FINANCING YOUR RESTON HOME

Prices for Condos in Reston begin in the $175,000 to luxury water front condos in the $1,500,000 range. Town homes start at about $235,000 up to about $1,200,000. Detached single family homes begin at about $1,700,000 for luxury properties on almost an acre of land.

Just one of many home styles found
in Reston, Virginia real estate.

We will describe the mortgage process further down this page, but first, you should understand what a mortgage is and how it works The procedure will vary little from lender to lender, but since the procedure is basically simple, you just need to understand that:

Lenders lend large amount of money.
Lenders want to lend to folks who will repay the loan.
Lenders secure their loan with a lien against your home.
If you pay your monthly mortgage payment, every thing is fine.
If you default, the lender will foreclose the property.

Sounds simple doesn't it. It can be. But, unless you've obtained a mortgage loan before, sometimes buyers don't understand why lenders need particular information.

WHAT EXACTLY IS A POINT?
Points are pre-paid interest. When a lender quotes a interest rate, they will quote one rate for a loan with no points, or pre-payment, and a lower interest rate if you pay points. Each point is one percent (1%) of the loan amount. It's that simple. You pay points to reduce the interest rate on your loan.

PREPARING FOR RISING MORTGAGE INTEREST RATES

For the past two years or so, the mortgage market has been in a period of change. Many home buyers, in order to finance the purchase of every larger homes, obtained loans that turned out to be very risky and are not faced with adjusting ARM loans that are driving mortgage payments up higher, some time several hundred dollars more than the original starting payment. While interest rates have increased about a percentage point, they are still at a good rate for most real estate in Reston.

Interest Rates for Home Mortgages

The home loan market has changed dramatically in the past 50 years. For one thing, in 1955, a family would save for many years for the required 20-30% down payment to purchase a home. Today, with mortgage insurance, home loans can be obtained with 10% down, 5% down, and for a price, even no down payment. For sure, mortgage companies will be charging a higher interest rate when the down payment is lower, but that's a small price to pay for the benefits of home ownership. Home prices in Reston must also be considered. While not quite as expensive as McLean or Vienna, Reston, because of the location, amenities, beauty and general wonderful quality of life is more expensive than some other nearby areas. But, a home in Reston is a good investment.

Ask Homefinders.com for a good lender referral. Homefinders.com is not affiliated with any lender. We recommend the services of lenders with whom we've done loans in the past and we know them to provide good service and offer fair rates.

WHAT KIND OF DOCUMENTATION WILL I NEED FOR MORTGAGE APPLICATION?
Generally, the documents needed will verify your income and debt. The list below is the minimum for VA, FHA and conventional loans.
Past two years W-2 Forms
Current address
Employment addresses
Recent bank statements
Name and address of current creditors
Social Security numbers
Certificate of Eligibility for VA buyers|

If you are self employed, you will need two years tax returns and a profit and loss statement, simplified. Don't forget, your agent will be available for consultation when you have a question. Relax and enjoy your home search.

Your lender will have a copy of the Contract of Sale for the home you are purchasing. Your lender will process the loan and have the mortgage approved prior to the date of settlement date in the Contract. The lender will send the proceeds of your home loan to the settlement company along with instructions to the title company about what charges are and the title company will conduct the settlement meeting. You sign the documents accepting the loan, the sellers signs the deed over to you, you get the keys to your newly purchased home.

Now, wasn't that easy??