First Time Home Buyer

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

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

First Time Homebuyers – Don’t Just Check On The Rate!

January 23, 2012 by admin Leave a Comment

There are tons of first time homebuyers out there negotiating the best deal on their new home, and now it’s time to get a mortgage.

Most of them only know how to ask one question: What’s the Rate?

We’ve been in the mortgage business for over 20 years – and the only thing most people know to ask is - “What’s the Rate?”

While that’s a great question, it’s kinda’ like going into a shoe store and asking if they have any shoes in a size 9. Just shopping the rate is not necessarily going to get you the best price.

And what is the best price anyway!?! Most of the clients that call us speak to my husband, Steve. The first thing he ALWAYS says is, “hey, thanks for calling! So you were referred to us by (insert name of friend, co-worker, agent, builder)? That’s great! [Read more...]

Filed Under: First Time Home Buyer, Housing News Tagged With: 1st time home buyer programs, Best mortgage rates, first time home buyer programs, first time home buyers, first time homebuyer programs, steve thorne mortgage

Step By Step : Buying Your First Home in NC

November 29, 2011 by admin Leave a Comment

So You Want to Buy A House? Relax! Breahe! You CAN DO THIS!! We’ve helped hundreds of families in North Carolina purchase their first home! This can be a little overwhelming, but it doesn’t have to be! Here’s our guide for purchasing a home in NC.

Step by Step Homebuying

Step 1. Financing… Remember these words, “First the LOAN, then the HOME.” In today’s faced paced market, “ball parking” your price range with someone is good, but you MAXIMIZE your buying power by being PRE-APPROVED with a Mortgage Loan Consultant FIRST. The pre-approval process is a simple one, and will provide you with the options which meet your payment comfort zone. THEN you are better equipped to meet with a Realtor and find the most house for your money. Because multiple offers come in on the same home, a PRE-APPROVED buyer has a better chance of being the new homeowner!

Step 2. House Hunting… Now that you and the agent know your budget, there are still questions about family, hobbies, interests, floor plan layouts, decorating tastes, schools and LOCATION which must be addressed. Once these questions are answered, then you can see what is on the market. In some prices rages, there are more buyers than listings and that is where your patience and the Realtor’s persistence come into play. With today’s technology, Realtor’s have access to the constantly changing market which helps them keep an eye out for houses that meet your needs! [Read more...]

Filed Under: First Time Home Buyer Tagged With: first time home buyer program raleigh, first time home buyer programs, first time homebuyer cary, first time homebuyers

Things to Avoid Before Buying A Home

November 26, 2011 by admin Leave a Comment

Many new homebuyers make the mistake of rushing out to buy things to Don't Ask For Trouble fill their home with as soon as the seller accepts their purchase offer and the lender pre-approves their loan. But there are still a few major hurdles to overcome before the keys are handed out. Don’t Shoot Yourself in the Foot!

Here are some things to avoid during the home buying process to assure your transaction goes as smoothly as possible:

Don’t make an expensive purchase. It may be tempting to order that new sofa for your soon-to-be living room, but its best to avoid making major purchases like furniture, cars, appliances, electronic equipment, jewelry, or vacations until after the closing. Financing that furniture with a store credit card or even one of your own credit cards could jeopardize your credit worthiness during the time it means the most. Your credit WILL be pulled AGAIN approximately 72 hours prior to closing – so the [Read more...]

Filed Under: First Time Home Buyer Tagged With: credit pulled before closing, dap from nc housing, first time home buyer programs, income ceiling requirements, maximum income nc housing, nc housing finance program, nc housing mcc, usda home loans in nc

Seller Paying Closing Costs For Your New Home?

November 25, 2011 by Eleanor Leave a Comment

Sellers can pay the closing costs for the buyer in many cases – however, just like everything else associated with getting a mortgage these days, you need to know the rules, to be sure the underwriters will accept it! Ignorance of the rules can turn a seller contribution to closing costs into a Catch-22.

Why is this important?

It can be the difference between a loan approval and a loan denial!

Seller contribution is a fancy way of saying a part or all of the closing costs are paid by the party that is selling the property. This could be a builder, a home owner, or the bank. For example, a seller could “contribute” or pay up to 3% of the real estate closing costs on behalf of the buyer. Simple, right?

If you are not working with a Real Estate Professional, you might not know how this should be worded, and negotiate a contract that says (for instance) Seller will pay $3000 in closing costs. Doesn’t seem like much of a difference on a $100,000 loan… right? 3% of the Sales Price is $3,000. However different loan programs have a cap on the amount the seller can pay – and at the last minute, you could be required to pay more than you’d expected!

If the buyer’s loan program has a “cap” for “allowable” seller contributions is exceeded, that overage dollar amount is then called a seller concession. Seller concessions, as defined here, serve to reduce the buyer’s loan amount dollar for dollar!! So working with a professional, can DEFINITELY help a new buyer avoid a potentially difficult last minute rush to find the additional cash needed to close!

For example, say you want to buy a $100,000 home and you have 5% down payment and not a penny more. The standard FNMA guideline at 95% only allows for a 3% seller contribution toward costs. Let’s also assume you qualify for a $95,000 loan and not a penny more. The loan is structured as a $95,000 conventional loan that allows for 3% in seller contributions which the seller agrees to pay. The 3% equals $3,000 but you discover the total real estate closing costs are $3,500!

Where is the extra $500 going to come from? You don’t have it. You can’t raise the loan amount based on our assumptions. It’s got to come from the seller, right?

Wrong.

According to program guidelines, 3% is the maximum contribution and any extra would be classified as a concession reducing the loan amount and still requiring you come in with $500.

There’s the Catch-22…sellers cover costs to close the deal with cash-strapped buyers…but give too much, and the “Sellers self-serving generosity” can actually kill the deal.

In the real world, there are solutions about 99% of the time. But I added this scenario just to illustrate how not knowing the Catch-22 in the underwriting guidelines can cause real problems.

If you have questions about purchasing a home and qualifying for a FHA mortgage loan in NC – please call Steve and Eleanor Thorne! 919-649-5058. We offer the best First Time Home Buyer Programs available at the Best Rates in Raleigh! We also work with the TOP Real Estate professionals in NC, and would be glad to refer you to someone who knows how to structure a contract with the Seller Paying Closing Costs!

Filed Under: First Time Home Buyer, Housing News Tagged With: closing costs paid by seller, fha mortgage loans, seller concessions, seller paid closing costs

How to Write a Contract With A DAP

November 24, 2011 by admin Leave a Comment

First off – A DAP is the “mortgage babble term” for DownPayment Assistance Programs. These programs USE to be funded by a SELLER paid contribution – these days, however, “the Home seller can only help buyers pay closing costs by giving a portion of their proceeds back to the buyer at closing, in the form of closing costs. The amount of seller assistance that’s allowed depends on the type of loan the buyer is getting.”

Post “housing Meltdown” there are now many laws, guidelines and regulations on the books regarding WHAT a Seller can “give” a Buyer – and what they are not allowed to give. Sellers are no longer allowed to give home buyers down payment funds. In fact, there are many situations where the Seller is very limited to what they can even pay towards closing costs!

But All Is Not Lost! There’s STILL A Down Payment Assistance Program Available, With over $8,000 in FREE $$! [Read more...]

Filed Under: FHA Mortgage Loans, First Time Home Buyer Tagged With: dap nc housing, first time home buyer, nc housing, nc housing 8000 dap, nc housing down payment assistance, nc housing finance agency, nc housing finance program, nc housing mcc

5 Things a NC First Time Home Buyer Should Know

September 28, 2011 by admin Leave a Comment

So you’re ready to move out on your own, and Kiss Your Landlord Good-bye? CONGRATULATIONS!

Here are FIVE THINGS we think every First Time Home Buyer should consider before making that move:

When you buy a House – you get a Raise! Uncle Sam definately sees benefits in having homeowners, so you get to “write off” the interest you pay each month on your taxes! We advise First Time Home Buyers to see a tax professional, and consider changing your W-4 when you purchase! This way, instead of the govenment giving you a $2400 refund… you get a $200 RAISE! (seriously, you can bring home more each month and not owe on April 15!)! [Read more...]

Filed Under: First Time Home Buyer Tagged With: 1st time home buyer programs, first time homebuyer programs, fist time homebuyer

Buy a House – Get a Raise!

September 13, 2011 by admin Leave a Comment

mortgages cary Have you filled out your taxes yet? Are you getting a refund? NO?!?! You might need to buy a house!

Many times we talk to homebuyers (especially first time home buyers) who tell us that they “want to keep their payments around where they are now.” Meaning that if they are paying $1200 a month in rent – they feel confident that they can afford a house payment of $1200… And that’s very logical – except – they’re comparing Apples to Oranges.

When you buy a house – it helps the economy – and UNCLE SAM gives you a TAX Advantage – which equals to a RAISE!

So, the good news is – if you’re in a 30% tax bracket – you can probably “keep your payments around where they are now” with a new house payment of $1450!

If you are considering a home purchase, and need a Mortgage Loan in Raleigh, please calll Steve and Eleanor Thorne at 919-649-5058. We work with many First Time Home Buyers, and have the best mortgage rates available!

Filed Under: First Time Home Buyer Tagged With: best mortgage rates cary, buy a house get a raise, first time home buyer programs raleigh, mortgage lender cary, rent versus own

Should You Take The $12,000 Financing Package Builder Pushes???

September 12, 2011 by admin Leave a Comment

too good to be true It’s easy to be mesmerized by the ads.

Your mortgage rate will be 2.5% the first year, 3.5% the second year and then FIXED at 4.75% for the rest of the time you own your home! You get a HUGE Tax advantage because you can write all of that upfront interest off! Beautiful New Home!

Just $12,000 more…

Let me ask you somethin’, that community is not finished. In fact, the builder’s rep told you that since this is the first phase, they’ve decided that once they sell the next 18 homes and move into the NEXT phase… they are going to lower the prices of the homes.

Is that “sweet deal” of $12,000 to use the builder’s mortgage company really all that “sweet?” We don’t think so either.

If you are considering a new home purchase in the Triangle, please call Steve and Eleanor Thorne, Mortgage Loan Originators in Raleigh, NC 919-649-5058…

We’ll give you an honest comparison, and the best rate for a mortgage you can find

Filed Under: First Time Home Buyer Tagged With: 2-1 buydown, builder deals, builder offered loan packages, first time home buyer program