Tag Archives: Charlotte Real Estate

What NOT to Do When Preparing to Apply for a Mortgage

What  NOT to Do When Applying For (or preparing to apply for) a Mortgage

Guest Contributor, Kathy Trotta, Mortgage Banker, Wyndham Capital Mortgage

Kathy Trotta, Branch Manager Mortgage Broker

 

The loan process is not over until the loan closes.  Until then, income, liabilities and assets will continue to be scrutinized to make sure they fit in with any guidelines established for the particular loan.  All borrowers are different, and none of this is written in stone, but in general it is best to avoid these common mistakes:

  • Do not take on new debt. Most lenders will check your credit report just before funding the loan, usually a few days to the day before closing,  to verify that you have not added any new monthly payments to your overall debt picture. Car payments, increased credit card balances, etc. can increase your debt ratio beyond the limits allowed by the lender.
  • Do not spend any of your cash reserves, even to pay down debt, without talking to your loan officer first. A lot of loan programs require the borrowers to have a certain amount of money in reserves when the loan closes.
  • Do not change jobs.  While this can be unavoidable, if at all possible, wait to give your notice until escrow closes.  Lenders always verify employment within a day or so of funding the loan and will almost always cancel the deal if your employment has changed.  Switching from one employer to another with the same job description may not guarantee a problem, but stability is the key here.  Do not switch jobs if the new one is in a completely different field, and do not, under any circumstances, decide to become self employed.  If you do, your income will not be useful for another two years, so stay put if at all possible.
  • Do not co-sign for anything. If your name is attached to that debt, it will be treated as yours and factored into your debt ratio.
  • Do not lease a new car. This should fall under the “no new debt” category, but for some people get confused about this and think leasing is not the same as buying. The bottom line is it’s still an expense that comes out of your income, so it can still push you over the limit with your debt ratio.
  • Avoid credit inquiries if you can. Though not as damaging in the past as far as your credit score is concerned, a lot of recent inquiries will not look good to an underwriter that. In most cases a few inquiries aren’t that big of a deal, but it’s best to avoid any if you can.

  • Avoid making large deposits that cannot be documented. This mainly applies to accounts where money to make the down payment or close the loan will come from. If the source of funds cannot be verified, such as “mattress money”, avoid depositing it into an account that the lender is aware of. If the amount is significant enough, they will usually want to know where it came from, primarily to make sure it’s not another loan with another monthly payment. Most deposits need to be documented, and unverifiable funds can create an enormous problem. This issue should definitely be addressed beforehand.

Call me early in the process, even before you call Chrystal, and I’ll evaluate your needs.  If your time frame is 30 days or 6 months out, I am dedicated to helping you fulfill your dream of becoming a home owner.   Let’s get started now!  Call me at 704.577.5309 today.  It’s still possible to qualify for the tax rebate, and prices and values have never been better.

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Kathy is Mortgage Banker at CertusBank and is experienced, knowledgeable and dedicated to helping you meet your mortgage needs.  She is available now, ready to give you her full attention.

You can pre-qualify or consult Kathy by phone 704.816.7383, or by email: KathyTrotta@CertusBank.com CALL Now to Learn Your Score and for a No Obligation Payment Quote on a sales price.

Builder Wade Jurney expands to Charlotte by taking C.P. Morgan lots

Friday, June 19, 2009

The Charlotte Business Journal’s Laura Youngs reports that Triad builder Wade Jurney is expanding to Charlotte by taking C.P. Morgan lots.

Wade Jurney, president of the Greensboro-based company, says he has 351 lots — all from defunct Indiana builder C.P. Morgan Homes Inc. — under contract throughout 30 Charlotte neighborhoods.

The company also has 52 C.P. Morgan lots under contract in the Triad, including five developments in Rural Hall, Burlington, Greensboro and Winston-Salem.

Jurney says he hopes to close by early July on all of the properties. Three model homes in Charlotte were part of the deal and already have opened as sales centers for Jurney Homes.

Jurney declines to give the price of the lots, since the sale is not complete. But he says he is getting a discount on the $33,000 per lot that C.P. Morgan paid. Jurney is putting together an equity group that would finance the majority of the project. An official with C.P. Morgan confirms the deal is pending.

So far, three sales consultants have been hired to run the Charlotte offices, and Jurney has added a construction superintendent here.

By the fourth quarter, the company plans to have up to 13 employees in Charlotte.

Jurney says the company will offer the same starter-home product it builds in the Triad, which often runs between $100,000 and $200,000.

He says he harbors some concerns about expanding into Charlotte, which has been hit hard by losses in the banking sector and foreclosure issues.

However, he says he wanted to move now to take advantage of discounts, as well as a strong available labor pool. The expansion also will mean Charlotte and the Triad will share fixed overhead costs, such as administrative operations.

Jurney hopes his homes will appeal to the sought-after first-time buyer, who is eligible for an $8,000 tax credit before year end.

“We’re going in looking to be the lowest-priced and best-value builder,” he says.

Jurney is one of several Triad builders looking to take advantage of bargains on land in a slow market. With some builders going out of business and their property left behind, development and construction firms that have survived the downturn are increasingly interested in buying.

‘With complimentary elevations and modern floor plans, Wade Jurney looks like a good fit for current homeowners in existing CP Morgan communities,’ adds Chrystal Safari of Peters & Associates, a boutique firm specializing in luxury homes in the Charlotte Metro area.

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A Charlotte area native, and licensed in NC & SC, Chrystal is very experienced with international relocation, home buying and selling and with rental portfolio development and holds MASTERS Designation specializing in New Construction, Finance, Marketing, Objection Handling, Relocation, and Technology and is a member in good standing with Charlotte Regional Association of REALTORS®, North Carolina Association of REALTORS® and National Association of REALTORS®

The Two Latest Signs Housing Is Recovering

The Wall Street Journal reports that Toll Brothers Inc. and Hovnanian Enterprises Inc., said their losses were shrinking compared to last year because buyers are coming back to the market announces James Hagerty and John Spence. 

Other encouraging news came from HIS Global Insight, a research firm, which said home prices fell on average at an annual rate of 2.2 percent in the first quarter in 199 of 330 metropolitan areas. That compares with a 12.5 percent decline in the fourth quarter of 2008 in 312 metropolitan areas.

“While it’s too early to see a bottom of this housing downturn,” the report said, the latest data “may signal that the market is beginning to stabilize.”

‘I am personally experiencing meeting up with buyers who were looking in 2007, but who did not close on anything, coming back around to begin the search in earnest,’ adds Chrystal Safari of Peters and Associates, Inc.

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Join me for another of the  Luxury Living Events this weekend in Montreux Old World Estates off Youngblood Road in south Charlotte and enjoy a ‘Meet the Builder’ Wine and Cheese.  See ChrystalSafari.com,