According to Mortgage Match new rules will make it mandatory for Mortgage Lenders to give mortgage applicants credit scores and credit report factors used during the loan application process.  If a Mortgage Lender quotes an applicant an interest rate and points that the loan will cost and there is a difference between interest rate and costs quoted to other applicants the loan officers will be required by Federal law as of July 21 to:

“–Tell you that you received a less favorable offer because of negative information in your credit bureau files;

–Provide you the actual credit scores used for your rate quote;

–Disclose the name and contact information of the credit reporting company that supplied the scores that led to your less favorable quote;

–Provide consumer education materials explaining credit scores, how they are used, and how your own score ranks against other applicants, plus the credit file factors that may have depressed your score. For example, if maxed-out credit cards and late payments are in your files, they could play significant roles in lowering your credit scores” per Mortgage Match.

The applicants will be able to have access to their credit report and the whole loan application process will become more transparent for the applicant.  Consumer education materials will be available for the applicant, so they can see why they were turned down, or received a higher interest rate.  They will have the right to obtain a  free credit report if turned down for the loan.

Wrightsville Beach is a hidden gem that we treasure for it’s clear crystal clear waters, quaint atmosphere and wonderful people.  With Banks Channel, ICWW and the Altlantic ocean at our fingertips what is there not to like.  Great restaurants, a couple of shops and fishing piers provide entertainment for all.  We are pleased to  share with you our newest waterfront listing just in case you are interested in Wrightsville Beach.

www.WrightsvilleBeachWaterfront.com

Spectacular dream home on Banks Channel with over 4100 sq. ft. of gorgeous living area. 5 bedrooms and 4.5 baths in a well thought out open, floorplan with ELEVATOR. Incredible views await you from most every room including large decks from the owners suite and main living area. Vintage inspired kitchen w/bead board cabinets, Champaign and cream granite counters, kitchen island with built-in gas, downdraft cook top, and 2 raised breakfast bars. And a breakfast room with uninterrupted views of the channel and your private pier with floating dock and 2 boat lifts. One is a 13000 lb. lift for your fishing machine and the other a 3000 lb. lift for smaller pleasure craft. A recently new bulkhead was installed along the beautiful backyard with sod, knockout roses and other indigenous shrubs and bushes. The large owners suite has beautiful Brazilian Cherry floors and a fireplace that is shared with the spa like master bath offering unsurpassed views from the 2 man whirlpool and separate walk shower.

Over 4100 sq. ft. 5 BR, 4.5 bath dream home on Banks Channel with private pier, floating dock/gazebo and 2 boat lifts. Incredible Views. Prepare to stay awhile, because you have just found your new home.

Enjoy.

If you find that you are in need of help with your own home financial situation, or you would like to help someone out of their financial situation by purchasing a short sale,  rely on us to help.  Certified Distressed Property Expert can guide you through the selling and the buying process in a far more knowledgeable and timely process than doing it yourself.  Contact us NOW, by signing in below and we will contact you immediately to start the process of selling your home as a short sale or  looking for short sales to purchase. A free list of current short sales and foreclosures will be emailed to you.  Please sign in here.  http://www.cbbaker.com/shortsales.php

The proverbial question every buyer who is in the loan process has is “Is this the best time to lock in my rate”.  The rates are creeping up but still under 5%.  Well, Warren Buffett, one the wealthiest and most highly successful investors  is “locking” in now.  His Berkshire Hathaway Company just sold $1.5B in fixed debt, mostly in 10-year Notes, in order to refinance their adjustable rate loans.  Mr. Buffett has not made comments on the move – but it is clear to us that he sees rates gradually moving higher over time as the US economy improves.   Business Week states “The market scrutinizes Buffett’s moves very closely and this would indicate he’s thinking interest rates in the longer term may go up,” Vijay Chander, Hong Kong-based head of credit strategy at Standard Chartered Plc, said in a phone interview. That’s consistent with our house view that the U.S. economy is improving.”

“The world’s most successful investor locked in interest payments on most of the debt as a report showed U.S. manufacturing expanded in December at the fastest pace in seven months, spurring confidence the world’s biggest economy is gaining momentum. Former Federal Reserve Governor Frederic Mishkin said yesterday that while the central bank will complete its $600 billion bond-purchase program, a third round of so- called quantitative easing to spur growth is unlikely”

So, buyers it is a great time to buy a home and lock in with a great wait.  It looks like the rates will probably be holding steady or increasing.  Search 24/7 on www.cbbaker.com .  Call and we can send you instant emails when something in your price range hits the market. Happy Buying.

Kay Baker & Associates

This time of year everyone is in a hurry trying to get all the shopping done, homes decorated and cards in the mail.  Take a minute to slow down.  Think of others and ask yourselves what you could do for someone else that might help them out at this time of year.  There are many organizations that need help, especially during the holidays. The feeling you get when you help someone else is the best present you could ever receive. So, here are just a few of the organizations that would love to hear from you.

Get involved in Wilmington volunteering!

• North Carolina Food pantries and Soup kitchens Wilmington Groups and Organizations
• Angel Food Ministries
• American Legion post locator
• American Red Cross – Local Chapter
• Chambers of Commerce in North Carolina
• Habitat for Humanity – Local Affiliates
• Jaycees
• Kiwanis clubs in North Carolina
• Lions clubs in North Carolina
• Meals-on-Wheels Volunteer
• Rotary clubs in North Carolina
• VA Facilities in North Carolina
• Veterans of Foreign Wars post locator
• Volunteer Opportunities for Wilmington, North Carolina
  • VolunteerMatch.org
  • ServeNet.org
• Non-profit Groups in Wilmington and North Carolina
  • MelissaData – Wilmington Nonprofit Organizations Lookup
  • GuideStar.org Search
  • Foundations in North Carolina
  • Community foundations (by state)

Kay Baker Google Map QR code

My Google coupon is a QR code and will take you directly to my Google Places and you will be able to access my profile on Google maps.

Maybe soon, we could put codes on For Sale signs and buyers can access information with one scan.  Technology is changing the way we do business.

The Pending Home Sales Index a “pending prediction” indicator based on contracts signed in April, rose 6.7 percent to 90.3 from 84.6 in March,
which is even above the April 2008 index of 87.5.

To get the first time home buyer credit of $8,000, contracts must be firmed up by November 30, 2009 to receive the credit, so we look forward to an increase in home sales.

The Wilmington NC real estate market has also enjoyed an increase in pending sales contract and still is in a a strong postion to continue this trend.

To search all Wilmington NC real estate and find out about the $8,000 tax credit please read more about the Wilmington NC real estate market here.

Best Ways To Finance

Fortunately, in today’s world, buyers still have many mortgage options. Contrary to media report, there is still plenty of liquidity in mortgage money. Yes, mortgages require more documentation than in 2007, but for those that can verify a job and income, money is still available. Always check with your mortgage lender to look at all options available and the different closing cost structures.

Adjustable-Rate Mortgage.

The interest rate is adjusted up or down periodically based on a financial market index (such as Treasury bills or Libor). Monthly payments start lower than for fixed-rate mortgages. The initial rate is set for a specified period — 1, 3, 5, 7, or 10 years — and then rates adjust on a schedule, say, annually. The adjustments generally are limited by annual caps and a life-of-the-loan cap.

Down Payment: $10,000

Mortgage Amount: $90,000

Term of Loan: 30 years

Interest Rate: 5.75 (until first rate adjustment)

Monthly Payment: $525 (until first rate adjustment)

Fixed-Rate 30-Year Conventional Mortgage.

A fixed-rate conventional loan is made by a mortgage company or bank for 30 years. Monthly payments (excluding taxes) remain unchanged for the life of the loan. Most lenders allow mortgages with as little as 3% down, but most require private mortgage insurance for loans with less than 20% down.

Down Payment: $10,000

Mortgage Amount: $90,000

Term of Loan: 30 years

Interest Rate: 6.5

Monthly Payment: $568

Fixed-Rate 15-Year Conventional Mortgage.

This is similar to the 30-year conventional mortgage, except the loan is repaid in half the time. Interest rates are typically lower than for a 30-year loan, and interest paid over the life of the loan is less, but the monthly payments are usually slightly higher. Government-backed loans — VA and FHA — are also available in 15-year terms.

Down Payment: $10,000

Mortgage Amount: $90,000

Term of Loan: 15 years

Interest Rate: 6

Monthly Payment: $759

USDA Loan.

Available in rural areas (Brunswick and Pender Counties in our area). This loan is subject to qualifying income being below the median income for our area and based on size of household. This loan allows for 100% financing with no private mortgage insurance.

Federal Housing Authority (FHA) Loan.

These are government-insured loans so homeowners can make a smaller down payment than on conventional loans. The limits on FHA loans are high enough to handle moderately priced homes in many parts of the country. FHA loans are assumable for future buyers who qualify. In our market area, you can obtain an FHA loan up to $303,750, after the 3% (or more) down payment. FHA loans are very credit lenient and very popular in the housing market right now due to their rates and reduced mortgage insurance vs conventional loans.

Down Payment: $3000

Mortgage Amount: $97000

Term of Loan: 30 years

Interest Rate: 6.5

Monthly Payment: $613

VA Loan.

These are loans for qualified veterans backed by the Department of Veterans Affairs with low or no down payment required. These mortgages are subject to the VA mortgage funding fee, depending on the size of the down payment. VA loans are assumable to qualified buyers and also very lenient in regards to credit like the FHA loans.

Down Payment: None

Mortgage Amount: $100,000

Term of Loan: 30 years

Interest Rate: 6.5

Monthly Payment: $632

Seller Financing.

Sellers may take back a loan against their equity in the property in the form of a first or second mortgage. One approach to owner financing is to use a balloon mortgage calculated and repaid for 5 or 7 years as a 30-year mortgage, but then the balance of the loan is due in a lump sum.

Down Payment: $15,000

Mortgage Amount: $85,000

Term of Loan: 5 years

Interest Rate: Negotiable

Monthly Payment: Depends on rate

Assumable Mortgage.

A buyer takes over the existing mortgage — usually FHA or VA at its current interest rate, with the concurrence of the lender. An assumption may have a lower rate than those currently available, and taking over the mortgage may save on closing costs. The down payment makes up the difference between the sales price and the balance on the loan.

Down Payment: $30,000

Mortgage Amount: $70,000

Term of Loan: Time remaining on loan

Interest Rate: Same as seller had

Monthly Payment: Same as seller was paying

Combo Loans

Normally when a buyer puts less than 20% down, they must have private mortgage insurance. Often times the buyer can avoid this by doing an 80% first mortgage loan and follow it up with a 2nd mortgage for the difference up to 95% of the purchase price.

Buy-Down Mortgage Plan.

The seller or a third party provides additional cash to the lender in exchange for a lower interest rate for the buyer. Approaches vary among permanent buy-downs, multi-year and graduated plans.

Down Payment: $10,000

Mortgage Amount: $90,000

Term of Loan: 30 years

Interest Rate: 4.50% (initial)

Monthly Payment: $456 (until subsidy diminishes or expires)

Chris Hutchens, Alpha Mortgage contributed to this post.