1. I’m paying $1250 a month in Rent, can I keep my house payments at that same dollar amount? Great News!  When you buy a house, you can get a raise!  (for more info click here).
2. Can I buy a house if I’ve had some credit Boo-Boos? Okay this is tricky – but the answer is YES!  It’s just a matter of how long it will take to get your scores up to 620.  We have a TON of information on Credit Scores, and how to get them higher!  Click here!
3. Do I have to have 5% downpayment plus all of the money for closing costs saved? No.  If you are a Veteran, you qualify for a 100% mortgage.  If you are willing to live in more Rural Areas of our state (like Holly Springs or Johnston County), then you might want to consider USDA Home Loans, which is also a 100% mortgage loan program. If you purchase using FHA as your mortgage program – you can make a 3.5% downpayment.  The down payment for FHA can be a Gift, it can come from 401K money, you can sell an asset (like your husband’s Bass Boat)… lots of options!  Click here for more details!
4. Can the Seller pay all of my closing costs? If you are asking me, can I purchase a home with NO MONEY out of my pocket – the answer for ME is… why would you put yourself in that position?  If you have NO MONEY for an Inspection, or an appraisal, or an earnest money check?  Would it be better to wait a couple of more months and save some money up?  Okay – if you are asking if the Seller can pay MOST of your closing costs yes.  FHA recently made an announcement that Sellers can only pay up to 3%.  USDA and VA still allow Sellers to pay up to 6%.
5. Should I lock my mortgage interest rate in? Mortgage interest rates change daily… actually, they are traded just like a stock, so they REALLY change every few minutes.  If you are SHOPPING for a home, there are programs that allow you to lock in an interest rate while you are shopping.  Most lenders, including us, have a FLOAT DOWN policy.  This means that if you lock in an interest rate with us for 30 days – and 10 days later, rates drop through the FLOOR, and you want to take advantage of that WAY lower rate – you can.  Ask about this policy UP FRONT.
6. Should I let 5 different Mortgage People pull my credit while I’m trying to decide who I want to work with? Here’s some basic info on Credit Inquiries. In general, I would talk to the lenders, figure out who you “relate to” let them pull your credit… then get a COPY Of that report and send it to other lenders for quotes.

Here are some other basic questions to ask your lender.  It’s NOT just about the mortgage interest rate… it’s about how much it’s going to cost you, is this person going to really work on your behalf to get your loan approved (these days, it’s almost like hiring an attorney!  It’s NOT easy for a loan officer to just slam a loan through!), can you talk to this person, do you understand how their process works?  This is going to be an amazing journey – being able to communicate with your loan officer is going to make that journey EASIER!

Please call Steve Thorne, FFSi 919-649-5058.  We like working with First Time Home Buyers in NC.  We have the best mortgage interest rates!

Trying to Have Money Left Over After Closing?

a downpayment requirement (unless you are a Veteran, or you are purchasing in a rural area that qualifies for USDA Home Loan Mortgages)… and you might be aware that there will be “Closing Costs.”  Your REALTOR might have mentioned that you are going to ask the Seller to pay some or all of those costs… but WHAT ARE THEY?

The Federal Reserve Board refers to them as “Settlement Fees.” They are, in fact the fees you pay to the various agencies and service providers who work to get the title of the home transferred into your name.

So, obviously there’s a credit report, and you pay for that.  There’s an appraisal on the property, and a fee of @$375 for that (today).  For a comprehensive list of the types of fees, click here.

IN GENERAL (this is just MY rule of thumb)… You will need to budget 3% of your home’s value in closing costs.  You might have less – but you will generally have 6 months of taxes in escrow, and you have to pay your homeowner’s insurance a year in advance.

You might not need that much, but if you are a first time homebuyer counting pennies – I would rather come up with a few extra dollars at the end!

If you want to get Pre-Qualified for a mortgage in NC, call Steve and Eleanor Thorne, Professional Mortgage Planners!  919-649-5058