What Is the Difference Between Down Payment and Closing Cost? Part I

Many first time home buyers are starting to realize that it takes more than a GREAT DEAL on a property to achieve the HOME OWNER title. Attending a home buyer education course, becoming mortgage ready and being a "serious" buyer are the 3 elements to successful home ownership.

In Part I, I want to explain the difference between down payment and closing cost. When it comes to purchasing a home, you want to be prepared to pay a down payment. Down Payment = Investment! The mortgage lender is willing to invest 96.5% taking the greater risk and to show that YOU are serious, they require for you to invest the remaining 3.5% of the full loan amount. Have at least 3.5% of the loan amount saved and ready to use towards your future prior to starting your home search. Yes, there are several down payment assistance programs available... IF YOU QUALIFY. However, if you are a ready, willing and able home buyer, a program should not determine your future of becoming a home owner. Budget and save!

There are several people involved in the home buying and financing process that you will never meet. Guess what, they have to get paid for working on your behalf. The time and fees associated with getting your loan approved, preparing your paperwork and getting those keys in your hands are called Closing Cost. You have the underwriter, appraiser, title search, attorney, lender, application fees, taxes, property survey and much more are paid upon the closing date. This amount could range between $3000-$5000. Yes, in most cases you can negotiate that the seller of the home pay the cost for you or at least 50% but there are no guarantees...so be prepared to pay it yourself.

Before you contact a realtor and begin your home search, know what's involved to becoming a home owner. Many future buyers have joined my "No Buyer Left Behind" program where I assist you with budgeting, savings, debt repayment and home buyer education. Contact me today to find out more information!

Agents...Are You Ready For TODAY'S Buyers??

As we all know years ago the market went down hill causing several buyers to become discouraged about buying new homes and home owners to lose their homes. Today buyers are becoming more buyer savvy, taking 3-5 years to research, save money and asking questions. 

With so many real estate-oriented social networking websites such as Zillow, Trulia and Homefinders just to name a few of many; buyers are seriously doing their home work before contacting an agent. Even right now I have several prospects that signed up on my website years ago that are now contacting  me about closing cost and how much should they have saved for a down payment. This is great! I'm thrilled that buyers are making their agents job a little more easier. Buyers are now calling me knowing the area they wish to live in with pre-approval letter in hand....in some cases they already have the MLS numbers of homes that want to view.

With all this being said, there are some down falls to buyers educating themselves without the help of a REALTOR. Potential buyers spend an inordinate amount of time on the internet but what happens when the information on the internet is inaccurate? Or a friend/family that is not a licensed agent gives them inaccurate advice that is not suited for your buyers situatuion? This is why I provide quarterly Home Buyer Workshops FREE with the help of a loan officers, inspector and of course myself. This gives the potential buyers a chance to ask questions in comfortable setting with others just like them. And an opportunity for them to receive accurate information.

Provide education to buyers and sellers before presenting any type of contract. I understand time is money however buyers and sellers work with those they TRUST. Take the time to earn trust in your clients and I promise they will return and without a doubt willing to sign an agreement with ease.  

Yolanda Hayes - Broker/Realtor® 

Wilkinson & Associates Real Estate

8604 Cliff Cameron Drive Suite 110
Charlotte,North Carolina 28269
(c) 704.839.6005  (w) 704.393.0048

soldbyyolanda@gmail.com 

www.SoldByYolanda.com 

www.facebook.com/soldbyyolanda

A Delay Is NOT a Denial...Take Your Time

Hello readers!! Thank you so much for taking the time to read today's blog post.

As a real estate professional I receive several calls from individuals that would like to become a home buyer...LOVE, LOVE, LOVE receiving those calls. What happens after the call is where things become a little tricky. So here we go:

Me: I would love to assist you on buying a home. Have you spoken with a loan officer to review your credit?
Buyer: No, I haven't but I'm not going to lie...my credit is a mess
Me: Well let's have the lender take a look anyway so we can get a good idea of where you stand and prepare a plan of action on building your credit.

LOAN RESULTS COMES BACK

Me: Hey there!! Well as you know the results came back for your credit report and it will take approx. 8-12mths to get you where you need to be. We want to make sure your credit score is higher, that you have saved a down payment and saved for moving expenses. I'll put together a PLAN OF ACTION and follow up with you monthly for a progress report

Now, what the potential buyer heard was: NO! YOU WILL NEVER BE A HOME OWNER! YOU WILL NEVER SAVE ENOUGH MONEY...8-12MTHS IS AN ETERNITY

Did you know that 68% of home buyers start researching and saving 3-5 years before they actually buy?? There is no need to rush this process. Buying a home is one of the most important and largest investmentS you could ever make. Taking time to actually plan out your home buying strategy is the smart way to go. Cut down on unnecessary spending like eating out less, drinking more water vs soda, ride to work with a friend to save on gas just to name a few. My team of professionals and I will be right there cheering you on to the path of home ownership by providing you with a budget plan, home buying classes, savings account and a customized credit boosting plan. A small delay is not a denial...especially when you have the right team of professionals.


Yolanda Hayes
Wilkinson and Associates
www.soldbyyolanda.com
704-839-6005

2012- Charlotte Mecklenburg Home Sales Are Up

Good morning readers!! Just want to take a brief moment to thank all of you that have been following me either by my blog, website and on Facebook. SOLD BY YOLANDA has grown over the years and I am expecting to expand my business to the Winston-Salem and Triad area in 2012.

Today I want to share some information with you regarding the increase of sales in Mecklenburg County this year. During the first quarter of 2012, 285 single family homes sold in the price range of $120,000-$160,000 and now as we approach the end of the 2nd quarter, currently sold homes in this same price range...306. That is a 9% difference between the first and second quarter! I cannot express any more than I have that this market is heating up tremendously. These numbers are only in the price range that I have selected so just think of how many single family, condos and town homes have sold this year.

If you are still renting, you'd have to seriously think about buying this year because you are paying way too much. If people are buying like this in the mist of a recession, I know you have already thought about taking that step to home ownership. Contact me for a free no obligation meeting just to discuss your options and join me on FACEBOOK.

Yolanda Hayes
Real Estate Broker
Wilkinson and Associates
www.soldbyyolanda.com
704-839-6005

Home Affordable Modification Program

Hey there readers!! I am back once again and today I want to share some information that many home owners are not aware of. In today's uncertain economy many have lost their homes to either foreclosure or short sale but did you know if you want to keep your home that over one hundred mortgage companies have agreed to participate in the Home Affordable Modification Program (HAMP).

This foreclosure alternative provides assistance to home owners struggling to pay their mortgage and avoid foreclosure. To be eligible for HAMP, the following criteria must be satisfied such as: 

• the property must be the principal residence of the borrower
• the mortgage originated prior to January 1,2009 
• the mortgage is owned or guaranteed by Fannie Mae or Freddie Mac 
• the borrower is delinquent or default is foreseeable 
• the borrower can prove hardship and 
• the principal amount of mortgage is less than $729,750.00

I recommend that you contact your mortgage lender to inquire about this program before you give up and allow your home to foreclose. For more information on this program, contact HAMP

Please "LIKE" my real estate page on Facebook to stay informed on the latest real estate news, mortgage rates , foreclosures and much more 

Traditional Credit Scoring vs Mortgage Credit Scoring

Good morning to all my readers and visitors!!

Today I want to talk about credit scoring when it comes to applying for a mortgage loan. When buyers contact me they either tell me that they did not know their credit score or they recently retrieved their scores from either Equifax, TransUnion or Experian. The traditional 3 credit bureaus may give you 3 scores of 619, 640, 633 and the middle score of the 3 is used as your base score ex: 633. Now there are several lenders approving mortgage loans at a 620 so having a 633 is great news right?? WRONG!

What many people do not realize is that mortgage lenders use a different scoring system that is a little more precise. The 3 scores you may have found online will not come out the same...most likely all 3 scores will be lower so make sure your traditional scores are closer to 700 before contacting a lender. Continue to view my blog to stay informed on how to boost those traditional scores. Determination goes a long way!!

                                           


If you are looking to buy a home and in need of a realtor, please do not hesitate to schedule a FREE consultation with me www.soldbyyolanda.com 704.839.6005

Communication Is Key

Hello there everyone!! Yes, I have been MIA dealing with life but I'm back blogging this month to kick off the New Year 2012.

Today I want to talk about communication between a real estate and their client. It's very important that a client stay in their position and allow their agent to do their job. Talking to new construction home builders without your agent can lead to trouble even with an innocent conversation. Visiting model homes without your agent is great...it really helps you to know you are looking for and what you don't want. You can take your time viewing floor plans and gathering data about that particular builder however once the topics of loan qualifications, down payments, earnest money etc. comes about...this is when you want to have your Realtor present.

Recently a current client of mine decided to re-visit a few home sites that we previously viewed to together to refresh her memory. In advance we discussed that my presence was not needed and that I had already had committed to another client to hold an Open House on the same day. Now how  "re-visiting" model homes to refresh memory turned into borderline submitting an offer, I have no idea. What I do know is that the builders sales agent was very aware that a the buyer had an agent and someone should have called me. To make a long story short...they were about 3 mistake made by the sales agent giving incorrect information and my client looked at me to correct it. I was not there to be apart of the conversation and I was blamed for not "being there" for her. WOW! This really hurt my feelings because I was her #1 star until things went wrong. I was a phone call a way but she stepped in my shoes and tried to negotiate the transaction herself then shifted the blame on me. Lesson learned....keep your agent in the loop at all times. Buying a home is one of the most important investments you can make in life and not to be rushed.

For more information on the home buying process, please attend my home buyers seminar 1/28/12 on Charlotte, NC. RSVP at soldbyyolanda@gmail.com

Understanding Credit and Building For Home Ownership

(I am not a credit expert. These are just my opinions and proven research)

Today I want to talk about understanding and building your credit. You must understand credit in order to build credit properly. In today's real estate market, I'm faced with potential buyers struggling to become homeowners however continuously blocked by credit issues. Although you cannot build credit overnight, you can establish good credit history within 6 months or what I call "good behavior" period.

Understanding FICO Scores:

There are several aspects to how a FICO score is determined. A score can range between 300-850; the higher the better. The goal is to get your score at 720 or higher however having all 3 credit bureau scores above 620 can get you into a home today. Just this week, I handed a new home owner the keys to her new home with a middle score of 616 so it can be done.

35 percent Payment History: "Having a long history of making payments on time and no missed payments on all credit accounts is one of the most important items lenders look for."

30 percent Amount Owed: "This measures the amount you owe relative to the total amount of credit available. Someone closer to maxing out all their credit limits is deemed to be at a higher risk of making late payments in the future and this can lower their credit score.

15 percent Length of Credit History: "In general, a credit report containing a list of accounts opened for a long time will help your credit score. The score considers your oldest account and the average age of all accounts."

10 percent New Credit: "Opening several new credit accounts in a short period of time can lower your credit score. Also multiple credit report inquiries can represent a greater risk, but this does NOT include any requests made by you, an employer or by a lender who does so when sending you an unsolicited, "pre-approved" credit offer. Also, to compensate for rate shopping, the score counts multiple inquiries in any 14-day period as just one inquiry.

10 percent Types of Credit in Use: "Your mix of credit cards, retail accounts, finance company loans and mortgage loans is considered."

There are 3 main companies that collect credit information; Equifax, Experian and TransUnion. You can purchase all 3 scores and reports at www.myFICO.com for $40.00 and compare. If you find inaccurate accounts, submitting an online dispute request is a very common practice. Accounts less than 2 years old and/or over $500 must be paid and resolved PRIOR to you contacting a mortgage lender. Any late payments in the last 12 months are worth contacting the creditor to see what you can do to have removed.
If you have filed bankruptcy Chapter 7, you must wait 2 years and Chapter 13 wait period is 3 years before you may qualify for a mortgage loan. Repossessions have a 3 year wait period and rental history with an apartment complex must be clean for 12 months. And a Judgement must show paid. Contacting a reputable credit repair company such has Halo Credit Solutions to help resolve bad credit while you build NEW credit is the best route.
Tips to Building Credit: 


1. Apply for a credit card but apply for a credit card that you are likely able to meet all requirements. Before applying, do your homework by making sure the creditor reports to credit bureaus otherwise it defeats the purpose. 
2. Create a spending plan. Use a credit card for purchase however keep the balance under $25 or at least a balance that you know you can pay IN FULL on time. Not just minimum...IN FULL. Getting gas or a few items at the grocery store will do the trick.
3. Opening a SECURED card is a great way to build credit. Orchard Bank and First Premier Bank are my recommendations
4. You need 2-3 major credit cards. Reason: you can not have a dormant credit card. You must be able to rotate your credit every few months. Having a dormant account can harm your score as well.


I really hope this information will help you. I want potential home owners to walk into a lenders office with confidence and secure in knowing they will be approved for a loan. Debt to income ratio is a lending factor as well however the majority a denied loans are due to poor score. If you are in the Charlotte area, please do not hesitate to contact me for a FREE home owner consultation meeting. Contact me directly:


Yolanda Hayes
www.soldbyyolanda.com
soldbyyolanda@gmail.com
704-839-6005

Buyer Tips: Interviewing Real Estate Agents

Before buying a car. Before hiring a babysitter. Before sending your kids to a new school. You research, ask questions and evaluate before making a decision. So why not do the same before hiring a real estate agent? Here are a few questions to ask a buyers agent: 

1. How Long Have You Been In The Business? 

Now there are agents that has been in the business for 20 years and seasoned however that does not necessarily mean that a new agent would not do a good job. Plus, new agents tend to have more time to focus on YOU.  The reason you ask this question is to make sure your agent has developed that skill to educate and inform you throughout the home buying process. 

2. What Strategies Do You Have For My Needs? 

As a buyer, you want to know 

• How this agent will search for your new home
• How many homes you will see 
• How are multiple offers handled
• Will this agent find communities with down payment assistance

3. Ask For Testimonials or Reference From Previous Clients?

It's always a GREAT idea to know what others have to say about this agents work ethics and history. You want to know that both you and this agents personality will not clash. 90% of my clients are buyers and I can honestly say that my personality is not for everyone so I love when I'm interviewed by potential clients.

4. What Are Some Qualities That Separates You From Your Competition? 

• Honesty and trustworthy 
• Friendly 
• Good communicator 
• Excellent Negotiator 
• Assertive
• Good sense of humor

5. How Can You Help Me Find Other Professionals?

There are several people involved in the home buying process other than you and your realtor. You have your mortgage lender to assist you with financing your loan. The inspector that will inspect the property for mold, gas, damage, structure, roof etc. The title company that will evaluate the deed to ensure there are no liens against the property. Closing attorney to direct the closings and many more


I hope this will help all buyers think about asking as many questions as possible when interviewing even if it's a friend of the family or friend. Business is business. For more information on me, please visit my website http://www.solbyyolanda.com/