Step 1 of Homebuying in Cary

June 4, 2008 By 7 Comments

fha housesCary has been called “The Land of $400k Houses.” Not so… there are TONS of affordable housing in this area, and there are still ways to purchase those homes with less than perfect credit – and 100% financing.

To do this… you will need a team of dedicated “assistants” (if you will) in the form of your agent and lender – as we will need to work as a team to negotiate the best terms for you and fashion the contract so that it reflects the financing and closing cost terms.  IT CAN BE DONE, and we work with some of the top, award winning agents in this area!

So If You Want to Buy A House? Relax!  Breahe!  You CAN DO THIS!!

Remember these words, “First the LOAN, then the HOME.” In today’s faced paced market, “ball parking” your price range with an agent, or online, 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. The process generally involved calling us and talking on the phone for 30 to 45 minutes.  After that conversation, we decide when we should meet in person.

We can send you Good Faith Estimate of your closing costs, and give you a pre-qualified letter at that time. 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 (especially if you are looking at Foreclosed Property!), a PRE-APPROVED buyer has a better chance of being the new homeowner!  This is the first of six steps in the Homebuying process…

If you are considering a purchase in Raleigh or buying a home in Cary, contact Steve and Eleanor Thorne at Connect With Us on Facebook in Cary, NC 919-649-5058

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VA Loan Co-Signors

May 20, 2008 By 6 Comments

weddingVA mortgage loan guidelines recognize legally married spouses of qualified veterans as co-signors on VA loans. This means that we can include the spousal income to qualify for the loan, and that these loans can be fully guaranteed by the VA.  Simply being engaged means that you can get pre-qualified with the spousal income, but the closing must take place after we have evidence of the marriage.

The VA mortgage loan guidelines also allow for more than one eligible veteran(s) to purchase a home. If a married couple with more than one eligible veteran is involved, VA divides the entitlement charge equally between them, if possible. If two unmarried eligable veterans purchase property together the same rules apply and these loans can be fully guaranteed by the VA.

While the VA guidelines may allow for a non-veteran to co-sign for a mortgage loan, they will not fully guarantee the loan, and in our 25 years of lending, we’ve never seen one of these loans close. Again, the VA mortgage loan was designed to offer long-term financing to American veterans or their surviving spouses (provided they do not remarry).

Although it seems more confusing than it is, the federal government does not generally make direct loans under the act. The government simply guarantees loans made by ordinary mortgage lenders (descriptions of which appear in subsequent sections) after veterans make their own arrangements for the loans through normal financial circles. The Veterans Administration then appraises the property in question and, if satisfied with the risk involved, guarantees the lender against loss of principal if the buyer defaults.

In the case of divorce, the Veterans Administration has several choices. If a non-eligable spouse continues to occupy the property and if the payments are made in a timely fashion, no change to the loan will be made.  In this case, the military spouse will have their eligability for a mortgage re-instated once the loan is paid off and/or refinanced out of a VA loan.  If payments are missed, and the property is approaching foreclosure, the VA might choose to refund the loan and have the payments made directly to the Veteran’s Administration.

For more information about purchasing a home in Raleigh with VA Financing or buying a home in Cary as a Veteran, please contact Steve and Eleanor Thorne with Connect With Us on Facebook in Cary, NC.  919-649-5058

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How To Shop For An FHA Loan

April 19, 2008 By Leave a Comment

FHA LoansI LOVE TO SHOP! But when you are shopping for a FHA mortgage there are some smart shopping tips!

Ask your lender how long they have been doing FHA loans. Many broker shops stopped offering FHA loans during the “subprime” days because it was more expensive to be certified to do them! (An annual audit can cost over $10,000!)  Don’t be a TEST case for the lender! (that’s literally a term used by FHA – they make “new” lenders submit cases directly to FHA for review.  This will add a minimum of 30 days to your approval!)

Ask about credit scores. FHA says that they don’t have a minimum credit score – however, many lenders are requiring a score of at least 600. There are some exceptions, but be leary of someone who only memorized the FHA guidelines – and doesn’t quickly tell you that Investors can and do apply their own guidelines on top of the FHA guidelines (especially since Fannie and Freddie say they will soon stop purchasing loans with scores under 620!).

Ask for a Good Faith Estimate. Different lenders charge different fees.  Just because someone offeres you a lower rate – doesn’t mean it’s the cheapest mortgage!  Check the “total cost to borrowers.”  Also make certain that they have a fairly accurate number for taxes and insurance.  Some lenders “lowball” numbers in an effort to make you feel more comfortable with a quote!

Remember – there’s more to shopping for a mortgage than the RATE!

If you are shopping for a FHA loan in NC call Steve and Eleanor Thorne, FHA Experts at Connect With Us on Facebook in Raleigh, NC.  http://www.stevethorneonline.com

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No Credit? Think FHA!

March 19, 2008 By 9 Comments

fha loans cary ncStudents are studying their way through college – not building credit…

Once you have a job, and you want to purchase a house, how do you create credit?

FHA allows mortgage lenders to accept loans from those who do not have a credit score. We are required to “build credit.”  This means that we need to verify alternative credit that you’ve paid.  We will need at least 4 alternative sources – and they can include:

  • Rent (keep your cancelled checks!)
  • Insurance
  • Cable
  • Telephone / mobile bill
  • Electric Bills

For this reason – you want to have the leases in your name – or make the payments for your portion of the bills directly to the utility company.  Start now keeping records  – you’ll need at least 12 full months of credit history – even from an alternative source!

Contact the FHA Experts to get pre-qualified for a mortgage in Cary, Steve and Eleanor Thorne, 919-649-5058

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Let FHA Help You Relocate!

March 10, 2008 By Leave a Comment

FHA allows folks to only have one FHA mortgage at a time, unless… you meet one of these 4 exceptions.

1. Relocations: FHA says that “if the borrower is relocating and re-establishing residency in another area not within reasonable commuting distance from the current principal residence.”
The employment can be voluntary, meaning that your employer does not need to mandate the relocation for you to qualify for this exception.

2.  If your Family Size Increases!: FHA says you can get another FHA loan (without paying the first one off) “if the number of legal dependents increases to the point that the present house no longer meets the family’s needs.”  A new appraisal will need to be ordered and the existing FHA mortgage must be below 70% of the appraised value.

3. Vacating a Jointly-Owned Property: If you are getting a divorce (for instance) and your spouse will continue to occupy the existing property that has an FHA mortgage on it – FHA says you can get another FHA loan.  Because of their common sense underwriting guidelines, this could be a big boost in a difficult situation! K

4. “Kiddie Condos”: Kiddie Condos are not just for children, and they are not limited to Condominiums – it’s just a term commonly used in the mortgage industry to describe a Non-Occupying Co-Borrower.  FHA says, “a non-occupying co-borrower on proeprty being purchased with an FHA-insured mortgage as a prncipal residence by other family members, may have a joint interest in that property as well as in a principal residence of their own with a FHA-insured mortgage).

    FHA prohibits investor loans of any kind – and these exceptions should not be used to aquire rental property.

    If you have questions about FHA loans contact Steve and Eleanor Thorne with Connect With Us on Facebook!  Call us at 919-649-5058

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