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Posts Tagged ‘NC’

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.

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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!

Welcome to Localism.

Localism is a new website designed to bring you local real estate information from those that know it best… real estate professionals. Powered by the foremost real estate networking website, ActiveRain.com, Localism provides you a ton of information, commentary and stories that reflect your local area’s real estate market.

So, for example, you live in (or thinking of moving to) Charlotte, NC. You will find local photos of Charlotte, listings of homes for sale in Charlotte, area market reports for Charlotte, plus a wealth of other useful tidbits about the Charlotte area. You can even get down to the local communities and subdivisions within a city!

The information is written and commented on by real estate agents, mortgage professionals, appraisers, insurance agents, and other professionals related to the real estate market. Each individual brings their own unique and distinct view allowing you to get to know the agent or loan officer before chosing to use them. You can even see my posts to Localism: http://localism.com/agents/enailor

Check it out and get the info. With close to 60,000 real estate professionals in the network, you’re sure to find more than enough information on the area you are searching for.

This week, Inside the Money:

• Rates fluctuate, but remain steady

• Media still Focused on Negative “news”

• Charlotte area Mortgage Broker does Stupid Thing

• Rates to change very soon

• It’s the best time in our lifetime to buy a home in Charlotte

 

Rates fluctuate, but remain steady

Mortgage rates for Charlotteand the local area remained steady in the lower 6% range over the past week. Rates are still fluctuating from day to day, usually about 1/8 a point at a time. This is good news as buyers look to cash in on a great buyers market in Charlotte!

Media still Focused on Negative “news”

While the national news is still focused on mortgage failings across the country, good news came out of the Charlotte area real estate market. Home prices are holding and foreclosures are not as bad as it seems. According to the Charlotte Observer on Saturday, the National Association of REALTORS issued a press release in which they stated the Charlotte real estatemarket was still strong and that home values in Charlotte were 11% higher this year than last! Add to a previous article that informed us that while foreclosures were up across the US, the Charlotte area was doing quite well. Yes, Mecklenburg county has the highest foreclosure rate in NC, but when you have the highest growth in the state, those numbers will also seem as dramatic. The good news is that in all reality foreclosures are only up a slight bit over last year, but when you factor in that a higher percentage of homes were bought, the Charlotte housing market comes out on top!

Remember folks, the news media is all about selling ads. Bad news gets attention, good news does not. Don’t believe all you see and hear with the media.

Charlotte area Mortgage Broker does Stupid Thing

I am the first to want to ignore these reports, because it only gives our industry another black eye. And it seems that we have been dealt enough of those. However, when someone does something this stupid, it needs to be acknowledged. A local mortgage broker was advertising a “dream home” for sale in a local paper. When people would call, he would not tell them where the home was unless he got some information from them… pre-qualification information. Turns out the home never existed and this was a ruse to try and get more potential buyers.

PROFESSIONAL MORTGAGE BROKERS IN CHARLOTTE NC will not use such deceptive ads. As a mortgage professional in Charlotte, I am upfront with my clients. They are trusting me with one of the most important decisions of their life. Why in the world would I start that relationship off with lies and deceit? Kudos to the real estate agent that reported this! My fellow mortgage professionals, we must behave as professionals in what we do. It only takes a couple idiots like this to give us all a bad image and with the negative press going around (that should not be directed towards us, but is) we really need to be on our toes! Do everything above board and always, ALWAYS be honest with your clients!

Rates to change very soon

With Freddie Mac and Fannie Mae’s announcments of additional delivery charges to the lender for certain loans beginning March 2008, we need to begin getting ready for rate changes. These changes will happen prior to March. We will see Jan and Feb rates increase for those with scores below 680 as these loans will be the ones sold to Fannie and Freddie in March. So for all the Charlotte area home buyers, if you do not know where you stand with your credit, its time to allow a professional to review your creditand counsel you to improve your credit score if needed. Better yet, get pre-approved to buy a home in Charlotte NOW and get the low rates that still exist NOW.

It’s the best time in our lifetime to buy a home in Charlotte

Mortgage rates are still low. Home loans in Charlotte are still full of options. The Charlotte real estate market currently offers a better selection of homes for sale than we have seen in a very long time. If you are thinking about buying a home, now is the time. Don’t delay… get pre-approved for a home loan in Charlotte, NC today and get out there! You can find the home of your dreams!

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For more information on mortgage and home financing, or for help in the Charlotte NCarea, please contact Ed Nailor with 1st Metropolitan Mortgage- your Mortgage Loan Specialist.

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Ed Nailor
Home Loans in Charlotte

1st Metropolitan Mortgage
10801 Johnston Rd Suite 213
Charlotte, NC 28226

704-248-8694 Phone
visit http://carolinamortgageconnection.foundbydesign.net/

Get pre-approved to buy a home in Charlotte NC today

Special Contribution By Jared Lee

Traditional way of selling a house is to approach a real estate broker, who will assess the value of the home and then put it up for sale. A homeowner intending to sell his house needs to pay brokerage commission to the real estate broker for getting the house sold to a prospective buyer. Most homeowners find this to be a convenient arrangement. Selling of a real estate property requires excessive knowledge in the field of real estate and high degree of commitment that many people find it hard to maintain. However, less than 20 percent of home sellers tend to go out of their way and try selling their houses on their own.

Listed below are some advantages and disadvantages of selling of a home on your own.

Advantages Of Selling A Home On Your Own

The most significant advantage of self selling is that no brokerage commission has to be paid to the real estate broker. You can take an active role in the self-selling process and the entire real estate transaction is controlled by you. However, you need to study hard so as to avoid any mistakes. By this, you can gain immense knowledge about various ins and outs involved in a real estate transaction.

Disadvantages Of Selling A Home On Your Own

1. When a seller intends to sell the property on his own, he should be able to promote the property so as to obtain a best deal. Promoting a property involves good marketing and advertising strategy, which can be expensive. Seller has to bear all these costs. In order to have the property listed on the MLS, one has to pay.

2. If the seller does not have negotiation skills, the entire transaction can be a loss.

3. Lack of experience can result in having the house under priced or overpriced. One needs to gather information from the neighborhood and the area so as to get a preliminary estimate on the home’s value. One can even get the property valuated in order to find its real worth.

4. In case of self-selling, all the paper work must be handled by the seller. While negotiating, one has to rely completely on his instincts. These instincts can sometimes be beneficial and sometimes become useless.

Check Out More Articles by Jared:
Realtors and Agents for Buyers, Highrise Investments Las Vegas, Home Selling Tips By Owner
Article Source: http://EzineArticles.com/?expert=Jared_Lee

Thinking of selling your home? If you decide to sell by owner, contact me for marketing by owner ideas and techinques. If you want to work with a broker, let me help you find the right real estate agent in the Charlotte area to help you sell your home for more money!

An interesting article appeared in Friday’s Charlotte Observer. Due to copyright laws, I can not do a simple copy/paste, so I will do my best to summarize for you. The article can be found online at www.Charlotte.com, at least for the time being.

In an article titled “Price trends? Area stats among nation’s best”, columnist Allen Norwood brings out some very interesting details. According to this article, the National Association of REALTORS (NAR) issued a press release that had said that in the South, the Charlotte region (known as Charlotte-Gastonia-Concord) had the strongest SFR price increase. The current average according to the information was at $220,100 which is UP 11% from a year ago. According to the article, the press release was from earlier last week, and covered the third quarter of 2007 compared to the third quarter of 2006!

The article goes on to say that median home prices in most major metropolitan areas held steady or even climbed slightly.  A quote from Lawrence Yun, the REALTOR’s top economist, was published in this article as “Some metro areas are hot, while others are experiencing localized problems.” In other words, real estate is local.

My friends, that is great news! Amidst all the negative headlines declaring the housing market to be dead, the fact is that Charlotte housing is still strong. And while there is an indication that the market may be soft, prices are holding! For sellers, that’s great news.

Even for buyers, that’s a good thing! While there are a ton of homes to choose from, you can be confident that you won’t buy something today that will lose value tomorrow!

Now is the best time to make a move. If you are considering buying or selling, do it now. Rates are still low, but will be climbing soon… very soon. Home lending options are still available for most buyers, even those with less than perfect credit! So, now is the time.

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Let me help you in the Charlotte area by getting pre-approved for a home loan today. From there we can get you in touch with the right REALTOR to help you sort through the big stack of housing options you have before you! Take advantage of this now, while the time is right!

“Ask and ye shall receive”

I recently posted about the delivery fees that Freddie Mac will be imposing on loans with score below 680 and LTV’s above 70%. With that report, I have been asked several times how this will work… Will the borrower need to have an additional 2% for closing? Will this be paid in the rate? How will this work?

I do not have any “official” word, but here is how it should play out…

The delivery fee is charged to the seller of the loan… i.e. the lender. So, for example, if the lender is Wachovia or Countrywide, when they sell the loan to Freddie Mac (and even Fannie Mae) they will have to pay a delivery fee according to the borrower’s score and LTV. I assume this will be deducted from the money they earn when selling the loan back to Freddie / Fannie.

This will apply to all loans sent to Freddie / Fannie regardless of who originates the loan.. in other words, brokers and bankers alike will have to deal with this. It all comes down to when the lender sells it to Freddie or Fannie on the wholesale end after it is closed.

Now, how will it be addressed? The cost will most likely be included in the rate. The feedback I am getting is that when a loan is priced and locked, the delivery fee that the lender will need to pay will be included in the lender’s yield from the rate. So if Wachovia, for example,  is getting 2% in yield when they sell to Freddie, but the new fee will eat up 1% of that yield, they will lock the rate to the borrower with a higher yield to net the same money. This would result in a higher rate to the borrower.

In other words, a better credit score will now definitely yield a better rate to the borrower! And those with moderate credit (640-680) will be impacted by this. Below 640 has already felt the crunch and will feel it even more so.

Now, one thing to consider… and please pay attention to this: The delivery fee will be imposed on lenders selling their loans to Freddie / Fannie after March 1, 2008. HOWEVER, we will start seeing the rates increase sooner than March 2008, maybe as early as DECEMBER because the loans closed in December/January may not actually get delivered until around March! So NOW IS THE TIME FOR BUYERS TO GET OFF THE FENCE!

For more information on mortgage and home financing, or for help in the Charlotte NC area, please contact Ed Nailor with 1st Metropolitan Mortgage- your Mortgage Loan Specialist.

_________________________________________________

Ed Nailor
Home Loans in Charlotte

1st Metropolitan Mortgage
10801 Johnston Rd Suite 213
Charlotte, NC 28226

704-248-8694 Phone
visit http://carolinamortgageconnection.foundbydesign.net/

Get pre-approved to buy a home in Charlotte NC today

When applying for a mortgage loan, one of the major considerations is the value of the home. After all, a lender will not want to lend more money on a home than it is worth. So to establish its value, a licensed appraiser will be normally required to perform an appraisal of the property.

Typically, an appraiser will visit and inspect the property, take measurements and photos and then do research on similar homes in the area. What the appraiser is looking for are fairly recent sales of similar properties within a close proximity to your home (known as the “subject” property.) These homes that are used for comparison (known as “comparables” or “comps”) should be similar in design, function and size. Where there are discrepancies, the appraiser can determine the difference in value of such discrepancies.

When all the research is done, the appraiser should come to a conclusion as to the value of the property. Two things to keep in mind about this value:

1. It is an opinion and appraisers have the flexibility to interpret the market place as they understand it. A good appraisal should be within a reasonable range of value with another reputable appraiser and to be very solid should have few adjustments in value between the subject and the comps. (The adjustments in value are to account for the discrepancies between the subject and the comps.)
2. An appraisal is not to be considered a replacement for a qualified property inspection. While the appraiser does inspect the property, their inspection is limited and broad, typically seeking obvious defects that would affect overall value. Examples would be holes in the wall, missing fixtures, lack of flooring, etc. And inspector, however, will dig deeper into a property to uncover any defects they can find. They will find issues with wiring, HVAC, roof leaks (that are not so obvious), foundational and mechanical issues… and much more. And while they do inspect for issues, they can not assess value for the home.

Once an appraisal is completed, it is sent to the lender for review and approval. The lender will have many tools to validate the value of the appraisal. Some of these tools include a simple “desk” review in which someone looks over the appraisal report of red flags. A field review may be ordered in which someone would drive out to check out the home, but may not do a full review including measurements and inspection. And there are Automated Value Models (AVM’s for short) that use data from the Internet to help determine a range of value. If the lender has used their tools and determines the value is ok, then the loan can move forward.

However, if the lender sees a problem, they can request a second appraisal or even “cut back” the value of the appraisal to what they feel is reasonable. While this is not a common practice, it can happen.

In most cases, especially in regards to a purchase, an appraisal is not that big a deal. They normally come in as expected with the value that is needed. On a refinance, it could be hit or miss depending on what the expected value is.

Either way, an appraisal will typically be done on 99% of all loans originated today. It not only protects the bank, but it can protect you as well from making a bad financial decision.

For more information on the loan process, or to get pre-approved for a mortgage loan, call me at 704-248-8694.

Earlier today I posted about the fact that Freddie Mac had announced new “delivery fees” that they are planning to require beginning March of 2008. I just read an article in the news that might expain why this is…

According to the Associated Press, Freedie Mac lost $2 billion in the 3rd quarter, much more than Wall Street expected. This was the largest loss EVER for Freddie Mac and they have got to find ways to re-coup some of this.  They have hired Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc. as financial advisors to help it examine possible new ways of raising capital. This new announcement may have come from these examinations.

It was nice to have the press quiet for a while about the mortgage “crisis”, but it appears there is still more news to come in the future. Regardless, rates are still near record lows! This is what amazes me to no end! All these losses and buyers still have more opportunity than ever to get a home!

Folks, get on the phone, shakes hands… do whatever you need to do to let people know… THEY CAN STILL BUY and doing it now WILL SAVE THEM MONEY!

Get pre-approved while rates are still low and programs are still available!

ATTENTION 

I just got word that Fannie Mae and Freddie Mac are about to raise the cost of obtaining a mortgage! This is not a normal rate fluctuation we are talking about. What is being proposed and expected is that there will be a add-on “delivery fee” charged by Fannie and Freddie to accept a loan from the lender.

What I have been told to expect is that there may be a significant cost add on that would apply to any borrower that is borrowing over 70% of the property’s value and has a credit score below 680. The borrowers below this score with the higher LTV are in a class of borrowers that Fannie and Freddie are considering a bit more risky. When this becomes a reality it could change not only who can buy, but how much they can qualify for. It doesn’t matter what bank, lender or mortgage broker the loan is originated with, if it is your typical conforming (also known as Prime) mortgage loan, the delivery fee will apply.

In a letter posted on their website, Freddie Mac said they will be charging from .75% up to 2.0% depending on the borrower’s credit score for loans submitted with less than a 70% LTV and credit scores below 680.

The following table illustrates the rates and costs for a borrower with a loan amount of $300,000.

So the long and the short of it is, if you have anyone on the fence, tell them to make a move NOW! Rates and programs will stay as great as they have been only so long! It’s time to make a move and get into that home they are only thinking about!

I will do my best to keep you updated as more infomation becomes available.

Thanks,
Ed