Charlotte Homes for Sale

It seems that everyday there’s a new challenge to getting approved for a mortgage. Recently, The New York Times ran an article about how being/getting pregnant during the mortgage approval process might hurt your chances of being approved for a mortgage. The fundamental issue is that when a baby makes its arrival maternity and/or paternity leave can lead to a change in household income and lenders no longer assume that one or both parents will return to work on a full-time basis. This possible change in income (especially if permanent or long-term) can affect the borrowers’ debt-to-income ratios (a critical yardstick for mortgage approval), leading to a lower loan amount approval or no approval at all.

A recent study from MIT and Harvard researchers indicates that a foreclosure reduces the value of a home by 27%! And if you own a home within only 250 yards of a foreclosed home, the value of your home drops by at least 1% on average as well (although, if you are in a neighborhood with lots of foreclosures, my experience shows that non-foreclosed home values drop by more than 1%). By comparison, if you file for bankruptcy, a home’s value drops only by about 3%. Currently, 1 in 12 homes valued at under $1 million, are in foreclosure.

 The first-time and move-up home buyer tax credits might be gone, but with interest rates at historical lows, it makes more sense than ever to buy a home now. You’ll save thousands!!!  For example, on a $200,000 mortgage at 4.5%, you could save over $43,000 in interest versus a 5.5% loan on a 30 year loan. And your monthly payments are about $122 per month lower at the 4.5% rate.

Lot of people think it’s impossible to buy a home today with low or no money down programs… but there are quite a few programs available to home buyers today in Charlotte and North Carolina, especially for first-time home buyers who have credit scores above 620.

Here’s a list of a few of the loans available  around the country;(and you don’t need to be a first-time buyer for a number of these).

• FHA Loans: require a only a 3.5% downpayment. Lots of mortgage lenders are active in making these types of loans.

FannieMae instituted new credit rules on June 1st that many home buyers are not yet aware of, but which will have some serious impact on their ability to close on a mortgage. Essentially, what Fannie Mae has done is require lenders to verify that borrowers haven’t taken on any new debt during the mortgage application and underwriting process. Even after your loan may have been approved and is ready for closing, underwriters will be looking for the following information about your credit:

New credit card rules went into effect earlier this week. Many of these rules will positively impact consumers; some might have a less positive impact down the line. Here’s a quick summary of the key provisions you should be aware of, as well as some links to more detailed information about the new rules.

• You must have 45 days notice whenever your credit card company plans to increase your rates, fees, or make other major changes to your account. You also have the right to cancel the card before any of these fees go into effect (but there may be penalties to do so, which you need to find out about prior to cancelling).

If you are a first-time home buyer or a move-up/repeat home buyer the April 30th, 2010 deadline is looming for you to take advantage of the tax credits.

• $8,000 FIRST TIME HOME BUYER CREDIT DEADLINE:  You must be in contract by April 30th and close on your new home by June 30th, 2010. To be considered a first-time home buyer you can’t have owned a home in the past three years.
•  $6,500 MOVE-UP/REPEAT HOME BUYER CREDIT DEADLINE: You must be in contract by April 30th and close on your new home by June 30th, 2010. You must also have lived in your current home for 5 consecutive years out of the last 8 years.

If you’ve been planning to buy a house this spring with an FHA loan, you need to know about several FHA financing changes coming in about six weeks that will increase your cost of borrowing. These deadlines are:

ISSUE:  FHA FINANCING – SELLER CAN NO LONGER CONTRIBUTE MORE THAN 3% FOR CLOSING COSTS AND PREPAIDS.   As a  buyer, you will likely need to have more money for closing or you could end up with a higher interest rate which could impact your ability to qualify.  This will be more of an issue for homes that are $150,000 and below. 

Would you like $23,900 in FREE MONEY from the US Government and the State of North Carolina to purchase a home in the Charlotte metro area in North Carolina?

Carolinas Realty Partners can introduce you to a program that provides $14,900 in FREE downpayment funds to purchase a foreclosure home anywhere in Mecklenburg, Union, Cabarrus, Gaston, and Iredell Counties in North Carolina’s Charlotte metro area with a sales price up to $210,000. This downpayment assistance program PLUS the $8,000 First-Time Home Buyer Credit provides a total of $23,900 in downpayment, closing costs, and tax credit incentives!

‘Tis the season to do shopping… and get bombarded with offers to open credit cards!   The deals are very tempting, too. ”Open a charge card today” and save up to 20% on your purchase!  But if you are in the market for a new home, taking advantage of in-store savings could prove be a long-term money loser.  Every time you apply for a credit card, your credit score drops.