Stephanie Hostetler REALTOR

Understanding the Closing Process

Stephanie Hostetler REALTOR — Mon, 20 Aug 2012 15:27:00 GMT

Once your loan is approved, you will be ready to take the final step that will lead to the door of your new home. Many homebuyers are intimidated by the closing process, but it’s not as complicated as you may think. In fact, finding the right home is much more difficult than closing the deal.

Making It Official

The closing process begins with the borrower, the seller and lender meeting in the presence of an attorney or closing agent. This is a person who is authorized to oversee, create or certify contracts, deeds and other legal documents. At the conclusion of the signing, the attorney will provide their stamp and signature, which certifies the identification of everyone present and the signatures on the loan application.

Handing Over The Cash

When you meet with the lender to close the loan, you will be required to produce your down payment and, if required, the closing costs. Ask your lender about acceptable payment methods, which may include a cashier’s check or other certified funds. If you have an account with the lender, a personal check may be accepted in some circumstances.

Review The Loan Documents

At closing, this will be your final opportunity to review the loan documents. You should make sure that everything is accurate and as promised, including the interest rates and loan term. It’s also important that you confirm that the names and addresses are correct, along with other important information relating to the loan. If anything is inaccurate, now is the time to make changes. Never sign the loan documents until everything is perfect.

Sign Here, Please

Once everything is verified and the loan documents are approved by both you and the lender, it’s time to sign on the dotted line. Believe it or not, this is one of the most nervous times for a homebuyer. If you’ve chosen the right home and are comfortable with your loan, however, it can also be one of the most exciting. Once the documents are signed, the attorney will affix his/her stamp and signature.

It’s A Done Deal

The final step in the closing process is a simple handshake. Most lenders and homebuyers will extend their hands and, with a smile, the person who was just a homebuyer is now a homeowner. Now that’s something to shake on! With the keys to your abode now firmly in hand, it’s time to get moving and turn your new house into a home.

Types of Home Loans

Stephanie Hostetler REALTOR — Thu, 05 Jul 2012 20:55:00 GMT

If you are in the market for a new home, it's important that you know what type of loans are available to you. Whether you have perfect credit, a few financial blemishes or are just starting out in life and want to own a home, understanding your options will prove to be invaluable during your house hunting excursion.

Fixed Rate Mortgage

A fixed rate mortgage is one of the most popular home loans and is commonly available as a 15 or 30 year term. Because it offers the borrower an assurance that both the principal and interest will remain the same throughout the term of the loan, a fixed rate mortgage is ideal for many.

Adjustable Rate Mortgage (ARM)

An adjustable rate mortgage, also referred to as an ARM loan, is one in which the interest rates adjust according to the current market. This means that interest rates can either increase or decrease at regular intervals, based on established market indexes.

Interest-Only Mortgage

An interest-only mortgage is one that requires the borrower to pay interest only payments for a preset number of years during the loan term. After that initial period, the monthly payments will then adjust to include both the principal and interest remaining on the loan.

Balloon Mortgage

A balloon mortgage is a loan that requires monthly payments that do not completely repay the loan. At the conclusion of the balloon term, a large lump-sum payment is due to pay off the balance of the loan.

FHA/VA Loan

An FHA and/or VA loan are mortgages that are guaranteed by the government. An FHA loan is easier to qualify for than a conventional mortgage, requires a lower down payment and is guaranteed by the Federal Housing Authority. A VA loan, which is for veterans only, is guaranteed by the Veteran's Administration.

Construction Loan

Construction loans are available for borrowers who are purchasing or building a newly constructed home. These loans, which are offered at either fixed or adjustable rates, require slightly more paperwork and inspections than a conventional mortgage.

Owner Financing

Many homebuyers, especially those with a limited or poor credit history, prefer to seek owner financing when purchasing a new home. Because there is no credit check, buyers will not be judged for past credit problems. In addition, owner financing may offer a low down payment requirement and competitive interest rates.

Things You Need When Applying For A Home Loan

Stephanie Hostetler REALTOR — Sat, 28 Apr 2012 19:44:00 GMT

Congratulations! Now that you have found the perfect home, all that's left is getting the perfect mortgage. In order to do that, you will have to know what your lender needs from you in order to get your loan application approved.

Property Description

When applying for a home loan, you will need to provide the lender with detailed information regarding the property that you intend to purchase, including a physical address, what type of loan you are requesting and how you obtained the funds to be used as a down payment.

Borrower & Co-Borrower Information

All persons named on a home loan must be able to provide their name, date of birth, current address, former address (if within the last two years), marital status, current and former employment information, telephone number and social security number.

Most lenders require tax returns for the two years preceding the loan application, along with current paystubs or, if self-employed, a year-to-date profit/loss statement.

Current Mortgage Expenses

An important part of every home loan is affordability, which is why your lender will need to know how much of your income is available to pay for a new home. If you have a current mortgage, be ready to provide a detailed list of expenses that you pay each month in relation to the property. This includes a mortgage payment, real estate taxes, mortgage insurance, homeowner's association dues, utilities, etc. If you plan to sell the home, let your lender know so that they will understand you are simply replacing one debt with another.

Yes Or No

Almost every loan application asks both the borrower and co-borrower (if applicable) to answer a few simple yes and no questions on the application. Questions pertaining to outstanding judgments, bankruptcy filings, foreclosures, lawsuits, alimony, child support and citizenship status are standard and should be expected when applying for a home loan.

Statement Of Assets & Liabilities

When applying for a home loan, both the borrower and co-borrower will be required to disclose all of their current assets and liabilities. An asset is property, either real or personal, that is owned and is of value. A liability, on the other hand, is a financial obligation for which one is liable.

A loan application will request information relating to assets and their current market value, including automobiles, real estate, stocks, bonds, life insurance (cash value), business net worth, personal property, etc. If any amount of money is owed on these properties, the lender will request information relating to the unpaid balance in order to determine the actual equity that the borrower has in any given property.

Step-By-Step Guide to Obtaining A Home Loan

Stephanie Hostetler REALTOR — Sat, 21 Apr 2012 15:17:00 GMT

Now that you've decided to purchase a new home, it's important to know what to expect throughout the loan process. With the right knowledge, the road to home ownership is just ahead.

Check Your Credit

Before you even think about applying for a mortgage, it's important to know where you stand from the lender's point of view. Checking your credit report is a good idea for many reasons, but it's an essential step in your journey toward buying a home.

Every 12 months, you can request a free copy of your credit file from each of the three major credit reporting agencies - Equifax, TransUnion and Experian. Look for inaccuracies, outdated information or anything that requires your attention. If you spot anything, file a dispute right away to get the information corrected. A free credit report does not include your FICO score, which is available from the credit bureaus for a small fee. Most lenders use this number in determining your interest rates and creditworthiness, so it may be a good idea to check it out for yourself first.

Gather Your Documentation

When you apply for a loan, you will be asked to provide certain documentation and/or information relating to your current financial status, employment, assets (including both real and personal property) and liabilities. Before meeting with your lender, make sure to have your current paystubs, bank statements, tax returns for the two years preceding your application and information relating to any debts that you currently owe. If you are self-employed, you will also be asked to provide a year-to-date profit/loss statement, which is also known as an income statement.

Meet With Your Lender

Now that you have your documentation together, it's time to meet with your lender. At this point, you will complete a mortgage application and submit it for approval. Depending on the lender, it may take anywhere from several hours to several days before learning whether or not you are approved. In most cases, however, a lender can provide you with an answer within 24 hours.

Last Minute Details

If your loan is approved, it's time to move forward to the next step in the mortgage process. Your lender will order an appraisal and inspection to be completed on the property. This is just as much for your own protection as it is for the lender because it may reveal hidden problems within the home. The inspection and appraisal can take up to 30 days, at which point the results will be forwarded to the lender. If all goes well, you will close on the loan and get ready to move into your new home.

Shopping for the Best Home Loan

Stephanie Hostetler REALTOR — Fri, 30 Mar 2012 16:49:00 GMT

Finding the perfect home is a task, but shopping for the best home loan can be even more tedious. With so many lenders promising low rates, closing costs and little or no down payment requirements, it’s often difficult to know which way to turn. Luckily, there are several steps that you can take to find the right lender for your individual needs.

Assess Your Situation

Do you know what your credit score is? If not, you should. Most lenders rely on this triple digit number to determine both your creditworthiness and interest rates. If you have excellent credit, you can probably work with almost any lender. If you have severe blemishes in your financial past, however, finding the right lender may require a little more footwork.

How much money do you have for a down payment? If you are on a budget, you will need to choose a lender that can help to get you into a home with a minimal down payment. Knowing where you stand will give you a good idea as to which lender you need to work with.

Compare Rates

As is the case with anything in life, it pays to shop wisely. Because a home is the largest investment that most people will ever make, it stands to reason that comparison shopping is a must. As you speak with various lenders, ask about their rates, loan terms, qualification process and down payment requirements.

Interest rates change often, which means locking in your rates when they are low can save you a bundle of money. Because there are so many lenders competing for your business, you will be greeted with plenty of appealing offers, including low rates, closing costs and down payment requirements.

Demand The Best

You are the one buying the home, so you should be the one to choose the length of your loan term. With the exception of a situation where payments are simply unaffordable, it’s up to you to decide how long you want to pay for a house. Many homebuyers prefer a longer loan term to keep the payments low, while others want to get the home paid for as quickly as possible with a shorter term. It’s important to keep in mind that the longer you pay for a home, the more money you will end up spending in interest.

It’s a good idea to talk to your lender about their willingness to accommodate your needs. If you’re in doubt about which lender to choose or are new to the area and need a little guidance, ask your REALTOR® for a referral. He/she knows the business and will be more than happy to assist you in making your dream of home ownership become a reality.

How Much House You Can Afford

Stephanie Hostetler REALTOR — Fri, 23 Mar 2012 18:11:00 GMT

There are a number of factors that can contribute to the affordability of a house and, as a potential homebuyer, it’s important that you know what type of mortgage payments are within your budget.

Debt-To-Income Ratio

As a homebuyer, your first consideration will be the amount of your monthly mortgage payments. If you owe a lot of debt, lenders may consider you to be a high credit risk, which makes debt-to-income ratio a leading factor in determining how much of a house you can afford.

Most lenders will discount any loans that you will have paid off within one year when determining how much of a home you can afford. As a general rule, your mortgage payment should not exceed 25-30 percent of your monthly take-home pay.

Loan Term

Although you will end up paying more interest in the long run, you will find that you can afford a more expensive house if you request a loan term of 25-30 years, compared to a shorter term of 15 years.

Interest Rates

When you look at an interest rate, all you see is a number. Hopefully, it’s a single digit that’s comparable with current market rates. Most homebuyers already know that their interest rate affects their monthly payment which, in turn, is determined by the borrower’s income. Lower interest rates mean that you can afford a larger principal loan amount, which means a more expensive house.

Credit History

Because your past credit history will play a large role in determining your interest rates, it will also impact the affordability of a house. For instance, a buyer who pays six percent interest will save a considerable amount of money over a buyer who pays eight percent interest on their home loan. It may not seem like much now but, when averaged over time, the savings could be tremendous.

Down Payment Amount

Believe it or not, the amount of your down payment will not only show the lender how serious you are about buying a home, but it will also affect your ability to afford a particular house. For instance, if you were to qualify for a home loan of $200,000, but your dream home was currently listed for $250,000, a down payment in the amount of $50,000 would get you into the home.

The above scenario is just an example, but it does show how a down payment can affect the price of the home that you are able to afford. Some lenders may only require a five percent down payment, but you are free to pay as much above that as you wish. A larger down payment can also reduce the principal loan amount, which thereby reduces the monthly mortgage payments.

Calculating Your Monthly Mortgage Payments

Stephanie Hostetler REALTOR — Tue, 14 Feb 2012 17:16:00 GMT

Calculating Your Monthly Mortgage Payments

One of the most important factors to consider when buying a new home is affordability. As a general rule, mortgage payments should not exceed 25-30 percent of your monthly take-home pay. The best way to know what you can afford is to determine the possible payment range by comparing the price of the home with other essential ingredients.

Figure Out How Much You Want To Borrow

Your first step to calculating your monthly mortgage payment is knowing how much you want to borrow. This can be determined by subtracting your down payment amount from the purchase price of the home, which will give you the amount that you will need to request from a lender.

Know Your Rates

The next step is to determine the current interest rates for the purchase of a home. Rates vary and may change often, so check with your lender for current rates. It’s worth noting that the interest rates you receive will, in part, be based on your credit history. This means that knowing your FICO score and credit rating will give you a good idea as to how your interest rates will be calculated.

Choose Your Loan Term

Your monthly mortgage payments will be determined by a number of factors, including the term of your loan. If you were to borrow $250,000, your monthly payments would be less with a 30-year mortgage than with a 15-year mortgage. The reason is because it would take larger monthly payments to get the loan paid off quicker, which is why you will need to select a loan term before calculating your payments.

Additional Costs To Consider

Your total mortgage payment will include taxes, homeowner’s insurance and possibly even private mortgage insurance (PMI) if your loan requires it.

Just The Facts & Figures

Now that you know how much you need to borrow, have chosen your loan term and are familiar with the current interest rates, it’s time to calculate your payment. You can access the financial calculator on my Web site or you can get an estimate by speaking with your lender.

If you still need help in calculating your potential monthly mortgage payments, don’t hesitate to ask your REALTOR®, mortgage broker or lender.

Decorating for Christmas the Green Living Way

Stephanie Hostetler REALTOR — Mon, 05 Dec 2011 14:57:00 GMT

Christmas is probably one of the easiest times of the year to use environmentally friendly decorating ideas, and given the more traditional decorating trends for the season and the ever increasing need for all of us to contribute to making the planet a greener place, it's never been easier. Here a few great ways to decorate your home for the holidays and be greener at the same time!

Green Tree Ideas:

Replace your old Christmas lights with new LED lights. They use less electricity and last longer than the older ones.

If you put up a real tree for the holidays consider using a live tree that you can plant after the holidays, or be sure you recycle your tree after the season is over.

Only purchase your real tree from a Christmas tree farm or retailer who purchases from farms. Never cut down a tree in a conservation area or in a public park.

Consider using an artificial tree; be sure that it is recyclable and not made using any harmful materials or chemicals.

Use natural products to decorate your tree. Berries, popcorn, and other food items that don't perish quickly are a great addition to any tree.

Green Home Décor Ideas:

Use real garland and other decorations from nature. Most garden centers are great places to get environmentally friendly decorations for the Christmas season.

Be sure that you purchase decorations and other holiday items that are durable and reusable year after year. If you want holiday tableware avoid the paper kind, and choose products that are made locally using environmentally friendly products.

If you put lights on the exterior of your home you may want to reduce the number of hours you turn them on each day, and only have them on when someone is home.

For wrapping and gift giving, use papers and materials that are reusable and recyclable.

These are just a few ideas that you can use to make your Christmas more green while still keeping the holiday spirit alive! This is a great time of year to show our love for our planet and our fellow man, and keeping the holidays environmentally friendly is a great way to do that.

Thanksgiving Menu Ideas

Stephanie Hostetler REALTOR — Fri, 11 Nov 2011 17:41:00 GMT

Thanksgiving is an annual national holiday commemorating a harvest festival celebrated by the Pilgrim Fathers in 1621. This day, which is used to express gratitude, is observed in the United States on the fourth Thursday in November. One of the greatest traditions of Thanksgiving is that of a family dinner, which means menu planning is a must. Here are some Thanksgiving menu ideas that will fill your table and the appetite of your guests:

Main Course

The traditional main entrée for Thanksgiving is, of course, turkey. If this isn't quite your taste, you may want to consider serving ham instead. This is a popular alternative and is a pleasing main course for your dinner guests.

Side Dishes

When it comes to serving a meal, the side dishes are almost as important as the entree. Popular Thanksgiving side dishes include mashed potatoes with turkey gravy, dressing, green beans, sweet potatoes, macaroni and cheese, rolls and cranberries served with cranberry sauce. If you have a large family, it may be a good idea to prepare several side dishes so that everyone will be able to find something that they like.

Dessert

What meal would be complete without the perfect dessert? Whether it's a pumpkin pie, chocolate pie or other favorite flavor, this traditional treat is common at the conclusion of a Thanksgiving dinner. If you are planning for a large gathering, consider serving several different pies in an effort to accommodate a variety of taste buds.

The Benefits Of A Homemade Meal

Believe it or not, some may choose to dine at a restaurant on Thanksgiving instead of preparing a homemade meal. Although dining out may be easier, it cannot replace the taste and camaraderie of a family dinner at home. Many may shy away from preparing a large Thanksgiving meal because it seems intimidating to cook for so many people. However, with the right recipe, cookware and a little knowhow, your next holiday meal can be a breeze.

Rounding Up The Perfect Recipes

If you know what to cook, but still need a little help with the details, consider looking for the perfect recipes to turn your meal into a masterpiece. While many recipes are available online, many turn to cookbooks and/or women's specialty magazines for popular recipe and preparation ideas. As the Thanksgiving holiday approaches, there is no shortage of publications containing ideas for creating the perfect meal. Now that you have the perfect menu idea, it's time to start putting your plan into motion. By planning ahead, your Thanksgiving meal can be stress free and enjoyable for you as well as for everyone who joins you. And don't lose sight of the reason for your efforts - a time for family and friends to celebrate and give thanks.

Buying A Home With Past Credit Problems

Stephanie Hostetler REALTOR — Sat, 17 Sep 2011 14:07:00 GMT

Buying a home can be both exciting and stressful but, for those with past credit problems, the process may also seem intimidating. The good news is that many lenders have adapted to the idea that many hopeful homeowners simply need a second chance, which means that past credit problems no longer have to define your future.

Credit Blemishes

When life unexpectedly takes a turn for the worst, it's not always possible to come out without a few bumps and bruises. Every day, people are faced with late or missed credit card payments, mortgage foreclosures, bankruptcy proceedings, auto repossessions and even civil judgments that will affect their credit reports for years to come. Whether it's from a job loss, injury or just a simple case of temporary hardship, credit blemishes are often a part of life. The good news is that they no longer have to prevent you from becoming a homeowner.

Give Yourself A Little Credit

After experiencing a credit problem, most lenders will want to see an attempt to rebuild your credit through a steady payment history with a new account. This can be accomplished by applying for a credit card and maintaining a responsible use of the account. If you aren't approved for an unsecured card, you can always apply for a secured credit card. Either will rebuild your credit over time and will help to show lenders that your past credit problems are just that - in the past.

Clean Up Your Credit Report

Before applying for a home loan, make sure that you check your credit report from each of the three major credit reporting agencies. Every 12 months, consumers can request a free copy of their credit report from Experian, Equifax and TransUnion. If anything is incorrect or found to be inaccurate, filing a dispute with the credit reporting agency can help to get the information corrected before speaking with a lender.

When you apply for a home loan, the lender will access your credit report for the purpose of determining your creditworthiness. In an effort to ensure that you have the best possible chance at being approved for the loan at the best possible interest rates, making sure that your credit report is accurate is a must.

Save Up For A Down Payment

Some homebuyers often qualify for a mortgage with little or no down payment, but those with past credit problems may be required to shell out up to 35 percent or more for a down payment on their new home. A buyer who pays a larger down payment obviously has more vested interest in the home and may, thereby, be less likely to default on a loan. If you have past credit problems, check with your lender about specific down payment requirements and start saving!

Creative Financing Options

If you've exhausted all of your conventional efforts and are still turning up empty, don't give up just yet. Alternative financing is an option that many homebuyers use to purchase a home. Your REALTOR® can provide you with details regarding any lease purchase and/or owner financing properties, which may require no credit check, no bank qualifying, a low down payment and competitive interest rate options.

Single Story For Sale in Lincoln County

Stephanie Hostetler REALTOR — Fri, 19 Aug 2011 06:00:00 GMT

River access!

• 100 sq. ft., 1 bath, 3 bdrm single story - MLS® $72,000

Lincoln County, West Virginia - On the river! Great one story with tons of storage. The over-sized living room has brick fireplace. A partial basement, crawlspaces and storage building. Extra room off of garage would make nice workshop. Room for entertaining. Nice and clean.

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Single Story For Sale in Rolling Acres

Stephanie Hostetler REALTOR — Wed, 13 Jul 2011 06:00:00 GMT

Unbelievable lot!

• 1,370 sq. ft., 2 bath, 3 bdrm single story - MLS® $150,000 - PRICE REDUCTION!

Rolling Acres, Winfield - Fabulous all brick rancher with double, level lot. Highlights include solid oak trim, formal dining and living areas, highly efficient galley kitchen, family room with pellet stove. Great open floor plan. Perfect home for entertaining, inside and out!

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Single Story For Sale in St. Albans

Stephanie Hostetler REALTOR — Mon, 27 Jun 2011 06:00:00 GMT

• 984 sq. ft., 1 bath, 2 bdrm single story - MLS® $69,900

St. Albans, Kanawha County - Well kept home with many updates on fenced, level lot. Over sized two car garage with storage.

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