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

January 23, 2012 by Leave a Comment

 

Buying A House?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...]

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New Survey of Home Buyers by the National Association of Realtors

November 8, 2010 by Leave a Comment

There have been a couple of survey’s released recently by the National Association of REALTORS® that highlight long term (like over 8 year) patterns and shorter term (last 12 to 18 month) patterns in buyers.  If you are considering a home SALE or purchase, these trends are important.

  • Typical sellers had been in their previous home for eight years. This is up from the 2009 survey that showed home sellers in their home for only seven years.  The survey also showed that repeat buyers plan to stay in their home for 15 years… so we are all thinking a little more long term!
  • First Time Home Buyers plan to stay in their home for at least 10 years. This says (to me) that SCHOOLS are going to be an even bigger issue in the future.

Even with several years of price declines, the typical seller who purchased a home eight years ago experienced a median equity gain of $33,000, a 24 percent increase, while sellers who were in their homes for 11 to 15 years saw a median gain of 40 percent.

“Sellers who purchased at the top of the market and had to sell in a short time frame were hurt by the price correction, but the vast majority who are able to stay for a normal period of home ownership generally built enough equity to make a trade-up purchase,” NAR President, Ms. Golder of Arizona said. “Despite swings in the housing market in recent years, the fact is most long-term owners see healthy gains in the value of their property.”

Homeownership, despite all of the problems in the last few years, still appears to be an American Dream according to this survey.   NAR economists state in the survey that, “Eighty-five percent of recent home buyers see their home as a good investment, and nearly half think that investment is better than stocks.”  What are some of the OTHER reasons they are buying?

  • “Honey We Need A Bigger House!” A desire for a larger home influenced almost 10% of all buyers.
  • A change in their families’ situation (like divorce or death) influenced just under 10% of buyers
  • The Whopping $7500 and $8000 First Time Home buyer tax credit was cited by 8 percent of buyers
  • A job-related move (which we thought would be much higher) influenced 7 percent of buyers
  • Affordability Issues (meaning can’t afford your house anymore) only figured into just over 5% of those responding (which was surprising).

Another NAR Survey released details the massive numbers of First Time Home Buyers entering the market.  For more on that, click here.

If you have questions about purchasing a home, how long you need to wait after a short sale or modification – or special ways for First Time Home Buyers to qualify in NC, please call Steve Thorne 919-649-5057. We have the best mortgage interest rates, and the lowest Fees Available!

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First Time Home Buyer Raleigh NC FAQs

August 14, 2010 by 1 Comment

We work with a TON of First Time Home Buyer’s, and we often find that they need the same basic information to avoid costly mistakes:

- 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).

-  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 (OR 580 if you qualify for NC Housing Finance Agency Money!).  We have a TON of information on Credit Scores, and how to get them higher!  Click here! [Read more...]

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Fewer New Homes on The Market Nationwide

May 28, 2010 by Leave a Comment

New Home Supply April 2009 - April 2010The supply of newly-built homes for sales plummeted in April, a positive indicator for the Raleigh housing market as we head into the summer months.

It’s no wonder that homebuilders are breaking new ground at the fastest clip in 2 years.

At the current sales pace, the nation’s complete supply of new homes would be sold in just 5 month’s time.  That’s more than double the pace of a year ago.

Also, as more good news, in terms of total housing units, the government reports that New Home Sales topped one half-million homes sold for the first time since May 2008.

It’s a similar spike as within the Existing Home Sales data released earlier this week.

But before we declare the housing market “repaired in full”, we have to consider a few of the reasons why home sales are charting so strongly.

The first reason is the federal homebuyer tax credit’s April 30 expiration. In order to claim up to $8,000 in tax credits, home buyers must have been in mutual contract for a property before May 1. There is no doubt this contributed to a run-up in sales, especially among first-time home buyers.

The second reason is that mortgage rates have remained exceptionally low, defying expert predictions.  Low rates don’t sell homes, but they do make monthly payments easier to manage for households torn between renting or buying.

And, lastly, March and April’s new home sales may have been buoyed by aggressive discounting on behalf of homebuilders.  As compared to February 2010, April’s average new home sale price was lower by 13 percent.  That’s a sharp drop in a short period of time.

For now, though, homes are selling, supplies are dropping, and buyer interest is high. It’s no wonder builder confidence is soaring.

If you are considering a New Home Purchase in Raleigh, NC – please contact us to get pre-qualified!  We offer VERY competitive pricing, and in North Carolina Predatory Lending Laws require the Builder to allow you to use the Mortgage Company OF YOUR CHOICE. Steve and Eleanor Thorne, Mortgage Banker in Cary , 919-649-5058

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It’s Still A Buyer’s Market

May 25, 2010 by Leave a Comment

New National Association of Realtors numbers on the health of housing, were released this morning.  Over all, the number of Existing Homes that sold in April rose, probably because of the $8000 home buyer tax credit that expired at the end of the month… the fact that mortgage rates are also exceptionally low probably helped too! 8o)

According to the National Association of Realtors®, not only did the number of homes sold in April move higher,  so did the supply of existing homes for sale… anybody else thinkin’ maybe the foreclosures are starting to hit the market?

As compared to March, April’s Existing Home Sales rose by 410,000 units nationwide — the second straight month of large gains. An “existing home” is a home resold by a prior owner (i.e. not new construction).

Although it’s a solid report for housing overall (rising sales suggests that the real estate market’s recovery is ongoing), however, we are still in a Buyer’s Market as the number of homes on the market continues to climb… This puts downward pressure on home prices in some markets – around here that “market” would be Foreclosed Homes that generally don’t fetch the best prices.

Furthermore, because 49% of April’s buyers were first time home buyers (and the tax credit has now ended), we can expect that sellers will continue to outweigh buyers in the months ahead… meaning again that in certain sectors of the markets (like foreclosed homes)  sellers/banks may have to lower their prices.

It presents a great opportunity for June’s home buyers. Mortgage rates are still at their lowest levels of the year — despite expert predictions to the contrary — and homes remain affordable.

Fortunately for the folks in the Triangle – we have J-O-B-S.  This means that in OUR market, rates are at ALL TIME lows, and the housing market is stable. Bank Foreclosures are still available for a deal (if you’re into all of that DIY stuff) and “regular” housing is as affordable as I’ve seen it!

There’s good values and good rates but neither should last long. For the next few weeks, real estate may be in its 2010 sweet spot. If you were thinking of moving in September of this year or later, you might want to consider moving up your time frame!

If you need help getting your credit scores up so you can buy sooner, we can help!  If you want to see how much you can qualify for – call us!  Steve and Eleanor Thorne, Mortgage Banker in Cary , 919-649-5058 Mortgage Lenders in NC

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We Got Their Credit Score Up for Their First Home!

May 22, 2010 by 5 Comments

We just closed a loan for a first time home buyer that made me SOOOO happy I wanted to share her story!

The borrower  was married in her early 20′s – had 2 children, and never finished college.  Her husband left her a couple of years ago, and she ran into some financial problems… but she hung in there, got a second job, got her mom to help with the kids… went to school and got her degree.

Now she’s a nurse and she contacted us earlier this year to see if she qualified to purchase a home.  Unfortunately her scores were all in the mid – upper 500′s.  In order to purchase a home, you really need at least 2 credit scores at or above 620.  She had a boyfriend (who has good credit – really nice guy) and they wanted to purchase a home together.  With just his income, they could purchase around $150,000 but with HER income they could get the home they loved that cost $245,000.

It’s been almost 6 months – but with a ton of determination – we did it!  Her scores hit 621 and 623 last month and she was able to purchase her first home!  She was so excited at the closing because her boyfriend proposed the night before!  Don’t Let Bad Credit Stop You From Buying A Home!

If you have questions about your credit, or buying a home… please call Steve Thorne, 919-649-5058

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Credit Scores and First Time Home Buyers!

May 20, 2010 by 3 Comments

How Credit Scores are calculated is changing, and the minimum scores required for mortgage loans are going HIGHER!  For information about “WHY” Credit Scores requirements are changing in NC, click here.

It’s important to know that Transunion began making changes to the way they calculate credit scores, and if you don’t change your credit strategy – you might not be able to purchase!

I think it’s important for First Time Homebuyers (especially) to know what credit scores they need so that they can take advantage of the $8000 Tax Credit, Low Rates and “Cheap Houses!”

If you are using VA Benefits, you need a 620 score, even though VA does not have a MINIMUM credit score!  I think that (JMHO) because VA doesn’t have a minimum – those VA rates have gotten higher in the last 2 months!  For details on Credit and Veteran’s Administration home loans click here! Again, do not be surprised if the VA rates are not as “cheap” as the FHA and USDA rates!  This is a SHIFT! [Read more...]

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First Time Home Buyer Purchasing Plan

March 8, 2010 by Leave a Comment

Are you trying to purchase a home and take advantage of the new Tax Credit??  Well, you’re not alone, and as a First Time Home Buyer… the task is now even more overwhelming because of the number of foreclosures, short sales, and standard sales available. Each of these types of sale have widely varying terms and conditions! Home buyers need to watch for a variety of factors including time, conditions of the home, and stringent inspections.  So, if you’re looking for a house, or plan to in the near future, here are some tips every home buyer should know:

  1. Short sales that have not been pre-approved generally take much longer than foreclosures or standard sales to close… This is where your agent will be hugely helpful!
  2. You should look at several houses before choosing one.  So don’t feel bad if you haven’t found the right one yet.
  3. Before deciding against the house, make sure it’s because of large factors and not cosmetic issues such as the wall being dirty.
  4. Don’t be turned off by paint colors – this is such an easy fix that it shouldn’t deter you from a great bargain.
  5. If you need to buy appliances for the house, consider buying Energy Star certified ones to get the tax credit and be green.
  6. Don’t shy away from homes that are not in move-in condition.  If a few weekends of work will increase the value by $20k – it might just be worth the work.
  7. Compare homes in terms of how much you’re paying per square foot in homes that have similar features, your realtor will give you the comparables before bidding.
  8. Don’t place all damages on the same comparison level, for example a broken tile is far less serious than a leaking roof.
  9. Drive by the neighborhood at different times to understand the community and noise level.
  10. Try to choose an area with good schools – this will come in handy even if you don’t have kids in terms of reselling.
  11. Be flexible about your wants. Limiting your search to a set amount of features can prevent you from seeing other comparable properties.
  12. Get pre-approved first (not pre-qualified), so that when you’re ready to buy, the underwriting process is already underway
  13. Always check out the comparables for an idea of how much to bid.  Your realtor can hook you up with info about how much similar homes have sold for in that neighborhood in the past 6 months.
  14. Keep in mind, in this market, many homes are being bought up with the incentive of the first-time home buyer tax credit,  so just because you write an offer – doesn’t mean you are going to win.
  15. Take your digital camera along when you go to look at houses.  Look at teh Google Walking Tour to find your favorite spots.

Remember – if you had a $200,000 IRS lien -you would hire a CPA.  If you had a $200,000 Law Suit – you would hire an attorney.  You are making a HUGE Investment… hire a Real Estate Agent! Seller’s normally pay their fees!  We have GREAT Realtors that we work with, and would be glad to offer recommendations!

Call Steve and Eleanor Thorne, First Financial Services, 919-649-5058.

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Mortgages at Tax Time

January 22, 2010 by Leave a Comment

If you are getting ready to do your taxes, and you are renting…

P-I-T-Y!  I mean really, Bro… too bad.

You are missing out on THOUSANDS of dollars! People who OWN a home, get tons of deductions you don’t… just for living in a HOME!  Haven’t you ever heard the saying, “Buy a House Get a Raise!”

Mortgage Interest Deduction:

You may not deduct interest on more than $1,000,000 of home acquisition debt for your main home and secondary residence. Home acquisition debt means any loan whose purpose is to acquire, to construct, or substantially to improve a qualified home. The limit is reduced to $500,000 if you are married filing separately.
Use the worksheet on page 11 of Publication 936 to calculate the allowable mortgage deduction.
Let’s say you purchased a home in April of 2009, with an interest rate of 5.5% with a loan balance of $200,000. Your monthly Principal and Interest Payment would be $1135.
The Interest you paid April through December would be 6395.44.

This doesn’t include any other charges you might be able to write off… like TAXES on the mortgage!
So when you’re doing your taxes… just for fun… add a $6395.44 deduction in Schedule A, and see what kind of difference it makes for YOU! Remember, in addition to this deduction – folks who purchase and close before the end of June get an additional TAX CREDIT!

WoW!  If you are renting… you could really, REALLY be missing out! Seriously, what could YOU do with an extra $12,000?  (Tax Credit plus potential refund!)
Considering a mortgage loan to purchase your new home?  Call Steve and Eleanor Thorne, Corporate Investors Mortgage Group, Raleigh, NC  919-649-5058!  Remember – USDA Home Loans and VA Mortgage Loans do not require any downpayment!

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The First Time Home Buyer Tax Credit of 2010

January 16, 2010 by 1 Comment

Okay—so here’s why you REALLY want to buy a house in the first half of 2010…

Houses are C-H-E-A-P!  I mean CHEAP!! I’ve been in this business, in North Carolina decades, and I’ve never seen home prices so AFFORDABLE (read CHEAP!)!

Mortgage Rates are L-O-W! It does not look like this is going to continue to be the case, as “Big Ben” (and the Fed) announced he is going to stop purchasing Mortgage Backed Securities in March (which will force rates higher).

The Government is G-I-V-I-N-G you a tax credit of $8000 or 10% of the home’s value. If you are a First Time Home Buyer! So if you buy a really nice $250,000 house—that’s $8,000 for furniture, pay off your college loans, buy a car, big screen TV… or to just plain ole save!  $8,000!!!

There are a couple of restrictions / things to remember:

  • Some States are helping the Tax Credit to be used as a down payment.  Unfortunately, the State of North Carolina does not have the funds to be able to offer this grant program.
  • Homes that cost more than $800,000 aren’t eligible for the credit
  • You must be over 18 years old to claim the credit (dependents are not eligible to claim the credit either).
  • Those who sell their new home or stop using it as their main residence within three years would have to repay the credit.
  • You cannot claim the credit if acquired your home by gift or inheritance OR if you acquired your home from a related person.

If two or more unmarried individuals buy a main home, they can allocate the credit among the individual owners using any reasonable method. The total amount allocated cannot exceed the smaller of $8,000 or 10% of the purchase price. Note: A reasonable method is any method that does not allocate all or a part of the credit to a co-owner who is not eligible to claim that part of the credit (I would go with 50/50 as a reasonable method if one person is not eligible for the credit)

The way you determine which credit you are eligible for is based upon the purchase date. Only homes purchased from Jan 1 2009 to April 1st 2010 are eligible for the fully refundable $8000 credit.

If you constructed your main home, you are treated as having purchased it on the date you first occupied it.

Foreign or Overseas Homes: You are considered a first time home buyer when buying an American residence, even if you owned principal residence outside of the United States within the previous three years. Non-resident alien’s cannot claim the credit. In addition to this, in order to qualify for a mortgage – you must have a two year US Credit History (FNMA and FHLMC changed rules in December of 2009).

Members of the Armed Forces and certain federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and still qualify for the credit.

An eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011, and close on that purchase by June 30, 2011.

For more details on the Tax Credit and Frequently Asked Questions, click here.

First Time Home Buyers should purchase a home NOW, because houses are CHEAP, mortgage interest rates are LOW, and the Government is GIVING YOU up to $8,000!!!  WOW!

If you have questions about buying a home in RTP, or want to get pre-qualified for a mortgage loan in Raleigh NC, please contact Steve and Eleanor Thorne, Corporate Investors Mortgage Group, Inc in Cary, NC  919-649-5058

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