John Smith's Blog

Charlotte Home Mortgage:  Hurry!  Still time, but not much!

The leaves are turning and fall will soon be over.  Another thing that will be over soon is the first time homebuyers $8,000.00 tax credit.  If you are looking for a Charlotte home mortgage and still haven’t found the house of your dreams, you better HURRY!  As of today, there are only 35 days left to close on your new home. 

This weekend I was driving around the many communities around Charlotte and noticed all the many "open house" signs.  I don't think I have ever seen this many open house signs.  Many home buyers and their Realtors are prepping their listings for the final push.  Buyers, getting a Charlotte home mortgage, are looking for bargain and sellers are looking for eager buyers to close on their home before the tax credit expires.  And although there may be some excitement in the air, heading into these last days, buyers and seller must be aware how soon the deadline is coming (Nov. 30th).  I have received 2 new contracts just this weekend for first time homebuyers looking to close on their Charlotte home mortgage, and I have 35 days to do it!  This can still be accomplished, but you need to be prepped and ready to execute. 

Many of the Big Banks have even already stopped accepting mortgage applications, because they are unable to hit the Nov. 30th deadline.  It is important you have a plan and execute that plan quickly with the support of mortgage and real estate professionals that have the ability and experience to guide you through the process.

Here is a short list of things you need to do:

1)  Get Income Together:  Get your most recent pay stub and last years W-2 or tax return.  It is also helpful to have you most recent bank statement, if you have one.  If not, be familiar with your balance.

2) Get Pre-Qualified:  Call me or a trusted mortgage professional as soon as possible and request a pre-qualification.  To save time, you should be able to do this over the phone.  The focus is on... Income, Credit and Down Payment.  If you clear these basic hurdles over the phone, then make an appointment to get pre-approved.  If there is some concern about the any of these, your mortgage professional will guide you on the next step.

3)  Get Pre-Approved:  In a pre-qualification, you just verbally offer the qualification information over the phone.  A pre-approval is actually meeting with a mortgage professional and verifying everything.  At that time they will go over terms and the mortgage process.  (If they require an upfront "application fee"... leave!)

4)  Call and make appointment with Realtor:  Make sure you put the horse in front of the cart, so get pre-approved first and then connect with a Realtor.  The Realtor wants to make sure you are a bonafide buyer and ready to look at properties.  If you are pre-approved, they will be able to do their job quicker and more effective.

5)  "Get Game Face On":  You are pre-approved and your Realtor has narrowed down your search to your top 6 houses.  Schedule appointments to see all these house in 1 day.   

6)  Make Offer:  Once you seen the 6 houses, be prepared to make an offer on one.  (You don't typically want to rush this process, but this article is about meeting the fast approaching deadline, so time is crucial).  Your Realtor will guide you through the offer process.

7)  "Accepted Contract!":  You have an accepted contract on a house!  At this point your mortgage professional and Realtor take over moving forward.  I encourage you to hire an inspector to do a home inspection.  Do this ASAP.

These sound like obvious simple steps, but each one is important.   You shouldn't have any problem closing on a mortgage transaction in 35 days, even a FHA mortgage, if you quickly follow these steps.  The longer you wait, the more pressure will result and may jeopardize being able to make the deadline!

I love to work with first time homebuyers and I take a lot of pride "holding the hands" of my clients all the way to the closing table.  If you are looking for a Charlotte home mortgage or a mortgage for your property in the surrounding Charlotte area, and I can be of any assistance as we approach these final crucial days, please feel free to call me and my team.  I have over 11 successful years experience helping homeowners achieve their dream of homeownership!  Call John"The Mortgage Smith" at 704-299-5507 or email me at john@mortgagesmithteam.com 

Charlotte Home Mortgage:  Down Payment Money is Available!

As many first time homebuyers are scrambling to find a house and get their home mortgage financing finalized before the $8,000 tax credit expires, many are also wondering if they can come up with the minimum 3.5% down payment required for an FHA loan.  The down payment is typically one of the most difficult requirements to accomplish for a first time home buyer.  I specialize in Charlotte home mortgage s and I am familiar with many down payment options for your Charlotte home mortgage and areas surrounding Charlotte.  What many lenders, banks and Realtors don’t know is that there is down payment money available to borrowers.  Many individual cities are attempting to encourage homeownership in their area, by giving down payment money to potential homeowners.  One particular area outside Charlotte, NC that I have had success with getting down payment dollars for homebuyers is in the city of Monroe, NC.  The city of Monroe is currently offering $7,500 to eligible borrowers, for their down payment needs.  There are some basic eligibility and requirements needed to qualify, but if you can meet these requirements, there is $7,500 waiting for you for your down payment. 

The best thing about this money is that it is a $7,500 forgivable down payment.  If you live in the house for 5 years, there is no part of that down payment that you will have to ever pay back.  The money is forgiven 20% each year.  Even if you did sell your house before owning it 5 years, depending on what you sell your house for, you most likely wouldn’t have to write a check out of pocket to satisfy any amount owed, it would come out of the proceeds from the sale of the home. So, even if you do sell the property after only 2 years you would only owe 60% back, 3 years 40% back, 4 years 20% back and of course 5 years none. 

I put this particular program under Charlotte home mortgage, because Monroe, NC is just one of many cities and areas in the greater Charlotte area that offer down payment money.  There are many different types of down payment money available in many different areas.  Each down payment program has their own set of eligibility requirements, but most are forgivable loans or zero interest, zero payment loans.  

If you are looking for a home mortgage and lack the down payment, please call me or have your Realtor call me to see if my team can find down payment money for your purchase transaction. 
Call John “The Mortgage Smith” at 704-299-5507 or email me at john@mortgagesmithteam.com
For more great ideas check out my website www.MortgageSmithTeam.com  We are your Charlotte home mortgage experts!

The very popular first time homebuyers’ tax credit sure went a long way in stabilizing the housing market. The proof of this is certainly consistent with the many Charlotte home loans that are closing in our Charlotte, NC office.  But as the economy improves, the Federal Reserve will begin to slow down its purchase of mortgage securities. The Federal Open Market Committee said after meeting in Washington: “The Committee will gradually slow the pace of these purchases in order to promote a smooth transition in markets and anticipates that they will be executed by the end of the first quarter of 2010.”  Federal officials can still buy up to $1.25 trillion in mortgage-backed securities with continued support for the housing markets. At this time, they have bought about $860 billion in the mortgage-backed securities program, and $129 billion (out of $200 billion program) in U.S agency bonds. And instead of shocking the market by shutting down all government assistance programs at once, the Fed will ease out their purchases and are hoping that other buyers will start increasing their activity to avoid a potential increase in mortgage rates. When the Fed’s stop purchasing mortgage-backed securities, it’s possible that we could see a .5 to 1% increase in interest rates.

According to the National Association of Realtors, existing home sales rose 7.2% in July from June, which is the highest level increase in about two years. The Federal Housing Finance Agency index indicates that home prices rose for the third month in a row, with a .3% in July from June. 

Although the market is still tough, there are signs of definite improvement for the Carolinas and the greater Charlotte area. For the first time since August of 2008, policy makers announced that the economy is in fact improving, but they are still committed to keeping interest rates low for an extended period – perhaps into the early spring 2010 season. These comments by the Fed, current interest rate position and housing statistics all combine for an ideal buying and selling season. This may be that moment we have all waited for, with the housing prices hitting their low and positioning to move back up, and interest rates at historic lows.  If you’re also able to take advantage of the $8,000 tax credit, for first time homebuyers, then you have a dynamic buying combination! 

If you are in the greater Charlotte area, including South Carolina, and considering buying a home and would like to get more information or pre-approved, please feel free to call me, John “The Mortgage Smith” on my direct line at 704-299-5507  
www.MortgageSmithTeam.com

Charlotte Home Mortgage: $8000 First Time Homebuyer Tax Credit
Many people I talk to, looking for a Charlotte home mortgage in thegreater Charlotte area, want to know if the $8000 first time home buyer tax credit that expires on December 1st, 2009 will be extended. That is a good question. But I wouldn’t dwell on the answer for too long, because as of today, there is under 45 days left to…
• find a house…
• put in an offer on…
• negotiate and have the offer accepted on…
• qualify for a loan for…
• make sure you have enough money for down payment and closing costs for…
• get an inspection on…
• appraise the value of…
• process, underwrite and produce loan documents for…
• sign documents at title (attorney’s office) for…
• make sure the loan funds…
• and have the note and deed recorded properly for…

…YOUR HOUSE!

The process, listed above, can easily take 45 days or more, depending on how much looking your doing.  As it stands, if this does not happen by November 30th, you will not get the tax credit.

Here is some good news! There are a five bills that have been introduced to Congress to extend the first time home buyer tax credit.  S.1230: Home Buyer Tax Credit Act of 2009,  H.R. 2801: Home Ownership Moves the Economy (HOME) Act of 2009,  H.R. 2006: Home Buying Credit Expansion Act,  H.R. 2619 and H.R. 2619.  All these bills offer various ways for homebuyers to benefit from buying a house; from increased tax credits, inclusion of all homebuyers (not just first time homebuyers), extending limitations of recapture requirements and adjusted gross income limits.  

Once Congress reconvenes, we will see if any of these or version of them will pass. Here is the bad news! There is less than 45 days for Congress to extend the first time home buyer tax credit and there are major issues (i.e. healthcare) that may take priority and push the tax credit to the side.

For now, we can either wait and see if the lobbying groups in DC can sway our lawmakers to believe that this is a priority or you can immediately contact a licensed mortgage professional to take advantage of the current $8000. As you may have heard your Grandfather say once or twice, “One in the hand, is better than two in the bush”.

If you are in the greater Charlotte area and looking to get a Charlotte home mortgage and take advantage of the $8000 tax credit, the time to act and get your home mortgage rolling, is now!
Call John "The Mortgage Smith" and the Mortgage Smith Team for a free pre-approval at 704-299-5507 or email me at john@mortgagesmithteam.com
www.MortgageSmithTeam.com  Our team is your Charlotte mortgage experts!