Posts Tagged ‘Home Buying’

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 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!

FHA “Flipping” Rule Has Been Waived

June 9, 2008: FHA’s Assistant Secretary for Housing - Federal Housing Commissioner, Brian D. Montgomery signed the Waiver of Requirements of 24 CFR 203.37a (b)(2) which waives the requirement of the seller of a property holding a property for 90 days prior to obtaining FHA financing. This waiver is good for one year and expires June 9, 2009.

What does this mean to Charlotte?

Buying a home in Charlotte now means more options. No longer does property purchased by an investor, or foreclosed on by a lender have to be held for 90 days prior to selling in order to qualify for a Charlotte FHA mortgage loan!

Under FHA’s guidelines, once the ownership of a property changed hands, it had to be owned for 90 days before FHA would extend a loan on it. This restriction would cause many Charlotte foreclosures to have to sit for 90 days before a contract could even be executed on it!

CORRECTION: After futher review, it appears that investors will still be subject to the 90 day rule. The intent is for mortgage companies with foreclosures to have easier access to liquidate their foreclosed properties. This correction should be noted. This also opens the market up for investors that “flip” homes.

In my opinion, I would love to see this opened up to investors as well. There are many investors that will buy a home that needs some serious work, rehabilitate the home and then sell it for a quick profit. The neighborhood and community benefit from such rehabilitation, and in many cases the home buyer gets a great home at a great price! An investor has to own the home for 90 days before they could sell it to someone using FHA mortgage financing, even if the home was ready in 30 days! If this waived was extended to include investor properties, it would allow Charlotte homes for sale by an investor to be sold as soon as they are ready. Maybe HUD will review this as well.

Regardless, this waiver of foreclosed home should open up many options for home buyers using Charlotte’s FHA mortgage programs. If you are considering purchasing a home in Charlotte, now is time to take advantage!

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Looking for a Home in Charlotte NC?

Charlotte North Carolina was recently noted as the only real estate market in the entire nation for property values that did not decline! With the steady job base and strong local economy, many people are moving to the Charlotte area.

So where do you find a home in Charlotte? What resources do your use in your home search? When looking to buy a home in Charlotte, what do you do first? Let me see if I can help.

First off, you may be best to get pre-approved for a mortgage. If you get pre-approved for a mortgage before you shop for a home, you will be in a much better position when it’s time to make an offer to purchase a home in Charlotte. Not only will you know that you can buy that home, but you will also know how much home you can buy and get a good idea of what that house payment will run.

Secondly, you may want to search online for Charlotte real estate. There are many options available, but one of my favorites is Trulia. Trulia happens to pull all Charlotte real estate for sale from the Charlotte MLS, but also gathers information on Charlotte homes for sale by Owner and Charlotte foreclosure homes for sale. Use the following link to access a local search for Charlotte Homes for Sale on Trulia: Search Trulia

Third, seek assistance from a local Charlotte real estate agent or Charlotte area Realtor. Real estate agents in the Charlotte area can not only help you find a home for sale, but will also become a very valuable asset when it’s time to make an offer to buy a home. Charlotte area Realtors are real estate agents in Charlotte that are part of the National Association of Realtors. Realtors are pledged to a higher standard that real estate agents that have not joined the NAR.

Finally, you can drive the Charlotte neighborhoods. This is a great way to find homes for sale by owner in Charlotte. Many of the FSBO homes in Charlotte may not be found online as it is up to the owner selling the home to market the home. Charlotte Realtors know how to market homes and do so as a profession. Many FSBO sellers do not have the expertise in marketing needed to sell a home in Charlotte, but will try it before listing with an agent. By finding them prior to listing, you may be able to negotiate a better deal, especially if you have already been pre-approved.

There are many ways to find a home for sale in Charlotte. With all the tools available today, there is no reason not to buy a home in Charlotte if you are in the market!

You Can’t Time the Bottom. You Can Pick a Great House

Thats a subtitle of a recent article in Money Magazine (June 2008). For quite some time I have been yelling from the virtual rooftops that now is THE time to buy a home in Charlotte NC! Yet there are several people out there that still want to wait for the “bottom to hit” so that they can get the “best deal” they can get.

Along comes this article from Money and guess what… they are saying the exact same thing!

The article says that you can not accurately predict when the “bottom” will hit and prices will be at the lowest possible point. As a matter of fact, this article says to resist the urge even as it is possible that the home you buy today could actually be worth a little less next year. This part doesn’t necessarily apply in Charlotte as we still remain the only major market in the US to increase in values!

The real estate market offers the best choice in homes we have seen in decades and with mortgage rates still low, now is the time to make your move. Do your research, work with a Realtor and make your offers accordingly. But don’t sit around and wait. If you are thinking of buying a home in Charlotte, now is the time. Make your move and you could be enjoying the summer in your new Charlotte home!

In Real Estate, Agency Matters!

When you consider buying or selling a home in Charlotte, you might contact and interview real estate agents and Realtors to help you. Before you go too far in those conversations, you need to know about a term called “agency.”

Agency begins when a home is listed for sale by a real estate agent or a Realtor. The seller of the home hires the agent’s firm to represent them in matters related to selling their home. Notice I said they hire the firm, not the agent. While they do work with the specific real estate agent, they actually hire the real estate firm. Much like hiring an attorney, when you hire an attorney the entire firm is hired to represent you.

When you consider this in its entirety, this means that a seller that has hired a firm with 100 real estate agents actually has 100 agents representing their interests. This brings along the concepts of confidentiality and allegiance. Every one of those agents are bound by law to protect and serve the interests of their clients. When you think of it that way, a seller has an entire army of agents in charge of selling their home.

From the start, all real estate agents and Realtors automatically represent the seller. If a home buyer walks in to buy a home and has not hired an agent to represent them, the agent they speak to is responsible to the seller. This means anything a buyer says can and WILL be used against them in negotiating. That is, unless the buyer has specifically hired that agent to represent them.

There are many dynamics that can occur such as exclusive buyer agency, dual agency and more. These take the agency idea into many different directions, which I will try to explain in future posts. However, one thing you should know before you say anything to a real estate agent is to be careful what you tell them (unless you have signed a contract and hired them.) Regardless of being a seller or buyer, if you provide a real estate agent with information about you can be used against you in negotiations in future dealings.

How can information from a simple interview be used against you? Lets examine this. Read the rest of this entry »

USDA Mortgages Can Include Repairs

If you are considering buying a home using the USDA program, there is a great feature that may help you. USDA mortgage loans for the Charlotte outlying areas will allow you to include additional funds over 100% financing to allow for repairs to a home. This is especially helpful when buying a foreclosed home that needs a little TLC.

This can vary based on the investor that will originate the USDA loan, but for the most part funds for repairs can be added to the loan, to a max of 10% of the loan amount (no more than $10,000). The repairs can not affect livablility or safety of the home.

For example, a home priced at $120,000, the max you could use would be $10,000. That money is placed in escrow with the closing attorney to be paid out once the work is complete.

There are a couple other points to consider.

The repair escrow does also require an additional 50% deposit to cover any potential cost overruns. This can not be added to the loan, but can be contributed by ANY party. In other words, if the repairs will cost $10,000, the lender will hold $10,000 in escrow and also require an additional $5,000 (50% of the $10,000) to be placed in the account as well.) That $5000 can be money you deposit, the seller is willing to deposit, or whomever. If that extra money is not used, the extra is refunded to the contributing party. However, if the actual costs runs under the $10,000 estimate that was escrowed, you as the buyer can not get that extra money back as cash. It should be credited back to the outstanding mortgage balance.

The repairs must be done by a licensed contractor and can not be done by you. The contractor will submit an itemized bid stating what it will costs and when they would have it done. Must be completed within 30 days of closing and may be extended if due to weather.

There is usually a small fee to the lender to administer, and there may be a cost from the closing attorney to manage the escrow.

Bottom line: Getting additional funds to improve the property you are buying using the USDA mortgage loan can be done, but it does require a few hoops to deal with. But with no money down, you can not beat this mortgage loan period!

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“Fire Sale” for Charlotte Firefighters

That’s right! Firefighters in Charlotte can buy a home for HALF OFF! Using the Charlotte Good Neighbor Next Door program for Firefighters, any full time Firefighter (or EMT) can buy a HUD home for 50% off the list price! And with our Firefighter Mortgage Loans, Charlotte Firefighters can save big time!

You risk your life to save and protect our community. While we can’t repay what we really owe you, the Firefighter Half Price Home program can certainly help! As a full time firefighter in Charlotte, you could qualify to purchase a HUD home for only half price and get 100% mortgage financing with only $100 down!

These special program homes are HUD foreclosed properties located within HUD’s designated “revitalization” areas. As you can see by the map (red areas) this is just about anywhere in Charlotte! Every week a new list of these homes become available for only 5 days! Using a HUD approved Realtor, you can make an offer on these homes and purchase them for only 50% of the home’s list price.

Here’s an example. A HUD home is listed at $170,000 and if offered for only 5 days through this program. A qualified Charlotte Firefighter can buy this home for only $85,000! While you must live in the home for at least 36 months, the equity you get when you eventually sell is yours to keep! That’s a nice payday!

So how do you get started?

First, you need to get pre-approved for a Charlotte mortgage loan. Our special Charlotte Firefighter Mortgage Loans will put you in position to make an offer on these special homes when they become available. Since there is only 5 days to make your offer, having the mortgage pre-approval out of the way puts you way ahead of the pack! Next, you will need a qualified HUD approved real estate agent to make the offer for you. If needed, we can help you find a HUD approved Realtor in Charlotte. Once your offer is accepted, you are on the fast track to closing. Then simply move in and enjoy your great home!

Get started now and take advantage of this awesome program for Charlotte Firefighters.

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Good News for Financial World

With all the negative press and cries of the sky falling, many times people miss the hidden gems of good news. National City just got a $7 Billion cash infusion. Even though National City has taken major hits and its stock has dropped dramatically, this is GREAT NEWS!

If the sky was falling, who in the world would be willing to offer $7 Billion to a company with major losses? Folks, you gotta see this… now is the best time to make investments! While companies are dealing with the losses and issues, smart investors are jumping in and taking BIG risks to help move things along. This is 7 billion reasons to believe that things are not as bad as everyone seems to say it is!

On a smaller scale, now is the best time to make an investment for yourself. If you have been considering purchasing a home, now is the best time in recent history to do so! Mortgage rates in Charlotte are still very low and homes for sale in Charlotte still offer great selection.

Typically in a buyer’s market, rates are higher. Yet today, Charlotte mortgage rates are super cheap and there are still tons of homes to buy! So if you are thinking of buying a home in Charlotte or the surrounding area, now is the time to move!

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The Hottest and Greenest Trend
in Real Estate Hits Charlotte!

The the latest in Home Design hits Charlotte NC– a design which is both friendly to the environment — AND cuts down on the rising cost of your monthly food bill. Yes folks… its a real Gingerbread House!

The designer and architect of this project was proud to offer a scaled model (see right) for display. Now made from double reinforced and glazed gingerbread, these 1 or 2 story homes can be custom made to meet the needs of your busy family. These life-size homes feature economical frosting and gumdrop roofs — which are only an issue in hot climates, such as Florida. The Charlotte climate can safely sustain these great homes!

If you have young kids, you will want to consider upgrading to the marshmallow flooring that can be easily installed for just a fraction more cost. …

Charlotte mortgage loans for these homes are still in the works!

Oh yes, and a happy April Fool’s Day to ya!