Step By Step : Buying Your First Home in NC

November 29, 2011 By Leave a Comment

first steps in home buying processSo 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...]

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Things to Avoid Before Buying A Home

November 26, 2011 By Leave a Comment

Many new homebuyers make the mistake of rushing out to buy things to Don't Ask For Troublefill 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...]

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Seller Paying Closing Costs For Your New Home?

November 25, 2011 By Leave a Comment

Do You Have Bags Of Money Available To Buy A House?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? [Read more...]

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How to Write a Contract With A DAP

November 24, 2011 By 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...]

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5 Things a NC First Time Home Buyer Should Know

September 28, 2011 By Leave a Comment

1st time homebuyers in ncSo 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:

  1. 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...]

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Buy a House – Get a Raise!

September 13, 2011 By Leave a Comment

mortgages caryHave 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!

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

September 12, 2011 By Leave a Comment

too good to be trueIt’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

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How Do You Settle Up The Closing Costs? HUD 1

April 8, 2011 By Leave a Comment

That hour or so right before you get the keys to your new home are spent signing document after document with the Attorney. One of the most important documents you will sign at the closing table is the HUD 1 Settlement Statement (also known as a Closing Statement) is the document you sign that is the accounting of all of the charges associated with the purchase.

Most people in the mortgage industry just call it the “HUD” Which can be a little confusing for some borrowers, because they think we might be referring to a kind of loan you are getting, or a HUD home…

Unlike the Good Faith Estimate that you receive at application, the HUD1 is final so all the terms, costs, etc. will not change.  We normally match the Good Faith Estimate,from the application with the final number on the HUD1.  Because we have been doing this for so long, the “Accountings” are normally very close between our initial estimate, and the final numbers!

HUD 1 Definition

The HUD1 is a document required by RESPA (Real Estate Settlement and Procedures Act, the controlling Federal law) to show actual charges and adjustments for all parties including the seller, buyer, agents, lenders, and all third parties like attorneys and home inspectors.

Another name for the HUD1 is the Closing statement or Settlement statement.

HUD 1 Closing

A HUD1 is signed by the buyer, seller, and closing attorney at a closing of a [Read more...]

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Profile of 2009 – 2010 First Time Home Buyer

November 9, 2010 By Leave a Comment

The National Association of Realtors released information about First Time Home Buyers last week that showed some interesting trends!

  • 93 percent of those surveyed in 2009 – 2010 reported that they purchased using one of the first-time buyer tax credits. (Who’s surprised??? Nope, we’re not surprised either!)
  • Ninety-five percent chose a fixed-rate mortgage.
  • The median age of first-time buyers was 30 and the median income was $59,900. (This part was a little surprising!) The typical first-time buyer purchased a 1,540 square foot home costing $152,000 (bet they were keeping their total payments under the $1000 mark)
  • First-time buyers who made a downpayment used a variety of sources: 74 percent used savings, 38 percent received a gift (or a loan) from a friend or relative, (READ:  their parents) Eight percent tapped into a 401(k) fund, and 6 percent sold stocks or bonds.
  • Women accounted for 1 in 5 purchases, and single Males made the largest leap in the survey ever – which was attributed to the tax [Read more...]

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One Borrower Has Income One Borrower Has Credit Score

August 18, 2010 By Leave a Comment

When one borrower has most of the income… the other borrower has good credit scores… there ARE options for purchasing a home. Look at the question we had yesterday:

“We want to purchase a home, and I want to know if we can get it.  My husband currently has a mid credit score of 538,  and mine is 678.   He makes about 52,000 and I make 25,000.  I’m still in graduate school full time.  We saved  $4,000 for closing cost so far.  We want the house by the end of October 2010 Can we get a loan?”

Option 1:

Purchase a home using FHA, and have a non-owner occupied co-borrower on the loan with the borrower who has good credit scores. If you know that you can make the payments on your own, then having a parent, or other family member, on the loan will not be a burden to them.  After you’ve made 12 months of payments (and by all account mortgage interest rates will still be low a year from now) you can refinance the loan and take the family member(s) off. [Read more...]

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