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Archive for the ‘Mortgages’ Category

Rates today improved and home owners in Charlotte NC could benefit from refinancing their Charlotte home! Many of our customers are saving a ton of money each month by refinancing and consolidating debts into one low fixed rate mortgage!

Under current FHA mortgage guidelines, you could do a cash out mortgage refinance in Charlotte and not be charged a higher rate just because you did a cash out refinance. Most Fannie Mae and Freddie Mac loans actually charge a higher interest rate for your mortgage refinance when you get cash out to pay off debt. SO this makes the FHA mortgage loan a much more attractive option.

Take a look at this example:

What could you do with another $552 a month?!?

Apply now for your Charlotte Mortgage Refinance Loan.

A Credit Tip Concerning FHA Mortgages

Important Notice! You may be hurting your chances to get approved for an FHA mortgage loan!

Any accounts in dispute on your credit report will automatically make your mortgage application with FHA a manual underwrite! This means that even if the FHA automated approval system says yes, your mortgage application will be downgraded to a no and it will be up to an underwriter to determine if you should get the mortgage. Manually underwritten mortgage loans face tougher scrutiny and can take longer to close.

The reason I tell you this is that too many people still believe that disputing a bad account on your credit will somehow either make it go away or make it not count. This is not true. Without proper documentation, removing an account that is correctly reported will not happen. In other words, if you did not pay them, you can’t simply dispute it to make it go away.

Under this FHA guideline, disputing the account can take you from an automated Yes to a manual No. In many cases, the account in question may not have made a difference either way.

So before you begin going around just disputing items on your credit, be sure to talk to a qualified mortgage consultant. Knowing how the FHA system works can make the difference between an approval and a long drawn out denial.

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Wachovia Bank Losses Forces Game Playing

Wachovia today reported losses of over $8 Billion, well beyond any analyst’s expectation. With most of Wachovia’s losses coming from the mortgage market, which I would assume was made even worse by the purchase of Golden West and the Pick A Payment loan program, Wachovia is scrambling to prevent being a lame duck ripe for a takeover.

Right now they need to make their shareholders feel confident that Wachovia can turn this ship around quickly. So what do they announce? Wachovia is withdrawing from the wholesale mortgage business and will no longer do business with mortgage brokers. (Really? Did they really?… we’ll explore that more in second.)

The idea here is that since mortgage brokers have been unfairly held repsonsible for the entire mortgage snapfu that we are in, why not seperate themselves from the “evil mortgage brokers” and show investors that they have made major changes! This will allow them to put on a show to their shareholders to make them feel a little better about the major losses.

But this show is really just smoke and mirrors. Read the rest of this entry »

Question:
I went through bankruptcy back in January and wonder now what chances, if any, I have to get a home. This may be completely fruitless at this time, but I would like to set some stepping stones so that I would know what I need to do along the way to prepare myself to better be able to get a loan.

Thanks,
Patricia

Answer:
Patricia,

Thanks for the contact. The recent bankruptcy would present the biggest challenge in obtaining a mortgage for buying a home right away. Typically most lenders are looking for 2 years of re-established credit after a bankruptcy is discharged. So while you are going through those re-establishing years, here are a few tips:

• Pay everything on time (beyond just credit debts… utilities can help create alternative credit when the time is right)
• Pay everything by Check or Debit Card (you want hard proof of timely payments)
• If you rent, pay by Check! (This is especially important to prove!)
• Open a credit card and use it effectively to re-establish credit (see http://startovercredit.com/build-positive-credit.php for more info)
• Build a savings account. Lenders like to see money in the bank for a cushion… gives them a sense of security.
• Keep debts to a minimum. When you are rebuilding credit, use credit cards (revolving credit) properly and avoid installment loans just to build credit. In other words, don’t buy a car unless you have to. Installment loans  take forever to make a positive impact on credit.

These should help get you on track to buy a home again in the near future.

If I can be of any assistance, please give me a call.

Ed Nailor
877-411-9327 Phone

Mortgage Loans Got Tougher

Throughout this mortgage “crisis” we have had one investor that was not requiring any particular credit score. They would underwrite any loan and did a lot of manual underwritten business. (A manual underwrite is a loan decision made by a real person rather than a computer and is a tough approval to get.)

With the tightening of money and credit lines available to lenders, this investor has just made some major changes. Not only have they imposed a minimum credit score of 620, they now will no longer accept any manual underwritten loans! The result: mortgage applicants with soiled credit have one less option for mortgage financing.

The way things are headed, home buyers and mortgage applicants are going to need solid credit in order to qualify. There are still a few options out there for dinged credit, but those that just won’t pay their bills are running out of options.

If you have had some credit issues and are on the fence about buying a home, now is the time to act! While there are still lenders willing to look at less than perfect credit and accept minimal down payments, you need to act now! Forget what the media is selling. The real estate and mortgage market in Charlotte is still attractive and strong! But if you wait until all the “smoke clears” you may be left sitting out in the cold!

Mortgage Rates for Charlotte mortgages get better

Today we actually saw an improvement in mortgage rates for the Charlotte mortgage market. For the past few weeks we have consistently seen mortgage rates in Charlotte erode. However, today there was some improvement which was a welcome change.

If you are in the market to buy a home in Charlotte, or need to refinance your Charlotte home loan, now is the time to make your move. Mortgage rates are expected to continue to worsen as the summer continues, so waiting can cost you a lot of money.

I urge all Charlotte Realtors and agents to act now and get your home buyers qualified now. With the great number of homes for sale in Charlotte, this is the best opportunity to buy a home we have seen in a long time. This is especially true for First Time Home Buyers in the Charlotte NC market! With no home to sell, and only rent to walk away from, first time buyers should be jumping at the opportunities in front of them!

Act now and take advantage of the low mortgage rates available for the Charlotte area.
Apply for a Charlotte mortgage loan now and get started!

Charlotte Refinance Mortgage Loans

Attention Charlotte Home Owners: If you are considering a potential mortgage refinance in the Charlotte NC area, you should act now! Charlotte refinance mortgage rates are still very low!

Charlotte home owners are refinancing their mortgages in large numbers! With so many people deciding to stay in their homes, Charlotte refinancing is hot. By refinancing your mortgage today, you can lock in a lower mortgage rate, obtain a lower mortgage payment or even consolidate your bills.

With gas prices on the rise and the cost of living getting tougher, now would be the best time to refinance your mortgage in Charlotte and get a better mortgage program. Get cash out to pay off other debt or improve your home. Lower your monthly mortgage payment and give your budget a break

No More Pick a Payment for Wachovia

It appears that Charlotte NC based Wachovia could no longer handle the negative press. They have officially dropped the Pick A Payment product from their mortgage portfolio. After spending all the time and money in buying (and defending the purchase of) Golden West Financial, they are now stuck with nothing more than a less than stellar return on the investment.

Wachovia has taken a beating on this product. While the “option arm” mortgage product is not a bad product when sold correctly to the right borrower, the way this was sold and the pressure Wachovia put on its loan officers to push this product really gave it a bad image. This image was one that Wachovia could not overcome, mainly because they never changed how they sold it!

So for now, Wachovia has dropped the Pick a Payment mortgage loan. In my opinion, this is actually good for consumers. While a good mortgage option for a select few, too many potential borrowers were being pushed to look at this loan even if it didn’t make sense for them. Now, with it no longer offered, Wachovia can push their borrowers towards less risky loans. But expect that they will still push. Their loan officers are paid on the types of products they sell and if they hit their quotas for each product. So while a 30 year fixed may be your best bet, your Wachovia loan officer may well still push you towards a 5 year adjustable because they need to sell 3 more of those this month.

When considering mortgage options, you really should look to a licensed mortgage professional that focuses on what best fits your needs, not the bank’s needs. The Carolina Mortgage Connection does not have any quotas to hit, and we only focus on the right solution to match with your needs and goals.

Banking on Bank of America could Cost You

Charlotte Realtors… If you currently count on Bank of America for majority of your Charlotte mortgage needs, you may want to start looking around a bit. With the aquisition of Countrywide, you should expect to see some changes at Bank of America!

Its no secret that Bank of America is buying trouble. Countrywide is riddled with bad loans, major defaults, negative press and a ton of impending lawsuits. And yet Bank of America is still buying Countrywide. The latest news is that 7,500 jobs will be cut as a result, mostly expected to be on the Countrywide side. But Bank of America will have to make changes too.

Any time a lender in the mortgage business sees major losses and defaults, they have to tighten up their lending practices to help compensate. We in the lending business have seen this time and time again. Mortgage banks that used to offer more flexibility are having to tighten up and offer less in terms of mortgage products and mortgage underwriting. Bank of America, while having made good decisions overall, is buying a major black hole that will force them to have to over-correct.

As a Realtor, if you have been relying heavily on Bank of America as your Charlotte mortgage referral source, you will want to quickly explore other lenders. As a result of this acquisition, you should expect Bank of America to begin raising their internal standards to accept only the cream of the crop home buyers. They will begin to further separate the margin of perfect credit borrowers with major equity from the less than perfect home buyers needing less money down. Very soon, those that fall into the latter circumstances will not see favorable mortgage programs offered.

At the same time, placing all your mortgage business with a major Bank will limit your opportunities. Major banks like Bank of America and Wachovia are having a tough time and will only have a handful of options for your buyers. However, working with a dedicated Charlotte Mortgage Lender will offer many solutions!

For example, the Carolina Mortgage Connection works for a Charlotte mortgage Lender. We offer the same mortgage products that any bank can offer, with mortgage rates and closing fees just as competitive. However, when you have a buyer that does not fit the “traditional bank mold”, we still have the flexibility to broker to other mortgage investors willing to take a risk on your buyers. And as investors come and go, we will always be in position to line your buyers up with the money they need at a price they can afford!

So Charlotte Realtors, arm yourself and your Charlotte real estate business with more options and opportunity. Let Ed Nailor and Residential Mortgage Center help you get more buyers qualified and close more deals! From the credit perfect to the credit challenged, we are uniquely positioned to provide the best in Charlotte mortgage rates, mortgage programs and mortgage solutions to your home buyers!

This past Thursday, I was interviewed by Julie Rose, reporter with WFAE 90.7 FM, an affiliate of NPR (National Public Radio) here in Charlotte NC. Julie Rose was doing a story on Wachovia’s Pick A Pay mortgage loan and wanted to ask me some questions. Seems she has been reading Charlotte Home Mortgages as well (good for her!) and felt I might know something about this…

Recently Wachovia has been coming under fire for the Pick A Pay mortgage loan. Recently it was reported that Wachovia was really putting pressure on their loan officers to push this product, even if it wasn’t what a borrower wanted to needed. (read Wachovia Pressures Loan Officers)

An exceprt from Julie’s report as found on WFAE’s website:

This week Wachovia started a new policy of calling every customer who applies for one of its controversial Pick-A-Payment loans through an independent broker.  The bank says it wants to enhance customer service and prevent fraud.  But there could be another reason.  WFAE’s Julie Rose reports.

As you can hear in the audio clip, my sound bite was small. As such, the point I made with Julie was cut short (however, it was not taken out of context - great job Julie!) The point I was making was that wholesale lenders calling mortgage broker’s clients is not the norm. Yet I could see why Wachovia may be doing it, if for no other reason than to help the public relations nightmare that Wachovia is dealing with over the Pick a Payment loans.

The Pick A Payment mortgage loan was not a horrible mortgage product IF it was sold properly. These types of mortgage products were offered by a large group of lenders. However, it was sold as a way to get a super low payment to anyone that wanted it. While it did provide options for a low payment, that was not the only consideration for that mortgage product. If the borrower had good equity that could handle the negative amortization AND planned on applying the savings from the mortgage payment to something more beneficial (such as debt elimination or wealth building investments), then it could be a good mortgage. Regardless, the borrower that best fit this mortgage loan was your saavy investor or seasoned home owner. This loan was sold to too many first time home buyers just looking for the lowest possible payment. And now we have major fall out.

Anyway, thanks Julie Rose for taking the time to call for an interview. Feel free to call again if I can help!