Real Estate Blogs Of The Carolina's

Getting the "Right" Home Finding the right home is still the biggest challenge buyers are faced with in today's market as is shown in the latest Confidence Index Survey.  Assuming the buyers find the "right" home with determination, perseverance and the help of a real estate professional, 88% of all transactions last year required financing to get the buyer's address on the home.  93% of first-time buyers needed financing. Pre-approval is an essential step that needs to be handled before buyers begin searching for a home.  The benefits to the buyer fall into the category of confidence. PRE-APPROVAL GIVES YOU CONFIDENCE Knowing the amount you can borrow  the mortgage amount decreases as interest rates rise Looking at the right priced homes price, size, amenities, location Comparing and identifying the best loan rate, term, type Uncover issues early that could affect the most favorable loan terms time to cure possible problems Bargaining po...

Start Early and Live Happily Ever-after As storybooks go, the character is introduced, they meet their love interest, a villain thwarts their intentions, true love overcomes, they marry and live happily ever-after.   It's a very familiar formula. Similarly, there is a formula that couples follow in real life.   They go to college, get a good job, rent a home, fall in love, get married and buy a starter home.   They start a family, move into a larger home, save for their children's education, start planning for their retirement and if they live within their means, they invest their surplus funds. An alternative to this might be to start investing in rental homes early in their adult life before their standard of living becomes so expensive that they don't feel like they have the money to purchase rentals.   There are infinite possibilities but let's say a single person, after getting a good job, buys a small three or four-bedroom ho...

HELOCs Becoming More Expensive   In September, the Federal Reserve raised interest rates for the third time in 2018 and they're expected to go up one more time this year and three times next year.  If you have a Home Equity Line of Credit, HELOC, you're paying more to use that money and it is going to become more expensive. It may make sense to refinance your home and consolidate the balance of your HELOC to lock in a lower mortgage rate.  Most lenders require that the combination of these loans should not exceed 80% of the home's fair market value and that you have good credit and adequate income to support the payment. A HELOC is a first or second mortgage that allows the borrower to withdraw money as needed, up to the line of credit provided by the lender.  A draw period is established where the borrower is only required to pay interest.  Since all HELOC loans are variable rate mortgages, during periods of rising rates, the cost of th...

Mortgage Free It may be an all too common belief that a person will have a house payment and a car payment for the rest of their lives.  However, with a plan and some determination, you can be mortgage free. Planning for retirement is obviously important and many times, an activity plagued by procrastination.  Some homeowners' goal is to have their home paid for by retirement, so they won't have payments.  It makes sense to eliminate a sizable recurring expense before they quit working. By making regular principal contributions in addition to the payments, the debt can be eliminated by the target retirement date. Assume a homeowner refinanced their $300,000 mortgage at 4% last year for 30 years with the first payment due on May 1, 2017.  With normal amortization, the home will be paid for at the end of the term.  Additional principal contributions with each payment will save interest, build equity and of course, accelerate the pay...

How to Clean Gutters The gutters and downspouts on your home are intended to channel rainwater away from your home and its foundation.  When they're blocked and not functioning properly they can lead to the gutters coming loose, wood rot and mildew, staining of painted surfaces, and even worse, foundation issues or water penetration into the interior of the home. Most experts recommend cleaning the gutters at least once a year.  More often might be necessary depending on the proximity of leaves and other debris that could collect. If this is a task that you feel comfortable about tackling yourself, there are few things to consider.  If the debris is dry, it will be easier to clean the gutters.  Safety is important, and precautions should be taken such as using a sturdy ladder and possibly, having someone hold it while you're on the ladder. Other useful tools will be a five-gallon plastic bucket to hook on the ladder to hold the debris; w...

Act Decisively Whether it is hesitation or procrastination due to uncertainty, it can cost buyers by having to pay more for both the house and the financing.  This is one of those markets where most of the experts expect interest rates and prices will continue to rise through 2019. The National Association of REALTORS? reports there is currently a 4.2-month supply of homes for sale which is close to the same as last year's inventory.  Normal inventory is considered to be a 6-month supply. If during the period you're waiting to buy, the price of the home goes up by 5% and the mortgage rate increases by 1%, the payment on a $275,000 home with a 95% mortgage could be $233.80 more each and every month.  Over a seven-year period, the delay to purchase would total close to $20,000. To act decisively, you need good information; a confused mind will not generally make a decision.  In today's market, you need to know exactly what price home you c...

What to Avoid Before Closing Your New Home It’s understandable; you’re excited; you’ve found the right home, negotiated a contract, made a loan application and inspections.  Closing is not that far away, and you are making plans to move and put personal touches on your new home. Even if you have an initial approval on your mortgage, little things can derail the process which isn’t over until the papers are signed at settlement and funds distributed to the seller.  The verifications are usually done again just prior to the closing to determine if there have been any material changes to the borrower’s credit or income that might disqualify them. Most lending and real estate professionals recommend  NOT  to: Make any new major purchases that could affect your debt-to-income ratio Buy things for your new home until after you close Apply, co-sign or add any new credit Close or consolidate credit card accounts without advice from your lender Quit your...