Virginia Mortgage News and Views

VA Appraisers

99.5% of the time, I have no issues with the appraisers who currently are allowed and sanctioned by the VA to do residential appraisals. Historically, they get a bad rap for a number of reasons.... but, for the most part I am totally satisfied with them and their performance.

Recently, I had a very bad experience with a VA appraiser who demonstrated a basic level of disrespect.

The story goes like this.

When a VA appraisal is ordered through the proper procedures, then the assigned appraiser has service level agreement with the VA. This agreement is pretty simple. They must turn in the appraisal within 14 days of assignment. Sounds pretty simple.

What happens when this does not occur on time? The entire process of approving loans and closing on time is jeopardized. The very nature of a VA loan is the fact that all parties involved are working for and to the benefit of our Veterans and Active Duty personnel. The timing is critical to deliver the loan approval and be ready to close as agreed upon by all parties.

When there is a weak link in the chain of approval, such as the appraiser not turning the report on time, then it creates a huge level of anxiety on everyone's part. The fact of the matter is simply one of disrespect.

It's not about the lender, the seller, the real estate agent's involved in the transaction. It's about the Veteran or the Active Duty personnel who is depending on delivery of the loan as agreed to.

The proper procedures have been followed with the VA to report this particular appraiser as to his performance or lack there of.  Maybe, just maybe, he will have more respect for his role, and realize the trickle down effect of his actions.

Well, it is over....

It has been awhile since the real estate business has been without a helping hand from Uncle Sam. Of course what I am referring to is the sunset of the Federal Tax Credit for 1st time home buyers... and most recently, the move up buyer. It was officially over yesterday, April 30, 2010.

Was it a success? Well, from my perspective, I believe it was. I counseled many FTHB's (First Time Home Buyers) during the last several months and many of them were not even aware of the Tax Credit existence. It was considered a bonus to purchasing a home. Interesting enough, my message to these folks during my strategy session with them was not to buy soley based on the receipt of the tax credit.

Buying a home is obviously one of the biggest purchases anyone will ever make. It is a very serious event and the most important thing for home buyer to understand is the financial responsibility that comes along with it.

That brings me to another point and observation after many years in the real estate and loan origination business in the Richmond, Virginia area. It has always been the accepted norm that a homebuyer contact a real estate agent first when they decide they want to become a homeowner or decide to sell their current home and move up to another.

Is that really the correct way to approach a major purchase? Doesn't it make sense to meet with a home loan professional first and truly determine what the best plan of action is from a financial point of view before you even set foot in a home for sale? I believe it is.

You would not believe the number of times I get a call from an individual who has gone out with a real estate agent and legally obigated themselves to purchase a home without even knowing what their payment will be... much less knowing what is involved in the entire process. Oh sure, they have gotten some ideas from their agent as to what the payment might be. But, is that really the correct way to enter into this major purchase. I don't think so.

At Village Bank Mortgage, my role is to educate the consumer before they enter into a legally binding contract with legal consequences within the 4 corners of each page of the contract.

Education is the key to a successful purchase or sale. The more you know up front BEFORE you start shopping for a home the better off you will be.... I guarantee you will be in a better position.

You will have plenty of time to choose the right real estate agent when you know the facts about the entire process. Most importantly.... you will be financially confident in your decision to purchase.

If you have taken the time to explore this website, you probably have noticed that Jamie Lee Chafin, a lifelong Richmond, Virginia native and a proud associate and manager at Village Bank Mortgage, takes his job very seriously. After having been an agent for many years and now being on the money side of a real estate transaction for over 14 years, my message to you is simple. Know all aspects of the home loan first and get the facts about the process first... then go find an agent. You will save thousands of dollars by doing it this way and have confidence along the way. It just makes sense.

Jamie Lee Chafin

Village Bank Mortgage, Richmond, Virginia, 804.897.1000

Sunset on the the Tax Credit

As all of us in the the Richmond, Va. area have thoughts of spring and longer days with plenty of sunshine, their is one sunset that is quickly approaching.

The federal tax credit for first time homebuyers and also move up buyers is coming to an end. The official cut-off for totally ratified contracts is April 31, 2010 with your closing taking place by June 30, 2010. To date, it has been surprisingly lackluster as to the amount of activity in the Richmond market. Certainly, the last part of January and almost the entire month of February being snow bound has had an impact on all of us in Virginia.

With the weather being somewhat bleak, a trip to Florida was just what the doctor ordered. I flew down to the Keys and spent 4 days in and around Key West. What a fine time! It had been over 20 years since my last visit, and how things had changed...but, also remained the same. The most shocking to me was the presence of the cruise ships being in port in Key West! The number of tourists was incredible! They were all there with seemingly the same intent as me.... relaxation and a possible recharging of the batteries. After finding what I believed to be a local place, the Schooner Wharf, the relaxation concept kicked in and I got into the little latitudes attitude!

Village Bank Mortgage and Village Bank are still bringing in great results for me and all of my customers. In April, we will begin the Federal Home Loan Bank Grant program. This program offers up to a $ 10,000 dollar matching grant for first time home buyers. WOW! Needless to say, what monies are allocated to us are absorbed quickly by folks who meet all the applicable eligibility characteristics of this great program. In order to see if you meet the requirements, it would be wise to contact me as soon as possible. The grant money goes fast!

Lastly, my branch is up and running. You can find me in Brandermill out in Midlothian! The easiest way to contact me is by dialing 804.897.1000!

Until next time, be safe and as always, I am here to be of service to you!

Let's see, I left the big bank a little over a month ago. I have to say I do not miss it all. It is probably one of the best decisions I have ever made. The big banks just don't get it!

As some of you know, I decided to join Village Bank and Village Bank Mortgage in Richmond. What a blessing it has been!

Everyone at Village Bank has extended to me their support and willingness to help in my transition. I personally thank each and everyone of my new family members. What a great place to work and the meaning of customer service truly is alive and well at Village.

My new office in Midlothian, Va. is a little behind schedule. The good news is that it is back on track.. now. For those of you in the Central Virginia area, you can appreciate my comment regarding snow and ice. I certainly have seen enough as we end 2009 and begin 2010. It would be fine by me if 2010 would be "snow free".

As a reminder, my new location will be in Brandermill area. The exact address is 13521 Waterford Place, Midlothian, Va 23112. We are building out the existing Village Bank branch and the completion date is now scheduled for January 8th. Of course, this is subject to change. It seems as if Comcast has forgotten how to install internet service to an existing building. Imagine... an issue with Comcast?

I look forward to helping everyone in 2010!

Jamie Lee Chafin

At Village Bank, you're a neighbor... not a number!

Versus October, November's ex-auto sales were up by more than 1 percent. Analysts expected the increase, but not an increase of this magnitude.

"Ex-auto" means that motor vehicles and parts are excluded from the data.

Home values are increasing in many parts of the country and household net worths are rising, too. Therefore, we can infer from the Retail Sales report that U.S. consumers are starting to feel better about their individual finances, and about the economy overall.

To homebuyers and rate shoppers, strong Retail Sales data may foreshadow higher mortgages ahead. This is because sales data is a by-product of consumer spending and consumer spending accounts for more than two-thirds of the economy.

As spending increases, the economy tends to expand, drawing investment dollars into stock markets and away from bond markets -- including mortgage-backed bonds, the basis for conforming mortgage rates.

Less bond demand leads to higher rates and, therefore, lower levels of home affordability.

Despite the Holiday Season momentum, however, 2009 will likely mark just the second time that Retail Sales data fell year-over-year since the government started tracking it 40 years ago. The other year was 2008.

But, if November's Retail Sales is a reliable indicator of consumer sentiment overall, we should expect 2010 to rebound strongly. And when it does, mortgage rates should suffer.

The housing market is recovering, mortgage rates are still near all-time lows, and the government is offering an $8,000 tax credit to qualified buyers through April 30, 2010. If you plan to buy a home next spring, you may want to consider moving up your timeframe. Waiting may be costly.

Brought to you by Jamie Lee Chafin and Village Bank Mortgage. Where your're a Neighbor, not a number!

The time has come.... actually long overdue.

After working with 3 of the largest mortgage companies in the United States for over 12 years, I have decided to bring it all back home.

I have joined Village Bank and their mortgage company, Village Bank Mortgage Corp. as a manager and will be continuing my role as a loan originator as well.

The reason why?

It is very simple. They believe and have a passion for customer service and a true appreciation for you.

Their slogan says it all. Where you are a neighbor, not a number.

The big banks and mortgage companies have lost sight and have no passion at all for the customer. They simply do not care any longer. Their mentality of "too big to fail" is prevalent in all they do. The last thing on their mind is providing you, the customer, with any form of complete satisfaction. They truly believe that you are nothing except another avenue for them to take your money and give you very little in return. After all, their global presence means more to them than anything.

I am done with that.

Isn't it time you considered what benefit you receive from dealing with the large institutions?

More Later.

Jamie Lee Chafin

With mortgage rates near historic lows, borrowers looking to purchase a home are increasingly curious what they’re eligible for.

A buyer recently asked me, “What mortgage rate can I get with my credit score?” So I figured I’d try to clear up a somewhat complicated question.

One thing that determines what mortgage rate you’ll actually receive is credit scoring, though it’s just one of many factors.

Along with credit scoring is documentation type, property type, loan amount, loan-to-value, and much more.

Using credit score alone, it’s impossible to tell a potential borrower what they may qualify for without knowing all the other important pieces of the puzzle.

Generally speaking, a credit score above 720 is the highest bracket, meaning if all other areas of your financial profile are in good standing, you can qualify for a mortgage at the lowest possible rate.

Borrowers with credit scores of say 680, 660, and 620 will have increasing difficultly securing financing, and will receive higher interest rates if a mortgage is ultimately granted.

Unfortunately, I can’t say you’ll get X or Y rate if you have Z credit score, there are just too many factors all in play at once.

Credit score is certainly an important determining factor in both the interest rate you’ll receive and whether you’ll receive financing to begin with, so it’s recommended that you check your credit score months before applying for a mortgage to see where you stand.

• The $8,000 tax credit is available for first-time home buyers only.
• The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the 3-year period prior to the purchase.
• All U.S. citizens who file taxes are eligible to participate in the program.

Payback Provisions

• The tax credit is a true credit. It does not have to be repaid.
• The only repayment requirement is if the homeowner sold the home within three years after the purchase.

Income Limits

• Home buyers who file as a single or head-of-household taxpayers can claim the full $8,000 credit if their modified adjusted gross income (MAGI) is less than $75,000.
• For married couples filing a joint return, the income limit doubles to $150,000.
• Single or head-of-household taxpayers who earn between $75,000 and $95,000 are eligible to receive a partial first-time home buyer tax credit.
• Married couples who earn between $150,000 and $170,000 are eligible to receive a partial first-time home buyer tax credit.
• The credit is not available for single taxpayers whose MAGI is greater than $95,000 and married couples with a MAGI that exceeds $170,000.

Effective Dates for the Tax Credit

• First-time home buyers would receive an $8,000 tax credit for the purchase of any home on or after January 1, 2009 and before December 1, 2009. To qualify, you must actually close on the sale of the home during this period.

Tax Credit is Refundable

• A refundable tax credit means that if you pay less than $8,000 in federal income taxes, then the government will write you a check for the difference.
• For example, if you owe $5,000 in federal income taxes, you would pay nothing to the IRS and receive a $3,000 payment from the government.
• If you are due to receive a $1,000 tax refund from the government, your refund would grow to $9,000.
• Buyers can take advantage of the tax credit on their 2008 or 2009 income tax return.

Types of Homes that Qualify for the Tax Credit

• All homes, whether single-family, townhome or condominium will qualify, provided that the home will be used as a principal residence and the buyer has not owned a principal residence in the prior three years. This also includes newly-constructed homes.

For more details on the tax credit, go to www.federalhousingtaxcredit.com

So how do you find the best mortgage rates in Richmond and the Commonwealth of Virginia?

The lowest rate is not always the best rate for your situation. The rate is a vital component of your mortgage...the total cost approach to acquire the rate for your mortgage is the correct approach for you to determine what is right for you.

You need to have a high level of trust with who you are working with and that they are true mortgage professionals. By choosing a Certified Mortgage Planning Specialist (CMPS) , you are on the right track. Below is a list of data that is needed, at a minimum, before an accurate rate can be quoted to you. 

The 17 pieces of data needed (at a minimum) to quote a mortgage rate:

1. Purchase or refinance
2. Loan amount, prepay penalty? (if you are refinancing)
3. Source of down payment (purchase)
4. Credit score
5. Type of property (condo, town home, single family, etc.)
6. Cash out or no cash out (refinance)
7. Source of income (w-2, self-employed, etc.)
8. Address
9. Escrows (with or without in your payment)
10. Appraised value or purchase price
11. Primary residence, second home or investment
12. Type of loan (adjustable, interest only, etc)
13. Term (30yr, 20yr, etc)
14. How long you’ve been on your job (very important for self-employed folks)
15. Any bankruptcy in last 7 years
16. Have you had your property listed for sale in the last 6 months (if refinancing)
17. US citizen

Run, don’t walk and don’t look back.

If you are talking with a loan officer and after just a couple of questions, he or she blurts out a rate or rifles out Good Faith Estimates, hang up the phone. They don’t have enough information to give an accurate mortgage quote…so their intentions are now clear…they either don’t care about you and only care about themselves…or they do not have the experience…or they will tell you want you want to hear. Either way….run, don’t walk, and don’t look back!

Better yet, learn how to locate, interview, and hire a local, ethical, competent mortgage provider whose Good Faith Estimates you can trust. A professional mortgage banker will guarantee their Good Faith Estimate as to all costs and fees that they are in control of. I know I do all the time.

Jamie Lee Chafin is a Certified Mortgage Planning Specialist (CMPS) and was awarded the 2008 Lender of the Year by the Sales and Marketing Council of the Home Builders Association of Richmond.

It’s that simple…

Jamie Lee Chafin