About Eleanor

I see myself differently than most loan officers in the Cary/Raleigh market. As a rare Cary native, I see myself as an expert on the area, on mortgage industry changes & factors that effect rates! I've lived in Cary since 1968 - and I'm second generation "mortgage." I work with my husband, Steve Thorne Mortgage Loan Originator #60596 Equal Housing Lender More About Me

Buy a House, Get a Raise!

February 8, 2012 by Eleanor 8 Comments

Buy a House, Get a Raise! I’ve told people this for years, and they don’t always understand. You see, when you purchase a house, it gives you a tax incentive, and so if you are paying $1200 a month for a mortgage payment you are likely writing off at least $400 a month in interest and taxes!

So a house / mortgage payment of $1200 does not compare with a rental payment of the same thing! Nuying a house can be an emotional experience, but there are benefits to homeownership too!

There are some GENUINE Deals out there when it comes to purchasing foreclosed property- HUD has a program that only requires $100 downpayment! There are special First Time Home Buyer Programs too!

In addition to that – Did you know that rental history is not adding anything to your credit score??? Home-ownership does?

In general, your landlord does not report to the credit bureau unless you’ve screwed something up! A mortgage company, reports an on time, monthly installment debt. This can be a HUGE lift to your credit score! 8o))Just one more reason to call us about purchasing a home in NC! Steve and Eleanor Thorne, Mortgage Banker at 919-649-5058.

Filed Under: First Time Home Buyer Tagged With: benefits of homeownership, buying forelcosed homes, credit scores, first time home buyer programs, how to buy foreclosed homes, mortgage, nc, steve thorne

Improve Your Score 50 Points – NOW!

February 7, 2012 by Eleanor Leave a Comment

We’ve written many times here about writing dispute letters when you have incorrect items on your report. In addition to this, you could improve your score by 50 points if you would do the following:

Pay off any verified bad credit item on your report. In exchange for your payment have the lender remove the item from your credit report. This works especially well if you have medical collections… once the collection is sold multiple times, it shows on your credit report multiple times, so get it off!
Pay your bills on time. It is alleged that missing one monthly payment can cause your score to drop by up to 50 points. We tell folks that they should be able to purchase a home if they have 12 months of ON TIME payments!
Open a new line of credit. You will get the most benefit if this is a revolving line of credit. We recommend an unsecured credit card… but if you must use a secured card – do it! But, make sure it reports to all 3 bureaus.
Pay your large debts down. This is called your available credit to debt. The bureaus need to see that you are not in over you head and that you do have credit that is not being used.

These four action items are the only things you need to concern yourself with when trying to improve your FICO credit score. The minimum credit score for most loan programs is 640. If you have a score in the high 500′s to low 600′s, and want to buy a home – we might be able to help! Call Steve Thorne 919-694-5058

Filed Under: credit Tagged With: credit score, home loans nc, minimum credit score fha, mortgage, secured credit card, underwriter guidelines mortgage

USDA Streamline Refinance No Appraisal 2/12

February 6, 2012 by Eleanor Leave a Comment

NC Residents are getting an added benefit from the Obama Administration during the next 24 months. In a program announced for the economically hardest hit counties in the Country, last week USDA announced a new Streamline Refinance Program!

Under the new program folks refinancing their USDA Home Loan will need to meet the following guidelines:

No appraisal required – the current residence must be in a USDA “Footprint Area” and currently be insured under the USDA program. So refinancing from a Conventional loan or a FHA loan to USDA will not work under this program.
No Credit Report Required – the current mortgage must be current, and all of the previous 12 months of mortgage payments need to be made on time. That’s all. We just verify that you made your house payments on time.
Employment Verification Required – we will need to verify that you are employed, and drawing enough money to meet the underwriting guidelines… meaning we must prove that you have enough income to make your house payments.
Can not take cash out - All we can do is finance your current loan balance, and the new Guarantee Fee (PMI) which is 1.5%.

This should be a pretty quick process! We just did a comparison for a homeowner who purchased their home in June of 2009 in Johnston County. Their current interest rate is 5.75%. Even with the change in the USDA Guarantee fee (now there’s monthly PMI for USDA Home Loans) they are saving over $130 a month, and we are not having to charge them ANYTHING! So the balance on their mortgage isn’t changing much, and they don’t have to worry about an appraisal… and they get to skip a mortgage payment and lower their house payment by $130 (and change) a month! WHAT A DEAL!

If you want to see if you qualify for this program in NC – call Steve Thorne, USDA Home Loan Expert in NC 919-649-5058. We have the best mortgage rates available, and we know how to work with USDA!

Filed Under: USDA Home Loans Tagged With: refinance no appraisal nc, refinance usda home loan, usda home loan refinance, usda pmi, usda refinance no appraisal\, usda streamline no appriasal nc, usda streamline refinance nc

I Have A Repo on My Credit Report Can I Buy a House?

February 6, 2012 by Eleanor 5 Comments

I’ve had several of these questions lately, and I figured I’d let you know what I’m seeing.

Just because you have a repossession on your credit report does not mean that you have to delay in purchasing a home… but that doen’t mean it’s not a problem.

Okay, so let’s say you have a repossession from 2005. Next year, 2013, the issue is going to “age” off of your account. That means, no matter what the creditors are telling you, it’s going to go away – COMPLETELY away. So, in most cases I don’t recommend that folks shell out $4000 to settle the deficiency balance this year (when it’s going to age off next year) because then it’s going to stay on your account for another 7 years! (To find out how long items stay on your credit report, click here!)

But, it might still be difficult getting a loan with that balance on there! The critical things to consider are this:

How old is the repo? If it’s less than 5 years old – you might need to make arrangements for payments.
What is your credit score? Need 2 scores over 600 in most cases now!
Do you have other good credit? You should have 3 good accounts!
Are there other collections? If so, they likely need to be paid off before you apply for a mortgage loan.

Every credit report is like a snowflake… it’s different. There’s no clear way that I can answer this question on a blog post – I’m just trying to let you know that it does not HAVE to keep you out of the mortgage market.

Bottom line – call us and let’s see if we can help you get on a path to purchasing a home! Steve and Eleanor Thorne, Mortgage Banker in Cary NC, 919-649-5058

Filed Under: credit, FHA Mortgage Loans Tagged With: car reposession, credit scores, fha credit guidelines, mortgage, nc, river community bank

Does The Balance On Your Account Matter?

February 4, 2012 by Eleanor Leave a Comment

I recently read a report that said:

“Several of my clients are in the credit restoration business and a recent conference call with some of the heavy hitters in the business revealed an astonishing new update to how the FICO score is computed.

Balance management – that is the practice of getting the “balance to available credit” (similar to ltv) below 50% and ultimately to below 30% for maximum benefit, “NO LONGER appears to improve the score” was the quote on the conference call. It was a common, and very simple way to get a few point increase in FICO score was to transfer balances accross cards, or pay down across cards to get the balances below 50 and 30% of the available credit line. Another common practice if there was no room on other cards or no cash to pay balances down was to call the credit companies and request an increase in the available credit limit – which would result in an improved ratio and a better score. It appears this is NO LONGER the case.”

In review of our recent files… we do not feel this is accurate information. Our files show that folks who pay their accounts down to at lest a 50% level do have an improvement in their scores.

Don’t be fooled by those who don’t have many clients, are not working full time in the business, and just plain don’t know… Steve Thorne at Mortgage Banker in Cary 919 649 5058 if you want to buy a house and need more information!

Filed Under: credit Tagged With: credit repair, credit scores, fico, new homes cary, raleigh, river community bank, wake county, wake forest

What’s In Your Wallet (It Makes a Difference) Part 2

February 3, 2012 by Eleanor 1 Comment

Working on your credit scores so you can purchase a home?

If you are not behind on payments, and you think you can manage the payments as they are (without closing accounts)… let’s talk about one of the most important things you can do to raise your credit score.

Take out your wallet… Look at the Credit Cards; and find the ones that have the name of a STORE on them (these are just examples):

Best Buy

Rooms To Go

Belks

Victoria Secret

Apple

Lowe’s

Sears

Pottery Barn

Radio Shack

Put those in one stack. Then take out the ones with the name of the BANK on them:

Chase

Bank of America

Wells Fargo

CitiGroup

Put those in a Stack. Then take all the rest of them out:

Discover

American Express

Capital One

Provident

American Airlines

And put those in a Stack. Now—if you REALLY have all of these credit cards, and they all have balances on them… you should have some really nice stuff! WOW! (ROFL!) But I digress…

So, when you have an extra $50, which ones do you pay down first? Well, our suggestion is that you pay OFF the first stack as fast as possible. Not just down to 50% balance versus Credit Limit… these are the ones you really ought to cut up and close. Do NOT use STORE credit cards if you can help it! It’s not worth the discount to defer payments on Rooms To Go if you care about your Credit Score! Listen to Dave Ramsey and buy the furniture when you can afford to pay cash!

With the other two stacks— work to get rid of the Capital One, Provident, “B” Tier cards as quickly as possible and cut that card up. You might not want to cancel the account, having the limit there is okay with a zero balance—but they are difficult to deal with and charge very Large Fees.

Once you have THOSE cards paid off, start working on the “Bank” credit cards. Pay each one down to at least a 50% balance. If you do this—you will have a GREAT credit scores! That’s the GOAL! Right?

If you have questions about buying a home, or want specific information about your credit – please call Steve and Eleanor Thorne, Mortgage Banker in Cary ! 919-659-5058　

Filed Under: credit, Housing News Tagged With: credit cards, credit scores, dave ramsey credit repair, how to improve credit scores, river community bank

What’s In Your Wallet (it makes a Difference)? Part 1

February 2, 2012 by Eleanor Leave a Comment

Are you considering a Home Purchase??? Many of us realize that credit scores are the Holy Grail—the one thing you do not want to screw up… and if you have, it’s the one thing you want to figure out how to FIX… FAST!

We talk to people all the time who have been laid off, or had an accident, or got sick, or relocated and then hit hard times. The first thing you need to do is GET OVER IT! Get past the anger and the sleepless nights trying to juggle everything, and start making a plan.

All too often people could increase scores and save years of problems if they asked for help EARLIER. We recommend talking to a Consumer Credit Counseling Service (NON PROFIT) before you get behind on bills. They can get credit card rates lowered, past due and over limit fees dropped, and your total monthly payments manageable. Once you’ve made 9 payments into these Services, you will probably see a positive difference in your Credit Score!

Again—you want to make sure to talk to NON-Profit Consumer Credit Counselors. They will typically keep only a very small fee for distributing the payments.

Are you trying to improve your score so you can purchase a home?? Contact Steve and Eleanor Thorne at Mortgage Banker in Cary , Cary, NC 919-649-5058

Filed Under: credit, Housing News Tagged With: credit scores, New Homes, non-profit consumer credit counseling, river community bank, steve thorne river community bank

Credit Score Basics – For First Time Homebuyers

January 31, 2012 by Eleanor Leave a Comment

We were able to ask Ken Venable with CREDCO about FICO Scores and what the fallacies and models used today. We are hoping to clear the air – because there’s so much information available now… and some of it is just plain misleading.

For instance the “Free Credit Score.com” jingle that folks listen to, and then PAY for doesn’t have a matrix that is anywhere close to the “Mortgage” matrix we must use to score you! We’ve seen many people who thought their credit score was “up” to 640 – when we pulled it and found that the score was actually 618, the customer thought we were crazy! We weren’t… there’s just a difference between a Mortgage Report Score, A Medical Credit Score, and a Retail Credit Score.

Each credit bureau uses a “Score Logic” that is slightly different from one agency to another. Meaning that if 4 different people pull your credit, you might get a slightly different score – especially if the person pulling your credit doesn’t note that you are a junior… or if they have the wrong zip code! That’s right, entering the wrong street address can change your score, slightly.

A credit report is just a snapshot in time… think about someone taking a picture of you in one day. Well, they might get a picture of you at Starbucks, at your desk, in a meeting – you move during your day. Creditors can submit information to the Bureaus on any given day at any given time – so the snapshot (or pull of your credit) on a given day by different people might have slightly different scores. It doesn’t happen often – but it can happen.

You need a credit score ABOVE 620 in most cases to purchase a home. There are FEW exceptions, like if you’ve been in college and just don’t have much credit… but for the most part you need to be NEAR 620 to purchase a home in 2012. If you are a First Time Home Buyer – and you have questions about student loans, or your credit score – Call us!. We want to help! Steve Thorne, Mortgage Banker in Cary , 919-649-5058.

Filed Under: First Time Home Buyer Tagged With: credit repair, credit scores, first time home buyer, first time home buyer programs, how credit scores work, improve credit scores, improve fico score, river community bank

Minimum Credit Scores for Mortgages in 2012

January 25, 2012 by Eleanor 7 Comments

I”ve written a couple dozen times about scores and how to increase your score – but I don’t think I’ve mentioned (here anyway) what the goal is. If you want to buy a car – your goal is to get your score to AT LEAST a 525 on all three credit bureaus. If you are purchasing a home… the bar’s a little higher.

Most FHA underwriters now require a minimum score of 620. We offer the FHA Affordable Program that will approve FHA Mortgage Loans at a minimum credit score of 600 – however, there are MANY “overlays” to getting an approval at that lower score. FHA requires a 3.5% downpayment that can be a gift. The State of North Carolina is also offering a $8000 DownPayment Assistance Program to those who qualify. It’s a little tricky to coordinate – so if you have a score that you think will meet the 600, and you’re going to need that extra help with the downpayment – DEFINATELY call us prior to looking for houses! (In Wake County the maximum FHA loan is $295k click here to see limits for other counties)
Veteran Home Loans doesn’t have a minimum credit score requirement. However, most of the underwriters will require a minimum of 620… (although lately I’ve seen some 620′s that wouldn’t work). We think the “black box” automated underwriting system is getting a little tighter – so you definately want us to have a peek at your credit prior to looking for a home! In the Triangle – we’ve partnered with a builder and several other service providers to offer SUBSTANTIAL discounts on homes and the closing costs to Veterans and their families. Please remember to ask us about this! (the maximum VA home loan is well over $400K… however with the number of reservist we’ve talked to lately – our stance is that we will need to look at your particular eligibility status to determine your maximum 100% loan).
USDA home loans are for properties in less populated areas. They had been the “go to” if your score was between 580 and 600. That loophole is closing and they are really looking for 600+ now. In fact, if you have less than a 640, it’s a required Manual Underwrite, and the guidelines are very, very specific (tight). There’s no maximum loan – it depends on what you can qualify for.
The Conventional loan products and the PMI standards have also gone up. To OVER SIMPLIFY… you can get a loan if your score is between 660 and 680 – but it’s not easy and the PMI costs are awful. You really need a score of 720 and at least 5% to put down to get today’s best offerings. The GOOD NEWS is that if you have a 660 score – getting to 720 is really not that difficult – it’s just a matter of taking the 30 or 45 days to do it.

If you’ve previously had a bankruptcy, foreclosure or Short Sale – it’s important to also look at how long you need to wait before you can purchase another home, no matter what your credit score is.

So the moral of this story?? You need to PLAN to purchase a home! PLAN on speaking with Steve and Eleanor Thorne at Mortgage Banker in Cary 919-649-5058. ( I thought that was kinda’ cute!)

Filed Under: credit Tagged With: minimum credit score fha, minimum credit score veteran home loans, minimum credit scores, minimum credit scores usda home loans

WoWho! VA Does Not Requre A Credit Score!

January 19, 2012 by Eleanor 5 Comments

Well… I wouldn’t get TOO excited! According to the underwriters I’ve talked to lately – even though the VA doesn’t require a Credit Score, clean credit for at least the last 12 months is required.

Here’s good news! No matter what your score is – as long as you meet the minimum score requirements, you will get the best Home Loan Rate for Veteran’s! A lower score will not change your mortgage interest rate with a VA loan!

If you’ve had a Bankruptcy – you can still get a VA Mortgage loan. You must be at least 1 year out of Chapter 13 and 2 years out of Chapter 7. Most underwriters want you to have re-established credit and have those “pesky” 12 months of clean credit. [Read more...]