What is the difference between loan pre-approval and pre-qualification?

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Pre-approval and pre-qualification are steps ywww.cbbaker.comou can take to line up your mortgage loan before you start house hunting in Wilmington NC. They are different, so read on:

Pre-approval:

  • is actually applying for, and getting, a conditional commitment for a mortgage loan up to a specific amount of money.
  • is usually good for 60-90 days.
  • applies, even though you might not have chosen the home you will buy.
  • often requires a loan application fee.
  • gives you bargaining power, because it tells the seller you are ready to buy and able to get financing.

Pre-qualification:

  • is the result of a lender taking a cursory look at the buyer’s income, credit history and assets.
  • states the buyer probably could afford to buy up to a certain limit.
  • does not include a loan commitment.
  • tells sellers you’re serious about buying and their house is in your price range.
  • usually costs no more than the credit report fee.

Some advantages of pre-qualification and pre-approval are:

  • A pre-approval or pre-qualification can speed closing because the paperwork for the loan has already been started.
  • You will begin learning about the financing process, and any problems that might arise can be resolved early.
  • You know in advance how much you can borrow.
  • Your offer is more attractive to the seller, because the seller won’t have to guess about whether you can afford the house.

Where do you begin when it’s time to look for a new house? Start by calling or e-mailing us with your home-buying questions. We can give you an idea of how much home you can afford to buy, then you can follow up with your local lender.

Categories: Pre-Approval for Loan, Pre-Qualification, wilmington nc real estate, Wilmington NC real estate stats 2014, wilmington real estate stats

Selling Basics | 1-2-3s Of Selling In Wilmington NC

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1604crowslanding1—Start cleaning, clearing and prepping now. Don’t waste time getting your home in order for visits by potential buyers. Clear out clutter, deep clean and move out some of your bulkier furniture to temporary storage or sell/give away/move it to your new home.

2—Secure a local agent. Selling your home in today’s fast-changing market requires you to know and do a lot more than most people have the time, energy or know-how to deal with. Work with a local agent who has experience—like us.

3—Price it right. Working with a professional agent, you will get feedback on what local home prices are doing, what the competition looks like and how the price will affect buyers.

4—Stage it, clean it, make it ready to show. Staging a home means having it look its best for buyers by giving each room a focal point and a purpose—whether you do it yourself with your belongings or you use rental items to spruce up your residence. Hiring a pro stager is another option, but make sure you have a clean base to start from and your home could be ready to show quickly.

5—Accept the right offer. The first offer could be your best offer, only offer or the start of more. You’ve got to know when to hold ’em, know when to counter and know when to call. We can help you evaluate an offer to help you determine whether it’s a good move to accept or whether you should make a counteroffer.

SELLERS: Yesterday is history. Set an asking price for your home that reflects the reality of the current real estate market—instead of rumor or yesterday’s sales prices.

6—Be patient, but pay attention.Once the offer is signed and accepted, be flexible to allow the buyer to schedule inspections and finalize financing. However, your agent and you should keep track to make sure closing/settlement is on track for the agreed-upon date.

7—Get moving. Once that offer is signed, it’s real. Get your bags packed and boxes loaded up. You’re on your way to the next stage with your home sale behind you!

Professional guidance is essential in today’s real estate market, especially in your local area. We look forward to putting our know-how to work for you.

Categories: Selling Basics, wilmington nc real estate, Wilmington NC real estate stats 2014

MILLENIALS ON THE MOVE | Starter Homes, No Longer Your Parents’ Boomerang Basement

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Millennials are broadly defined as the generation born between the early 1980s and the early 2000s. With Millennials born in 1980 turning 35 in 2015, many from the older end of this peer group are looking to buy homes and are NOT looking to continue renting or living in their parents’ home.

Actively saving. Twenty- and thirty-somethings who are serious about moving out are working hard to save up to buy property. Parents and grandparents, if in a position to give money, can help these Millennials achieve their real estate goals by giving up to $14,000 per year per individual tax-free.

Understand the value of homeownership.Millennials who are recently married, in a committed relationship or starting families are eager to have their own space. Starter homes are in demand for these groups who want to become part of the community and set down roots.

Why pay rent when I can own? Savvy young adults realize that everyone needs a place to live and it makes more financial sense to pay off your own mortgage than help pay your landlord’s.

Financing strong. The outlook for Millennials is positive as interest rates remain historically low and housing selection is generally wide. Loosening down-payment and mortgage insurance lending standards are opening more doors to homeownership for this group as well.

Competition. First-time homebuyers still are plagued by competition from investors who use all cash to scoop up desirable bargain properties. Working with a real estate pro, like us, can help buyers gain the upper hand.

Expectations. Too many buyers have unrealistic expectations for their first homes. First-time homebuyers need to realize they often will not be able to buy the type of home that their parents currently own. Many first homes need a bit of elbow grease to make them a showcase property.

Photo by imagerymajestic | freedigitalphotos

Categories: Uncategorized, Wilmington NC Neighborhoods, wilmington nc real estate, Wilmington NC real estate stats 2014

HEAVENLY Why You Don’t Need An Angelic Credit Score To Get A Loan Today

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You can get a Wilmington NC mortgage loan today even if your past financial habits have been more devilish than angelic.Here’s a look at the steps you can take this year to boost your odds to qualify for a home loan, even if your three-digit credit score isn’t as sky-high as you’d like.

Boost your income, cut your debts: The most important guideline associated with the new Qualified Mortgage (QM) rule might be the one relating to your monthly income and debts. According to the QM rules, a mortgage can only be considered a qualified one if borrowers’ total monthly debts—including their estimated new mortgage payment—equal no more than 43% of their gross monthly income.

So if you want to convince lenders that you’re a good risk, work to improve your debt-to-income ratio. You can do this by either boosting your monthly income or eliminating some of your monthly debts. The lower this ratio is, the more attractive you’ll look to mortgage lenders, even if your credit score isn’t perfect.

Consider An FHA Loan: A mortgage loan insured by the Federal Housing Administration (FHA) does come with some extra costs. But it also comes with some big benefits for credit-challenged consumers. You can qualify for an FHA loan even if your FICO credit score is as low as 500. Of course, a higher score is better. If your score is at least 580, you can take out an FHA loan with a required down payment of just 3.5% of your home’s final purchase price. If your credit score is under 580 but at least 500, you can still qualify for an FHA loan, but you’ll need a down payment of at least 10% of your home’s purchase price.

Your credit score makes a big difference in how much down payment is required. Consider a home that costs $150,000. A down payment of 10% will cost you $15,000. One of just 3.5%, though, will cost you a much more affordable $5,250.

Be Willing To Pay More In Interest: Mortgage lenders generally reserve their lowest interest rates for those borrowers whose FICO credit scores are 740 or higher. If your score is lower, though, this doesn’t mean you won’t qualify for a mortgage loan, but you will have to pay a higher interest rate. If your score is 740, for example, you might qualify for an interest rate of 4.25% on a 30-year fixed-rate mortgage loan of $200,000. But if your FICO score is just 640, you might have to take an interest rate of 5.5%—or higher—on the same loan. A higher interest rate will mean a higher monthly mortgage payment.

If your interest rate on that 30-year fixed-rate loan of $200,000 is 4.25%, you’ll pay about $983 each month in interest and principal. (This doesn’t include any money you’ll pay each month for property taxes and homeowners insurance.) If your interest rate on the same loan stood at 5.5%, your monthly payment—minus insurance and taxes—would be about $1,135.

Boost That Score: If your score is too low, of course, you will struggle to qualify for a home loan. But you can take steps to boost that score. Pay all your bills on time. Reduce your credit-card debt. If you gradually build a solid credit history, your score will rise. Just be patient. Boosting a credit score isn’t complicated, but it does take time. Expect to spend at least nine months to move your weak credit score high enough so that you’ll look like an angel to mortgage lenders.

Categories: Mortage options, Mortgage, Mortgage 101, Mortgage ideas, Mortgage options, Mortgage points, Mortgages, Uncategorized, wilmington nc real estate, Wilmington NC real estate stats 2014

Should you do it yourself when you remodel?

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Being Handy Pays Handsomely

Most homeowners have a list of things they would like to do to change and improve their homes. But moving those plans off the list and into reality is often prevented by costs, especially for labor. That’s why so many homeowners have adopted the “do-it-yourself” approach. Should you?

Don’t think you have to be an expert in masonry, carpentry, plumbing and electrical work to make your own home improvements. You can get help from books, magazines, videos, the Internet, or you could take a class with hands-on instruction. A bonus: When you learn to remodel, you’ll become a better maintenance person, saving yourself future repair costs.

If you’re just developing your handyperson skills, here are a few tips for getting the job done right at a cost savings:

  • Start with modest projects,
      especially those with low materials costs (e.g., painting). That way you can afford to redo the project if your first attempt isn’t quite up to snuff.
  • Research and plan before diving in.
      Get the training you need or talk with experts, then outline each step of the process on paper.
  • Buy, borrow or rent the proper tools.
      Having the right tools when you need them is critical to doing any job efficiently and well.
  • If you lack the skills, patience or time to do the entire project, just do part of it.
      You can ask contractors for bids that list the cost of each phase of the project, from preparation to finishing, plus materials. You may be able to save a lot by knocking down a wall yourself, removing old flooring or painting a newly installed wall.
  • Work with the professionals.
    By becoming one of the “crew,” you can cut the overall cost of the project and learn a lot in the process.

 

Categories: Remodel, Uncategorized, wilmington nc real estate, Wilmington NC real estate stats 2014, Wrightsville Beach NC

Wilmington NC Real Estate 2014 Statistics

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Wilmington NC real estate

Each month the Wilmington NC real estate market is improving.  The mortgage rates are still below 5% and home on the market are getting multiple offers.  Total units sold improved 18.27% from April to May 2014.  That is a nice indication of what the summer market will bring us.  Please call or email for any advice or insight on our local housing market.  To view all Wilmington NC real estate, we invite you to visit http://www.cbbaker.com   Here you will be able to search by map, zip code, subdivision and schools.  Sign up for instant notification if something on your wish list hits the market.

Categories: Wilmington NC real estate stats 2014, wilmington real estate stats, Wrightsville Beach NC


Kay Baker Associates | 1001 Military Cutoff | Ste 101 Wilmington, NC 28405 | kaybakerassociates@ec.rr.com | 910-202-3607 | Fax 910-338-2428

Copyright © 2017 Wilmington NC Real Estate Guide. All rights reserved. Disclaimer: All content on this blog is my own opinion and should not be treated as fact or relied upon when purchasing or selling real estate.