Real Estate Information

During the housing boom, obtaining a mortgage with a FICO score in the low 500 range was not unreasonable. In fact, provided you were willing to accept the payment, you could even do so with little money or no "skin" in the game.

In much the same way you cannot get yesterday back, if you have a FICO score that needs, shall we say, improvement, you may be unable to get a mortgage today. Depending on your lender, the amount of your down payment and the mortgage program you are applying for, the minimum standards for qualifying could be the lowest FICO score of either borrower, with a minimum score of 680.

For those applying for a loan guaranteed by the FHA, lower scores could still get you in that home but standards have risen there as well and can vary by lender.

The best path to take before you sign a purchase contract or apply for financing could warrant having your credit profile checked out by your lender in advance. If you need assistance improving your score and credit profile, they may be able to recommend a company or individual that can provide you educational assistance.

For help with your credit score and to determine if you are qualified for a home mortgage loan, contact one of our preferred lenders, Michelle Kaufmann.

Here are the basics:

Qualified 2009 and 2010 first-time home buyers can get up to 10% of the home's purchase price or a maximum of $8,000. In November 2009, legislation extended a tax credit of up to $6,500 (or up 10% of the home's purchase price) to long-time residents of the same primary residence if they purchase a new main home. To qualify, eligible taxpayers must show that they lived in their previous homes for a five-consecutive-year period during the eight-year period ending on the closing date of the new home.

Important details to remember:

1) You don't have to pay it back (as long as you stay in your qualified home for at least 36 months).

2) If you qualify for the credit, you can still apply it to this year's taxes, even if you've already filed your returns, or save it for your 2010 returns.

3) This is a true tax credit, not a deduction. If you qualify for the full credit, there will be an actual dollar-for-dollar reduction of up to $8,000 (or up to $6,500 for qualified repeat buyers) on your tax bill now or in 2010.

4) New income qualification limits have been put in place that expanded the pool of qualified buyers.

5) If you purchased a qualified home or plan to after reading this article, you must have a contract in place by April 30, 2010 (with closing to take place by June 30, 2010), so don't wait!

There are, of course, other details and qualification requirements and restrictions that you'll need to consider. By calling Michelle Kaufmann (one of our preferred lenders) you can get all the details & suggestions. 

Buying a home is not just about pricing and negotiation. A great deal of the process has to do with how well--or how poorly--a buyer is prepared for making the purchase. This preparation does not need to take a great deal of time, and most of it can be done from the comfort of your current home or office, but it is important to spend some time getting ready before running off to look at specific homes.

Know your reasons for buying a home. Don't simply make assumptions here--"everyone needs to own their own home," "it is the best investment possible," "I simply MUST have a new home" may be perfectly acceptable reasons if they fit your personal situation. First of all, it is a good idea to remember that a home is just that--a place where you can live. Yes, there can be some wonderful advantages to home ownership, including pride and accomplishment, potential tax advantages and the build-up of equity. But it is generally a mistake to attach too much importance to the advantages and not enough to what should be the primary reason: A home is a place where you live. By knowing precisely what your reasons are for buying a home, you will be much more likely to keep everything in clear focus.

Spend some time analyzing your budget and finances. Although there is much emotion involved with purchasing a home, the financial aspects should never be underestimated. There are a number of areas that will assist you in getting a grip on your finances, your budget and ways to help in saving money.

Know exactly how much home you can comfortably afford. Listen to no one but the voice of your own budget. Your lender, your Real Estate Agent, and perhaps even your boss may have a vested interest in you paying as much--or more--than you should. There are thousands of home buyers who ignored this type of advice in recent years and find themselves either house poor or on the road to foreclosure. See the sections on prequalifying and preapproval and the chart to determine your qualifying ratios and affordability.

Familiarize yourself with the mortgage process. Learn about the different types of mortgages that are available and the sources for mortgage loans. Be aware of potential pitfalls and mistakes you may encounter during the mortgage process. See the section devoted to the entire mortgage process.

Distinguish between needs and wants. In 21st Century America, the words "want" and "need" are, for too many, interchangeable concepts. They aren't--they have quite different meanings. Not understanding the difference and believing that a "want" is actually a "need" can be both expensive and find you purchasing a totally wrong type of home.In general, a need is something that is required. A want is something that is desired. See more discussion in the article devoted to distinguishing needs and wants.

Get familiarized with home inspections. A whole house inspection not only can prevent problems by discovering defects in a home, it can be a valuable source of information on home maintenance and repairs. For more information, see the sections on house inspections.

For all you real estate questions or needs, we are here to help.  Give us a call at 919.779.3113 and we will assist you with your home buying or selling experience in the Raleigh, Garner, Clayton and Fuquay Varina areas.

When you go hunting for a house, one of the first things that you will notice is that after looking at two or three properties in a given day, the features of the houses seem to blend together. It becomes difficult to remember which house had the beautiful tan carpeting and which house had the wonderful deck overlooking the woods. An easy way to overcome this confusion is to maintain a scorecard which lists the features of each individual house. Not only will it make your search easier, it will help immensely when it comes time to eliminate potential choices.

Every home in which you have an interest should be "scored". When you have 10 or so "scorecards" for homes, you should develop a recap sheet, which will make your comparisions much easier. The recap gives you a chances to rank each house subjectively according to your needs and wants.

We have a great inventory of homes in the Raleigh, Garner & Johnston County areas to choose from.  Give us a call and we will be glad to assist you.

This is a great time to take advantage of home ownership while rates are low, prices are competitive and buyer's incentives are high.

First-time buyers are more flexible to enter the market without concern of selling an existing house, as well as having the benefits of low home prices, plentiful supply and affordable interest rates.

Forbes Magazine has named Raleigh #5 on the country's list of recession-proof cities.  With a median home price increase of 4%, Raleigh continues better off than most of the nation where the real estate bubble has bursted.

Cary ranked #5 in growth among the nation's cities with population over 100,000 according to US Census Bureau findings reported in the July 10th News and Observer while Raleigh ranked a respectable 13th - the only other North Carolina city listed among the fastest growing.

Among the fastest growing North Carolina town's, Wake County's Rolesville ranked #1; Holly Springs, #3; Knightdale, #4; Wake Forest, #5; and Fuquay-Varina, #6.

The Raleigh/Cary real estate market has just been forecast as the #2 strongest market in the country by Veros Real Estate Solutions, a California company that has covered the nation's residential real estate market for five years. The Triangle market is the only one of the top five areas not in the Midwest.

If you're in the market for a new home, please search through our inventory and we will be glad to work you, to make your dreams a reality.

$8,000 First-time Home Buyer Tax Credit at a Glance

• The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
• For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
• For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

• To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
• The tax credit applies only to homes priced at $800,000 or less.
• The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

Give us a call and we will be glad to assist you with questions regarding this credit and help you search for your next property in the Raleigh, Clayton, Fuquay Varina areas.

Before you embark on your search for the perfect house, it is important that you make a realistic "shopping list" in an attempt to narrow your choices of properties. Hunting for a home can be a time consuming process, especially if you have not determined in advance the parameters of your search. Many home buyers make the mistake of misinterpreting a WANT as a NEED. As a result, they often dismiss homes that perfectly fit their needs in search for one that has their wants. This is not to say that you cannot have what you desire in your home--just that you must be able to differentiate between what you truly need and what you would like to have. Your budget must be the determining factor here, not a "wish list." Note, also, that in the examples below, many WANTS can be changed in a particular home (if the house doesn't have that feature now, you can change it later).

Take a few minutes to develop your own list of NEEDS and WANTS. You can print out scorecards and recap sheets here that you can use as you begin to evaluate homes. The goal is to put the emphasis on finding a house that includes all of your needs and as many of your wants as is practical--yet remains in your budget. Once you have a clearer view of what your house will need to have, the next step, actually looking for a home, will be a great deal easier!

Give us a call when you're ready to search for that house that fulfills your needs, at 919-779-3113 or visit us and look over our inventory of homes in the Clayton, Raleigh & surrounding areas.