CarolinaMortgageConnection.com

Posts Tagged ‘home’

Saturday’s Charlotte Observer had a very interesting article by Allen Norwood which proves my recent point about the Charlotte market!

In his article, Price trends? Area stats among nation’s best, Mr. Norwood sheds light on a recent press release by the National Association of REALTORS®, reflecting on our market having experienced one of the strongest single family price boosts in the nation!  Our third quarter 2007 average SFH was up 11% from third quarter 2006.  Unlike other markets that are somewhat depressed, Charlotte Read the rest of this entry »

Historically, Charlotte real estate has not followed market trends as in other cities in the U.S. due to our constant influx of banking transferrees and many other Fortune 500 Companies (we have over 300 represented in Charlotte).  

Charlotte, NC real estate is not experiencing nearly the problems that other cities are currently experiencing but, Read the rest of this entry »

One of the ways I want to help others is by keeping up to date with what is going on in the news. Especially news that is related to mortgage and finance. To do that, I recently changed my home page on my browser to Google and requested News to be posted on my home page.

It did not take long Read the rest of this entry »

Yeah, its that time of year again. Where we sit back after Christmas and relax to enjoy the time off work and watch the kids play with the new toys.

Then a few days pass by and the mail comes once again… hmm.

“We spent how much?” Holy Cow!

That’s when it hits you… you are getting over your head and the bills are flooding in!

This is where the professionals of the Carolina Mortgage Connection can help. We can take the time to see if a Debt Consolidation loan would benefit you. In many cases, you coud use the equity in your home to eliminate the sea of debt and give yourself breathing room again.

But please, once you get this done, let’s also start a savings plan for next year so we don’t end up in such debt again! We want to be your lender for life, but not because of this type of cycle!

Apply now for a Debt Consolidation Loan and see if we can help you lower your monthly payments and get your head back above water!

In 2008, Fair Isaac Corp has announced that it will be changing the FICO credit scoring model. The new model, dubbed FICO 08, will make it easier on some and harder on others. Here are a few changes to expect:

• Bye Bye Authorized Users - In response to those that have charged up to $1,000 to add someone on their account to improve credit scores, authorized user accounts will no longer help boost credit scores. In fact, they could actually lower your score. No official word on this, but my expectation is that if MAJORITY of your credit is someone else’s credit, your score WILL reflect that. Also, if you are an authorized user on an account that is being sold for improving scores, expect to get hit hard! (again, no official word on that, but I expect this will be the case.)
• Occasional Slips Forgiven - So you have gone on forever making all your payments on time and then you have this one time late payment. Maybe it really got ”lost in the mail”, but the occasional random late may not hurt you quite as bad as it has recently. The word is that Fair Isaac is really trying to find out WHO is most likely to stop paying… the occasional late payment happens to most of us. But if most of your accounts are paid as agreed, the occasional late may not be such a big deal.
• Frequent Late Pays Hit Hardest - If you are late frequently, expect your score to be even worse that it was before. When this mew scoring model roles out, you will be penalized for constantly being late. The cure? Start making your payments EARLY and not waiting till the last minute.
• Variety is the Spice of Life (and now credit) - Those with a more diverse profile may see improvements. For example, someone with only 2 credit cards may not see the same gains as someone with a credit card, a loan, a car payment and a mortgage. I would still recommend credit cards for rebuilding as they do have a more instant impact on credit, however you will want to show more consitency across the board. One rule to remember… avoid Finance Companies if at all possible. They can still tend to hurt your score!

The bottom line is that lenders are more sensitive to risks right now and Fair Isaac is trying to help correct that. With other credit score models coming out, Fair Isaac wants to keep the FICO model on top of the market place. This new model will further seperate the good from the bad with little room in the middle.

If you do not understand how credit works, see a credit counselor immediately so that you can get yourself on top of things. Or, if you live in the Charlotte area, you can call me and I will try to help. If you are thinking about buying a home in Charlotte in the near future, start now by checking your credit profile and speak to a mortgage professional. You can never start that process too early!

Ed Nailor - dedicated to educating, inspiring and assisting in the American Dream! Apply for a Mortgage in Charlotte

Fannie Mae and Freddie Mac announced recently that they would be changing mortgage rate pricing due to increased losses in the mortgage industry. That has now gone into effect with majority of the major lenders.

If you put less that 30% down on a home purchase and have a credit score below 680, you will have a higher mortgage rate. How does this play out? Here is an example:

$200,000 Purchase with 5% down (full income documentation)

Standard Rate: 680 score and above: 6.25

If score was 660: 6.50

640 score would be: 6.75

620, rate would be: 7.0

This is just an example, and not a rate “quote”, but as you can see, credit score can make close to a 1% difference. (in some cases, it could end up as more than 1%)

So what does this mean? Well, getting with the right lender for one makes even more sense. Someone that understands credit and scoring and can help you determine if you need to improve your credit, and if so… HOW. Be careful… if the person you are talking to does not know how credit scoring works, the simple advice they give may hurt your score!

Let us take a look and see where you stand. We are experts in credit and mortgages and know what needs to be done.

Now, more that ever, when time and money really matter, call the Carolina Mortgage Connection.

877-411-9327

Driving down the road today I heard the funniest commercial.

A local spa that offers body wraps claims that you can lose 7 inches in one visit. That is a tremendous claim to say the least. But what struck me as funny was the serious claim in their guarantee…

They absolutely guarantee that you will keep those 7 inches off! As long as you dont gain weight.

I just thought this was a funny thing and laughed for quite some time.  Is that where we are in “truth in advertising?” What can I offer in this fashion?

• The Foreclose-Free Guarantee: “The lender will never foreclose on your loan. (as long as you make your payments on time.)”
• 100% APPROVAL ON OUR SPECIAL ONE TIME PAYMENT MORTGAGE: “We offer 100% approval to all borrowers that will pay the mortgage loan off in 1 simple up front payment… Cash is preferred.”
• The 0% Interest Rate Mortgage: “You are guaranteed to pay NO INTEREST on your mortgage when you make one easy payment of 100% of the total balance on the day you buy or refinance your home.”

I know, these are all silly, but that one commercial made such a big deal of such an obvious truth. Does the general public really fall for that?

Personally I think the public is smarter than that. As such, I treat all my customers with the ultimate in respect for their intelligence. And when they may not be as educated on certain areas in regards to home loans, I take the time to inform them so they can make a solid decision.

No smoke and mirrors… after all… “when time and money really matters”… you want someone you can trust!

So folks, for real truth in marketing and in home finance, give the Carolina Mortgage Connection a call. 877-411-9327.

Ed

Its almost that time of year again. TAX SEASON! Just after the Ho Ho Ho’s are done, for many people its the Woe Woe Woe’s of tax time. This is especially a crazy time for the self employed. Most business owners take advantage of all kinds of write-offs and tax breaks to eliminate most, if not all of their tax liablility. While that is awesome, it may not be the right move!

If you are thinking of buying a home this next year, be careful with your taxes. Just because you grossed $250,000 last year does not mean you get to use that for your income level. Lenders are not looking at your gross sales. They are looking at your net taxable income on your Schedule C. For many people this could be a problem.

Many business owners pay a professional to handle their taxes. These professionals have one goal in mind… to bring your net taxable income as low as possible so that your tax liability is small. But this also will affect any income that you can use to qualify for a home (or any other loan.) And with lender’s tightening up their loan programs, the old “stated” income deals are hard to find!

Here is a real life scenario I just went through…

A business owner filed taxes last year with gross income revenues of over $250,000! He had a fantastic year! He also had a fantastic accountant that was able to get his taxable income down to $2,500.00. Yeah, that’s right… $2,500.00. But even if it was $25,000, he would have had the same problem…. This year when he decided to buy his family a home, the lender is qualifying him off the NET income of $2,500! That means with no other debt at all, he could afford a house payment of roughly $75 a month. Oh, that also includes taxes and insurance. Not much home huh?

Lenders are figuring that if you are able to write off these expenses, then you are not holding that as cash. They can only go by your net income… and that is what you pay taxes on.

So what do you do? Either pay lots of taxes or keep renting? NEITHER! You can have the best of both worlds IF you know how to do it…

This year when you file your taxes, have your accountant show as much income as possible on the Schedule C. Yes, I know, that means you have taxes due… don’t worry about that right now. You have until April 15th to pay anything. Once you have FILED you taxes (and it does need to be filed) you can apply for a mortgage and be qualified on that income. Then GO FIND A HOME! Get started right away in finding the right home. Once you close on your home, have your accountant go back and AMMEND your tax returns, taking all the deductions you “forgot” to take the first time. Get this ammended return in by April 15th, and any check you may need to write Uncle Sam will be much less.

In doing this, you have achieved both goals… buying a home and reducing your tax bill.

ADDED 12/21/2007

I have recieved a few emails from folks concerned that this might be considered fraudulent. Please understand that I am not in any way promoting any type of fraudulent activity. However, we all know that when a good accountant is done with all the allowable write-offs that the IRS allows, the taxable income that a business owner may be left with is NOT the useable income they have lived off of for that past year. Majority of the time, the taxable income is dramatically less than what that individual actually used to live and pay bills. So using the Schedule C net income is not a totally accurate representation of a borrower’s income producing ability; however, it is the number lenders use to qualifying a self-employed borrower for a mortgage. So if you are self employed and plan to buy a home, I guess the best advice is to show your taxable income as what you actually lived off of last year when you first file, and then you can go back to ammend your taxes to take advantage of the additional items the IRS allows you to write off. Self employed individuals take the most risks in life and we all benefit from that. They should also be given the most opportunity as well. Is it working the system? I guess it is… but in my humble opinion, it is no different than what the accountant can work the system for in finding additional writeoffs.

_______________________________

This is just one of the many creative solutions you will find when you work with a professional in the mortgage industry. If you are thinking about buying a home, you really need to work with those that know the in’s and out’s of the business. To get pre-approved, contact the Carolina Mortgage Connection at 877-411-9327 or apply online to pre-qualify.

The reality of real estate is that real estate is really local.

This basically means that you can’t judge what’s going on in your neighborhood by what you see on the nightly news in California! If you live in Charlotte, NC and the surrounding areas, you will want to read this!

Forbes Magazine ranked Charlotte, NC as the 14th most affordable housing market in the nation! That means that Charlotte homes are some of the most reasonably valued homes! With the solid job market and the great wages available, buying a home in Charlotte is very affordbale!

More good news! Forbes Magazine has also ranked the Charlotte Real Estate Market the 4th strongest market in America! This means that you are currently in one of the strongest markets in the country. Now before you discredit this ranking, Charlotte, NC is the 4th strongest real estate market in growth with and average growth of over 8%! HELLO! Charlotte real estate is still strong!

So if you have been putting off taking advantage of what is a buyer’s market for fear of what has been in the media, now is the time to turn off that tv and start looking for a home in Charlotte! You can’t afford to let this opportunity pass you buy! With Charlotte mortgage rates at their all time lows, you simply need to act now!

Let the experts of the Carolina Mortgage Connection help you get qualified to buy a home today! We know home loans in Charlotte!

In today’s Charlotte Observer, there was an article written about Affiliated Business Arrangements. The article spoke mainly about real estate agents and title services. There were many big companies that have recently come to major settlements with the government (in regards to fines) related to such practices.

From a business standpoint, I understand the Affiliated Business Arrangement. I don’t blame real estate companies for wanting to not only make money from the mortgage, insurance, title and other related services, but also to have some control over them. This allows companies to keep things moving.. I get that.

However, what this article talks about is the “steering” that takes place in many offices and the fact that the buyer has no idea that agents may get a cut from those services. Again, I understand why, but as a mortgage professional that has had the media on my tail along with several agents over the years blast me due to ysp, I find this an ironic turn of events.

I am not a big fan of married services. How does the buyer get the best service if everything is being pushed “in house”? Its one thing when an agent refers a buyer to the in house lender because that lender gets the job done and saves the buyer money… but when the referral is because the agent has extra money (or bonuses) in the balance, I feel that sorta goes against the whole “fiduciary duty” that real estate agents are supposed to be held to.

I am a big fan of everyone making as much as they can for the work we all do. I think it should be a win-win for all involved, especially the client we all are working for. And now it seems that mortgage brokers are not the only ones with cross-hairs on their backs…

As a buyer, one is best advised to ask if the one referring you to another is compensated in any way for the referral. This may help you decide if using that referral solely based on one referring is the best move.

_______________________________

For professional mortgage assistance and home loan pre-approval in Charlotte, NC and the surrounding areas, call me at 704-248-8694 or visit www.EdNailor.com/apply