Category: Mortgage

15 Feb 2016

4 Ways to Prevent Buyer’s Remorse

If you’ve done your homework, you come equipped to your first house-hunting excursion with a list of non-negotiables. Perhaps you’ve established a budget, identified potential neighborhoods and pegged near-by amenities that you can’t live without. Here are the four most common mistakes buyers make and how to prevent those uncomfortable feelings from creeping over you right after you’ve signed the purchase contract. Buying a house that’s too much for your budget In the midst of a seller’s market, bidding wars can break out, and before you know it, you’re offering way over your maximum budget in hopes of winning the war. Operating this way can make you quickly regret your decision, as it could possibly leave you cash-strapped and stressed...
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1 Feb 2016

Before Closing, Don’t Do These 5 Things

You’re approved! The contract is signed on the house, the closing date is set and you are ready to go! But hold on. Don’t go buying new appliances the new house or a new car for the new commute just yet! Why? Because your credit is monitored right up to the day you sign the contract. Lenders will question any big transaction or change in financial status until you have the keys in hand. So be aware that not only is a credit check run when you apply for a mortgage, but another is run just before you close. So avoid these 5 things before closing on your home—or risk losing it before it’s even yours! Don’t change your job status. Banks are looking...
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1 Feb 2016

Before Closing, Don’t Do These 5 Things

You’re approved! The contract is signed on the house, the closing date is set and you are ready to go! But hold on. Don’t go buying new appliances the new house or a new car for the new commute just yet! Why? Because your credit is monitored right up to the day you sign the contract. Lenders will question any big transaction or change in financial status until you have the keys in hand. So be aware that not only is a credit check run when you apply for a mortgage, but another is run just before you close. So avoid these 5 things before closing on your home—or risk losing it before it’s even yours! Don't change your job status. Banks are looking...
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8 Jan 2016

Tax time—a(nother) great time to be a homeowner.

If you’re thinking that 2016 may be the year for you to become a homeowner or make a move, we agree! So sharpen your pencil, talk to your accountant, get to house hunting and start enjoying the tax benefits on your 2016 return. Mortgage Interest Deduction For most homeowners, the bulk of your mortgage payment, at least for the first few years, goes to interest. And under current tax laws, mortgage interest paid is deductible, unless your loan is more than $1 million. Mortgage interest on a second home is also usually fully deductible. Just consult current tax laws to make sure the IRS can’t consider the place a residential rental property and nix the deduction. Interest tax breaks don't end with your home's...
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1 Jan 2016

Housing Leads the Way in 2016

It’s official. 2015 is in the books and we’re moving full-speed ahead into 2016. When it comes to real estate, we have much to be thankful for and encouraged about. Housing leads economic recovery as well as economic downturn. This has always been the case throughout history. This recovery has been long and steady, unlike no other. Prices, however, recovered faster than anyone anticipated. This appreciation has been brought to you by lack of inventory. Builders have taken a cautious approach. Baby boomers are taking their good old time downsizing; they are simply staying put. And active buyers are all competing for the same properties and price points. There are two interesting trends we are seeing. It seems more and more buyers of...
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17 Dec 2015

The Rate Increase is Here

At the Federal Reserve meeting this week, it was announced that the Fed will indeed increase interest rates, starting with today’s announcement of a .25% Federal funds rate increase. The Fed determines the interest rate for very short-term debt. This rate influences interest rates on credit cards and car loans and has some effect on long-term debt like mortgages. This is the first time since 2006 that the Fed has raised interest rates. The increase, which has been forecasted for the past few years, was the result of strong jobs reports and other key indicators that the Fed has been closely following. In short, when the economy gets better, the Fed raises rates to keep the economy from getting out of control, i.e....
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20 Nov 2015

Buyers Need to Understand Timing

After nearly two months of originating TRID loans under the new regulations, one thing is very clear. Buyers must understand and respect the timing and deadlines involved. Here are some key dates buyers need to keep in mind: Application Date. Submitting your mortgage application as early as possible in the home-buying process is more important than ever. Also important is gathering the documents required to apply. Closing Date. This is the date agreed upon by the buyer and seller for closing. When working with your lender, make sure your loan is clear to close (no other conditions required) at least one week before this date to ensure a smooth closing. Appraisal Received Date. The lender will let you know when your appraisal has been...
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20 May 2015

The market for jumbo loan financing

There is a lot of good news as it relates to buyers who are looking into financing a mortgage with jumbo loan terms.  So what exactly is a jumbo loan?  This is a loan in excess of FNMA/Freddie Mac’s loan limits.  In the Carolinas, this is any loan over $417,000.  This limit has not changed in the past few years.   A few years back, jumbo loans were less available than they are today. The rates/terms for jumbo financing have gotten considerably better over the last few years.  In fact, many times they are the same or better than a typical loan program. There are also more lenders offering these loan programs, so there are more choices and more options for financing. The issue...
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23 Mar 2015

Get Ahead on Your Offer

The “spring” real estate market has certainly started early this year, and we’re seeing lots of buyer activity. And with tight inventories in some markets, we are also seeing a resurgence of multiple offers. So what can you do, as a buyer, to make your offer stand out? The answer, indisputably, is pre-approval. This requires you as the buyer to gather all required documentation upfront and complete a full application – as you would if you had already found a property. Pre-approval is particularly important if you are a first-time homebuyer – and that’s 33 percent of today’s buyers, according to the National Association of Realtors 2014 Survey of Buyers and Sellers.  But the paperwork required to get a mortgage is a turn-off...
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23 Feb 2015

The Myth about Credit Inquiries and Mortgage

One of the biggest concerns when shopping for a mortgage is that multiple credit inquiries by lenders will negatively impact your credit score. Actually, there's very little impact when your credit is pulled for a mortgage inquiry. The three credit scoring companies – Experian, Equifax and Transunion – allow you to specifically shop for mortgages and do not penalize you for it. Unlike other credit inquiries, which will affect your credit score negatively for each credit pull, mortgage inquiries are treated as just one inquiry – as long as they occur within 30 days. Since your mortgage is most likely the most expensive purchase you will make, it is prudent to shop around for rates and overall financing costs. This specific 30-day...
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