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...]

Filed Under: First Time Home Buyer Tagged With: , , ,

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...]

Filed Under: First Time Home Buyer Tagged With: , , , , , , , , , , , , ,

What if Mortgage Rates Went to Zero? Would You Buy Then?

September 28, 2010 by Leave a Comment

I am a self proclaimed economics junkie, nerd, enthusiast. I got really excited looking at some recent information about the Economy and Interest rates!

A survey done by CNBC of  leading market participants indicates that THEY believe the Federal Reserve will boost it’s balance sheet by about a half a TRILLION dollars in the next six months.

If you are like one of my friends, you are scratching your head going, “and I care about this because….?” Well you care about this because if the Fed does this – a likely benefactor would be LOWER Mortgage Rates.

The Fed stopped buying mortgages in March, and rates didn’t skyrocket… but they just are not going below certain thresholds. The idea is that the Federal Reserve will have to come back into the market in some fashion, and when they do, mortgage rates will likely go lower.

But HOW low will they go?  And would a rate at, or near zero, have first time home buyers running to buy like the next $8000 Tax Credit?

“The difference between a 4.5% and a 3.5% mortgage isn’t that great. If we were at 10% and rates fell to 5%,” that drop would attract much more borrower interest. “When you’re talking about incremental declines in interest rates, it does add some [demand] but not as much as you’d think.”

Mr. Bernanke is scheduled to speak this Thursday and there will be even more people listening to his “tone” to see if there’s any hint about deflation and the Federal Reserve”s Balance Sheet. If the CNBC poll is correct, we could get below the current stale mate.  Either way, though, mortgage rates are at the historical low point and that’s only ONE of the reasons people are buying in the Raleigh / Cary real estate market!

To find out what you can qualify to purchase in NC, call Steve and Eleanor Thorne, Mortgage Banker in Cary , 919-649-5058.  We have the best rates and the lowest fees for mortgage loans in NC Do you think we need a new tax credit?  Read this

Filed Under: Housing News Tagged With: , , , , , , , , , ,

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...]

Filed Under: First Time Home Buyer Tagged With: , , , , , , , , , , , , , ,

Buying a Home after Foreclosure

June 20, 2010 by 3 Comments

Been there - Done ThatIf you are one of the millions of families that lost their home in the last couple of years to Foreclosure… you might think…

Been There – Done That

You might not want to own a home again! 

But if you’re one of those folks who truly does want to purchase again, here’s some potentially good news.

USDA says that they will allow you to purchase a new home to owner occupy, after foreclosure if you’ve done the following things:

  • Wait 3 years from the date of the Foreclosure.
  • Re-establish Credit
  • Have Credit Scores that meet the guidelines (as of the date I am writing this, that means you need a 620 score.)

Here’s the other part… you need to DOCUMENT what happened, and why you ended up in a Foreclosure. 

“FHA insured mortgages are generally not available to borrowers whose property was foreclosed on or given a deed-in-lieu of foreclosure within the previous three years. However, if the foreclosure of the borrower’s main residence was the result of extenuating circumstances, an exception may be granted if they have since established good credit…

This does not include the inability to sell a home when transferring from one area to another.”  So you MIGHT be able to buy after two years.

My “real life” answer to this question is… in today’s credit environment, it’s going to be HARD to get a Bank to loan you money for a home if you had your home foreclosed upon less than 3 years ago.  I know what the guidelines say, but Bank’s do not have to follow guidelines set by FHA. 

FHA does not say you have to have a 620 credit score, but there are VERY few lenders who will allow you to purchase a home without at least a 620 score!  There are some Banks that will not allow you to purchase with FHA if you have ANY lates on ANY accounts in the last 12 months!  That’s not an FHA guideline, that’s a BANK rule, so again – I’d say - you might still be forced to wait 3 years, and have all of your documentation in order!

These guidelines are different from the Fannie Mae / Freddie Mac Conventional Guidelines… And these foreclosure guidelines are changing OFTEN… so I would not rely on information you get from an online site.  Call a loan officer.

If you are considering a mortgage loan in NC, call Steve and Eleanor Thorne, Corporate Investors Mortgage Group, 919-649-5058

Filed Under: USDA Home Loans Tagged With: , , , , , , , , , , , , , , , ,

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

Filed Under: First Time Home Buyer Tagged With: , , ,

Congress Making Changes to FHA Mortgages

April 30, 2010 by 2 Comments

The House Financial Services Committee acted yesterday to move forward H.R.5072, “FHA Reform Act of 2010″ which, in part, makes a move to raise the ceiling on annual FHA mortgage insurance premiums.

FHA does not make mortgages loans, they INSURE them. As an INSURANCE Agency, they are required to hold reserves against any claims  - and because the national default rate is still very high, they’ve had tons of claims.  They are required to hold a 2% capital reserve rate, and it had fallen to .53.

FHA’s Mortgage Insurance Premium is kinda’ like PMI.

Earlier this year Congress approved changes to increase the UpFront Mortgage Insurance Premium (MIP) FHA charges to 2.25%. They also changed the amount of Seller Contributions to 3% (from 6%).  The latest changes will increase the amount of MONTHLY Mortgage Insurance Premium (MIP) higher, in a gradual process.  FHA says it will increase the monthly MIP to an annual rate of @1.5%.

This will affect the “affordability factor” of purchasing for buyers. Currently, a FHA mortgage of $290,000 has a monthly MIP payment of $132.91.  When the MIP is increased to the full 1.5%, that same $290,000 loan will have a monthly MIP charge of $362.50.

If the full Congress approves the annual increase, FHA will then shift some of the upfront premium to an annual premium to reduce the burden on borrowers at closing.

Either way – the cost of borrowing from FHA is going to be more expensive over time – and borrowers will be looking for property that is $30,000 to $40,000 LESS than the properties they are purchasing now. That’s important to remember for those of us working with First Time Home Buyers!

The GOOD NEWS is that it looks like the provision to force FHA downpayments from 3.5% to 5% was dropped. We’ll continue to monitor this.

If you are considering a mortgage loan in North Carolina, and you want more details on FHA  Mortgage Loan Guidelines – please call Steve and Eleanor Thorne, FHA Mortgage Loan Specialists!  We have over 20 years of experience providing homebuyers with the BEST mortgage rates available!

Filed Under: FHA Mortgage Loans Tagged With: , , , , , , , , , , , , ,

Want the $8000 Tax Credit But No $ For Downpayment?

April 26, 2010 by 1 Comment

The $8000 First Time Home Buyer Tax Credit in 2010 expires at the end of this week, and people are really working hard to try and get in under the wire!

Tons of the people we are talking to do not have the money for a downpayment – and they are having trouble getting a Seller to accept a contract for USDA Home Loan… because the USDA Single Family Rural Development Home Loan Program is running out of money.

So what can you do if you don’t have a pile of money laying around for a down payment?

You can get a gift! You can file for the Tax Refund this year, even if you have already filed your taxes!  Get a gift from a Family Member!  Rob your 401K and pay it back!  Don’t let this opportunity pass!

Be careful not all purchases will qualify for the 2010 $8000 TAX Credit!

Here are some items to remember when you are trying to qualify for the credit:

  1. The home may not be acquired from a mother, father, spouse, or child
  2. The home may not be acquired from an entity in which you’re a majority owner
  3. The home may not be acquired by gift or inheritance
  4. The home’s primary buyer must be at least 18 years of age
  5. The home’s purchase price may not exceed $800,000
  6. The home must be meant for use as a primary residence

Remember – you must live in the property as your primary residence for at least THREE YEARS or you will owe Uncle Sam the refund. If you have other detailed questions about the CREDIT – look at the IRS Website.

We are still taking applications for folks who are writing contracts for USDA Home Loans. There’s still some money available – but it is going fast. If the seller will not accept a contract with USDA financing – consider FHA!  It’s a 3.5 down payment – and it CAN be a GIFT!

For answers to your questions about qualifying for a mortgage loan, contact Steve and Eleanor Thorne 919-649-5058. We have the best rates available and we lend all across North Carolina, Virginia, South Carolina, Georgia, Florida and Maryland.

Filed Under: FHA Mortgage Loans, First Time Home Buyer Tagged With: , , , , , , , , , , , ,

USDA Home Loans Could Be Getting More Expensive

April 20, 2010 by 6 Comments

4/20/10 – As we’ve mentioned (a couple of times) USDA Single Family Rural Development Home Loan Program is running out of money… WHEN that magic date is – we don’t know… But we know it’s coming in the next few weeks.

The Hombuilder’s Association of America is in Washington this week to discuss (read they are begging Congress) ways to get more money to the program FAST!  No wonder – it’s a zero down payment loan, and it’s the hottest mortgage product we have! (Guidelines are pretty strict read here if you’ve had a foreclosure or bankruptcy)

Last week two members of the House proposed legislation that would continue the funding… but both bills add requirements that would force lenders to raise the rates for these loans! 8o((

Rep. Shelley Moore Capito (R, WV) the ranking Republican member of the House Financial Services Subcommittee on Housing and Community Opportunity, late Tuesday introduced legislation that would increase the current 2% guarantee fee to between 3% and 4%.

Separate legislation was recently introduced by Rep. Paul E. Kanjorski (D, Pa.), chairman of the House Financial Services Subcommittee on Capital Markets. That version has the lender paying a 3.5% upfront fee when the loan is issued, while authorizing an annual assessment of .5% of the outstanding balance.

Neither program places additional cost on the taxpayers.

The next step is discussion at committee level before a final bill is moved to the House floor. That’s expected to happen quickly, given the money is quickly dwindling during the key Spring selling season.

Okay so WHY does Congress feel that it is necessary to either add a downpayment requirement and/or increase the Guarantee Fee?

These are ZERO Downpayment loans (for current guidelines click here) that have to be located in a more rural area.  There are income requirements… these are not $750,000 loans in Los Angeles (where FHA has way high loan limits). For the most part, these are $200,000 to $300,000 loans made to people living in outlying areas who are blue collar workers.  They have 2 or 3 jobs, and they are conservative, and the USDA Home Loan program has a LOW default rate!

I’m hopeful that Congress gives the program more money – and I hope upon hope that they don’t make it more expensive!

If you have questions about taking advantage of the USDA Home Loan program in NC – call us.  We can tell you exactly what’s happening now! Steve and Eleanor Thorne, USDA Mortgage Specialist, 919-649-5058

Filed Under: USDA Home Loans Tagged With: , , , , , , , , ,

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.

Filed Under: First Time Home Buyer Tagged With: , , , , , , , , , ,
« Older Posts