature or initials are needed. It's a simple “drag and drop” process. If cross-outs or written changes are needed in the document, your agent will do that electronically and create an initial box next to it.

5. After reviewing the document to make sure nothing has been overlooked, your agent will go to the final step – i.e., sending it to you, accompanied by an email message with any comments or instructions.

6. You receive an email containing the document, along with step by step instructions, and submit it for authentication.

7. After your document is authenticated by the e-signature copy, it is forwarded to the next party. Once all parties have signed, the final copy will be sent to anyone identified as a reviewer (such as your agent) and a copy will be delivered to everyone listed in Step 2.

8. Now all parties have an electronic file of the completed document, which you can save as a PDF file and print for a hard copy.

My clients have used electronic signing for leases, listings, contracts, and random follow-up documents such as the home inspection addendum. Obviously it's ideal for people who are out of the area, but even clients who live in the greater Crofton area love the convenience.

Don't be surprised if there's an electronic signature in your future, especially if you buy or sell a home. This ranks right up there with fax machines, cell phones, online listing data, and electronic lock boxes… just a few of the other technology innovations that have made life easier for consumers and real estate agents alike.

Posted by the author to Focus on Crofton on 11/18/11

Take those elf hats out of your closet… it’s time again for Operation Christmas!

We prepared over 100 holiday gift bags for deployed troops last year, thanks to the incredible generosity of Crofton area residents, including many of the agents at Long & Foster REALTORS, and it's that time of year again.

We already have many donations for this year, without even asking, but we still need the following items on or before October 19:

Assorted toiletries, paperback books, white no-logo socks, 5½ x 8½ inch puzzle books, toys appropriate for a 20-yr. old, tissue packs or wipes, unique gift items (paperback books, LED reading lights, manicure kit, sunglasses, disposable camera) and healthy snacks such as granola bars, trail mix, etc. 

You can drop them off at Long & Foster in Crofton, or send a check to  Margaret Woda at Long & Foster REALTORS, 2191 Defense Hwy., Crofton, MD 21114 for us to purchase gift items on your behalf.

Several elves (Long & Foster agents) will help fill the bags and pack them for shipping on October 21. Everything will be well organized in advance by Crofton Village Garden Club members, so it shouldn’t take longer than two hours, max.  If there are enough donations to ship more than 8 cartons, we'll schedule a second date the following week.

We expect to ship eight cartons of 16 filled gift bags to Operation Give as our contribution to "Operation Christmas Stocking." They cover the cost of our shipping to their warehouse in Utah and shipping to the troops.  This is one of several ongoing operations they have throughout the year, so take a look at their website.

Don't have TIME or MONEY, but want to say "thank you" to our troops by participating in Operation Christmas?  Use this as an excuse to touch base with former clients.  Post it on your Facebook page. Your sphere of influence may surprise you!  

Kickoff  for the 2011 season and the Navy vs. Delaware game is 3:30 p.m. today at the Navy Marine Corps Stadium on Rowe Boulevard in Annapolis.  

Parking at the stadium is reserved for those with seasonal parking passes, but there's plenty of free parking for the rest of us at satellite lots.  The most convenient location for Crofton residents is the Harry S. Truman Park & Ride, off Riva Road.

Free shuttle service begins five (5) hours prior to kickoff and drops riders off in front of the Navy Ticket Office at the Class of 1953 Pavilion. Shuttles run about 20 minutes apart.  After the game, you can pick up the shuttle at the same spot, beginning at the start of the fourth quarter until 90 minutes after the game.  Nothing like door to door service!  Chances are good that you'll walk less between your car and the gate than folks who park at the stadium itself.

Crofton residents who have never attended a Navy game should do so at least once. Pre-game pageantry as the Brigade of Midshipmen march into the stadium and fill the field, one hour prior to the game, is a sight you won't soon forget.  Even if you're not a football fan, per se, you might become a Navy Football fan - just for the game-day experience!

Reserved seating is just $35 for today's game, or you can get "standing room only" tickets for the grassy hill overlooking the stadium at $20 for adults and $12 for kids.  Buy Navy football tickets HERE.  Some games are sold out, including most "away" games, so don't miss your chance to experience Navy Football today!