This is such helpful information from my friends Chris Wolfe and Barb Pilarczyk over at Integrity Mortgage Group (IMG). They are, of course, in the lending business. Their article starts out by telling how "gut wrenching" things can happen during the homebuying process when your buyer clients are not even aware that things could "change" their credit status. Here is their list.
Don't Make Major Purchases (My Note: Your buyers are going to be excited about their new home. Don't let them go out and buy new appliances and a household full of furniture on credit. Tell them to pick it all out and have the store put it on hold.)
Make unsourceable cash deposits (hard to trace, hard to explain) to your bank account. Selling personal property may require a paper trail like a bill of sale and deposit sourcing. (My Note: If a family member is going to help you out with down payment or closing costs, speak with your lender about it before hand. That has to be made known and approved by the lender in most cases.)
Don't co-sign anything for anyone. (My Note: This is not only a good rule of thumb for when you are getting ready to purchase a home. This is an anytime good rule of thumb. That sits on your credit just like it was yours and if the other party defaults, that also sits on your credit just like it was yours.)
Don't spend money that you've saved for your down payment. (My Note: Do you have money saved for a home purchase and/or emergencies? You need to have. Make a practice of "paying yourself first." An easy way to do this is to have the bank draft from your paycheck into a savings account. Make it a habit and you will get to where you don't miss it. )
Change jobs without talking to your loan officer or consultant first. Also, make sure your hours are not reduced potentially effecting your qualifying income. (My Note: If you do, it will at least be a delay because most lenders will want to see a few pay stubs from your new job before they move forward. This could cause you to lose a rate lock or worse.)
Make major credit changes. Don't let that 20% off be the reason the loan is denied! (My Note: Don't even CLOSE a credit card without checking first with your lender. This can also change your credit score, and if you are just at a level of acceptance, that could cause you to no longer qualify.)
Chris Wolfe contact info: 910-690-3764 or email@example.com and Barb Pilarczyk can be reached at 704-989-8175 or firstname.lastname@example.org. This is some sound advice from a reliable lender. Read it and remember it. If you know someone who is getting ready to purchase a home or land, share it with them and also, while you are at it, share my contact information. I would love to help them. I Love Referrals!!! Judy Chapman, Appleseed Realty LLC at 704-219-3160 or email@example.com
I know your first question!! Who is RON? A better question is "What" is RON. RON is one of the newest acronyms you will hear being tossed around concerning notarization. Yes, I know this is a blog post for Real Estate!! But for the Realtors in the room, and for Lenders and Attorneys, you all know that within the closing and within the loan preparation process, there are many instances where a notary is involved. So the business of Realtors and the business of Notaries have become more tightly intertwined. With the passage of Remote Online Notarization or RON, the signature of signers can be notarized electronically without the notary being in the same room as the signers. What does this mean? Also the signers do not have to be sitting in front of the attorney or paralegal. But don't jump the gun. You cannot do this today in NC. The law to provide for RON was passed, but the effective date is July 2023, about 9 months away. This will give time for the Office of Secretary of State to establish all the rules and regulations to be followed and to identify acceptable platforms with which the RONs will be able to work. This will also allow us time to get ready for RON and to educate everyone on it. As President of North Carolina Notary Association, Wednesday I was privileged to appear before the Union County Realtors Association to introduce the concept of RON to our Realtor members. It is an exciting time!! I encourage you to contact me if you would like for me to present also to your Realtor Association, Bar Association meeting, Paralegal Association meeting or other professional group within the State of North Carolina. There are so many factors to explore concerning RON and its implementation. If you are a Notary and want to learn more, please feel free to contact me. Judy Chapman, Broker/Owner Appleseed Realty LLC; Owner of A Notary Store + More LLC; President North Carolina Notary Association; National Notary of the Year 2019; National Notary Ambassador 704-219-3160 or firstname.lastname@example.org
When you are preparing to purchase a new property, the very first thing you need to do is to get pre qualified. Why?? It is simple. 1) You want to know what your credit score is--Why?? Because your credit score can determine if you will be able to get a loan or not, and also how much interest you will have to pay on the loan. If your credit is poor, you are more of a risk and the lender might give you an even higher interest rate. So credit score is important. I know....Your first question.....What does my credit score need to be. I will defer to your lender on that question. They can give you that information and there are many different programs for many different credit scores. 2) Getting pre-qualified lets you know "How Much" home you can buy, or how much you can spend. If I am helping you find homes in the $500K range and you only qualify for $300K loan with no money in the bank, I am sabotaging you and me!! I am basically setting you up to fail, because you won't be able to find the house you want with the funds you have available to you. Make sense?? 3) You need to know if you can "afford" to spend the amount you are pre-qualified for. If you have $1000 a month bill at the nursery, and $1000 spent at the grocery store each month, and $500 car insurance payment (because of those speeding tickets), you might not be able to afford the payment your lender gives you for your loan. They look at credit card bills, loans, etc. You will know what you can and cannot do. Oh! Also make sure the lender tells you "PITI" for your payment. That means Principal, Interest, Taxes, and Insurance. If they only give you "P/I" the escrow (T/I) could add another $200 to your monthly payment. So, back to your original question, How Do I Know Which Lender To Use? Start with the bank you work with now. If you have checking/savings there, you have already established a relationship with them. See what they have to offer. Shop around, but start with them first. (Also make them tell you APR on your loan. Use that to compare to other lenders.) Hope this helps!! Hope you will subscribe to the blogs!!
They say everything is like a pendulum. It swings to the left as far as it can go and back to middle, then to the right as far as it can go and back to the middle. Well the market had been on one of its outgoing swings, but might be coming back a little closer to the center. Not all the way!! Inventory was non-existent, prices were sky-rocketing, multiple offers, and low interest rates. Definitely a sellers market. But "things, they are a-changin'!" Inventory is a little better, prices are moving down the scale to more of a reasonable range, and multiple offers are more rare than they were--probably because interest rates have gone up.
If you are a seller, you might have to start doing some preparation for the sale of your home. Before, you could sell it with some existing issues, depending on the buyer's lender. Now, you've got to spruce it up a bit. You might have to do the price reductions a little larger than you wanted and a little more often in order to attract the buyers you need.
If you are a buyer, I know what you are thinking!! Those Interest Rates!! But what are you going to do? Wait for them to come back down? How will you know when they are going to come back down? We would all need a crystal ball to gaze into.... Might as well go ahead and take the plunge. IF and WHEN the interest rates drop, do a re-fi for the lower rate. It's that simple. Get your pre- qualification updated with your lender and let's go shopping. Take a look at the listings I have to offer. Includes one new construction, one large tract of land, one commercial and several single family home. Buy Today!!