Okay you have decided to begin your search for a new home...But where do I start? Today, I tell a lot of people I meet here are some basic steps to get you started on your home purchase.
First, get your credit report from all three major bureaus. If you are not checking your credit at least every once a year you can request a FREE copy of your report form all the major bureaus. You are going to want to make sure the information that is on all three of them is correct. If not begin the process to get it fixed. With banks tightening lending standards everyday you are best to go in armed knowing what is on your credit report.
Second, once you have your credit report and you are sure it is correct talk to a mortgage professional. Ask a lot of questions about the different programs that are available. I do this everyday and at least and am hearing about programs that I never knew existed before. So ask a lot of questions. Talk to two or three different ones. Not all banks have the same programs. Do not let them pull your credit until you are sure you want to use them and have decided to purchase a home.
Third, budget. Now you know your credit report is right and you have found a mortgage person and program you like; sit down and budget what YOU are comfortable with each and every month for a mortgage payment. Do not let the bank tell you what you can get. That is always the maximum. Tell them if I am comfortable at X payment how much house can I buy? A mistake I hear a lot from first time buyers is that they are approved for a mortgage at X dollars and then when they find out what the monthly payment is, they do not want to spend that much. So, do it in reverse.
Fourth, write down your wish list in a home. Sit down and say if I could get everything I want in a home here it is. (be realistic) and prioritize from must have to would love to have. Then contact a Realtor (if you are in t he Charlotte area please feel free to give me a call). Inform your Realtor what is the maximum price range you want to be and here is my wish list starting with must haves to would love to have.....Have your Realtor look for you. Your Realtor should be able to send you e-mails with homes that fit your needs and criteria to view.
Fifth, start out by selecting three to five homes you would consider owning. Go with your Realtor and take a look inside of them. Look at them ALL...even if you are absolutely in love with the first or second home you look at. Each home will probably have a characteristic different about it. I tell my buyers all the time. okay, but we have two or three more to look at. If you still want this one after that we can write an offer on it.
Sixth, Once you have selected a home you want to put an offer on, contact your mortgsage proefessional. Let them know here is the price range and taxes on the home. Have them give you a COMPLETE payement. Make sure it fits into your budsget then make your offer.
These six steps should help you out as you begin that search for a new home. This will allow you to enter the market armed and prepared. I have always said that my best client is an educated client. Between these steps a good mortgage professional and a Realtor who will take the time to give you information you can be well on your way to home ownership.
Dave diCecco
Realtor/Agent
www.davedicecco.com
Friday, March 12, 2010
Thursday, March 11, 2010
Buying a Home in Charlotte...Should I wait?
Are you on the fence as to whether to buy now in Charlotte or wait it out? Thinking home prices may have not dropped completely? Not sure if he federal government will extend the tax credit again? Confident rates will stay low? Well some predictors are speculative. No one has the magic crystal ball that says the prices are going to go down or are on the rise. We try to make an educated guess and hope we are right on it. Congress was pretty clear that they were not going to extend the tax credit again for home buyers. They feel the program has lost the steam necessary to make it effective any longer. I tend to agree with them on this issue. There basically has been some type of house rebate out there for almost two years now. On the last question of rates. Contrary to what a lot of economists and mortgage professionals thought; rates have stayed relatively stable since the first of the year and have not risen like a lot of people expected. But, other changes are on the horizon.
Now, if that was not tough enough for buyers today. The new guidelines by the FHA are going to kick in next month. Now, the FHA backs loans for people who do not have at least 20% to put down on a home. The new guidelines will raise the mortgage premium people have to pay and increase the necessary down payment for people in certain credit score ranges. In addition it will lower the amount a seller can contribute toward closing costs in half. If, and that seems to be a big if, rates were to remain stable when this kicks in the effect can be devastating to potential buyers. The example I was provided with was on a $200,000 house (you can adjust accordingly based on the price of the home you are looking at). If your credit score falls below a certain guideline your down payment percentage increases from the 3.5% to 10%. That would increase by $13,000 a buyer would need to bring to closing to buy that home. In addition the increase in mortgage insurance would add another $1000.00 cost to their mortgage. Then take into account the seller contribution can now only be 3% versus the 6% before.(now typically I see around 4%) closing costs on most of my deals. Rarely do I see 6%. So let figure that $200,000 buyer needs to come up with the additional 1% money. Take 1% and you get an additional $2000.00 in closing costs you have to bring to the table.
Now waiting out the housing market to see if prices lower might be worth the gamble. What might not be is that the same house you want to buy now could cost you an additional $16,000.00 to close that house when the new FHA guidliens go into effect. Will a $200,000 home drop another 8%? That also is factoring that interest rates remain at the low levels they are at right now.....
So, not sure if now is a good time...Consider that the tax credit probably will expire at the end of April if you are not under contract. The standards to get a mortgage and money you need to bring to the closing will increase and no guarantee the interest rates will remain this low.
Dave diCecco
Realtor/Agent
www.davedicecco.com
Now, if that was not tough enough for buyers today. The new guidelines by the FHA are going to kick in next month. Now, the FHA backs loans for people who do not have at least 20% to put down on a home. The new guidelines will raise the mortgage premium people have to pay and increase the necessary down payment for people in certain credit score ranges. In addition it will lower the amount a seller can contribute toward closing costs in half. If, and that seems to be a big if, rates were to remain stable when this kicks in the effect can be devastating to potential buyers. The example I was provided with was on a $200,000 house (you can adjust accordingly based on the price of the home you are looking at). If your credit score falls below a certain guideline your down payment percentage increases from the 3.5% to 10%. That would increase by $13,000 a buyer would need to bring to closing to buy that home. In addition the increase in mortgage insurance would add another $1000.00 cost to their mortgage. Then take into account the seller contribution can now only be 3% versus the 6% before.(now typically I see around 4%) closing costs on most of my deals. Rarely do I see 6%. So let figure that $200,000 buyer needs to come up with the additional 1% money. Take 1% and you get an additional $2000.00 in closing costs you have to bring to the table.
Now waiting out the housing market to see if prices lower might be worth the gamble. What might not be is that the same house you want to buy now could cost you an additional $16,000.00 to close that house when the new FHA guidliens go into effect. Will a $200,000 home drop another 8%? That also is factoring that interest rates remain at the low levels they are at right now.....
So, not sure if now is a good time...Consider that the tax credit probably will expire at the end of April if you are not under contract. The standards to get a mortgage and money you need to bring to the closing will increase and no guarantee the interest rates will remain this low.
Dave diCecco
Realtor/Agent
www.davedicecco.com
Wednesday, March 10, 2010
Crestdale Crossing Matthews, NC.--offering Schools of Distinction
Crestdale Crossing located in Matthews North Carolina has become a very popular place to live among young families with children. One of the main reasons is the affordability it offers to send their children to the schools. A suburb of Charlotte, Matthews offers some of the best schools in the Charlotte Mecklenburg school district.
MMatthews Elementary School has performed year in and year out as a school of distinction. That grading policy means that at least 80% of the students are at or above the their expected grade level in English and Math for all grade levels. For the past three years the school has increased it's level of performance in both areas. Making it one of the few schools in the Charlotte district that has earned that level and improved on it each year.
Crestdale Middle School has also reached the level of School of Distinction during the past three years. In each of those three years the school has also improved on it's numbers striving to reach a higher goal. Crestdale also offers a wide array of extra curricular activities from sports, to drama, and band. recently recognized by the State of North Carolina as a "school to watch".
Butler High School is also known as a school of distinction. They have been working hard to reach that next level of excellence as well. With at least 82% of the students reaching expected levels of grade achievement in English and math each year and the numbers rising it will not be long before they are also known as a school of excellence. With over 93% fo the students that graduate going on to post education it is one of the highest in the Charlotte area.
With all the schools in the Crestdale Crossing area at least a school of disitnction and progressing each and every year toward the school of ecellence, families are trying to find affordable living in the Matthews area. That is why Crestdale Crossing has become a popular place among young families looking to start out in Matthews North Carolina area.
Dave diCecco
Realtor/Agent
www.davedicecco.com
MMatthews Elementary School has performed year in and year out as a school of distinction. That grading policy means that at least 80% of the students are at or above the their expected grade level in English and Math for all grade levels. For the past three years the school has increased it's level of performance in both areas. Making it one of the few schools in the Charlotte district that has earned that level and improved on it each year.
Crestdale Middle School has also reached the level of School of Distinction during the past three years. In each of those three years the school has also improved on it's numbers striving to reach a higher goal. Crestdale also offers a wide array of extra curricular activities from sports, to drama, and band. recently recognized by the State of North Carolina as a "school to watch".
Butler High School is also known as a school of distinction. They have been working hard to reach that next level of excellence as well. With at least 82% of the students reaching expected levels of grade achievement in English and math each year and the numbers rising it will not be long before they are also known as a school of excellence. With over 93% fo the students that graduate going on to post education it is one of the highest in the Charlotte area.
With all the schools in the Crestdale Crossing area at least a school of disitnction and progressing each and every year toward the school of ecellence, families are trying to find affordable living in the Matthews area. That is why Crestdale Crossing has become a popular place among young families looking to start out in Matthews North Carolina area.
Dave diCecco
Realtor/Agent
www.davedicecco.com
Tuesday, March 9, 2010
Selling My Home...Should I Paint?
In the Charlotte market we have seen an increase in the amount of homes that are for sale due to short sale and foreclosure. Thus, someone trying to sell their home faces a tough challenge ahead of them right now. One question I get on a regular basis when I am talking with a homeowner about selling a home is what can I do to help sell my home?
One inexpensive idea I recommend to homeowners is put a fresh coat of paint on the walls of your home. Nothing brightens a home up more than fresh paint. Make sure you use neutral colors as well. A white or beige color will add freshness to any room.
When prospective buyers are touring you home they are trying to envision the home as they would decorate it. They are envisioning what the home will look like with their furniture, curtains and decor on the walls. the last thing you want is for them to be distracted by the color on the walls.
Not everyone taste is the same....Some like bright cheerful colors and others like more neutral colors. But in order to have your home stand out to buyers today it needs to be like a blank canvas that they can envision their decor on.
One thing you would have an edge on with the competition out there is that the bank foreclosures and the short sale listings are NOT painting their home. They already are not making any money on the home and are not goign to invest the time and money to spruce the place up.
So, if you are thinking of selling your home...consider putting a fresh coat of paint on the walls in a neutral color. it will not only add value; but allow the buyer to envision the home as theirs. And above all else will separate you from the competition.
Dave diCecco
Realtor/Agent
www.davedicecco.com
One inexpensive idea I recommend to homeowners is put a fresh coat of paint on the walls of your home. Nothing brightens a home up more than fresh paint. Make sure you use neutral colors as well. A white or beige color will add freshness to any room.
When prospective buyers are touring you home they are trying to envision the home as they would decorate it. They are envisioning what the home will look like with their furniture, curtains and decor on the walls. the last thing you want is for them to be distracted by the color on the walls.
Not everyone taste is the same....Some like bright cheerful colors and others like more neutral colors. But in order to have your home stand out to buyers today it needs to be like a blank canvas that they can envision their decor on.
One thing you would have an edge on with the competition out there is that the bank foreclosures and the short sale listings are NOT painting their home. They already are not making any money on the home and are not goign to invest the time and money to spruce the place up.
So, if you are thinking of selling your home...consider putting a fresh coat of paint on the walls in a neutral color. it will not only add value; but allow the buyer to envision the home as theirs. And above all else will separate you from the competition.
Dave diCecco
Realtor/Agent
www.davedicecco.com
Monday, March 8, 2010
First Time Home Buying Charlotte----What About the Schools?
I met a family this past weekend who have lived int he Charlotte area for all of about 3 months. They are currently renting an apartment for another 3 months and want to own. A young couple who have two children not yet ready for school. One of their first questions to me was "What are the schools like in Charlotte"?. Ethics preclude Realtors from steering anyone to a particular neighborhood or school.
When you are out lookign at a home or beginning the search for a home and schools are important to you. You need to get some independent information on a school. I send everyone of my clients that are considering a home based on the schools in that area to www.ncreportcards.org. The website is a snapshot report card for schools in North Carolina. Filled with a wealth of information it provides buyers with just about all the information they will need to decide if that is a school they are comfortable sending their children to.
It provides you with demographics of the school and how it rates as compared to the schools in Charlotte. In essence it puts a grade on the schools performance. You can find out the education level of the teachers as a percentage of all teachers. As well as the technology that is available to your children in that particular school. How the students perform in that school versus the district school system. And so much more....
So, if you are considering particular neighborhoods or areas and school assignment is important factor in your decision process visit www.ncreportcards.org.
Dave diCecco
Realtor/Agent
www.davedicecco.com
When you are out lookign at a home or beginning the search for a home and schools are important to you. You need to get some independent information on a school. I send everyone of my clients that are considering a home based on the schools in that area to www.ncreportcards.org. The website is a snapshot report card for schools in North Carolina. Filled with a wealth of information it provides buyers with just about all the information they will need to decide if that is a school they are comfortable sending their children to.
It provides you with demographics of the school and how it rates as compared to the schools in Charlotte. In essence it puts a grade on the schools performance. You can find out the education level of the teachers as a percentage of all teachers. As well as the technology that is available to your children in that particular school. How the students perform in that school versus the district school system. And so much more....
So, if you are considering particular neighborhoods or areas and school assignment is important factor in your decision process visit www.ncreportcards.org.
Dave diCecco
Realtor/Agent
www.davedicecco.com
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