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Posts Tagged ‘Mortgages’

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!

Charlotte Home Loan Dies over $25

“But it was only $25.00. Surely that can’t matter that much!” Unfortunately, it did.

Recently a client of mine went from being approved to buy a home in Charlotte to being denied for a Charlotte mortgage loan. It was over a $25 credit card payment. Unfortunately, the payment on one of their credit cards was not paid on time and the late payment was reported to the credit bureau. This late payment caused their credit scores to drop significantly, enough to disqualify them from the mortgage they had applied for.

The amount of your monthly payments has no bearing on the significance of the payment history. It does not matter if the monthly payment is $1,000, $100 or $1. If there is a payment due and it is not paid on time, it is reported as late. A recent late payment will hurt your credit rating and your score will suffer because of it. Most mortgage companies in Charlotte and across the country are looking very hard at credit. It is more important than ever.

If you are considering buying a home in Charlotte, make sure that every obligation you have is paid on time. If you think it is insignificant, pay it anyway. The last thing you want to experience is what this client did… it can be very heartbreaking. And delivering the news isn’t fun on my end either!

Do a search online for “mortage underwriter” and many of the images you will find are of sharp looking, well dressed individuals that seemingly do not have a care in the world. For example, here is one right off the internet:

However, this is such a false pretense! Today’s mortgage underwriters, while professional and sharp, aren’t just sitting around with nothing to do! They are busy, very busy! Most of them are stressed, with dozens of files sitting on their desks that need to be looked at TODAY! In addition to the files they have to get to TODAY, they are also dealing with processors and loan officers calling and emailing them all day long.

Imagine if you will, you have 45 loan packages sitting on your desk. Each file has forms and papers just thrown in them in no particular order and you have to sort them out and make sense of them. Now, for each of those loans, consider that during that day you will get 2 phone calls and probably 3 emails regarding EACH ONE. That means that besides having to review 45 loans (and all the forms and papers that are included in each one) you will have roughly 225 interruptions. Each one is “urgent” and will give you the impression that you must stop everything you are doing to look at this file.

Sure there are occasional files that do need immediate attention, but for the most part they don’t. But if people would just leave you alone for a few hours you might be able to know a big dent in that stack!

Now.. here is what today’s mortgage underwriter looks like: Read the rest of this entry »

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!

New Risk Layering Added to FHA Mortgages

Effective July 14, 2008 FHA mortgage loans will charge new mortgage insurance premiums based on a combination of credit scores and percentage down. Currently all FHA mortgage loans enjoy the same premiums.

Right now, an FHA mortgage loan requires 1.5% of the loan amount to be paid up front for mortgage insurance, plus an annual mortgage insurance premium 0.50%, paid monthly. Using a $100,000 loan amount, the upfront mortgage insurance premium would be $1,500 and the monthly insurance premium would be $41.67. (0.50% annual = $500 / 12 monthly payments = $41.67 a month.)

Lets see how this new Risk Layering will impact FHA mortgages after July 14.

Most FHA purchases are done using the minimum 3% down. So with the new risk layering, someone with a credit score of 640 would see an upfront fee of 1.5% and an annual rate of 0.55%. Not bad! Realistically you are talking a difference of roughly $4 a month.

However, someone with a credit score of 550 would see an upfront premium of 2.25% and an annual premium of 0.55%. On a $100,000 mortgage loan, this equates to an upfront premium of $2,250 and $45.83 a month for the annual premium.

The good news is that the upfront premium can be financed back into the loan amount, so the additional $750 won’t be required in cash! And this small amount won’t make any significant monthly payment changes that will hurt your wallet!

This is a small change and not one to be too upset about. Yes, its an increase in premiums, but with the increase of foreclosures across the country, HUD has to ensure that they can continue to offer these great FHA mortgage loans!

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Joe and Susan wanted to buy a home in Charlotte. They spoke with a loan officer and began the credit application. Joe had been on his job for just over a year, and Susan almost a year. 

John went on to explain that he had worked for Widgets Inc for 6 years, but got caught up in downsizing. After losing that job, went to work for Wares LTD and has been there for about 14 months. Susan worked for Dr. Bones for 3 years, but when he retired, she went to work for the Miracle Hospital and has been there for 10 months. Their loan application was signed and a closing date was set.

As the processing of the loan got under way, the lender approved the mortgage loan and all that was left was final verification of employment dates. With that done, the excited couple could soon get the keys and move in! But wait… uh oh… we have a small problem.

Duirng the final verification of employment, Widgets Inc reported back that Joe had left in August of 2006. Wares LTD’s records have Joe starting his job with them in Jan 2007. As well, Dr. Bones reported that Susan had left his employment in Feburary of 2007 while Miracle Hospital has a start date of July 2007. So on both accounts we have some serious job gaps!

The loan officer requested clarification from Joe and Susan and they explained… “Yes, we did have a few months in between those jobs. During that time Joe worked through a staffing company until a solid job came and Susan worked at a Nurses on Call company until the Hospital came through.”

When asked why they did not explain this up front, they simply did not think it mattered because they considered the jobs “part time”, held them for just a short time between their “main jobs” and neither of these “part time” jobs were anything they would include on their resume.

At this point, everything with exception of the job times was cleared and ready to go. Since lenders want to ensure that a borrower is still on the job when they close a loan, this is usually one of the last items verified. Needless to say, the brakes got put on the mortgage loan.

With further information and documentation, all employment was finally verified and Joe and Susan closed on their Charlotte home. However, they closed 5 days later than expected and those 5 days were the most frustrating days for everyone involved.

When you are applying for a mortgage loan in Charlotte (or anywhere for that matter), it is important that you disclose all jobs you have had that cover the past 24 months. Even if it is a job that does not seem to fit your resume, give the information to your loan officer. Be prepared to have dates of employment and a reasonable explanation for any job gaps.

Getting the most accurate information up front will make the entire process go much smoother and make your closing happen faster. Leaving out “unimportant” details can actually delay (or in some cases prevent) closings.

Special Mortgage Loans for Teachers of North Carolina

I know first had how under paid, under appreciated and under supported teachers are. (My wife is a teacher in North Carolina.)  While I can’t solve all the problems in the education system, I can help North Carolina Teachers with mortgage loans!

(My wife is a N.C. teacher, but this is not my wife.)

So, this summer I want to reward North Carolina teachers with a special mortgage program. In addition to great mortgage rates and programs, I will provide reduced fees and preferred processing to my NC teacher mortgage customers!

Add this to the Teacher’s Good Neighbor Next Door program that allows teachers to buy a home for half price and you have the best possible deal for Carolina teachers! Think about that… no money down, 100% equity from day one and a low mortgage rate to boot! Aren’t you gald you are a teacher?

North Carolina teachers, you deserve the best. Let me do my part in giving back by helping you in the best way I possibly can. No matter if you are a first time home buyer or a seasoned home owner, I am here to help you buy the home of your dreams!

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Working at Residential Mortgage Center in Charlotte, NC I am blessed to work with some of the best mortgage processors in the area. They work hard to get all the details together so that your mortgage loan can close quickly. If there are problems, they provide clear and efficient communication so that we can work together to get things needed.

This is one of the key ingredients to The Carolina Mortgage Connection. It truely is a team, working hard together to ensure your mortgage and home buying experience is the best it can be. With the professional processors we have working at Residential, you can be assured that your mortgage processing is in excellent hands.