Last updated April 25, 2008 There are a few events in life most people will always cherish. Your first car and that feeling of freedom (a feeling which grows only more once the car is paid off). The birth of your first child and the unfathomable love for such a tiny creature. And of course, your first home. The feeling of anxiety and excitement all at once. I know the doubts, worries and concerns about buying a home. So let's walk-thru a few of the comments I've heard (or have even said myself) about why they (or you if it applies) cannot buy a home. 1) A mortgage is a big responsibility. I'll just rent for another year or two. You're right. A mortgage is a big responsibility. But I have news for you. Unless you still live with mom and dad, you're already paying a mortgage - its called rent. Wonder why your rent goes up every year? Its because the taxes and insurance on your apartment complex goes up every year. 2) I'm gonna wait for the market to get better. Thanks to foreclosures, you can buy a house for possibly thousands below appraisal value and interest rates are still at all-time lows. But you want a brand new home? Ok, builders are offering some great deals just to move their product. 3) I need to improve my credit. These words do have some validity to it. If you have 4 repossessions, 3 foreclosures, and 2 bankrupties (and a partridge in a pear tree), you may have a point. But when I follow up with, "When is the last time you had your credit pulled by a lender?", I usually get "never" or "years" or something of the sort. I have several clients that dropped to their knees when they were approved for a loan (with great interest rates I might add). I say all this to say that no one knows what the bank is looking for, except the bank. If you don't know where you stand, how can you determine a path to get where you want to go? *********************************************************************************************** June 26, 2008 "I want to wait to see what the market does" "We want to wait for the market to recover" "We'll wait till things get better" "It doesn't seem to be the right time to buy" Surely in this day and time, most buyers, especially new buyers have said this, whispered it, thought it, emailed it, wrote it down, or made smoke signals. In the past few months, I have definitely heard my share of some form of the above. But I want to shed some light on another way of thinking about the current situation. Buying a house is like buying into any other investment, there are going to be periods where prices rise and then they drop, only to rise again. For those who can qualify for a loan, now is one of the best times to buy. Why wait to buy a house after the value has increased on it - when you can purchase it now for a lower price resulting in lower payments. This is especially true in hard hit areas like Florida where home prices are severely dropping. Although Charlotte still ranks as one of the best cities in the nation when it comes to increased home values (actually its THE BEST), there are still opportunities to get the home you want for a great price - including new homes. If you found the home of your dreams for $130,000, why would you wait until the value went up to $165,000? If you have an answer to this question, please email it to me and I'll add it to the next editorial. ************************************************************************************************ November 25, 2008 Lets try an exercise: Close your eyes, clear your mind, and then for three seconds just sit in complete silence. OK, now open. Thank you for participating in a moment of silence for my 1999 Toyota Rav-4, which died recently on I-77 (blown engine). I cried on this fateful night because it pushed me out of my comfort zone and forced me to buy another car. As a woman, I dread car dealerships and as a cheap woman, I hate car payments. But I digress. My initial reaction is to contact my bank. After all I have 2 checking accounts, a savings account, an IRA, and a mortgage with them. My credit is pretty average so I went in with confidence. Well, imagine my hurt when I was denied. (Can you keep a secret? Shhh...don't tell anyone, but I had a car repossessed over 6 years ago and it came back to haunt me). I feel like I can trust you, so I don't mind telling you that I cried and I was angry. But then I had to regroup and remember its not personal and my credit doesn't define who I am as a person. But I can't stop on my journey for a car. I need it for my business and my family. So I studied on what kind of car I wanted and I adjusted my wants and needs to suit my price. Long story short, I ended up at a car dealership and got a better rate than I would have gotten at my bank. Why am I telling you all this? Simple. Buying a home has very similar obstacles, but they are manageable obstacles just the same. To start the process, you are going to have to get out of your comfort zone. Eventually, you will have to submit your personal information to someone to see where you stand. - Decisions made are not personal. Banks have their policies already set. Being denied does not define you as a person.
Do your research. Don't rely solely on others for all your information. Should you be able to trust everyone involved - yes. Do others in charge always care about the client - no. Knowledge is power. Be willing to prioritize your needs and wants. Remember, its called extras, not freebies. Most importantly, start preparing. Buying a house is never "No money down". Inspections have to be paid for, earnest money checks have to be written, and banks look upon you more favorably when they see money being saved.
Its not easy, but nothing worth it ever is. ************************************************************************************************ April 20, 2009 I know, I know, you have heard it all before from three dozen different agents - "NOW IS A GREAT TIME TO BUY!!", "GET IN NOW WHILE HOME PRICES AND INTEREST RATES ARE LOW", "WHY WAIT FOR HOME VALUES TO GO BACK UP?". Do I believe all of it? Of course I do because its true. But I'm going to tell you what others aren't saying or maybe don't know - there are some great programs in the Charlotte area that can help you get into homes. I mean some really great programs. - TEACHERS, POLICE OFFICERS,FIREFIGHTERS, MEDICAL PROFESSIONALS. If you work within any of these fields, you may qualify for the Good Neighbor Next Door program. In this program, you could possibly buy a HUD home for 50% off.
- NEED FUNDS FOR DOWNPAYMENT OR CLOSING COSTS. The House Charlotte program provides up to $7500 to be used as necessary, ie closing costs, downpayment, interest rate buy down, etc.
- WANT A GREAT INTEREST RATE. The NACA program provides assistance throughout the entire home buying process, while guarenteeing a below market interest rate. The bonus - this program is not credit score driven.
Of course, there are qualifying factors to all of these program, but nothing too stringent. If you want to know more about any of these programs, do not hesitate to call. ********************************************************************************************* P.S. As of today, the NACA interest rate is 4.375%. |