If you’re on the fence about whether or not you should go ahead and purchase your new dream home in spite of the current economic conditions, here are 3 reasons why it might just be the perfect time to buy a home:

1. You want to move up to a more expensive home. We’re most definitely in a buyer’s market right now here in the Rock Hill SC and Fort Mill SC area, so if you’ve had your eye on a more expensive home, now is definitely the time to act.  I wouldn’t expect home prices to come up any time soon, but I also wouldn’t expect them to drop much more than where they’re at.  That being said, you might not be able to get that dream home of yours at such a steal-of-a-price ever again!
2. It’s a buyer’s market, plain and simple. If you’re not currently tied to a property or don’t have to worry about unloading your current home, then you’re definitely in the driver’s seat.  Many home sellers are concerned about even getting a ‘fair’ offer for their homes, which plays to your advantage.  This kind of market allows you to dictate more of the terms of the sale and in many cases, the seller is much more willing to listen.
3. Interest rates are still relatively low. There’s been a lot made about how tough the loan market is these days, but in reality, if you have decent credit, can put down a solid down payment, and are serious about buying a home there’s absolutely NO REASON why you shouldn’t expect to get a good loan.  In fact, rates are still extremely low when compared to historical averages and when you can lock in a good rate, you’ll be able to enjoy it for the life of the loan, no matter what rates do.

So, if you’ve considered making the leap and purchasing a new house in the Rock Hill SC or Fort Mill SC area, now is definitely a great time to act.  We’ve been fortunate in that the real estate market has stayed relatively strong when compared to other areas of the country and with the advantages you hold as a home buyer, the time couldn’t be any better to take action and buy your dream home!

• The tax credit is for first-time home buyers only or anyone who has not owned a home in the last 3 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 $8,000.
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

My friend Geoff at New American Mortgage tells me that rates continue to be historically low and they are always more than happy to answer any additional questions you might have about buying your new house in the Rock Hill SC or Fort Mill SC area.

Straight from Geoff, here is a snapshot of the mortgage rates* from last Friday on the purchase of a new house:

Conventional -

30 Year Fix Rate is 4.500%, APR 4.790% (2 pts)
30 Year Fix Rate is 4.875%, APR 4.959% (1pt)
30 Year Fix Rate is 5.500%, APR 5.629% (0pts)

FHA/VA – Government -

30 Year Fix Rate is 4.625%APR 5.000% (1.5pt)
30 Year Fix Rate is 5.000%, APR 5.375% (1pt)
30 Year Fix Rate is 5.500%, APR 5.775% (0pts)

* Borrower must qualify and restrictions apply

To be completely honest, I’m not sure what to make about Washington climbing into bed with business, especially at this magnitude.  Especially if it’s my tax dollars we’re talking about here.

Of course, according to the Secretary of the Treasury and the head of the Federal Reserve are both saying this bail out is necessary to keep things afloat, I wonder how smart it is to be making such huge promises to the folks that got us in this mess to begin with.

So, what’s your take on the issue?  How do you feel about the government taking $700B it doesn’t have and giving it to Wall Street in order to fix this financial mess?

Go ahead and leave your thoughts below in the comment section.  I’d love to hear what you have to say about it!

Well, I’m certainly no expert when it comes to the financial markets, but just based on what I’ve read and heard, I’d venture a guess that this isn’t rock bottom just yet.  According to an article I read on MSNBC.com,the answer to how many more banks are going to fall flat on their face because of questionable management practices is dependent on 2 questions.

“First: When will home prices stop falling? The value of trillions of dollars of assets held by big investors — both here and around the world — is pegged to the underlying value of the real estate on which those assets are based. Every quarter that home prices fall, those assets have to be marked down further.

Second: When will the foreclosure rate stop rising and stabilize? As of the end of June, some 9 percent of all Americans holding a mortgage were either late on their monthly payments or in foreclosure. Those foreclosures add to the backlog of bank-owned properties that go onto the market, putting further downward pressure on home prices.”

It certainly makes for a precarious situation, but that doesn’t mean it’s time to pack up and move to a cave in the middle of nowhere!

Fortunately for us here in the Rock Hill SC or Fort Mill SC market, the housing market is still strong.  Yes, there are some bargain properties out there, but that doesn’t mean EVERYTHING’S going for rock-bottom prices.

If you’re looking to sell your Rock Hill SC or Fort Mill SC home, you can still get a good price for it.  You just need to be certain you price your home to sell and not simply to negotiate.  Many people make the mistake of thinking if they list their house higher thinking they’ll be able to negotiate it down.  Unfortunately, it rarely happens this way as people see just the ‘too-high’ price and don’t even make an offer.

If you want to sell your home quickly AND for top dollar is this unsteady market, it’s critical that you price your house to move.  If you’re not sure what that price is, I’d be more than happy to provide a Comparative Market Analysis to help you decide if now’s the right time to sell your Rock Hill SC area house or not!

And stay tuned to this blog because this week I’ll be sharing more tips for buying OR selling your dream Rock Hill SC, Fort Mill SC, Tega Cay SC, York SC, or Lancaster SC home in this turbulent financial marketplace.

What’s my minimum required down payment?

This one’s kind of important since it will tell you exactly how much money you’ll need to put down in order to get into your dream home.  Different lenders have different requirements, as do different lending programs, so the only way to find out is to ask.

Will there be prepayment penalties?

This is another big one since many people plan on paying off their mortgage early.  It’s much better to find out right now if you’re going to have to worry about paying prepayment penalties for getting it paid off early, than to breathe that big sigh of relief as you write what you think is the last check, only to find out you’re going to get hit with massive penalties.

How long will it take to close the loan?

The average closing is typically between 30-45 days from the time the final offer is accepted, but it is possible to close much faster.  It really comes down to all pertinent parties involved, the buyer, the seller, and the lender.  If you need to close in 10 days, even though it’ll be a mad dash to the finish, it’s certainly a possibility so be sure to ask your lender how quickly you can take care of things.

Is there anything that might delay my loan?

This is a question that will help you avoid a lot of stress, head aches, and heart ache during the loan origination process.  Asking your lender what they need upfront, and then following up to find out if there’s anything that might delay the load is simply a good idea so you can avoid any unnecessary delays in getting to the closing table.

What documentation will you need?

This is another one that will simply save you time, headeaches, and hassles as the lender works through their process.  Also, it’s extremely important (and relevant) for you to stay in touch with your realtor during this time in case something comes up that they need you to provide.  Although you should have a good indictation as to what documents might be missing.

Overall, the process of buying or selling a home can be quite stressful.  But being an informed consumer can really help you feel more confident about the process AND make sue you’re banking a good future.

Now, while I’m no mortgage expert and I strongly encourage you to consult with your own financial professional, if you’re considering buying a new home in the Rock Hill SC or Fort Mill SC area anytime soon, here are 5 questions that will make the process go much smoother and also give you the peace of mind knowing you’re making a good decision for you:

1.  What types of mortgages do you offer?

There are 2 types of mortgages that are most common, the fixed-rate and the adjustable rate (ARM).  Just as its name states, the fixed-rate mortgage stays constant over the life of the loan, which means if you stay in your home for the next 30 years you’ll pay the same rate 30 years from now.  When compared to rates historically, in spite of all the ups and downs, rates are still very low so locking in at today’s rates is still a very smart move financially.

ARM’s on the other hand are what’s caused much of the mortgage mess we find ourselves in today.  An ARM is basically a mortgage that starts out at one rate, but depending on what’s happening with interest rates, it adjusts either up or down.  While an ARM could be a good solution if rates are low, when interest rates start going up (like what’s happened over the last 18 months or so) you could get squeezed by higher monthly payments.

So, when deciding the type of financing you want, be sure to consider current interest rates and the length of time you plan to live in the home.

2.  What’s the interest rate and APR?

The interest rate basically tells you what your monthly payment will and how much it’ll cost you to borrow the money over the life of the mortgage.  Again, the interest rate on a fixed-rate loan will never change while an ARM could adjust up or down each year depending on what the current market is doing.

The APR (annual percentage rate) takes into account fees charged by your lender, which makes this one a bit more difficult to calculate.  Especially if you go with the ARM.  The key to understanding this is to know how frequently it can adjust and by what percentages.
3.  Are there discount points or origination fees?

Occasionally you’ll come across a lender that will let you pay discount points, which is a fee you pay to reduce the interest rate.  If you plan to stay in the home for a lengthy period, it is definitely an option worth considering because when you lower the overall interest rate, you lower the amount of interest you have to pay over the life of the loan.

Origination fees are fees charged by your lender to process your application and secure the loan.  In some cases, this is the way your lender makes his money, but there are some ‘no fee’ mortgage lenders available, so be sure to check around.  Fortunately for you, any origination fees you pay won’t affect the interest rate you end up paying.

4.  What will my closing costs be?

These are the fees you pay at the closing table and could include things like appraisals, credit reports, or any other items you’ve agreed with the buyer/seller to pay.  Be sure to ask your lender for a ‘good faith estimate’, which they’re required to do by law within 1-3 days of receiving your application.

Remember, these are fees you’ll have to pay at the closing table so be sure to come prepared with a certified check for the amount your lender tells you.

5.  Can I take advantage of rate locks?

Because interest rates rise and fall on a daily basis, you want to be sure to lock in the lowest interest rate as soon as possible, especially if it appears they may be going up soon.  Be sure to ask your lender if they charge you a fee to lock in rates, how long the lock is good for, and if you can get it in writing.  Also, some lender allow you to ‘lock and shop’ which means you can lock in a rate, but still have the opportunity to shop around for a lower rate.  Be sure to ask your lender if that’s a possibility as well.

Again, finding funding for your Rock Hill real estate or home can be a pretty intimidating task, so knowing what to ask will certainly help you be a more informed consumer.  Tomorrow I’ll share a few more questions you can ask so when you do speak with a lender you’ll be fully educated and ready to make a wise decision!

* * * * * * * * * * * * *

Do you know someone looking to buy or sell a home in the Rock Hill SC, Fort Mill SC, Tega Cay, York SC, or Lancaster SC areas?  Why not tell them about my ’90 days or less’ guarantee for selling a home and my ‘Right House, Right Price, Everytime’ guarantee for buying a home?

I have the knowledge of the area and the experience necessary to help you avoid all the stress and hassles that come along with buying or selling a home in the Rock Hill SC area.  Send me an email or give me a call today and let’s begin the process!

While it can be a bit confusing to disect what exactly this new bill includes, I found a great resource on CNBC.com that breaks down the benefits.  Here are some of those benefits:

• All homeowners who do not itemize their income taxes can deduct between $500 and $1,000 from their 2008 federal taxes.
• Anyone buying a first home between April 9, 2008, and July 1, 2009, will receive up to $7,500 in federal income tax credits.
• Homeowners struggling to make payments on high-interest mortgages can contact their banks and transform their loans into government-backed, 30-year fixed-rate mortgages.  To qualify for this break their mortgage debt-to-income ratio must be greater than 31 percent.
• First-time buyers or homeowners with subprime mortgages in some states can qualify for low-interest loans or refinancing under a provision allowing states to offer an additional $11 billion in tax-free municipal bonds to pay for such housing projects.
• Homeowners strapped for cash will be able to receive preforeclosure financial counseling and legal services.

Now, not everyone qualifies for these breaks it is a good to see some steps being taken to help the millions that have been affected most by the shady lending tactics that are one of the causes of the current housing and financial slumps.

Stay tuned because in the next few days I’ll share some tips for making sure you’re not getting in over your head when it comes times to getting a mortgage for your new Rock Hill, SC or Fort Mill, SC home.

According to the FBI, 144 mortgage fraud cases have caused over $1B worth of damage, which is what has led to so many recent arrests.

“Mortgage fraud and related securities fraud pose a significant threat to our economy, to the stability of our nation’s housing market and to the peace of mind of millions of American homeowners,” said Deputy Attorney General Mark R. Filip. “Operation Malicious Mortgage and our other mortgage-related enforcement actions demonstrate the Justice Department’s commitment and determination to combat these criminal schemes, hold their perpetrators accountable and help restore stability and confidence in our housing and credit markets.”

“Operation Malicious Mortgage is a concerted, joint law enforcement and prosecutorial effort aimed at disrupting individuals and groups engaged in mortgage fraud,” said FBI Director Robert S. Mueller, III. “This operation is an example of our unified commitment to address this significant crime problem. The FBI will continue to direct investigative and analytic resources towards mortgage fraud and corporate securities fraud that threaten our nation’s economy.”

- Source: The US Department of Justice

At one time, South Carolina was considered one of the worst state’s in terms of number of mortgage fraud cases, but a spokeswoman for the Consumer Affairs Department said Tuesday the conditions improved following the formation of a mortgage fraud task force that includes the U.S. attorney’s office and the FBI.

It’s definitely unfortunate that so many people have suffered as a result of the greed and dishonesty of a few. And even though 400+ arrests seems like a lot, when you take into context of the entire nation, not just the Fort Mill, Rock Hill SC area, you realize that not all mortgage brokers are bad.

It just reiterates the importance of finding trustworthy, reputable professionals to work with. Ask your friends and associate for referrals and be sure to ask lots of questions yourself. And as always, if something seems fishy or ‘too good to be true’, chance are they probably.

If you’re looking for a reputable, trustworthy mortgage professional for your new Fort Mill or Rock Hill home purchase, be sure to Contact Me and I’d be happy to make a few recommendations.

While it can be a scary situation to be in, be very careful about the advice you listen to and some of the ‘solutions’ that are presented to you.

Always do your homework, read the fine print, and consult a reputable expert!

clipped from www.newhavenindependent.org Arthur and Joanne Taylor were days away from losing their Westville home to foreclosure when a man came knocking on the door. He had a plan to save them. Alex Ortner and his real estate company ended up making at least $25,000 off the family in a buy-back scheme now being challenged in New Haven U.S. District Court. After getting slapped with a lawsuit filed in October by attorney Gary Sklaver, Ortner said he won’t be making the same offer to desperate homeowners anymore.