The home building industry new website, BuilderOnline http://www.builderonline.com, has ranked Raleigh as the 6th healthiest housing market in the United States.

According the article, "Another state capital with multiple universities, Raleigh was still adding jobs at a 2.6 percent rate last year. With a population of more than 1 million, it also has one of the highest rates of population growth of any top metro market in the country over the last five years: nearly 5 percent annually. Though the price of a median home here, $223,400, is above the national average, it is well below other cities in the Mid-Atlantic and Northeast. The metro area has added roughly 65,000 jobs since 2005, and employment held steady last year".

William "Art" Sexton
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www.Raleigh-Real-Estate.biz

Foreclosure

• For homes in North Carolina, visit http://www.hmbireo.com which is a free site to search for HUD homes.  It is the offical listing of HUD homes and is updated every Friday with new listings
• HUD Homes are listing in the Triangle MLS and so you can find them listed in the MLS search on my website http://www.raleigh-real-estate.biz

The Rural Economic Development Fund is what it use to be called, now it’s just a part of the USDA, and the goal is to provide mortgages, and incentives for the purchae of homes in less “densly” populated areas. 

Although 100% financing with conventional mortgages is out and FHA with down payment assistance is no longer available, you can get 100% financing through a USDA loan.  Just about the only 100% options area VA and USDA.

There are certain eligibility requirements that must be met in order to obtain a USDA loan.  Some of the eligibility standards that determine if you qualify for a USDA loan for your home include what county and zip code the home is located in, your current income and credit history, as well as the number of dependents you can claim.

For first-time home buyers, or those unfamiliar with North Carolina real estate, here is a general guideline for the home-buying process.

YOUR BUYER'S AGENT - First, you are entitled to your own real estate agent. On any listing (which is not our personal listing), we can represent you as your Realtor. Typically, the seller pays the commission, so our services are at no cost to you.

LENDER - A Pre-Approval letter is becoming an industry standard when making an offer on a home. Sellers will have more confidence in an offer that includes a pre-approval letter, and in multiple offer situations, the ones with a pre-approval letter are viewed more favorably. Pre-approval will also assist you in determining your price range, cost to close and your estimated payment. We can assist you in obtaining a local experienced Loan Officer.
Be aware that if you "shop" for a loan, it can be harmful to your credit. While inquiring with multiple lenders, we suggest that you use caution as multiple credit inquiries can lower your credit score.

Moving expenses related to a change in employment present excellent tax-savings opportunities. However, three types of tests need to be met to take advantage of moving related expense deductions: a couple of distance tests, a “time to start work” test, and a "weeks worked test". And, of course, in typical government fashion,  a different set of rules can apply to members of the armed services and retirees. For now, lets keep things simple and work on the first tests mentioned.

• FHA mortgage insurance increase.  First FHA mortgage insurance was going to have risked based pricing, then HR 3221 came along and put a moratorium in effect until September 30, 2009.   Until then, for a FHA purchase 30 year fixed mortgage, upfront mortgage insurance has increased to 1.75% and monthly mortgage insurance is 0.55% for loan amounts over 95% LTV and 0.50% for borrowers putting more than 5% down on their home.
• Down payment assistance programs.  Seller funded down payment assistance programs are currently not allowed.  However there is a bill in Congress (HR 6694) that if passed, would allow these once again, but only to borrowers within certain credit scores.   Home Buyers can still obtain a gift or loan from family members as long as it meets Underwriting guidelines.
• Rental income credit when buying a new home and renting the existing residence has changed.  This actually became effective in mid September.   When converting a primary residence to a rental home, the rental income can only be used for qualifying if the borrower is relocating or the new rental meets at least 25% equity (to be determined by an appraisal less than 6 months old or the existing mortgage balance is 75% or less of the original sales price).   Both mortgage payments are factored for qualifying purposes. HUD (and Fannie/Freddie) have cracked down on this due to home buyers purchasing a new (less expensive) home and “walking away” from their larger mortgage payment.

North Carolina General Statute 47E requires you to fill out a property disclosure statement when you sell your property.

Click on the "Property Disclosure Statement" link to review the information needed and download a copy of the form in "PDF" format before you put your home on the market for sale: Property Disclosure Statement

You must provide a disclosure statement to all potential purchasers in connection with the sale (unless the tenant is already occupying or intends to occupy the dwelling), even if you are selling your home on your own. Except in cases of:

• Newly constructed, never occupied homes
• Transfers from one co-owner to another
• Transfers to a spouse or persons in the lineal line
• Transfers between spouses as a result of a divorce
• Transfers pursuant to a court order, foreclosures, bankruptcy, or by trustees or estate administrators
• Lease with option to purchase contract where the lessee occupies or intends to occupy the dwelling
• Transfers between parties when both parties agree in advance not to complete a residential property disclosure statement
  

Your credit score is the single biggest factor in getting a new home loan!
If your score is above 720, you can possibly qualify for a $1 million home with very little money down. If your score is below 500 and you have $1 million in the bank, you may have trouble qualifying for this exact same home. Your interest rate will certainly be different.

Credit scores are central to the loan process. Nearly every lender uses them. The better your credit, the lower the risk to the bank, the lower your interest rate.

Most lenders use your FICO score to determine whether or not you qualify for a home. It's such an important issue that you should understand the basics of the credit reporting system and the many myths surrounding it.

Credit scores give lenders a fast, objective and impartial snapshot of a person's credit risk based on their credit history.  That's why lenders use FICO credit scores when making credit decisions. The higher the individual's score, the lower the risk to lenders when extending new credit to that person. Its fast, easy, and, usually, effective.

Pre-Qualified, Pre-Approved, and Approved  are terms you will likely hear while seeking and securing financing for your new home.  Although these terms are similar in meaning, the commitment level behind the meaning of each is very different.  In essence they indicate the stage a borrower’s loan is to being “Cleared For Closing”.   Unfortunately many realtors don’t know the differences and many loan officers don’t take the time to explain them.   A misunderstanding can lead to disappointment, closing day stress, confusion, and unexpected delays to closing.

Buying your first home can be an exciting, yet often overwhelming, experience. These tips will help you through the process.

1. Clean up your credit.
If you have poor credit, you are a bigger risk in the eyes of lenders. You’ll pay the price in the form of higher interest rates. Higher rates can reduce the amount of home you can afford or keep you out of the housing market altogether. Make a point of paying auto loans, credit card bills, and other payments on time and in full. If you want help developing a plan, you can contact a housing counseling agency, often at little or no cost.

2. Save.
You may need money for your down payment, Closing Costs, moving and other expenses. There are some downpayment assistance programs that may help, if you qalify.  Contact us for additional details.

3. Look for gifts and grants.
In addition to your relatives and friends, your employer or church might offer incentives or assistance for first-time home buyers.

4. Get preapproved for your loan.
A lender can tell you generally what you can afford and how much you can borrow. This will give you an edge with sellers in a competitive market. Contact us and we can provide you with our preferred lenders who can work with you on what you can afford.  With the credit situation in today's market, most sellers are requiring a preapproval letter with any offer so getting this done early can save you time and may allow you to get the home you want before someone else makes another offer.

Here are eight tips about the Raleigh, RTP, and surrounding communities real estate market place.

1. THERE’S NO SUCH THING AS A NATIONAL REAL ESTATE MARKET    
If you read the newspapers, it’s easy to get the idea that real estate markets are the same everywhere. If conditions are bad in Las Vegas, most of Florida, California, and New York, they must be bad everywhere, right? Wrong! All real estate is local. When you’re looking to buy or sell, pay attention first to sales price trends, volume and inventory in your target market or region, rather than to misleading headlines about national sales trends.    
   
2. NORTH CAROLINA HOME VALUES ARE STABLE.
The average sales price of a North Carolina home grew by 4 percent in 2007, an indicator that homes generally are still worth more now than they were just a few years ago. In fact, since 2000, the average home sale price in our state has risen by more than 25 percent. And in 2007, North Carolina had the seventh-highest Appreciation in home prices in the country.

• 35%,- payment history
• 30% - the amount of debt, expressed as the ratio of current revolving debt (credit card balances) to total available revolving credit (credit limits)
• 15% - length of credit history
• 10% - types of credit used (installment, revolving, consumer finance)
• 10% - recent credit inquiries and/or amount of credit obtained recently

hen you get a raise or accumulate some savings, you may find yourself confronted by an innate instinct of modern civilized men and women...the desire to spend money.

It begins simply, by going out to restaurants, then accelerates to purchasing clothing, electronic gadgets, and since North Americans have a special fondness for the automobile, you may even buy a "brand new car."
If you're married or ambitious, a few months later your thoughts eventually turn toward buying your own home, or a move-up home, if you are already a homeowner.

Next, you contact a loan officer to get prequalified for a mortgage loan. You state your desired price and how much you can put down. You provide your income and may even supply pay stubs and W2 forms. The loan officer methodically crunches the numbers (by telephone, in person, or even over the internet).

"If only you didn't have this car payment..."

I was recently asked by a buyer, "I have heard that a realtor fee is built into the cost of the home purchase. Can you tell me what the Realtor actually does for the buyer in this situation?"

Buyer Agent Benefits

Why use a buyer's agent for a new home? Because the builder's agent's job is to get the best possible price and terms for the builder and your buyer's agent's job is to get the best possible price and terms for their client, you! That is the number one reason. And, your agent has usually been through this process many more times than you and knows from experience what the pitfalls are and where to look for them.

How does limited service representation affect a property's time on the market and selling price? Research Limited Service Brokerage Resultssponsored by the Texas Real Estate Center revealed that limited service representation can indeed have significant impacts.

Limited service representation and discount brokerages in single-family residential markets have been widely scrutinized by the real estate industry. The Internet portal Yahoo! moved from the sixth most visited real estate website to second (behind realtor.com) through its series of partnerships with limited service and discount brokerages. Some of these brokerages offer consumers menu-based pricing, with fees for specific services, such as listing the property on a MLS system, rather than an across-the-board fee for full representation. Others advertise sharply lower commissions while still promising to provide consumers with all of the traditional services.