Posts Tagged ‘NC’

236/365 doing the sums: courtesy obo-bobolina @ flickr

North Carolina Mortgage Loan Transfers

Mortgage lenders typically sell the servicing of mortgage loans shortly after closing a loan. The mortgage loan can still be sold at any time to another lender to allow the mortgage loan company to free up capital. In North Carolina, the mortgage lender is required to provide you with at least 15 days notice of the sale of your mortgage loan to another lender. This is supposed to provide adequate opportunity to ensure your mortgage payment is mailed to the right lender.

Charlotte Mortgage Double Paid

Here in the Charlotte, NC area, this procedure did not work as intended.  According to Channel 9 News (Charlotte, NC), a local Charlotte man was paying two mortgage companies for the same home loan! It seems that the mortgage was sold by GMAC Mortgage to another lender, but GMAC was still collecting payments that were being drafted from his bank account. Even after complaining to GMAC, they claimed they could not find any records of taking more than $2300 in mortgage payments. Finally, Channel 9’s “Action 9″ team got involved and got his money back.

NC Law and You

This highlights a couple things. Although North Carolina requires notice of the sale of a mortgage loan to another lender, this does not guarantee that the original lender will have their ducks in a row and follow through as they should. So one should keep an eye on the transition between lenders. NC mortgage law could not stop the problem from happening, so it is up to you to make sure they don’t run away with your money. Additionally, the Charlotte man paid his mortgage by bank draft, which allowed this to happen. If you are paying your mortgage (or any other bills) using a direct debit bank draft from your checking account, you are giving total control over to the party that you agree to pay. Errors happen, and even the best of money trails can get lost. With the age of online banking, one should consider paying their mortgage using online banking rather than bank draft. Then you are in total control over who gets that mortgage payment!

Article ID: cmc963

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Why do you do that?

It’s a common question asked. When compared to Snakes, Liars, Politicians and Cheaters it’s easy to see why people ask me why I do what I do. But for me, the answer is easy! I love helping people!

I love helping a first time home buyer realize a dream they never imagined would happen! I love assisting a family buying their “move up” home because they have outgrown their starter home. I love helping a family refinance their home mortgage and save hundreds of dollars, allowing them to breathe a sigh of relief! I love helping our military veteransown a piece of this great country they have served!

In short, I love what I do!

Sure, there has been a lot of bad press about the mortgage industry as of late. Much of it, although somewhat misleading, is deserved. Over the past several years, mortgage companies offered ill-advised loans to the wrong borrowers. And with so much “easy money” flowing and over inflated profits realized, even the most reserved of mortgage lenders jumped too far in. So now the entire country is having to correct itself and many people are paying the price.

However, with all the bad news, there is good news too. The Charlotte North Carolina real estate market is still very strong. Charlotte mortgage rates are still at all time lows. And if you have been on the fence about buying a home, Charlotte FHA and VA mortgage loans could make this the best time to buy ever!

So when seeking a Charlotte mortgage company to work with, be sure to find someone that loves what they do. It should be their passion, not their job.

One of our new fabulous Uptown condos began Closing on sales that were posted back in 2005!  What a great time of year for Closings, right?!  Well, during the long time span between the signed Contract and the final walkthrough, my clients decided that a relative who was a ‘home inspector’ would do their home inspection for them; they didn’t want my inspector even after begging for months!  After much ado and arriving at the final walkthrough, I found that the inspection had not yet been done!  Her relative had told them that they didn’t need one since it was new construction!!  Some ‘inspector’ huh?!

“$300. for a service that could save you thousands in the long run, is SO worth it,”  I kept repeating to them!

Their response, “But, WHY do we need an inspection on new construction?–I can see everything and it looks fine!”  Read the rest of this entry »

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 »

Remember why you took out an adjustable rate mortgage? Lower payments, right? Well, with rates increasing, your ARM may be headed through the roof! Let the Carolina Mortgage Connection help you refinance your mortgage and get out from under the stress of that ARM. Today’s 30 year fixed rates are still amazing and could save you a lot of money! We can even get you cash out to eliminate Christmas debt!

Click here to apply today and refinance your mortgage.

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